Skip to main content

tv   In the Loop With Betty Liu  Bloomberg  February 12, 2014 8:00am-10:01am EST

8:00 am
wall street -- the most successful -- she is the former cfo of citigroup. no holdsving an barred conversation about women on wall street. not changed this morning. in the middle of our biggest four-day game, --gain in a year, jenna yellen delivered her first public remarks that the economy is strong enough to weather further stimulus. >> more bad weather is making its way to the southeast in the northeast, potentially mr. winter storm -- a potentially historic winter storm. emergencies have already been
8:01 am
declared and the storm a make its way north tonight and washington, d.c. make it four inches and new york city may get three inches. more than 2500 flights have been canceled already today. >> a five-year-old wire fox terrier named sky won best in show at the westminster drug show last night. he was among -- the westminster dog show last night. no prize money but he gets a trophy and the large ribbon and a steak lunch at sardi's in time square. it is fashion week and westminster dog show, beauty week in new york. >> i never liked those kind of dog before but i like him. he looks pretty good. it has been a busy 24 hours in washington, d.c. john boehner threw in the towel and allow the clean debt ceiling increase to pass the house. president obama hosted a star- studded steak dinner in honor of
8:02 am
french president françois holland. peter cook was too busy covering the debt ceiling to get an invite. no invite? >> i did not get my invite. julianna goldman represented us at the dinner. the republicans finally said yes to something? >> it is a big moment. it is a strategic retreat for john banner and the republicans. he looked at the situation and decided it was not worth the fight on the floor, the possibility of another crisis where republicans would get blamed to be told his team that we will put this clean debt ceiling increase out there. 28 republicans actually voted for and we will get the issue off the table in this made year collection. -- in the mid-term election. obama care will be the issue and he says they will improve their
8:03 am
numbers in congress if we get this off the table. it now moves over to the senate where we could get a vote as soon as today. handful of republicans will have to join with democrats but that is the expectation. this could be wrapped up by the end of today. >> there is no doubt about the outcome in the senate. >> does the handful of republicans, ted cruz is demanding another 60 vote threshold. he will likely get that but that means moderate republicans will have to join with democrats. you would not want to be one of those and go back to your home state and explain this boat. some of them will have to do it. at the end of the day, we will get north of 60 but not a lot more. this gets this issue past the midterm election. march of 2015 is the next time we will fight this again. has the templates been set? will democrats assume the way
8:04 am
this works every time? >> unlike michelle obama, you are not rocking carolina herrera but is everybody speaking french in d.c. this morning? did any real business come out of that dinner? a lot of party business last night. you are skeptical of the effect of these state dinners. everyone had a good time including the president of france who celebrated what he said turned into a dance club last night. the place looked great. the food was great. they had american caviar from illinois. they had dry aged ribeye from colorado, some cheese from friends in vermont. the president celebrated his guest, the president of france with a toast. >> we americans have grown to love all things french, the films, the food, the wine,
8:05 am
especially the wine. love ourof all, we french friends because we have stood together for our freedom for more than 200 years. >> there was a little bit of business, at least business people. sk was attending the state dinner last night. we had julianna goldman there, elon musk, who else was there/ mary j. blige was the entertainment last night. there is giuliana, looking good. host -- we had the merck ceo and a number of business leaders. there is a big focus on france on business and then he goes on to silicon valley. he wants to bring that back to france. had married obama
8:06 am
-- mary j. blige perform at the google artie. -- party. >> she performed for about 30 minutes and everyone was dancing. >> i want to see them bust a move. >> thank you very much. french enter view the finance minister at 3 p.m. today. if you don't want to watch it, you can stream it live on your ipad. >> when we come back, our guest is for the hour, sallie krawcheck joins us. ♪
8:07 am
8:08 am
8:09 am
8:10 am
>> you are watching "in the loop congo on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. we will talk about our star guest. she climbed on wall street. this is sallie krawcheck. >sallie krawcheck is the highes- ranking woman wall street history. her meteoric rise from covering the banks as an analyst at sanford bernstein to running one as the cfo of citigroup is the stuff of industry legend. the ascent was not without its views. at the height out of the financial crisis after warring with vikram pandit.
8:11 am
she was then running merrill lynch after its acquisition by bank of america. she ran wealth management for bank of america until brian moynihan illuminated her position in a shakeup. sallie krawcheck battled her way to the top of a male-dominated industry twice. bet on is making a new women. an owns a 85 broads, organization to connect women in the work licensure is mapping out a new strategy for wall street's female rising stars. sallie krawcheck is "in the loop." it, thinkou have about your meteoric rise on wall street and still, we do not see a woman running a bang. we have janet yellen running the running gm and hillary clinton could be the next president. >> we have not gone sideways, we have gone backwards because this is what happens during crises.
8:12 am
what i saw when i was on wall street is it is not getting rid of people who are different from itbecause they have cooties, is more i know the numbers around diversity and it adds to business results in theory but we are in a crisis mode and i need that person who i can trust today. they have an african-american ceo and they will have an indian american and they understand the advantages of diversity unless it comes to gender. then it is off the table? >> yes, the numbers speak for themselves. what i have seen is i have to have this person in the job because it's so important. what we find and the research shows that when we are under you want itperson typically looks like you. on wall bank has women
8:13 am
street committee or a women's initiative and all of them asked sallie krawcheck to the the keynote speaker. are they a bunch of bull? >> i would not go that far. i think there is a genuine understanding of the importance of diversity. when i think things will truly change is when the industry begins to recognize the market opportunity in women. lity fore responsibi 100% change in income over the past a cap and they are graduating from college and graduate school at a greater rate than men and women are starting businesses at a greater rate than men and women are unhappy with the financial services industry. we were talking earlier -- there's a stunning number which husbands die and we live longer than you gentlemen, i'm sorry to say,
8:14 am
there are many reasons for it leave our financial advisors 70% of the time. >> why wouldn't they have changed before their husband died? >> because the two of them have the financial advisor. when i did a ton of research, we found that she will feel like the two of them are talking to each other and she feels she is outside that circle. there is an enormous opportunity in financial services speaking to and solving problems for women. >> let's talk about income parity. me the corcoran said to fact that women have children -- i thought about it and the older women get, the more challenges you face. you can say something has to give. as long as women are making $.70 to a man's one dollar, it will continue to be the woman. what do we do about that? >> by the way, i never got the
8:15 am
memo that said it gets tougher as your kids get older. i thought if i got through the infant and toddler years, here we go. >> forget about spanish homework. >> it gets harder. when you have more women at the top, the gender pau disparity compresses. when you have more women at the top of companies, the gender pay disparity within the company compresses. >> because down from $.30-$.20? >> part of the way to solve it is get more people to the top. getting abouts twice what her predecessor got and she has been working in the industry for a lot longer than he ever was. she is a trained engineer and she does total product schematics so it makes sense. do you see the same kind of
8:16 am
disparity at the top as you see in the ranks/ >> you are using an example and one example is good but it's one example. >> but when you get to the c- suite, do you see the same disparity? >> how do you compare? there are not that many. >> we talk about culture. even if we are ready for women to lead and take charge, are we ready for men to stay home? i read an article about women on wall street who have stay-at- home husbands. i cringed for a moment. when i meet mena cannot tell parties and they tell me they are stay-at-home husbands, i can watch them tense up. are we ready for men to stay home? >> when i tell women apart is that i want to be a stay-at-home husbands, they shy away.
8:17 am
they are not coming in droves. >> are you sure that's the reason? i'm just asking. >> this is the truth -- women, even if they say they don't, of course they expect me to buy dinner. of course on valentine's day i will pay more women that more money than a woman. >> i don't want my husband to buy a gift for me with my money. >> in many ways, we continue to have these gender stereotypes. for women, in some cases for those who are fortunate, we have a number of choices and choice can be to go home or stay at work. our society today is not yet as accepting of those choices for men. if achieving the performance researchhat diversity
8:18 am
indicates exists were easy, it would be easy and we would do it. >> i wonder what the biological studies say -- when i was in the hospital, my mom hung out with me. i needed my mother. children also need their moms. huntingow up with men and gathering and protecting. are we ready as adults to say i will hunt and gather? today ands the day then the acute crises. when my son was in the hospital, you could not only out of that room. -- you could not pull me out of that room. my husband asked if i wanted coffee. the acute is different from the day today. we still struggle to have that balance at home between couples. >> a mother will kill for her young, right to bring in sheryl
8:19 am
sandberg waving the flag for women more than anybody out there. this is what she said -- >> i'm not suggesting women are ambitious. saying unequivocally and unapologetically that the data is clear -- when it comes to ambition to lead them to be the leader of whatever you are doing, men and boys outnumber girls and women. >> do you agree? >> the research says it. >> how do you feel? >> i leaned an awfully far. >> do you feel you are ahead of the female pack? women,u hang out with you are the alpha female. >> i worked my tail off. there was no doubt that i love my job so much. and for so many years that i love working.
8:20 am
in terms of the effort in time, a lot of it was when my babies were sleeping. >> you put in the time. what about women now who get rate career opportunities and go to graduate school and they are 30 four and they go into investment banking and don't see the light of day until they are 43. then they don't have a chance to have kids. are we ignoring that women are the most fertile when they are 19? >> the smart thing i did was have my kids early. i don't know that it was smart at the time. >> you cannot always decide. >> does an investment bank want to really hire a woman -- if they are recruiting and they need a bunch of 32-year-old women and those women might be engaged or want to have kids, do they want to hire that woman knowing in the next two years she wants to have a baby? >> i don't know that is as much of a problem. a lot of the pipeline numbers
8:21 am
have greater balance and we lose the women during the course of their 30 plus and 40's. i made a decision for my family and us. i was an investment banker in my 20 plus. when i was pregnant with my son and have my son, i made a decision that that was not the right choice for our families i became a research analyst. i work harder as a research analyst then investment banker but i owned my time. inever had a client who said reject this research report because you did it on a saturday night after your son was sleeping, not on a thursday afternoon. it never happened. >> did anybody pay you less because you work out of your home? >> not to my knowledge. >> tim armstrong has had some slips lately and the truth comes out when he does that. >> we have focused on things that are long-term human needs. if you think about the huffington post, if you think gy, it's thelo
8:22 am
biggest cultural trend in society and the third one is women and we think women are underserved on the internet. although they are well represented on the internet about babies that cost the company too much money. the mothers that have those babies were angry about it. remarks,e makes public he says the right things about women but when they talk about the bottom line and things that matter, it's about babies and women's issues and problems. >> i did not hear that in his comments. he could just as easily have talked about someone who is elderly and having an issue. i did not take it as far as you did. he might be well served by not saying as much. >> where moore to cover, sallie krawcheck, the woman knows best when comes to leadership and women's initiatives. we will get her thoughts on
8:23 am
janet yellen when we come back. ♪
8:24 am
8:25 am
8:26 am
>> welcome back. >> we are on every media device like most modern companies. we are "on the markets." in the premarket, futures are trading lower. acrossall it not changed the board because the moves are insignificant. movers,s significant the world's largest maker of agricultural equipment, john deere. into higherld come
8:27 am
levels. we are watching dr. pepper who announced third-quarter earnings that beat estimates as revenues came in shy of the analysts mark. it announced that attempts to repurchase $400 million of stock which is four percent of outstanding shares. they only announced that they could not that they definitely would. pursedt yellen gave her public remarks to congress yesterday. if you missed her six hours of testimony, we have selected three soundbites you need to hear. >> i believe that i am a central banker and these are very unusual times in which monetary policy for quite a long time has at been able to do what taylor rule would have prescribed. for several years, that rule would have prescribed that the federal funds rate should be in
8:28 am
negative territory which is impossible. us better understand her remarks, sallie krawcheck is with us. yesterday, youks are a woman that many people thought we would see in d.c. around now. what did you think of her testimony? >> it was lengthy. .t seems to be the new style >> was she doing her woody allen impression? >> no, think about the contents. . >> it was the way she was talking. people were talking about her hair and her jacket. >> i think the new style here is to do as long a testimony or press conference as you can. it almost boils down to nothing to see here, move along. the comments were steady as she goes, there will be continuity
8:29 am
and even this comment. this is along the lines of we have to continue to be creative and think creatively because we are at extremes. alan you did not notice greenspan paused giant nose and ears and did not notice that chris christie is overweight, purer person that i would've thought. i look at men giving presentations and if they look terribly different, then i take that to heart. i was not commenting on her appearance. the way she speaks to me sounds the way woody allen stakes. >> i will give you that but in general, are we putting pressure on women leaders in the way they speak? about people hear talk about hillary clinton and her hair. how many hours per week do women spend on prepping themselves? i spent more time today on my hair than matt. >> it looks like we are
8:30 am
transitioning from the testimony. >> let's be honest, the testimony was never expected to be anything different than ben bernanke's line. she did not change the script at all. >> we wanted to hear taper. what would it take for the fed to consider increasing its asset purchases again instead of just slowing down its reductions? >> a significant deterioration in the outlook of the job market or concerns -- very serious concerns that inflation would not be moving back up over time. the committee has emphasized that purchases are not on a preset course. we will continue to evaluate the evidence. exactly, exactly as you would have expected the man with the beard to say.
8:31 am
>> she does sound like woody allen. way, ben bernanke -- >> ok, kids. it is business as usual, stay the course. with that said, we will do what we are doing until things are different and then we will look at doing something different -- stay the course. that's what we got with janet yellen. if we wanted someone to do something tremendously different, we should have gone with someone tremendously different. she has a career in the fed and work with ben bernanke. this is a continuity issue. >> just like bernanke, she wants to encourage congress to do their part. listen to what she says -- >> of course, monetary policy is not a panacea. i think it's absolutely appropriate for congress to consider other measures you
8:32 am
might take in order to foster the same goals. >> there you go. just like her predecessor -- i wish she would step out and say something unexpected. >> but the market is doing well. shouldn't she want to stay the course? >> she's got other things to keep in mind. >> she did encourage congress to do something. i think we would all agree the chances of that are slim. >> we will cover more when we come back. had six hours of testimony from janet yellen. coming up, what is washington doing to help regulate bitcoin banking? who better to ask that her next just, the original bitcoin source code writer. in the loop,"ing "
8:33 am
with their special guest host sallie krawcheck. ♪
8:34 am
8:35 am
8:36 am
>> welcome back. i am here with matt miller in our guest host, sallie krawcheck. exchange ofst bitcoin halted customer withdrawals siding the inability -- citing the inability to monitor accounts. this, we havecuss been talking about bitcoin, alex waters is with those who helped write the original that coin source code and works on coin validation which is an organization coordinating with washington to try to create a regulatory structure for bitcoin banking to connect people to wallace. --wallets. issue, iw themt. gox thought they had people writing code who did not know what they're doing but i see the same thing at bitstamp.
8:37 am
bug is more of an implementation issue. a lot of the businesses operate with bitcoin have built customized software. sometimes that software does not theh out the whole spec coi protocol. this is something that has existed since 2011, this issue. it is now coming to a head. they have been working on it for a while. they are working on changes that will address it. it is more of a hiccup in a real bug. because these sites have had to go down to fix their service -- >> does it concern you as far as the future of bitcoin? >> i don't think so, we have seen things like this before. it usually gets fixed in a day or two. there are a ton of people that will jump on this and fix it. it is a community thing. it is a cool moment. llie, do you feel people in
8:38 am
the broader markets care about bitcoin or is it for a tiny universe of enthusiasts? shall i say geeks? >> nothing wrong with geeks. people are interested in it but they don't particularly think they understand that yet and are wondering if this is the next big thing. what are you hearing from regulators? >> there is a lot of learning curve with bitcoin. at the new york state hearings and the d.c. here is, since 2012, it has gotten better. there is a better understanding of it and the regulatory issues that go along with operating the money service business and businesses are becoming educated as well as the community. this is not a traditional tech company. this is tech finance and there are greater implications as far as regulation and legality. the communist countries are
8:39 am
outlawing bitcoin because it seems governments that need to control things freak out. >> i think there is a lot of posturing between different nations as far as their political leanings toward bitcoin. there is a lot of public statements that are being said. under the table, they are very pro-bitcoin. as a political bargaining chip, it is still early stages. >> is it fair to say that regulators just try to shy away or be defensive about things they don't understand? you can compare bitcoin to derivatives. do they find fundamental issues? >> i would phrase it differently. not to be kind to regulars -- regulators, but they have mandates they are trying to come through on like investor protection. they try to understand these things. as with everyone, whether they work in the industry or are regulators, you immediately try to put it in a box that exists.
8:40 am
there are a lot of them. there are a lot of regulators. understanding what that process is to get to where they need to be in terms of knowledge and then put in place sensible regulation, i'm sure you are learning a lot and your peers are spending a lot of time on it. thee are trying to walk thin line between appealing to the tech community which tends to be anti-regulation because we are innovators and the regulators who say consumer protection is important. we are trying to navigate those waters and bring everybody to the table for kroll operation. >> welcome to my life. >> you work with a company called coring validate which was vilified in the bitcoin community because people thought you wanted to put names on wallets for everyone. if i go through a bank, i have to give them my social or i cannot open an account. it's attaching a routing
8:41 am
number to your financial transaction. not removing the option of having anonymous cash transactions. i think people got a little stock on that. coin validation is a product we did it we have an incubator in new york and we try to build things c,oinapex. >> people are so smart and awesome and young. it just breaks me. congratulations. >> thank you. >> thank you for coming. >> next, we will get personal with sallie krawcheck -- five burning questions. she is in the hot seat with us on "in the loop." >> tomorrow, our guest host for the hour will be former resident of cnn, john kline, to learn all
8:42 am
you can and more about the world of media. ♪
8:43 am
8:44 am
8:45 am
>> you are watching "in the loop." we are back with sallie krawcheck, the owner of 85 broad. s. >> this is my favorite segment. >> five burning questions. >> i like to soften people up -- what is your guilty pleasure? >> white wine. >> that's it? >> what's wrong with that? >> mine is much worse. >> every night. i gave it to my dog this morning. whether i need it or not. >> number 2 -- advice for overcoming a career setback? >> pick yourself back up. just keep showing up. there really is something about not giving up.
8:46 am
it's hard to beat somebody won't give up. it can hurt. have that glass of white wine, wake up the next day, maybe give yourself one day and pick yourself back up. >> now that you spend in enormous amount of time with women at different points in their career, is there a recurring theme or question or issue you seem to be faced with all the time with women you speak to? >> we know them. lifehow do i live that that i want to live? for many women, they talk about meaning and purpose. they want to find out and what they do day after day. >> are we asking that too much? i'm not sure if my father or husband ever has said if they are living the life they want to live. they just get up and go to work and supporting the family. >> i think it's an individual question. be that it it might am getting up and going and i
8:47 am
will not reflect on it. we have more time i spend very-- little time self reflecting britain what advice would you give your 22-year-old self? what would you have said yourself five years ago? >> you are really about to get married? i did. >> i got married at 25. graduated and you got married, that's what you did. >> that is the age range that matt dates women. >> i was waiting for that. >> here we go -- what is your best wealth management tip? >> it depends on who it is too. for gentlemen, it is please don't trade so much prefer women, it is -- are you taking on another risk in order to get the types of returns you will need because you live 6-8 years longer than guys? toys -- the first
8:48 am
thing you bought with your first real wall street sized paycheck. >> i paid my rent. >> that's not a toy. your first legitimate bonus -- even if you work your buns off, you said holy schneike - >> i put it in the bank. i started on wall street in the 1980s when they laid off people in september who had been hired with me in august. i was 22 years old and my parents did not give me money. i was scared to death that i was going to get fired and have to declare bankruptcy at the age of 22. >> that's a good safe answer. i was looking for something that you buy. >> you want me to make something up? >> you were scared to death you're going to get fired.
8:49 am
do you think your male counterparts had that much self- doubt? >> i did not ask them. >> looking back on it -- >> to be fair, they were firing people and doing layoffs every handful of weeks, it would've been foolhardy not to. >> that's all we have for the five burning questions. >> we will be back with more -- the u.s. is losing to norway in this year's winter olympics. we will explain when we come back. we will have the numbers behind the winter games. you are watching "in the loop." ♪
8:50 am
8:51 am
8:52 am
>> welcome back. white lights out on his chance to bring home a medal for the u.s. in the olympic half pipe. the gold-medal hopeful finished fourth which is not a good start
8:53 am
for the u.s. if we are going to catch norway who currently leads all the nations with 11 total medals. snows there all the time but there is only 60 or 70 people who live in norway total. vs gdplook at themedals . great runninga tally of the medals. you can look at bloomberg.com and we updated constantly. winning but they have a gdp of $274 billion. this is small compared to us but they hardly have any people. gdp per capita in norway is massive because they have all that oil. they don't all work on oil rigs. many of them skate around and try to shoot stuff at the same time. what's your favorite olympic sport? >> i like the downhill skiing.
8:54 am
>> that's a good one. downhill skiing and jumping -- i don't want to see where you push the - >> skiing and shooting is kind of weird. >> take a look at all time -- i would have thought the u.s. would win the metal cap -- -- medal - all-time norway dominates as austria aremany and not beating norway at alpine sports even though the alps are there and the soviet union which used to be ahead of everybody else when it was the true soviet union has just crumbled. maybe communism was good for one thing. >> let's talk about a sport thing -- this is about sports illustrated. i was thinking about olympics all day.
8:55 am
it's extra in her to celebrate women athletes. mattel ande saw sports illustrated on barbie. sports illustrated barbie. her advertising campaign -- this unapologetic. how do you feel when you see this? >> [laughter] >> it's awful, right? >> i don't know what to say. what year are we? sports illustrated is a successful franchise and these models are successful -- is it a good thing our are we spending too much time saying women have to look and be perfect to be successful? >> beyond perfect. i remember like it was decades ago, looking at my barbie and looking at my mother and looking back at my barbie --
8:56 am
i wondered what was wrong with her. the message that came through and i was five or six. it's a terrible message. especially for young ladies. >> women do have to look their best in business, is that fair? >> ok, we wish appearance did not matter for women and men. but there is looking gronk and looking put together and there having a look that no one in this entire world can ever achieve. the airbrushing is ridiculous. >> what should the barbie message the? >> it should be a strong, resourceful -- like with the olympics -- you work hard and you achieve something, not because of good looks. sallie krawcheck, what an honor -- owner of 85 broad.
8:57 am
s. >> a real pleasure.
8:58 am
8:59 am
9:00 am
>> ready minutes to the opening bell -- in the loop with betty liu." the countdown begins right now. >> welcome back. here is what we are working on. equity futures are pretty much flat. we have seen a four-day rally on the s&p futures, the biggest jump in more than one year. the stars came out at the white house last night for the french president. many ceo's were at the state there was increased cooperation between the two countries. twitter is trying to get user growth from slowing down more. it is now testing a redesign of its profile pages. the new design looks a little
9:01 am
like facebook's timeline. in washington, this is a win for president obama and the democrats. house speaker john boehner allow the house to vote and pass a clean debt ceiling bill. peter cook joins us with more. what happened? john boehner decided this was a fight not worth wagering. it was a fight republicans would lose. he felt it was better for the house republicans to kick the can down the road until march of 2015, past the midterm elections, and fight the midterm elections on safer territory like the health care legislation and the state of the u.s. economy. he thought this would be a self- inflicted wound on the republicans if they lost this fight which is likely what would happen. it went on the floor last night and passed with democratic votes and in looted 28 republicans.
9:02 am
-- included 28 republicans. he said this was a missed opportunity. >> this is a lost opportunity for america. we are on a spending trajectory that is unsustainable. the president knows it and every democrat and republican in this town knows it. it has to be dealt with. it is a disappointing moment i can tell you that. >> at the same time, this is a win for john boehner by getting this issue off the table which is a political loser in the past. it shows you how strong he feels his position and the republican conference that he is willing to bring this to the floor knowing he would count on democrats to get it done. the code to the senate where we could see a vote as early as this afternoon. >> is there any doubt about the outcome in the senate? >> there is still a little bit
9:03 am
of drama that needs to play out in the senate. we have to wait for the timetable. it could take several days if they have received j-roll hoops to go through. towe have procedural hoops go through. at least five republicans will have to join the democrats in the senate to cross the 60 vote threshold. you would not want to be a senate republican to vote yes. the sense is that there will be enough republicans to get this over the finish line. people will be watching the senate floor closely today to see who votes aye. >> thank you so much. moving and shaking this hour -- the french president françois hollande who was the guest of honor at the state dinner last night at the white house where he raise a toast to the relationship between the two countries for it is that americans love the french but are sometimes too shy to say so.
9:04 am
he will go to san francisco well here are just where he will host tech ceo's he wants them to expand their business there. the unemployment rate used to be the center of fed policymaking. on capitol hill yesterday, new fed chair janet yellen all but threw it under the bus. michael mckee joins us with more. how inaccurate the jobless rate is. >> janet yellen said we've made a lot of progress in labor market but there is a long way to go which raises the question of how hard you push to get there. this is her dilemma -- the share of americans who have jobs has barely changed over the last few years coming out of the recession. the unemployment rate is dropping sharply. how do you explain what is happening? what is the participation rate?
9:05 am
it is also falling but it has been falling for more than a kid before the recession. a lot of it may be baby boomers who are retiring and leaving the workforce and the other part is people who are discouraged workers. she has to figure out which percentage is which. if it's mostly discouraged workers, you push hard and try to stimulate the economy and get them back to work. it's mostly people dropping out, you could have a big out of inflation. >> how does she decide? >> she broadens the database. that was the centerpiece of her testimony yesterday. she is looking at the layoffs rate. it has come way down, below where it was before the recession started. while that's going confidence, not enough, because the quit rate, the people who feel they can get another job is moving up and near where it was before the recession. there is still a lot to do it appears. there are other indicators -- the participation rate does not
9:06 am
give us a clear answer but the unemployment -- the u-6 --mployment rate and others are people finding jobs more easily? they even look at the jobs hard to get question. feel better about their chances of getting a job? indicatorsthese change, janet yellen did not seem to budge on the tapering program. >> they seem to believe that is not providing the kind of bang for the buck they want in the labor market. they say tapered is still on track but they don't see it as useful anymore. it would take what she called a notable change in the outlook to get them to reverse tapering or even slow it down. unemployment would have to be rising, inflation still falling, and they would have to see signs that spending would be slowing as well as gdp and the economy had changed direction. >> thank you so much.
9:07 am
janet yellen plus first testimony carefully but also don't miss the exclusive interview coming up with james bullard, president of the st. louis fed on "market makers" at 11:00 a.m. today. this is a look at today's top company news -- the hewlett- packard ceo wayne -- meg whitman is being sued by an angry investor. it alleges that mismanagement of activism has destroyed shareholder value at hp. toyota is recalling a majority of the hybrid prius cars. a software glitch could cause the vehicle to slow down or even bring it to a halt. no accidents or injuries have been reported related to this problem. home depot will hire more than 80,000 temporary people to prepare for springtime. that is the same number it hired in the previous two years. they say spring is our christmas.
9:08 am
after this winter, everyone will be excited to get outdoors and plant all those flowers. coming up, you never know what to expect from the softbank billionaire ceo on we will take a look at his approach to dying to mobile -- to buy nt mobile. we will take you inside the business of trapdoors. stay "in the loop." >♪
9:09 am
9:10 am
9:11 am
9:12 am
"in there watching loop," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. softbank is taking an unconventional approach and its digital t-mobile. instead of first negotiating is firstftbank founder running the possibility of this deal but u.s. regulators in case they view it as a threat in the telecom marketplace. this is an unusual strategy mobile look at the potential for a deal. it is quite unusual,right?
9:13 am
he is in public trying to lobby for this deal with regulators? why would he do this? >> he wants to get a sense of how the regulars will react and they have been proactive on this. it was an "new york times article" where they quoted guys fcc wereand teh positive about this. talked to sprint and softbank in general and were providing quotations to the media. wantingsure was sprint this out in the open. they were trying to solicit feedback and maybe talking to regulators early. >> why would both sides want to be public? >> they want to send the message that they should think about this. in the case of doj, they will have to file suit as far as any competition issues. >> how is this playing out with t mobile and the shareholders? course, dt ons about 60%
9:14 am
of t mobile. they tried to buy the company about $6 billion a few years ago. sprint has capex issues that they want to pump back into their investments. that is an ongoing issue. on the t mobile front, the big question is if a merger were to occur, who would run the company? t mobile has done a good job --ently of getting companies of getting customers. it seems to have resonance. >> aren't they sacrificing margin? >> in the near-term and that's what the point of sprint is. dt is on board with this. if you look at the long-term come, what is the real long-term viability of t-mobile and sprint and that is the consensus for
9:15 am
why these companies should merge. will regulators go for that when t mobile has had so much success? >> tommy about the softbank ceo. what do we know about him? he sounds like a crazy dude. >> he said he wants to win and he wants to be number one. he has already told the market he wants to be competitive. it makes it a challenge for it on not sure doj looks at things in the long term. now, t- a company right mobile being very aggressive -- >> they have their own renegade ceo. >> i think he would be the ceo of the combined company. he has had a very big impact on t mobile right away. sprint is still taking a long time to get this network built on long time to have customers come to the network. >> he has been out front and center on this deal. >> sprint continues to lose customers and they will lose more over the next couple of
9:16 am
quarters. this network that they want to build will not happen until the second half of next year as opposed to t mobile is in the market with faster speed and adding more customers and leading to an at&t price cut a couple of weeks ago. they are having an impact in the guys, theythe doj will not save a combined, what will be the impact three years from now. they say t mobile is having an impact now. why does the ceo want to dominate the u.s. market? who is this guy? he hasin a story that done some crazy antics in japanese parliament. he is not settled with just dominating the japanese market. >> he threatened to set himself on fire if he doesn't get what
9:17 am
he wants and he has a three-year plan. >> sounds like sumner redstone. >> he bought into sprint and he was to compete in the u.s. similar to how he has done in japan. that is the softbank argument. they turned an underdog complier into a strong competitor there. that he can replicate success if he was able to combine sprint and t-mobile. if he does not get to do this merger, where does sprint go from there? some analysts say they have a chance if they -- they will not go bankrupt right away. they have funding from softbank and they will compete at is the long-term strategy a losing strategy? the question is still open. >> the u.s. is a robust market. american mobile is getting attacked in mexico for being a monopoly but there are better margins in the u.s. market werebust postpaid customers are generating a lot of revenue.
9:18 am
if you look at other operators in the world, they are trying to move their prepaid customers to postpaid because they generate higher revenues. it is a great wireless market to get customers. >> a new telecoms would be so exciting? to both of you. ves tries toes moon make cbs the destination for sports. a huge swath of the southeast begins today get out, a winter storm is coming again with its sights on some big northeastern cities. when will the storms and? stay "in the loop." ♪
9:19 am
9:20 am
9:21 am
a potentially historic winter
9:22 am
storm is threatening much of the country again. it started in the south this morning covering parts of georgia with ice. it will hit the northeast tonight and could drop heavy snow from virginia to maine. seven governors have already declared a state of emergency. a record last year thanks to a run-up in the stock market with colleges. donated billion was which is a nine percent jump over prior years print stanford led all universities raising more than $931 million in donations. old wire foxear terrier, won best in show at the westminster kennel club dog show. -- 129 her one trunk ribbon. most butd has won the she did not win any prize money but will have a steak lunch at sardi's in times square today.
9:23 am
what a treat. we are just a few minutes away from the opening bell and we have the top 10 trade you don't want to miss right after this break. ♪
9:24 am
9:25 am
9:26 am
>> welcome back, it is 26 miles past the error which means we are "on the markets." olivia sterns has the latest a. >> futures are pointing about it looks like the markets can open higher after we had the biggest four-day rally in more than one year. investors clearly liked what they heard from janet yellen yesterday giving her first testimony as chairman of the fed. she is continuing the policies of ben bernanke but said the recovery is far from complete. the nasdaq erased its losses for the year yesterday. we had news from overseas that export data out of china that rose more than forecast.
9:27 am
we will be back again "on the markets" in 30 minutes. >> these are the only trades you need to know about today. julie hyman joins in. reportingis deere, first-quarter earnings above analyst estimates. the company says it sees an increase in sales in its construction in for a street equipment segment and profit forecast was better than estimated. cross.er nine is there was a meeting with management in asia. crocs near-term trends are improving and they see limited downside. it raised its price target to $20 per share. >> number eight is green mountain coffee roasters which is falling after the company was sued by treehouse foods. it claims it monopolized the market. we should mention that shares of
9:28 am
green mountain have rallied for the last six sessions. >> at number seven is dish network. charlie ergun is pressuring the mexican government to retransmit broadcasts. dish has been carrying channels on by other networks since september and broadcasters says this does not have regulatory permission. trip advisor,is rising in the premarket. earnings are in line with estimates. -8% of revenue came from click based revenue. >> number five is dr pepper. the company's fourth-quarter earnings and full-year forecast came in ahead of wall street estimates. >> number four is southwest airlines, the shares falling in the premarket and the airline
9:29 am
canceled a huge amount of flights out of atlanta this morning as a major storm dumps ice on the region. the storm is headed north now and could result in many more flight installations for all of the airlines. >> i can't believe there will be another storm -- number three is dow chemical. it says the breakup lance suggested by dan loeb would reduce its value. it performed an internal review after dan loeb suggested the company could add billions of earnings by spinning off commodity chemicals. , thember two is fossil watch and accessory maker. they recorded better than projections.es and they believe the company's outlook is conservative. they raised shares. one is the world's largest to see an operator, sands. hackers breached the website.
9:30 am
reveal personal information about some of the employees that the company could not say whether customer credit card information had been breached. this happens more and more. it is time for the call as stocks open this wednesday morning. let's bring in robert reinhardt. is that there is less need to fear the fed tapering but that does not mean she wants you to jump right back into stocks. great to have you back. last year we had you on and you are kind of negative on equities and now you are more neutral. why is that? >> a couple of things that are is the very positive testimony the janet yellen gave yesterday. it assures the forward guidance for the fed. this is a fundamentally driven and that can be subject to changes in sentiment. we have to be mindful that any
9:31 am
forward-looking data could be very choppy. >> you feel we are recovering? better dataave seen flow over the past couple of months from the global economy. we are very positive there is a global recovery going on for 2014 that will be better than what we saw last year. we know there could be some choppiness. >> speaking about janet yellen and her testimony yesterday, i want to play one part of this five hour-long testimony. this is what she said about that policy. >> the committee will meet in march. we will have a broad range of data on the economy to look at including additional employment reports and i think it's important for us to take our time to assess just what the significance of this is.
9:32 am
>> basically, that is reassuring for investors? >> you want to take into consideration that the weak employment report we saw in december and january, in her mind that is not necessarily weather affected and could be a payback from the very strong employment reports and revisions we saw in october and november. she is taking somewhat of a wait and see attitude before she starts to panic at the jobs data which is reassuring. julie hyman is looking at the markets for mortgage-backed securities? >> commercial mortgage-backed securities in particular -- it's interesting the comeback in this market. if you look at one particular product that goldman sachs is marketing, it was about $7.6 billion worth of securities that
9:33 am
plunged during the financial crisis and they have been coming back in decided fashion. we have seen portions of the deal cut tojunk and they fell as low as $.16. they have jumped about five cents not past month, as high as $.69. we have seen a lot of auctions of the actual properties underlying some of these securities and there has been a lot of demand. that is just one of the ways where we are looking at a recovery in the real estate market in one of the manifestations of that. >> is that a good indicator to you, barbara/ >> it is, we look at the residential and commercial mortgage-backed securities market and a broad process. -- in a broad process. we have seen this since the beginning of 2012 and in addition to commercial mortgage- there securities ,rmbs, are a number of jumbo prime borrowers that have finally seen their housing prices appreciate
9:34 am
from when they bought them in 2006 and now they can go to refinance without having to bring cash to the closing. that is supportive for the rmbs market. we think the housing market will continue to improve in 2014. it might be off of the fast- paced we saw last year. >> how far along do you think we are in the housing recovery? >> we are still in early stages. it bottomed out in mid-2009. we are at the early stages. >> olivia, you are looking at a stock picker that says this market will go up? >> i am taking an to from laws laszloini -- laws low birinyi.takes -- he thinks the snp is going to 1900 by the next quarter. thinks it is a buying opportunity. he says there is nothing that is
9:35 am
a bargain or real value but you have situation on a day-to-day basis that will give you opportunities and that's what he's trying to take advantage of. he thinks short-sellers learned their lesson last year and he sees the s&p 500 going to 1900 by the end of the next quarter. >> that's not too long from now. is it possible we could do that? >> that's a short time call to make. we have to take a look at some of the economic data that has been week over the past couple of weeks. some of the turmoil we are seeing in the emerging markets is more country by country. we certainly think there is an opportunity for investors even if you have high cash positions to get it down to neutral so you are participating. >> what about the downturn in emerging markets? is it time to get in? >> not yet, we want to take a look at a couple of things before getting into emerging markets. the first one is they are not beaten down into cheap valuations.
9:36 am
you agents have come down but valuation has-- come down but they are more at parity. >> thank you so much for joining us. barbara reinhardt of credit suisse -- coming up, the man behind the dumpster box greg talks with jimmy kimmel. -- dumb starbucks. ♪
9:37 am
9:38 am
9:39 am
>> one stock we are watching as home depot, up slightly after we mentioned it will add 80,000 workers for spring in time for you to dig into your garden. let's bring in olivia sterns. i don't know when spring will come with all of this snow but it's good to know that home depot is preparing to hire more people. >> this is something they do every year, 80,000 temporary workers. it's about a 25% boost over all.
9:40 am
the reason is spring is their busiest time of year. this is when americans want to spend to fix up their homes if they are adding workers to run cash registers and workers in the garden centers. this year, they are going to have to hire workers who are tech savvy and train the workers to use their new mobile shopping app to help locate radix in stores. -- to locate products in stores. one executive said that christmas is their spring. or spring is their christmas. >> there has been a little volatility in their shares? >> that's true, home depot was largest u.s. home improvement retailer. date, sharesto have been lagging the s&p over the past 12 months. the housing market has actually picked up. the 12 month home depot compared to loew's which is also been
9:41 am
lagging. home depot shares are still pretty close to an all-time high. they have actually been figuring out how to capitalize on rising home prices. that is what is driving home depot. home prices have come down a little bit last quarter but this is the existing single-family home transaction price, $197,000. it is up 10% from last year. home depot would not give us a forecast but they said sales grew about 9.5% in the past year. we will await what they have to say when they put out earnings. >> thank you. at our top 10 stories. starbucks has taken legal action against the comedian for the dumb starbucks stanford he appeared last night on jimmy kimmel. >> why did the store closed down? yesterday, i came and
9:42 am
we did a press conference to talk to the media and say we were expanding and opening a second store in brooklyn. meanwhile -- this is totally real -- the health department came at that exact moment and selling coffeer without a health permit. they don't understand that technically, legally speaking, we are an art gallery on the coffee we are selling is considered the art. [laughter] our galleries don't need health permit. [laughter] by not having the proper health permits and paying those fees, we passed on those savings to the customer. [laughter] >> spoken like a true ceo. twitter is testing a redesign of its profile page that looks like the facebook timeline. it is supposed to boost engagement which includes a wide akram photo across the top of
9:43 am
ae page and is similar -- wide background the photo across the top of the page. amazon is announcing is creating 2500 new full-time jobs at centers in the united states for the giles will, comprehensive benefits packages and wages are more than 30% higher than those of its competitors. oonves and cbs is reporting earnings today. aa march madness comes on the heels of a deal inked with the nfl to acquire the rights for thursday night football. joining us now is jon erlichman. cbs is firing on all cylinders. can they start the mending higher programming costs? >> i think they are in a position to do that. you look at what is happened with the broadcasters who have gone back to the cable companies and told them to pay more money for programming, most of the time, they have a pretty easy time.
9:44 am
the cable companies don't like it but you think back to cbs battling time warner cable last year. pleased fans were not with the idea that they would not necessarily be able to watch games on cbs. on you will have games thursday night for at least half of the season, eight games on cbs. it is like cbs has more ammunition when it comes to reaching these deals or squeezing more out of the pay tv players for its content. this is a platform that was one of the most powerful. it's an interesting deal in that they are lending some of their to the nfl network as part of the deal for some of the games. it will be fun to watch. definitely, very interesting to see how it turns out for cbs. cbs has also been cutting these side deals with the streaming players like netflix and hulu?
9:45 am
>> primarily, cbs is an advertising driven business. out're getting more money of the pay tv players in terms of fees and the other way is to go to amazon or netflix or hulu or the new media platforms in need of content and cut these deals. es has been smart about reaching these kind of deals. he has learned a couple of lessons. you think about the original programming that these platforms are doing like netflix with shows like "house of cards." up a teamare signing to get their hands on a deal, they avoid the idea of a pilot. they will buy a whole season and maybe follow-up but buying a second season. we are starting to see cbs do that. s says he pioneered that in his previous life but in
9:46 am
broadcast tv, you traditionally would have a pilot and see if it works and maybe pick up the show. they are learning they have to stay competitive with the likes of netflix but they're also getting paid by the likes of netflix and amazon. that has been a great revenue stream. >> i know many people are eagerly anticipating the second season of "house of cards." it is changing the way we watch our shows. thank you so much, jon erlichman. catch all the latest in technology and media every weekday at 1:00 and 6:00 p.m. on "lumbered west." we will be back in two minutes. ♪
9:47 am
9:48 am
9:49 am
>> most movie heroes have a secret door. you can get one, too, but you will have to speak with this guy. he has custom-made over 300 trapdoors for bookshelves and fireplaces. navigating the business of hidden passageways is almost as
9:50 am
tricky as spotting them. >> when i started this business, there was absolutely nobody. i googled secret passageway and hidden room. you could not get one. there was nobody anywhere that could build one at least not like what i had seen the movies. i started thinking i could do this. tons of people call me and say i want something just like i saw in " panic room." i did not realize how many movies have a secret passageway in them. it's like half of all movies. are for some sort of security application. either a panic room or a place where they can store valuables. i do occasionally have ethical
9:51 am
concerns. they ask for a secret door that is so good that the cops won't find it ever. every so often, somebody says i want the shakespeare bust from the original batman show to be in my -- to be my trigger device. we have a few of those on hand ready to be converted into switches. when i started this business, i talked to one of my professors. it's note that scalable. you will never become a millionaire or billionaire. i shrugged it off and started to do it anyway. i'm glad i did. he was dead right. these are not mass-produced project for it every product has to be unique and custom and one- of-a-kind. that means it takes a great deal of time and attention to detail.
9:52 am
i consider myself somewhat of an artist. i don't really want this business to be a factory. each project is a labor of love for me and i want every project to be such bad that is a steve humble original. >> you can see many more stories like this on bloomberg.com. that does it for us today on "in the loop." tomorrow, we will be joined by the cinnabon international president to talk about the company's growth plans and what it is thriving in rest stops especially -- in russia especially during the olympics. that is tomorrow right here on "in the loop." ♪
9:53 am
9:54 am
9:55 am
>> bloomberg television is "on the markets." we are 30 minutes into the trading day. stocks are rising after we had the biggest four-day rally in more than one year. comments from janet yellen in testimony before congress is
9:56 am
fueling optimism over the u.s. economy and we got better than expected overnight trade data out of china that help boost sentiment overseas. it's time for the future is retaining that regaining luster after getting slammed last year. the precious metal seems to be finding more friends, getting pushed up to a three-month high. ken hoffman joins me from president for more on gold. what seems to be behind this? >> it's pretty funny, at the end of leicester, everyone was piling on the short of gold. was theple missed reason why people were so bearish on gold was that they were thinking about the taper. the taper was announced almost a year ago when ben bernanke said he was thinking about it. that's when gold peaked and by the end of last year, everybody knew taper was going to happen to there was no sopranos. what is going to happen next in the market that will move go -- gold forward? >> are you surprised that gold
9:57 am
rose after the testimony of janet yellen? many would've thought gold would have stalled. >> right now, she said the same thing ben bernanke was saying. taper willnows happen. everyone pretty much thinks it will be $10 billion every meeting and now they are looking at what's next. look at the u.s. money supply. they grew very little last year but has doubled and paste this year. they are looking at china. , just china importing? china was the largest importer of gold last year. there is a lot of positive impact. all of a sudden, the street is getting bullish on gold. on china, according to the china gold association, chinese consumption of gold jumped 41% last year. i guess chinese buyers are taking advantage of relatively lower prices. how long can that last? it could be old big number.
9:58 am
-- it could be a big number. we note the important number into china is 1000 metric tons of old which is huge. where is that gold going? customers buying gold where they were not allowed to for 30 years. how much of that gold is going to the chinese government and how much is going to traders who are putting on a slop tray to take advantage of interest rate differentials? in april, we should get a big number. people expect in april for the chinese government to put out how much gold is officially in their vault. people are keying on that number to see if the chinese government is behind is buying. >> how about all those other turmoil in the emerging markets? what impact is that having on gold? countries where
9:59 am
there is a currency falling apart, i want to own gold. currency crisis of the reason why you buy gold in the first place. every time there is a crisis, people will run towards gold. >> can hoffman, thank you. we will be back again "on the markets" in 30 minutes. "market makers" is up next. ♪
10:00 am
what live from bloomberg world headquarters in new york, this is market makers at erik schatzker and stephanie ruhle. -- live from bloomberg world headquarters in new york. how badly will the attack hurts main street successes of the digital -- digital currency? toy story. the huge box office bonanza. based on hot wheels monopoly and even a ouija board. that is weird actually. take a look at our own julianna goldman. she was

157 Views

info Stream Only

Uploaded by TV Archive on