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tv   Bloomberg West  Bloomberg  April 16, 2014 1:00pm-2:01pm EDT

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big dipper and his, for example, by geography in which some cities and some states are doing far better than others and also a very dramatic difference by education. much depends upon how much education and vocational training a worker may have. what is the role of the federal reserve in addressing these unemployment? what other government policies might be helpful? what other private actions might be helpful in finally getting unemployment back down to more comfortable levels? >> i think you are absolutely in thehat the recovery labor market has been exceptionally slow. the financial crisis, i think, left us with a lot of headwinds that the economy has been
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struggling to overcome, so, we ave indeed had disappointingly slow recovery, and our consistent expectations for a pickup in growth have been dashed over a number of years. the labor market is behaving in some perplexing ways and showing patterns that are novel. i agree with the points that you mentioned, and i mentioned some .n my own remarks part-time employment that is involuntary is remarkably high in comparison with any past recovery. the link of unemployment spells is higher than we have seen it during the post-war period. participation, as i mentioned, has declined a lot. part, you asked
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what role the federal reserve can play, and it is, as i have emphasized, to continue to use monetary policy and to adjust it in light of economic circumstances as we have over during recovery to foster healing of the labor market or return to so-called full employment, and i think that's the best contribution that we can make. i do think we are seeing very meaningful progress, although, clearly, the goal has not been achieved at this point. you ask me also what role the public and private sector can .lay i think that we all know that there are problems in the labor market that run deeper than economy.weak they are not just cyclical
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problems. we have seen a rise in wages at thed middle and below the income spectrum. rising skill gaps and wages at least going back to the mid-1980's, and economists, of course, debate exactly what the causes are of those unsettling , and theret trends are a lot of ideas that have .een put forward trends in the global economy, institutional changes. on anybody's list of what the private and public sector can do to address this disturbing trends would be ,reater training and education and, clearly, there's a great deal that the public can do and also i see state and local
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governments and private individuals making their own training orout responding to those differentials in ways that i think will be helpful overtime .- over time >> thank you very much for a very clear statement. as you have indicated, the fed has two goals of low unemployment and price stability. because inflation is now very, very low, that policy is focused on reducing slack in the labor market and raising inflation to about 2%. at some point, a stronger economy may bring higher inflation rates. to raisefed be willing the fed funds interest rate above the rate of inflation if the inflation rate begins rising
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above, say, two .5%, even if there is still slack in the labor market? >> let me emphasize that our .ommitment is two-sided we don't want to see inflation persistently below our 2% target, and we also don't want to see inflation run persistently above our 2% target . the fomc about two years ago wanted to make very clear that we have a very strong commitment 2% longer run inflation goal, and we, for the first time, issued a clear statement 2% is our longer run inflation goal, and we remain committed to it. this continues to be the case.
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inflation running at around 1%, at this point thomas as i mentioned, i think the risk is greater that we should be worrying about inflation undershooting our goal and getting inflation back up to two percent. of course, the fomc absolutely will be committed to protecting inflation if it threatens to 2% asersistently above well. completely clear that while monitoring the policy is very accommodated at this the needd i focused on to keep it so or to adjust it to make sure the recovery remains on track, as the recovery proceeds and healing occurs,
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it's obvious that we will need to tighten monetary policy to avoid overshooting our target, and we are very focused on that. this is a judgment call that the federal reserve needs to make in every expansion. we have learned in past episodes and past recoveries that overshooting that goal can be very costly to reverse. that is something we do not want to happen, so, yes, we will remain very focused on removing accommodation when the right time has come, and i feel very confident that we have the tools to do that and also the commitment and will. by making our objective of 2% longer run inflation very clear, we did that in order to be transparent and to give the public a way to hold us
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accountable for achieving that goal. [applause] >> madam chair, the federal reserve has been doing it's difficult work during the global financial crisis and the aftermath really in a global context. as we look at the current and forward situation, the two largest economies in the world -- that of the united states and the euro zone -- seem to have some very significant differences. there are differences, for example, in the pace of economic growth, both cyclical and perhaps the long-term growth prospects in which the united states seems to be in better condition, and there also seem to be big defenses in the sheetson of bank balance . in europe, there has been the
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spillover of the sovereign debt crises and some other factors. how do these differences in growth and the current health of the financial system in the two regions complicate fed policy with regard to two different things -- one, the decision on economicrelated to stimulus, but also policies related to supervision and regulation? >> i completely agree that some of the economic challenges facing europe and the united states are quite different. because we are seeing differences in economic , itations around the globe is likely that the process of removing accommodation will take place at different paces in different parts of the world,
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and this will be a challenging situation over the last year or so, we have been very focused on potential spillovers of policies that thisnges differences in the likely pace pose for emerging market economies in a world where global capital flows respond to small shift in policy and .xpectations about policy we have seen that these shifting imposed somehave difficulties for emerging markets, particularly in managing policies. of europe, obviously, the european situation is one with very high .nemployment
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there has been a return to growth, but it is proceeding at a very modest pace at this point. there are challenges that we do not face in the united dates ofoss the euro area readjusting competitiveness across countries. and shifting current account countries ing the the euro area. i think you're up is being held adjustments in their banking sector and problems in the banking sector that i think we have a much stronger banking sector in the united states. you ask specifically about banks, bank balance sheets, and supervision. and regulation. we have been very focused, both the federal reserve and other regulators in the united states ourglobally working with
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colleagues to strengthen the financial system in the aftermath of the crisis to make banking organizations stronger and two more broadly reduce systemic risks so that we are at less risk of a financial crisis. and i do believe that we are making very meaningful progress .n that task there's much more and higher-quality capital and more liquidity in the u.s. banking system. we have raised capital standards very meaningfully, particularly for the largest and most systemic firms. be further changes we will put into effect to raise capital standards. the large firms and banking organizations generally are well on the track to meeting those
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higher capital standards, and my the bankingf industry at this point is banks look to linde. they want to provide credit, and they are supporting the recovery. in europe, i think the situation is different, but they have made very meaningful progress i think in trying to form a banking union that will be a pillar of strength in the european and .uro area economy they are working very closely with us to enhance capital standards and to move forward with us to maintain a level in terms ofd capital standards and regulations. economy, however, at this point, is somewhat more constrained by the need of banking organizations to build
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capital. quite a bit of progress, i think, towards .orming a banking union those were steps that were very important for us some years ago i think in putting our banking organizations on the road to recovery, and i think they will be equally important .n europe as well >> thank you for the answer you gave to my previous question about inflation. i found the answer very, very reassuring. i want to stick with the subject of inflation and ask how you how the federal reserve will decide that the risk of inflation -- that is,
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the risk of overshooting the numeral two percent goal -- is high enough to warrant a positive real fed runs rate. that is, how will you make sure you are ahead of the curve, not behind the curve? alan krueger of princeton suggested that the short-term unemployment rate -- that is for those out of work for those -- for those out of work for less than six months -- might provide a good indicator. i wonder if you agree with that and if not, what you would look at to try to anticipate inflation going above the 2% goal. >> we will certainly be looking at a wide variety of indicators pertaining to the labor market and, of course, directly to the performance of inflation,
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inflation pressures, and inflation expectations. one measure as i noted in my speech of labor market slack is wage pressures that can translate into price pressures and be an early warning indicator of an uptick in inflation, although the relationship between wage inflation and price inflation has been less close and less reliable in recent years. i reiterated in my remarks that one of the questions on the economy we will be focused on pertains to the labor market and trying to ss just how much slack there is and what the impact of the labor market is on inflationary pressures. as you mentioned alan krueger's
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work, there is a line of that it that suggests is mainly short-term unemployment rather than that has unemployment an impact on inflation, so it is conceivable if that line of thinking is right that even with high but short-term unemployment low, long-term unemployment high, if that line correct, we could see that even with the unemployment rate high by historical standards, inflationary pressures would actually be rising because the long-term unemployed, according to that reasoning, are placing less a downward pressure on inflation. i think it is premature, frankly, to jump to that conclusion that that argument is correct, and i have made some remarks thatother
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i have given about why i think that the long-term unemployed are likely to move back more actively into the labor force and into the job market and exert pressure on wages and prices as the labor market strengthened, but, clearly, we will have to watch unfolding evaluate it with an open mind and very carefully in the months ahead to make the assessment that will be thatsary, and i mentioned there can be surprises, and one of the surprises we could see -- i would not rule out -- it's not what i think is most likely, but i would not rule out the possibility that inflation could rise to levels where we would need to address it before we soht expect at this point, that is something we will be quite attentive to. it is not what i anticipate will
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, but again, the purpose of my remarks today is to emphasize that there can be a .ot of twist and turns we need to be alert to what is happening in the economy and to respond to what we see happening about whatixed idea we believe will come to pass. [applause] >> you have been listening to q&a with federal reserve chairman janet yellen, following her prepared remarks. interest rates, as she said, will remain low for now, based on job growth and based on inflation, but the economic nature remains complicated. for more, i want to bring in michael mckee in new york and peter cook in d.c. the markets were pretty
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inappointed by the fed march. did janet yellen repair the damage? >> we have seen a slight uptick in bond yields and a selloff in the stock market -- not a whole lot, but there may be a little bit of disappointment. there was a lot of confusion about when the fed dropped to 6.5% unemployment threshold, with?id they replace it and they have the whole controversy over the minutes last week. she tried to lay out a framework that said the fed's new policy is mind the gap, says our craig torres, watch inflation, watch unemployment, and how far away from what we think full employment might the, which is a little below 6%, perhaps, and that should give you guidance on when we will act. was that too complicated? did she try too hard to explain it? was it to academic? >> and the question about
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whether or not -- how she would avoid overshooting the goal and -- end up behind the goal behind the curve. what was your biggest take away? >> i think in washington, it to those comments that will get the most attention. as you know, there are a lot of republicans in washington critical of quantitative easing, vertical of the accommodative policy that janet yellen has put forward along with her colleagues and where it about exactly that, that somehow inflation will sneak up and surprise janet yellen in the fed. they asked if she would be ready to respond to that of necessary, and the answer he got was they do not think inflation will be a are, but said that they ready to respond. here in d.c., that will be one of the big takeaways, but more than anything else, this struck me as an education, if you will, laying out the rationale as opposed to outlining any new metrics out there, but really explaining the rationale for
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what they will do going forward, that they are ready for potholes, curveballs, whatever you want to call them. they are ready to respond if needed. >> she said they would be variety of indicators. did she break any new ground with the communication strategy? >> not really. it was sort of at the heart of wall street complaints. most of what she had to say was in defense of how the fed goes about it. it is important, she said, to use forward guidance to try to influence the direction of interest rates, and that is what the fed has been trying to do. the question is -- what is their forward guidance telling us? if they're going to go to this model of minding the gaps, then the forward guidance will be .ind of murky that is one of those takeaways that is counterfactual. you don't know what it would be otherwise, but you don't know what they are going to use, so you kind of have to guess for
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yourself what the fed is doing, you some quantitative analysis, and that will be an interesting debate in the markets and among market participants to exactly what they see the economy doing. i'm already getting messages from various economists who disagree over whether the economy is firming, whether there's a lot of slack in the labor market, and whether inflation will pick up quickly. >> right. you said the job market has been disappointingly low, inflation persistently low. how do you think this speech will play out in washington? >> i think the fact that she is still busy out here clarifying and trying to set the table for the notion that rates will remain low for some time to come, that there has been improvement in the economy -- that's good news. again, as mike knows, there's a big debate, but really, the fact that she has gone to great links to try to articulate where they are going forward in terms of communication -- she has not
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broken a whole lot of new ground. interesting to see as the dust settles whether or not people will have any new take away from this, but i think it is again more for fester yellen explaining where they are going in the future and that they are ready for any eventuality. i think that is the big take away here from this -- these extended comments -- 17 pages, her opening statement. >> the markets are up across the board. is that because of her? did she reassure markets today? >> actually, it did a little damage to the markets. they were up and then went down when she started speaking. they are since recovering a little bit. we will see where they end up on the day. she tried to reassure markets that nothing has changed in terms of policy. it's the model, how you figure out what policy is going to be that may be different going forward, but the head still believes the economy needs accommodation because in her view, there are still a lot of slack in the labor market. too many people cannot i'm jobs, and inflation is too low, so they are going to stay with the policy they have.
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they are not ready to raise interest rates. you should not worry yet -- that was her reassurance to the markets. we will see how much a take out of that over the long term. >> from a style perspective, did anything stand out today? plainspoken language of janet yellen, and i believe even marty feldstein and cohen, who was in the room, they both reference that -- this is a woman who tries to speak very, very clearly. perhaps even more clearly than ben bernanke, who did better at that, arguably, then alan greenspan. she wants to make sure that everyone out there including those who do not have economic degrees understand what the fed is doing and why, and i think that is what we will get from her going forward. is she providing enough transparency? again, an open question, but she is certainly trying to explain exactly the rationale behind it, and i think that will be one of
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her trademarks going forward. i don't see her straying from that any time soon. i don't think she is going to get more confusing, if you will, going forward. >> thank you. i want to get a quick look at the markets. a market check with our very own julie hyman. taken away. >> thanks. let's look at what is going on in stocks. we have not seen that much movement after janet yellen spoke. much steady after she came out with her comments. read,ms of the investor not much change. in terms of individual stocks we are watching, bank of america is on the list. . surprising loss numeralquarter loss was five cents a share. we are also looking at sodastream, surging the most since july. the company may be in talks with
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large soda producers. stifel nicolaus issued a note saying it does not see a sale is likely. more on the markets of it later. more "bloomberg west" is next. ♪ . .
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>> you are watching "bloomberg west," where we focus on technology in the future of business. i am emily chang. first it was robots and artificial intelligence companies. now google is buying a drum company. it is the latest in a string of big moves for the search giant this year. today, google reports earnings after the bell. or more than what it expects, we have a former google legg joining us from
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new york. mark, i will start with you, what is going on here? drones now? how do you feel about that ? >> uncertain. and i think investors feel uncertain about it too. google has done a series of acquisitions, most of them relatively small in size. has, this is a company that so far successfully invested five years down the road, whether it was mobile or youtube, acquisitions and organic growth. >> all right, but if it of the doubt. ben, what do you think? from having worked within google, what do they think about these big, big bets. do they think oh, no, what if it does not turn out? >> if you start with larry and controlwho is still in of the company in terms of shares, so opportunities that might generate less than 100
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billion dollars, they cannot find very interesting. they like the world biggest engineering challenges and try to win and later they will worry about how to make money. >> this is a company that facebook tried to buy, titan aerospace. facebook is also bringing on nasa engineers, aerospace experts. mark, is this the new battleground between google and facebook, connecting the remote parts of the world you go >> since you phrase it that way, they both have the same goal, which is to get everybody on the internet, and both of them should benefit from that. google clearly took it, both in a way of utilities. everybody on the internet is likely to use these services, and then they monetize that. google most obviously. that is what gave you anything that gives more and more people easily on the internet is good for these companies. that is the point of view. >> ben, how do you think google thinks about this? are they trying to help each other or are they actually competing? >> i think they pretty much are
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competing but with the same reason. as mark said, these are free services, anyone who gets a broadband instead of soul internet, theyw end up using google and facebook more than anything else, and google and facebook make a lot of money. so to give you a sense and developed companies, facebook makes about $12 per person per year. in developing countries, it is --bably $2 or $ but or $3, but that is a lot of money. >> and google earnings after the bell, what do you expect? >> in line with the street, so 20% year-over-year revenue consecutive or 16th quarter. that is google. i think we are in for about $6.40 in earnings roughly close to consensus. we think those numbers are achievable. people visit the pretty normal,
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usual metric. there is no him in my noises quarter, no motorola noise. the rate of cbc declines do with that mobile pressure is like, if they debate it all, that will be a positive for the stock. >> what will you be watching for, ben? obviously there is some concern about how much google can continue to grow, can they continue to grow at its current rate, and also the shift to mobile. when it comes to advertising, what does this mean? theregree with mark that were not be any shorts mainly because the majority of google's revenue is coming from search, and inserts, it is the biggest game in town. the things i am watching in particular is youtube and display revenue, i think of the next year, billions if not tens of billions of dollars move from tv ads to digital video ads. youtube is clearly the biggest player right now, but almost everyone in this space wants to get a piece of the action. so facebook is moving on video
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ads, amazon is doing the same thing, yahoo! and aol are also moving in, so over the next two courses, i will be watching youtube to say did they become the biggest beneficiary of money moving for digital video, or did they start losing ground to the intense competition that is about to come? >> mark, you cover just about every important tech stocks are us, google, facebook, yahoo!, amazon, netflix -- are you watching the sellout of are you concerned about it, do you think it will be more sustained or is this a blip? >> one of the single biggest names of the migration of tv ad budgets online. we have been saying it for two years that it has not happened yet, but that does not mean it will not happen. i think we will be right on this . google will be a beneficiary. he selloff in the space of been pretty broad base. we got it from yahoo!, we will get it from google. the growth rates are relatively stable or accelerating, stocks
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recover. the highest quality stocks. we had the biggest selloff in the biggest moments of names. i would never put google in that category, no wrapup priceline, for example. those are two swats we like on this pullback. >> ok, ben, what about you? when it comes to advertisers, would are you thinking of a their spending with these companies. roi iseneral, if the good, they will give spending on media because they do not think in terms of a total budget and taking from google and giving to facebook or whatever it might be. i willy the roi is good, keep spending. in general, if there are losers from advertisers reducing or shifting budgets, it is the old media, tv, radio, print, the kinds of areas where the roi was unknown, so when people want to trim, they trim in the places where it is unproven in terms of roi. >> if i slain and google are good in times like this, what are you worried about? which stock do you worry about?
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>> there are some pretty speculative names in there. list, zulily that is on the list, yelp, and those are stocks we've pulled back the most. there has been more supply on the industry given the number of ipo's, so in that type of environment, if there is a risk on, risk often varmint, it goes with names that should pulled in the most and they have pulled in the most. it is a good guy check. we've had a phenomenal year in tech stocks over the last 15 months. textile creation of a healthy thing. >> we will be closely following twitter for sure. mark mahaney of rbc capital markets, ben legg of adknowledge, thank you. we are talking to the man behind "maleficent." why they are making a big bet on
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angelina jolie and its upcoming film next. you can also watch us streaming on your phone, tablet, and at bloomberg.com. ♪
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>> well, well. i shall bestow a gift. >> that was a scene from the upcoming disney film "maleficent starring angelina jolie. it is produced by joe roth. roth has produced a slew of successful disney movies. our senior west coast correspondent jon erlichman nla with more, and jon, doesn't angelina jolie's daughter have a cameo in "maleficent" because she was not the only one who is not scared of the custom? >> that is a good teaser, and maybe we'll find out, emily. joe roth has run major hollywood
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studios like fox and disney. but two he has not one disney movies. he joins us right now. maybe with a few tidbits of behind the scenes. joe, good to see you. let's start with "maleficent." obviously a lot of buzz. out of the finished product compared to what you first envisioned for this? >> the finished project is so far superior from what i imprisoned because robert stromberg is a man who designed both "avatar" and "alice in so it isd," and "oz," a spectacular looking film in 3-d. it is really lush and taking you to places you have never been. >> you're talking to somebody -- about somebody who i believe has film atrected a all, right, this is his first feature, and you have always been a believer in giving people the opportunity to take a shot
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if they are ready. >> yeah, i have backed a lot of first-time directors who i think are ready and have a particular expertise. with him, it was a visual and i felt that angie is such a force on her own that the best way to support her was to have a great, visual background. and speaking of angelina jolie, this is somebody who if she was not onboard with this film, you would not have made it. i mean, you have said that. what does she think about the final product? >> she loved the film. she absolutely loves the film. and boy, she is a tough critic both on herself and on the film, and, you know, we have worked hard and she absolutely loves the film and will be out promoting it. >> when you have big budgets and obviously this is an example of one, the expectations are so high. how much do you have to think about that when people are saying with the box office will be the first week in, how do you
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deal with that? >> i try not to focus on that. my job is to do the best job, get the people together, tell the best story i can. i have some input into the marketing and where we placed the film, but if i have to go to sleep every night worrying about returns, i would be sleepless. thisu do think a lot about very tale theme. you are going to continue on this path with more movies, a great example is you had success with "alice in wonderland" in 2010. you're working on a sequel now. when it comes to sequels, how do you differentiate? how do you do something different, for example, with that film that will make people excited in a bigger way? >> you have to do two things, you have to preserve what you think people loved about the first film, and then you have to kind of plus it up. the story has got to be great. linda wilkerson wrote the script, she wrote the original script. we have sacha baron cohen, a
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charter member of the loony group we had before, and everybody is coming back, including johnny. you just have to make sure that it does not feel like a cynical exercise, which frankly some sequels do, and this one does not. everyone is excited to come back. >> is it be same except things, for example, for yet another sequel that you are working on with the sequel to the "oz -- the great and powerful"? >> it is exactly the same thing. "oz" -- we have so much underlying material. there are 220 actors in the bloom catalog, so what we will do is -- we are still working, we have not gotten to dorothea, so we are still working on introducing some of the characters that people know from their origins, so there is a wealth of movies inside the catalog. >> all right, beyond the fairytale theme, you are busy with a lot of other stuff, including another disney film that is going to be released soon, "million dollar arm."
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what are your expectations for the box office for that one? it is getting a lot of buzz. >> i think it is going to really surprise people. i love the story. we picked it up on espn. it is about two boys from india who come from poverty who end up getting tryouts to the pittsburgh pirates in 10 months, never having seen a baseball game in their life. a very upbeat, emotional, funny story. we have tested it here, it tested so well we decided to elsewhere. we tested in london and in mumbai, and everywhere we tested, people love the film. it does not matter if you are a 12-year-old boy or a 65-year-old woman. it is just a really feel-good story. it will surprise some people. >> all right, before we go, we should mention "heaven is for real" hits theaters today. this'll make people think about things like fate. one you are reading a script, you shut out the outside world,
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you read it front to back, and then you form an opinion. in the case of a film like this, were you thinking initially that this might get lumped into the category of religious films or fate-based films? >> well, of course i was concerned about that, but actually it was not the script -- i bought the book before it was a best-seller, and what intrigued me was the idea of a four-year-old boy having a near-death experience and having his visions of what the afterlife was like. i just don't know anybody who has ever lived who does not have that question. it just seems like a great way to approach that subject through the eyes of a four-year-old. >> in our less than 10 seconds, i know you have said that for young filmmakers today, you are jealous in the sense that there are a lot of places that are netflix,,r contents, the amazon, all sorts of spots. are you still feeling that way? >> i do. rare of jealousy because
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they have so many ways to make it a get their content scene that was just not available when i was breaking in. great right, joe, always to get your perspective, very busy with a lot of upcoming films, thank you for your time. >> thank you, jon. >> joe roth, everybody foes of emily, back to you. >> i looked it up, and angelina alie's daughter did play cameo. in fact, her six other kids were too scared. vivian was the only one who is not, so she got to be in the movie. she plays princess aurora. >> there you go. >> isn't that cool? >> that it's very cool. >> ok, jon erlichman, our senior west coast correspondent, thank you very much. onlineis not just an destination for celebrities like beyoncé and lady gaga. we will get a tour of the company's hit nyc headquarters next. ♪
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>> welcome back to "bloomberg west." i am emily chang. from beyoncé to the white house, everyone is talking about tumblr. the platform hosts 180 blogs with over 80 billion posts. blr lookdoes toum like after the screen? visited thehle headquarters. >> welcome to tumblr headquarters located in manhattan's flatiron a-rod, its office as it is not to say hit destination in the digital world. its office has colorful art like s isything in the wall from artist on tumblr. >> it has ping-pong. >> so people can relax. >> it has phone booths. it even has standing desks. >> at a supposedly healthier,
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but i'm too lazy to try it. 's growth has exploded since yahoo! bought these site for $1.1 billion last year. is up.s user base time spent on the site is climbing, and get this, tumblr is hiring five new people every week. count squares, soda that square footage from 5004 50,000 today. >> there would be seven of of us on a floor, sitting on the window sills crandell, then finally we just burst out. >> david karp is a high school dropout who founded tumblr seven years ago when he was -- as tumblr matured, he worries over losing the start of nature. >> of the idea that there are whole weeks of tumblr where i might not cross paths of some of you working on a particular
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project is something we really work hard to make sure we do not lose the sense of family. >> made in new york pride is on display throughout the office. meanwhile, its owner is 2500 miles away. >> in the deal with yahoo!, when you think about tech, the power players are in northern california. why not make the move? the west coast, that question always came up, hey, there are always engineers, how much would it take for you to be willing to move out of the valley? >> i was born and raised here. i cannot imagine doing it in any other part of the world, let alone california. >> bloomberg's stephanie ruhle there inside tumblr. it is time now for the bwest byte where we focus on one number that tells a whole lot. john has the byte from l.a.. what have you got? is 13.y, the byte
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remember when the ios, apple had mercedes, volvo, but they said there were 13 other manufacturers that they would eventually rollout carplay in some vehicles. today, hyundai, one of the partners, says the 20 15th and not is going to be using carplay. >> welcome it is good to hear that these carmakers are moving into the 21st century. when is this going to be available? how long before these kinds of systems are mainstream? >> for them to partner with the of ferrari and mercedes right away, the sticker is not significant. people are already paying a lot of money and if they have to pay additional money to get something like carplay, they are not thinking of it. but to be truly successful, arplay,like c
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and there are other companies pushing in car technology, blackberry is an example, they have to make it available the same when you can access all these efferent apps and services like pandora in a lot for to really gain traction, but this is a really important area to watch because the car is the next frontier, the same way we talk about the battle for the living room, we were talking about earlier with mark mahaney, the car is just as important. >> all right. indeed it is full stop companies like apple, google, i was speaking with the intel cfo yesterday, all of them are chasing the dashboard. they all want to be part of this, so that is a battle we will indeed be watching. jon erlichman, thank you, and thank you all for watching this edition of "bloomberg west." we will see you later. ♪
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>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." today, the federal reserve releases its latest survey of u.s. economic conditions. the newwill go live to york auto show. consumer advocate ralph nader sides with big hedge funds. to our viewers in the united states and to those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. it matt miller followe

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