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

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nancy, the creator of... to a, where she is looking for the next day and. interview with charts andding the brain faster internet speed for its customers. a major investment in broadband that will hit telecom and google right where it hurts. and the clippers can't jersey and why jesse jackson says -- the lat made news on the court last night. maybe the warriors on game five of the playoff series just a few hours. bid for what would be the greatest acquisition ever. billion toing $17
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the business of the french company. siemens may make its own bird. shares of twitter are down as much as 12% in the free market. twitter pops -- twitter's -- in the growth first quarter. we will be told what is going on in twitter. and, normally a big day for investors. however, mike mckee says the real deal is that the data and not the response will be what matters. honored to be the first media heavyweight on your show. have you ever been less excited at a fed meeting at agenda -- a janet era? into the rate of getting rid of qe.
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do not expect much out of them. it is more about where we are going than where we have him. that is another -- have been. blame that on the weather. we will probably see a real decline on what is happening to the first quarter. that will be ancient history. just a few minutes, 10 minutes from now, we are acting in increase. in the last five months, in four out of the five months, we have seen 80 underreport what the labor department did. that can move markets. at 10:00g coming out a.m. to see how things are going in a manufacturing region. news on the horizon. >> what other data could be important? inflation,ean
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remember a collapse of just half a percent in march, it was a vested to go up but not by as much as expected in april. ors now puts on a cot another easing on the ecb's agenda for next week there that would have profound impact here. it would change the currency rate and would affect our trade. also, speaking of central banks, they did nothing down the road. >> what exactly will we look for? it will not be a terribly exciting meeting but what exactly will we look for? class we will look for them to tweak their views on the economy and perhaps things are getting a little better as the weather has warmed. they're doing another $10 billion cutback, which brings them to about half of what they started in december. nobody is really forecasting anything. >> thank you.
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be sure to tune into our coverage. all thempton will have reaction right here on bloomberg television. whose movie is shaking this hour? jeff is there with me at the panel. in the future, he says he will pay by the inch when it comes to feature phones there he was on a panel i hosted this week at the global conference in beverly hills and says the business model will change for movies in the future. it is predicted movies will be in the theaters for 17 days. on the 18th day, they will be everywhere. you will start $15 to watch a movie in the theaters. two dollars on your smart phone.
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he said look, he may be putting both feet in his mouth, but it will likely happen in the next 10 years. ther him, i head over to annual cable show. we're there in front of her booth at the cable show. one of the most successful programmers in cable television, she oversees channels like a&e, history, and lifetime. record-breaking hits like uptight the and survival and turning it into a top 10 player in the cable industry. mosted her what she is worried about when looking at the skyrocketing cost for content. class is also skyrocketing costs to pay for production companies. there is a real appetite for content in general in the market. we have seen that with a lot of deals being cut.
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we are not reliant on licensing off threats or licensing net programming or movie package deals. we believe we are content creative and that we are brand developers and that is what our business model is. our content creation and modeling in-house, we are launching a indie studios and it has its first fully commissioned series on my time that will be coming later in the year. you ares. on in like almost saying there is a bubble in content right now. to be seen but we all look at the model in terms of reduction companies being bought. yes,ld venture to guess there is a bubble there. you are also paying a high mold
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all for companies who have series that are aging. it is not a foregone conclusion that one hit show ages and you find another one where they are not that easy. there is not an apple orchard we all go to to pick off when we needed. it is complicated and it needs to be diversified to be sick that for long-term. that is what we have done so well at a indie network. we diversified our brand. in terms of how we manage our thenels and what audience channels the superior we isersified what content that and where. we go through our e-commerce business and our traditional partnership business with cable operators and satellite providers. class has to dynasty been a benefit? >> yes there we are used to the numbers. theory channel had one of
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germanic changes in cable history, going from a barely top 10 to a top three network and a number two network. its rise like nothing anyone has ever seen in the cable business. we are used to the raw numbers and tough numbers and are never overly reliant on one show. as that rocketship was taking off and we were seeing a year ago audience is being broadcast television, will we were not cheering in hallways as much as saying to ourselves, we should not become dependent on this show. have those shows and they are great catalyst is on many levels. >> health put the channel on the mat. on the and he has been map for quite some time -- >> amd has been on the map for
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quite some time. a strong advertising business as well for us. it is a flagship network. history has surpassed it with its rise. we are home to three of the top 10 networks for cable with respect to the demographics. that is pretty significant. the third-largest media portfolio, second only to turn her in terms of audience share. you do not hear a lot about us because we are a private company, which i think allows us to operate more creatively because we are not changing our plans on a quarter basis. we chart a course and stick to it. we understand the creative process is not as -- is a long this -- it is a long-term business. class how do you know what men want to watch? a good question. i like to watch what men like to watch. maybe that is a taste issue. >> you like. dynasty?
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-- like duck dynasty? a very dual audience. it is not male skewed at all. maybe even a little more female skewing. oriented andmily families are watching it together. we are not very reliant on focus group tests. we develop shows from the ground up and work hard in the development process and we try not to demonstrate artist -- artificial exuberance. we want to know the process is a process and if you make it all about transaction, you -- you lose the creative part. we do not always win on the strategy. of people will make it all about the deal but we try to make it about the relationship
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first. that has been a winning formula. class that was the ceo of a indie network. coming up, in the fast lane. you will hear about the plan to take on google in high-speed broadband. another exclusive interview from the cable snow -- show. plus, the clippers fall. a civil rights activist gives his reaction to donald sterling, the lifetime nba dan, and what happens next. onare just getting started this wednesday morning. ♪
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>> speaking about jobs, we just got the payroll report. the breakdown on the private numbers. >> better than expected. we thought we would get 210,000. 220 is better. by break down bisect -- sector is good. $19,000 in construction and you hope to see a rebound in
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construction as the weather got better. the report suggesting the weather may have played a role. theices the largest area of economy. this is private payrolls and does not include the government. in the last five months, we have seen adp under what the labor department ended up finding. see people trade like that. >> thank you. mike mckee. even with the emergence of high-profile executives like marissa mayer. have to face the conference attended by leaders of all factions, only four of 21 speakers were women. for more of a gender gap in the
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tech world and how young professionals can work smart, which i talk about in my book, i speak with the cofounder of a career resource who -- geared towards women whose investors include sheryl sandberg. this is not a surprise to see most conferences are dominated by men. they themselves know that problem. still have a tremendous leadership gap in the country and it manifests in a number of ways. this example you are providing is just one example. weeks ago withee equal payday. it is still a massive issue. the country has not budged in a decade. we watched a whole campaign around this for the month of april to inspire and educate a new generation in the workforce around some of the issues they might feel have been resolved, although they persist. class how do you address this? foremost, weand
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need to teach the new generation and employees how things like this affect them. when we launched our campaign, we surveyed members and on the majority of them felt the wage gap was a thing of the past and did not apply to them. uponid, did you know graduating from college, you toeady already be making $87 your mail dollar. all the sudden, the dollar -- the conversation changed. >> but pay is so personal. there are places where women are out learning men. there are places where that clearly happened. there are also places where the gap is even wider than what you are about. how do yoursonal, make that a national issue?
8:19 am need to it is not just about money. it is about learning how to ask for what you need in your career. asking for feedback, oferstanding what level responsibility you could proactively take on and asking for a solution and expanding the scope of what you are allowed to do in your job and asking her raise. there is education on how to do that. do you find the younger are less aware than the older? >> this generation is much less aware than the way -- of the wage gap. in a number of ways, there is a sentiment and we have seen this in our research, we just released a survey where we surveyed 10,000 members and asked him the question. they tend to believe the leadership gap does not apply to them anymore because they are in an academic setting.
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they have not yet experienced the tipping point. clients do you feel like they have gone far enough? feministsel the movement has gone far enough and does not apply to them anymore? data, theyy feel the no longer feel that way. once they see the data around their own wage performance and leadership trajectory and they see the numbers applied to them, they no longer feel that way. cheryl was an early investor and has been a phenomenal advisor and supported. has been a vocal advocate of the leadership gap. can educatee against that at scale with technology. >> some have said her speaking out for women and women's issues has hurt her image as a possible ceo later on. >> it is tremendously important for leaders to voice their perspective and i applaud it.
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>> thank you. >> thank you for having me. >> great for having you. still ahead, apple founder steve for walk-inous meetings. he did his best when he walked around with his colleagues. find out who else is finding out success in walk and talk next. also, internet access that is 100 times faster than normal --e it we start offering it an exclusive interview. ♪
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"in there watching a loop" live on bloomberg television. 26 minutes past the hour, which means boomer television is on the markets. equity futures are mixed right now. you have a host of earnings that have come out in the last 24 hours. companies beating on revenue, although there are delays.
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we will speak with the ceo in just a few moments. also, twitter shares are hitting a whole -- all-time low, dragging down stocks as well. in 30 markets again minutes. now, a bloomberg exclusive. the company classes third-largest cable provider said this year it will roll out faster broadband to consumers. the kind of reserved for offices. all of this challenging companies like at&t and google. a first on bloomberg television interview at the cable show in me give you a sneak peek on something we are working on right now. broadband business services a moment ago, delivering give -- gigabytes beats has always been a priority. tohave delivered gigabytes commercial customers around the country.
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we are around the residential side of the business. overtalking about a plan time as all of our customers and all of our markers have residential development. we are excited and it is great for our local communities and over the next two or three weeks, -- >> what was behind this thinking? >> it is always been a part of our roadmap. we are probably a little too humble. it is time to show our roadmap with our customers. qwest what do you mean, too humble? >> we are more about our values and what is important to our customers and employees and our local communities and we do not always spend a timeout in a press laying out what we will do five years from now. wejust try to focus on what are doing and what we will do. qwest why roll this out now you know why the out there more now?
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>> it is a marketplace where people make a lot of noise and we want people to hundred and what our roadmap this. qwest you will be revealing which markets you will roll this out in. were you hearing from residential customers, that they were demanding faster speeds? >> we hear from customers they want morespeed and they want capacity over time. we have been doing that and it is nothing new in 2014, we have been increasing feed. we offer five different tiers in the market. we want to make sure customers have a choice in the market is him -- market. i do not know if i in the first out of the gate. that was pat astin. we will have much more on our exclusive interview in the next aboutwhere he talks activity in the cable industry.
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in the meantime, a look at bloomberg top headlines, twitter shares are hitting a new -- record low. membership reached 255 million to -- in the growth. doubled to 250 million, topping analyst estimates. federal and state prosecutors are considering criminal charges again --redit suisse according to a person familiar with the matter. it for allegedly helping americans evade taxes. prosecutors are trying to determine whether they violated sanctions by doing business with iran, cuba, and energizer exploding into college rated companies. the company will include portable lighting products.
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the company hopes to finalize the deal next year. . john summers are better than expected. .2,000 jobs expected and now a glance. those numbers are out. growth is what i am seeing for annualized first-quarter compared to 1.2% growth. severely undershooting economists expectations. qwest pretty bad. breaking news would be that it snowed and was cold. after 3.3% in the fourth quarter. of the money is on durable goods. we bought a lot of cars.
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does thison is, what -- what is business to? a 5.7% gain in spending in the fourth order, it dropped 2.1%. contracted what it was buying. equipment fell 5.5%, intellectual property, software and movies, up only 1.5%. we talked a lot about how housing was a problem for the residential investment fell 5.7%. a lot of problems with this report across the board. rose 85erview -- billion after rising 112 billion in the prior order. not much you can say about this except we hope things will improve when the weather warms. purchases of 1.5%. the consumer is still in there. qwest thank you.
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mike mckee. education is one factor in creating jobs and keeping the economy going. the supreme court last week supported a ban on affirmative action on the university admissions process. they need to find new ways to achieve university without racial preferences. i'm joined right now by one of the most prominent voices pushing for equality in the united states erie the founder and president of the coalition that promotes civil rights. we will talk about the clippers owner and his dan from the nba in a moment. first, i want to tackle the supreme court decision, which you said is extremely significant, a landmark decision by those in court. how do you push back on this? class the race-based negative of legal slavery,
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100 years of legal jim crow, and today, you can measure the absence of blacks and women and people of color and american life. youth is going to college, getting jobs, affirmative action, women and people of color. >> some universities have pushed back and have said, affirmative action does not work for us and there are other ways we could promote diversity, target more and inome students, texas, i am sure you know this, they say the top 10% high school graduates are immediately admitted into texas university. those are other ways to get diversity into the university system. are they not writable? --
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credible? they can find black athletes to stimulate their image and raise money because they want to. we did not know how good everybody could play in baseball. you glad of your way to recruit and train and develop. hp and google and facebook and twitter, there are no blacks on the board of directors. goals,forcement for because we will not in fact grow. way,ret to think -- by the it is not even gender-based. gender-based. why do you have women basketball and track -- it is illegal to lock women out. that is not fair.
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qwest there was a pullout last year that said about two thirds of americans are opposed to affirmative action. seem a majority of americans do not want affirmative action in the education system. >> when dr. king was killed position, his vietnam he was about 55% negative among blacks and negative among whites. we did not appreciate him and now we embrace him as a martyr. now't just the focus right on the ranting racist on the ranch, we are ignoring the impact of the supreme court decision. education lesso accessible. there is a gap between blacks and whites and health care and income and wealth and housing.
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the big banks were targeting .lacks and brown they were fined $.4 billion and not one criminal charge. qwest we will talk about the clippers in a moment, because that has been the news of the weekend, on the tech company you mentioned the lack of diversity on the boards. have you talked to any type of venues and their leadership? -- tech companies and their leadership? class hp has no blacks on the board. we are going to the verizon board meeting tomorrow. offering $50 billion with $200 million in phoenix. unacceptable.
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we want to weigh trade and two-way reciprocal beneficial trade and that is all we want. -- it leads tog growth. all we ask is, you cannot grow with half the markets they're you cannot be successful if you do not see the home market. there is a market of latinos and blacks that is growing. class all right. we will bring you back and talk about what has been going on in l.a.. up, we are one and that is become the new motto for the l.a. clippers on the court last night now that donald sterling may be forced to sell. how much is it really worth? we will find out. ♪
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>> the mva sent -- the nba sent
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a clear message to donald sterling, that the clippers do not have any place for them. is threeommissioner months into the job and addressed the issue in a statement yesterday. qwest i will urge the board of governors to exercise its authority to force a sale of the and will do everything in my power to ensure that happens. qwest we're joined again by jackson andse williams, our bloomberg news reporter who has been covering for us. let's start with you. the overwhelming feedback is that he did the right thing. qwest absolutely, adam silver did everything within his power. absoluteropping the nuclear option, saying he is selling the team out right, immediately right now. it might not have been in his
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power as it is. we do not think he could do that. andid everything he could the response from buyers and owners around the league and anyone really associated with it is that he did the right thing. qwest how do you think the commissioner has done handling this? >> he put the time and engaged in due process. he met with players and fans. out, thetisers pulling players may not have played last night if he had not been so strong. , hemr. sterling could do should apologize for those he offended. he should resign with grace today and put the team on market for sale. he cannot win a technical legal battle very he has no advertisers or fans. he has no players. qwest is he apologized, would you accept it? >> if he does with contrition, of course. it does not skew is that --
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justice. is -- he lost two civil in the housing referring to blacks and browns. he shows, we have such a high threshold for racism. the media and the players knew about his behavior. if this had happened a week ago and players were complaining, they would have been dismissed as whining millionaires. it took this tape. class this was well known, he had made rasul -- racial slurs before and the ncaa cp would honor him again. class i think that was a mistake. but often, it you end up tolerate -- tolerating in trying
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to survive. the end aa will not be long now we know the league -- what we know. doo not know what they will but i know the players have spoken and the fans have spoken and the advertisers have spoken and mr. sterling has about three options. one is to apologize, resign with such as it is, and sell the team. qwest when we say banned for life, this has happened in sports before. is he really banned for life? questec means he cannot go to games or participate with day-to-day decisions with the team. but the big punishment the nba will dole out is when the group gets together and say he has to sell the team. a lot of sponsors drop out their association with the clippers and only one has come back. a lot who have yet to come back
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are waiting until donald sterling is 100% no longer the owner of the team before they decide they want their brand associated with the clippers again. qwest the protest was just a warm-up. , a massiveed shutdown and boycott last night so strong and so clear. with dignity, they make things happen. it was a matter of his own dignity that was at stake. the hohmanabout oddly not going to the military because of a matter of dignity. the president at that point last night on a matter of dignity. 12 years 12 years a clipper, it was acceptable. qwest seven talked about the advertisers and how they pulled out and are on hold right now here at cristina alesci has been doing work into getting -- digging into how much the clippers are really worth. how much are they really worth?
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qwest sources are saying the team could be valued from anywhere from $609 to $1 billion. these are huge numbers. rationally speaking, the value of the team is based on three things. one is the size of the market. l.a. is a big market here. that is working in favor. they have to split the market with the lakers. another thing that determines value is the arena and whether or not the team is entitled from the arena. in this case, the clippers are not. the lakers aren't cited -- are entitled to some of the proceeds of the arena. you then have to look at other reason trades. on this front, the valuations have been phenomenally high if you look at the sacramento kings and how much they traded for. $35 million about a year ago and million and $550 they were right dead last in terms of franchise value.
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whether or nott they have been phenomenally doing well. >> reverend, who would you like ?o see by the clippers they -- qwest they have an opportunity. there are investors lined up for the opportunity. not raise the money, which we can now. there is a reason to expand and diversify the ownership of the team of the league more. the next big deal is that these the industry of basketball, not invest in their team, a conflict of interest. in the global marketing scheme of basketball, they should have
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a stake in investment and the industry they created. qwest thank you for joining me. really appreciate it -- really appreciate it. minutesbe back in two -- on "inloop area the loop." ♪
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>> the days of power lunch have come and gone. they think on their feet. they're joining the ranks of executives that hold meetings while walking. one of them is the ceo. we asked jeff goldman about the benefits of locking meetings. qwest holding a meeting in a walk changes the dynamic unit in an office, they are entering the room and you're entering the room with things happening that day. when you go outside, you are
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changing it up. people are not checking e-mail or look at other things. they are focused on it. there is a great bike path. no cars. you do not have to worry about or any other disruptions. some of the more difficult conversations i had happened on walks 31 otto is looking at direct -- directly at each other. something difficult or even emotional. some of the toughest issues we are grappling with. tomay take one last walk talk it through. it brings a different energy to the conversation. >> you now know what to do the next time you brainstorm. watchng about beverages, tomorrow as i take you inside pepsi. to eat asbably have well.
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inside the facility, star athletes. it all starts with my exclusive interview with the ceo tomorrow at 8:00 a.m. eastern time right here. "in the loop" returns in two minutes. ♪
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>> bloomberg television is on the markets. we just saw growth slow given the bad weather. numbers are coming in a little bit better than expected ear that is a prelude to the jobs report on friday. s&p futures are a little lower. we are on the markets again in 30 minutes. coming up, facebook introduces a new mobile at book. youan tell you what else can expect from mark zuckerberg and the company. and the new chief information the target is someone who used
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to work in nationals 30. how his hiring is changing targets. ♪
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>> here's what we're working on. futures in the beginning, the government says economic growth stalled in the first quarter. headline numbers arrived only one percent. exports all dropped ahead of the fed decision. warnedckerberg developers at a facebook conference in san francisco that they could make more money by building apps for his social network. southern company reported first-quarter earnings that beat estimates. they will be talking to the utility ceo. target turned to the outside to take over its security area
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months after a data breach compromised the credit card information of tens of millions of customers, it is a big job and the hiring indicates a shift for the strategy and target. megan hughes joins us now. what does the move tell us about target? class a big job. this will be a person in charge of long-term strategy when it comes to cyber security and they were looking for a fresh perspective. who is this guy? strategy shift for target, he has a lot of governing experience. an advisor for homeland security, department of justice, home is a -- homeland defense. that is interesting as we see a shift. he also has a lot of private sector experience. he works for a big payment processor, which will be important. another big box retailer for home depot and city rank.
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information technology surrounding credit cards, which will be very important and a big focus going forward. the move also signals a change for the ceo of target and how he does his hiring. the target ceo has more than 30 at target.perience look at all the executive bios that target, more than 20 years. what we're seeing here from the ceo is a shift to look outside and look for fresh perspective, specifically when it comes to cyber security. class what is the company doing on that front? class a couple of big announcements. one was a personnel change. they announced a partnership with mastercard and that they would be moving more quickly in the transition from magnetic strip. you will remember we heard from a cfo who mentions over and over again when he testified at the hearing, saying chip technology would be the way forward.
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switching over the revenues is supposed to happen by september. suddenly, their portfolio. debit and credit cards, they are switching over. it is expected to be more difficult for hackers and we are seeing a lot in europe your target will be one of the first retailers moving forward aggressively. class what about the shuffling of the deck chairs? has rolled in the target breach? qwest there have not been any big ones, but the highest level departure we have seen is the person he is the -- he is replacing. target tech officer during the breach stepped down last month. she was not fired.
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she had come from inside the company. we are seeing the shift target for more outside help. >> thank you for the story. megan hughes in washington. i want to turn to my exclusive interview. at this year's cable show, time warner cable and comcast merger was a hot topic. of last week, charter announced it will acquire up to 4 million subscribers in order to help them get a deal done. we will have much more in my interview in a few minutes. we will be back. ♪
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>> back to my exclusive interview with the cox ceo. mergerart of comcast with time warner cable. he told me how charter companies
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plan to compete. >> isabela city to customers and providing price and services they want. business services here today. increase use be. you could find yourself in an advantageous position. we have launched contour, a direct result. more second screen, and personalized listing. it has been a home run for us. look at the broadband size.
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we have been increasing the speed every year. we have a very powerful market share. classless talk about it. tell me about the businesses. about3, and was 1,000,000,006. mid-double-digit for us in the mid teens. we continue to see the business grow. it will be $2 billion very quickly. it has been important to us because it leverages our existing network and our powerful brand. it puts us in a position to respondedmarkets that well to it. qwest why hasn't been ignored? -- >> why has it in ignored? -- been ignored? class it is about six point $6 billion we compete for on a daily basis. math against the
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industry, a $17 billion opportunity. i believe and 5-7 years, the industry as a whole will capture about one third of that. >> are you seeing growth? are you seeing that accelerate? class last year, we started bending the curve. we were happy the way the year started out. we will see how the second quarter started out. coming out of the first quarter, you saw the industry is bending the trend. qwest gaining is losing not as much as before. why is that? they are seems to be continuing to drop off and cord cutting is out there. qwest that has not been our biggest issue. it has been competition.
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there has been a lot of share shifting going on in the industry. some of that has been confused here it i think it gets away from the fact there are -- we haveut there been holding on to a constant size. this year, the cable industry had a pretty darn good first-quarter. it is because our user interface is better than we have given the customer better options. more on-demand options. it, if you have hbo on your television set you also have in our tablet. in your daily life, wherever you are at it, you can consume hbo. qwest you can watch the full interview at online at a or on your for
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app. moving and shaking this hour is the tesla founder elon musk. ground on two battery factories in two states, just to make sure one of them is ready. in february, he said he would go the world's largest battery plan. the gate of factory. -- giga factory. batteries are designed for use in the mass-market, cheaper than electric car. e-cig goes rolling out a new line of sodas the summer, with real sugar and not high fructose corn syrup. that comes as the $76 billion market is on the decline as they're opting for healthier alternatives. standing to benefit is a company that sells unsweetened flavored
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acrosst 20,000 stores the u.s. and is the drink of choice on google campus. the founder and ceo, also a former executive at aol, we're joined with more. you have had more than one career and your life. how have you gotten the tech companies to buy? class that happened very naturally. pinterest,ampuses, square, facebook, just to name a few. what they're doing is offering healthier alternatives for employees and healthier alternatives in the beverage space means no sweeteners. is the number one unsweetened flavored water in the market. thosensumer has chosen campuses to provide. >> are most of your sales on those campuses? u.s..e all over the
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qwest we are on nationwide. we just rolled into safeway, and we are also in 3500 starbucks locations. we are going into many new for -- food services account. grab and go places, primarily on the west coast and east coast as well. qwest a huge part of the beverage company's business, pepsi has a lock on those types of accounts. how do you break into that? qwest many of the accounts we offer healthy now alternatives. millenials are choosing those places to have lunch at an dinner at. they want to provide healthier drinks as well. qwest the holy grail would get into a mcdonald's for instance, or getting into burger king or whatnot. is there any room to break into a platform like that?
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qwest we think there is. onave contacted mcdonald's numerous occasions. i have not heard back. . am interested qwest you might hear from them now. qwest actually trying to get hints especially with their salad and healthy alternatives. qwest what do you think of coke and pepsi using real sugar? like a ploy to tell consumers, if you want sweep-checks, we will use something pure and not high fructose corn syrup. i think that is a good idea, but moving to sugar is sugar. consumers are telling us they are reading labels and trying to move away from not only sugar, but also sweeteners. many do not like the taste of sweeteners. moreerstand why offering
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sugar to the consumers -- we have a health issue in america today. many consumers are finding they are getting things like diabetes diseaseo and crohn's and they want to move away from sweeteners to get themselves healthier. they oftentimes aspire to drink water but it is boring. hear that a lot. flavored water. thank you. ceo of the and beverage company. it might be early for your daily diet pepsi but take note. tomorrow morning, we will take you inside pepsi all day long. on the move live from one of the pepsi center's outside new york city. i will show you how to make chicken waffle chips. how to make them taste like the real thing. can you imagine that in the morning? it all starts in two interviews with the ceo tomorrow on bloomberg television. you cannot miss it. we are back in two.
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senior west coast correspondent jon erlichman is there. tell us the game plan. since this company went public, making the movement and making the doubt -- the dough. a lot of it is coming when you are using facebook on your phone. half of facebook's avenue now is coming from mobile products. they often have success when you're using facebook nec anachronistic a trying to get
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you to download a different app from the app developers are working on. here is the problem and it is a good one for facebook here they do not want to make it too cluttered on facebook so they will make a pitch likely today for some of these developers to say, let's handle that for you. it is generating more ad revenue per at for us. maybe we can make more for your us. we can all laugh on the way to the bank together. that is possibly the pitch we can make today. >> but john, mark zuckerberg come about him trying to get app developers to facebook over apple and google. what is his strategy? >> if you think about it, if you are developing a nap and a lot of people are focusing on that, you think, i've got to make this available for iphones or ipads. and for android devices.
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in the mobile world, sometimes facebook is not necessarily a priority. one of the things they did is they went out to the company that will be a key focus of what they're discussing today and they can say to developers, we can help you develop your app, some of the backend stuff, and then we can market your app to more than a billion people on facebook. that is part of the pitch they will certainly make in the mobile world. >> what about facing competition from the likes of twitter? >> we know the twitter report google,-- facebook, twitter are all competing. we're all getting to the bad network business is a sign of that. keeping people engaged seems to be the big priority. reaction toin result last night. qwest thank you. jon erlichman. we are just a few minutes from the opening bell and we have the top 10 trades you do not want to miss. keep it here.
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>> we're on the markets. olivia sterns has the latest. qwest pretty much flat right now. lower,futures are showing the u.s. economy is .arely growing 1/10 of one percent. 1.2%. coverage and it is widely expected to stay the course on
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tapering, continuing to cut bond buying by $10 a month. on the markets again in 10 minutes. qwest thank you. countdown to the open with the top 10. these are the only joins you need to know. -- only trades you need to know. energizer holdings, a company known for its battery-powered pink bunny plans to separate household products and personal care units. energizer expects this to be completed in the second half of next year. number nine is expressed strip. the manager reporting a 12% drop in earnings and cut its forecast. it received subpoenas related to the relation with drugmakers, including pfizer. bread reported a lower quarterly profit in spite of the severe weather for slower sales in the bakery café. spies come as an overall still it operates in stores and a cut its outlook for the year. qwest that number seven is ge.
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the company made a $17 billion offer for the energy business to open official negotiations with the french company and thwart a potential counteroffer from siemens. it appointed a committee of independent directors to review video. qwest number six, shares fell as much as 20% after the company announced it is cutting full-year revenue forecast, mostly due to lower sales of its testosterone gel. we will report full first quarter results on may 6. qwest number five is ebay. they posted first-quarter earnings that he estimates. will take a $3 billion tax charge in order to move a portion of its earnings back to the u.s.. >> number four is time warner. it raised its forecast and be profit estimates. thanks to the success of warner brothers, the lego movie. it also said game of thrones continues to serve as the
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most-watched cable show for the last three weeks. qwest number three, pepco holdings. the nuclear operator agreed to by the washington metro area utility at 6.8 million -- billion dollars in cash. it will be helped expand in eastern u.s.. >> twitter said yesterday membership broke in the first quarter fell 25% to some 30%. it dropped to its lowest level in its debut. they topped estimates. qwest number one, u.s. utilities tires and man commits weather. as -- as a result, the ceo is just -- in just a few moments. first to call on the markets. i want to bring in the senior managing director. his call is that we are in no man's land when it comes to this
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direction. about what, you should always buy into a correction. qwest you should. in a bull market, those conditions are just not present but they are -- we are optimistic. qwest what do you mean? >> you make a loan where you ,ant to be an aggressive buyer when the percentage of stocks among the various averages is much lower than we are now. highflyinge of these social media stacks and they have been crushed. that is not enough. qwest we are in no man's land as to whether we would be a buyer or an aggressive buyer. >> correct. our target is up 17% this year. say earnings are fairly well so far. julie hyman has an digging deeper into the earnings so far.
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scorecard andhe we're running in line when it -- it is not unusual. one could say the whole system is a little bit off kilter with so many companies beating estimates. when you look at sales, the number is much lower. 3.4%,0 profit is about much better than projected when reporting season began. one of the concerns continues to be the sales number that lags in terms of earnings. a lot of people pointed at sales numbers and said that he did pick up the pace and do better if we will see sustainable growth. qwest if you look at revenue numbers in the reason why not to be an aggressive buyer here? >> no, you could have used that
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every year. the argument has been wrong for clock for years. it is hard to believe that 175% from the 2009 low, now is a good time to be a buyer. earnings have cut paste over that time. prices.y with stock we had a valuation expansion that started in 2011. we have pretty strong earnings growth. there are five markets as we know. the market correlates to the direction of earnings and that is driven -- qwest so the earnings has been up. qwest you have to figure what makes direction earnings go up. what makes that positive? banks lending. the capital markets lending. until you really have inflation pickup to the point where the
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fed is so aggressive it amends the yield curve, it is not whether you are a buyer but whether you are a more aggressive buyer. class you are looking at the troubles here. >> janet yellen gave a speech in which she warned tougher rules on banks may be needed versus what is already adopted. liquidity requirements would provide economic benefits. a big threat for financials that regulation is coming on board and will eat into profits. if you look at what the financial sector is earning, here is the s&p overall. grow 7.2% overall for the benchmark their financials to grow one percent. there is the elephant in the room, the bigger question of rising rates. if rates rise further, -- as
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they are expected to do. that will eat into margins also for financials. qwest the case is you have got easy lending standards by the banks and increased loan demand easier credit and standards in most of the mortgage areas. as you progress through the cycle, every minute will not be great for my favorite sectors, financial being one of them. financials are basically flat with the market 12 months prior to the first rate hike. we assume the first will be march through june. it will be a little bit of a positive and relative performance not that much. >> you expect and outperformance after interest rates go up. >> correct. when you look at the 9090's, financials did well off of the low. in 1994 and badly then had one heck of a mauve.
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big move a pretty since the bottom of the financial crisis. >> similar to the post s&l crisis because the one down the most. .oan demand picks up i will highlight it is not one of my favorite sectors my top would be information-technology. i am talking about, people keep making the kids like we are in a bubble. is apple,m i have ibm, not google, apple, ibm, and microsoft are some of the biggest tech stocks. the case thoseke are overvalued. they're considered value stocks. they are 10% of the 1000 growth index.
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10% of them are those three stocks. qwest all right. great to see you. thank you so much. strategist.tfolio coming up, chairman and ceo tom joins me. he will find out how much the cold weather had to do with earnings. pretty much stall in the first quarter in the economy. stay in the loop. we are just a few minutes into today'session. ♪
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>> one stock we are watching this morning as southern company. just reported its results for the first quarter revenue and profit far outstripped expectations. we heard southern -- the new coal plant it is building in mississippi would receive further delays and charges, bringing it down to nearly a billion dollars. we will talk about this and quarterly results.
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tom, good to see you again this morning. qwest great being with you again. qwest common first and what >> tell met so -- first what happened again? even with recent tornado activity, we lost productivity at the site. we had an aggressive schedule anyway and made a judgment that along with the loss of productivity, there was just too much risk building up on the schedule. we will still try to complete it this year, but we made the conservative judgment to extend into mayential delay 31, 2015. qwest ok. how confident are you you will be able to stick to that new date? that is our best judgment right now. up to a will add billion dollars for southern
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company's? how we you be able to offset those costs? >> the technology we developed, you may recall from our private conversation, it is the only company that does robust research and development. this is a technology we developed that uses low ranked coal, low grade coal, here. we will gasify it. we will create synthesis gas. we will capture carbon dioxide. in this case, we will use it for enhanced oil recovery. we will produce out of this plant somewhere around 2 million barrels of oil every year. we will produce electricity. imagine once we get this complete, we will be able to preserve, we think, a way thatrd with a technology should make it more environmentally friendly than natural gas. there is tremendous international interest.
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i return from china. they compare it to the united states, four dollars and $.50. poland has tremendous interest. , they have aend lot of low rank coal. important fors mississippi and southern company's and america. internationally, this is the kind of technology people need to develop and deploy. qwest there is no doubt this is the new technology. it is what is being pioneered by seven companies and others are aware, as you are, of what is going on with limiting carbine -- carbon emissions. , it is nowlant costing up to $4.5 billion to build the plant. how will you offset the higher bill? you can only pass on so much to consumers. original deal we struck
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in mississippi for the plan was around 2009. good news bad news. the good news is the mississippi customers there no -- no the increasing costs. they have gone to the southern company and no one is particularly happy with that but we think it is an important development. wherenk other markets they will be able to gain revenues and there may be other technology developments we will promise down the road. we have got to continue to innovate as a country. it has been, painful. qwest tom, on another front, the epa and their limits on carbon emissions in the supreme court backing of the tougher rules. you have been opposed, as well as your fellow utility ceo's is, have been opposed to the new
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limits. how crushing will the regulations before a company like yours? >> the most important regulation coming out of the environmental protection agency was something that has caused us to close down or convert 7000 of our 20,000 megawatts. that has been the biggest deal. i do not think going forward in terms of carbon will have that much impact on our operations. it makes something like the plant we just discussed more attractive. once it is in service, we think new will meet all the initiatives we see going forward. let me offer this up and it is something i talk about a lot. the ceo, one of the most important companies in the united states, i am responsible
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for providing to my customers clean and safe and reliable and affordable energy. only other entity in america that could make those kinds of policy adjustments are congress. i look to congress to set energy policy, not regulators. >> are you happy with what congress is doing or does congress need to step up? class i would love to see them step up. i coach year at the business roundtable. think we could get bipartisan support to move energy policy forward for america. i think america could be energy secure by 2020. by 2020 five, we can at four percent to gdp, 3 million jobs, $1.6 trillion in new revenues to offset federal deficits. we could create an unassailable advantage in manufacturing and create jobs to make american lives better.
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of the companies in america providing not rhetoric. qwest on energy, we are still waiting for the keystone pipeline for quite some time. if the pipe should be built. qwest thank you for joining me. and coming up, the $300 million else by the u.s. military back to go on hundred miles an hour. i will tell you which company -- which country. ♪
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>> iraq is holding its first elections.rian at least 15 people have been killed in election related and -- violence. it looks like google chairman eric schmidt was right. he won last year that russia was on the path toward china's model of internet censorship. lastly, the russian premises and said the government needs to propose greater control over the
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world wide web, the web of agencies. the euro rose against the dollar this morning over speculation stimulustrained from netsuite even as data showed inflation in the region is less than what economists forecast. the finance minister said today he does not foresee a strong appreciation but would welcome a softer level for the common currency. he told francine the clock today that there is good reason to think there will be surprise for gdp, on target to achieve a tenths of one percent growth this year. >> i hope we could do better. though i cannot say that more explicitly, i think there are good reasons to think we will have an upside surprise. qwest in another global story, media -- the air lander with a
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top speed of 100 miles an hour and can carry and operate in the most extreme weather conditions. $350 to army spent develop the aircraft but ran out of money. a british company is now giving the air lander . >> is the world's biggest flying machine. air lander is larger than a boeing 747 and 24 feet longer than the previous title holder. airship useske helium to get off the ground, but, it uses its aerodynamic shape to stay in the air. foran hover in the same hot five days straight and land on sand, water, ice, or snow. developed theany original model for the u.s. army, but the program ran out of funding in 2013.
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several months later, hybrid air bought back the project from the military for $301,000. the company plans to sell the ship for $40 million to oil and mining companies that need to transport cargo to remote parts of the world. the alec -- air lander has attracted unusual fans. the lead singer of the british heavy metal band iron maiden invested 450 thousand dollars into this. he wanted to fly nonstop around the world and stream the trip over the internet. the air lander's maiden voyage is scheduled for 2015. "inhat does it for today on the loop." watch bloomberg television all day tomorrow. i will report live from one of the testing centers in new york. it all starts with an exclusive interview of the ceo. we will be joined by pepsi's chief scientist and the task to scour the globe for sweetness.
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only on bloomberg television. ♪
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>> in this 56 past the hour. bloomberg tv is on the market spirit i am olivia sterns. we are about 30 minutes into the trading day. let's get you caught up. markets are moving a little bit lower. the s&p is down by a quarter of one percent. the dallas fairly in the red, pretty much flat. -- down by a tenths
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of one percent. we had disappointing gdp figures out this morning that have been weighing on the markets. an annualized rate of just 1/10 of one percent in the first quarter. that was well past the forecast surveyed -- of surveyed economist. commodities,o let's show you what is happening to the price of gold. it is trading lower today. down 6/10 of one percent. they pared early losses following very disappointed gdp figures. following now for the first time in three days on part in speculation inventories extended the record high. from crude oil to palm oil, it is the world's is most consumed vegetable oil used in some of your favorite stacks. tooth,se with a sweet the drought is now threatening surprised -- supplies. digging into the issue, we are
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joined with a look at what the action could mean. break it down. what could the action mean for consumers like us? >> in a word, the indications are drought. in malaysia, the world's is top producers of palm oil receive less than two inches of rain in the first three months of the year in some areas. that is the driest spell for the area since 1997. the dry conditions actually stressed palm fruit, which are crushed to make palm oil. some meteorologist project el niño may occur as early as july, parsed even more farms in australia, further reducing the palm oil supplies. qwest the dreaded el niño strike forhat could this mean prices and palm oil? >> concerns about tighter supplies and cost rising demand sent palm oil futures to an 18 month high in march.
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increasing costs for top importers, india and china. all models survey by the australia bureau of meteorology indicates el niño is likely this year. he outlook is not good. goldman sachs listed palm oil among the most vulnerable crops should an el niño event occur. >> if prices for palm oil do stay high, i assume some companies hedge for this kind of thing. what kind of impact could they have on the bottom line? >> it will be an impact, it sounds like, because palm oil, like you mentioned, is the most use vegetable oil in the world. it is used in twix candy bars, pop tarts, and oreo cookies. nestlé, the world's is largest food company, said his product prices are not linked to short-term changes in raw material costs. the switzerland-based company buys about 410,000 tons of palm oil each year for use in ice cream.
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410,000 tons of palm oil each year. , it woulder prices appear, could have an impact. >> all right, joining us from bloomberg news with the outlook for palm oil, unfortunately suffering for -- from the deepest route in 17 years. market makers is coming up next. ♪
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>> live from bloomberg world headquarters in new york, this with erikmakers" schatzker and stephanie ruhle. >> un-following twitter. shares fund as investors focus on slowing user growth rather than better than expected sales. the ceo will be with us to tell us what he is doing to get more people to sign up. >> donald sterling could be forced to sell the clippers because of his alleged racist remarks. optingnew breed of ceos for getting out of the conference rooms and into the great outdoors for some of their most important meetings. welcome to "market makers."


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