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tv   In the Loop With Betty Liu  Bloomberg  June 26, 2014 8:00am-10:01am EDT

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and the fight for equal access to the internet. we will also but -- talk about aereo in the high court yesterday and what that means for the future of innovation in the way you watch her television. plus, leo hindery will be joining us. all of that in a moment. first, a look at headlines this morning. the new york attorney general filed suit against the bank. four hours and counting. the u.s. against germany. coach says you should take the day off and watch the game. google started removing search results that request users in europe last month. citizens haved eu the right to be forgotten when it comes to the web. from regulators.
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york attorney general gave some details in a news conference yesterday. >> our complaint alleges the marketing of safeguards was false, the lawsuit files today charges that it drew to one of the largest in the united states by telling investors it were diving into safe waters when, in fact, barclays dark pool was full of predators who were there at barclays invitation. >> kerry geithner, let's take a to usack and explain exactly what this is about, these dark pools and barclays involvement. >> dark pools are where the big majority of stocks in the u.s. are traded. they are dark that forms and we do not know what goes on in these. it is not transparent the way the exchanges are.
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a broad off investigation into high-frequency trading back in march. we now have a case against barclays. we look at how they allegedly deceived their customers about how they ran their dark holes, which could impact the customer's lime -- bottom line on trade. dark pools are part of the discussion we had with the fcc, and other regulators on how to that does notrket have transparency and a lot of people simply do not understand. key -- they are one of the platforms people used to look for better devices with these fast computers that beat everybody else on the market. >> just the word is nefarious. it sounds nefarious. >> it does. it is the lack of transparency
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to have people heated on the issue. now that we finally have a case on this, cracking this open and letting us look on how -- at how this operates. average investors should be worried about this because? transparent -- transparency in the equity markets at the end of the day affects the price of stocks and that trickles down to re--- to the investors. could ultimately hurt investors. >> thank you. they will have an interview with eric schneider. trish regan will press him about details over the barclays investigations -- allegations. that is something you do not want to miss. fourth-quarter results last week, the food
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giant taking a 681 million dollar write-down. alix steel is following this company. what is the reality behind the rough quarter? >> they seem optimistic going forward. full-year earnings at six andent, picking up in 2016 2017. labeled thiste this back in 2013. that is the biggest problem. it basically has its own retail brand, winding up committee -- having a better relationship with stores. the private label is generic. not a lot of shelf space when it comes to the issue. the thing we showed you before is an overall issue. we are basically spending less. our spending on groceries has
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risen less than one percent a year since 2008. a steady increase in discount retailers and market packaged food, we are just not sending that much. >> how does this reflect changes in the way we eat and what we need? >> part of that is we are just eating healthier. that is not good for canned foods products. they have things like chef boyardee which contributed to the write-down. you can see we are only looking at 4/10 of one percent growth from 2018 to about 20 billion. >> what does that mean we are eating? eating healthy things, gluten-free foods, a lot of spreads and proteins. here is a breakdown of what we do when we go to the grocery store. from 2013-2018. a large part of that is we're looking at the disease and
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understand it more. are also snacking more and can blame that on the millennial's. potato chips. a five percent growth in 2013. by 2018. billion i am talking peter chips, chocolate covered potato chips, changing how we wind up eating. ofcan look at it in terms yoga sales, 10% in 2013 to 10% in 2018, hitting almost $9 billion. >> in a landmark case, the supreme court voted to protect broadcasters against aereo, a streaming service whose subscribers can watch broadcast programming without a television set. they can live stream it. basically, over-the-top alternatives.
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equity now, a private investor in media. you did not think area would win here. i am still reeling from the loss of chef boyardee. i thought the case was a foregone conclusion. was to business model steal other people's copyrighted material and sell it. antenna iot a rooftop might have gone to radioshack and bought and watched over the air as opposed to on a cable system. >> why not? isn't it now in this day and age? >> there is a lot wrapped up on this. this is the first shoe to drop among trees that will drop. the court yesterday said copyrighted material belongs to the man who
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develops it and creates it. it is their prerogative to value it and sell it. it is not my prerogative to steal it and resell it. you will also hear from the senator about net neutrality. when net neutrality is a very concept between giving broadband to everybody and again protecting the copyrighted materials. what will happen, because we have now embedded in the long-term a retransmission consent, the third shoe to drop after the elections, we will look all a card. expressed.istress >> that consumers are frustrated with how the -- how much they are paying. >> large parts being pieces they do not want or cannot afford. >> how will this position push back at all on these costs?
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broadcasters transmission fees will only go higher. >> there was a suggestion retransmission cost to the consumer, about $4 billion a year, directly and indirectly, it is about $20 billion a year. it is factors more. we watched here and you and i lived in new york. cbs,tched last fall where one network, wanted two dollars for signals. all cable subscribers. it is the legions of dollars. much more, and then there are indirect add-ons. what was important yesterday was not the demise of aereo. aereo was a the -- a thief. they were stealing copyrighted material. >> and repackaging and selling it. just taking it, but
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stealing it and selling it. >> i want to read to you one comment made in a statement, right after a decision. he said, this ends a chilling message to the technology industry. are we moving toward a permission-based system for technology innovation? >> he did not read the justices ruling. the justices ruling endorsed advances we see every day in technology. he said this is not a technology decision fundamentally. this is a theft of copyrighted material decisions uniquely. we will continue to see wonderful young man and -- young men and women in this country. we will continue to grow. >> let me take the other side. what chet is saying is if you have got to be worried that every time you want to use content or every time you are looking at making some sort of
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technology based on other peoples content, you need to get permission first from the content operators before you can even go ahead. that will slow down or even stall innovation. >> it will stall the theft of the copyright material. it will not stall innovation. your children will live in a media world markedly different than the one you grew up in. over-the-top with technology, they will watch what they want to watch but only what they want to watch. they will pay for only what they want to watch. technologies will continue to evolve. you cannot have a world where i book or a tv- a show, and someone comes in and says, thanks, now i will take it and sell it away from you. we have to protect people's copyrighted materials. this goes back to gutenberg bible forward. >> thank you for joining us this morning, leo hindery of intermedia partners.
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♪ moving and shaking this hour, sandbergs coo sheryl has been vocal about the need for more women to be in leadership roles. bestseller. she may want to look at her own company. facebook says its work is 31% women. managersake up 20% of and 10% of technical employees. the manager admits the company has a lot more to do and to be fair, facebook's numbers are not much different than other big tech companies. yahoo! allkedin, and reported similar percentages. ,hat fight over net neutrality that means having equal access to the internet. we will talk to al franken, who opposes what the fcc plans to do. also, i have got a weaver and the only cure is more world cup.
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the u.s. soccer team says it is ok to ditch work for the big game. stay "in the loop here: -- loop." ♪
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>> you are watching "in the loop" live on bloomberg television. now that net neutrality has gone viral because of john oliver, more and more critics are speaking out about proposed new fcc. for the there is even occupy google, which called for taking action on july 15. the internet senator, al franken. senator, thank you for joining us. i want you to weigh in on the aereo decision yesterday. what is your reaction?
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>> i thought leo hindery covered it very well. they are violating copyright law. and were taking something selling it that was not theirs. ,t was a decision by the court but i will give you an example of copywritten material. can i call you betty? you can call me al. we just stole from paul simon. it is very different because we cannot just do a song. we actually did something else. we added to it. but no, i think this was the right decision. it was a narrow decision but i think it was pretty clear, too. i was also surprised because i thought you would have been
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more sympathetic to aereo because they felt they were the little guy, the little tech startup that wanted to, that tried. collects it is about little tech giants. tilting against the reason so many people are responding to john oliver's piece is that they understand lane,f you have a fast which is what they are talking about and what wheeler talked about, the commissioner of the fcc, you will forge innovation. this was not so much innovation as stealing. a good example of this, before
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youtube, there was google video. google video was not very good. the guy who started youtube did pizzeria in california and because they were able to ,tream or flow their content people liked it. they liked it more than they liked google video. everybody one except for google video. point.t your because we had a free and open internet, the little guys could do better and get a fair shot. but senator, some of the brought by the cable companies themselves, say look, if you start regulating the internet, and you do not allow us to give priority access to some or be paid for this, then
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we will not be able to make the investment. show you what jerry said about net neutrality. >> we are making significant investments in broadband. it is critical to the investment and growth in the country in the last thing you want to do is cut off that investment. >> he says he will not be able to invest. >> look at all the investment we have had in broadband. look at where this can from -- came from when it was developed by american taxpayers. we have had all of this expansion of the internet, all ofthis amazing growth, all these jobs, all the vitality, all the innovation. not while we had net neutrality but because we had net neutrality.
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giving a fast lane to people who can afford it will do will be to thwart innovation and he knows that. that was a disingenuous argument if you ask me because it sort of what everyone was saying who was overloading the fcc. >> the internet itself, it is not exactly as if the internet is a completely fair and open system right now. googlepanies like themselves, for instance, they already paid to get some priorities over others. they have so much traffic. -- sonot as if it is some fair right now. >> there are issues using the bare-bones of the internet onto
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isps, but to develop a fast lane or deep pocket corporations i think is a mistake. >> some say the issue is not just about net neutrality, but really about how the cable companies are getting bigger and bigger. should it not focus on how you top the mergers versus how stop the fcc? >> they are kind of related. comcast time warner .able deal if they combine, they control 40% of internet broadband. that is why netflix is really to bef forced to pay them able to stream directly through them. to me, they are very related. that is why i have been a
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proponent of that deal and basically of this consolidation of telecommunications media. >> i know you introduced a bill, senator. a few weeks ago, where you and two other democrats wrote this bill where you are basically noting the fcc they should be imposing priority access lanes, these fast lanes, i want to read for you one part of what john boehner said about net neutrality. extensive neting neutrality regulations would only serve to deter investment and stifle one of the brightest spots in our economy. he is basically repeating much of what you just heard from one of the cable operators ceo's. how do you get republicans on board?
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>> we have heard troubling .hings coming from republicans we have had all of this innovation and expansion from the internet without net neutrality, why do we need it? betty, does that make you chuckle a little bit? who,re hearing from people i do not think, understand exactly what the internet has been and what the architecture of it is and the fact that we have had net neutrality from the very beginning. this is something developed by the united states government, by our taxpayers, and we have a just be say this should a common carrier and should between did as telecommunications. tweeted as telecommunications.
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people do not understand exactly how the internet works. a lot of people have a mental framework of an internet maybe 10 years ago but not the internet of today. overe are kind of fighting what they believe is the internet today, when it is a much different place. >> i do not think that member of congress understood the internet as it was 10 years ago. that is the problem. think some of the new members that get over there, some of , i think ifertarian they understood it, they would say, yeah, you cannot have big corporations buying access and hurting the little guy. i think if they properly understood it, they would be on my side. i think they are being told by of theeadership, sort
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big cable companies, are funding them to a degree and saying, this is the government takeover of the internet. that is the dynamic that is happening in the house. >> senator, we will leave it there. much, senator al franken of minnesota. betty any day. >> you can call me al. >> all right. moving on, a look at our bloomberg top headlines. go pro begins trading today. the maker of wearable cameras trades $470 million on its ipo. the company sold $78 million per share. shares will trade on the nasdaq. more bad news for gm. the automaker, stocks selling 2014 chevy cruises because of potential problems with airbags. gm is expected to file an for the recall notice
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company's top-selling car, the cruise. -- cruze. cigarettesf marlboro earnings forecast. it is 26 minutes past the hour, which means bloomberg television is on the markets. are nickedres because they have been, pretty much, in the past few days, there has not been a lot of conviction in the market. we have seen direction after the economic data and after the opening bell. claims, spinning numbers will be out in just a few moments. staying with the markets, it turns out there are lessons you do not want to learn at harvard. if you had a diversified portfolio over the last year, in what a steep price turned out to be an epic rally. big victims in the incident
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include many endowments of those of major universities who spread their funds into real estate and private equity and hedge funds and other alternative assets. is this market a signal that it is time to change its model? whot perry is a partner advises endowments with a total of $50 billion in assets. endowments in this market, where it seems like everybody had been going up, why has it gone so wrong? >> a couple of things have led to underperformance of endowments versus that of a traditional 60-40 portfolio. has been fairly well publicized, the move away from economic equities. domestic equities have performed incredibly well over the last five years, especially last year, where they are up over 30% . most endowments have moved away from equities and decreased their allocation. they have taken the capital and moved it often to alternative
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assets. hedge funds, real estate, and while those had produced positive returns, they had not kept up with that of domestic equities. finally, emerging markets had underperformed. that is an area endowments have also allocated to. >> it seems that was pretty much across the board. >> you know, there are large institutions, the harvard and yell and stamford's of the world that have implemented the endowment model. what we have seen over the last five or 10 years is a greater push from other institutions to try to replicate the model. the challenges they often do not have the resources to do it in a way harvard or stanford good. >> they missed the boat overweighting domestic equities, how do they
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make up for lost opportunities here? now is certainly to avoid the temptation of switching to that portfolio now. we have seen it have an acredible run, but we think diversified portfolio, one that allocates globally is well-positioned from a valuation perspective to do well going forward. >> thank you so much. have got breaking right now on the economy. 300ess claims coming out at 12,000. that is in line with what economists expected. personal income numbers watched by the markets and up 4/10 of one percent, also in line with estimates. spending a little bit lower than forecast, just up to tenths of compared to economist expectations of a gain of almost one percent. digging through the numbers, mike mckee, not such great news
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by the consumer. >> at this point, the consumer does not seem to be going out of their way to spend a lot of money. ofdid see a slight revision today for members from the negative 10th of two flat but only a 2/10 gain from the month of may in terms of overall spending. we're looking at what the numbers are and you want to see services spending go up. it stated ready flat during the month, half a percent. goods are up by almost three quarters of one percent. it is the rest of the economy we have been watching. have ad news is, we fairly strong gain in incomes and a strong gain within that in terms of wages and salaries. we know we spend what we make. that may hold out some promise for the future. as the economy gets better, more people get hired. staysbless claims number
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virtually unchanged. the good news there, we do seem to have settled into a very low that wouldaims suggest that hiring is going to be still strong, if not outrageously so. you so much. mike mckee going through the economic numbers. coming up, the aol cofounder speaking, hitting the road, taking a bus tour. to middle america on a campaign he calls, rise of the rest. we take a look at what he is hoping to a cop was. we will talk to a veteran agent plus, the most exciting picks for tonight's draft. it starts at 7:00 p.m. tonight. stay in the loop. ♪
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>> in detroit, it an extension -- extensive hearing on a case will be held today as the court
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appears for a trial set to start on august 14. i was in detroit this week with the aol cofounder, who used detroit to kick off his rise of the rest tour, which wants to create more silicon valley's in middle america. spoke with the founder of quicken loans and the majority owner of the cleveland cavaliers. as a detroit native, he has a vested interest in seeing the city bounceback. >> we have over $1 billion in inestments for real estate technology, existing buildings, new construction. -- thes 100% residential young people that come your cannot find a place. >> we will have much more from my exclusive interview, and we will also hear from the michigan governor, rick snyder, all in the loop tomorrow at 8:00 a.m. eastern time. in lower manhattan, one world trade center added two
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additional tenants. julie hyman has been following this story for us and he has -- we have been hearing about occupancy issues for many months. >> if you put it in perspective, and this is what i heard from many real estate observers and people in the industry, the first twin towers, the first big project, also had some struggles in leasing. aere has always been disconnect in manhattan between downtown and midtown in terms of the pricing, in terms of the demand. historically, lower manhattan, transportation was not as strong. you did not necessarily have workers who wanted to commute there. it was not as convenient. that has changed because transportation is much better and they're trying to improve this site in a new master plan to make it more human friendly, and not so much the old scale of the old site. there are some people who do not want to be on site at all.
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>> there are some legacy issues as well. >> one of the things we have been doing is cutting prices. we always see if the brand-new building is a technologically advanced building. to arday, i spoke spokesman, one of the developers and he saiding, yes, it is being offered as a premium in the real estate area, but maybe we have to shrink that premium to make it more competitive. 64th floor, the asking rent had been $75 per square foot and now they are down $69 per square foot. that might have been one of the things that clinched the new tenants. one of the things is hospitality, also operating the observation deck at one world trade. the other is an investment advisor to sovereign wealth funds. of them are taking
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relatively small spaces, but every little bit incrementally. >> larry silverstein, a developer, he has got several buildings on that site. what is going on with them? >> one had been installed in eight stories for quite some time. he has just reached a finance agreement with port authority. he has been fighting with them over trying to get loan guarantees. he came to an agreement where they will not get loan guarantees but will free up $150 million in financing. a spokesman saying yesterday that now the bond market is more favorable and he should be able to get his own private financing. there was an unusual struggle between him and the authority for members voting against him to get the guarantees. this is typical of the troubled history of this site. it has been a longtime since 9/11 and a long time to try to bring these buildings to fruition. this is characteristic of the
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back-and-forth and the political infighting going on to try to get this site completed. >> thank you. coming up, the u.s. soccer coach needs your support and he thinks you should skip work. he wants you to skip work to cheer them on. is the latestman celebrity to take late-night couches for an apology. but it may not be enough this time. stay in the loop area -- loop. ♪
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>> tiger woods returned to the green today. it is hard to say who is looking forward to the reunion more. scarlet fu joins us for more with a look at the numbers. >> the numbers -- they are staggering.
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ofically, the super bowl golf. you really see it in tv ratings. tv ratings for 2014, final round was 7.8. 7.8 of households tuned in. that is the lowest since 1987, john a quarter in the previous year. golf is not the same. we saw the resale value of the u.s. open past and plummet by almost half of $540 from the previous year. >> what about the record? >> it has been interesting. if you look at how he has done in 2012 and 2013, he has 18 tournaments. -- eight tournaments. not, andged, fair or he has not won any since 2008. that was the turning point. in 2008, he won with a shredded knee and a broken leg and he had to get surgery afterward.
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before then, he was dominant. 14 major wins. after 2008, a major drought. downhillay it has been since 2009, the year he wishes he could take back. personal problems. the escalade, the girls, the dispute with his wife, all of that. it had been downhill ever since. in terms of tournaments tiger one, in the last two years, eight. >> doesn't it affect his earnings? >> it does. he has done fairly well in terms of money he has one from tournaments. he is number one, doing better than phil nickerson, who has pocketed 70 the ash $74 million. sin, -- phil mickelson, who has pocketed 700 and -- $74 million.
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a very lucrative deal for tiger woods and he has deals with other companies. so -- total earnings is in the neighborhood of $21. physically but financially doing ok. >> thank you so much. speculation surrounding lebron ises's next move now that he a free agent. i spoke with the cavaliers owner about whether he wanted to bring iran back to cleveland. the collective bargaining agreement, the nba union, i am prohibited in any way, shape, or form, to talk about layers contracts with other teams until july 1. come back a week from now and maybe we can talk about it erie you thought david stern was tough. adam silver has a nice -- nice mouth but his fans can be worse. >> i can imagine. >> all right. he does not want to flout the
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rules. the 2014 nba draft kicks off tonight, beginning amid a swirl of trade speculation. for more, i would like to bring in the veteran nba agent, tony. what do you think about king james and where he might go next? >> there are a lot of opportunities out there for him, obviously. it was a formality, him opting out. it was good for him to do that. he can look at all his options and try to make a good decision moving forward. end up in likely to miami. >> why would you want to do that? lebron james, why do you want to be a free agent? >> a lot of reasons. one is, you want to see what the team will do to build for the future and who they will bring at the same time, you want to look at your options. that is what the agreement does. it gives players an opportunity
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in those situations. you never know. it might be one where we see him at the end of the day and he ends up somewhere else. >> let's get to the nba draft tonight. to my understanding, has a first pick. who do you think they will pick? >> my gut is they will take wiggins. parker is probably the most ready for the nba but if you look at the future, down the line, it could be a real special talent. >> you have players who will be in the draft. partner and hemy obviously was just diagnosed with a career ending injury. it is real sad because he was looking forward to hearing his name called. my thought was he would be a late first round pick. extremely unfortunate.
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>> a syndrome he was diagnosed with? you went with a standard physical? >> yes, basically, at the nba camp, they test layers there for a lot of different things and found something abnormal and they had him come back and do additional blood work and the additional stream -- screening is when they found the disease and it is extremely unfortunate we found out three days ago. it is a sad day. he is a great kid who will bounce back and have great opportunity to work in sports if that is what he wants to do. i know he will try to go back and get his degree. >> how was he doing? >> he is doing good. was out the tryouts. he was a guest of atoms over. that was nice they invited him out there.
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he gets to experience it, so that is nice. >> for the others who get drafted, how important is it they get drafted in the first round? >> people look at the draft a lot of different ways. in reality, it is not so much how high you go, but the team you go with. there is so much opportunity out there, you want to make sure you get to the right spot. i sometimes tell kids you are better off getting drafted three picks later than what you are projected if the team is a better fit for you and you will go into a system more set up for your game. >> what do you tell these kids? what do you tell them when you are negotiating the deals? what can they accept and what can they not accept? for a young someone coming up for a draft is that you have got to play. they get so much, it is a popularity contest going into the draft. if you are a player at the end
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of the day, you have got to be able to go out every day and play hard. everyday is like a championship game. they have to understand it is not something you're walking into and just because you are a star in college, you will be a star at the next level. it takes a lot of work and effort. most games, talent is done in the summer when players do most of the work. >> thank you for joining us. the sports coverage continues. tell the truth. we know a number of you will each work later today. not for the whole day, but at least for a few hours to watch the world cup match. a few hours against germany. a note was tweeted out for your boss, explaining your absence. the team will need the support of the whole nation if it will advance to the next round. supervisors should set a good example by also taking the day off so that
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nobody feels guilty for doing it . coming up, gary oldman plays the villain against hollywood for real. then he apologizes for it here and will explain when we return. ♪
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>> actor gary oldman's latest role. once nominated and -- for an oscar for playing a secret agent in a film. in an interview, he denounced hollywood for what he described as hypocrisy and political correctness. one of his quotes, mel gibson is in a town run by jews. is hollywood, and he said he is profoundly sorry for his comments. these are his words and not mine. -hole, i am am an a 56 and i should know better.
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a great actor so we cannot trust anything he says. is 56 minutes past the hour, which means bloomberg television is on the markets. equity futures have now turned a little bit higher after economic data that came out, jobless claims rooted much in line with estimates. we had personal spending numbers a little bit below what economists had expected. we are on the markets again in 30 minutes. coming up, gm recalled a record 20 million cars this year. now, they may have to do it again. we will tell you more. ♪
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x we are about 30 minutes away from the opening bell. i'm betty lou and you are "in the loop." the s&p is on track for a fifth straight month of gains. more recalls may be on the way for general motors. faultedm. has powell sales because of a positive -- g.m. has faulted sales because of a possible airbag issue. more on what to expect on go pros first day of trade, we are joined by leslie picker. what are we hearing about demand for gro pro? correct demand for go pro is
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very strong. multiple times oversubscribed. i'm told that the advisor to the co said they could price above the range, offer an increased amount of shares even more than their initial public offering and he decided against it. he wanted to make sure that they are getting a deal pricing at the high end of the range instead of above the range. he took a market which -- market instead of demand. >> it is difficult to tell. >> it leads me to believe we could see an open higher today. >> why is there so much into dsm-iv this company? >> it's a pretty neat -- so much enthusiasm for this company? >> it's a pretty neat company and profitable. they have made revenue the past
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four years that they have posted financials, which is surprisingly unique. as far as growth companies doing ipo's. they have a great story and a great strategy that they are lining out for investors. i think that investors were very positive about this company. >> and retail investors, were they able to get in on this? -- anotheragain unique aspect. there is a company that are located 5.3 of the shares and they provide chairs to retail investors. their premise is that customers will also be loyal show holders -- loyal shareholders. if i want go pro products and i want shares of the ipo, i will likely hold onto those shares anger as opposed to institutional investor that does not have any affinity to the product. they were allocating more to
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those investors. >> jpmorgan is the lead investor on go pro and they are working the alibaba deal. they seem to be doing more tech deals. >> they have. they have been doing more week tech deals. alibaba is obviously a big tech deal. go pro is a bigger tech deal. they seem to be breaking into the tech market. i'm told that they have been working very hard in silicon valley to meet with the start up companies, to get to know them early on so that when big heels like go pro, long they will be there --, long they will be there. prohen big deals like go along, they will be there. a 420 $7 million offering, but he gets so much buzz and attention that it helps these bankers pitch further deals, pitch deals into the future. we did this go pro deal and did it successfully.
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you saw the hype surrounding that. you have a billion dollar offering. let us be a part of that one. >> and for go pro the shares, do you expect them to pop today? how will they trade? >> the deal was several times oversubscribed. it's likely that the shares will pop. it depends on who's investing in the stock, what institutional investors got a location, and how much of the allegations they got relative to what they demanded. if they did not get a significant portion of the allocations that they wanted, they are likely to write the shares higher. >> by the way, matt, what are you doing after i don't think he is mike. he has a go pro on his chest. micced.'t think he is he has a go pro on his chest. that is an interesting brassiere. i'm just joking with you, matt. ok, leslie picker, bloomberg's
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ipo reporter. and shaking this hour, general motors ceo mary barra, i wonder if she can do all of this when she took over g.m.. the company has already recalled 20 million cars in north america this year and may need to recall its top selling chevy crudes. about 33,000 of the cars may have faulty airbag systems made by a japanese company. g.m. may have more recalls in the pipeline. to also denied that g.m. try cover up another defect, those faulty ignition switches. also this hour, prep -- former president bill clinton. bloomberg special correspondent willow bay had an -- had an exclusive with him. here is what he had to say about the situation in iraq.
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,> the whole world is in a race whether they are conscious of it or not, to define the terms of our interdependence. that is, let's say, iraq gets broken up and this -- in this vulnerable thing going on right now. the land is not going anywhere, right? and a big chunks of population are more or less going to be where they are. it is another example of people struggling to different -- to define the terms of their interdependence, and will they be positive, negative, cooperative, or comforting? -- or conflicting? america, almost more than any other country on earth, if we can solve the immigration issue, keep our work face strong, continue to improve our education, get back into the business of skills trading and quit denigrating it -- but don't say it is either/or. the real problem we had with
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education and training starting in the 1960's is if you thought you were going to go to college, you really wanted to get out of shop and mechanics as quickly as you could. [laughter] now that is crazy. the best schools are integrating academics and practical training. >> again, former president bill clinton with willow bay. coming up, the supreme court has isken that area -- aeroe illegal. we will talk to one of the lawyers that advise the broadcasters in this case. and people worried about having their identity stolen through their smart phones. now your phone may actually be able to a tech you from credit card fraud. stay "in the loop." ♪
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x -- >> banks and card networks like visa and mastercard are working with wireless carers to -- carriers to break down on illegal transactions. now it involves a users smartphone. how does this work exactly echo -- exactly? but i think pretty much who -- >> i think everyone who has a credit card has had it stolen at some point. it's a big pain to have it reissued. vacationould be on somewhere and your transaction gets blocked. what this would do would have a way when the card transaction goes through, the credit card network would check with your wireless provider and say, is this person in the country or city that they say they are? once that is confirmed, the transaction goes through, no problem. >> but it is not full proof,
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right? you could have a set where the burglar is in the same city as you. >> absolutely, it will not cover every case. but it could cut down on a lot of transactions that are either false positives were they stated stolen and it isn't, or transactions that should be rejected because somebody is making a transaction in the wrong place. someone is- any time going to know where i am, there are privacy concerns. what about that? >> this is in the testing phase. going on with at&t, mastercard companies that we gave a lot of information to already. but you will not be tracked unless you want to be. it is an opt in program. >> would you pay for this kind of service? how does the money flow? are still figuring that out and a lot of the costs are passed onto to consumers anyway. we just cannot see them itemized.
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the wireless fees may be charged through the banks, $.10 per transaction, something like that. that could add up quickly for them, but the banks might be interested in doing that because every call that comes into my return there is a fraud alert that is a false positive, that cost them five dollars to $10. >> to verify and dig into that. interesting. thank you very much. regarding today's contest between the u.s. and germany in the world cup, we take a look at world cup beer sales. ♪
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>> as you know by now, supreme court rules against video startup aereo in a sweeping
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decision. joining me now is the former acting solicitor general of the u.s. and now part of a law firm in d.c. and has argued 20 cases before the supreme court. he was also represented the broadcasters in this case. thank you so much for joining us today. we were there together for the oral argument a few months ago. he feeling good that you won this case. what happens next? -- you might be feeling good that he won this case. what happens next? >> well, that he, you're right, we are feeling good. this is a production that we predicted months ago. it basically says, the supreme court's decision by a wide a wide section of justices and the political spectrum says that this area that yanks signals from broadcast and rebuttals them
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better -- from free broadcast and rebuttals them and sells them is not the american way. a company cannot just come along and do that. what is next? i suspect what is next is what aereo said all along, which is their business model is flatly illegal if the supreme court were to rule this way. >> and this gets kicked back againo the lower court after this appeal was won by the broadcasters. what we see from -- seek from aereo? is -- will you seek damages against them? or is that water under the bridge now? get into theeally steps of the industry. the supreme court yesterday handed the broadcast industry a sweeping victory in saying that aereo was illegal. the next steps are four to play
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out in the lower court. >> i want to read to you the --ments from the co of aereo ceo of aereo right after the decision was handed down. he said this. whe what do you say to that? >> that is an interesting argument, but was flatly rejected by the supreme court for the simple reason that aereo is not in the technology business alone. this is not about antennas that are innovative -- and by the way, i don't particularly think this is some sort of innovative technology. it's about the service that grabs signals that they have not paid for and sells them to people for profit. thetechnological piece, as
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supreme court yesterday pointed out, was a red herring. they are not purely a technology provider or innovator, but rather a service. was obviouse aereo gated, and the supreme court said, that is not what you're doing and that is not the way american copyright law works. >> you do know this case is going to affect other cases that are in the pipeline that also have to deal with similar issues that were brought about with aereo. i'm thinking of one case coming up, which is foxx broadcasting against this will network -- dish network where dish was live streaming some of fox's programs and the same argument that dishes making was the same argument that aereo was. how will this affect other cases where other companies want to content? stream >> i don't want to get into the
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particulars of any case, but what the supreme court's broad principle announced yesterday is one that is applicable along a range of circumstances. freeannot grab free set -- television signals and sell them to other people for profit without compensating the folks who produce it. the broadcast industry spends billions of dollars a year innovating and producing content , and frank the, it's content that the world envy. -- frankly, it's content that the world envy's. for brought -- and for them to come along and think they could disrupt their revenue stream, they cannot necessarily afford to make the same investment. is decision made yesterday broadly applicable and affects our right more generally. i don't think this changes the legal landscape, but reaffirms what it has always been. >> but the fact that it is broad, as aereo brings up in their reaction -- the fact that
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it is so broad, what they are warning about now is that when others want to innovate television, they first going to have to go get permission from broadcasters in order to even start innovating? >> and that was what we were talking about before. it's one thing if you are just developing a technology, something that is, as you say, innovation. it's another thing if you're grabbing the signals out of the air and not paying for them. and the supreme court has said that copyright law from 1976 on is that you cannot do that. and that is why he said the last few pages of what justice breyer said in his opinion is not persuasive for him. justice breyer said, this is a narrow opinion and does not affect cloud computing and all of these other things. this is about a service that is trying to get something for nothing. >> thank you so much for joining
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us again. we are just a few minutes away from the opening bell. we've got the top 10 stocks you do not want to miss right after this break. ♪
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>> welcome back. your "in the loop" and i'm betty liu. it is 26 past the hour and that means louvered is on the markets. scarlet fu has more. -- bloomberg is on the markets. scarlet fu has more. >> not a lot to tell you right now. pretty much flat, but you could call it makes. consumers spending less than forecast, half of the expected 4/10 of one percent, even as incomes increased by 0.4%. the savings rate, we should mention, climbed to an eight-month high. we will continue to keep an i on the other asset classes, but right now, these are pretty slow.
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perhaps people are slowing down before the u.s. versus germany game that starts at 12:00 noon. >> that's right, hopefully they are taking the day off. this is the top 10, the only stocks you need to know today. alix steel joins in. let start with number 10, pnc paragraph -- pnc paragraph. they violated a banking deal that would cut solid operations for as long as a year. the talks could reportedly and as soon as next week. >> number nine is google. the search provider has begun removing some search results in europe after a european court told the company last month to respond to the so-called right to be forgotten. google will not specify how many requests it's gotten to date. >> and number eight, philips international, the giant that reduced risk products.
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two introduce a tobacco heating device in japan next year. barclays.ber seven is inegedly lying to clients high-frequency trading in dark wool platforms. berkeley shells. berkeley -- thelays shell shares fell on news. >> number six, mccormick. he continues to struggle in north america, but has been reaping the benefits of a key acquisition last year. >> and number five, the company many food groups, conagra, is up. >> and lennar is number four. the homebuilder beat analyst estimates as the company raised its prices and delivered more
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properties. homehe ceo said "the building continues its recovery." proximity his bed, bath, and beyond. -- >> number three is bed bath and beyond. estimates for the quarter. that is because of higher cost of expenses and only a slight uptick in sales. alcoa further expand into downstream manufacturing. the deal is set to close by the end of this year. >> and everyone is go pro. all eyes on the video camera debut this makes its morning. reasonableres at a $24. the stock will trade under the
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ticker sin -- under the ticker gpro. that will begin at 10:00 a.m. eastern time. [opening bell] now i want to bring you matt mccormick, the principal portfolio manager at volleying gainer. he looks at stocks like amazon, facebook, and netflix. look at these stocks over the last several months. yes, they have had some corrections, but they have gone up since your call in may. if someone had gone with you, they would have missed out on a rally here for the >> it depends on what perspective. you look at nondividend paying stocks like these names, and they have really high trailing p's -- pe's. 500, looking at the trailing pe's and you are
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looking at 10 times multiple for banks.igh data i get nervous when investors are paying a very high premium for a narrow portion of the market that looks to me like it's getting more tired. i would rather go to companies that have that are valuations and better fundamentals. >> you don't expect amazon, for instance, to go kaput. this company is a pretty solid company. >> know, when you look at these high beta momentum stocks, you need to look at what you're getting. i'm from ohio and in the winter, i don't see many for aris. i would rather have a beat up buick -- many ferraris. i would rather have a beat up you if that get me to where i need to be. is apple a growth stock or a value stock? theaudience is waiting for
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new product, and instead we get an iphone with a bigger screen. here is what lean it brzezinski said in a column today. it is a reminder of past missteps, like the decision to expand the product line until it became confusing. also technically a market leader, is now a follower. >> can it live up to its own key -- pe? >> you are looking at a 15 times you had theand mother of the all upgrades with the iphone six coming up. i passed some nerds ready to buy it on my way up here. not nerds -- >> we are not nerds. i have an iphone. >> i have an iphone, too. you will have everyone upgrade on it. the iphone six is going to move the needle. pay toyou think
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dividends. >> absolutely. people getting older, dividend stocks picking up and we will see more volatility coming forward. >> and ida blackrock is one of the stock picks that you -- and i know that bloc blackrock is of the stock picks that you favor. -- and scarlet fu has more on that. looking to grow into emerging markets, that may get unevenway because of revenue growth and phoebe right dynamic in the near-term because of the mix businesses. they also talked about a make outlook for the stock. and third, management seems perhaps behind the curve in alternative investment options. therefore, blackrock may need to make acquisitions to round out its offerings. >> what do you think of that?
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>> blackrock has increased 15% andhe last year and has -- will be on pace for the next three. this is a company that offers a wide variety of products. if we think we will get a correction, we will come out of it. i like companies that have a strong correlation to the spx and have a big dividend that are not money center banks. plus, the dividend increase, i think will be larger than most people expect. >> given what you like and in , whyreas that you like even bother picking stocks? why not put your money in some sort of mutual fund that goes into dividend paying stocks or a large-cap fund? >> we do have a mutual fund and will be happy to help you with that. >> [laughter] >> when you look at the way of investing, when people talk about the traits of the day, we look at long-term goals and when people are investing, it's for children's
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education. there is a need for it. income is something that we think people need desperately. it's not yield, but income and the growth of that income. the dividend is crucial when times are volatile, because these companies can grow their earnings and their dividend in regard to the economic environment. i think the economic environment is challenged, to say the least right now. >> i was about to say, you sound worried about the economy. >> i think expectations are way too high. i don't think there will be higher gdp than people expect. i don't think earnings will be as strong as people expect. geopolitical is always a mess. when you look at this kind of situation, i would rather be more conservative than aggressive anger with companies that are better valued and pay me to own them. -- conservative rather than ratherive, and i would go with companies that are better valued and pay me to own them. i would rather go to ge versus
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geewhiz right now. it sound like you're more ok getting single-digit returns that pay on your investment versus double digits. >> i think when you look at double-digit returns, it's like eating cotton candy with my children. sometimes they really like it, but the next morning there is the effect. you sell out of them before they go down. >> we are not smart enough to do that, so we will stay with the tried and true and get paid while we wait. on the call.mick coming up, new data shows workforce diversity leaves much to be desired, but it's not alone. everywhereenemies for facebook, more on the latest battleground. ♪
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>> here is the latest data on facebook.
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the lack of diversity goes beyond engineering jobs. 13% of non-technical employees, people working in sales, money, finance, customer support, our .ispanic or minority the rest are white or asian. the total workforce is 31% female. goober lets you order at the is fending off the california proposal that requires more coverage for drivers. the senate is considering a bill that would force transportation have better service in the united states. told toourt, and he people to requests by who do not want to be surged up by google. -- searched by google.
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with us to look at android tv is the seo of nimble tv, which allows their subscribers to content on mobile devices. also with us is jon erlichman. you were at that google event. jon erlichman, set it up for us and what android tv really means. >> i think the android tv unveiling says as much about the tv manufacturers as it does about the end consumer. it is a rebate of something google artie had, called google tv, -- already had, called google tv, which they rolled out a few years ago. it says that fancy tvs do not mean anything today if they do not interact with the devices and the software experience is not good. we have seen a lot of people buying apple tv boxes and row crew devices. devices.
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there is a need for companies like sony to offer this kind of software if they think people want to use it. that is to google is ultimately catering to to try to get their android services on more screens. >> what do you think? >> i think it is a smart move by google. verye in general has been successful in taking it android operating system and making smart phones happen. it is a fairly excepted operating system and works with multiple hardware. what google is trying to do here is to repeat that formula with an operating take system and handed over to multiple manufacturers. there are two things that happen with that. one is, it is a formula for google. ad second, it creates unification for smart tvs for the >> i was going to say, isn't part of the problem that they have so many interfaces for consumers? my goodness, they have two may
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choice is and nobody needs -- nobody knows where to go. applicationd developers in general have a hard time building applications for each different hardware device. this makes it a lot easier. is a company like apple going to answer to this, for instance? >> they will probably continue to push ahead. they have had success in what thecalled a hobby product, apple tv hockey puck. and it sold quite well. they keep adding more content to it because they wanted to be a more robust offering. at the end of the day, if people are paying for something like cable and they have a big tv, they just want to be able to get that content in a lot of different areas. if you think about anon's business, the blue pay for cable want to be will to access that in a lot of different places -- the people who pay for cable want to be able to access that
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in a lot of different places. this allows for that. >> this sounds a lot like aereo and what they are trying to do. how did you see this aereo case? >> we had been called the anti-aereo because our business model is so different. >> in what way? >> because people have to have a cable subduction to act -- cable subscription to access the service. everybody's getting paid and nobody is harmed. in terms of the ruling, i think the supreme court was very pragmatic and expressly made sure that the ruling was narrow and specific to the aereo business model. i think they also -- >> of course, we did have a lawyer on for the broadcasters who said this is a sweeping decision by the supreme court, that covers copyright protection for all of the broadcasters. >> sure, i think it is sweeping on that specific subject
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matter there are many ramifications that come out of it. but i think he also made clear that this was not something new. this had been there for before -- been there before. i think it is also important they carved out and were specific that other companies that have content for users that is unlawfully paid for was not public performance. >> thank you so much for joining us. the co of nimble tv. and of course, the senior west coast correspondent, jon erlichman. west --ouvered and 6berg west" at 1 p.m. p.m. daily. coming up, germany has been brewing beer for centuries. we will take a look at how much consumption of the beverage goes up when german soccer games are going down.
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>> time for the global outlook, and the world cup. when germany faces the u.s. later today, there is more than just national pride at stake. there is a bottom line for germany's brewers. hans nichols takes a look at world cup beer sales. thirsty, especially in victory. for the germans to have a banner year, they need two things, one, good summer weather, and two, they need the team to go deep into the tournament so that beer gardens like this one stay open late and everyone drinks when germany scores. sales have been declining since 1976. back then, the average german rank north of 150 liters, a pint of peru, 300 daisy year. in 2013, that had fallen to 106 liters a year, just 212 ninths
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-- night of boozing. they have an economic incentive to root for the home team. well, we havedoes breweries who report that they have souls one million liters more -- they have sold one million liters more on a given day. waterworks has its own technical analysis. when germany plays ghana, the water use almost tripled during the break. and then i return to the norm after the match. the game was a draw. >> international correspondent hans nichols. you escaped to germany to take on all of the tough assignment, i know. how much does this mean for the german burrs?
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hat does this translate into? >> that is a good question. take one of the main brewers, they were about 650 million liters per year. that only gives you a .15 forease -- .15% increase every additional game that germany plays. but that is an increase in sales. it is real money for the bottom line. the biggest factor for how good beer sales are, always the weather. that is why when you look at what happens in brazil, they are excited to have a 3.3% increase on their beals -- on their beer sales. the orc -- the historical average is 1.7%. the team is expected to go far. and the further your team goes, the more beer your country drinks. living in germany, do you feel conflicted at all? >> i'm just going to root for the winner. i have an easy response. i will be rooting for the team
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that wins. >> o, come on. you need to pick a side. exciteds what i'm about. after the game, the berlin waterworks is going to release another trove of data. if germany wins, we will see whether or not beer consumption takes up over the night, because you will be able to see that any outflows. -- in the outflows. great public works here. they will give us the data. maybe you should buy some german stocks. don't wait for the victory. wait to see the flashes. >> i have a feeling you may be construed into some of that data yourself directly. >> i'm on a flight to brussels. i got to cover the eu. i may miss most of the game. >> did you leave your fun back here in washington? nichols, international correspondent for bloomberg news. therrow, we have a look at
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right of the west tour. ♪
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>> it is 56 minutes past the hour, and that means bloomberg television is on the markets. i'm scarlet fu. we are 30 minutes into u.s. trading and stocks are falling for the third time this week. economic data shows consumer spending grew 0.2%, only half the expected rate, even as incomes rose by 0.4%. treasuries are higher. sinceose to the highest october, 2012. the central bank has made it very clear that rates will stay low for longer. that continues to be the vet. let's stay with bonds, because wall street has made it very
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interesting for individual investors to get into the market by offering up neutral and exchange traded funds. but it makes it difficult to exit, potentially leading to plunging values. lisa is joining us. give us a sense of how big this is. how much money has gone into these kinds of funds since, let's say, the financial crisis? >> since the end of 2008, more than $900 billion has gone into taxable bond mutual funds. this is a tremendous volume of money. people are basically saying, look, if the federal reserve is lowering benchmark rates and suppressing borrowing costs by purchasing bonds, this will fuel our investments and continue giving us gains that are built-in. the concern is, let's say, now that the fed is tapering its stimulus, they are considering went to hike rates, so what happens if people start saying i don't want to make this bet anymore and they start pulling out money? real times promised
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being able to get in and out by buying shares of basically things that look like stocks, but they give you access to markets that do not trade like stocks. these markets are married -- a very human. asy do not trade as quickly the stocks of etf's and mutual funds. an interesting contrast, because we got about how much volume there is, but liquidity is a concern. chris -- >> because that is the mismatch with liquidity. you have these shares and extremes traded funds -- exchange traded funds that you can buy and sell like stocks, but the underlying stocks do not trade as liquid leave. you could take longer find it and -- finding a buyer. the concern is that people try to sell the underlying bonds and cannot raise money as quickly to meet the redemption and it could create a spiral. >> is their real concern about whether companies will default? >> the question is whether it will trigger this.
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is the default? is it a hike in interest rate? is inflation? bat will the trigger point echo some people are concerned that there could be one canary in a coal mine kind of caught -- what will the trigger point b? some people are concerned that there could be one canary in a coal mine that could trigger some kind of default. some are concerned that if inflation is higher, at a higher pace than janet yellen is factoring in, then potentially there could be a problem with all asset prices. >> with this into concrete terms. what are firms like blackrock doing as a result? >> they put out a paper that says, we encourage regulators to look at this issue and even potentially consider measures, including fees, to prevent very large redemptions in stress per and other types of restrictions. -- other types of issues.
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>> restrictions, in other words. >> it did not say that, but it's clearly a concern. >> thank you very much. we are on the markets once again in 30 minutes. ♪ investing in the dark, new york's attorney general claims barclays dark cool deceived ordinary investors while catering to high-frequency traders. >> go pro goes public. the camera maker now want to position itself as a media company. we will talk with the ceo. let's jonret weapon stewart and stephen colbert come up with those hilarious video clips. we will be speaking to the ceo of snap feed.


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