Transcripts For BLOOMBERG Market Makers 20240622

Of its creditors, including the imf and the European Central bank did greece got a alone last week after parliament agreed on new austerity measures. In the meantime, great thanks reopened for the first time in three weeks,. There are still limits on withdrawals overseas. Merkel is suggesting that greece cant get limited debt relief. She ruled out a haircut on greek debt. A classic haircut of Debt Forgiveness of 30 cannot happen in the currency union. It may happen outside, but not within. Erik they may consider lower Interest Rates on greek debt but extending the time for repayment. The United Nations Security Council is expected to endorse the Iran Nuclear Deal today. It is to stop iran from Building Nuclear weapons and the United States and other world powers will gradually lift economic sanctions. Ashton carter travel to israel to reassure officials there about the iran deal. Carter acknowledged he will probably not be able to change anybodys mind. Obviously, we believe that the nuclear deal promotes the security in the region. The american strategy and also the defense of israel. But friends can disagree. Erik Benjamin Netanyahu says he will make his case against the deal to congress. He says iran got a dream deal that paves the way for them to build many nuclear weapons. Stephanie in new york city, it was a big quarter for Morgan Stanley. Trading and brokerage fees rose and the second quarter. Morgan stanley posted the biggest revenue increase among the six largest u. S. Banks. Earnings beat analyst estimates. The bank also reported record profit in Wealth Management for the fourth time in five quarters. Shares of Morgan Stanley have more than doubled in the last two and a half years. Now here is a slightly different story in nyc. Workers at fast food restaurants may be in line for a pay raise. According to the wall street journal, and Advisory Panel will recognize that the fast food minimum wage be raised to 15 per hour in the state labor commissioner is likely to agree. This is around new yorks current minimum wage rising to nine dollars the year. Let us take you to europe and the final round of the british open is underway. Today is monday. If you have golf enthusiast in your office calling in sick today, this is why. There is a threeway tie for first place. American superstar Jordan Spieth, 21 years old, is only one stroke behind. He has victories at the masters and u. S. Open to put them halfway to a grand slam. Tee off is little more than an hour from now. A big day in golf. Those your top headlines. Erik let us get you started with the five things you need to know this morning could number one is gold. Gold continues its dissent sliding to a fiveyear low. Investors are turning away from Precious Metals while the fed gets ready to raise Interest Rates for the First Time Since 2006. This continues to confound many because if the economy is good enough for the fed to start raising rates, should inflation be on the horizon . For nobody, it appears. Stephanie welcome to the proper system where we as a market are addicted to Central Bank Intervention and it really morphs market activity. Erik in some ways that are difficult to explain. Stephanie one might say a true believer of a French Market Central Market is for the banks to get out of the kitchen. Number 2 paypal is beginning trading today. Not a new company. This is a classic spinoff from ebay. The Company Makes its stock market debut with a market cap of 46. 6 billion. That is almost 1. 4 times that of ebay. This is one where in terms of ebay we may see that the emperor has no close. If you think about where ebay was five or six years ago to where it is today, the value of ebay i dont know. We may be about to see the end there. Erik this is a spinoff that makes potentially both ebay and paypal takeover targets. Stephanie let us get to julie hyman out in the newsroom. Julie i want to add something to paypal. The stock has been trading on an as issued basis. In terms of how it is good to be trading today, we have a good idea of how it is trading today because it was trading all last week as a tracking stock. 39 is where a close on friday. Just a reference for todays trade in paypal. We have Lockheed Martin agreed to buy sikorsky four 9 billion. With this deal, lockheed will extend its status as the largest defense contractor and wide in its lead over boeing in the United States. Lockheed shares are trading higher in the market on the back of the steel this deal. Erik number four is greece. Greek banks have reopened after three weeks. Elliott is back in athens. How significant is it that the greek banks have reopened. There are still some things that ranks greeks cannot do at those banks. Elliott on the surface, i suppose it is a confidence measure to give people a little bit of confidence to think that things might be returning to normal. I was at the doors of one vent this opened and they are only partly ajar. You are Still Limited and the amount of money you can take out. It is only 420 euros per week. You can deposit checks. You can access safety deposit boxes. The other thing that still remains closed as the athens stock exchange. We are told by brokers that it will probably reopen later this week. Stephanie are people going to actually deposit checks or actually cash them . How trusted are these banks right now for greek people . Emily i thinkelliott i think a lot of people may be paid with backdated checks. They will have to be able to go to those banks and deposit them. As long as that is coming from another part of the greek banking system, there is no problem that. The head of the great Banking Association once greek to put money back in the banks because it is likely to fall on deaf ears. Erik let us talk about this repayment greases making today to the imf and the ecb. Does that put greece back in Good Standing with its creditors . Elliott it means that it has not missed the payments to the European Central bank which would have been a disaster. This deadline was the reason that tsiopras made this deal with his counterparts. I think at the same time, making greases position with the imf enables the imf to take part in the discussions surrounding the third bailout for greece. It is not so significant that it has made the payment so much as the disaster that would have been indeed had it missed that payment. That meant that greece would been financed are the european bank. That is against the euro zone rules. They perhaps would have had to remain close. That would push greeks closer to the exit from the eurozone most profitably thats probably. Stephanie if you are a to risk going to greece today, what would you do during a . Bring a mass of water cash . Erik the taurus are not limited. Stephanie if i going to a coffee shop, does the proprietor have me cash to give me change . Erik this is going back two weeks, but it seems to have enough of a float. There were some select places refusing credit cards, siding dustsciting controls. Stephanie i have to take you to number five. More costcutting among banks. Barclays is said to be laying even more job cuts. They plan to shrink the workforce by a quarter over the coming years. Over at standard chartered, the ceo hester at its deputy of power. This move is winter more directive control and room to speed up cost cuts. I want to talk about that, but i want to bring in our own analyst. The company sought revenues rise with a jump in trading. Let us bring in Michael Moore who covers wall street banks. They have got to be running a victory lap. I feel like i sat on this desk watching Erik Schatzker interview james gorman. He said private wealth is where were going to lean into. He was the first to do it and everyone is following suit and it has paid off. Michael it has really paid off. They set another record for profit margins. They have step of the costcutting there. That has added quite a bit to the bottom line. Stephanie how big of a jump in trading when volatility and banks cannot take position to the doddfrank . Where are they seeing this big increase . Michael they are a bit of an outlier. They were the only one up on fixed income and equities trading. This is certainly an outlier on this. They did have a benefit from upgrading by movies in the quarter two notches. They were the only bank to have after i talked to the cfo saying that was helpful, but he did not want to put a number on how much it helped. They have been their own story of a little bit of a comeback story here because they continue to shrink the capital to the fixed income business. But they are of yeartoyear. Erik i do not want to rein on his parade, but this is on a comparative basis better than the quarter. Stephanie we forgot Debbie Downer is here. It is monday erik . Erik trading on equity still a challenge. Michael this was a fairly good quarter, but it does raise the question of what is it going to take to get to that target of 10 . Erik what is it going to take in terms of achievement, in terms of time . Do you get any sense from the firm on whether they will hit that 10 bogey . Michael they have taken the time element out of the target. It is partly dependent on capital returns. They stepped up their buybacks this quarter, but they need to continue to do that because they have Access Capital be on the minimums. Erik using back of envelope math if they hit the target or their goal for pretax profitability in the brokerage business of 25 margins they are currently at 22. Would that be enough to get them set 10 to get them to 10 . Michael they would be close but i think they need trading to pick up a little bit. Erik if you think about it, trading remains challenged in some areas could Investment Banking is as good a business right now for wall street as it can possibly get. Michael goldman is trying to make the case that it has upside from here. It is the best we have seen since 2007. Erik there are still tons of underwriting activity. They could be more underwriting activity, but tends have. Stephanie i cannot wait to see how these bankers get paid. They are having record years. A have got to be working around the clock thank her style. Yet, these banks are under huge pressure not to go back to the gogo days of massive bonuses. What are they going to do at the end of the year . Michael you have seen the ratio go down at Morgan Stanley. The revenue offsets can make it on an absolute basis that you are still love, but you are getting a smaller piece of the pocket the pie. Stephanie i think you are going to see the big divide again where the middle section gets squeezed. Erik Michael Moore, thank you for covering wall street for bloomberg. Stephanie when we return, paypal going public. What is next for the company now that it is separated from its former parent, the one and only ebay. You are watching Market Makers picku dont go. Dont go anywhere. Erik still ahead here, former pro golfer and fourtime pga tour winner will talk to us about the british open as it comes to a rain delayed close. At 9 30 a. M. Eastern time. Stephanie it is time to give you top stories. For the First Time Since 1960 one, the flag of cuba will fly over the embassy and washington, d. C. That flag is hanging in the state department. Officials put it up in the lobby alongside the flag of countries that the u. S. Has diplomatic relations with. The Cuban Embassy in the u. S. Is opening today. So is the u. S. Embassy in havana. For the second time in less than five years, a has filed for chapter 11 bankruptcy. It has been heard by walmarts entry into the grocery business and also by chains such as whole foods, who go after high and cyprus high and shoppers. It will sell about 120 of its stores for about 600 million. A new movie about 18 need tiny superhero was the Weekend Box Office winner. Antman open with 58 million in north america. It is the latest hit from a comic book character for disney and marvel. Minions im guessing you did not see either one. Erik i didnt. Stephanie everyone in my house saw minions even though it was terrible. Erik i want to talk about paypal. It has been trading on a limited basis. We know its market value of 47 billion. Emily chang is here with more. He spent quite a bit of time with ebay and paypal. Following the split, people are going to have to make a choice. They can keep both stocks. But they may find them selves wanted to make a choice. What do they like better the internet market place or paypal . Emily as of now, investors are showing a little more love for paypal. Paypal has been driving ebays growth for many years now. Having culture classes within. The spinoff is about time. Erik john donahoe, the former ceo of ebay. Emily the former ceo of ebay as of midnight on friday. The new ceo has a working at ebay for a long time and dan shulman is the new ceo of paypal. I spent a lot of time with donahoe and he said everyone was talking about paypal getting acquired. Alibaba and google would love to have it. Apple was thrown out there. John donahoe thinks, look, this company is going to remain independent. He is staying on as chairman of the board of paypal. Take a listen to what he told me. It is important that paypal does whatever it needs to to build a successful future. I think paypal will continue to be an independent company. Who knows how the markets will turn out . Emily at 47 billion, if a deal got done, it would be 5050. Payment are really complicated. Erik there is a lot of truth in payments being competent it could he is being complicated. He is doing what a chairman should do. We are doing fine and will continue to invest in our business. Emily i think there are a lot of regulatory issues. You think about a company like alibaba buying paypal our regulators going to like that . Google is fighting monopoly charges in europe. Doesnt want to fight another battle here . Erik when it comes to payments, there are a lot of competitions. Stephanie we are all out of time. Emily is going to join us in the 9 00 hour. Get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swifts music videos interviews, and more. Xfinity is the destination for all things taylor swift. Erik you knew it would be controversial. You knew he would be a unapologetic. But did you really expect Donald Trumps president ial campaign to keep this messy the same this messy this soon . Here is a man who spent time in the wash house white house. He happens to be a professor at Stanford University could at a certain point, i think we will Start Talking about the economy. Stephanie he has to talk politics first. Erik how many president s did you advise . One in office. That was george w. Bush. I certainly had a lot of contact with others, but one at a real substitute level. Erik would you say that your involvement with the Republican Party been with the republican establishment . Is that fair . Ed it is a number of candidates. The subject of your earlier comments would not be the establishment. When you are looking at people on the republican side, there are plenty of very able and establish candidates. This year is one where there really is an embarrassment of riches. There are many qualified people. The fact that you get an occasional random comment from someone even and establish candidate can make mistakes. This does not seem to be a mistake. Stephanie for the overall Republican Party, there are so many qualified candidates. Is there too much . Is it too messy . When you look at the pump can party, you can have someone like donald trump make the kind of comments he makes. Is it confusing for your average voter out there, saying, im sorry, what do they stand for . Who is the republican establishment at this point . His comments make somebody sitting in the middle makybe nervous. Ed i dont want to call them radical elements, but they are unusual elements. Democrat certainly have them like bernie sanders. When you think about Dennis Kucinich a few years back, there were all these people coming from wings who take unusual positions. I do not think it weakens the party. I think it strengthens the party. People see more serious candidates in contrast to those. Erik here is the question about strength and weakness. Why did it take donald trump insulting almost even slandering for the party to disown him, as opposed to is patently racist comments . Why would the party not circle the weapons wygant when it goes after mexicans . Stephanie is there not a grand who bought of the report can party grand poobah of the report can party to get this house in order . Ed you will put them party has individuals just like the democratic party. Candidates are positioning themselves for their own gains in this election. They have to win the nomination. There is no leader right now. Until that happens, youre not going to have the republican candidate taking stances on anything. I do not think you would see that happening at this stage. At some point, it might happen. Look, you guys do a superb job at going after candidates when they make crazy,. I do not think you need to see that from inside the party. The press is certainly able to do that and it doesnt quite well. It does it quite well. Erik youre absolutely right. Based on what you have heard which of the roof of can candidates republican candidates stands for an Economic Policy you can get behind . Ed most of them are quite similar on this. The republicans have a very program posture at this time. Pretty much all the. Stephanie did they not last time . Ed perhaps they did, but the candidate who eventually got chosen was not taken it at it. What he ended up doing was really dividing people instead of unifying people. That was not his intention. He would have probably been a good president , but he was not a good candidate. That was clear in retrospect. These former governors are very able and they are very experience. They know what theyre doing. My guess is they will move in a sensible direction and the problems programs theyre talking about our low taxes and a trade agenda for the most part. They are talking about getting the budget under control and talking about central regulation. Those are standard are standard republican mantras, but they are the ones that work in the long run. Stephanie given all the extreme republicans that do vote in the primaries, how hard is it for a candidate they could win a general election to make it through the primary, given who votes . And people always worry about that. You have really the relative moderate that lost in the general, but they were the ones that made it through the primary. The usual argument is that the Republican Party is to right wing, too polarized to select a centrist is just not accurate by historic standards. Mitt romney was certainly a centrist considered the other candidates. That would have been true of john mccain as well. When you look at this in terms of the history, you dont really see the republicans selecting out anybody on the wings. You do see it when youre talking about congress, particularly house of representatives. But even in the senate you see that sometimes very less so with the president ial level. Erik we will come back to this conversation. Stephanie im so glad you are here. Erik does not seem like im happy to have him here . A few headlines though, ed. Lockheed martin has agreed to buy the largest maker of military helicopters. 9 billion, lockheed is the Worlds Largest events contractor already. They are not going to focus on making jet engines, airconditioners, and elevators those three intimately related things. After three weeks, banks and greece reopened this morning. Crowds were lined up thanks once again providing routine Services Like checkcashing. There are limits on how much with drawers can take and money cannot be transferred abroad. Greece made more than 7 billion in debt payments to the imf and other creditors, including the ecb and german chancellor and glenn merkel suggested Angela Merkel suggested they could get relief. Angela merkel they were allowed voluntary debt cut and we extended credit terms of lower Interest Rates. We can consider such measures again as they are part of the mandate was the program has been reviewed successfully, we will discuss that very question. Erik she said one thing is definitely out of the question there will be no 30 to 40 haircut on greek debt. Erik unless stephanie in los angeles, Japanese Company apologized for using american prisoners of wars as slave labor. A former pow accepted the apology from the executives of mr. B she. Prisoners were forced to work under real conditions. The Online Dating site that specializes in adultery. They have had the worst possible thing happen to them they had been hacked. A Group Calling itself the impact team claims it has complete access are you listening, dull jurors adulterers . They claim to have Financial Information and the group says it will publish the data online. Tmz is salivating. Unless Ashley Madison agrees to close. Even the hackers want to keep their options open. I found this on reuters. The hackers also demanded the closure of another site the sugar daddies site established men. They didnt target the cougar lifecycle but which caters to women looking for young studs. They say ladies we still want you to find those 22yearold tennis pros but everyone else, your despicable and we are going to put your personal information out there. This one is a mind blower for me, eric is like im glad we dont have time left. I will send you out to julie hyman trade. Julie im very happy to change the subject. Lets look at the routing gold which is not seeing any signs of slowing down. Gold had the biggest intraday in two years, falling more than 4 before bouncing back, still trading around five year low. Joining me is todd horwitz, we are going to try to hit the futures trifecta again today oil, and the euro. We have to start with gold because of the route that weve seen. You are saying now is the time to buy. Maybe we are seeing a bottom in gold. Good morning. What we saw last night, gold was down almost 50 overnight before going back to the last i saw it was down about 20. This would be a classic blow off where traders and investors alike puked out. They couldnt take it anymore they dumped out their positions. Thats usually a great sign that you want to see buyers start to step back in because we have reached almost five year lows. I think were at a great level. We are way too wide compared to where the s p is, the difference between the two is its one of the greatest its been in the history. Gold itself looks to be a buy because we have all the bad news in the pushes prices down. I cant imagine there will be any more bad news that would help gold go lower. Julie you were talking more about some of the technical side of things. Are there fundamental reasons to buy gold here . Youre saying maybe theres not a reason to sell anymore, but fundamentally what would be supporting gold . If you look at gold come as a hard asset. Its a commodity i think everyone should own. Im not one of the guys who believes the gold is another currency class or a defender against the economy, in gold is a hard asset that typically appreciates in value like anything else. If you compare it to the s p, the s p is twice as much as gold is now, which is one of the largest discrepancies in history, which means we should be a divergence back into that and fundamentally, we have seen probably a low point here. There will be some accumulation with these lower places to help some of these companies out that are just getting slaughtered as we go forward. At that point i think its time to want to be a buyer because i think its a good hard asset to hold. Julie lets turn to the next asked that we are talking about, oil. Oil has been seeing declines, the iran agreement didnt help matters any. Where do you see crude going from here . I think crude will find a pretty good base around 50. When you look at the iran deal, with christ in. Weve seen a tremendous drop in a lot of the oil stocks halliburton has come down from 50 back to 40 again. Youve seen a major punishment down here. Those are sorting make bottom. Fundamentally, if this economy is going to be a good economy which ever but he keeps telling me how good it is, were going to have a demand for oil. Its not something we can live without. One of the good side is that the United States has enough of its own supply, is we go further iran is really nothing in this big picture. It was a news item. A reason for people to push it lower. I think they pushed it to the extent, about 50, think we move higher from here. Julie were going to have to leave euro for another time, were out of time. Todd horwitz, thank you. Joining us on chicago. Back to you. Stephanie thank you, julie. More with former chief economist at lazear. We talk about the fed and policy when we come back. Stephanie welcome back to Market Makers. Im Stephanie Ruhle with Erik Schatzker. Last week we heard from janet yellen how the fed would ideally like to raise rates. Janet yellen my preference would be to proceed to tighten in prudent and gradual manner. There are many reasons why i would like to be able to do that. I agree there is certainly risk to the recovery and the labor market of tightening to students, but there too soon but there are on the other side as well. Stephanie professor at lazear ed lazear is here. What do you make of her comments . Ed its the right thing to do. There are couple reasons you would keep rates low at a point in the economy. The first necessary condition is that the economy is still struggling. The second necessary condition is that fed policy is actually doing something to remedy that. Even if you believe that the economy is still struggling, and i think the data suggests that we are not recovering at a rapid pace yet. You still make the argument that we need help. Unfortunately, the fed has run out of gas. And janet knows that Everybody Knows that. I think their view is that we need to get back to normal times , in large part because we wont have the degrees of freedom in the future if we dont get rates back up to a normal level, there will be the ability to cut rates when we actually need to do that. Since is not doing my should use the economy right now, i think her view is that we ought to be moving back. I also know janet quite well personally, she was a professor of mine actually when i was a graduate student. Stephanie is she a tough professor . Ed no, shes wonderful. Very sensitive, very thoughtful. What is going to say is that only issue thoughtful, but she is prudent. The comments that she made youre not going to see this fed doing anything dramatic radical. Its for that reason that i actually dont the gets going to have much of an effect on markets. Stephanie she was a professor of yours. Ed once upon a time. Stephanie do you are great she gave you do you are ever what grade she gave you . Ed i dont. Stephanie thats important. Ed i did pretty well in grad school. Erik what happens if your right and the fed needs to raise rates to give itself a room in the event of a slowdown . But at the same time, theres nothing in the way of provost policy coming out of congress, thought happening because of gridlock. And the rest of the developed worlds economy is still flatlining. What is going to happen to American Growth between now and the election . Ed you already said whats going to happen, were going to can need to new were going to continue to mobile along. The 30 year average before the recession was 3. 1 . The growth rate during recovery should be higher than normal has been in the low twos. If you looking with the market is producing right now for the next four quarters, the market prediction is 2. 4 . Thats if you look at predictions based on the s p 500 and ask what is that telling you, its basically telling you about 2. 4 . Pretty much the same. Thats not bad, especially given some of the week numbers recently. Weve seen retail sales decline people are worried, things seem worse. It looks like the best production is not a whole lot worse, pretty much the same. But not great. Stephanie the labor markets look good. Its confusing when you look a retail sales, they continue to be kind of lousy. People said they were lousy because the weather was bad in the winter, the going to get better. Gas prices are low. The weather is better, labor markets are good, you still see sluggish pockets. It doesnt make a lot of sense. Ed it does, but its cap located. Stephanie no matter what i say he is like you are wrong. Ed the labor market is good but is not great. What a mean is that we should be looking at a number of jobs right now thats about 5 million higher than it is. The reason for that is that if you look at the population and you say how much growth do get just out of population growth alone, we are still short about 5 million. Erik we talk about growth being below trend. At 2. 5 , isnt going to be as good as where we came from with a longterm average of 3. 1. But if you somehow were able to remove or adjust Economic Growth in the 2000 because of unsustainable credit creation is it not possible that maybe the growth for that period would have been closer to the midtwos . Ed you could bring down to 2. 7 2. 8, thats possible. But everyperiod has booms and busts. If you limited all the booms, what is the average . If you eliminate all the booms, the average is low. But you should it limited the bus as well. Three is a potential rate jeb bush is pushing for percent growth. We will see if we can get there. We have had it in the past, its not unfeasible. Its certainly possible. Whether we will attain it is another issues. Erik always great to have you. Ed lazear, former chief economist for george w. Bush. And all around great guy. Stephanie i usually push our guests to tell me im wrong, everything will find. But he could stay forever. Erik paypal stand sherman will be with us at the opening bell. Stephanie get excited. Less than 40 minutes to the opening bell. Erik and i are here in bloombergs World Headquarters and we take you to julie hyman for a look at the analyst action this morning. We start with the facebook. Julie she is old school. Thats what it to be called back in the day. Both of these stocks closed at a record on friday, you can see both of them are higher. Facebook, the price target being raised 117 from 80, rich greenfield saying it has to do with the video advertising opportunity among other things very amazon is getting to upgrades to outperform, one from what bush, one from calendar. Wedbush wave names a lot of things we talk about, including faster than anticipated growth in Amazon Web Services as well as a better prime day even than the analyst their expected. Amazon prime doing well. The commentary a little interesting here, cowans analysts say week spent amazon to be the number one u. S. Retail apparel retailer. As an area amazon has been aggressively pushing into. Callan says it will overtake macys in the next couple of years. I wanted to look at brocade, this company is lower this morning it downloaded to a cell for neutral, they see reader trends weaker trends. Erik julie hyman with the latest analyst action. Stephanie thank you. Lets hear it for the boys. And no not talking about a revival of footloose, coming up the men of perry ellis are speaking with the two individuals at the top to find out how they are breathing new excitement right after new york mens fashion week in this timehonored brand. Perry ellis, what it means today. Erik what a great way to start this mornings most compelling images we call it picture this. Here is one you need to see. Stephanie this is amazing. Erik a surfing competition, the threetime World Champion fought off a potential shark attack punching the fish in the back and using his board as a shield. He wasnt hurt but he was rattled by the encounter. He said he would be ok never compete again. I dont blame him. Coming facetoface with a man eater under those circumstances stephanie Everyone Wants to call this a shark attack. He was in the sharks house. These guys are serving in the waters just off of south africa. We know these are shark infested waters. I just love the timing. As was yesterday, 12 hours before saturday night, my son competed in his first surf contest. On long beach island. Easily baby surfboards. I had everyone one wave their shark fins. As a guy in a shark costume. I really care about stopping shark fitting. Everyone cares about the ocean and ocean conservation, lets do this very and then 12 hours later when of the best servers in the world gets his leash chomped on the bottom of his board by a shark. I still want to say i dont consider this a shark attack. You are in their waters, these things happen. Erik we will be back in two minutes. Live from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and Stephanie Ruhle. Erik good morning. Welcome back. You are watching Market Makers. Im Erik Schatzker. Stephanie its our new time slot 8 00 to 10 00, you are with us. Im Stephanie Ruhle. Turn up the volume, we have an exclusive interview with paypals Ceo Dan Schulman. Before we get to that, heres a look at the top stories of the hour. The Iran Nuclear Deal goes up for a vote at the United Nations Security Council today. There will not be much suspense, Security Council is expected to approve the agreement, after that, the spotlight shifts to congress, which has 60 days to review agreements. Earlier on bloomberg tv, Eurasia Group president was asked how the vote on capitol hill was shaping up. Hillary clinton came out immediately in favor and she is going to drive a lot of democrats because they understand that this deal has to help get supported. The americans of the soul country the end of not supporting the deal, whether or not its a bad deal, all that means is the americans are not dealing with iran, everyone is. As a horrible situation for the u. S. To be in. Stephanie never without conflict in drama, israels Prime Minister Benjamin Netanyahu hates the iran deal. He says he will be making his position clear to congress. And no one on wall street did better than Morgan Stanley in the second quarter, trading and brokerage fees rose in quarter to and Morgan Stanley posted the biggest revenue increase among the six largest u. S. Banks. The bank also reported record profit in Wealth Management for the fourth time in five quarters. Shares of ms have more than doubled in the last 2. 5 years. Erik Renewable Energy fans theres a takeover day in the solar industry. Sun edison is buying another company at 2. 2 billion 52 higher than the Closing Price on friday. As you can see, no surprise, the stock is soaring. Stockholders will get more than half of their exchange and cass. In cash. In addition, they will acquire the rooftop solar portfolio for almost 1 billion. This lets sun edison expanding residential and can solar rooftops. Gold has been down 2 today, more in fact as analyst say there are several reasons. Among them, the Federal Reserve favors the dollar, plus there is less demand for gold in china. For the time being, those of the top headlines. Stephanie paypal makes their independent trading debut today from ebay. Can the company continue growth on its own . We bring in david ridder david is the spinoff the right move for both paypal and ebay . David certainly for paypal, three reasons. Number one, ebay is a relatively small contributor right now paypals volume, its down to only 20 . This gives paypal the ability to go out and Fund Acquisitions and Growth Without having to subsidize the slower growing ebay. And finally, i think they will be able to go out and signs emergence they couldnt when they were part erik who . David amazon, alibaba. Amazon is going to take some time, the going to have to offer them a significantly lower rate than they do for a lot of other websites. I think i was the volume opportunity would be tremendous. Stephanie what about regulatory concerns . Emily chang said alibaba at amazon, will the government really approve that . David we have an opportunity to grow organically. They dont have to necessarily go out and team up with a big company like amazon, why would be great. The interesting thing is their volume is only about 10 of online commerce in the u. S. Still. I think with a need to do is first do a better job of educating consumers about security and hacking you were talking earlier about another hacking incidents. Rather than having your card number stored all the separate websites, when i just pay with paypal . Erik who are im more intricate in knowing about paypals emerging competitors. We are today face where do they face legacy competitors . David their competition is primarily, as i said, competing against people just paying with their stored credit card numbers. That is something they need to address. Erik paypal lets you do that, but its becoming easier and easier thanks to digital wallet like apple pay. David correct. I think apple pay and things like that are certainly competition. But they are able to do is work directly with merchants so they went out and bought a Company Called braintree bit broth and that number account in the airbnb count the uber account and the airbnb count. Its also about adding services. If you listen to dan schulman they must figure aspirations and payments. They want to talk about being an indispensable part of what you do, not just something you use once in a while. I could see them going out for a bank charter so they can pay interest on deposits. Because right now if you hold a balance in your paypal account and earns no interest, which isnt a big deal now, but when Interest Rates go up its a big deal. Stephanie paypal could get a lot more interest in the company. Erik david, thanks. Stay with Bloomberg Television for the exclusive interview with paypal Ceo Dan Schulman. We will be back after this short break here on Market Makers. Stephanie welcome back to Market Makers, im Stephanie Ruhle. Working out has become a way of life, i myself have ample measure to workout challenge for our team here at bloomberg. And working out was the source of inspiration for the spring 2016 signature collection from perry ellis. A marquee runway show at the first ever new york mens fashion week. Joining us now on the sister sort event for the apparel industry is perry ellis creative director michael mccarty. Michael, walk us through the mindset behind why was there new york mens fashion week. When i look at your typical man, even amanda cares about fashion is a huge expense, and undertaking. How does that help anyones bottom line . Michael you have to look at your with successful Mens National weeks for line. For years. Its influenced what we do here. Its great for the economy in general. Its great for new york its great to put his back on the map in terms of the fashion capital. Erik does it make a difference . Can you move the locus of the mens fashion industry, at least temporarily, to new york . Are people paying that much attention . Michael i think they are. With men being more adjusted and fashion via social media, caring about their bodies were, working out more, celebrities wearing fashion and endorsing fashion lines at having their own lines and sells, i think were just hit with more and more. Erik just american designers. Is that necessarily a good thing . Why may get a regional affair as opposed to combining the best of americans mens fashions with the best of mens european fashion and presumably some asian designers as well . Michael everyone has their week, everyone has their time to show. I think it gives us the page in order to put new york back on the map. I think its important. Stephanie lets talk about where you want to be price point wise. At the high end, the tom ford the more wealthy mens customer will spend anything. You go down and theres been so this race to the bottom in terms of fast fashion and you see stores like j. Crew get completely whacked. Where do you want to be . Michael with the signature collection, we want to be a little bit above where we are with the main wholesale collection. We really need to conquer every level of the market. You need to conquer offprice you need to part conquer departments are level. Hed also add on the sugar on top, if you will. Erik your boss is down in florida, oscar. Stephanie oscar turned it out with that jacket. Hello. Erik how you trade every level of the market that way . Oscar we had to Service Every channel of distribution, and all demographics as well. Its important to be able to make the brand accessible, and michael with his signature line , we feel that theres a lot of opportunities to elevate the brand and offer the signature collection. Stephanie is there risk they saturate the market . One could say they are not sure who you are . Oscar as long to you keep the dna of the brands the consistent, there is a way to develop both the Department Store as well as the luxury, affordable luxury market, which is really the channel we are going after. We are not after the uber as you may, to grievously. Erik from a designers point of view, how challenging is that to be aspirational on one hand and his oscar just put it, accessible on the other . Michael im a product guy. I tried to really make the best of every, to every level. If those hidden details at the lower end on your basics that really make you want to buy that item. At the higher end, its a different product. It just a different product in a does layer into our brand dna. Stephanie oscar, you are callaway, jack nicholas, and pga pro, to womens lines. What is the big boom weve seen in the last year, in the last six months with pro golf done for you . The british open wrapping up with young superstar Jordan Spieth. What does that mean for your business . Author golf apparel has been growing, different than the hard good side when youve seen too Much Technology brought to the market too quick. Apparel continues to grow boosting the at leisure market activewear growing. Golf represents 20 of the total revenues, and we still see tremendous opportunity in the market as more and more men look at mens golf lifestyle as an opportunity that they can wear to work and where to work on a golf course. Stephanie gentlemen, thank you. Oscar joining us from miami, and perry ellis crate of director michael mccarty. Erik paypal Ceo Dan Schulman emily chang is speaking to him. Emily, what can we expect from dan . Emily dan schulman talking about democratizing payment around the world, he thinks payments are at an inflection point, but a lot of competition out there from apple, google, potentially facebook. My excuse of interview with dan schulman coming up after the market opens. Erik tomorrow is the deadline for congress and the Labor Department on his proposed best interest rule for Financial Advisors. It would require for people to put their clients interests ahead of their own. The Security Industry has been saying these regulations or propose relations wouldnt be as helpful harmless as it might appear to some. The president and ceo ken benson want you to get your comments in, thats why he is on Market Makers, this morning. I will give you an opportunity to reiterate. On the surface, it looks easy. Why wouldnt i want my broker or Financial Advisor to put my interests ahead of his or hers it seems simple. The interest has long supported a best interest standard one brokers dividing personalized Investment Advice. We supported before congress voted into the doddfrank act. The problem here is not about the best interest standard, its about all the other conditionality is, prescriptions, and regular to the apartment of labor is putting in this proposal that we believe at the end of the day are going to cost many investors more money and is going to cut a large number of investors out of access to needed information. Stephanie break that down for us. How exactly . Is not the best interest of the right themselves. We think the definition of it is good. We dont think they are the right ones to do it. We think the sec should be doing this. But its all the rules of they put on top of their best interest standard that the firms would be required to adopt, the new private right of action on top of an existing private right of action, new liability. And the confusion that would cause between different times of accounts, retirement nonretirement account you might have. What our members tell us is that in most cases, a migration of brokerage accounts, which most people choose, which are more efficient from a cost perspective, into feebased accounts. Feebased accounts are higher touch, higher cost accounts. Thats what all these rules are going to force most firms to migrate those accounts. People will be paying more. The other problem is feebased accounts usually have a cut off at about 50,000 per year. So lower acidbase accounts will make the cut. It will be left with really no access to information. Erik land economics is good for a broker providing commissionbased Services Operating under fiduciary standards . In the case of a broker that providing commissionbased for abide hold account, they are getting paid on one or two, or if you number of transactions as they occur, where is on a feebased account, it will be multiple transactions because youre operating under different investment objective. We are filing a story that we commissioned from Economic Consulting firm that looked at tens of thousands of feebased and brokerage commissions account. But they found in terms of trades is out average Commission Accounts trade about six times a year. Feebased accounts trade about 57 times a year. Thats because the investment objective of whats going on. Erik you dont have an issue with the fiduciary standard. No. Erik i know for a fact that many of your members do have an issue. If they wanted a fiduciary standard, you would be jumping up and down the stable thing please, the sec, wade into this debate and adopt and demand a uniform is your standard. Stephanie i tend not to agree with him, but hes right on this one. We came out for a fiduciary standard before he came part of doddfrank, what was being considered in the house for five years ago since his an active. We have written to the sec numerous times telling us telling them we should put in place. And we explain how they could do it. Just a few weeks ago we took that we have written to the sec a step further and laid out in language what we think a best interest standard would look like and how it would operate. I think its hard to say that the industry hasnt been in favor of this. Keep in mind, most of our members provide both. Stephanie i have to jump in. We have breaking news. Madison to the newsroom, vonnie quinn has more. Bonnie the salmon color, for people familiar with the matter turning out possible bidders may keep the fc. We will keep you posted on this story. Stephanie erik breaking news there. We will to quick break here on Market Makers. Erik we are back with ken bentsen talking about a fiduciary standard for Financial Advisors. The idea is that your brokers would put your ideas and your interest. The Labor Department is trying to impose a fiduciary standard and a partial one. Here is what i want to know. If you were successful in preventing the Labor Department from going ahead with its partial application of the fiduciary standard would you turn around and say we unreservedly support a fully applied fiduciary standard for all Financial Advisors . There were not subsequently be the similarly seemingly endless quarreling with the fcc. Ken we have done so for the last five or six years. We have written to the congress and fcc. We have told the Labor Department that the sec is the primary agency that should be writing this. We absolutely think there should be a uniform standard of care for providing Investment Advice for all retail accounts. Erik this is one other thing that can get the ball over the hump. Stephanie ball over the hu mp . Erik why dont we hear from Merrill Lynch on this issue . We dont. They are conspicuously silent. Ken im not going to speak for any individual member of mine. I will say they are outstanding members and simfa and have been actively engaged in this process. If you talk to them, they will tell you where they stand. Erik they are wholeheartedly in support of the uniform fiduciary standard. Our remember having this argument with charlie johnson. They are not. Ken im not going to speak for an individual member come but i work for my members. Erik they have given you that mandate. Great having you. An important issue. Stephanie thank you. Erik stephanie is tired of it. Im not good stephanie . Stephanie the one day im not feeling argumentative. We are a few minutes from the opening bell right here in the u. S. Let us bring in tasty Tracy Alawite here are the three things moving market. Also here with us is the global manager of oppenheimer funds. Tracy, numeral no. Tracy youre not tired of talking about gold . Stephanie of course not. Tracy we had gold bugs being squished. We had a big drop in global gold prices when we were getting ready for bed. The big question is who is selling . We had 1 billion worth of gold sold and possibly saying hey in shanghai with a few minutes. This was the first opportunity for chinese investors to trade that information. It seems like a concerted move downward. Erik do you know who is selling old . Im not a gold expert, but there are things that lineup purposely in terms of this. You had relief from immediate greek exit. You had the iranian deal which removes geopolitical terrorists. You had a strong dollar last week. And you are, as you mentioned, at very close important technical levels. Combined with the chinese headlines n. B. First opportunities on sunday night after an intense week of events for gold purposes, a little bit of selling really move this price action very quickly. This was an important technical level. It probably took very little to trigger a big price move. Tracy number 2 the good news is that greek angst have reopened. The bad news is that they have to deal with stuff like this. Let us bring up the chart of nonperforming loans at the greek banks. The ratio of npls is 34 . A lot of people think that is lower than it might be had we not seeing capital controls and had we not had all this talk about capital controls. The theory is that they depositors in greece instead of risking a haircut on the deposits use their deposits to pay down their debt and their loans. That ratio is something we need to watch once the greek inks are back open to see if it moves higher. If it moves higher, theres still plenty of payment and the greek system. Erik you talked about tailwinds in the context of gold and the nuclear deal. How about greece . Much of the holdings are in the balance sheet. If there is a time to handle a greek exit it can only be when you are doing massive scale qb. You have already set up these emergency funds. And then, we also have this perennial ghost encased any country in case any country needs actual assistance, then these mechanisms are in place. This is the first time where every single European Institution is really a lined an onboard to do whatever it takes in case of an greek exit. I do not think this is 2010 or 2011. This has told us that for the last two weeks. Tracy number 3 this is options written on credit indices. Stephanie oh my gosh wild and crazy. I love it. Tracy we all know that this has shrunk. At the same time, and a lot of big investors are using indices to trade corporate credit. A bunch of those investors are also using options written on these indices. It is good leverage and a good way to that against the big blowup. Stephanie my husband trade them. Tracy the data is really difficult to get on these. Back in 2005, citigroup said there was 24 billion of these options written on these indices. Now, it is the least at least 950 billion and a quarter. That is Phenomenal Growth and what are essentially derivatives of derivatives. The reason i bring this up is that barclays published a note saying that the popularity is so big that it is affecting indices. Tracy derivatives of derivatives. Stephanie the popularity is so big what does is make me feel like . At 2007 and 2008 is knocking on my door. It sounds scary. Alessio it could be, but obviously dealers are mandated to the Market Neutral and not have exposures of their own. They are compounding with the of real Money Managers or hedge funds. In their quest to be truly Market Neutral it should mitigate the scale of the problem in case volatility will flare up. But what it does reveal is a situation you have a similar situation in currency markets where you also have derivatives on forwards and things like that. You may see an increase in volatility as a result of the delta hedging the process by which dealers need to offset the resulting exposures. That can create some intraday volatility. Buying and selling activity is random. Erik im presuming that these options are Exchange Traded options . Tracy im not sure. I do know that they are not cleared. Erik should we feel better about them . If they are not centrally cleared, im not sure we should feel better at all. Alessio it is a case of deal is managing their exposures. Dealers managing their exposures. You are spreading out your counterparty risks and that would be important of how each firm has to do with its own. Stephanie less and less dealers trade the product. Tracy good point. I love that we started monday talking about delta hedging. Stephanie we keep it nerdy up in here at bloomberg. No one else does it better. Erik tracy, thank you very much. A terrific readings to watch. Tracy alloway and executive editor , and executive editor. Alessio is still here. Are we taking a break are continuing our conversation . Tracy we are asking our producers. Stephanie are re good . I clarified so im going to ask. We talked about the top three things that matters to tracy. What matters to you right now . Alessio it is actually a fairly quiet environment. I think what matters most to me is this renewed cycle of dollar strength. Not only because it is a view that i share but i would like to see it play out. It is always excessive fast, and deep dollar moves trigger the mechanisms for the fed to be dovish and take it back. That could pollute the trading for the rest of the year. Erik very quickly what is what is happening in china mean to you . Alessio that much at this stage. We are not involved in this chinese extravaganza that we have seen for the last few weeks. It is because the chinese equity market is continually disconnected from the economy. That is a real warning flag for us both on the way up and all the way down. For a fundamentally driven process like ours, it is a red flag telling us not to get involved. You can play that game, but with very big stocks. The best way to trade in the chinese bear remains outside of china. It remains in commodities, the australian dollar, the new zealand dollar. Net exports are still posting disastrous performances in the whole region. Without global trade picking up, theres not much in equities and asia. Erik great seeing you. Alessio thank you. Stephanie were going to take a break. Our exclusive interview with paypal ceo dan shulman said his plans on growing the company even bigger. We will have that next. Our partner emily chang sitting down exclusively. Dont miss it. Erik paypal is trading on the nasdaq. Its officially an independent company with a market value of almost 50 billion. Emily chang is down at the nasdaq, sitting with paypal ceo dan shulman. Emily paypal has been public now for five minutes. Congratulations. Shares already rising. What is the number one advantage you have right now that you did not have on friday . Dan first of all, thanks for having me. I really appreciate that. Its a very exciting day for us. Being an independent Company Changes some things, but not others. The thing that we will always focused on is how we innovate for our customers going forward. Being an independent company allows us to be a true neutral third party. We are the largest Digital Payments platform, maybe in the world. By being neutral, it allows us to partner with retailers and others that maybe we could not have when we were a part of ebay. Being truly neutral and focused on customers is a huge advantage. Emily lets talk about that. You work with apple and google, but you also compete against apple and google. Apple has apple pay and google has a flood pay. What is the biggest value that paypal has a mobile in mobile . Dan we are truly in agnostic platform. In other words, we integrate for merchants any payment type for them not just a paypal digital wallet, which has 169 million customers across the world. We will also integrate apple pay into that or other forms of payment as well. We really want to be a full Services Payments partner for merchants. Being Technology Agnostic operating system agnostic is a competitive advantage. Emily apple pay has some many credit cards and so many users signed up. How do you compete with that . Dan paypal has been around for 15 years. We have had competition throughout 15 years from the time we were 12 years ago acquired by ebay with a couple of million customers. Competition year in and year out. I focusing on the needs of customers and the points that they have, whether they be consumers or merchants, and innovating around that, we have grown to be 169 million customers across the world. Last year, we processed 4 billion transactions and we partner with a lot of people. In fact, when apple pay announced over half of the partners that were part of apple pay integrated through the paypal platform. Emily lets talk about facebook. The guy who used to run paypal is now running facebook. What about facebook and other Messenger Services that could try to get a cut of what you are taking now . Dan paypal is the Worlds Largest peertopeer platform. One of our services is venmo and it is growing by leaps and bounds. It is the way that the millennial generation manages and lose money. Moves money. It is a way to move money inexpensively and we can partner with anyone at the different platforms out there to help them do that. Emily do you think you will partner with facebook . Dan i think in our future there will definitely be a lot of partnerships with Technology Companies going forward. If you think about it, we have 17 house of people across the world and all we do is focus on Digital Payments. They have platform advantages. We have platform advantages. Potentially bring those two platforms together in partnership to create a very powerful propositions for consumers. Emily what is it like working with carl icahn as a shareholder . Dan we have shareholders across the world right now as you can see from our early trading. There is a lot of interest in paypal. I think what we really want to focus on is creating a great Company Going Forward Focus on customers, focus on what customers need. If we can do that, hopefully it will be a great investment for all shareholders. Emily what about carl specifically . Have you specifically talk . Ed . Dan we have not specifically talk. I have been on a roadshow talking to investors right now getting their feedback, learning what they expect from us what Growth Opportunities they have for us. It has been tremendously valuable for both parties. Emily are you worried about potential . Dan not really. They all want great value to be delivered for customers. As long as we stay focused on that that is a great thing for us to do. Emily and a lot of people talk about paypal as an acquisition target now that it is separate from ebay. Alibaba and google would love to buy it. What do you think will happen . Dan devon is going to lead a fantastic company there. We were set up to really capitalize on the changing chessboard that is going on in Digital Payments right now. We think we have tremendous opportunity. Our Addressable Market now could be as large as 25 trillion. Again, focusing on that and delivering value to those customers will deliver value as an independent company to shareholders. We are very focused on that. Emily you see paypal as an independent company . Dan id. Dan dan i do. Emily lets talk about acquisitions. You bought braintree years ago. What other acquisitions might we see and what areas are you looking at . Dan we look at opportunities both organically and through potentially using our balance sheet. We have a very strong balance sheet. We launched as an independent Public Company with no debt and 6. 6 billion of cash on a balance sheet. That is a stupendous weapon for us. We did our first announcement of an acquisition which allows us to get into the international market. That is a 600 billion market that i think is right for destruction. There are ways to make it simpler easier, and more affordable for consumers to send money back home to people that they love and care for. And so we think about doing organic Homegrown Solutions like one touch and expanding our buyer protections and looking across the payment spectrum for potential companies to acquire. Emily some critics say that paypal has innovated by acquisition. And that there is not a lot of innovation from within. How do you respond to that . Dan look at what we announced on her Earnings Call a couple days ago. We announced our expansion of one touched, the biggest improvement in the checkout experience in the past five years. That was started with our braintree platform. But it quickly expanded to the rest of the paypal payment flows. We could not have done that if we had not upgraded our payment platform within paypal significantly. We spent the last couple of years upgrading our payments platform, upgrading our technology staff, and we can out innovate what used to take us months and months we can do in days and sometimes minutes. Emily most Important International market for you . Dan we have half of our revenues from overseas right now. We are fully a global company. But if you look at every single region across the company for us now, they are all growing strongly. So we have tremendous opportunity to look both overseas and within north america for future growth. Emily any in particular . Dan top that we want to announce. Emily dan shulman, thank you so much for having us. Erik thank you. The paypal ceo, dan shulman. Much more coverage coming up with emily chang today. In sports, about 30 minutes ago, Jordan Spieth took another tentative step towards greatness. He teed off at the british open attempting to become the first player to win golf modern version of the grand slam. He captured the masters in april and the u. S. Open last month. If you wince on this course, he will only need a pga championship to complete the historic feat. With us now is notah. Are you willing to gauge his chances of winning the british open . Notah i can. He has a lot of momentum. The way to evaluate is not how good their golf is, but how is there bad golf. If they have a bad round, which is horrible for a professional golfer to have in one particular round, he comes back and puts himself right into contention. He is the one who will be in the driver seat if he can sort of a race that deficit in the first three or four holes. Look for him to take the lead and take control of the event. Stephanie tiger is an oldschool pal of years. Compare Jordan Spieth to tiger woods. Notah theyre very similar. In fact, i would say that Jordan Spieth in his age right now of 21 coming up on his 22nd birthday, is probably a little bit more consistent than tiger was at that age. Tiger was still going through eight few tweaks a few tweaks with his short game either that have phenomenal 1997 masters performance with the alltime scoring record. Jordan tied that record this year and went on to win the next major and put himself in a remarkable decision to create new history and be the third youngest player to win the open championship at st. Andrews. It is just setting a new precedent for golfers that want to get into the game. It has been fun to watch. Stephanie can you compare his game to others who have won the british open . Is Saint Andrews a special experience like winning at augustine here . Notah i would say it is. As history goes deeper, if Jordan Spieth is able to win today, he would be the youngest champion since 1900. You would have to go to 1893 to find some of the younger to win the british open championship. The list of champions who have one at st. Andrews you go to jack make lists and tiger woods and nick faldo. Alltime hall of famers. The type of venue let us not forget bobby jones in 1927. The type of venue and the history and presents brings out the elite of the elite in terms of the players who are able to go there and perform and really take in all the rich history that venue provides to golf into the prayers best players and to the players themselves. Erik what does it mean if Jordan Spieth were to win eight grand slam a grand slam . Notah i think it would be remarkable for the game. So many people were wondering what would happen after the tiger woods error. A. We went through such a growth period in our game from purses to corporate involvement. We had so many more people wanting to be part of our game. There were a a lot of question marks around what will be this next transition after tiger woods sort of rides off into the sunset. Now we have got Jordan Spieth. You have rory mcilroy. Yet three players with its immense amount of talent on the golf course. But an ability to mobilize that talent and capture some of these corporate opportunities. Under armour has made a huge play with Jordan Spieth. Before he had won the masters, some people think that they renegotiated that deal after he won the masters. But in fact, they did it early in the urine even before they knew he was even going to have this type of year. They made a huge debt on Jordan Spieth, as did nike a few years ago in there hundred Million Dollar deal with rory mcilroy. Those guys are in a league company. Stephanie what does it mean that this young boy calledpaul dunn is out today . You can get a sponsorship he cant get a sponsorship. Notah some players get a box of close with no return address on it. The rules have changed and players can wear it used to be a long time ago that you cannot wear any clothing that had any corporate sponsor or logos on it. But now the rules have changed. You will see a lot of the younger players that have college ties or prior relationships. Stephanie the fact that this young boy would not choose nike what does it say about the tiger woods era . They have really and they have tiger. Notah i think it says that these Young Players are not following the trends just on the course, but on the apparel side as well. They tried to find companies that fit their personality. They have a live choices now. Nike and adidas and now under armour who is now new in the game. Erik we have to leave it there. That does it for Market Makers. Good morning. It is 10 00 a. M. In new york city. It is 5 00 p. M. In athens. Erik youre watching bloomberg market day pickup. Olivia were looking at the biggest risks in 2015. Erik the u. S. Embassy today is open and washington. Olivia look at this video. A pro surfer wrestling a shark on live television. What an end to shark week. Olivia good morning. Im olivia sterns. Erik im Erik Schatzker. It is 10 00 in new york city. Let us show you what is happening in financial markets. Not a big day in stocks. Stocks are pretty much flatlining this morning. There are individual stocks