vimarsana.com

Transcripts For BLOOMBERG Bloomberg Bottom Line 20140625

Card image cap

Headlines today. In washington with the food inflation conduct food inflation report, greg storz and paul sweeney are in new york as the high court dealt what may be a fatal blow to area arielle aereo. The Supreme Court decided today that theyve violated broadcasting copyright laws by taking the signals for free. The justices ruled against the barry diller backed internet startup. A triumph for broadcast , nbc,ies, including abc and cbs, who said that they were threatening the underpinnings of the industry by selling the programming online without licensing fees. Aereo sought to give consumers a new way to watch broadcast tv would do without urges and packages. Customers in 11 cities have been able to watch live and recorded broadcast programs or as little as eight dollars per month. In a statement after the decision the ceo said that the decision by the Supreme Court is a massive set act for the american consumer. He continued that they would continue to fight for their consumers and fight to create Innovative Technologies that have a meaningful and positive impact on the world. Lets get to the round table. Greg is live outside the u. S. Supreme court. Whitney in new york, paul sweeney. Gentlemen, thank you so much. Greg, in his majority opinion today Justice Breyer wrote the following the area of system is, for all practical system aereo system is, for all practical purposes, identical to a cable system. He said the Cable Systems must pay royalties to broadcast companies because they, under the 1976 copyright act, it was amended to make sure they were covered. He said that essentially all they are doing is taking the signal and running it through a wire to the customers and it does not matter that the customers get it through these independent would individual antennas that get it around copyright protections. What is the significance of the vote . It is a ringing endorsement for the value of rod castello vision copyright. Tv stocks today are up across the board, particularly the local broadcast stations that really depend upon rebroadcast retransmission fees. A ringing endorsement for the copyright value of broadcast signals. If it smaller decisions, had been 54, would we be reading something into that . Xml think so. I think there was a pretty clearcut case here for the copyright issue. It was a very simple case of copyright law. If you are aereo, you looked at the copyright law and you thought you found a loophole and they tried to thread the needle to create a system that would ipass the paytv operators. In his dissent, Justice Scalia wrote that congress should decide whether federal copyright law, in his words, needs enough grade. Is this something that lawmakers might take up . Its possible they could, but he was talking about ruling for aereo on this point, he would have done two things let the broadcasters make another argument in the lower court and he said that if they lost that and if this really is such a calamity, then they could turn to congress because congress is better suited than the courts to determine these matters. The 63 ruling, greg, let me go back to that, you are our expert there, i will pose the same question to you that i posed to paul, what is the significance of the split . I dont think that there is a lot of air in this opinion for aereo. The fact that they got three votes, at the end of the day they lost the game. Like a sporting event where the other team scores more points. The only thing at the end of the day that matters is winning or losing and the Supreme Court that pretty clearly that the way that they understand the technology, it is violating broadcaster copyrights. Paul, you spoke about local broadcasters. Talk more about the significance of this to them. Until five or six years ago, those broadcasters only had one revenue stream, but now they have been able to go to cable and satellite operators and say that you are paying retransmission fees for cable networks. Our broadcast networks are more valuable and have bigger audiences, you should be paying us, too. Or five yearsfour the broadcast television stations have started to get that second revenue stream, which has been a shot in the arm for the economics of the tv business, fueling a tremendous amount of m a over the last couple of years. It is a critical aspect of the growth story. Who is the loser . Cable operators. They have to pay for these broadcast retransmission fees. If you are a cable operator, your largest expense is the programming fees that you pay to the broadcasters. Those are going up 10 per year if you are a cable operator and now you have no relief from the court. Greg, when these arguments were made in april, some of the justices expressed concern that a ruling for the broadcasters could adversely affect cloud computing. How would such a ruling have called that into russian into question . Cloud computing, much like aereo, have things that could be deemed copies of copyright material. Today the Supreme Court said that they are not going anywhere near that issue. Another potential difference is that those might he, say, songs that i have bought and paid for. In this case nobody had paid the broadcasters any fees for the right to view their content. Paul, since this hinged on the copyright argument, do we take from this ruling today that the Supreme Court said wasnitively that what aereo doing was illegal . I think so. I think they took a very narrow view of copyright law, specifically as it relates to broadcast copyright, as opposed to taking a broader expanse with Something Like cloud computing, which is becoming a bigger and bigger issue as more and more people put their content in the cloud, the court chose not to look at it in a broad scope. Focuse to exclusive exclusively on what it means for that value. Speaking a broadcasters, lets talk about sports. What does this mean for the National Football league, for example . They are very happy about this. They supported the broadcasters. Among other things they said that the argument from aereo would not have only let them show me the local game in washington on my local station, but it would have let me see signals from san francisco, it would have really undermined their copyright. The leagues got exactly what they wanted today, second perhaps only to the broadcasters , they are very happy. Paul sweeney, last word, what does this mean for the future of television . Status quo for the short to intermediate term. Everyone is getting paid here. Companies are getting paid. Broadcasters are getting paid. They are able to license to new players. The economics of the Entertainment Media business are very much intact. This ruling just supports the media ecosystem. All sweeney and our Supreme Court reporter, greg store, outside the high court talking decision. Aereo more on that coming up at the top of the hour on street smart. Reed hunt will join Tricia Reagan at 3 p. M. Washington time from our bureau in d. C. Stay with bloomberg for that interview. Coming up, the u. S. Economy sees a sharp pullback since the beginning of the recession, but investors dont seem to be worried. We will tell you why in just a moment. Flawless war,a but i dont hesitate to defend what we did. With respect to whether or not we did the right thing going into iraq, i believe it. Different people have different views. That was former president dick cheney former Vice President dick cheney, speaking to charlie rose tonight. You can see it right here at 8 p. M. And 10 p. M. New york time. Iraqi forces are fighting sunni militants over control of the key refinery north of baghdad. Iraqi helicopters are monitoring the refinery for protection. Iraqi warplanes shelled residential areas near the oil refinery. Tophe meantime, some of the names in business and politics are in different are there for the clinton global summit. An exclusive interview with former president bill clinton, here is his take on the minimum wage. Research indicates that if the minimumkeep wage at roughly half the median, you can get the best of both worlds. You could give people enough money to live on, adding economic growth, because people without the money to save, they circulate it in the economy, it turns over and contributes to growth. That is important. We will have extensive coverage from the Clinton Global Initiative in denver throughout the day. Coming up i will speak with the male of the host city, michael hancock, at 2 30 p. M. New york time here on Bloomberg Television. The u. S. Economy shrank in the First Quarter of 2013. Gdp fell 2. 9 , the biggest contraction since the death of the last recession. Me s. Economist joins laura, welcome to bottom line. Good to see you. Thank you, mark. That afternoon. The markets seemed to shrug off this news today. Why were investors not worried . One reason investors might not want to be too worried is that so far we are really getting off to a very solid start in q2. It looks like it is going to be a very solid quarter for growth. We are looking for at least 3. 5 at an annual rate, which would be quite a good performance. We also know that q1 was disrupted by weather, which played a large role. It was not the only factor, but it did play a large role in depressing activity. Mohamed elerian wrote the following today while the economy has resumed many of its normal functions, the recovery is only tentative. It is in fact still healing, an economy that can walk and do so more briskly than his european counterpart, but the u. S. Economy cannot run fast and long yet. Are you about this three percent drop in firstquarter gdp . That the sharp drop masks a few trends in the data that are worrisome. Is theone, what sustainable rate of Consumer Spending growth . The biggest factor behind the downward revision today was Health Care Spending that was a lot lower than people estimated. But overall spending was just a lot lower. There was less spending than they assumed, which raises some questions about what the sustainable pace of spending will be in the Second Quarter. I would agree i would agree with that columnist. Maybe two percent Consumer Spending growth is a decent performance that we should be expecting Going Forward. Business orders for neck for new equipment are near record levels. Will that translate into a pickup in Consumer Spending . That is a good question. We had sort of mixed news in the durable goods orders report today. I think that we are looking for an expansion in Business Investment in coming quarters, but not really an out rate year. We are not going to see a wave of acceleration that will really kick the economy into overdrive. I think we are going to continue to chug along. Closer to three percent rather than above three percent. People were estimating growth as close to two percent for the year. Todays number definitely puts risk around those figures. Laura, the violence in iraq is affecting the energy markets. If the situation there gets worse and there is us i can oil prices, how might that affect growth in the u. S. For the remainder of the year ashen mark another really good question. Already seen higher gasoline prices in the first and Second Quarter. That will take a toll on Consumer Spending. Wagetually saw a real growth accelerate over recent quarters because inflation has been low. Now inflation is rising but nominal wages are not picking up. That means that inflation is going to eat into consumer purchasing power, which will likely lead to slightly slower Consumer Spending growth, which could have an impact on the entire economy. It seems that a lot of people are concluding that the firstquarter weakness was due to the weather with the weather with the harsh winter here in the northeast and united states, but overall todays gdp news, will it force the fed to delay monthly tapering . I think of the fed will continue with tapering. It was a disappointment, firstquarter growth, but again, Second Quarter looks like we will have a pretty solid rebound in the Second Quarter and the economy is continuing to make progress. We are seeing the labor market continued to improve. Everyone would like that improvement to be happening more rapidly. That we have seen some steady progress and that i itself should allow the fed to finally winds down its urges his. I think that that is an open question with regard to its other Monetary Policy tool, interest rates. What will this this appointment mean for potential rate hikes later on . Right now we are still looking for the fed to normalize starting in q3, but that is all contingent on the economys performance. Laura, joining me from her firms offices in manhattan. Pleasure to have you on the broadcast, thank you for your time. Thank you so much. Thank you. Coming up, the fbi ramps up its campaign against financial crime. Highlights from the exclusive interview from the fbi director when we continue in a moment. Insider trading is not just a problem on wall street, it could be a problem in washington, two. Prosecutorss are investigating whether capitol hill staffers may have improperly passed on information about upcoming legislation to analyst hired to keep an i and what congress is up to. They call it a lyrical intelligence. Erik schatzker spoke with the fbi assistant director about that. Here is a portion of his exclusive interview. We see a number of examples in washington about the use of political intelligence. How dangerous is the practice of political intelligence, in your mind . It is an area of concern. To say it is dangerous . It is an area we are looking at. Area, isnt it . It is an area where influences being pedaled . It could eat, it could not be. It is an area where there is potential there for that to happen. Potential for what, though . For insider information. Certainly laws that are passed could affect businesses. That could be great information for someone to have an information to invest in a Certain Company that may benefit from those laws. That is just another gray area potential for having fraud involved in. To say, when it comes to whitecollar criminals, they are creative. They are always at the edge. Then is question who is cooperating with them . That is our job to find out. Will be see a lawmaker go to jail . I could tell you if a lawmaker is involved in illegal Insider Trading type activities, yeah, they should go to jail. If that is happening. That was Erik Schatzker his exclusive interview with the fbi assistant director. You can find much more of the interview on our website or mobile apps. We are coming up on 26 minutes past the hour, meaning that Bloomberg Television is on the markets. Before we get to that, breaking news. It is about california, we are receiving word that the state three from a aa minus, saying that the outlook is stable at moodys. They say that it reflects the states rapidly improving financial position and robust employment growth. The action affects 86 billion in outstanding debt. Time for our on the markets segment. Julie . Lets take a look at where stocks are trading right now. Of course, we had worse an estimated economic ada this morning. Gdp, durable goods, investors seem to be shrugging that off. The s p 500 is up at the highs of the session. The nasdaq was leading gains, 6 10 of one percent. Looking at the individual movers that we are watching today, lets take a look at what we have got there. We are talking about yelp, teaming up with online food ,rdering sites, each street allowing customers to order from thousands more of their restaurants in their key markets, including new york, chicago, and iowa city. Minutes, more bottom line is next. Joining me now from washington, alan, how coyote how high the prices go . What is driving this should mark rexx today the u. S. Department of agriculture raised its forecast this year for fresh fruits and vegetables, as well as dairy. It could go up three times the fed inflation target. It is a concern to some consumers. That is the healthy food, the stuff you want to be feeding your children to round out the hot dogs and beer is you are having all summer. Bit much. Todays increase was on top of a rise in the rices. What is happening there . Of thecontinued affect loss of size you have seen over tight markets in the last few thes with problems with porcine epidemic diarrhea virus. You have a lot going on with this. Yesterday i was speaking of the speaking with Paul Grimwood and he had a little bit to talk about with food inflation and how it affects their supply chain. This is what he had to say. We are definitely seeing dairy and meat pricing going up. We are definitely seeing those prices in the veggie outlets Going Forward as well. We do absolutely everything that we possibly can to leverage our global knowhow. That was Paul Grimwood, the ceo of nestle usa. They are of course dealing with every part of the supply chain under the sun and are trying to mitigate this change is as much as they can, trying to pass this on to consumers as little as possible without losing market share, but it is still a problem for them Going Forward. They make nescafe as well. They have seen coffee prices going up at starbucks. Are the coffee prices also increasing . Mr. Grimwood was talking about how prices are going up at smuckers as well. At nestle you are seeing a five percent increase for consumers this year. That may not seem to be much, but that is nickel and dime in a company how does like nestle deal with higher commodity costs . How does that translate to consumers . Eventually that consumers see these issues. It takes time to look work through a supply chain. This drought in california is really pushing the dairy and the fresh fruits and vegetables. We are just starting to see the problems now. Coffee had problems with its last price in brazil. When you are dealing with those prices being passed along thomas this starts to accumulate through the summer and the fall after the first measures that Companies Use dont necessarily work. Raised,rices are being when might consumers see some relief . It depends on categories. Something that is more grainbased, fourth of july beer, you will have an issue where soybeans, barley, other brands are working out better. Meat prices take a long time. Especially when you are dealing with beef and cattlebased products. That will be a couple of years, even. Fresh fruits and vegetables are much more seasonal. Hopefully if the drought gets raised up a bit, prices make beasley at her in the year. We are receiving word now, breaking news that cotton is now officially in a bear market. Lots to talk about in the days and weeks ahead. D. C. , joining us from thank you so much. Coming up, government and Business Leaders are in denver this week for cgi america. Michael hancock joins me next to explain why the clintons chose his city. Welcome back. This is bottom line. It is time for todays latin america report. Brazil will extend for six months its daily currency interventions to help help support their fight against above target inflation. Currency gained on the news, the central bank will continue to offer 200 million each business throughurrency swaps december 31. Policymakers said they are prepared to provide additional dollars if needed. Their Current Program was scheduled to expire on june 30. The International Swaps and Derivatives Association has rejected the request of a law firm to rule on whether argentina triggered contracts tied to its debt. Owes 900 million in interest on june 30 for bonds issued as part of the restructuring of 2005 and 2010. The judges order bars argentina for making those payments unless it also pays 1. 5 billion to hedge funds, including elliott management. That is your latin america report for this wednesday. Next, wall street versus main street, we will look at the challenges faced by a centuryold firm from birmingham as it tries to evolve into a wall street type shop. Bloomberg is the only Business News service being offered on amazon fire tv. If you missed any of our interviews, you can now watch them on apple tv with Live Streaming and ondemand videos. Thats a regulation rules are creating opportunities for smaller u. S. Firms. The southsone of fastest brokerages is looking more like a wall street on shop. Lisa looked at how the firm has evolved and joins me now in studio. Tell us about sterne agee, birmingham alabama. Why does this firm matter to wall street . This firm traces its roots back to a Securities Firm founded in 1901 by a former birmingham mayor. Since 2009 it has really been expanding rapidly, doubling the size of its staff to 1700 employees from 1000 in 2009. It is looking to take advantage of the pullback from a lot of the biggest wall street firms, particularly in businesses such as a trading and mortgages. Areo, the biggest banks reducing staff and risk on their Balance Sheets. Why does sterne agee see an opportunity where others were might not . A couple of reasons. The u. S. Debt market, 40 trillion according to some estimates. This is a huge market with a lot of activity and volume and is this to be done. If you have the biggest banks that traditionally dominated huge they could use their Balance Sheets to facilitate that trading, win customers they were the goto shop. They had a lock on it and they are losing some of that as deregulation forces them to pull back on their Balance Sheet and cut staff. There are not as many senior positions to be trading upon. Why the shakeup in the c suite . Asked month sterne agee fired their ceo, jim holbrook junior, as well as his son. It is coming to light now that jim holbrook was under investigation by the justice and Treasury Department for some possible misuse of company assets, like planes and boats of condominiums and the use a hunting club. Did you leave anything off . [laughter] well, they are not going to to have themvote leave the board of directors as well. There are pretty serious allegations and the lawyer did say that the allegations were overstated. Firm is insign the trouble . From what i can gather, the investigation has not yet expanded yonder the activities of the ceo and cheap operating officer. It is not going further than that as far as i can tell right now. Expanding as well. Is it still planning to expand . Yes, it is. Here we are, right . This low volatility environment where debt trading is still coming down. You have got to think are these firms still seeing opportunity if they are smaller . Is answer is yes, and this the reason why. Volatility could increase, first of all, and the longer this stretch goes on, the longer the topic is squeezed, the biggest banks will come under just as much rusher to meet these regulatory requirements. Firms, sterne agee, jeffries, the royal bank of inada they are all coming and saying you know what . Maybe we have an opportunity here. It is such a fascinating story, especially talking about the beginning of the last century and now talking about a firm from birmingham. Those davidof versus goliath things where they say we might be down here in alabama but we can teach you a thing or two . We will see. I think that right now it is wall street culture that has gotten paired back. We dont have the same kinds of excesses in the same way. You cant use your expense account to go out and have the dinners and entertainment that you once were able to. If the culture is changing more slowly and other parts of the financial world away from wall eet, maybe the question is will they have to come up to speed in order to play in new york . To be continued. Lisa, thank you. We are receiving word that the new York State Attorney general will be announcing securities for a lawsuit coming up this afternoon. Stay with numbered television, we will continue to follow that story and bring you the details as we get them. Back to football, with the world cup underway some of the most spectacular soccer moves are on full display. How do they do it and why are they necessary ashen mark we asked one professional player to find out. I am a professional Soccer Player for the new york red bulls. Aside ball is when your body is at an angle, hitting the ball in the air with your laces. If you get a clean, good strike, that will drive it into the net. When the ball is hit in your direction you dont have time to control it and it is a good skill to hit a onetime ball back into the net. But it hardest trick, definitely takes skills to get the end result. The maradona is when you are dribbling a loose ball, dragging it back. You will start a 180 motion in which you eager eye on the ball and drag it with the opposite foot. Mostly not a skill that layers will have. It looks clean and pretty impressive. The fake move is when the attacker has the ball the snake move is when the attacker has the ball, you get your foot around the ball and with the inside bring it back. Doing a snake during a match, you hope to find yourself in a situation. These are pretty difficult skills to get in your locker, but once you have it and can utilize it in a match and make it come out right, you will draw eone how was wow was some wows. The strategies for corner kick . We asked our professional red old player to find out. Taking a corner kick always factors in a few things. The keeper standing . Where do you want to put the ball . I like to put the ball in the middle of the half circle. I usually look at my target and take a few steps back and position myself sort of like degree 45 and a 90 angle, that way when you approach it its wings over your foot and curves the ball towards the goalkeeper. A lot of teams will put a defender on the first post and the second post. You want to avoid the guy in the first post, they are usually the ones to create a counter without a good corner kick. Curving the ball in will usually put him in an awkward position. Once you do that, attackers on the ball will have an advantage. You are always trying to score. On very rare occasions you do see the kick taker score. It happens, when it does its magical. Style, the side burger, these are just some of the items you can order off the on your fast food chain. If you are at a mcdonalds in brazil during the world cup and dont want a big mac, heres something that you can order under the counter. Erik schatzker shows us how and gives us history on this brazilian dish and part of his road to rio series. In part of his road to rio series. [speaking spanish] [laughter] Erik Schatzker, under the counter food, very nice. Bottomline line continues in a moment. We have the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet, and on bloomberg. Com. That does it for this edition of online. Thank you for joining us. On the markets is next. I will see you tomorrow. It is 56 minutes past the hour, meaning that Bloomberg Television is on the markets. Stocks have got about one hour left to go in this session. The rally is holding pretty steady, such as it is. The nasdaq is up 6 10, the dow is up 36 points. Got someeven though we not great Economic Data today, for more on where you should be investing your money i want to bring in Raymond James from the head of institutional investing. Dan, thanks for coming in. Bit interesting here that we got that downward revision in firstquarter gdp. Ok, you could say that people are looking past that. But what about the durable goods numbers that were not essentially up to snuff . Are people just looking at the more positive data . It is a matter of whether or not the number is too erratic. You cannot forget what brought us to this to begin with. This is a fad and liquidity driven rally. So who cares about the Economic Data . To some extent unless it is a real outlier, it will be this lukewarm recovery that we are in , sustainable is the logic and where else will you put your money . During the break we talked about entering a summer lull when it comes to trading. Tend that, does the market to make a new highs when you are in that sort of low volume . We have already been in a lowvolume environment, but an even lower volume environment during the summer . Historically were typically you might see more volatility because there is not a lot of liquidity. Any move might be outsized or exacerbated. I think that what we are seeing here now is absent negative news, the market is just going to continue to go higher. Markets will do that over time, all things being equal. Now you have a situation where most deal that stocks are fully or fairly fully or fairly valued. You want to sell something . You cannot sit in cash. What will you do with it . It is a bit of a stock pickers you got a downdraft yesterday, which was just a bump in the road that will happen. Today we are up nerdy five points, one quarter of one theent on the dow jones and s p. Why are we rallying . There is no reason to sell. Lets talk about some of the places where more demand or action is concentrated. Refiners are getting hit hard. Big action today and yesterday as well. Headed into yesterday it was observed by the Energy Sector traders that there were mornings in an overbought position on the relative strength index. There just the news that is going to maybe be some expert of oil allowed in the u. S. . That is todays event. Yesterday there was more of a broadbased selloff. Is that a reason to get in . After todays news you have to reevaluate your thesis. Is it still intact . This is still a buying opportunity. That is why stocks are down. Those types of downdrafts are just selling into an overbought position. It does create an opportunity for people to put money to work. Good to talk to you. Thank you for coming in. Appreciate it. Street smart is next. Investors are shrugging off surprising and disappointing Economic Data, leading stocks to the best we have seen in a week. Major headlines in media and technology, and we have it covered from every angle. I am trish regan, and this is street smart. Welcome to the most important hour. 60 minutes until the closing bell. Coming up today, google unveils a new version of android, drawing a new line in the sand in the battle to be the mobile leader. The supreme

© 2024 Vimarsana

comparemela.com © 2020. All Rights Reserved.