Transcripts For BLOOMBERG In The Loop With Betty Liu 20140218

The topics in a moment. Here with us as well. You have been looking into king digital and the ipo. This was an ipo that was talked about to some extent. I have never played it ever. We are in the minority. A lot of people who lose use then a monthly basis are in millions, only four percent actually pay for the game. The way it works is you pay to get ahead. You buy things in the game that allow you to advance within the game and are useful to you. In addition to that, we are looking at this to figure out if it is a filing under the jobs act. The company made over 600 million and revenue. 159 million in profit. It is turning a profit the bulk of the revenue and the users are using candy crush, even though it has 180 games that have been developed. It does have a couple of other games. You wonder if they are striking while the iron is hot. And there will be questions beer whether they should commanding such a high valuation. Farmville in drag. There are two kinds of games. The ones that you play because there are fun and ones that you play to get ahead and pay for. Be the countsed to is sure. You could advance your farm so to state by taking in. Are the same double model . Are these sustainable models . You are as good as your last forer willing to play purple cow in one instance. Bikes i do not know how much it costs per candy to get ahead. That is always a question with any of the ipos of the not only gaming apps, but groupon as well and twitter. The first thing was electronic arts. Other games were created that were better. I want to switch to the other story i mentioned, which is activist buying the lab. You know carl icahn very well. He said Great Results for all forest labs shareholders. Again the activism works. It works why . I am a big admirer of carl icahn. Carl icahn has never come into a Company Without the other shareholders interest in mind. There is shareholder activist that is very selfish. I think ackman and others. Recent examples of guys coming into jcpenney, loeb you say they are doing it for selfish reasons . Sweetheart deals in and out are not in the interest of shareholders. Carl icahn is very engaged. He has in mind the best interest of the entire shareholding group. This would have benefited everybody in the way he saw it. I am a big fan of his. This was an example of selfish and and selfish out. Lex regardless. Method any better than dan loeb or bill ackman . Isalways better because he acting on behalf of of all shareholders. They can vote with their feet and leave activism or stay with it. In the case of dam bo, he came in and took a special sweetheart deal to come in with the shareholding. He tries it again and then leaves it on a special buyback that applies only to him. Faithhen you see this benefited substantially. Bill ackman and jcpenney. Was he was was he working for his interest or the interest of the shareholders . Area clear it was a complete disaster. I think time will prove it was mostly in his own interest. Why do you think activism is ever more present these days than in the market . You mentioned i was once the. Resident of at t broadband at that time the average sure was held for three years. Now the new average share is held or three months. Reallyrtterm holding favors activism. Even with the large pension holdings, there is so much getting shorter. Activism is synonymous with the word shortterm holding. Lex stay with me for a moment. So much more. Including the mover and shaker. A new host of the tonight show, jimmy fallon. Made his debut last night, taking over for jay leno. He was joined by actor will smith and the band youtube. They played on the rooftop. The daily beast says Opening Night was brilliant. Youngerng to get viewers to tune in because the median age is 58 years old. Jimmy fallon still seems a bit stunned by the success. I wouldu had told me graduate high school and go on to be saturday night live in the host of the tonight show, i would have said, i graduated high school . So not like me. Did you see this by the way . Lemon not at 11 30. A big moment in television. Do you think he will be able to do it . It is hard. Our hour is so cluttered with wonderfully talented people. You know what is surprising, haslate Night Television endured during this whole transition to netflix, hulu, online viewing. Average age is 58. I think this will do better for that at the end. With an audience 58 years old, jimmy fallon is the one guy trying to go to the youth audience. We will talk more about that. Binge watching, house of cards this weekend. Did you do it . A political hate. Just one of the attractive qualities. Y cable giants want to get their hands on it and why theyre having so no such luck. A ticket to derek jeters first game may be worth more than the last game. Bobby valentine will tell us what they should do after he retires. It is his last season. Stay with us. Just Getting Started on this tuesday morning. Before leaving for holiday, barack obama raised the bill that raises the debt ceiling through march 2015, taking the politically volatile issue off the table. The white house hailed the move as a sign the brinksmanship is beginning to end. With us is the guest host for the hour, prominent democrat leo hindery, and peter cook. Also, the former, obama adviser. To know each other very well. A bloomberg contributing editor. Glad to have you on board. Is the brinksmanship over . It is through the election. The notion that the next one will be easy, i do not think that will happen. Shutdowns. Y, no that is good for the economy. Isand washington, the vibe john boehner has spared republicans from damage once again in this election year. He has allowed them to fight on the turf they want, which is the economy and the president S Health Care law, the irs and benghazi. These are the issues they want to talk about as opposed to another government shutdown. In that sense, it is a challenge to democrats. The john boehner do the it . Blicans a favor here i think the debt ceiling was lost a long time ago. Had he continued to turn that pot, it could have only been bad news. The only issue that is still residual is immigration. We will not let it go away. It is decades overdue. The president will continue to remind us. We do ourselves no harm by stirring that pot. Off theyou taken it table entirely . Us inhink it will help some of the house races and senate races. It is not going to happen. Chaveza picture of cesar in my office with bobby kennedy. I just cringe at the fact that we are so many years later talking about such up pitifully halfhearted attempt to be responsible. I hear from republicans who say to me they do not see any big issues to be tackled in the next three years. They feel like the president is so worried about the legacy that he will essentially fall off his own sword in the sense that he will be so such on nondecisionmaker and factor for the next three years that he will do us a favor for the democrats. The republican brand is still terrible. Both parties are basically on probation. The notion that they should play it safe and everything will be great is great. John mccain spoke to us over the weekend. He has a unique perch. He said Immigration Reform will not happen in 2015. So if it does not happen this year, and looks like it may not, you could be waiting years for this. Single easiest thing congress could do to help the economy. Job creation and growth, huge impact on the economy. Why is the president not making a decision on this yet . There is the timetable, but the reality is, it is a tough decision. They want to stretch it out as long as possible because there is not a lot of good politics here. Someone will be upset matter what the president decides. I think we will get a decision ultimately. I will be interested to see how much it might hurt him politically whatever he decides because i think it is controversial. Is not theipeline issue. It is the filthy dirty cars tar sands carbon in canada that will fill the pipeline. We know indisputably it is the worst carbon producing. His own state Department Says it will happen anyway. I really do not envy the president on this one. The pipeline is a physical theomenon that starts at Canadian Border and ends up at the gulf of texas. Has women and men reminding him every day that tar sands are filthy dirty. This is a dilemma. The likes of which you hope as president never crosses your desk truly. There will be anger on either side. There are other agencies that need to weigh in. To theme go back republican saying we will just wait out the clock. I think if the Republican Party gets 27 of the latino vote, they will not win the white house vote. The country is changing. This Immigration Reform, most did not vote on immigration. They care deeply about immigration but they will not listen to the Republican Party because they think they are intolerant. There is a barrier between the republican being able to communicate with the voters. Young women, growing asian community. The cynical view is that democrats see that and see those numbers and they are not that eager to get that done either. Of course we are. Day, thed of the argument is we do not want to get it done. They gotten it done . Question of huge republican support. The Law Enforcement community. If the tea party is still calling the shots. Election night 2016 when the democrats claim reclaim the white house, you will look back at the decision not to do Immigration Reform and think they will deeply regret it. They are playing checkers instead of chests as they often do. This house will never be sensitive to Immigration Reform because people of color do not live in republican districts moment. The senate is a body that can handle the issue. It still distresses me after all these years the pathway to citizenship for the women and men will be 13 years or, regardless of how long they have been in the country. Let me inject a public and voice into all of this, which is sam zell. He blames the democrats for the class warfare going on. He believes here in the united. Tates listen to what he says it for the governments role of this. The more comparable complicated the government makes the world, the more the one percent can afford to hire somebody and the other guy cannot. If you simplify government, neither one require. Therefore, the disparity slows down. That is one point. You know he was on the program when he made the comments about how the 99 should emulate the one percent. By the liberal media by that. He was lambasted because he followed tom perkins. Tom perkins and sam zell were talking about the elitist junk i have ever heard. It was so unfair to the american dream, the diversity of the nation. These two guys just english themselves for their absolute as asitivity to the nation whole. Is there any validity about class warfare and that benefits nobody . When half of the nations income, we are on the right side of the issue. You have destroyed the american. Ream all the way back to David Stockman and president reagan with the fraud trickle down. Have beenm perkins the beneficiaries of. The other side of it is that they feel, the republicans feel like they are being criticized for even saying is we need to change government policy, some policies. Sam pays a lesser rate of tax than you do by design. The 99 . E pay for he should pay a higher rate of taxes. He should contribute more to the economy. Worked for more balance and income. There are Many Americans who do not agree with you on that. I know. They are in the top one percent. Thank you for joining us. We will be back in just a few moments. Talking about millionaires and billionaires. We will show you how the state stack up when it comes to the wealthy. Where they live and how they spend. You are watching in the l bloomberg on television and streaming on your phone and tablet. 26 minutes past our. Equity futures are pretty much unchanged. Several stocks in the grain, including forest labs being acquired by activists. Last week we tapped the biggest weekly games on the s p all year long. Gold futures are falling. Demand for the precious metal fell 15 . Gold medal futures off to a strong start after suffering the worst annual loss in more than a decade in 2013. Natural gas futures rose to the highest level in almost two weeks. Another storm brought more snow to the mideast and midatlantic. Natural gas is used to heat more than 50 of homes in the United States and are on the markets again in 30 minutes. Check of theick Bloomberg Top headlines. In russia, two members of the protest group said they were arrested again and so cheap. They said they were detained about 30 minutes from the olympic park for an unspecified crime. Starwood capital chairman and ceo barry stern linked has spoken to banks as he prepares to sell shares to investors. Said starwood probably will sell a Minority Stake in an ipo. Netflix plan for the Video Subscription Service on Time Warner Cable on ice now that the cable operator is being sold to comcast. This according to people with knowledge of the situation. People had three full days to binge on house of cards. Kevin spacey talks about the twisted storyline on abc this week sunday. For me, it is like ogorman art. I sometimes watch it. News andrn it on the think the storylines are not that crazy, theyre really not. Diabolicalacey does well. He does it really well. He is like the lipsey more hoffman, he can do anything well. Extraordinary talent. You do not watch house of cards. I have to wait until netflix is on the twc box before i can jump over. It is a phenomenal phenomenon. As the netflix phenomenon proves its wealth and value you think it is already proven, right . Extraordinary numbers. Lex stay with me. You have the cable because you ran tci, along with john malone. The Business Media mogul who got derailed by comcast last week. Cristina alesci has been all over the story. It continues, right . Malone got thwarted. Now comcast buying Time Warner Cable. Everyone wondering where john malone goes next. He is not going home. He certainly will do more deals. Not the guy to give up. They band together and push back oninst the programmers content costs. He will try to do more deals. Potentially something with cox communication. Much smaller company. It is manageable. Of course, as a result, there will be assets that will come out of that. Charter a likely go after those as well. Maybe we could see a scenario where charter grows by taking on the coxast assets and deal. That way he can Start Building a mini empire and again. Speakingalone has been so forcefully about cable consolidation, there is a joke that he may have talked himself out of the deal. The only difference i would draw with christina is many years ago there were 100 Cable Operators and i got heavily involved in the industry as an owner. Now there were five. Five is about to become for. That is a really pretty consolidated industry. The cox transaction will occur only if the family wants it to. It has super bowl. Super votes. Only point is there will be further consolidation. They are superior assets. Well situated and brilliantly run. They will going to charter only if the family decides that is good for the family. Like the sound like you are negative on the ability of that happening. I think geography manifests itself more than aggregation. After we consolidated the industry down to five significant players, i think where you own the system is more compelling than the mass numbers. That . New york city does not compete with philadelphia. Nothing is going to happen for us that live here by reason of the comcast acquisition. This is a very good transaction for time warner employees. Very good transaction for time warner customers but it has no competitive impact. I think it will go very smoothly through the regulatory process. There is not overlap in cable system ownership. You still operate under a franchise from a particular mentality. Municipality. Regulators will be concerned about the leverage the Cable Companies will have over programmers. That is something new they have been looking into. More compelling is the demise of vertical integration. For several decades we owned most of the content. Is gone. Nbc was very hallmark of a transaction. To treat other programmers fairly. Content. Ality they had artie a great they will throw them off in the market to keep a low of 30 level and will be very fair to independent programmers. I think this is a great transaction. Well. Know john malone how do you think he feels about what happened last week . He is brilliant. He does not like to lose. Brian roberts an extraordinary transaction. Rob marcus got full value at time warner. Comcast became a Better Company by reason. Charter has stayed the same. Like malone is aggressive. Charter went hostile. Think christina has a better point. This is an industry that writes itself on collegiality. Collegial consolidation. It was hard on the industry to criticize time warner management and that sets him on age. Edge. T set them on harshy did not like the truth. Time warner has had a hard time with customer satisfaction. Malone is known as darth vader of telecom. In the cable industry, that probably did not go over well. That may have been the straw that broke the camels back. Comcast was willing to do or at a partnershipn with charter. Once malone went hostile, that may have been too much for comcast to handle. One thing to go out there and criticize. Another to go out and propose entirely new board of directors. It is extraordinary to me that just days before comcast made the announcement charter nominated their own slate of Time Warner Cable board members. Of course the thought is they would not have done that if they thought there was something brewing on the side between comcast and Time Warner Cable. I am really surprised at how well that was done, how secretive and clueless charter and the leaders were. John is a gifted dealmaker. Brian roberts is every good as as is every bit as good we were, may be better. It was friendly between broad markets and brian roberts. It was tax sensitive. Stock for stock. Brian did not pay for these. He gave some of his stock to time warner shareholders for some of their stock. Barry respective of further market and validation. He picks up new york, los angeles, charlotte. Nice markets. Enhances his position in the taxfree transaction with a lot of sensitivity to the Regulatory Approval process down the road. I think it will sail through. Brian roberts has friends in washington, no doubt about that. Here is a perfect example of when it pays to be friendly and hobnob and be part of the industry. Comcast has shown themselves to be willing to do what it takes. They are not hostile essentially. Exactly. All of the conventions concessions will transfer over. The one thing i would add to what you said, it was a smart transaction that investors would not have minded comcast taking on debt and would have preferred a cash and Stock Transaction because comcast is so under levered at this point. That is right. The charter deal could have been highly over levered in my opinion, a longterm cable investor wilbur for this transaction in my opinion. We will talk about one of your favorite subjects next, baseball. Bring training. Thank you for joining us. Cristina alesci, and Bobby Valentine will sound off with us on what is next for the yankees as they say a long goodbye to derek jeter. Reports of a new iphone in the works. How will it stack up to the competition . Stay with us. As you may have heard, derek jeter announced he will retire at the end of the season. Within two hours ticket rices surged tenfold. Alex rodriguez suspended this year for using performance enhancing drugs. Still with me as someone who knows a lot about baseball tom a leo hindery. Also joining us now, a former pro baseball player who served as the manager of the texas rangers. Bobby valentine, currently the athletic director. Starting with you. The yankees do after derek jeter . Derek jeter has been one of the best products. You mentioned apple coming out with a new iphone. Derek jeter has basically been the iphone product for the. Ankees he has never disappointed. Anyone who has invested time and energy in derek jeter has had a great experience. He will definitely be missed. That is exactly right, which is why losing him will be such a blow. What do the yankees do . Bobby valentine am a one of my heroes as well. Derek jeter is the most graceful. Layer of this generation he is respectful of the fans, respectful of teammates. He has never been in the news for adverse behavior. Man is such aoung role model. , and bobbyted player valentine knows that better than i do by far the mud but a graceful man. It will leave the sport with good taste in everyones mouth. I do not know if you ever replace that kind of player. You may find someone with a wonderful skill. Or they have lined up younger players . , know they have the pitcher but do they need younger . He will be a fine player, i am pretty convinced. I wish every team had a Derek Cheater as the tentpole for young people to get reengaged with the game. Watching derek jeter play baseball, watching derek jeter the a gentleman in society is good for baseball. They may replace its field skills. A long time before they replace his gracefulness. Exactly right. He has been consistent and excellent. That is something you do not replace. I young player will not come in and step into the shoes and replace it. The yankees will live on. I think derek jeter well live on in a new world and new life. Exhibiting the same qualities that have made him great of baseball. All i hear right now is how great of a player derek jeter is means tond how much he the yankees. If you are managing the yankees right now, how do you manage the transition . It has taken an entire year to manage this. The yankees will have to redefine themselves. There it jeter is the last of four guys who came up together. Teams. Ally defined the defined it to the fan base and opposition. Now it is up to the yankees. To reinvent themselves and put a new product for the fans to be proud of. How much do you think jeter was a part of the valuation . Valuewill cost the media because he is so watchable. We know when he has been hurt in the past the path in the past year, we know that ratings go down. I think there is a short answer to this. Sharing a lot of the same values derek jeter portrays. Ists bobby is talking about he came from the system and has been a yankee the entirety career. The entire those days need to come back to baseball where you reengage with the team because you have seen the player from the earliest days until retirement. Tradet tilt purely on hospital later in the players career are harder on the fans. The same in basketball. It is harder to engage in professional baseball and basketball when the players turn over with great rapidity. Would you agree with that . I agree totally. To not onlyifficult find players and develop them, but to keep them. Ago, it when he is replacing someone, will not remember who he replaces. How this works out. Things always have a way of working out. Seems like it is always worked out by pinging keys anyway. Thank you for joining us. Bobby valentine, former manager of the new york mets. Great to see you. Always fun to have you. Of hindery, the ceo intermediary partners. Coming up, Las Vegas Sands back up and running after several days of hack attacks. Sheldon adelson may not be closer to find out who is to blame for those attacks. We will be back. Time now for a top headline. Samsungs new highend smartphone will have a larger screen and sharper display than the current galaxys 4. Galaxy s4. This will be released as the same time as the gear watch. Sell forphone will 1000 in brazil. That compares with 649 in the u. S. The price and brazil offered by authorized retailers has jumped 17 since september. The 15th country where they operate its own stores. Sony sold more than 5. 3 million. Laystation consoles the tokyobased Company Preparing to release the machine and had projected it sold 5 million consoles by the end of march. The latest in tech and media at 1 00 eastern time only on bloomberg west. It is 56 minutes past the hour, which means Bloomberg Television is on the markets. Equity futures pretty much unchanged. Capping off one of the best weeks we have had in the stock and it last week. European stocks dropped for the first time in three days after a report that german confidence fell more than forecast, indicating they are less optimistic about the future of the euro zone economy than they were a month ago. Activists announced this morning worth 25ng a deal billion. Shares of both companies searching on the news. Coming up, but wish on boyish. The big bets on jimmy fallon after his debut asked night. Do not miss the talented David Russell today at 4 00 eastern. The director of American Hustle and Silver Linings daybook. Talking oscars and filmmaking. 30 minutes until the opening bell, this is in the loop with betty liu. The countdown begins right now. Welcome back. A key measure of factory activity. Empire statefeds Manufacturing Survey came out about a half an hour ago. Cocacola has announced a new costcutting program after fourthquarter profits fell. Herbalife, accused of being a ponzi scheme by bill ackman, report their earnings. This morning, the worlds secondlargest generic drum , announcedugmaker forest. Is buying joining us now is cristina alesci. It has been a long haul for carl icahn with forest labs. It has been quite a fight for him. Thathole thing has been they did not have the scale, they did not have the muscle that it really took to promote their products. In reality, forest labs is a little challenged on its pipeline, despite the fact that actavis is making a huge bet on the company with a very nice premium. Forrest has had problems because its blocked western drug was an antidepressant called lexapro. After that went off patent, forrest had to find ways to fill that gap. Actavis is taking a pretty risky bet. It sounds that way. How is it going to change the whole landscape and pharmaceuticals . Actavis has been the most inquisitive Pharma Company out there. It feels the pressure to basically get into the branded game because it has the generic up. Pretty well taken it is not going to shake things up too much in the industry. It will put pressure on other companies to go ahead and make acquisitions. The industry has had a hard time in developing big, blockbuster drugs. Take lipitor, viagra. Think about when the last time was when the industry produced a blockbuster drug. It is not for want of trying. Does that mean that we will see merck and pfizer start to do more acquisitions . They are thinking about it, definitely. They are active. They have to pick the right company, right . The growth may not be in the massmarket drugs and medications. It may be in the more niche players and in the biotech space, pushing the envelope on what can be done in cancer or and more genetic testing. That is where theyre really excited about finding the right target and paying up. Cristina alesci, thank you so much. Moving and shaking this hour. The billionaire casino operator sheldon adelson. Back up andbsite is running after being attacked by hackers. Employees personal information was posted and the ceos comments on Irans Nuclear plan were criticized. Investigated by state and federal Law Enforcement. Thinking about a gamble . The latenight wars are getting some new blood this month. We will take a look at who could win that. New cola announces a costcutting program after fourthquarter profits fell more than 8 . How does cocacola regain its is . Fizz . Welcome, im jimmy fallon and i will be your host for now. [laughter] fallon,is jimmy cracking the jokes as he made his official debut on the tonight show last night. Did you watch that . In 42 years the iconic show is back to its old stomping grounds, right here in new york city. Hollywood is not throwing in the towel just yet. This is a political story because of the tax breaks that givenvolved that cities to shows like the tonight show. Peter cook is in new york because he wanted to see the show. [laughter] the Research Director at Horizon Media is also joining us. You have been looking at the tax breaks. Have stayed upld too late. This is a big deal, the move from burbank to new york. It involves big money, tax credits, a lot of politics. It signifies what has been going on in los angeles the last couple of years and in hollywood. It is still a huge thing to the california economy. 100 91,000 jobs in the entertainment business 191,00 0 in the entertainment business. It has taken a hit. About half of the production days before it was in 1996. A very big deal. A lot of this gets back to the tax incentives that other communities have been able to offer. Mayor of l. A. Is putting pushing the legislature to double incentives. See florida and louisiana are also ahead of california. They are looking to increase those substantially. It has made a difference in this go around as well. What are some of the tax credits that they get . First of all, let me highlight what happened with the tonight show. The New York Legislature customized a tax credit to lure the show here. I said we will give you 30 tax has aif the show production budget of more than 30 million. Peopletalk show of 200 or more. Filmed outside for new york for five years, what does that mean . It had to be a show filmed outside new york. That is how they qualify. It could be worth as much as 20 million per year to nbc for getting that tax credit. It was all about jimmy fallon coming year, the new york five. Vibe. We heard new york mayor bill de blasio brag about this the other day. There will be hundreds of jobs created about this and it will make new york a more attractive tourist place. Would you agree . I think so. I think it will be one of the sites to see. It is near broadway, near times square. Seth meyers has a show after that. We will have both latenight shows on nbc in new york. When you go to the show, you will see, as you are standing in line, people are tourists. No true new yorker is going to wait a mind for that. California is the same way. Brought a lot of tourists to burbank to wait in line. How did you think you did . I think he is going to do great. I think he is very selfeffacing, likable, mainstream. With jay leno, you hear his monologue on the radio. About jimmy fallon, jimmy kimmel, conan, they are made for viral, vignettes that are sent around the world. Older people, the once youre watching it on television. Younger people are watching entirely. These kids are designed for that. The average age of the tonight show is 58 years old. How do you bring men age down . Jimmy is a little younger. Arethe latenight talkshows 54. They are all in the 50s. Is that considered young . Jimmy fallon looks young. They would love to get that median age of the viewer. It is a little bit older. What is going on in latenight cable competition now, you have conan and you have comedy central. Chelsea handler. You have adult swim. The most popular activity in latenight is watching playback on your dvr. The numbers here are surprising. It reminded me the powerhouse the Johnny Carson was. Netting 50 Million Viewers per night for Johnny Carson. 15 Million Viewers per night for Johnny Carson. Johnny carson said on his last show, the population has doubled in 30 years and half of them have had a latenight talk show. None of them have been successful. 1992,he stepped down in David Letterman started two latenight shows on two different networks. The youngerabout comedians who have tried to take the tonight show, conan obrien. Nice,eted out a straightforward tweet to both seth meyers and jimmy fallon. Said, i want to congratulate jimmy fallon and seth meyers. Why didnt conan work . I think because jay leno was on a 10 00. He kept his numbers. He was in budget. Putting jay leno on a 10 00 and having conan at 11 30 jimmy fallon 12 30, that is 12 hours of the same show three hours of the same show. I think if they did not move jay leno to 10 00, conan might still be the host. How big of a battle will it be for guests . Restrictivehere is on one someone appearing show and on another show. It jimmy fallon is going to have the pick. Michaels is the king of latenight. Im sure they can work something out. Hes the guy who is farming these talkshow hosts. Seth meyers among them. How do you think seth meyers is going to do . That is more fun interesting question. We know jimmy fallon can do a latenight talk show and do it successfully. Seth meyers is an open question. Hes a great writer. He is known for weekend update. Lorne michaels is very good at finding latenight talent. I think he said, you are better as a latenight talkshow host than doing other projects. Lorne michaels has a good track record for spotting talent and putting people in places where they will succeed. I would not bet against him. Neither would i. It will be competitive. Is there going to be a woman at some point who will be able to take that spot . Joan rivers tried to decades ago. She was actually on my snide. Lsea handler has a show last night. Justly handler has a show. Chelsea handler has a show. Jimmy fallons audience is about 65 female. A lot of them are sticking on. It is an interesting question. I dont see why not. Meredith vieira did a great job as the anchor of the olympics. Thats true. Kind ofetterman is now the old guard. He is revered by both fallon and kimmel. They grew up watching David Letterman. How long will they last . As long as he wants to. He has done a great job. That was a disaster before letterman moved there. He is there as long as he wants and he is ready to surpass carson for most years as a latenight talkshow host. Hard to imagine David Letterman still going on it. Physical comedy is what he used to do in the 1980s. He has gotten a little older. Thank you so much. Peter, our temporary entertainment correspondent. Vehemently opposed to the Keystone Pipeline, but we will tell you who is taking a stand on the other side of this historic battle. Stay in the loop or cope but in the loop. You are watching in the loop on Bloomberg Television. Canadas Prime Minister is at odds with president barack obama over his failure to approve the keystone oil pipeline. He will wait out the president s terms to get the pipeline built. Three weeks ago, the state Line Department found that the Keystone Pipeline would not greatly increase carbon emissions. I talked to billionaire tom stier. He plans to spend 100 million this year to pressure officials on climate change. If this is Department Report says that it is going to happen anyway it is not a good thing, no. It would allow the president to say, i will go ahead and approve the Keystone Pipeline. Good. What happens to you . [laughter] i will still get up in the morning and the breakfast. [laughter] i will feel as if a huge mistake as been made, a huge opportunity has been missed. In the last hour, we spoke with a fellow democrat, a supporter of the president , who also believed that the pipeline should not be built. The pipeline is not the issue. It is the filthy, and dirty carbon in canada that will fill the pipeline. We know that the carbon in canada is the worst carbon producing entity. You can see more for my interview with leo hindery at bloomberg. Com tv as well as tom stier. Watch the full episode of titans at the table. We are just a few minutes away from the opening bell on this tuesday. He have the top 10 traits right after this break. Keep it here on in the loop. Welcome back. Are in the loop. We are looking at a change to open. Remember the context year. We are coming off the best week for the s p 500 we have seen. Big uptrends last week. One of the things that may be a limiting factor today, that data that came in a little worse than anticipated. That could hold back any of the gains that we might see. We shall see as we head for the open. Julie hyman, our chief market correspondence. Inare on the markets again 30 minutes. Its countdown with the top 10 traits. Alix steel joins in. Lets start with number 10 and jetblue. Yet another winter storm is forcing the airline to cancel flights. This comes less than a week after the airline has canceled more flights than any website. Waste management. Swung to a fourthquarter losses. Below analyst estimates. It did increase its Quarterly Dividend by 2. 7 . Lulu lemon outperformed. Sales were covering this year. Issues including this ether yoga pants. Number seven, norwegian cruise lines. Beat wall street estimates by about a penny. Thecompany felt pleased by performance. Number six is medtronic. The company said thirdquarter profit fell 23 . The company also lowering its earnings forecast. Netflix. A huge surge in the number of subscribers who tuned in to watch the Second Season of house of cards. Its effort to secure a place on Time Warner Cables desktop boxes on hold. The cable operator is being sold. Did you watch . Not the Second Season. I was still in the first season. Hurry up. It is so good. Number four, tesla motors. Elon musk secretly met with apples acquisition chief last spring. Wall street analysts speculated about a suspension suspected appletesla marriage. The tech giant is very interested. Number three, dish network. They will review a Lower Court Decision that would allowed dish mexico to carry broadcast channels. A deal. Forrest laboratories surging and the free market. Actavis is buying forest. The deal is a win for carl icahn. It is the secondlargest shareholder. Number one, cocacola. Fellfourthquarter profits as the company sold less soda in north america. Global sales rose 1 . We will be taking a deeper dive into cocacola in just a few minutes. With soda wars. There goes the opening bell. Joining us now is the director of trading at foreman trust capital partners. Are still biased to the upside for the year. I think that is right, betty. The warning for anybody is that if you had a 25 gain in the s p 500 last year, you get a chance to rebalance if you did not already. There is yield seeking behavior going on. People cannot buy treasuries anymore. They cannot buy other nonsecuritized assets. They are reaching for yields. And you get risk behavior, you have to start taking a step back. All of the action is going to be an Interest Rates for this quarter. For the year, do you see a repeat . Do we have a chance after we rebalance to have a repeat of what we saw in 2013 . I think it will be incredibly different to have two years in a row like that. What we need is growth. The things that have changed on the ground is that congress is out of the way. We have a debt ceiling. The bad news for the stock market is that the fed has decided theyre going to taper, they will take stimulus out of the economy. You cannot call Interest Rates. You have to make asset selections based on if rates go up, what should i buy. That is going to put a lot of rebalancing people should get way more defense of this year because it is impossible to repeat and up 20 or 30 year on the stock market without growth or inflation. That is very true. We will see what the fed does for the rest of the year. Brian battle from performance capital partners. Coca cola reported the results. Profit dropping about 8. 4 . Shares are down nearly three percent. Right at the opener. Tracking the beverage giant in the soda wars they are getting more and more difficult between cocacola and pepsico. We are seeing the same problems. North america is a struggle. That is right. It is tougher and tougher to sell carbonated soft drinks. Those of the big cash cows for those companies. That is were they generate a lot of the cash they need to drive some of their still portfolio and the jews around the world and other things they are trying to use to make up the gap juice around the world and other things they are trying to make up the gap. That is a tough thing to try to improve and it will cause ripple effects. Are they in denial that americans just are drinking less soft drinks . You may sayhink he is in denial, but the one thing you can say for sure is that he is not backing away from carbonated soft drinks. Neither is pepsi. There was a period when they hass to be and since he come in, he has said, we are going to push them. They did a little better last year, the year before in 2012. This past year, it has been a bit of a sog,. They have tried to figure out ways to energize people. You have seen pepsico changed its marketing. Cocacola has really tried to get more consumer facing. Promotions and marketing. Thats what they will do with this recent wave of cost cutting that they announced today. Theyre tying to figure out how to get it back. They are both costcutting. Go ahead. This is a big cash cow for them. If you cannot get that growth , one of the options is just to cut prices to get volume up. That used to be the play, back in the day, and these companies have really refused to do that in recent years. What the ceo has done for instance is focus on package sizing and trying to get more profitable packages. Analysts and some investors are holding their breath, waiting to this late sluggishness is going to cause them to hit that pricing lever and really take down prices, which i think would be seen as a bad sign. So far, they appear to be trying to hold on that front. What is the goal here . Is the best hope that they can make the slide less ugly come Lester Maddox . Ugly, less dramatic . Or do they think they can reverse this decadelong trend of slower and slower softer and growth . Soft drink growth . Their rhetoric says they can reverse it. But lets face it, we have seen this decade of decline. They are getting involved in the rig business. They are exploring new channels and not sticking to the old model. It is hard to say what is going to happen. The one clear message is that people do seem to be drinking less soft drinks. Maybe boomers are aging out of soft drinks. Does it make any difference that pepsico came out last week and said, we are going to keep north american beverages . We are not going to split it off like some shareholders wanted . That they shows is are committed to the soul power of one notion. They believe that this drives a lot of activity, retail, that they can leverage that with Grocery Store chains and the like. It is part of the business that is harder to see. Are negotiating for fritolay placement and shelf space, it is tough to have beverages in their. There. Can we get more value from the company . That is what investors have been saying. They have preached, over and over, whatever you think about her management style, she has always been dedicated to a longerterm approach. That is what you are seeing play out when she makes this move to keep the beverages with the snacks. Great to see you as always, duane. Dwayne externaleeking an reporting specialist. Whether the company may be preparing for an ipo. Dealmaker meets with elon musk. Is apple looking to buy tesla motors . Think about that combination. Stay in the loop for more on that story. Welcome back. Music streaming Service Spotify seeking an external reporting specialist, according to a job posting on the companys website. Spotify declined to comment on whether the plans are for an initial public offering. Sony sold more than 5. 3 million playstation consoles through february. It beat its own forecast. It projected to sell 5 million consoles by the end of march. The makers of the popular candy facebook andme on apple said it will raise 5 million for an0 ipo. Striking while the iron is hot. People are addicted to the game. Catch all the latest on bloomberg west. Is apple looking to acquire tesla motors . Swirling after the San Francisco chronicle reported that the tech giants top dealmaker secretly met with teslas ceo elon musk last spring. Neither company is talking about the meeting. The prospect of a merger has caught the interest. Joining us is the editorinchief of a weblog that covers everything auto related. I know you guys have followed tesla very closely. How real do you think this is . I would put this at about 20 real. Im sure they met. Elon musk is super cool. I would want to hang out with them too. Him too. Monday thatort on apple has a product the tesla could use. Every car has a touchscreen in it. There is no standard for touchscreen. If they are talking about working on a standard, it would be great. I would totally believe it. That would do what . Putting the ios in the tesla cars would do what . It would give tesla a better system than they have now. Still does not quite work the way you would want it to work. Apple has been aggressive in the car space. They work with gm, mercedes. They are putting siri in cars. Building a car is terrible and i hope apple is terrible does not do it. It would be a crazy departure for apple, wouldnt it . Likes putting together candy crush and drowns. Drones. I have a hard time believing that elon musk would sell the company. He is being cool. Being cool as owning a Space Company and a car company. What would be his motivation for selling the company if toyota could not get it . They have worked with it. Tesla bought the plant in california from toyota. Partnership,a toyota and tesla. As does mercedes. Perhaps it was just a meeting that the two had to just throw around ideas. You could not be a Big Tech Company and not maybe look at tesla, not look at doing something with tesla. Is that right . Absolutely. A Partnership Makes sense. Google is in the car space. Apple is trying to get into the car space. Tesla is the most interesting, exciting, and cool company. Apple is still the most interesting and exciting and cool tech company. Knowing the players that are involved if it was happening, i think we wouldve heard about it. Talk to me more but elon musk. Is he willing to sell . Do you think he is ready for that . If you look at his history, i think you would only sell tesla if he thought he had accomplished everything he wanted to accomplish or he thought it was not possible to accomplish what he would want to accomplish. He has not built a second model. He has not built an affordable car. Thathey build a car someone who does not regularly watch bloomberg tv can afford . That has been his goal ever since he started the company. What is the latest on that . Are they getting any closer . When he took us through his headquarters in l. A. , he was very big on the model x and the suv and how it is for the soccer mom these days. That is roughly in the model s space. It is something you buy if you can afford an expensive vehicle. Get to theo affordable space. I think they are still three or four years away from that. They are reporting some their earnings on one stay. What will be people be listening for . That they maintain production and that orders have not dropped off. The tesla train has been running out of control. There is all this pent up demand. The model s is supposed to come out a year and a half before it actually did. Now that we have gone out through a lot of this, are they still had on delivering cars . If they have caught up, it is probably not a good time sign. Breaking about the protests in the ukraine. The protests do seem to be intensifying. Ukrainian authorities are cracking down. The state Security Service issued a joint statement saying they will take all legal measures to quote restore order if the protests to continue after 6 00 p. M. That would be 11 00 a. M. New york time. There wereer earlier reported three protesters who had died in clashes with Police Outside of the Parliament Building in central kiev. That is according to a lawmaker of the ukrainian opposition. In addition to the Security Service about taking all legal measures to restore order, they have shut down the subway system. Authorities have also told women ,o leave Independence Square which is where some of these protests have been taking place. The situation seeming to intensify as we do hear from the state Security Service. We will bring you updates that we do get as the situation does go on and as we know that deadline. Near that deadline. Coming up, two members of the riot areunk band pussy out of prison for the time being. Time for a global outlook. Now of a live shot right what is going on in kiev, in the protesters from the Opposition Party have clashed with police in front of the Parliament Building. There are at least three protesters who have died. According to opposition leaders and the associated press. Ground to ground reports on what is going on. We will keep you apprised on what is going on there in central kiev,. Two members of the russian punk band pussy riot have been released from a russian prison. German Investor Confidence fell for a second month, signaling concerns that fragile recovery poses a risk to the european economy. Investor and analyst expectations slid six points in january. North korea has committed the worst crimes against humanity in modern history and leader kim jongun should be tried by the International Criminal court, the United Nations commission said. Extermination, murder, enslavement, torture, imprisonment, and rape. It for today on in the loop. Tomorrow we will be joined by the founder of nine west. He is still in town for new york fashion week. He will give us a rundown on the hottest trends and what retailers will be selling. That is tomorrow starting at 8 00 a. M. Eastern time. Approaching 56 pass to the hour. Im julie hyman. Lets take a look at where we stand. A mixed picture today. Last week, the best week we have seen for the s p 500 all year. In the wake of that, the s p giving up 3 10 of a point. Recordtrading near the that we had last year. It is time for futures and focus. Last a huge annual loss year, gold futures have been on the rise. For more on the recent surge, the chief Investment Officer at sfg. It a bounceback or other fundamental reasons that gold has been rising . I think it is a little bit of both. Lets keep it in context. We have had a broad Market Sentiment shift. We went risk onto nervous neutrality. On to nervous neutrality. It is waking up a lot of shorts in the market. We have seen a lot of Short Covering since midjanuary. They picked up steam last week as we broke on monday and on friday a 200day moving average. As a trader, unless there is a change ash a clearcut change in sentiment, i do not think this rally is going to continue. I think it is being met with supply overhang. It seems like a lot of the big strategists agree with you. Some of the most accurate strategists are bearish. They think that this rally is shortlived. Yes. How are you betting on that . Are you shorting gold . I am looking for spots to so gold. Especially last week when we saw the commitment of traders report come out that there were new loans in the market. Some it is being met by demand. I would give any opportunity to sell gold as a traitor. As investors, it is a different story. Gold in yourg portfolio makes sense. Im speaking on both sides of my mouth, as a trader and an investor. That is more as a hedge that you would hold that . Absolutely. We have never seen this centralbank monetary policy. It make sense to have in your portfolio as a hedge. I know that chinese demand is set to overtake indian demand in the next several years. How will that play into the fundamental equation for gold . I figure this continues to keep a premium in the gold price. Indian demand has been very strong as of late because premium for gold has dropped to 30 to 40 per ounce. We are not sure how accurate the news out of china is. Enough to keep a premium in the price. Thank you so much. We will be watching the gold prices to see what happens next. We will be on the markets. Live from bloomberg headquarters in new york, this is market makers. With Erik Schatzker and stephanie ruhle. Follow the leaders. Leading activist investors all reveal their holdings. We will dig into the latest filings to see which companies are hot and which are not. Candy crush has more than one billion plays every day. The company that designed the plan filed to go public. His king digital more than a onehit wonder . Mgm was once hollywoods most glamorous studio. By 2010, it was bust. Can the famous line be the king of the media jungle once again . Chilly marketry makers. I am matt miller. It snowed again this morning. It snowed all weekend. I was skiing. You were holed up in bed