Cranny is outside parliament in london. Issues . The key some pretty tough questions, betty. Detail is what they are going to want to know. They suspended one employee. There is no evidence of collusion. This goes to the heart of the issue. Or peoplef england within the bank of england were concerned about rating the Foreign Exchange market and the close of the market area this was eight years ago. Would meet with people from the bank of england. And talked about the close the issues. They only decided to do something about that eight years later. This is an unregulated market. It is an unregulated market. He has artie instigated an internal investigation. Already instigated an internal investigation. Still comely politicians say internally looking at yourself is not enough at the moment. We have breaking news about alloys Bank Currency trader who tipped off bp on a trade. What is up with this . Encapsulates the very essence of why mark carney is in from the treasury select committee. That a trader at offds Banking Group soft 300 Million Pounds and to convert that into dollars. He tipped off somebody at bp before he began. This is before he executed the trade. That, if bp is involved, you are looking at market abuse. This is possibly insider trading. The trader concern has been suspended but not accused of any wrongdoing. It is important to make that point. I also have some comments from bp and lloyds. Lloyds says the investigations are ongoing. Bp says they refute any suggestion that bp traders were doing inappropriate trading. That is the problem, betty. It is not a regulated market. He said, she said. What did you say . Back to you. This investigation will continue. Thank you so much, manus cranny. The president is headed to manhattan for two friend raisers. Phil mattingly has more on this story. Is alan patricof. He is hosting 30 people at his house. Tell us about these fundraisers. Democratssident and recognize that a few months from november the senate is very much in play. They need to raise money. At the patricof home is tonight. It is 32,000 per person. Blackstones at house. The president is still able to make that trip to new york and get these people together to raise money for the party. This is going to be a tough election cycle. 20is hosting about fundraisers between now and november . To the senatets right now. When democrats moved into this cycle, they did not expect these six seats and the republicans needed could occur. As of now, there are as many as 10 seats in play to flip very if the president maintains the white house for the last two years, nobody thinks the house is in play. If the senate flips to republican as well, this white house is done. Therell be very little they will be able to accomplish. That means the president was to get out and raise money and get as much of that money to democrats that are tolerable as he possibly can. The president and the white house has been trying to boost the enrollment in these health exchanges. What is his new way to get young people to sign on . They are willing to do anything. Everybody knows a Zach Galifianakis th. He has a show called between two ferns. He brings on a highprofile guests. The president sat down with him. Listen to what he had to say. What did you come there to plug . I think i would not be with you if i did not have something to plug it. Have you heard of the affordable . Are act question mark it works great now. That is a good question. It is a great back and forth. They have a Million People enrolled. They are targeting 7 million. They have until march 30 forced 31st. He is willing to bring Zach Galifianakis into the white house and do between two ferns. Check it out. I hear they are very funny. Thank you so much. Phil mattingly is our white house correspondent. Chairman of red apple group, one the Largest Private Companies in the u. S. He is a Republican Party donor. A clinton fundraiser. It is great to have you back. Where are you going to send your dollars . I think we need a balance of power. We are toowith polarized. It is been away way for years. It is been that way since president obama. Democrats and republicans always sat down with each other and hammered out a deal. I think it goes back to president obama being a smart guy. He never had the experience of washington. He was not all senator or congressman for a long time. That created a problem. Settling was not the answer. Where you going to butcher money to try to broker some kind of truth between the two . I am putting my money toward a Republican Senate and a republican congress. Are you against the tea party . Do you want to fight the tea party candidates. It is wrong. They should have stayed under their old adage. Let us reduce taxes and not go on to every other subject. Isremism is any direction wrong. Americans have to come together and work together. We need to come up with Commonsense Solutions like we did for the last 200 years. Right now, im hearing from so many republicans and donors that say the tea party is bad for the Republican Party. They are turned off from donated money to republicans. Where was all this push back before the Tea Party Really dug their heels in and were able to do divide congress . Speaker boehner is going around and trying to collect money on his own to make sure that his people get in. We have tol get commonsense people instead of people who have no common sense. America depends on it. It does. Where is the leadership in the Republican Party . Who do you think is going to lead the Republican Party . Are we talking about 2016 . Think the leaders are jeb bush. He is a decent person. Romney, he is quietly being talked about in certain circles. He wants to give it another shot. The two top leaders are mitt romney and jeb bush. Applies place is chris christie. He may move up. It is a porsche race. Race of the close clintons. What if Hillary Clinton ran . I have been a close friend for 25 years. They are close friends. My kids traveled to africa with bill clinton. Friends. E let us put it that way. Would you feel that if she ran, conflicted that you would want to support her but say true to your party . I would look at it and see who is running against her. What dialogue are you having andt now with senators representatives in washington . I know you meet with them and talk with them. They talk with you. What kind of talk is the conversation . I havent several senators in my office. We talked about being able to sit down and create solutions. It seems like the only Way Solutions to what . The dominant issue is impasse in washington. On what issue . I am an immigrant. Immigration is important to me. Throw 11t going to Million People out of the country. Let us sit down and say ok, we want to able to transition them over five or 10 years and say to them you have to pay taxes and you cannot be a crook. Commonsense solutions. They are taxes, be a good citizen. Over the next five years we will make you a citizen. Is that the top of your mind . For your business, what is top of mind for you western mark obamacare is a mess. I sat with some Union President s the other day, they even think it is a mess. When the unions are starting to president , nobody knows whether to is a good or zagat. Say wewhite house would fixed the problems. We have several Million People in the exchanges. How manyknow my are paying. They are registered. Where is the check . There are delays still on companies complying with it. We are going to talk more about politics. We will talk about politics in new york city. Still feeling heat for his support of immigration reform. Marco rubio is talking about the United States economy. We will hear more from him later. Buy theis offering to fuse for 200 million. Fuse is owned by Madison Square garden. He wants to convert it into tv. In three times as many homes as revolved. , dr. Dres rappers asic service has raised second round of financing. Corvette gets an overhaul. Well put you in the front seat for a test drive. We are just Getting Started on this tuesday. Youre watching in the loop. I am back with the ceo of red apple group. They have interest in energy and groceries. We were talking last week because we had the exclusively uncovered a supermarket in lower manhattan. This is on 8th street. Warren buffett owned a piece of the property. You rent from this property. He is a part owner. Had he feel about buffett being your landlord . Being a real estate owner in affirmationlove the that new York Real Estate prices are going up. Invested in new york, everybody else should too. He said to me he wished he had bought more given how well that property has performed. It got me wondering, john. Rents have gone up. They have gone up considerably since he bought in to that in the early 90s. Is it harder to operate businesses in new york city is the rents have gone up question mark it is very hard to operate. , if we are talking about the grocery business, are 10 times the amount. Why is my milk so high . The cost of the rent. It is a problem. A cost of rent, unionization. We have factors that do not exist in new jersey or other states. You ran for mayor. Is under someyor pressure to raise revenue. One of the things people have said is why does he not overhaul the property taxes in the city . We talked to another developer, i want to hear what he said about he thinks the tax system is unfair. We are seeing an undertaxed in Single Family homes. What needs to be happening is a shift. There should be a reallocation of taxes. Would you agree . And no. Im not looking to raise taxes to the single homeowners that work hard. I rent. I rent. I dont think we should raise taxes and chase people away. I was in florida a couple of weeks ago. Florida real estate people were celebrating more and more new yorkers are moving down. It is like 400 families a day. Really . The fear of taxes. It is going to rise so they figure that us get out of town a faster. I think it is wrong to chase people out of town. Wenow bill de blasio feels have two cities. He is the mayor of all the people. There are there to new yorks . In every large city in the. Orld, there are two shanghais there are to londons. There are two parents is. Parises. People, theout the busboys and waiters will lose their jobs. The taxidrivers will lose their jobs. It is great to see you. Thank you so much for talking by this morning. Thank you for having me betty. Well be back in just a few moments on in the loop. You are watching in the loop. I am betty liu. It is 26 after the hour, we are on the markets. The s p closed just a hair below its record. We will see if it will make a run afford again today. Some are calling it a turning point. It is a step back on the brink of disaster. After being downgraded to junk, puerto rico is coming to market with a big bond sale. Who is good for everybody joins muni bond. In the thick they may be able to pull this off. Everybody who has any kind of muni mutual fund, they own a puerto rican exposure. They were talking about the entire market being at risk if they had defaulted. They may be able to pull off the bond sale. Those fears might diminish for a while. They have 3 billion in general obligation bonds. If it is oversubscribed, they saying aey are surprisingly good result for puerto ricos standpoint. Now they arent six month lows. In general come the climate for munis has gone away from the market. Theres a better feeling about puerto rico. They have a long way to go. They are making progress on their budget. Has been a huge lack of supply. Puerto rico is leading the way. There is enthusiasm for that. We will know until later today. The initial feeling is that this is going to succeed. Are you surprised . The downgrade may have helped. It created uncertainty in the market. If youre going to buy bonds and then get downgraded, you lose money. Now at least you know we stand. It does change the universe of potential buyers. They are held by mutual funds. They cannot buy it because of the rules that it is junk. This largely becomes a hedge fund offering. These bonds are so state and local, they are taxable. The yield is 15 . Local lot9 for of people. It is still a risk because the island still has funding only through 2015. It got into trouble by borrowing is not going to solve its problems by borrowing. The government has been aggressive. They are promising a balanced budget by 2015. Some analysts think that will not be enough. The yield curve is still inverted in puerto rico. Will it normalize . That is the question at this point. Thank you so much. That is economics reporter mike mckee. Congress is looking into why gm any National Hire a Safety Administration took so long to respond to consumer replay complaints. This was linked to 13 deaths. Stopped at any point. Sign aboutis to start the president of softbank said he is about to start a software. He would have the ability to compete against at t and verizon. The subscription staving service from rapper dr. Dre and jimmy ill find raised 100 Million Dollars. Beatz is gearing up. Investigators are still looking for clues to figure out what happened to the Malaysia Airlines flight the disappeared over the c three days ago. Ares from Nine Countries hoping to find the black box that can hold the key to this mystery. We are joined by megan hughes. We are also joined by john mcgraw. Megan, what happened to the transponder that helps airtraffic controllers track the airplanes . It is a huge question. We are talking about the emergency location transmitter. It is also called the elca. It is made by honeywell. Investigators do not know why it went dark after takeoff. It sends out a signal on impact. Pilots can manually activated. It did not work. It never happened. Haveexperts say it could been caused by a huge explosion. Separate from that, you have the black boxes that we talked so much. They are also made by honeywell. Honeywell said this plane was equipped with two. They are actually orange and not black. One was the flat flight data recorder. Wing movements, anything going of the engine. That you have the cockpit voice recorder. That does exactly what it says these are supposed to be sending out signals for 30 days after a crash. They can do that underwater for more than two miles underwater. That is what investigators are really hoping is found here. So far, they have not been able to trace anything from either of those. John, is it unusual that three days in we still have no signs of this airplane no debris . It is unusual. If an airplane rakes up on flight, there is a debris field. A Service Vessel of the cup objects. They will find things that are floating like seat cushions. If it hits the surface at high a debris creates field. It is dependent now much current there is or how far it spreads. I would anticipate that it will be found eventually. They have a massive search underway. I think it will end up finding remnants. And the fingers are good for a couple of miles. This is a huge search area. It is not very detectable very quickly. This airplane will be found. The water is not very deep, a couple of hundred feet deep. Reports have come out about been asking how is it that with all the technology and all the tracking that we are able to do with technology, how is it that in 2014 a jetliner as big as a 777 could just disappear . How . That is the mystery. What we know in this case is the flight crew did not rest the emergency button. They did not go into emergency mode on the transponder. That rules out a lot of things a could of happened. They either could not or did not activate that device. Typically, you have some kind of signal if they were dealing with a malfunction. It does narrow the possibilities of what has happened. Megan, what do we know about the investigators . They focused right now . How are they cooperating . There are several countries involved in uncovering the mystery. Forirst, they are looking technology. I did talk to honeywell. Boxes are thelack latest technology for what it does. It is not communicating back anywhere. It stores data. Ofse were updated in july 2010. Black Box Technology has been around since the 1960s. It is been updated. Into using space satellites. Vietnamese satellites and chinese satellites are going to be used to look for this debris field that john was talking about. If they are not looking in the right area, maybe that will help. Authorities, u. S. How much should they involved in this . Boeing 777. Lving a they have representatives on site. The faa has two representatives on site. They are still in the search mode. With the lookting at the records of the airplane. All of the background, trying to lend their experience to the search teams. They want to be as efficient as they can be. Megan, you have focused on the Technology Aspect of this. Have the expert you have talked to said the technology has to be better in order that the next time Something Like this happens it will be easier to find the and data recorders . Have they talked about improvements in the technology . It is that they talked about a lot. If you would rescan of history, this is unprecedented. Dont see a lot of cases were the black boxes are never found. We are still early in the search even though it has been several days. I do not think the book has been written on what happens here yet. Wants to solve the actual accident quickly. If you downloaded these parameters constantly, which creates a lot of bandwidth and is very expensive. And there is a lot involved. It would not help you necessarily find passengers. If this is a survivable accident, the pilot will be able to make a call and youll know the airplane is. If it is not survivable, it does not assist in the investigation. You do eventually find the black boxes that has that the tail. Detail. For will have some feel people who want Automated Systems on airplanes. We mentioned the transponder and the black boxes. The transponder is what wouldve sent the message back as far as where they were at. One of the Big Questions is why manuallyilot not activate that . I talked to the vetting and ministry of the tsa, he thinks there was something that unfolded quickly. There was some kind of huge explosion or wouldve caused the pilot to not do that. That would it be a human failure or just the way this transpired. The technology would not have the answer to that. One of the wilder theories i have heard is that this plane did not even crash at all. It was hijacked and flown to another location undetected. Is that possible . Within theit is realm of possibility. The closer you get to land, the easier it is to be picked up on radar. Most companies have radar focused on their borders to make sure there is no military incursion into the country. Coulde an area where you land a 777 a 777 and not have semiseated by radar or just visually would be highly unusual. That is a low probability. Thank you so much, john mcgraw. He is a formulate four deking. He former Deputy Director we will look at the new corvette. Loop is back in two minutes. It is time for the big numbers. Audi topped bmw in sales by 383 cars. Is a race to be the top luxury carmaker in the world. The m w has held that title for the last nine years. Rose faster. It still trails in total cars sold. This is a three way race. Customers have been complaining about the corvette stingray seats. When jimmy redesigned it, a revamped the seat area where you put your you know what. Matt miller talked to the made engineer behind the change. Did you test the seats that . I tested them substantially and extensively. I will say that i have been both in the previous corvette, which was not called a stingray, just a corvette, then i rode this thing in michigan. That is the engineer who designed the seat. Trained toa eight track trevor. One of the coolest expenses of my life. Ive driven a lot of cars on the track and been driven by racecar drivers on the track. Ive never gotten to drive on just a huge lock of pavement. It is called a black lake in michigan. You can do what everyone without having to worry about getting into any kind of accident. The gusseted design right . That guy you saw driving was the man in charge, or the kid in charge of the project. He is only 20 years old. He was 26 or 27 when he finished. The problem was the seeds lets put the seats up. These the new seeds. And they are gorgeous. More important, they offer real they are quite lightweight but strong. They are made of magnesium. They have a magnesium frame. Those of the new seats. Every picture you will see of just season with the new seats. No one would show a picture of the old seats because they sucked, frankly. I would assume the old seats. They did not look bad, they do not have any bolster support. They were very flexible when you needed stiffness. Track, is the stiffness. You need to be able to feel the roads and the bumps. The subsidy that. The old seats were just uncomfortable. Isnt that part of and not useful. You could not use them to control the car and feel the car as you should be. Whited take them so long to fix this . Was old gm versus new gm. The way the company was run before the bankruptcy was not necessarily the way a car company should be run. You could make the argument that they are doing a much, much better job of holding quality products. Everyone would agree. They put their full effort into this. They have gone above and beyond with the new corvette. It is amazing what is done to sales. M sales are down six percent corvette sales are up 150 in cost about 53,000. They raise the price by five percent because they were selling too many. The only thing they could do to try and get a man was to raise the price. Ityou want a good version, will cost you at least 55,000. As before you add any kind of special equipment to it. Thank you, matt. Theres a cool package on the web about it. If you go to bloomberg. Com and search for corvette seats or if you just google it youll be able to see it. I am told that as a shameless plug, matt. I have no shame it. [applause] very cool videos on bloomberg. Com. Versus herbalife. This time he is going after their operations in china. Up money. C is coming can they wrap its way to the top of the streaming Music Industry . Stay in the loop. Raise one hundred Million Dollars in a second round of financing. We have more on them. Theyre using this money to expand . They are a young company. Theyre looking to make a big splash. They spent a lot of money on a marketing. Then a super bowl spot. If you look at the Business Model, it is not a cheap Business Model to run. This is an on demand streaming site. If you put in a sauna, you get that song played. It is on the Radio Services out there like pandora where you put in a song and it uses that input to give you songs like it. But not that actual song. To deliverto be able that ondemand music, that is more expensive right to negotiate out of the record companies. Not to mention the fact that humans behind the curated playlist and not just computerized. They have a more expensive Business Model. There are more costs upfront. There are not adbased. If youre buying off a subscription, you had better be delivering the cam a Premium Service people are willing to pay for. That requires development costs. Investors are who . There are rich people. You have the billionaire with access industry. In of apollo. Roe wellknownther not investors, but very wealthy people are investing. I did know they could be others. They think it is cooler. These are the same people who brought us the really cool headphones everybody walks around with. Then a bunch of music executives that are running this company. Beenwoody and jimmy i have , they make this product cool. They are brand in another themselves. They have built up a strong catalog of songs and put them on the same beat as spotify. They are rolling out more and more services. At the end of the day, analysts say you need between five and 10 million subscribers to make a streaming music site profitable. We do not have those numbers yet. Theyould suspect that if come out with those numbers that they will try to reach those figures. Thank you so much, christina. Coming up, if you thought you were cool wearing those headsets, what about stone ground whole wheat bread and quinoa at the local health food store. That is the next big thing. Whatever kind of seed. Medical marijuana is giving it colorado and the bottom line a lv boost. In the loop will be back in two minutes. In todays this first that, bill ackman is renewing his fight against herbalife. Called it aan, who pyramid scheme. Hell make a presentation on herbalife in china. He says he will use documents gotten from a former employee. They show that they violated chinas laws about direct selling and multilevel marketing. Ackman shorted herbalife stock in a 1 billion bet in 2012. The investment has lost 49 . That is herbalife. It rejects his latest arguments. Arguments about rejected by wall street and washington. Now he wants to take them to china. There is no merit to his accusations as you might expect. It is at the six after the hour which means we are on the markets. Equity futures are pointing to a slightly higher open. They closed yesterday just slightly below the record. We may make a run for that. Jcpenney was one of the big movers and we will tell you why in a moment. Were on the markets again in 30 minutes. Talke next hour, we will with a billionaire ceo trying to shake up the broadband industry. Xbox one release is a title that they hope will change the title of the console gaming wars. We are back in two. 30 minutes away from the opening bell. I am betty lou. Futures changed little changed. Expanding the search of the missing malaysian jetliner. One of the two passengers traveling on a stolen air passport turned out to be an iranian with no links to terror groups. Shares of social giants have risen 32 this year. What analyst have to say about this book. On a mission. The stock bank billionaire ceo said he is concerned the u. S. Is lagging behind in key areas. Softbank ceo the u. S. Is lagging behind. They have the number one almost for anything in the 20th century. Automobile, electricity, Television Almost everything. Police say his plans to broadbandhe complete system in the United States. Joining us with moore, alec sherman with grand plans. Takes a billionaire from japan to revamp our u. S. Telecom system . Make no mistake about what this really is. This may come across as leave the u. S. Behind and need to improve, the whole country will. He has a very personal agenda. He wants to merge sprint and tmobile. He feels the best way for sprint shareholders to get a better return on their investment is competing with at t and verizon. He spoke with charlie rose and spoke about competing with cable companies, having wireless be more of a cable competitor come as well as out home. It is all just window dressing for the fact that he wants regulators to be allow him to merge the companies. How is he being received so far . Not very well. He has spoken to regulators for months on the trying to pick the message. Two different messages really. The first one was, we should not look at the wireless market as as threeers but players, at t, verizon, and a third competitor, because that is the only way we can disrupt the doowop believe. That message failed so he is trying a second play, which is we should not look at this as the wireless market but at the broadband market. We are also competing against comcast and what was time warner cable. Theoretically what could be a satellite company. If you look at it that way, maybe the market is bigger and regulators are ok with the merger. Said three heavyweight fight. I would like to have the real fight. The realseudo fight, fight. If i cannot have a real fight, by a massive price war that. S your pattern you undersell everybody. Yes. You are willing to postpone profits in order to gain market share . Exactly. I want to be number one. Talkingis what you were about, threeday competitors. He wants to wage a price war. How will that go over . That can be looked at two different ways. Regulators may say great, we merge the companies together. Now they can really put pressure on at t and consumers will when. Of done that and starting to do inventive things. Lowering the price and getting rid of termination fees and starting to pick up customers from sprint. That is the problem, tmobile has play the version of maverick and once to put the companies together and become a socalled super maverick and really put pressure on at t and verizon. How does tmobile feel about all of this . Hard to say. Deutsche telekom ceo has come out to say we are leaving the tea leaves and do not think the deal will get done anytime soon. He has talked to Deutsche Telekom since he acquired sprint last year about merging the companies so there is clearly interest. Deutsche telekom agreed with the deal. Theoretically, i think Deutsche Telekom wants a deal but maybe they might be more realistic saying we do not think the time is right right now or he is such a headstrong guy, he wants to push ahead and do this and force of will will get us through in so far seems like he is losing that fight. Thank you. Getting you caught up on other ralliednews. Jcpenney as much as nine percent in early trade after citigroup upgraded the retailer to a buy, saying the chain had a two percent gain for continued momentum. Chinas Biggest Ecommerce Company will pay 800 million for a majority stake and media group. That gives access to a Television Drama and film that the Internet Company tries to compete with . 10 holdings and. Aidu Blackstone Group at tbt and million 5. 5 billion for dates global. Fetch 6 billion. Back in washington, still feeling conservative heat for his support of immigration reform, marco rubio shifting gears in the u. S. Economy. The potential 2000 16 president ial candidate unveils ideas for jumpstarting growth in a speech yesterday in washington. Chief washington correspondent peter cook and more. The plan look like on the economy . It looks a lot like other inposals from republicans the past. Calling for a reassessment of regulations and repeal of obamacare and highlighted other ideas that are not getting the same sort of play in republican circles. Talked a lot about innovation. He laid this out in google offices in washington. Part of the message came directly at the hightech community. Of main message for the son cuban immigrants, he said the American Dream is basically a risk without major changes in policy and that unleashing economic growth. Lex here is the good news, there is no nation better prepared to do this than ours. Another American Century is within our reach, but achieving this will require to replace the antiquated policies and institutions of the last century with one built for the new era. Ideas hef the specific wants to overhaul the tax code in congress. He is calling for a National Regulatory budget. Basically a cap on regulatory costs in america. He wants to list the ban on oil exports. He wants to reallocate wireless spectrum and give more to the private sector to unleash innovation. One important idea for Tech Companies like google, he said he will introduce legislation soon to oppose internet regulation at the United Nations or some other regulatory body. This is an issue off washingtons radar but not off the radar in Silicon Valley in countries where Internet Freedom is not taken for granted. One issue he did not talk about in his speech, immigration reform. You get the sense this is an issue that has done damage to him politically and not running away from it but not exactly talking it up. Now. Ould be touchy right what about rubio running for president . Lex he said he is not made a decision yet. Is not made ad he decision yet. It is obvious from the holocene proposals. He has done several speeches in the past couple of weeks that he is trying to keep his name out there. Thank you. Peter cook. He will be sitting down with senator rubio later today to talk more about economic ideas. Stay with us for that interview. Moving and shaking this hour, Colorado Governor John Hickenlooper who is seeing a lot more green since the state legalized Recreational Use of marijuana. Innging in almost 2 million the first month. He wants to use the first 40 million in Marijuana Tax money for school construction. He called for spending more money on drug education and Substance Abuse programs. Trend ofad, a new grains making their way into mainstream eateries in an era. We will talk to a bigger to see what he thinks of this trend. The most anticipated video game of the year, titans ball went on sale at night. Our resident gaming expert, matt miller, has spent all night lightning. He only got a few hours of sleep that will give his take a moment. s first there was whole wheat bread. Then the country went crazy for key watch. The latest tell trend is alternative grains. Tried to fit that on one received. No longer the domain of health food stores, hippie grains making their way to the average american consumer. For more, we are joined by alix steel and one of las most reserved most revered bakers , alex walken bacher. I want to start with you. Get thebread trying to younger kids through the store. It is about healthier almond younger people in their doors. Trying to find an alternative flour. T flour and white they are testing lots of grains and traditional carb on students without freaking people out with weird ingredients. Barley and pumpernickel. These grains come right out after they start to sprout up before they become a fullfledged plant. They have more protein. As much as 18 routine. They are really easy to digest. Think of it more of a vegetable and less carb. What sprouteddea bread was. Now i feel educated. Just stay with me for a moment. You have been using these ingredients in your own acreage. You know a lot about these healthy grains. Does this all sound like a gimmick or is this for real . I think it could be for real. I think it is the start to something hopefully better. We have used wholegrain breads from the start, 20 years ago. This is something i grew up with. This was something on the table where i grew up in germany. Dense, rich, sweet and flavorful bread. The american that palate is ready for this yet. This is where the Big Companies come in. Do you have any concern when you have the big chain restaurants and Food Companies getting a hold of the ingredients and him moren it into palatable treat for americans. Are we diluting . I do not know what you mean by that but i think it is for the better. For instance. Organic, suddenly everyone has organic on their food. Almond milk used to be healthy and now you can get cherry flavored almond milk. You have to make it taste good so you might add it with other things. Exactly. Labor will always trump health. If it does not taste good, people will not go for it. That is the key. These Big Companies will put enough muscle behind it to stick with it and make it taste good. If it does not taste good, it will not sell it. How will you make them taste good how do you make them taste good . We use old editions. Traditions. When we started harvesting grains we put bushels together and they would lay them on the field. They were not processing food as fast as we are doing it now. These bushels would get rained on and would have a naturallysprouted grain. We believed early on all grains were sprouted so this is nothing new. This is something that happened way back when. It is the privilege proliferation of processed foods. I think when you hear Something Like sprouted whatever, you feel like i am exercising. The issue really comes in terms of supply. Take a look at this. Demand has been skyrocketing in the u. S. , but it is really difficult to grow. This is really about peru and bolivia bolivia. We may have demand for this, but we do not have that kind of supply. That creates volatility in the market. That is true. What is the next big trend you see in the bakery . What i would like to see or what i think it will be. Everything in moderation. I would like a teaspoon of really good tasting better than a tablespoon of margarine. I think portion control is a big issue and that is where we should focus our attention on. I think farm to table is a good idea and will stay but is it sustainable for every restaurant and chain there is out there . Absolutely not. These are very small pockets of improvement we are making that hopefully on the big scale will make a difference. Is your rule of thumb moderation. Everything in moderation and torsion control. Absolutely. That is where we have gone haywire in america in the past 20 years. . The Bottomless Pit pasta. That its very true. Thank you. No problem. Denimecause you douse a and blue cheese dressing on cale does not necessarily make it better or healthier. Thank you. Well. You to alex feel as coming up, microsoft has high hopes for xbox one for a highly today. Anticipated wargame released loop. N th eloe welcome back. You are in the loop. I am but a loop. Scarlett who has more. I am betty lou. Futures moderately higher right now. No Economic Data or significant earnings to speak up. The s p 500 near a record high. 10 year yield holding just below 2. 8 . Copper stabilizing today, up marginally by. 2 after pleading inunch leading the plunge metals. On the markets once again in 30 minutes. Counting down to the open with the top 10, the only trades you need to know about today. Starting with number 10 and target. The bigbox retailer being sued by swatch group i for selling watches that allegedly copied this file. They said it is inferior to their own and it is likely to damage the Swiss Company sales. We will stick with the retail game because number nine is Caseys General stores. Operating earnings fell five percent, missing estimates. They said the annual goal is to build or acquire up to 105 stores and replaced 20 existing locations. Number eight is dupont. Earnings will be challenged by the unusually cold Winter Weather and disruptions in ukraine. Maintaining their profit forecast for the year citing an improvement in global real industrial production. Number seven facebook. Shares have jumped 32 so far this year. Quarterly, facebook results beat estimates. Last month the ramped up the mobile business purchase for 19 billion for whatsapp. The ceoix, bon ton, stepping down after three years on the job. This comes as they report a seven percent decline in samestore sales last month, the Third Straight of declines. Number five, fuel cell manufacturer reporting of smaller or scored her loss but a 22 increase in sales. Cell has been one of the biggest gainers in the past month. Shares continuing to rise in the premarket. Number four, urban outfitters. A seven percent increase in fourthquarter profit. The companys namesake rant continues to struggle. The ceo said getting the brands back on track is the top priority. Number three d isicks sportinggoods dicks sportinggoods. Coming in below analyst estimates. Andoming in at number two, American Eagle outfitters. Reporting an 89 drop in fourthquarter earnings. That is below analyst estimates. Warning that Business Conditions remain challenging, issuing a disappointing forecast for the word quarter. Number one, boyd gaming. Valueda newly but deal. The stock is up 60 eight percent in the past 12 months. Waiting for the opening bell. Getting the trades of the call on the market. Want to bring in nick cole, chief Market Strategist. His call, stocks are finally outperforming bonds and have a lot of catching up to do. Is that right . Since last thursday according to your measurements cap go that is right. That is when stocks finally overtook ons in terms of performance. Prior, bonds had outperformed stocks for most of the First Quarter. Why is that . A real shift from very much of a straight equity move in 2000 13 where it felt very easy and commonplace to see stocks move higher to one where we are getting a lot more volatility and a lot more of the market we had prior to 2007. More volatility in turn. Scarlett has been watching the fix. It has picked up quite a bit. Watching the vix. Thevix may be well below 10 year average of 20, but has started to trend higher since early january. February. 2 in early it has been edging higher with higher lows. Complacency may be the distinction between last years bull market and the gains we see this year. Wouldnt that bode better for bonds . It does encourage a little less risk taking. We will see a risk for bonds are at the beginning of the year we thought it would go to 3. 5 and stay there and has not worked out that way. It will keep Interest Rates low but also good for stocks. You are clearly in the bull camp. It will feel like a bull market in 2014. We will learn the 79 we will get for the year versus the fairly easy trade last year of 30 . I know there are a few sectors that are in your favor. One of them is financials. Alex deal has been looking at how financials have outperformed the broader market. Not by that much. Barely outperformed the s p this year. There are risks that the sect or does not seem to be able to shake off in the short term. An analyst at wells fargo security points this out after he downgraded the sector from market weight to overweight. To thierry aiding price momentum price momentumg and lack of earnings optimism. Do not forget, overall the emergingmarket risk which we saw highlighted with the china trade data. You have a lot of headwinds in financials, but if the economy does accelerate the back half of the year, the yield curve will stephen and generally good for bank profits. It will be a slow trade. Financials just started to outperformed last week after a long time in the Fourth Quarter that was very tough. That is a big if. It is so hard. Whether you love or hate the weather excuse, it is here with us for quarter one. You will see investors give the past as far as q1 earnings. On the plus side, not a lot of clear earnings. I want to bring to your attention an oped that mohammed al area on mohammed oh arianne wrote. We had to think about policy makers and how they are a factor in the markets. He is essentially saying policymakers are squeezing the toothpaste. That they have so much ammunition for the markets. He says i suspect they will. Contributing to policy requests down the road. Is there a possibility we may see too much of a reaction from policymakers, that we may come to regret . Absolutely my number one concern for the market for the year. All markets do not die of old age but policy mistakes. The fed level or legislative level. Most often by monetary mistakes. He is pointing to the possibility you see too much tightening too quickly, and at the same time, slow down the economy or the weather affect is really the underlying strength. And the market begins to roll over. Is a great point that he makes, that we may be getting too comfortable with the Economic Data. Do you get the sense that the markets are getting a little bit too comfortable leaving the recovery is that strong . Our clients really do not feel that way. There is a lot of concern about the economy. People understand it reads very positive but are cautious about how much more growth we can get in the back half gdp. I would not say we are complacent and equities at all. What a lot of traders have said to me is how interesting the markets have stayed thelient amid some of pieces of bad news, whether it is the weather or ukrainian crisis were chinese export data. That that is assigned, maybe to your point, that this market that we will earn this rally that headed for a rally. It does feel that way. If we have been talking about this a month ago we would have had a lot more concerned about emerging markets in the ukraine. Get tosaid, we will seven percent growth in the market i think that it will feel 30 . Your do percent great to see you so much. Nicholas colas, chief Market Strategist at the curb for the convert jacks group. The market releases a much dissipated update to the operating system. We have known him by many names and seen him wear many hats. Gambleest 200 million could be his most ambitious yet. Here is a look at the top tech stories. Ebay ceo john donahoe received 14 million in total compensation last year. At 53 drop from 2012 when he was ranted a lot large stock award. Was only 82 because the company fell short of the 2000 13 financial goals. Apple has released a software update. 7. 1 implements new design changes and fixes bug that causes funds to crash. Causes bones to crash. Analyst on wall street time to figure out a spoke huge rally. Shares have risen 32 so far this year, compared to an average of one. 6 . 38 of the major analyst to cover the company give it a vibrating give it a buy rating. Catch the latest in tech and media every day only on bloomberg west. Been called many things, around for, fashion icon and can soon add media mogul. Have ac does not it used to. E back in the day there used to be american bandstand, before that. D sullivan soul train. There was a place that you could go to for music to tell your story. Now artists we find ourselves going to dancing with the problemwhich is not a or performing even on good music ismerica and getting consumed of the highest rate ever. Audiences at concerts are of the highest rate ever, and i saw the opportunity. Withephanie rule joins us this. He goes by diddy. Remember, he started as an agent. To start bad boy entertainment. He is the man behind the rock outcome ciroc vodka. He is bidding to buy vuse. To get moreis eyeballs. Widens out the distribution platform. He will go from being a 22 million homes to potentially 74 million. He is making a very big way here. I would compare it to al jazeera fighting current. Buying current. I will be the place that will give birth to more macklemore and more independent artist who want to start their own record labels. Remember what macklemore did and independent artists. They are now connected to a big label. Back in the day you needed to have a big record label behind you to have a big imprint. He says i want more independent guys and i will help make them much more independent stars. He wants to feature them on his channel. They do not have to be bad boy artist. He created it in the fall and outgoing bigger. What about the thing where artists are being discovered online . I said to him, why dont you just go to youtube, half of the people are going just to look for music. He said because you do not necessarily one to completely leave television. You watch television and i watch television. He is going to be digital and on the television network. Much like magic johnsons network, there is a destination for minority owned networks. So far it has made sense for him. Revolt part of a group of networks that comcast said they would back as part of the deal to get the Nbc Universal acquisition deal through. What does he want to do with revolt . More eyeballs. That is exactly it. He gets more eyeballs, he will get more advertisers. Does he want to create another mtv . He Still Believes there is a huge destination for music. Mtv has taken a turn. I said if it is not work for mtv, why do you think it will work for you . He thinks of it as a destination. Think about it, dancing with the stars is a humongous hit. I love soul train. I like the real world. Season like 846. I saw a guy on the street recently and i realized it was an original real worlder. The same age as me. Thank you. She will talk to another music mogul at 10 00 eastern time. Russell simmons has a new book out. Do not miss that interview. I am straight hiphop. You are. Turning the tide of the new console battle. Moreloop for ore details. Time now for the global outlook. Information about the missing malaysian jetliner. The men traveling with stolen passports were iranian and had no link to terrorist organizations. In the meantime, no wreckage found in a search today. Italysl economic news, bank posted a record 21 billion loss in the First Quarter after setting aside money for bad loans and writing down goodwill. Unicredit announced a fiveyear plan to strengthen the companys finances that a clue did included eliminating jobs. The Global Leader in auction rate action auto sales. Number one for nine straight years. A record to be broken. Titan a new record release game released by microsoft and called exclusivelyailable to xbox one. Helping to boost sales of the willum console, which rival playstation four. Matt miller has been up all night testing it out. Turnaround. How good is this game . It is insane. I have to wear these glasses because i have literally been awake all night. Im not for an average playing this game. Those classes are part of the game, right . No. I went to gamestop at midnight and waited in line for a long time out in yonkers, not the met with metropolitan hub of new york. It was packed. I went to best buy and picked up this game, along with a number of other contraptions that go with it. It is such a good game that this morning i gave serious thought to just quitting my job and staying home and playing the game until i was hospitalized. A lot of people i think will do that. The effects on the Global Economy of the game like this are probably a mess. I hear there are gamers that make lots of money just playing video games. A lot of tamers really have run into Health Problems because you lose track of time and beget forget to hydrate and eat and eventually passed out. Happened to a kid in ohio and happens to people all the time. The most important game probably for microsoft to come out since the original halo in 2001. This is a game they hope will thee the console sales to point where they will not tell us how many they have sold because it is so embarrassing. Why isnt lagging behind . A number of reasons. It is seen as a dedicated gaming console. It is for the total nerd are never ones to leave his couch to sit at home and just be fed she does while he plays. But the xbox seen more as a broad solution to a lot of things in your living room. You can watch tv through it. Use itunes through it. You can search the internet through it. That is maybe one of the reasons. I personally am a bigger fan of the xbox because halo got me addicted to it back in 2001. All man xbox game and i am never used anything else. That is what they are hoping they will have with titanfall. This is created by the people who made call of duty. That game has sold 10 billion worth of copies. That embarrasses any kind of movie. Do you want to wear the things by the way . They look so good on you. You can play tonight through next week. When i only have a few hours of sleep, i will show up with the glasses on. Tomorrow the former sack ceo joins me on the state of retail. Recovering from the when the whether. That is tomorrow at 8 00 eastern. In his 56 minutes past the hour. That means Bloomberg Television is on the markets. The bull market in u. S. Stocks may have turned five years old this past weekend, but you are not seeing much evidence of it right now. 500 little changed, down about three points. 10 year yield a sickly unchanged. Copper prices giving back a little bit after yesterday plunging on the bigger than expected am actually unexpected plunge in chinese exports. Copper continuing to stabilize. Etting to our story of the day the bull market may have turned five years old, but it really does not mean the financial crisis is over. The amount of debt around the world has climbed to more than 40 to 100 trillion since the start of the crisis Us Government has borrowed to pull of recession and companies capitalizing on low Interest Rates. Should we be worried about a rash of defaults . We looked into all of this and joins me now with answers. Are people concerned about a rash of defaults given the economy has seem to stabilize . The default rate is still pretty low and are not that concerned but are they what they are concerned is will the economy be able to grow to justify the high prices and will they be able to justify at really go really low yields . So were really not going to see if the fax of the 100 trillion debt load until rate start to rise. As we have seen the rising debt loads continue to build over the years, demand for the fixed income products has kept pace. What have you heard from the people you speak with . People still going into bonds. Rates are still low. Rates are still dominating the economy. Yes they have slowed the monthly bond purchase postal funneling billions of dollars into the economy by buying treasuries and mortgage bonds. There is still a very Good Environment and basically taking yields at low rates and keep thing asset prices high because there is demand and a sickly the weight investors feel, where else will they go . Will they go into stocks . There has not been the proven track record of accelerating growth. They are still looking for income. Especially when stocks are at record highs. Who are the holders of the debt . The Federal Reserve constantly vying for securities backed, but who is purchasing the debt, fixed income products . Everyone from retirees to Pension Funds to sovereign wealth funds. Everyone. Not the banks as much. That is a byproduct of the financial crisis that regulators wanted to push off the ballot sheets of banks that everyone is holding it. Looking at the yields, i read that yields on all types of bonds from corporates two governments, averaging two percent. Put that into perspective for us. How much has that come down . The peak was 2008. In 2007 yields were up 4. 8 on average. They have come down from 2007 levels. It is still a low rate environment. People are still doing that. Like thank you so much. Joining us from bloomberg news. On the markets once again in 30 minutes. Live from bloomberg headquarters in new york, this is market makers. Empire building. The hiphop mogul known as did he is already a success in music, fashion, and food. Making a 200 million bid for a tv channel. Back to the bond market. Puerto rico returns to the first bond issue and over two years. Can i buy enough time to restructure its struggling economy . Class goodbye to animal house. The fraternity will talk to a professor on a oneman campaign against. You are watching