Lot of sleep last night. Equities have sold off in the last week. Equity futures are again in the red. Jointing cks are joining the 20 club. These companies have seen stock 20 . Ed wendy percent more on the markets, i want to bring in mike reagan. What is going on . This got us all by surprise. It was intact stocks and now it is broader. Stocks and now it is broader. Early march, late february, we saw this rotation out of the high valuation momentum stocks and rotation into boring, traditional stocks. Etfly, the industrial brought in the most inflows ever since it was created. That rotation last and for a while. We have seen more selling of the high flyers without as much rotation people are getting out, basically. Is this the start of a meltdown . It is hard to say. Goldman sachs but a firm, precise number on a chance of a 10 correction. He said there is a 67 chance. I dont know how he gets that number. Apart from that, he expects the market to close up a little bit. We could see a real correction between now and then. People have been waiting for that. Saying this is the washing out we needed in the market. Are we expecting to see another big selloff today . It is hard to say. Pretty flat market right now. Earningsews is alcoas after the bell. It marks the start of the earnings season. Earnings are expected to be flat. That leaves a low bar for companies to be. Thank you so much. Back in washington, the white house continues its push to reverse income inequality. The president will be signing to executive actions later today to increase transparency in federal contractors practices. So mattingly joins us. What will these executive actions actually do . Iswhat you are seeing today something the president can control. Federal contractors. He is putting new restrictions on how they can operate. This executive order this president ial memorandum will direct the department of labor to collect information and data on Pay Practices, broken down into race and gender. Trying ent will be he will sign an executive order order that will bar federal contractors from gag orders. Employees are not allowed to discuss pay. This should add transparency to the Pay Practices of federal contractors. Pay they see potential disparities, the hope is that they self correct them. How closely is the white house cooperating with Senate Democrats . They are hand in glove. The senate is starting their own move on an equal pay measure legislatively. Harry reid is bringing that to the floor today. Republicans feel like these proposals are purely political. They feel like these are show boats, show initiatives. It is not about equal pay, not about trying to shrink income inequality gap, it is about trying to score political points with parts of the countries that the white house and democrats will need in november. The white house pushes back heavily on this. That is why you do not see anyone coming to the table to negotiate. The white house is urging women to sue employers for wages from a nation. How big of a Chilling Effect is that going to have on employers and businesses . This is an issue the white house has been dealing with and sparring with business interests and themselves and democrats sent they started since they started with the Lilly Ledbetter act in 2009. That businesses and republicans have a problem with is that they think all this does is open the door to more lawsuits. This is not necessarily productive policy. It is not something that will squash disparities that are there right now. Economic officials point out two things. On these executive actions today, this is about transparency. Shunning a light on Pay Practices, forcing people to self correct. Issue the department of labor will use this for their own enforcement. It might not have to do with lawsuits at all. If the federal government sees disparities, they will act on their own. Thank you very much. I want to stay with jobs. The Senate Passed a bill to expect jobless benefits to 2 million americans yesterday. House republicans are showing no signs that they will move ahead for this legislation. Joining me right now is roger altman, chairman of ever core. Roger, i know that you have advocated for extending these jobless benefits. Do you believe this has any chance in the house . It is certainly uphill and the house. Most people think the answer is no. They should be extended. A lot of people misunderstand this issue. It is being debated entirely as a matter of social justice. Everybody has a different point of view on that. I think it should be debated as economics. Live inmericans families which are in 60,000 per year or less. Income hasehold 52,200rom 54,000 to right now. Theres a tremendous swath of american citizens, a huge percentage of the country, which is suffering declining incomes. They in turn have no purchasing power. It is not just a matter of social justice. The social justice argument is very strong. But i think this is a matter of economics. We will grow about 3 this year. Better than we have seen during the crisis. That is really not a great growth recovery rate by historical standards. One of the reasons we can do it faster is because we have a tale of two cities in the consumer sector. Extending those benefits will help close that gap, as you describe. Not the only thing we should do. I know you advocate for other measures. Republicans are saying, we will extend those jobless benefits. But we want to pair them with job creation measures. One of those put out this improving the keystone pipeline. Should the democrats compromise on that . That is a very difficult and contentious issue. I dont think it is a big issue in terms of energy policy. I dont think it makes a huge difference, whether we approve it or dont approve it, including environmentally, i might add. If i were president obama, i would approve it. But i dont know the answer to that. Whatever we can do at this point to create jobs, a big infrastructure initiative, it is a question of how to pay for it and administer it. I think we should extend benefits to the longterm jobless. I think we should raise the minimum wage. I think we should not have cut food stamps at the end of last year. This large sector of america, at least 40 , that are suffering declining incomes and cannot spend. Two thirds of our gdp is in consumer spending. One reason we cannot grow faster than 3 is because that Consumer Recovery is limited by this sector of the population which is doing so poorly. Do you support the president focusing on other issues of the labor market . Focused one extending jobless benefits and raising the minimum wage. They are also talking about closing the gender wage gap, making pay more transparent among federal contractors. Are these just side issues . Are these issues that they andld put on the background focus on key once to get republicans on board . No. We are in an age of severe gridlock. Impossible to pass anything. If you are in the white house and you are faced with this gridlock, you would do anything you could to try to address income inequality. The president said it is the challenge of our time. And to get some improvement in the job market. You would do anything you could to get movement,. Stay with me. Altman, the former deputy treasury secretary under president bill clinton. Vercore, jeffre christensen is running for the new york state assembly. If he makes it, he has plans to push for a higher taxes. He was once a jpmorgan derivatives trader and work for Goldman Sachs. He said he is not angry at the barons of wall street, of which he was one. He is worried about the other side. Stop laughing. General motors facing a massive recall of 7 million vehicles indicated that work on those cars would begin on monday. The instructions to Vehicle Owners say that beginning april 7, parts will become available for the six affected vehicle models that have been recalled. Zero gmis morning, dealers in the tristate area actually have those parts and cannot begin those repairs. Matt miller is joining us. Is that a surprise . I will explain what gm says in a second. We have a whole team of people calling around. We have called about 50 different dealerships. None of them have parts. A lot of them said, the parts are not even in the mail yet. It is not like theyre going to be here tomorrow. It is going to be a while. It may be that General Motors received them over night or early this morning and put them in the mail. They were not there yesterday. There were reports that there were in the wall street journal. I dont know where they got their information. General motors said, we always said beginning the week of april 7. You have to give us until next sunday before you can hold us to our word. Is that legitimate . I guess so. Is an incredibly high profile case and really important for gm to get right, they do not necessarily need to rush it. As mary barra testified earlier last week, as long as you take your keychain off the key and you do not have anything that is going to hit it, you should be ok. She said she even let her own son drive a chevy cobalt with this defect as long as he took the keychain off the key. Drive the car with the keychain off the key. It is going to take a while to fix all of these cars. It will be about six months. It will be until locke tober until they are done with this. They are not in a super huge until it will be october until they are done with this. They are not in a super huge hurry. They need to tell the truth about everything. Thank you so much. Coming up, deal or no deal . You are watching in the loop live on bloomberg television. We are back with roger altman. It is something of a bloodbath on wall street. Stocks have been doing very well. I am talking about the exodus of executives from firms. Stanleysen morgan former head of equity sales become ceo of an Asset Management company. Cavanaugh left jpmorgan to go to carlisle. A senior banker said to me yesterday, it is almost as if, is there anybody good left at these banks anymore . As someone who competes against them, im sure i can assure you there are lots of good people. This outmigration has been occurring for some time. We knew this. The events of 2008 changed that dynamic and accelerated it. , so many of the largest institutions, the universal banks and bank holding companies, continue to be in transition. That as a result of the stress test results and the uncertainty those created. Is a sense that these institutions are reconsidering their Business Models, that they are under a great deal of regulatory pressure, that it will be more difficult than it has been in the past. So, some of the talented people have begun to migrate out. Some are going to private equity, some are going to hedge funds, some are going to politics. Gus christiansen. Some are to independent firms. It has been going on at a high rate since 2008, not starting last week. Has accelerated . Does it feel like it has accelerated . No. There may be a few big headline guys like cavanaugh, but i do not think it is accelerating. If we step back and look at the a market as a whole, you are seeing and outmigration of talent and business from the largest platforms to the independent firms. A lot of the independent firms are much larger than they used to be and there are more of them. Not a development as of last week or last year. It has been going on for five years. When you recruit, whether it is middle managers or senior down to more of the junior sell on is your your banks different than it was a few years ago . It honestly is not area im not sure if it would be for any of the leading independent firms. Our arguments have been the same for many years. They honestly have. They have to do with a very different model that a firm like ours has. It is not for everyone. Some people think that some of the largest firms that have become so large. Others think they are so much in flux. A more focused Business Model is more attractive to some. It is not for everybody. There is a focused migration. Stay with me. We will talk more. Coming up, leading the way. They company set the pace. You are watching in the loop live on bloomberg television. Good morning. Bloomberg television is on the markets. Scarlet fu has a look at all that is selling. We look to be mixed right now. We are mixed. Futures are little changed. Nasdaq futures doing a little better than dow and s p. There have been no significant Economic Data of note today. Optimism rising in little more than economists had forecast. Alcoa is unofficially kicking off earnings season later today. The United States, emerging market stocks continue to move ahead. Up emerging markets index is 0. 8 . The dollar is weaker this morning, particularly against emerging market currencies. , by prices are moving up more than 1 . That is a run date 2 week high. New 2 week high. Thank you so much. Here is a look at our top headlines. Samsung posting a second straight drop in quarterly profits. The biggest maker of smartphones blamed weakening demand for the slide. They are counting on the fifth version of the galaxy phone to boost sales. 9 billion in damages over a diabetes drug. The two companies had the cancer risks of their drug which is used to treat type two diabetes. Likely bewill reduced. Tensions are mounting in ukraine. Several hundred protests of prorussian demonstrators seized a government demonstrators and said they are forming an independent republic and demanded a referendum for secession. The u. S. Said is it it is evidence that the testers may be paid agitators. Only four months into 2014. It has been an extremely busy month for deals. Bankers are sings a breakthrough from the flatness. Cristina alesci mama stirs this market. Market. Ors this is this a turnaround, perhaps . A lot of optimism. Not surprising. Bankers are paid to be optimistic. We did see a pretty large bump up in the value of deals getting done. We have seen a lot of big deals. If you look at the number of deals happening, that is flatish. Sometimes bankers can make more money doing lots of little deals than one big one in the same venue. Both metrics are important. I spoke to the global cohead of m a. At Goldman Sachs. Bigealth care has been a driver. We have seen a takeup in consumer activity. If we had three or four engines running, that would be fueled to a recovery. Industrials are likely to see activity. There are still digestion the needs to happen. If you go back over long period of time, financial have been a big driver of m a. Now come on the industrial that, we have already seen volume will be higher this year. A mergereen build as of equals between two large cement makers, making the largest cement maker. Governments are elected to see any banks get any bigger here in the u. S. Maybe a different story in europe. Last year started out with a lot of optimism. By the time we got to the end of the year, when you look at the value of deals, they were at the lowest level as a percentage of market capitalization since the early 1990s. He have to be somewhat cautious about being too frothy or optimistic about the deals going forward. There is another thing that bankers are worried about. Other then some geopolitical issue, the biggest risk to mna recovery is likely to be regulatory. Youou are in a board room, do not want to be in a position where you announce and you do not get it done. The Regulatory Environment as concerning for people. Hang on, i have got to get rogers take. On this interview. Do you agree the biggest risk is regulatory . Was a greatat report. Bankers are not paid to be optimistic, they are paid to be productive. To me, the big question is why has notsible turn happened sooner. People thought 2012 would be above 2011 in global m a. People thought 2013 would be above 2012. Too soon to judge whether this year, even in a moderate way, will break out. What was holding it back . Fundamentally, uncertainty. If you step way back and think about this in historical terms, what makes for m a up cycles . The answer is the perception and the reality that Business Conditions are improving, Strong Equity markets, robust Credit Conditions and Interest Rates. Just plain confidence. Those items are in place pretty well today. They were relatively speaking and place a year ago. They have improved a bit. The u. S. Economy will grow 3 this year, last year it grew about 2 . We have a slow improvement. It is too soon to say we have a big upsurge in deals. Good but quarter was there have been expectations over the last two years or three years that have not materialized. We will have to wait and see. You have to measure deals on dollar value on the number of transactions, each one together gives you the full picture. The full picture of m a. They both have to be up for a strong market. What do you tell clients to get them feeling confident . That is essentially what it comes down to, the Management Team feeling confident. That is not the role of bankers. Bankers are not going to produce a level of confidence in management unless they already have it. Banker, speak for every i do not think any good banker goes in and says you ought to be confident and get over this hesitation. No, they know their business better than any banker does. They know there are look better than any banker. They either have that level of confidence in their own business and interests and expansion, or they do not. Havee thing betty and i talked about is the idea that some young Tech Companies are not using bankers, like facebook. Those you get to companies . How do you successfully convince them that your services are valuable . Longat has gone on for a time. Not every single deal around the world involves bankers. It is not new that a deal here or there would not. It is very antiestablishment to say i will forgo bankers. Some companies that have made a thing out of doing deals on their own. There are some companies that have good deal technology internally on their own. I do not think that is a big trend, though. Of course you would not. I think the data would show it is not a big trend. It happens. There is nothing bad about it. The world does not revolve and should not revolve around bankers. Even though some people think it should. Have bankers then behind the christinas point, on understanding the issue and cultivating those relationships with Tech Companies . Im not talking about google and facebook. It is the younger companies. First, there are some bankers, particularly those based in the valley, that are really good. Who . Here andt going to sit name names. There are some very good ones. Is a particularly hard sector because it is changing stay at they to forefront of if you are a banker as opposed to someone working in the technology. It is harder than other industries that do not change nearly as fast. That is as big a challenge i can think of for a banker in terms of remaining at the forefront. I am sure there are companies around the world who satan as my bankerss who say no knows my business. That is a challenge. Said,g at Goldman Sachs there are a lot of sectors that are buoyant. Energy has been the number one sector around the world. Health care is very active, financial institutions. Not necessarily at the big bank level but in general. General industrial and consumer. The feeling in business is pretty good. It is still too soon to say 2014 is a breakout year. Be an electionll year. I wonder if anything is going to really change on the regulatory side or the uncertainty side until we get past november. Twohe regulatory side takes forms new legislation i think youre right, there will not be any newly deflation and a new legislation of any time. The second is the problem of regulations. Or obamacare. Not all of the regulations have been issued. Dodd frank, only about half or two thirds of those have been issued. There is that process going on every single day, regardless of what congress is doing. In some respects, that is very important. In volcker rule is still discussion and formation even though the legislation passed three years ago. There is a lot of Regulatory Development going on. The courts also play a large role in interpreting some of these. Biggest think that the thing that might hold back a recovery in deals as regular touring. Is regulatory. The number of situations you run ions where the regulator approve letter you can get something or not is very rare. The big ones are driving the volume. Then maybe jetting volume on the . They may be driving volume on the dollar side. It is often the revenue that drives. The correlation between size of deal and size of the fee is not that close. It is important to look at the number of transactions rather than the dollar volume. If you have one deal, it might distort the dollar volume figures. We look more at the number of transactions. We will get some final thoughts with roger altman. Cristina, thank you for that on m a. Got much more coming up. New york giants wide receiver telling us why dancing and singing are so important to his career. Stay in the loop. We are back in two roger deputy treasury secretary under bill clinton. I want to ask you about Michael Lewis. We have talked quite a bit about different pieces of literature that you are involved in or reading. Have you read Michael Lewis flash boys. I read the excerpt, but not the book. What is your view on the firestorm that has been created from Michael Lewis by the way, an area of the mark through investor does not know much about. It has become a flashpoint on whether stock markets are rigged. A talentedlewis is writer. He has got a wonderful, will release a clever, knack for picking out an issue and drawing attention to it. Know the answer to the question about frat running. If it question about front running. In wall street but not in the middle of high knowency trading do not the answer either. It will take some time before various inquiries will determine whether or not it is true there is front running. Are the markets as a whole rigged, i dont think that is fair at all. These allegations, are they going to deter investors retail or other . I doubt it. There is a strong argument that these changes have reduced the transaction cost to investors rather than raise them. I would be surprised if it deterred investment flows or changed investment behavior but it is an interesting question. I do not know the answer. Some of the Online Brokers like e trade and tg ameritrade shares declined. They plunged based on the kneejerk reaction. Given the fact that the sec will be looking into it. Other regulators are now focused on this. About ourthat say regulatory system that an author comes out with a book and then regulatory authorities are prompted to do something . What does that say . That aside, there is a kneejerk reaction that if someone says it is rigged that creates a psychological effect on investors. I do not think the authorities have any choice given the amount of attention that he has very cleverly shined on this question. Just to look like they are doing something . One needs to respond to Something Like this. The flash crash, you have to respond and get to the bottom. It is good that they have started to do that. Lets see if they do, what they come up with. In terms of whether shares of Td Ameritrade and e trade should be off, i am skeptical this will deter investors. I doubt it. I think fundamentals are what drive investors in terms of are they optimistic or not. Fearful events ukraine and so forth. You that occupy consciousness rather than this. I would be surprised if this deter flows into equities. We will see. Is this occurring, front runn ing . I do not know the answer. Roger altman from ever core. Coming up, the season premiere of game of thrones was actually bad for hbo. We explain. Starbucks sells 4 billion starbucks sells 4 billion cups of coffee every year, what happens to all those cups . Stay in the loop. Time for todays big number. 6. 6 Million People tuned in to watch game of thrones on hbo. The largest number the network 2007. En since the night would have been a major victory for hbo if the number of people watching on the online app had not caused it to crash for two hours. These days, it is all about building a brand. Who better to take a lesson from than a household name like new york giants wide receiver victor cruz. He touches on everything from signing with an agent to establishing a Signature Dance move. On and off the field. I would like to think of myself as a brand first. Athlete andes the everything else. I like to look at myself as a walking brand. I am fortunate to grow up about five miles from Giants Stadium and to play with that team. I love being here and i love everything new york entails. The culture is perfect for not only myself but my brand as well. If i had to pick one person to emulate, derek jeter. He has been able to stay in the spotlight and do things that are great. People love him here. I am always humble and always the guy that will take hundreds of pictures. I am never the guy that will say no. Almost to a fault. I think having jayz there and someone that i can pick up the phone and shoot a text message to or talk to is always good. They do a good job of knowing you, knowing that person and molding things around you. Thanks, mom. Boys, settle down. Growing up, everything was nike. If you did not have nikes, you were not cool. Nike was always part of my culture. It just naturally became a part of my brand. Do this fore to them. It is cool. I created this rant. This brand. When i am walking through the grocery store, someone says do the dance for me. Right now . Something that was kind of preplanned but i did not think it would go this far. Lessons in building a brand. Coming up, speaking about big brands. Starbucks has big plans to recycle paper cups you see everyone Walking Around with. They use about 4 billion of them a year. They did not seem to be going anywhere. What is happening to these cups . I want to know. Yahoo and microsoft jumping into the online content marketplace. Will Marissa Mayer succeed in a push for hollywood alist spurs . What will they do to stand apart from the crowd of content, content, content . Stay in the loop. Todays this versus that we are talking about starbucks and the reality of recycling. Back to where i can talk more about it. Starbucks has been talking about recycling cups. That may not be enough. This is the Worlds Largest chain of coffee shops. Seems like there is one on every corner. They sell 4 billion disposable cups every year. 60 years ago, they announced by 2015 they would announce branches. At all that is the reality that has intruded on plans. The company says it will not meet its goals. It is recycling at only 30 of stores. Customers do not throw away enough cups to make recycling an option. Georgiapacific says all the cuts used in starbucks cups in one year is less than a weeks worth of production at a paper mill. Bloomberg is on the markets. Equity futures are slightly higher after we have seen a huge selloff over the last two weeks. On the markets again in 30 minutes. Coming up, Budget Hotel Chain la quinta will become the third blackstone owned hotel chain to go public in the last six months. Where will the price shares . Pfizer announces a new redmond that has the potential to be a game changer in the battle against cancer. We look inside their lab. We will be back in two minutes. You are in the loop. Stocks will be a little bit changed. Mostly flat at the open. The s p has slumped, giving up its gains for the entire year. Duringocks have soared the bull run. A second factory in north america because of rising demand for its cars. A billionpending dollars to expand a plant in South Carolina. The u. S. Accuses russia of stirring up problems in Eastern Ukraine like it getting crimea. Ukraine is cracking down on prorussian demonstrators in the region. In the u. S. And the public markets, blackstones hotel sell, la quinta, filed to over 37 million shares for up to 21 apiece. That would give them a value of 2. 5 billion. We are joined by leslie, who covers the ipo world for us. The third blackstone a lodging company to go public within the last six months. We saw hilton and extended day. They are up since their ipos. This is one company that blackstone is hoping to have the same kind of success. What can be learned from hilton and extended stay . Wasne thing blackstone did steered them away from being a real estate oriented and more of a franchise model. And are nota brand as exposed to fluctuations in the Real Estate Market because those properties are owned and managed by someone else. What blackstone did with la quinta is the same thing. They made it less exposed to the real estate side. Were they looking to sell this at some point . They were. A dual track on process. They decided they could get a higher valuation in the public market. Looking at some comparative valuations for la quinta, it is coming out at a premium to hilton and extended stay. Earnings is what they are looking for at the range. D of the they are expecting a high amount of demand. Is taking this public after a Strong Demand for hilton and extended stay. We think they are expecting the same success here. It will be interesting to see where they price. They priced in the middle of the road for the other two lodging companies, so we will see if they third time is a charm here. Thank you. Leslie, of bloomberg news. Breaking news coming out from the imf. Lets get to scarlet fu, who has more on this. Yes . Not have the headlines as of right now, give me two minutes. Let me take over. I think i have got this is the imf World Economic outlook. In terms of the numbers, we have a whole bunch of numbers for europe. Lets start with the euro area gdp. It has raised the growth forecast to 1. 2 for 2014 and 1. 5 for 2015. , japan has reduced been cut down to one percent. For brazil, we are seeing a downgrade in economic outlook. Reduced downbeen. O 1. 8 and for 2015, reduced i will look through the headlines for the u. S. And the rest of the global markets, but again, raising europe and cutting japan. Scarlet, thank you so much. Scarlet fu with the imf heads. Moving and shaking this hour, time warner ceo, jeff bucher is has taken another step towards separating the magazine business from the rest of the company. Time warner will not be guaranteeing the debt. They have been the worst performing time has been the worst performing portion of time warner. The competition to create the next hit tv show is heating up. There are a lot of new players in the game. Can yahoo and xbox compete with netflix . Why walk when you can run . Spritz . When you can a new app that could change the way we read. Stay in the loop. We might see more jobs added in the u. S. Bmw may be expanding further in north america. Theyre considering building a second factory. Chad,s in berlin, who broke the story for us. What is behind this possible expansion by bmw . About going where the growth is. The u. S. Is already bmws largest market and sales continue to rise for them. Sales inn contrast to europe. The European Market is starting to come back, but that is after six years of declines industrywide. We are hearing the new factory may build the bmw 3 series. That is the best selling model. That would help them compete against mercedes in the u. S. Mercedes has said they are going to start selling building their best selling model, the c class in the u. S. And mercedes are locked in the heated battle for the top spots in the u. S. This is something that is on bmws mind. This comes on top of the announcement by bmw to expand that their South Carolina factory. What will be done there . It builds suvs for the bmw group. Those suvs are exported all over the world. They announced, a couple of weeks ago, that the factory will be increased. Production capacity will be increased and they will add another suv called the x7. When this capacity expansion is completed, it will be the largest factory worldwide, surpassing the factory in germany that has held the position since the company began. Thank you so much. Chad thomason, who broke the news on bmw adding a second factory in north america. This term back to media. A oh well, expanding its push into digital content. For of itsew original web series. It will feature some of the big hollywood names like Sarah Jessica parker. Johnt to bring in stlichman, our senior web coast correspondent. That they haveg surpassed lou and apple in streaming video usage. More people are streaming more video on amazon than on hulu or apple. John, let me get your take on that. It is nice to get some numbers from amazon on how many people are using the video service. We have not known exactly how big a service is and how it you can compare it to netflix. Amazon is probably hungry to share some information so that we can put its growth into context. Video service has been growing. You hear about how many streams the hunger games gets. In terms of the Amazon Streaming Service shows, you hear a lot about the growth of the business. , especiallyprise since they have a set top box. You are the analyst. How do you value Something Like somethingd mark like that . Measured as precisely as television. We see the nielsen ratings and see that people spend four hours a day on average watching television. They spend about 10 minutes a day with online video. We have done survey work that would tell us that the leading things that people use online are youtube and netflix. Commuters consumers are using netflix. Amazon prime was down in the list, closer to 10 of consumers. For them to announce they are doing somewhat better puts them closer to the upper tier. The backdrop is that you do see video transforming. Cablee had a traditional pipe that is exploding to online distribution. Video is the next generation killer app. It is a challenge for the traditional distribution companies. You hear about the millions being put in place by Marissa Mayer and now Satya Nadella going big with xbox, is that good money being put in . With the Tech Companies are finding out is this is a different business. When two years ago, the applications or software for computers and laptops. People like yahoo and amazon, they want to spend a great deal on their own shows and own that killer app. You only guy that has had success is netflix. Their success was incredible. Incredible and unpredictable. For yahoo or amazon, to match that level of success, it is not likely. Is someone going to have to get pushed out . Only have so many viewing hours in the day. Everybody is in a position to grow. The way people watch television is changing. There will be some that are mightier. If you look at the Business Model, you need both of these things. You highlighted what it is that people are streaming. Notmazon, most likely it is original shows. It is likely the kind of stuff that amazon is able to get through partnership with viacom, like nickelodeon or dora the explorer. If you look at hbo, for all of the success it has had, you have a massive amount of viewing on a network, like hbo, which is traditional movies, tied to the deals that they have with other hollywood studios. You need both of those parts of the pie to be successful. Thank you for joining us. Coming up, pfizer appears to be on the cusp of a blockbuster drug treatment for patients with breast cancer. What makes the drugmaker tick . If you have ever thought about ordering drugs online, the nextdoor he may make you think again. What big pharma is doing to fight blackmarket pills. Is the Drug Trafficking you do not hear about. More than 75 billion worth of Fake Pharmaceuticals are sold globally each year. These makeshift labs, lead paint, sheet rock, some of the toxic ingredients found in counterfeit pills sold online to customers around the world. Big, pharmalem so Companies Like pfizer are policing it themselves. Scientists are doing the legwork. The evidence they gather will be used to prosecute the perps. It is a winning formula. They protect the brand, which is tainted by fake viral products on the black market. They are training me to spot the real deal. It looks pretty similar to me. We find everything from fake chapstick to celebrex. The king of counterfeits, viagra. There is something that looks fake about it. Can you tell which is real . Step one, you document the sample. Step two, the physical exam. As you chip the blister, the logo color shifts from blue to purple. Real viagras. Ur step four, filed the report. We probably average about one conviction per week. These are cases we bring or Law Enforcement does on their own. It is important for us to have patients recognize that when they get a pfizer product naca pfizer name, that they know what is our product. Despite their work, the blackmarket with fake drugs is growing annually. At that rate, it is no wonder police need outside help to keep up. Olivia joins us now. You ordered some fake drugs online. I had to try myself. The frightening news is whatever you order online is very unlikely to be real. Have ang to the who, you 5050 chance of getting a real drug. In the United States, 97 of Online Pharmacies are bogus. I brought it here. I sent it into the pfizer lab in connecticut. Is not the real deal. It has about 10 of the active ingredients. If you ordered it, it would not really work as well as they said. It also has a set of medicine acetaminophen. Up. Ything comes i spoke to someone on the phone and online chat. They assured me this was brand pfizer viagra, but you can tell it is not the real deal. You have to go into the lab to find out. They give so much, olivia sterns. We have the top 10 trade you do not want to miss after this break area and after this break. Welcome back. I am betty liu. It is 26 minutes past the hour. We are on the markets. Scarlet fu has the latest on futures. After three days of losses in the s p 500, it looks like we are getting ready to start the a little changed. No Real Movement in futures. Everyone is waiting for the beginning of earnings season. Will be reporting after the market closes. Emerging market stocks have continued to move up. The u. S. Dollar has been weaker. Particularly against a virgin market. Old futures are up by more than one percent. A lot of people are saying there some demand. Marketse back on the in 30 minutes. The these are the only trade you need to know about today. Scarlet stays with me. Alix steel joins in. Number 10, comcast. They are going before the senate to defend a merger with Time Warner Cable. Lawmakers will call the provider to testify on the deal. Microsoft. They are approved to take over the nokia phone business in china. Number eight is james river coal. They are filing for bankruptcy protection for a second time. They have struggled with a steep drop in coal prices as well as demand, whic. Itsmax plans to sell 20 of subsidiaries. It could list of the unit in hong kong. Chinese investors will pay about 40 million for those shares in the company. Samsung electronics. They posted a second drop in quarterly profit. Samsungs stock saw its first annual decline in stocks in 2013. Citigroups agreement must be approved by the federal Housing Finance agency. Number four, tesla motors. Up an armetting targeted at corporate buyers. Business can calculate the cost of leasing as they configure the car on teslas website. Eli lilly. They are ordered to pay 3 billion in damages after a jury ruled to cater pharmaceutical takeda pharmaceutical. Number two, plug power. The best performer on the nasdaq, expecting to report its first profit since its ipo in 1999. A cleanerand for forklift is helping the shares advance more than ninefold in the past six months. Number one is alcoa theyre exiting the Dow Jones Industrial average. They have been on a tear, up nearly 60 . Now to the calm the markets. I want to bring in mike orourke. He is a pretty big bear on u. S. Stocks. You are watching some of the tech stocks. You say some of the trends have not roque and for the big tech bellwethers. These names had a huge run over the past year until about a month ago. They are in the big correction phase and a lot of names are down 20 to 30 . Of 1999 . Eminding you momentum leaders then, qualcomm, they leapt out in january of 2000. You are seeing a trend here. Investors rotate the bellwether names and that supports the index. That is what has been going on. They will exit those bellwethers and we will . See a bigger meltdown . I think a meltdown is a strong word. We had a meltdown in 2000. Were melted down at the end of the year. It is one of those things where it is not healthy action for investors. It is something to be aware of. Investors are becoming more cautious. Those leaders who have been leading the market, their trends are broken. You do not like any sector. You want to play defensive. You do not like health care. I do not. It is a great example of what has been going on in the market. Healthes acquire another care company, reincorporate overseas in ireland and they get a tax arbitrage. Gains over the past year. They have acted like a momentum and are part of that group. We are not talking big pharma. You have a bullish take on health care stocks. Fargo has shown a persistent recovery in earnings growth. Topline growth has been a challenge, but not for the Healthcare Companies. In the first quarter, Healthcare Companies rose seven percent as a group. That is the fastest rate in the s p 500. It is more than double the rate of the overall index. The cell into biotech has led investors to trade up. That is a great example. Most companies have been buying back stocks for the past five years. Met has been driving earnings. There has not been a great deal of revenue growth. The sectors are about 25 of the past year. The Stock Performance is are outpaced. Expansion. Tiple frothy. Are getting relative to where they have been and where they are trading, yes. Given your view on stocks, alex who has beenx, looking at gold over the past months, what is the case . Moved inversely. It does beg the question, as stocks fall, will gold rally . The idea for gold is it is a safe place to stash cash. You see the inverse relationship between the two assets. There are some worry spots for gold that are unique. The latest increase has been driven by speculative investors. You take a look at the physical demand from china, that has been week. Not only do you have the depreciation of the chinese yuan , but you have low inflation and higher Interest Rates. That can weigh on the gold price. This goes back to qe. Each phase of qe lead to the topping of the after class of choice. And qe2, it was gold and commodities. In operation twist, it was treasury bonds. It has been long equities, short goals. We have not had the inflation that the fed talk the feds talk about. Ever since that fed has started tapering, that is when the equity performance started occurring. Gold has been outperforming equity since then. I expect that trend to continue. We may not be reaching a peak in gold. A lot of that was speculative. Said, speculators came back to gold in the past couple of months. The two bottoms in gold were june and december, when speculators were betting against gold. That unwind. I believe that investors will come back to gold for the flight to safety reasons. Thank you so much. Chief markete, the strategist at jones trading on the call. Much more ahead. Heres a look at the top tech stories. China has approved microsofts did to take over nokia phone business. Fees forot mean higher the Nations Capital phone makers. They will not raise fees for patents after the deal. Samsung posts the second straight drop. They are blaming weakening demand for the slide. Theyre counting on the fifth version of its galaxy phone that goes on sale this friday to boost sales. Back in the itself number one spot in primetime time for the first time in a decade. They hosted the sochi Winter Olympics looks like it will win the allimportant primetime demo. That in lessaid than three years, they had climbed from four lace to first to first. Place ed, what is going on . Worst to first. That is an impressive accomplishment. The rare public appearance he made yesterday, he rarely speaks to the press, he rarely speaks at all. He had a room full of reporters and had good news. Good toe had something say. Its part of this the Winter Olympics . Jimmy fallon . What is this . They are trying to spend the us on they are number one across the board. That is true in the 18 to 49 demo. Are of the other demos advertisers buying into. More than 60 of their ad sales come from that demographic. Demographic,n that they are winning. They are winning and in the today show and the the tonight show. It is not just primetime. It is day parts as well. Super bowl, the olympics, football has had a big lift effect. That helps them. They are turning around. Theyre making it work. Who was number one. This is where we are going to get into a battle over the debate. Cbs and fox like to tout the total ratings, which meaning everyone age 2 and, whether they are sold are not. They go back and forth on who wins that one. Nbc says, i know you like to look at that, but that is not the important metric. Put this in context. Comcast is going to go in front of congress tomorrow. Theyre looking to bid for Time Warner Cable and they will go before congress this week to talk about the benefits. The way that nbc plays into this, in an interesting way, the fact that they are doing well now, you could argue this might chances. Asts they are dominant and broadcast and cable. They want to be more dominant. It is not just about video, but Broadband Access as well. Regulators may say, you are already so big. Why do you need the help . Nbc tos nothing to link comcast. It is run as a separate business, but the optics could be challenging. Thank you. At least of bloomberg news. May be on a russia collision course as tensions escalate and ukraine. We will have the latest developments. That is up next. Time for the global outlook. Armed men stormed buildings in cities. Ryan chilcote joins us with more. Tell us more about what is going on. It was actually in the last 36 that we have seen armed men seized headquarters. They are saying a few things. They are saying there territories are independent of ukraine, the central government. They will not participate in the president ial election. They will boycott that. They will carry out referendums in their regions. They will ask other people if they want to join russia. Finally, they are saying that they would like Russian Troops to help them out if they can. As you know, Russian Troops are not too far away, about maybe 20 or 30 miles over the russian ukrainian border, doing exercises. How is this different then what we saw in crimea . The size of this. Those three cities, together with their surrounding areas are home to about 10 Million People. This isally speaking, the industrial heartland of ukraine. They are responsible for a good chunk of their economic activity. It is very different from the crimean peninsula. Thatecond difference is these people that have taken these buildings are not legislators. They are not politicians. They are not regional leaders. It is not clear that they even if they wanted to could carry out these referendums. The third big difference is that in this case, we are seeing authorities from the central government, ukraine itself, really pushing back. The reaction has been what, ryan . They are already taking action. That is visible. According to the foreign minister, they have taken back one of the three buildings in the three cities. They have agreed with some of the men and another that they will lay down their arms. He is saying they will finish the job using the police. We have heard from russia. They are saying that ukraine should not use any military action, saying that would lead to a civil war. We have also heard the kremlin accused the United States of specialistsmilitary from a security firm, presumably these are security contractors from greystone. Russia is saying that is more interference from the United States and ukraines affairs. The russians are saying these u. S. Military specialists are helping the ukrainians in the cleanup in the east of the country. Despite what is going on in ukraine, the world will row more quickly than it did in 2013. Not quite as fast as the imf thought in january. Mike mckee is here with the latest from the imf. The ukraine is going to play a role in why we are growing more slowly. It looks twice a year at what its Global Forecast will be for countries around the world. They do say that 2014 will be better than 2013, but they were more optimistic in january than now. A 3. 6 world growth rate for the year. They thought 3. 7 in january. The United States is unchanged at 2. 8 . Europe, 1. 2 . Japan, mark it to 1. 4 . That on the tax increase that went into effect. Make several assumptions around the world. They give the Federal Reserve they will start raising Interest Rates and a Third Quarter of 2015. They see a 20 chance of deflation and europe. They forecast some of the countries will falter this year. They have marked russian and growth down. They warned there could be contained in contagion if we see additional action by russia and ukraine. In ukraine. They give advice to the ecb. You should ease more this year, you should start cutting rates because you need additional stimulus. The u. K. Needs to rebalance its accounting to focus on housing and emerging markets should plan for all of this because they will see capping outflows. Even more outflows. Investors they care about this . Really. Some of the policy prescriptions they take a look at, but they are in the in a Bloomberg Survey alone, 83 forecast for gdp growth. This is the 84th. Do you need something additional . The Bloomberg Survey sees 2. 7 growth. It is something to talk about ahead of the imf meetings. We should point out that we can ask that question of christine lagarde. Tom keene will be interviewing her on thursday. She did create waves with the call to ease. We will see if she is willing to back that up. We will be watching for that. I am sure tom will put her feet to the fire. Up,his topic, coming Market Makers will be talking and whya blanche art the economy is pulling the rest of the world along. Mgm studios ceo harry sloan is going to be from Disruptive Technology to how movie studios are creating content for the online digital landscape. 8 00 a. M. Morrow at eastern time. On the markets is next. Thet is 56 minutes past hour. We are on the markets. I am scarlet fu. Is how Financial Markets are trading. The s p 500 index extending the threeday slide. Down for a fourth day. It went negative for the year yesterday. You have producers of Raw Materials rising before alcoa reports later this afternoon. Is some interest in emergingmarket currency. Higheryielding assets. You see some pressure on the dollar as a result. Gold is moving higher. 1309 right now. That is almost a twoweek high right now. Pick your poison. Trading too fast or trading to slow. Ae concern is that highfrequency computerdriven trading is wreaking havoc. The worries that you cannot trade fast enough to get in and out when you want to. Joins me now to break it down. This is interesting. These have the opposite problem. And the stock market, you have an increasing number of computers that are trading the debt. Corporate bonds are traded, they are humanly. There are human traders on each side. It is not on an exchange. Of the reason why is because each bond, there are idiosyncratic securities out there. One company may have 15 different bonds with different maturities and readings. It is hard to standardize it. It is hard to have someone in the markets now want an apple bond, well, apple has a big one. I won a sprint bond. Bond. Nt a sprint can they get in quickly enough when they want to . The concern is if the market arns, that causes deterioration, bond managers that want to sell their bonds are not going to be able to quickly enough. If they put their order out and as they wait, the prices are going to plunge. By the time they can get out, it will be lower. A the way up, it is also problem. Some bond managers want to get bonds. No one is willing to sell any, so this creates inflation of prices. That might not really be there if people were not so hungry for debt. What you hear when you talk to people about this . Is any institution trying to take advantage of this, capitalize on this, do something to disrupt it . There is a lot of talk of electronic trading platforms. It does not mean that there are computers that are going to be trading, the people are trying to normalize this, create more standardization. This is something people are trying to do. In the meantime, it is a big concern. Wall street dealers that used to create markets and provide user inventory to facilitate trading have old back the face of doddfrank. It scenery has shifted and has not been tested. It has not been a major selloff. It has been sustained. It sounds like both sides are incentivized. Reason it has helped stocks is it has made things more efficient. In a bond market, there is still an extra yield that can be clipped between each trade. This is a fascinating story. Thank you so much. We will be back on the markets in 30 minutes. Market makers is up next. Live from bloomberg headquarters in new york, this is Market Makers. Tiger . Hless he says enforcers are too scared to go after the biggest names on wall street. They are angling for highpaying jobs at Corporate Law firms. Ouch. Fixing fannie and freddie. We have an exclusive interview with a democrat who opposes the plan to online the housing giants. What does he want to do instead
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