Transcripts For BLOOMBERG In The Loop With Betty Liu 20140415

Numbers, we see a little bit of an improvement. It is really incremental. Mainis really one of the benchmarks. How many cases of the carbonated soft drinks and soft drinks more broadly do they ship. You looking at unit case volume of two percent. This gain was international. It was up two percent. North american volume was last. This is an ongoing issue that cocacola has been facing. Companies earnings per share came in line with estimates. You can see that shares are rising as people look at the volumes numbers and earnings numbers. Ceo reallyn the focus on cost cutting as a way to make up for that. Trendroadly, the secular is that we are seeing the appetite, especially in north carbonated soft drinks declining. We heard ken shea talk about that in the past hour. Seeing concerns about aspartame and diet drinks. Thank you so much. Julie hyman turning to the economy. Americans hate inflation. The feds theoretically hates inflation. Aboute people so worried the falling inflation rate ahead of the latest government report . Turning to michael mckee. I imagine people are getting what this says or does, we are not seeing any inflation and begs a lot of questions. Lex it does. People do not like inflation. A sign of economic weakness. No one getting the benefit anywhere. Paying your bill back with dollars that are worth less. Also, you do not want to get any closer to deflation. That means no one buys anything down the road. The fed target is two percent. The have been below that for more than a year now. They put that in place when inflation was well above two percent. They are trying to get out of that. Generally week economy is the real reason. No pricing power. No one is getting raises and no one is able to raise prices. Energy and Commodity Prices falling as well. That has been starting to change. The government sequester, a two percent cut in medicaid payments. That pushed the sequester down starting last april. We will not see that reflected until may. Were starting to see inflation may be bottom. The forecast is year on year basis we will probably see a little bit of inflation. I think we will all take a little bit. Turn in inflation, if we do see 1. 4 , is that something that concerns the fed or something they will tear on . Not yet. They use for the pc the used the pce index. The fiveyear forecast for inflation. Until that rises, the fed will not be concerned. This is a global problem. Inflaming ion inflation 1. 4 . The british reported their lowest inflation rate and for an a half years. Michael mckee, thank you very much. Moving and shaking. Arianna huffington to come out with a book that is inspired by exhaustion seven years ago. She called it a class of wakeup. All classic wakeup call redefining success in creating a happier life. She spoke to charlie rose about it. Lex i cannot tell you how many people come after me and say i do not remember the last time i was not tired, and i feel sorry because it does not have to be this way. Are livingly we under collective delusion it has to be this way. People wholy admire are working 247. That is a problem. Tois not something congratulate people for. They pay a very heavy price. You can watch all of the interview tonight at 8 00 and 10 00 eastern right here on bloomberg tv. That makes the next mover and shaker is my guest for the hour, tim draper, founder of draper fisher. An early stakeholder in companies from skype to tesla. He has a bold vision for california economics. I wantgive to your theet to your reaction for virus heartbleed. Is this justified . In some ways it is justified. There are great companies. Solved thesey problems. There is a company that has made it so you can have one password and keep changing them. You just keep moving your password around. There is another opening called paying the identity ping identity. I want to get to some of the solutions in a minute, but are you surprised by this and then of itself, the idea that the internet is as small marvel at it is because of heartbleed. It was it came out of a relatively Small Company that was not as secure as it probably should have been. Potentialere are some catches out there, but there are always solutions. Should be very careful about using password information for the next few days and weeks until they figure this one out. I think that is right. There is another solution. There is a way of always giving you two points of authentication. They do it through social. Facebook what the world is in the other world and they put them together. I think there are a lot of solutions. Knowe in the world should that they should take some stock in their identity and make sure it is secure. A big space. You are an investor looking for new opportunities all the time. You mentioned in companies. I think it will be an ongoing. I think identity will be another space. One concern is companies tend to play catchup. They get to the issue a little too late. You looked at target. You had opportunities to fix security situations all along. They saw the consequences. That Companies Need to understand about security before Something Like that happens . I think great visionaries, great entrepreneurs come up with solutions that are well ahead of what these are after. The thieves see what is there today and what they can grab. Entrepreneurs and think well ahead of that. I have heard people say to me, the problem is until it becomes an issue, a lot of them do not focus on it. In some cases you have a chief Technology Officer that his language and the ceo that is effectively speaking another language. Ceos that perhaps are not recognizing the threats as early as they should. I think that is right and is one of those things. Our Smaller Companies are going after the identity problem. They do not necessarily recognize they have a problem until Something Like this happens. Then they all run to their door. Two Different Things in place. Me you are saying the consumer can take more responsibility to protect themselves. Both. Think i think the Consumer Needs to take care of themselves and watch the identity. They need to use some sort of identity package. Then the corporation usually waits until something horrible like that happens and then they say we better shore up against that he does all of the shareholders will be concerned, customers will be concerned. When youy incredible think of the world in which we live today where all of our information, personal information, Financial Data is out there available for anyone. You awake atp night or make you pretty concerned. Trust the ways you world and live in the world and it is a great world. I think honestly has a premium now. Moree are realizing the honest they are the better off all of us will be. So there are getting to be fewer and fewer thieves and generally crime no longer pays. We are being watched. Stay with me. Tim draper here for the hour. Venture capitalist tim draper. Coming up, your chance to be the in crowd. You how. Ell plus, like in the fast lanes. That is what you will be living if you can afford to buy this. Loop. In the back, everyone. Loop. Watching in teh lhe i want to bring in my guest, tim draper. I want to ask you, which of the areas in technology right now are you most in trade about from an investment perspective . Is bitcoin. T i think it really has the virtuall, it and other currencies have the potential to transform the world ready much the way the internet did way back when. I have heard that before. Of all finance, all commerce everything can be transformed. It is like one abstraction past where we are today. It used to be we trade shells movedrvices and then it to gold for services. Then it was a note that says we will pay you gold for services. It is bitcoin in the current form as a currency, or is it the Technology Behind bitcoin that will eventually survive . It turns out in any industry there is always some movement and always a possibility there are other types of coins that become more prevalent. Most of the entrepreneurs, boost companies, my sons boost incubator, they are all building the infrastructure around bitcoin. The reason i ask the question, they have gotten so Much Negative publicity, you cannot help but make the comparison. Napster doing a pretty great thing when it started out. It got saddled with a ton of legal lawsuits and threats of people going to jail. Kids were downloading and sharing music files and parents for getting hit with lawsuits. That could potentially bankrupt them. Consequently the industry shifted away from that. You look at bitcoin and the association with the road and do road and the extreme libertarian groups. I only ask, with it going will bitcoin be able to survive all of that . I think it will. The internet itself has that weird baggage around it. There was pornography going across on the internet and issues of security like we talked about earlier. There were many issues as the internet was getting built. As we got more and more comfortable with it, it became a bigger and bigger part of our life. I think the same thing will happen with bitcoin. How much are you and your son and best it right now . I have some bitcoin and investments in the number of bitcoin companies. And they areneral, trying all sorts of Different Things. One in the insurance company, using bitcoin to buy things off of the web, anything you need. Manning bitcoin atm. Like the only reason i ask is you, mark andreessen, fred wilson, a number of people have isted this and saying this great, but then when bloomberg investigated the total number of dollars being put to work here, it came up with 110 million. In the scheme of things, it seems pretty small. The total value is about 7 or 8 billion. A good, successful business. Is the volatility ever going i think eventually it will find its place. It is a lot less full of toll than the currency and argentina. That is an interesting point. If you are someone living in a country that is dealing with crazy fluctuations in your own currency vomit and then Something Like bitcoin own currency volatility then Something Like bitcoin will look more stable. You have the u. S. Dollar. Au do not have to worry about 30 price fluctuation and the span of a week or two. That is true. I think it will bounce around for a while. It has been somewhat stable. For quite a while now. And iceland they basically a few weeks back that a massive drop. They said here we all go. The government has said you can use it but you cannot use it outside the country of iceland. How is it doing . It has potential. Any limitation like cannot use it outside iceland creates a little bit of a limitation on how fake it can be. Not necessarily going to take over the bitcoin space. A lot of variations out there. Very interesting. Tim draper, venture capitalists taking with me. We will talk more about tech valuations and his plan for california. Can they get its economy back on track . I will be right back with that. You are watching in the l oop. I am trish regan and four betty liu. 26 minutes after the hour. That means bloomberg tv of, our were you. A look at Early Morning trading. Futures are pointing to a a suggestingn equity markets will continue after yesterdays rally and try to make up the selloff we had last week. Not a lot of catalyst in terms of Economic Data out today. It is really earnings driving the equity markets. Johnson johnson and cocacola seem to be helping settlement sentiment. The ftse index, both lower. Higher earlier. Sparking concern about inflation. Rose 1. 6 . The lowest level in 4. 5 years. It is missed confidence came in a little bit disappointed. And china, asian markets broadly lower today. The report showed the money supply in china increased at the slowest rate on record. The fueling concern about potential slowing of the chinese economy. We will be on the markets again in 30. Thank you very much. Getting to the top headlines. Cocacola reported firstquarter profit that met estimates of global volume sales increased. Earning . 44 per share compared to . 39 a year ago. The net income fell seven. 5 in the quarter. It is tax day. You have until midnight tonight to file your tax return. Sky gazers got treated to a special Lunar Eclipse last night known as a blood moon. In the total Lunar Eclipse turns blood red as it passes into earths shadow. If you missed it last night, there will be four more between now and september of next year. You are all set. I want to pivot to the economy. Tim draper here with me. I know you have been worried about californias economy. Sufferingbeen arguably from pretty big problems because of having high tax rates. Stubborn unemployment and Education Statistics that are very weak. We spoke with neil cosh kari kashakri now running for governor of california. To bring manufacturing back to california. It is great that apple and tesla and other hightech Companies Design great technologies. Lets produce them here, too. If we do that, we can bring down 17 by putting people back to work. Is it realistic to think that manufacturing come back to california right now. Lex i think the reason i put six california is on the ballot is of this. California is losing jobs. Sony and disney. They have lost jobs in california. Justccidental petroleum sent 6000 jobs away to texas. Taxexas has a much better right. Much better tax program and better for new companies. California and it sells in its current state never be very good at attracting business. We are a bad education system. So many things are not working in california because it is so big. Tos Central California were break off and be part of this, they could easily be part of a greater Manufacturing Sector for california. Since it bottomed out in 2009. Are losing jobs. The number of jobs have gone up that people have, too. They are losing jobs to these other states. Highvalue jobs. We could still have very high unemployment and california. Would still have to be approved by the u. S. Congress. Putting many more democrats into congress is not going to happen. Congress, republicans will not let it happen. We have to get to the economic numbers really quick and then can come back. Consumer prices rising. 2 . Core rate up. 2 . As if thes expectation was for. 1 in the month. Number, this year has been coming in a little bit bigger then people had anticipated. 1. 5 . Versus the survey of 1. 4 . Mckee, a little inflation these days may not be such a bad thing. To see some price pressure. You want to know the slack is being taken out of the economy. It also means debtors are little the better off. It gets closer to raise Interest Rates. We havee argued bottomed out. This is some evidence we are. Is not you mean there inflation . I go to the Grocery Store. Food inflation has been high, up 1. 7 on a yearoveryear basis. That is something people sees very visibly. We do see a price drop in gasoline prices. The bill at the Grocery Store has gone higher. He wants people to go into the store and buy something today whether rather than waiting until tomorrow. Do not feel like ok, i need to get that now. That is the deflation concerns of everyone has been worried about. Hopefully we will not go anywhere close to that if we have bottomed out. Concerns about california. Your idea is to set up a situation in which the state is buta huge political unit six different states onto themselves where the smaller they are, the more agile they will be. Central valley is about agrarian and feeding the world. The far south are very concerned about the border. I think all six states will do better as a result of this. The federal government has basically said of course this will be an issue because we will have to approve it. It turns out eventually one party in power will decide it is in their best interest to have six californias. Eventually it is going to happen. In the meantime they can self organize. They can all work is somewhat independently. It is a great thing. Competition is great. We have capped the tax rate many years ago. I think it will make a big difference. A different place of doing business. Maybe top 13 and another state want something else. This inn you do california and . Austen is a whole lot different than dallas. Texas does not need the federal governments permission. They can be five states if they want. New york might want to be a couple of different states. Manhattan different from upstate new york and long island. True. If i am upstate new york, i like the tax revenue manhattan is bringing in. Manhattan might say we was bled off, but there is some transfer of wealth from manhattan into the rest of the states that the rest of the states benefit from . There is something to that. That money does not make it all out to upstate new york. A lot of that starts in manhattan and ends in manhattan. If you talk to someone in upstate new york, they may want from manhattan than they have. I think that is definitely true in california. We are seeing that starting to happen, that over time were starting to see the polling change. People are saying we want six california. What end of support are you getting . It is really interesting. Were getting a lot of support from the places that are the have not. The people in the poorest regions of california are really anxious to have this happen. You would think it would be the opposite. You would think Silicon Valley hanging in the most taxes would want this the most. It turns out the poorer regions field they are being short changed. And jefferson trying to leave the state for years and is saying no taxation without representation. All of them are not below. We have very little representation. We do not really care about. We do not really want. Lex fascinating to watch. Not really doing so. So much. E, thank you coming up, we will be talking about this environment. Carl pope, former Sierra Club Executive Director will be joining me. He will be here on set, looking at Investment Opportunities in clean energy and talking about what it is that cities need to do to be more environmentally friendly. Also, aston martin unveiling two special edition cars at the new York Auto Show this week. I am back right after this. Welcome back, everyone. Aston martin known for the exclusive and highend sports car. Now they are looking to compete with porsche and jag wire in the five figure price range. More on that story coming up for you in just a moment. Thats, one of the biggest obstacles to getting investors into Renewable Energy right now is that it is often very hard to understand. Investors need to see how they might generate a return. Are working bankers to package Energy Products and familiar structures like bonds so that investors can feel more comfortable. I would like to welcome back tim , as well as former Sierra Club Executive Director carl pope. One total wonderful to have you here. First, lets talk about things that cities can be doing, the easy stuff to try to improve their energy. I think the lowest hanging fruit is parking. If i look outside my window in San Francisco, a third of the cars driving by are looking for a parking space. There is a vacant parking space on every block. So a driver could know exactly where it is in the right to that space and know how much it will cost. Transportation a big issue. What about the way warp rations are burning fuel corporations are burning fuel . Is that something that can be changed. Go right now the average American City half of the fuel bill is to keep the great outdoors. Is not needed to be heated and cooled in the summer. People do not recognize there are Pretty Simple barriers. If the city does not have enough able to process permits and you have to wait six months to get a permit to put topsoil on the building or insulate your windows, a lot of people will not do it. That is a barrier that does not need to be there and one that cities can eliminate. Energy has seen a lot of investments over the years. 1. 4 trillion poured into the space. What is interesting is that it wayoming in in a different in the Traditional Oil and natural gas space. Have been setup to deal with that. Less of a traditional finance surrounding new energy. Why is that . I think you might have ideas on how that can change. My perspective on this is we anded tesla and solar city a number of companies that are improving energy today. Tore and there was a height find a clean tax and people through too much money in. There was not enough real space. Likehere really does feel it is a good place to put money. I think lane tech will be a good place to put money. There will be a lot of opportunity for investors. Think clean tech. I think what cities can do are encouraged things like solar city panels on the roofs and encourage people to buy teslas. Is an example of the consumer at work. There is an incentive and the reason people want to save on their energy bills and want to drive a cool car and tesla fits that bill. Can a lot of the change come from individual consumers and businesses themselves . You were talking about mlps. Usingason they are not the Renewable Energy space is the Internal Revenue code does not allow them to be used. When we tried to get that freed up so that ordinary people could invest, we got a push back, well you can probably guess where we got the pushback from, the guys at the oil industry. On the other hand, if you look at what happened with clean tech, i think people forgot the lessons of the gold rush. In the gold rush, a lot of money was made. A very goods not place. It was investing in levi strauss. Who really made money in clean tech was the supply chain. The people who made poly silicon they did not lose money. The United States runs a big surplus on solar products. We import the panels. So i think the space has not been understood and there has not been good information for investors. You made a major investment and off grid solar in the first world. I think there are a dozen important companies, you just pick one and maybe you will make the right bet. What i like is there are a dozen plays and a dozen people investing in them and one of them will come out on top. Tesla a map on top. It is clear tesla figured out the formula. Way capitalism works. Most of the Car Companies existed in 1915 were bought by 2025. It does not mean we were driving horses and buggies or the automotive revolution was a hoax. I think we need to look at claim energy through the lens of what we committed to previously. It sounds like you are saying unleashed this though the industry can thrive on its own with the capitalist infrastructure that our economy already has. You do not want to inhibit investment with not allowing people to set up the equivalent. I just want a level Playing Field and open markets and transparent information. What happened to government subsidies . Does that have to go away you go it can go away. Right,do the rest of it you do not need the subsidies. Right now, Public Utilities can borrow money for two percent, Something Like that. At two percent all of the products are extremely viable. Public utilities are not allowed by the Public Utilities commission to invest in rooftop solar. That is why you have Companies Like solar city. We have to open it up. What about countries like they may india where not be as incentivized to put into place Green Energy Programs . What do they need to be learning and what needs to be told to them . You look at cold and how environmentally bad it is for a country and the cost that comes with the two people on an individual level and as an economy therefore. How does that message get communicated cap go i think the message is being communicated by reality. People are dying from burning coal. China has about 25,000 environmental protests per year. 25,000. We do not read about it because they do not have an open reporting system but there is a massive citizens resistance to dirty energy in these places. I think again, if you look at india and you look at rooftop have in the theory was you 60 of the population that does not have water in their house. Havedea was these people the best market for solar. They are not turning out to be the best market because they are very poor. The best market is people on the grid but only operating four percent per day. This is the consumer change youre talking about . Bottom up consumer change. If you open up the finance, creates a financing mechanism, people can afford this. Solar is cheaper than diesel. You just have to be able to get a loan to do it. Have to create the financing. The engineers and people like tim will fall the problem. He is going to make money on it. Of course he will solve the money solve the problem. Some of the investments will make me money. That is the good news. Thank you. Wonderful to see you. Former executive director carl pope and venture capitalist tim draper. Wonderful discussion. Moving on, aston martin has made its name as a highend car maker, providing tech filled autos for james bond but looking to appeal to more people with a new car that is in the five figure range. Matt miller gets up close with the companys new 99,000 offering. The discount is offered something that is a little bit more focused in specification for the enthusiast driver. Brake horsepower engine. 61 pound free to talk. Hour. Le per this truly is a car that is very comfortable on the track. Equally a car that is very functional can be driven on the road. That is the very important thing about the car that will surprise a number of people. It is priced at 99,000. Most people might expected to be a little higher than that. That is great. I think it is great that you can still get it in the six shift. You see so many going to automatic gearboxes. What drives you to keep it more traditional . One of the things we have recognize with vantage is the very much driverless car. It is why it has been so successful in the motorsport environment. That is why this car comes as a standard, manual. You also have the automated manual as well. Seven speed for the customers who want to try something different. Do you expect to sell of this . I have read it targets of maybe double the sales by 2016. You want to boost production. We would like to grow reduction and sales. I think this car gives us an opportunity to do so. We are very exclusive. Last year we sold just over 4000 cars. We see 30 market in terms of sales. We would like to sell a few more cars and believe this will offer the opportunity to broaden the appeal. You have agreements with daimler benz that you made last year in an exchange for five percent equity stake. They will supply engine, electronic, transmission. When will we see that going to affect . We have a technical partnership. What that is its not necessarily a supply deal that gives us the opportunity to work with daimler and associated partners in terms of enveloping custom aston martin products for the future. All of that ball, as part of the Overall Development in terms of the portfolio. We are investing about 500 million pounds, over 800 Million Dollars in terms of new products over the next five years. Very exciting time for us. We are looking forward to see that over the next four or five years. You continue to compete with the biggest brands as well. Most of them are now owned by or majorst working with huge carmakers. How difficult is it to stay competitive and stay independent . I think we have a unique position that we are wellfunded and well capitalized. We have the opportunity to react very quickly to the market. For us, we are there he confident in what we are doing. It is hard to look at the concept of building it for the track, and will bringing the price down. How you put them together . We are looking to offer a distinctive package and something that we think will appeal and broaden the opportunity for austin marten. That competitive sector has grown exponentially over the course of the past few years. We believe we have a very compelling proposition. Lex matt miller joins me for more on austin martens new push. As i said there, it is faster and will handle better and cost less than the previous vantage. It is essentially cutting the price to get the car out to more drivers. It can only be a good name if you are a fan of sports cars. If you are a previous owner, it means the price come down a little bit. What amazing vehicle for anyone who can get their hands on it. Now there is a lot more competition, another reason they had to come down on the price. The jaguar s type. You always have the or chef 911. You could make the comment that the new corvette. The name, the name and in of itself, doesnt that trump the grad drive meyer. Doesnt that trump the vets . I think so myself. I am a huge lover of the brand. Ive been watching james bond since i was a little kid. If you have ever had the privilege of driving an aston martin, something you never forget. A unique experience. I would rather have that than any of the cars i just mentioned. In this day and age when you can get that much worse Power Forward under 100 thousand dollars, you have to be good about making the cars and pricing them. That is what they are really doing. Are they still talking about the luxury suv market . I cannot imagine that aston martin suv. To be toonot seem thrilled about the concept. I do not see that user either. Aching a big tall Station Wagon does not make much sense to me. They made a killing on it. Absolutely. Stationporsche cayenne wagon has been a big hit. Like i was going to call it the minivan. A big long minivan. It is a lot of fun to drive also and people love it. I think this is the real niche. It alonean really go without the Financial Support of major carmaker. That has been the question for a long time. People have doubted the company. Now you see tesla coming along. It does not need the support of a major carmaker. It has investors. Toyota investing in it. It does not need to be majorityowned by a major automaker. That is always a thought. Now it looks like it may be able to go at it alone. Secure a new ceo and get going. I am not good at driving a stick shift. If you pay 100,000, you want a manual transmission unless you are racing at on the track. Thank you very much. 56 minutes past our, bloomberg tv is on the markets for you. Futures higher right now. We did get the cpi report out this morning showing inflation. A little bit more than had been anticipated in the economy. That is not necessarily a bad thing because the Federal Reserve once a little inflation. We will be back on the markets again in 30 minutes. One of the biggest producers in hollywood is moving onto a new gig at paramount. Tv, film and where the Entertainment Industry is headed. Well have that for you. Google releasing glass in the public for one day only. You pay 1500 for a pair of glasses that look like this . You are watching in the loop. I am trish regan in for betty. I will be right back. Welcome back, everyone. 30 minutes from the opening bell. Watching futures right now. Futures pointing to a higher open. The stocks down stack after the since 2002. Losses looks like the upside might continue as we get closer and closer to the opening bell. We did get cpi with a little bit of inflation. Not necessarily a bad thing. The Federal Reserve looking for a pickup in inflation. Chance to see google glass. Holding a oneday sale for wearable computer today. First quarter profit matched analyst estimates. Because ofme rose the emerging markets. Janet yellen may be ready to post a help wanted sign at the fed. To leave the central bank shorthanded just as it exits to execute the strategy. Peter cook has more on the missing pieces. Does anyone want these jobs nowadays . That is a tough gig. Not as sought after as they once were. The jobs of the fed or to governors table. Part of that is the confirmation process. The reality is the jobs still matter. The fed has to make very Big Decisions on a particularly janet yellen. Seven members of the board. They are president ially appointed. They are the counterweight to the fed five Regional Bank president s. They also help determine carry the fed administrative load and help janet yellen on a day to day basis. Terms that up 14 years. The numbers. Right now the average term for Board Members appointed since 2000 is just under 5000 and that number is dropping as we advance. Recentlymy stein announcing his departure effective at the end of may after two years on the board to go back to harvard, that means the fed will be left with three sitting fed governors. Jerome powell has been renominated for board position. The fed has not and reduced to three governors since the 1930s. Help is on the way. The nominations of stan fischer pending. They still need to clear the full senate. Even if they get confirmed, there will still be two more vacancies at the fed to fill. That could take months. An issue not going away anytime soon. Fed watchers are waiting to see what dan tarullo does. He has been there the longest. Maybe hard, if not impossible for him to go until others come on board at the board of governors. Any idea to whom the slots may go to . We got the two open slots. To make sure someone with a Community Bank experience gets one of the vacancies. Two names that have been put out there come a potential nominees. The first one is rebecca from errol raney. Romany. Where sheme previously headed the bankable organ and head of the oregon bankers association. I am told there are other names being considered. ,hat would leave one vacancy democrats pushing hard for the remaining position for someone with regulatory experience. Remember, these new faces will join the board and janet yellen in a very difficult moment for the fed. Going through all whole range of tough boats and issues going forward. A lot of issues. The whole unwinding of the Balance Sheet will not be easy. Coming up, a special edition of market makers. Some of the smartest guys in finance to join Stephanie Ruhle for a conversation about what really drives the market and whether you can ever hope to beat it. A Hedge Fund Manager and noble prize winning economists and bob shiller. Plus, the father of the index fund. Do not miss it. At this hour,king larry page is wearing his salesman had today because he has put the google glass on sale for one day, one day only you can buy the wearable computer online. The cost is 1500 plus tax. Only a limited number will be on sale. An extension of the Explorer Program that began in 2012. Upgraded glass for the sale adding software that improves the battery life and offers a new photo sharing feature. Yahoo Ceo Marissa Mayer threw down the goblet with the hiring last year. Multipliedhiring has as yahoo places a premium on content. Olivia sterns has more on why this matters ahead of the companys earnings today. This is about a whole lot more than say katie couric. Seems to me Marissa Mayer is really trying to make a play for content. Exactly. She is looking for the way forward, the next big thing. She has said a big part of the turnaround strategy will be trying to find big hits with original content. First she brought in katie couric. Then she had a couple of big hires from the new york times. Just in the past week, she announced she will bring in bobby brown to head up a new beauty section. Also, the editor in chief of elle magazine who has turned that magazine around for her to come in and anchor new fashion coverage. Really building out the content vertical. What is key is all of the figures will try to build original video. That is where the growth is and where the money is. What does the Analyst Community say about this . Some of the rumblings i have heard is you need to get people are real reason to watch. Her snout of the itself its to be that big and opinionated in that someone wants to go and hear that opinion online. Everyone believes the original compelling video is where the money is. If you can hit it big there, that will be of a gwen. Everyone i have spoken to thinks it will not be enough to move the needle. Says like ryan wheezer generally the big issue with the highprofile hirings is there is not evidently a coherent strategy beyond adding to digital video. It is important but expensive theunlikely enough to turn company around. Investors want to see she has laid the groundwork over successful strategy. He thinks the hirings to make sense. Well she has been cleared the turnaround will be people, products of modernization, they want to see metrics around the product. What you were just looking at is the fact that yahoo is currently in fourth place. That is something they will need to shake out. Everyone is chasing this. You saw the headline earlier from aol. Everyone really wants to replicate the success of netflix and house of cards. You see yahoo building of native video programming. They said they would be looking to acquire 30 minute programs. They will spend big money, 750,000 per episode to do it. That is another example of something that could drive traffic. Maybe she should go after jon stewart. It seems like everyone chasing the prize will not be enough. All people who have a huge following. Written many books. Two shows on the sundance channel. Katie kerrick has a huge following. So the hope is that these people will bring their own followings. Yahoo , 700 million users will make in a much more popular destination. We will all be watching. Thank you very much. Losinges using some of their sales. What can they do to keep sales from falling flat stucco jerry next under working on the big thing. We will hear from him. Jerry bruckehimer. Today marks the oneyear anniversary of the Boston Marathon bombings. The terror attacks changes the way the police organized the city. Adam johnson was in boston just after the attack last year. He brings us an update of the latest in the trial in race. You and i were on set together as the news broke. It was surreal as it all unfolded over the course of the next several hours and days. It is amazing. There you and i were talking about Interest Rates or dividends and we started getting things from people on twitter and email saying something is happening. We got on a plane and broadcast live all day and boston. Suspects were still at large. As we now know, one of them was killed in the aftermath as the police hunted them down. The other is still being held in custody. He is in for devens, massachusetts. If the defense wants to file Mental Illness, has to do so by may 7. The trial will begin november 3. Still has a ways to go. Do you think he will be able to get grounds for Mental Illness . Talkurns doug burns, to me about this case. He said Mental Illness is a possibility. He said what happened behind the scene is an incredible due diligence. They want to make sure this thing is completely locked up. Which is also why it has taken longer than usual. Said they are dotting every i and crossing every tea. You want to make sure you do that of course. Years about this marathon. How will the preparation be different and security be different . Two views. Mayor walsh says the marathon will not be fundamentally changed. It will be the marathon we have always seen. The Police Commissioner evidence says we will have plenty of assets, and if need be, they will be rolling in very quickly. What people see him the outside is not necessarily what is happening. I imagine the people of boston are so excited for this years event. Maybe there is trepidation there as well. There will be 30 more people. They want to prove this works. Incredibly resilient. Also, a Company Called behavioral Recognition Systems has brought set up cameras around the city. They are linked to artificial intelligence. It scans crowds and looks for changes in behavior. When it sees a change in behavior, it alerts the police you may have an issue. I asked the police, mike this prevented it. Might have this prevented it yet so youre looking for change in behavior, sometime leading up to it. Casing the joint. Like how do people read that . Moving through a crowd . It traint a camera on platform. In notice the certain pixels move this direction. When it moves a different direction, it says you have a change here, check it out. That is fascinating. Technology is incredible. We will talk to you later. As workers prepare to march on San Francisco officers, we will talk about union problems. A failure to launch for elon musk and spacex as a helium leak keeps a launch grounded. We will fill you in right after this. Pictures from 3rd avenue in new york city. We are eight minutes here from the open. Getting to the Bloomberg Top headlines. Tax day in america. You have until midnight tonight to file the 2013 tax return. By the end of last week they received 100 million returns. 75 of which are expected to receive in total. The average refund, 20 800. Citigroup. Bowing to find an industrialstrength vowing to industrialstrength resolution. Cannot increase dividends or share buyback. They made the promise on the corporate Conference Call where they discuss better than estimated firstquarter earnings. Nasa clears spacex for takeoff. The International Space station resupply mission will attempt to launch today from Cape Canaveral air force station. The capital will deliver nearly 5000 pounds of food, supplies and science experiments to the space station. An 80 chance of a favorable launch. Are two minutes away from the opening bell. The top 10 stocks you need to know about today next. Welcome back. You are in the loop. 26 minutes after the hour which means bloomberg tv is off the market. Olivia sterns has the latest. Executors are pointing higher, suggesting the equity markets will continue to climb and rebound after last weeks selloff. We did get Consumer Prices out earlier. The Consumer Price index rose more than analysts expecting. Rose 5. 2 in march. Point two cpi up percent. Above a economist forecast. A lot of analysts say everyone has revised down the forecast so much for earnings. It will not be a big surprise. We will be on the markets again and 30. Thank you. Counting down to the open right now with the top 10. The only trades you need to know about today. Julie hyman joining us. Starting with number 10, whirlpool. A 20 increase. The board has increased a new 500 million share repurchase. Adding drums to the fleet of driverless cars. Google made the announcement yesterday it has acquired Titan Aerospace and solar powered data space. Number eight, dsw. Announcing it will acquire a 44 stake in towns shoes, the largest seller of footwear and accessories for 48 million in cash. They expect the deal to close next month and add slightly this year. Offeredr seven, biagio to pay one . 9 billion to gain control of indias united spirits, an effort to extend the reach. The number six share is yahoo . All eyes remain on yahoo . Number five is motorola solutions. The Company Issued preliminary earnings that missed estimates. They also said it sees sales dropping to the low Single Digits for the year, citing lowerthanexpected volume in the north american government. The barcode printing business will by motorola renting unit. Nearly 3. 5 billion in cash. The deal expected to be completed by the end of the year. Number three, Johnson Johnson. Makerggest health care rose 44 as the demand for the company, the first is a Major Health Care company to be reporting earnings this quarter also raised the forecast for the year. Number two, aarons. I and online rent to own finance Company Progressive finance holdings for 700 million in cash. Expecting the deal to boost 24 billion in expecting to boost in the 700 million range. Cocacola. Reporting firstquarter earnings that matched estimates of global volume sales increase separately. Wintergreen advisers, the Investment Firm that owns more than 2. 5 million shares of cocacola sent a letter urging investors to review the equity plan, saying it is deeply flawed. Here we are at the open. The markets a touch higher. We can see how this goes. The dow up just early. S p up about 15 points. The nasdaq trading higher by 27. We did get the news on inflation. Cpi coming and a little bit more than analysts had anticipated. A little bit of inflation, not necessarily a bad thing for the economy. Many more Earnings Reports as well. Getting to cocacola earnings. I would like to welcome duane stanford. It looks like a potential trouble ahead for cocacola. How does muhtar kent get his Company Really growing again . I think the Fourth Quarter really scared some folks. This quarter things eased up. Itched load the clients that made investors nervous. Now it will be a matter of if they can build on the momentum. I talked to the cfo at half hour ago. They are clearly focused on that. It is very important what happens there. Soda sales have had a hard time. Cocacola, and julie knows this well, has had to really diversify out of the traditional soda business. How successful has it been at that and might it look to get into the Snack Industry should that become available . At this point cocacola, the bulk of the business still comes from carbonated drinks. Muhtar kent says he is doubling down on the traditional selling of concentrates business. In other words, selling the cocacola syrup to bottlers who then make cocacola and bottle it and sell it to folks around the country. Cocacola owns a lot of the bottling business as well. The Company Looks to International Emerging markets, north america, even though you see a reversal of the kleins this quarter, it is still flat. You see more of a secular trend, a migration away from soda entirely. You can see the latest numbers from beverage digest that show what is happening. Even diet soda, which has held up ok for a while as people migrate away from sugar. Now there are concerns about artificial sweeteners and the drop in diet soda as well. Particularly in the u. S. , there is a challenge ahead for cocacola and pepsi. Given those challenges, might it be well served to look into diversifying itself. A lot of investors calling for it to split up. Splitting off the fritolay business. If that were to happen, is that something cocacola were to look at . Would it be the mindset it did not work out . As you know, nelson pelts has been pushing the split. The Snack Division from the beverage division. People who are against that, a concern they have is whether that leads fritolay there for the taking. In talking to muhtar kent, it is desire to he has no diversify into snacks. He thinks there is a lot of opportunity in emerging markets for drinks still to be had. You know, markets change. Not just distribution. Talking about why it would potentially make sense, they have the distribution model, which would make it easy to get snacks onto store shelves. That is one of the arguments. It is not so easy as throwing them on the trucks and boats and bicycles and all the way that they spread drinks around the world. It is definitely something they can potentially make use of it. Also more platforms in the u. S. To pair snacks and drinks and more in big soft drink markets. Attempting to give you ways to grow their. Again, cocacola is not talking about that. Seemed that not really interested in snacks. What about potential acquisitions . What does he say on the acquisition front . Is he out there looking for new beverages . They have taken the same tack. In the United States they have taken a point in keurig. L they are making a bet there. They say moocher kent muhtar kent says it is an incremental challenge, a way to capture new sales. They did not Say Something that will replace the current soft drinks. Still very committed to that. We do not have a ton of time. Has caught on in terms of its popularity, a company that has originated out of israel. Ande keurig cocacolas acquisition would threaten that to a certain extent. What is the thinking or how this would catch on in the u. S. . There seems to be excitement around it. When cocacola signed a deal, use although shares split go up. It seems to be important to them to have these brandname associations. Sodastream international as far along as keurig is. Just because they have this partnership, does not mean it cannot also partner with soda stream. The idea is they would want it to be available on as many platforms as possible. Newnew maker, the carbonated cold beverage maker is not out yet. It is not clear what it will look like or what the demand is going to be. Go,before i let you emerging markets are facing serious challenges right now. We are seeing the slowdown in growth in china. We have seen a lot of problems in latin america. Given that muhtar kent is so focused on emerging markets, will an economic downturn in these parts of the world hurt outbusiness or are people there drinking sugary beverages to matter what . Be very troubling. What they are banking on is the emerging middle class in the markets. If the middleclass is hurting, holding back on the cash, that does not bode well or cash as we saw last year. That is something to really watch globally in the coming years. We will be watching all of it. Duane stanford and senior markets correspondent, julie hyman. Coming up, Jerry Bruckheimers next act after a nearly 20 Year Partnership with disney. Moving on. Union workers in San Francisco not so happy with twitter. Why some of them plan to march on the companys offices. On the market. I will be right back. Here is a look at the top tech stories on our bloomberg radar. Google adding drones. The internet search giant said it acquired Titan Aerospace, a maker of High Altitude solar powered data satellite. Bringing more people online. Priceline ceo says the company is spending tons of advertisement dollars on google. Darren hutton says despite all the money twitter and facebook has generated very little money. Dollar was50 million reaffirmed by the online video maker. Today theio says board and the majority of shareholders approved the sale, which should close in just a few weeks. Hollywood heavyweight Jerry Bruckheimer has been big on sequels, the producer who recently teamed up with paramount xers. Paramount pictures. Senior west coast correspondent Jon Erlichman caught up with him in his production studio and l. A. We put a lot of time and energy into making things look interesting and unusual. Well restrict to put something a little special and different and what we do. In terms of where the movie business is going, we have a lot of run with disney and a new first look deal with paramount. You have talked about where disney is focused on its movies and where you are focused on your movies. Disney doing a lot of superhero movies. They are not the only ones doing that right now. Will there be superhero fatigue at some point cap go i just saw the latest captain america, thought it was great. Is a great experience. It is what movies are all about. It is the reason you leave your living room or kitchen is to go and see big movies or small movies that are affected. As long as we make really interesting movies, people always leave their house. The first film you highlighted with the new deal with paramount is you are working on a new Beverly Hills cop. What can you tell us about it . Where are things right now . I believe we are moving forward. Summer and fall and get rolling on it. Taking eddie back to detroit. Him. Ll have some fun with he really excited about doing it. The other film everyone has been talking about it the next top gun, which i can say you have been working on it. This is a long process for you and tom cruise. You made headlines recently setting the stage of cruz versus the drones. Can you elaborate on that . Technology has changed since we made the first one. Taking over a lot. Is the pilot obsolete . Are those ,uys getting the jet jockeys are they gone . I do not think so. You still have to make quick decisions. So we will hopefully highlight both worlds. I wish i could tell you how long it will take to get there. You passed away and that is very sad for us. I believe David Ellison is a Financing Partner through his guy dance. The ellison and family, a lot of people talk about them. Larry ellison runs oracle. Megan getting a lot of attention during award season recently. What can you tell us about David Ellison . He is a pilot thomas of that helps us a lot. He loves flying in. The movies he has made has been very successful. He continues to make successful movies. He understands the business better than anybody. For a guy so dumb to understand the deals, what erectors work and afters work he is really done his homework and im very proud of what he brings to the project. For more on the interview, we are joined by the man himself, Jon Erlichman. He really seemed to be focusing on sequels right now. Is he worried that will start to shift or change . I think in a lot of cases, it depends on what the projects are. He has a new book. You pilot the relationships with all the big layers. If you can get them on board, and clearly that is the case and Beverly Hills cop. One of the challenges with the studio, when you bring new ideas, sometimes hard to get on board. With these ones, sometimes a nobrainer. When he works with paramount, does he still have ties to disney . He does. Disney is home to some of the biggest films he is made. Obviously pirates of the caribbean franchise. There had been stalling on the next installment on that so i asked him, when is it going to happen . We are working on it. Hopefully moving forward. John is excited about it. We are excited about it. Hopefully we will get that going if everything winds up properly. More on the interview later today. Talking about his tv stuff. Really looking forward to it. Good stuff. Jon erlichman. Catch them every day on bloomberg west. Union workers in San Francisco not too happy with twitter and plan to let them know about it today. I will be back. The shining stars of the tech world getting no love. They will be marching to headquarters with a bill. They want twitter to pay 56 million from the tax breaks they got from the city. Megan hughes made the trip to the west coast and joins me from outside twitters office. Talking about who is protesting. And San Francisco are concerned here that the Company Twitter is getting way too many breaks. Right. Is talking about Service Workers on taxing appropriately day. They are hammering in the 56 Million Dollar number that they say the city should have been getting from twitter on payroll taxes but have been getting the twitter tax break is what it is being called. Not just twitter but other tech companies. Here is how it works. Companies are exempt from paying april payroll taxes on new employees. Great for Companies Looking to grow. A six year window and eight year time frame. Beginning april 2011. Twitter moved into the Furniture Mart in 2012. An incentive for them to come to the midmarket area, which used to be a very blighted area. Applies to other types of compensation as well. It is a great deal for companies considering an ipo. Critics on the other hand say they have been taking a big bite out of the city budget. Especially in the city, and middleclass workers say they are being priced out. We will check in with you later on. That does it for todays edition of in the loop. Ceo of vw group will be here. I will see you tomorrow on street smart. Past hour, which means Bloomberg Television is on the markets. I am olivia sterns. Halfhour into the trading day. You can see that stocks are rising so equity markets continue to recover from last week selloff. A little bit of Economic Data coming out. Cpi coming in ahead of the economists forecast. Coming and. 2 . Up about 1. 5 . Still above the fed target rate. Today is all about earnings. Positive Earnings Report for cocacola and Johnson Johnson helped to boost sentiment. Stocks hanging out above their 200 Day Moving Average. The s p 500 is. Mike reagan joins us a look at why we should care. Why is 200 Day Moving Average so important . 200 day is a big one. Most of the benchmarks blew through the shorter Day Moving Averages during this selloff. We have had the 200 day really ofng longterm gauge momentum in the market. Preaching that level would breaching that would call into question whether the momentum is in danger. Any of them getting close . We have seen a selloff in biotech, which i cover. The closest is the russell 2000 index. Ainley a lot of Smaller Companies that the momentum stocks have taken the brunt of the selling in the past once or so. Day, thehe end of the one point00 went below and then shot back up. ,hether that is the real test it remains to be seen. It rebounded right back up. I will call you out on the analogy. You wrote it is like a party guest with a lampshade on its head. You are right. Create chaos. Not is not like a magic crystal ball. The Technical Analysis looks at it. The 10 day average is broken. Average is broken. Breaking the 200 day average is a rainbow and well that will ring. A lot of times considered a support level. Meaning that as you fall towards it, buyers will come in and profit up. When you dip a low it, it is a sign of concern. Does not necessarily mean longterm stocks are in trouble. It has not done since november 2012. In the next week, that is a bullish indicator. It is also an indicator it is due for difficult. 200 Day Moving Average. He expects the s p to follow within a couple of weeks after that. He says the worst time after a of it is the next week. Stocks down three percent. Over the next three months to a year, not so bad. Stocks are generally up after. Can be painful for the first week after. Up about three percent since the peak april 2. Year to date down only happened percent. We could get a new high. Thank you for joining us. That doesnt. Back with more with what is happening in trading in 30 minutes. Market makers coming up next. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and Stephanie Ruhle. How markets really work. Today, a special edition of market makers. The smartest people in finance are here to tell us what it is that could possibly beat this market. Welcome to a very special edition of market makers. I am Stephanie Ruhle. Erik schatzker is off this week