Following the story. Could pandora be next . Apple announced music,nd of news around pandora stock fell in the last couple of years. Last year, when apple announced pandora stock rose. This will spark pandora to do something to become a protected player. There are no talks that we know about, but just speculation at this point. Pandora claims it has 9. 3 of the overall listening audience. That is growing. Last year around this time, it was seven point three percent. Users. 78 million a big player. Spotify wants to go public. There could be something to do there. We are talking about a massive valuation. Forget google had also pushed aggressively. It has a product that cuts across so there could be some Competitive Pressure there allows these players to feel itselfed and then apple with its m a strategy. Some people talking about maybe apple buying twitter. Investors have had a chance to invest this. Does the price tag makes sense for apple . It seems like such a big out they mustound have on their headsets a ridiculous margin. 48 as got Something Like margins. You have got the potential upside on the streaming music side of the business. Synergistic effect. Thank you so much. Many in the Music Industry are weighing in on the deal. Including one of our biggest Richard Branson. It is great, a bit of money out of it. Cons talked about pros and. Cory johnson was there and asked ranson about the competition in the Airline Industry and innovating the brand. No, i think there is a choice. Or the be innovative and getbig industries in there and shake them up. Try to innovate. He will only succeed if you are a Smaller Company against it to your company. Radically different and radically better. Is very common theme . If people come in touch with a virgin company, theyre likely to find incredibly friendly staff who are very proud of the company they work for who really tools to do a good job and who. Re having fun doing it you have a virgin company. I saw you look at one of your employees. That was an attention to detail but it said something about the experience. What do you give up by leaving people time to do that . Hope this comes naturally. If you give people the right tools and not having customers complaining all the time about a horrible company theyre working there is no reason not to smile and have fun and enjoy what youre doing. The key is to have the chief executive of the Company Making sure every single little detail is right. Industrye a bunch of battle in the government for many years. Especially now in dallas today. What in government needs to be fixed to work better . 90 of the slots are controlled by southwest. Local governments are thinking, given the final 10 is out west, rather than virgin america, to compete. That thereally obvious people who live in dallas will benefit from competition. That when aanger Company Becomes so dominant in an area, they get to know of notdy that priority wanting to upset them becomes , whichl priority competition is a benefit to everybody. The Bigger Companies can innovate better. What youre saying is Smaller Companies are really the ones. Yes. Smaller Companies Keep the Bigger Companies on their toes. We started 30 years ago. Lap. Dont chicken on your they did not smile. The lighting was jet full. Every part of the experience was abysmal. Had stand up bars and overtime, they had to respond and they had to compete. So they got better and we did fine as well. That was again Richard Branson speaking. Moving and shaking this hour, the former treasury secretary tim geithner. Is book comes out today and a memoir of the financial crisis and the obama administrations crackdown on wall street. He defended the bank bailout. In a financial panic, there is enormous damage. Is to makemperative sure you make the system stable, not because you care about the banks or you want to protect them from their mistakes, but because if you let them lights go out, the system will recounting the worst days of the worst financial crisis. More to come, for the mattingly joins us now. There has been more money made writing about the bailouts than the bailout themselves. On some level, it seems like it. There is no true formula on how to do these books and movies, but they really can cash in. Big to fail. Too that book is on the New York Times bestseller list. 700,000 advance was turned into an hbo movie that i think was very wellreceived. The other book, without question, is the big short. Michael lewis has been in the headlines a lot. Lawmakers attributed it to helping. Frank. By bradso the option pitts film company. There is a way to do it. What has been the option so far . We started to see answers come out. It is always interesting how much of it is score settling and how much of it is really trying to write history and make sure people know. With the financial crisis, there has been a steady stream of insider accounts. A lot of people fared well on the insider accounts. Paul has his book with the New York Times bestseller. The business week documentary, five years from the brink was very well received. I think geithner has been well received as well. Book to setat this history and their agendas. Paulson and geithner, are certainly trying to do that. I wonder if anyone said they would donate what they made to the taxpayer. Thank you so much. Coming up, changing the debate over the way we jive. We will talk to the head of a company that makes natural gas engines. Plus, are you in a rush . Try this out. 060 in seconds. Many businesses across the u. S. Are looking to take advantage of lowcost an abundance of natural gas. Is class a stanza benefit the maker of natural gas, engines, and vehicle technologies, and has partnership with major manufacturers, volvo. David is the founder and ceo of westport innovation enjoys as val. She covers commodities for us across the board. Announce a partnership with kroger. What is this about . This is what we have seen for the last few years. Looking for a way to drop their cost are looking for natural gas. Billsl cut their fuel substantially. We are back to where getting the gas from and what were doing. Most will see substantial cuts. What is the initial cost . Typically, people are buying new trucks there they will get a payback between a year or two. Krogers are doing their own feeling in the arts. It obviously pays back. What do you hope this will lead to . This is a technology that came out of the university of british columbia. We want to find a way for our Global Transportation system to not be so dependent on oil. If we can go to methane then you have got people going from oil to net gas, but also to electric cars. Is the better option . The issue becomes the Natural Gas Industry when it comes to sports. Is, if you make it leave the u. S. , prices all the sudden become more expensive here and they will lose the Competitive Edge they have in seeing. We have already seen 4. 5 billion cubic feet. Seven terminals have been approved in order to export. It takes a couple of years to do that, but overall, 9 billion cubic feet a day has been improved. It sounds like were headed that way. We think this is great. Because we are finding an alternative to oil. E have been 100 dependent. If gas prices go up, depends on how much the demand is. We have got so much supply. Gas prices could go up 50 and have more than a 50 price cut on gas and diesel. We have seen a lot of producers rotate into oil because it is more profitable. Down the road, analysts say we could see more supply crunch because of that. I am not an energy guy. Do not ask me. We have a lot of gas. Another factor is methane is removed the noble. Havewe are selling it today. We might have a lot of supply but it is a matter of getting that out in the market. We just mentioned before we rod is looking at banning fracking. They have got the supply, but the politics may not be able to get out. I am also not a politician. I will not debate. Theyyou go to colorado, are buying their energy from somebody. Alas, was in denver, there were a lot of f1 50s running around. Someone will produce the fuel and someone will pay for it. The issue becomes infrastructure. Will come first . Demand or infrastructure . A feeling station if nobody is buying a gas card. The chicken and the egg it has to go handinhand. That is why it is taking so long. Years taken more than 10 in the u. S. The government in china can say, we want to make this happen and build some stations. Are you telling me you do not want to be involved in any of those issues . You cannot grow your business if you do not get involved. Of course. We have to knock these obstacles down. We have to focus on our piece of it and get reliable vehicles people want to buy. It has to be built and have the same quality and the omission certified. We are spending a lot of time and money, 15 years and a billion dollars, building that. What will be the holy grail showing you there is adaptation of natural gas . It is happening already. It has got the attention of people like ford and volkswagen. It is underway. The real surprise for us is people have seen the new idea. Everybody who uses a lot of fuel says, i could do that as well. You so much, the founder and ceo of westport innovations. Coming up, they are not just for the pentagon. Business wants to make sure Congress Knows there are plenty of nonmilitary uses for jones. Is heading big on watson, the computer that made a splash on jeopardy a few years ago. We are on the markets in just a moment. You are watching in the loop. It is almost 26 minutes past the hour, which means Bloomberg Television is on the markets. Has more. Rns. Time now for futures and focus. Investors wait rising in the ukraine. There were two disputed referendums in the eastern part of the country. That is stoking a little bit of fear and the gold market. For more, were joined by the Bloomberg Industries for metals. Also, the Senior Market strategist. Why did gold dropped last week . What is going on in the ukraine driving back up . Boring. Has been after a great start in january and february, gold is been trading right around 1300. On the bullish side, china boringexports heck of a lot. Thinking a lot less spent money in the future will be for gold. From a fundamental standpoint, but also the markets looking for . Lot for the chinese told gold markets. We should get import numbers for gold next week. That might drive the market. Class of all that in mind, how are you trading gold right now . We see rising tensions and that may be the impetus behind the rise this morning. The momentum really is the downside. Futures right in this range. Next big support is around 1270. If we see great Economic News on thursday with inflation numbers, we could hit that number really quickly. A quick stop to the upside but i am looking at 1270, 1267 is the next big number to the downside. Goldts put that futures are trading 100 ounces each. I target of 1270, you will on me a thousand dollars for every contract you by. 20,000. Ls since you are short, what Economic Data or what else do you think will happen this week . We have got retail sales and inflation data. The numbers have not been so bad lately. If anything, the surprise may be to the upside. Are to the upside, cpi and inflation. We will see gold quickly. The phrase anar initial margin. Walk us through what that means and why it is important to consider. Initial markets is the easiest. Why traders really need to lost initial margin is sometimes the exchange will raise the margin requirement if they believe the margin is too frothy. A couple got up there years ago, they stepped in and raise the initial margin and it took the wind out of the sails of silver. Quickly, you started off the segment by saying gold is boring and what is happening in the ukraine does not seem to have a big impact on how the metal is trading. Any big tail risks out there that could really move it . The downside there. One of the other risks is, as the price of gold the cost for producing gold has really dropped. Producers have shut in supply and we are seeing those costs combined to about 1100. Interesting. Thank you for joining us. Scott bauer, thank you for your time. Thank you so much. Olivia sterns. In new york, it is beautiful. Shining. S such a relief after the winter we have had on the east coast. Mckee said we should enjoy the good weather now, before it gets really ugly again in the winter. You are talking not just the weather. Youre talking economics as well. That is primarily what im talking about. But it is a lovely morning. Look at job growth, and were really is experiencing strong job growth. At the moment, were are on pace to have the strongest job growth in this country since 1999. Realize 2013 was the strongest since 1995. People do not realize that. Back in 1999, the average rate was five percent. What does that mean . Take a look at housing. Interest rates have gone up that in 19 99, it was over seven percent. You would have paid an average of 1389 on a 200,000 house compared with 979 a month this year. You can buy a lot more house. Is, in general, about half of what it was, and earnings, the rising of just two thirds of what they were then, but they have risen significantly. It was only firstquarter growth that was lousy. 1 10 of one percent expected to be revised out of contraction. We are running out of a tracking basis. Economists think it will last throughout the summer and perhaps the rest of the year. What about the winter of discontent . Thisu know, unfortunately, has the seeds of its own problems within it. The reason inflation and Interest Rates were higher in 1999 is that the economy was so strong. We had a bubble going on. We will see moves in those areas, the Interest Rates until in5. Once the taper ends late fall, markets will Start Talking about it. Markets rates will start going up. You might see Mortgage Rates ohio. The other thing to keep in mind is congress did not end the debate over the debt ceiling and the budget. They just bush them into 2015. Enjoy your summer now while it lasts. We will get this busy economic week kicked off at a high note. Thank you. Our economics editor. Our big number today is 1 billion, the number ibm is pouring into the is this unit. You might remember it from when it won 1 million on jeopardy three years ago. Ibm is aggressively marketing the technology that includes the government, hospitals, and large resellers. Diagnosed diseases and helps researchers process medical literature. Turning to ibm itself and in, the company is giving out ages, nation data to keep the practices private. Developmentmportant. Alex has discovered this. What has changed question change . What has changed . Waiver youre supposed to give them a certain amount of information. The reason is, theyre saying, you will not sue us so we will give you all the data and all the people in your department, so you would know you are not being discriminated against basically saying, if you have an issue, it has to be aired out. The reason is, theyre saying, we are giving a separate forum. We are not technically asking legalo withhold any claims. We will not give them that data. That leaves employees with . With a choice. Can i figure this out in discovery and arbitration . Do i pay for a lawyer and seek out the claims without knowing what the group looks like. Is what the lawyers will say. Ibm says theyre keeping the Information Private for privacy reasons, to protect identities and privacy of their amply. But this is a real issue. You are laying off thousands of jobs. It ispeople need to know still a frothy and economic landscape. The these owners have ability to find another job or is there legal action they need to be seeking. I am presuming theyre making this move partly because they have laid off so many people, and there are so many changes going on at ibm. Right. The majority of their business theyrestorically selling these standards, sales are down 25 in the last year in their hardware unit. Out ofe trying to shift the losing businesses. Theyre cutting jobs on one side of the business and hiring people on the other. Thousands of workers with a certain skill set leaving ae workforce and they are at loss in terms of the information they used to get in the past. Qwest is ibm the only company doing this sort of thing . This is been the first we have found that helps get you around the federal requirement with the data. Talking to lawyers with ibm, they have not seen this specific situation before. Some are saying, ibm is an innovator. Now they are innovating, workers rights side of things. Their pensionged years ago. They are known as an early mover in terms of employee benefits. Thank you. Coming up, drones. Amazon is making a push to use them for package delivery. Bringt the only one lot lobbying for the commercial use of these unmanned vehicles. A new sports car. E got a behind look stay in the loop. Here is a look at our top headlines this morning. No sire brands is joining a critical deal. Birdseye vegetables, you can make the whole meal out of it. Expected to close by september. Sally and made a 46 billion offer for the botox maker last month. Allergan said the deal substantially undervalues the company and is not in the best interest of shareholders. The Washington Monument in d. C. Will reopen today after being closed for nearly three years. The 130yearold monument has been closed since and suffered widespread damage since the 2011 earth quake that shook the east coast. It comes at 15 million to the taxpayer. Staying in washington, lawmakers and regulators are getting an eel earful about potential new rules opening u. S. Airspace for drones. Lobbyists are not all coming to the drone industry. Megan hughes joins us now. Are we talking about, trying to get more drones in the air . It is not who you might think. You probably think of a lot of generalcompanies, atomic, which makes the predator, and yes, all, all these companies are involved in washington lobbying on the issue. So is the Motion Picture assess association. You have got 68 groups that reported a lobby in 2012 in 2013 on issues. 68 groups, and half of them were weighing in on domestic drone use. They did not have anything to do with the defense industry. It is a sign of just how Many Industries are hoping to make money from drone. At theake a closer look movie industry. For them, drones can save money and provide very dramatic ittage like this shot, but is technically not allowed under faa rules right now. Production like in that movie goes overseas. Spent trying to get approval to get these in the united states. Another industry lobbying, journalists and broadcasters like the National Association rod casters. They want to be able to use drones togetherness together. Some are already doing that. Check out this footage of the deadly tornadoes in arkansas. The faa is reportedly investigating the use of the drone to take those. But it is happening. Those are airing. Contingent ofe universities are lobbying on this issue. They want to have Test Facilities in this area. We talked about realtors using this for photography. Amazon want to deliver packages. It is a huge crosssection of industry involved. Interesting to see all of the different uses. Is pretty muchit on one side. They all want to use the technology. It sound like that, but wouldnt that be easy for the lobbyists if they were all on the same side. There are a lot of controversial pieces to this. You have got one group that wants more use and another Group Chemicals tots fields. Theyre worried about safety. Operating in the same airspace as the drones. Privacy groups, defense lawyers, the aclu want restrictions on police drone use. Groups whot pilot are worried about safety. Megan, thank you so much. Coming up, this card cannot be take this supercar will you from 050 in three seconds. How much will it set you back . You might not care. We have an up close look at the newest supercar. The moguls are at it again, fighting for control of the paytv industry. Is it worth it for them . Stay in the loop. After their soldout milliondollar p1 model, they introduced a supercar industry. Click fields my luxury supercar. It has a rich history. Links to our heritage. We are talking 60 miles an hour. 0100 miles an hour. A great feature is that we have a retractable hardtop. Transport. Nd it is very important to us. 80,000 for the spider. One of the great aspects of all our cars, you can use the car every day. We areg different modes, offering a car here that is on one side faster and more engaging to drive. Cool looking car. Coming up, making the case for elon musk. Should investors believe in a man who makes solar panels and flies rockets into space . We will talk to someone who thinks criticism is unwarranted. And, enthusiasts headed toward the golden state. To gol tell you what has back in taxes when all is said and done. This is john malone. He has spent almost 50 billion in your billing building a paytv in them. That is rupert murdoch. A 14 billion deer that might give him the upper hand over malone. It will give british broadcasting control over the italian satellitetv unit. Murdoch would get plenty of power when it came to negotiatings boards and entertainment rights. Murdoch and malone are chasing potential in europe. 40 there have tv subscriptions and that is compared with 90 here in the u. S. This is a coming together of old enemies. Rivals, but been they have also been allies in the past as well. They have a long history. It will be interesting to see. Their outspoken billionaires. Class that is right. They do not take no for an answer. Had to get this upcoming deal . There are a lot of moving pieces. He only owns 39 and has long wanted to own all of it. He got stalled by the whole hacking scandal. You own theot let rest of this now. He stepped back and was biding his time. His first move yes made to shore up these assets and putting them all together would give about 23 million paid subscribers. Has about 25 million paid know, it isso, you a head to head matchup. Overlap . Y different markets. There are certain reasons you overlap. More importantly, is fighting for sports rights out there. It will be contentious. Racing, sports is different over there, but it is the same economics. Prescriptionytv so low . It got a later start in europe. That is why malone and murdoch both like it here it it is a growth area. In the united states, everyone already paid for television. Crescent now we are complaining about it here it right, with rising cable bills. Thank you so much. He will be heading off to the broadcasters. 56 minutes past the hour. Bloomberg television is on the markets. Equity futures are higher. Aboute dow futures up 3 10 of one percent coming coming off of an alltime high at the end of last week. Tech stocks are making a rebound. We are on the markets again in 30 minutes. Member the talk against whole foods . We will see if it still rings true that you can spend all your weakening Weekly Earnings thereon one shopping trip. Julie hyman when shopping there. The hot debate. We will tell you the legal battle on a hot sauce. Youre watching in the loop. Here is what were working on. Futures indicate stocks will be higher at the open. Questions about whether billionaire you on musk is we will talk much about why investors still trust you on. 6. 6hire brand will spend billion dollars to buy Pinnacle Foods, the owner of duncan hines, baking with foods, and much more. In whole foods, still hold paychecks. The organic grocery chain reported slowing growth, sending its shares down the most in 7. 5 years. Same time, it has been lowering prices. Julie hyman went on an investigative shopping trip to see how prices compared to others. Excuse to go an grocery shopping. Class i do love grocery shopping, but this was very interesting. We looked at about eight items. It was i no means exhaustive. To get a representative sample of what we would find, we went to new jersey suburbs and was that a number of different stores, including a highend specialty grocery, stop shop, and whole foods. Thee foods was actually not most expensive, whether youre looking at growth and vegetables which isi and cheese, a pretty commonly bought item, and bought at various stores, whole foods along with others you will have your shopping decisions based on this. Or if you look at Something Like crushed tomatoes, they offered a special on that as well. You talk about packaged goods, the center of the store item, it seems like whole foods is relatively competitive. In much the same in terms of price and bananas were pretty much the same. Where you will see a difference is the other types of produce. I have some experiments here. Here. Aragus it was among the most expensive at whole foods. This is only four dollars and cents a pound. This was the only local asparagus we with that. In this area in new jersey. If you want local and organic and fresh items, local asparagus. There i am shopping. At fairway, it was from peru and also the same price. It was interesting to see the differences. Talking to analysts, they say when you are talking about how whole foods distinguishes itself, it is a matter of holiday focused on produce. I also talked to shoppers about how they made their distinction. Live fresh market . Why fresh market . It is always fresh. They have a lot of organic stuff that anp and whatever else does not have. I like fairway because they have a lot of organic stuff and the prices are really good. You compare it to whole foods. They have a big selection but it is super expensive. The perception of whole foods is that it is so pricey. Youre talking about fresh produce. Class it is the premium experience. There is a concern now among investors that if old foods cuts back its prices so much, it will dilute the brand. Not a payoff. It will not necessarily bring in new customers. There is a feeling for how may people will go in. You have some stuff on the table you bought. You randomly pick things . Talk to analysts and then we have an influence item. We grabbed a chocolate at each place as youre going out to aisle, what we wanted to grab. There is a funny story i think you like. Despite the story taking shape in southern california, factorys complained the hurt their eyes and has a terrible smell. He solution, come on down losing the factory could cost hundreds of dollar of jobs. Him him him i love the job. I love the sauce. Thank you. Lets stay with food. Hell shire brand said it would buy Pinnacle Foods for 6. 6 billion. Watching this story for us. This story is a little less healthy. Were talking about packaged meat. You have hell shire on the one hand. Jimmy dean sausages, which our viewers are perhaps eating right now. They make all park hotdogs. They were formerly known before they spun off. With pinnacle for 6. 6 billion dollars is prancing cute including duncan hines. Birdseye makes a very good custard powder milk. Goods, including hungry man. A Market Leader here. 85 household. 10 or 13 categories. Will significantly bulk up their scale. And expand their margins, all according to sean connolly, the hell shire ceo now slated to run the combined businesses. What about the price . A 20 premium versus the Closing Price at pinnacle. It reflects a multiple of 9. 6 times adjusted earnings per share. Well below their earnings adjusted average. At onep as much as 27 point. Shares of hell shire are also up, suggesting shareholders think they are getting a good deal as well. Great news for blackstone. They own about 51 of pinnacle. They bought it seven years ago and then took it public. Making it much more likely to go through. This could be the beginning of more m a. Both companies have been cited as potential buyers for ragu pasta. Thank you so much. Our market reporter. Moving and shaking this hour, the la clippers owner, don sterling, whose racist comments may cost him the team. Female baited by his friend. He apologized for his comments and asked for forgiveness. He says he made a terrible mistake. The nba suspended him for life and tried will try to force them to sell his team. His estranged wife says he is suffering from dementia. A big lead a big week. To thees for the road internet. Amazon, google, facebook, they are just some of the tech help and if peter cook is in new york with me today. Great to see you. I know wheeler is getting a lot of feedback and many of it is not good. Will he change his plans . There are toxic could be circulating a revised plan. He got pushed back from Tech Companies like the names you just mentioned. It would have allowed some companies to create a fast lane for paid priority content and put others at a disadvantage. He also faced criticism from within the sec. Is he has gone back and made tweets to satisfy not only the critics but some of the fellow commissioners. This proposal could get a successful vote on thursday. It sounds like Tech Companies are more than just tweaks. They want the whole thing abandoned. You cannot distribute it against the whole certain amount of content. Not enough to prevent big internet providers to slow down traffic at the expense of others who pay. The criticism is they just do not want to pay for it. That theher concern is young entrepreneurs and the young star that would compete with those bigger players, they will be the ones discriminated against and they will be in the slow lane and at this is will not be able to take off. Wheeler is pushing back, saying he is maintaining the engine or the economy, the open internet, but you have got to look at the rules and talk about it erie he wants more public, and he wants the issue dealt with. A big legal battle. It is a very big week. Everyone knows who he is, for better or worse. Thank you. Do you want salted caramel . Lets have some during the break. Coming up, elon musk is taking on too much. Is he really capable of running three companies at one time . On youtube. We will see why so many people are hot for fullscreen. Shares of tesla motors have soared over the last year 130 . They have dropped since the record in march. Investors selloff in textures overall. A report last week where Higher Research costs and lower than estimated car deliveries have some wondering should we still trust elon musks grand slam . Research analyst said we should have full faith and confidence. Vision. S great i have been impressed in particular. They are extremely thoughtful and a Strategic Group and have been capital efficient so far. He is a ford veteran and they have been able to acquire Capital Asset at low prices. They have been able to ramp the business. They have gotten a return on just about every dollar they have spent. They say elon has been able to pump up his profits, which are fast dwindling. He delayed his model s several times already. Where is the big Supercharger Network he has been building out . What about coasttocoast saturation of the market . What about the giga factory . You have to take on the risk to reap benefits. The network is on track building all stations. Aaron ahead of schedule a little. On the giga factory, they are on schedule. Let me finish on the margin question. The opportunity for them to expand margins with technology are extraordinary. It is 100 years old. Take able to seeing them it down, it is very much stable. I think they have already started that work substantially. The giga factory is taking production cost out. What they have is a substantial amount of ip. We think there is another 20 or 30 they can pull out. At least one analyst, you know, we know youre trying to break ground on this. Sometime this year. Panasonic is a partner. The question was, dont you have . Nything more this is a big investment for everyone. To move forward with a huge tech right away i do not think is realistic for japanese companies. Going forward. S it is a huge opportunity for panasonic with a costeffective way. Quickly, you wrote this report endorsing elon. Did you get a lot of feedback . Advanced ofct well the industry. Positive and negative on all your calls. Class ok. M is. For more on this, be sure to watch our special with tesla. You can check it out on our free bloomberg tv plus ipad app. More in the loop is next. Move marks the first step of international spansion for the Chinese Company and it comes on the same day head ofthe former International Corporate affairs gets ready for the big ipo. Comedyversal pictures neighbors was number one this weekend. The film knocked off last weeks winner, spiderman two. 51 million according to a statement by researchers. Chairman is in stable condition after a heart attack. Was72yearold chairman necessitated following an acute mitochondria acute it puts an increased spotlight on plans at the giants smart phone maker. Catch all the latest in tech and only onery weekend bloomberg west we are just a few minutes away from the opening bell. The top 10 trades you do not want to miss right after the break. Keep it here. Welcome back. It is 26 minutes past the hour on monday morning. Boomer television is on the markets. Olivia sterns on futures. We are looking at a little bit of a rally early on green on the screen. Futures higher indicating equity markets here in the u. S. Are set to open and rise. Up about 4 10 of one percent. The dow is up by one third of one percent. Nasdaq futures look like theyre opening higher. That is the news because we did again see a big selloff in tech stocks in particular last week. S p is up by two percent year to date. We will be on the markets again in 30 minutes. Questec you so much. A countdown to the top 10. Alix steel joins in as well. Facebook, the social Networking Company has killed. Rivals to snapchat and instagram. Release before facebook launched in january. The department past new developed developing new apps. Number nine is the bio pharma co. Company announcing topline itslts from a free trial of resent to theg to fda. Samsung electronics. The smartphone maker enlisting at least 2 billion in pharmaceuticals. It is targeting the growth, cheaper versions of brandname drugs. Number seven is general motors. The company was ranked the worst big automaker by u. S. Suppliers by a new study by planning perspectives. Received low marks on several key measures including trustworthiness. Visor. Increased public scrutiny. He will be questioned by lawmakers on his commitment to the u. K. He has been summoned by several parliamentary midis to testify on his 160 billion bid for the company. Number five is american tankers. The Company Ended its losing streak, returning to profit in the First Quarter for the first time in four years. In north american tanker also said that after several years of weakness and recovering in the recovering, the tanking market new front liners for its next ceo to succeed. According to the wall street journal, directors have narrowed the field of internal candidates to two executives. And number three, allegan. Is saying it is up tangibly undervalued the company. Stock ise number two twitter. Shares of the microblogging site are getting nearly four percent in premarket after suntrust upgraded the company from neutral to buy. But lowered its price target from 50 to 45. The stock fell eight semi sweet committed lockup expiring. Eight percent last week amid its lack of expiring. And number one, wilshire companies owns other food companies. Our next guest says there is. Alue to be had in the market [opening bell] listen to what he said. This is the time in the market that if its not big over, theres probably something wrong with it. Is saying whatever is left over is basically trash. I dont agree with that. Good down payment on returns last year. Marco was up 20 or more. There are values to be had here in opportunity. Yes, the stocks are publishes isblicious but the market around 15 earnings. But if it harder to find value is it harder to find value . Of course. Smokers, for example, there for example, there are companies that we think you can find return. But the thing about smuckers, alix steel is looking at that company. But the problem with that company is a get the majority of its revenue drastically. Packaging and sales is growing pretty slowly. 1. 4 through 2018 versus three percent in 2004. Thereeaker pricing power, could be shrinking margins and lower profit growth. But there are some risks there. There are, but this is a good reason to buy it. You have coffee prices that are putting pressure on margins. Half of their operating income comes from their coffee division. We believe that will normalize in the course of 1824 months. Nine dollars a share in free cash flow. Aroundthe price target 115 to 125. Lets just take coffee prices. Why do you see that normalizing . Coffee prices always ebb and flow. If you look at your time horizon of three to five years, then you can feel pretty safe and comfortable that there will be normalization of profitability over an extended time frame. Yes, there could be a drag over the next two quarters. Of course there can be. But we think you targeting you are getting a Good Opportunity. His company is not overleveraged. 2 billion in their capital structure. This company is not overleveraged. 2 billion in their capital structure. Olivia is watching how oracle is trading. Oracle has had a very good year, up about 20 so far this year. But there are concerns with the company, particularly with clout. They were supposed to move into cloud services. It, but are doing facing fierce competition from the likes of sap. And there are big pricing words going on in cloud pricing wars going on in cloud. Things are going very well up until the crisis. 2007, 2008, in 2009, but then they picked up again and here we are going out to 2015. It does look like the top growth is pretty much flat. And for the ceo, there is continuing opposition to his huge pay package. He is still the number one top aide u. S. Ceo, making nearly 80 million in the last year. Pensioners are set to vote against it. It seems that the revenue pay likejustify a that. Right, but for our valuations and prices that dont have to grow dramatically, can grow at around three percent of five percent, that gives us a tour a price target of about 45 or 46 per share. This is a value stock. And i think you have a Good Opportunity to invest in this. We have owned this for several years at a lower price. We continue to own it. You havent sold out . No, no. We think there is going to be some upside. We are not talking about a company that has its trading in high multiples. What are we looking at . 36, 37ide of maybe with an upside of 46. We think it is a good risk to reward ratio. Chad, thank you very much. Coming up, everybody wants a piece of fullscreen. Why the Video Network is the talk of the town. And target has a new ceo. We will look at how the guy who did the job in the interim, john mulligan, how is he doing . Time warner has joined yahoo and relatively the Relativity Media expecting interest in the popular fullscreen. We are joined by senior west coast correspondent jon erlichman. I think the price for these companies, john, the are getting jon, theyre getting higher deal with after the disney studios. You are right. Everybody is talking about a bigger deal because of the deal with disney. It starts at 350 million, but if they meet performance expectations committed could be closer to 1 billion. This is kind of like the early days of cable networks. The big Media Networks started moving into cable and started buying channels. Now you could argue that they have these networks of these various Youtube Channels that have become the new cable networks. They have a demographic that the Media Companies are interested in. And suddenly, you get a lot of deal buzz. In the case of time warner, this is a company that has been thinking a lot about this area already. It was an early investor in maker studios, which disney acquired. Warner bros. Owns another one of these channels. There is no certainty a deal will actually happen, but the reason people big about deals is because the changing nature of the business. Other players like yahoo and aol might be interested in the company. Absolutely. You have talked about the aol story and how focused they are and in the same boat. And we talk about yahoo and its video strategy, we talk about new shows and original content. But one thing yahoo has been thinking heavily about is creating its own youtube. Obama has youtube envy in that it has a very powerful network and yahoo might be interested in getting a piece. Wasof the things that reported is that the conversations are twofold. One is, essentially an acquisition. And they have some money coming in because of the alibaba ipo. But also getting to know some of the youtube stars and trying to get them to come to your platform if you unveil a platform, really, that is important for anyone trying to give youtube a run for its money. But these channels, there are hundreds of thousands of subscribers to their channels. But are they making money . Dont worry about money. [laughter] raise a good point. Profitability is something that seems to elude some of these businesses. Is tough, because youtube and this is an advertising business. Youtube takes a big cut of that money. Fullscreen, it was reported they generated between 50 lane dollars to 70 million in revenue last year. Some of that has to be shared with it between 50 million to 70 million in revenue last year. Some of that has to be shared with its business partners. There will be changes in the Business Model going forward. But at the same time, that content is cheap to make as well. Yes, and it is incredible to see how many big players are or wanting to be how many big players want to be a part of it. Thank you very much, jon erlichman. Staying in media, a huge fan of netflix joined us for its content and the way theyve done business. I do like netflix. I like the way they have pretty much pioneered the space. They are artist sensitive people and they seem to be making good choices. House of cards is a brilliant show. You can watch the full interview with brian grazer on Market Makers at 11 00 a. M. Massive dataars breach and fallout at target, leadership is replacing the ceo. ,n his place serving right now temporary ceo john mulligan. The companys former cfo. You are finding some interesting things right now about what is going on in the leadership at target. Mulligan is getting help from who . Her name is Roxanne Austin. Shes been on the board for about 10 years and they have made her interim chairwoman. Experiences of executive lee. She ran other companies and has worked in electronics. Mulligan has been the cfo, but before that has had low level jobs. He has nothing like this before. Who put him in place . He is a placeholder. He has no interest in being the ceo. Nexton as they named the seo, he wants to go back to being the cfo. We found out that Roxanne Austin tomoving from california minneapolis on a parttime basis to be more involved on a fulltime basis to be more involved in the day to day business. What about her . That is out there. We think it will be someone with retail experience. She has done directv and is on the board of abbott laboratories, a big pharma money. Company. Pharma it sounds like shes playing a bigger and bigger role. This new management at target, they are dating dealing with a data breach, losing consumers, and competition from amazon. What are their other big challenges here . Or is that enough . Not much is going well with target. The data breach is in the headlines. But even before the data breach, they were not growing in the u. S. They had expanded into canada. Well. Nt gone theyve lost tons of money. Why is that . Its a mixture of things. One thing is that they bought this chain that is a great location that isnt a best location. And there were some pricing issues. Canadians could see that things were cheaper in the u. S. Than in canada. Its not going well. And they have gone into cities opening small sores across the country. There is not much going well. Small Stores Across the country. There is not much going well. Crisis management at target right now. Thank you so much, matt. Matt townsend with bloomberg news. Coming up, a look at the Global Economy and the feelings that seem to be hanging around growth. Time now for the global outlook. Financial investors positive about the global outlook. Rob dietrich of the the Senior Editor of Bloomberg Markets jointly. Russia, did that affect the results at all . Certainly, there is an enormous negative sentiment on russia. Think there are a lot of things out there, and that is one of them burning down the overall view that the Global Economy is in great shape. Bringing down the overall view that the Global Economy is in the great shape. Where are the markets in the best shape . The u. S. Market is still looking good. In january, there was greater optimism back and jack and mary back in january. It has come down a notch. There is serious skepticism about china as well, which i thought was a surprise. But that is a little bit of a surprise. What about where they that is a little bit of a surprise. What about where they were most pessimistic . Russia, brazil, china. We asked where the worst opportunities might be, what sort of things you might want to avoid. Russia came up in that. , beingslightly higher negative on the eurozone, because of after the crisis. But i think the eurozone should be happy where theyve been the past couple of years. But the other thing interesting thing, we asked about inflation versus inflation. What are you more worried about, deflation versus inflation . 74 said they are more worried about deflation than inflation. That is a startling number. That is a higher deflation number then we got for the same question for japan. Think about that. Wow, it makes you think about what the ecb is going to do next if they saw a poll like yours. We will send it to them. About leadersat popularity . Angela merkel scored very high. She was at about 79 optimistic, i believe. He still pulls more pessimistic than optimistic among our customers. Interesting. And this is an interesting class you question you asked investors. Advice to give a young person starting a financial career. Yes, yes. These are all people in the business, room number. Remember. , ok, you can go into a finance gear career, but Something Like 36 said, no, dont do it. Why . But a negative sentiment on their own industry. A negative sentiment on their own industry. Wow, very interesting. Thank you. Look at this. The european song contest has given the Swedish Group a different kind of winter over the weekend. A bearded drag queen. Former Goldman Sachs executor jim oneill praised its results. In an interview he said the eurovision contest, decided by viewers across the region, shows that europe works. They can come together to vote her as the most popular singer in the eurozone. What do you think . That they arew together on the key things. On things that matter. That is it for us today. Tomorrow, we focus on the gambling industry. Of penns the ceo national have to say about Sheldon Adelson . That is tomorrow. See you then. It is approaching 56 past the hour, which means Bloomberg Television is on the markets. Im olivia sterns. On the news coming out of the nasdaq this morning, the exchange has rehired one of its copresident s as part of a broadening of its structure. Friedman started her nasdaq before going on to carlisle in 2011. We will show you where stocks are trading right now. In the green on the nasdaq. The leader among the benchmark indexes. The dow closing at a record high, up now about 16,687. About. 7 . Is up one thing that has changed is which stocks are in the front. Mike reagan joins me now with a look at how the leadership has changed. Tell us, what stocks are in the league and why are they so important . Utility stocks are gaining right now for the year. 31 retailers in the s p 500 are up or than three percent from threettom percent from the bottom of 2009 and now they are up about 10 . Utilities may not be the most Exciting Group to be leading. No, they are defensive. They are not meant to be leaders in the equity market. And obviously, not to talk about it too much, but the Winter Weather is a part of it. Retailersor underperforming, but for utilities doing so well, a demand for heating and electricity going up. The question everyone is asking over and over again is the weakness in the First Quarter growth just because of the weather or indicative of Something Else going on . What other things could be going on to cause the shift . Obviously, this turnaround in momentum stocks. Its hard to unravel it. Obviously, the retail space itself, you have Companies Like netflix and amazon that have taken a beating. Twitter as well. Twitter, right. You are looking at Companies Like coach, bed, bath, and the wholest buy, group is down about 20 on the year. You do not want to look for a defensive group like utilities to take that. What are you hearing about the group . The big question is capitalist ventures. The company has been very stingy with for a long time. Capital expenditures. The company has been very stingy capex for a long time. And of course, that all hinges on Interest Rates. Are the internal indicators you are watching to gauge the Market Health . One thing people are very concerned about is the breadth of the market. How many stocks are actually participating in the rally. Like you said, the dow was at a new high today and the s p is not far off. Only about three percent of the stocks have hit new highs for the year since friday. And as of april 2, that was only about 10 . That compares to 39 a year ago. What is going on is a lot of rotation into these big names. The names that we had were Companies Like mcdonalds, pepsi. Showing the defensive nature of the market right now. Interesting. Inc. You for joining us. We will be on the market again in 30 minutes. Live from woburn headquarters in new york, this is Market Makers from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Bringing a kernel case against Credit Suisse could spark bringing a global case against Credit Suisse spark a new financial issue. For artists it mean and labels, streaming download . 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