That interview to continue the conversation. This company is well under its way to try to fix some of the issues that led to that data breach. Now, mulligan says he has three priorities. Trafficking sales here in the anded states, fix canada, transform to an on the channel retailer. Drive more sales off line. He acknowledged that target has lost their mojo. Fixing that is the question of what he calls an shackling ourselves, allowing ourselves to take risks in the stores. When we are at the best, we are driving newness into the stores. We have a great high plane of innovation that were going to bring over the next several months. We need to expand that and get more to the guests. Target is trying to revamp their baby department. Theyre trying more partnerships with sustainable radix vendors. Product vendors. What do the customers want . See what works. That is very difficult to do when youre struggling with other issues. Like an target do about canada . Canada has been a challenge for them. There have been stocking issues there. An issue of translating what works in the u. S. Into the canadian market, which has been very different than expected. Heres what mulligan said about that. In the u. S. , we need to work on regaining our guests trust. We were pleased with that. In canada, we have work to do in front of us. They have made some Management Changes their to try to fix those issues. And, they still have quite a ways to go there. They still have 127 stores in canada. And the future of online for target . He emphasized to the wins that target has made with ecommerce. About 50 of the traffic on their website is mobile. That is an encouraging sign. Target was late to offer instore pickup. That has been very successful at walmart. He said when they did start offering that, they were stunned at the response. Totalaw that 45 of the visual sales ended up being those instore pickups. It seems as though they are relatively pleased with that program so far. They still have a ways to go. Those are the three priorities. As you mentioned, regaining the trust of the consumer after that massive data breach. Bloomberg recently conducted a poll and found that most target shoppers do not anticipate changing their Shopping Habits at target in the coming years, either as a result of that breach or other reasons. Thank you so much. Julie hyman, our senior markets correspondent. In the meantime, back to the economy. By neo is falling vanyo is falling hard. Mike mckee talk to us about how it is not the u. S. Economy. He is back with the real deal. What is going on . Normally you would say we are in some trouble, but we are not. This is a little bit about janet yellen and a lot about mario draghi. He is expected to announce a package of stimulus for the european economy. That is being brought into european markets. At the same time, we are getting disappointing economic data. Look at german pond yields. Not a lot of value left there. Other european bonds offer higher coupons, but they are risky. The u. S. Is not risky. The gap is widening to the largest in quite some time. More than 100 basis points. Investors are taking advantage. Were not talking about the usual suspects. The economy was lousy during the winter, but now the index shows the majority of Economic Indicators coming in better than expected. Theyre showing the economy growing at a 3. 8 pace right now. Deflation may be a concern in europe. Not on wall street. Expectations are under control. Look at the fiveyear break even, there are things moving along. If youre going to talk about concern about the ukraine they continue to fall. You also mentioned about janet yellen here. You start with the u. S. Treasury issuing less debt because the deficit is falling. The fed is tapering faster they are buying a bigger percentage of the bond out there. Up of new treasury issuance, from 63 this time last year. More demand means lower prices. Higher prices mean lower yields. That is one of the factors. We also had the taper tantrum last year. The big rise in yields may have already happened. 820 basis point move is not a big amount of volatility. That will come in the fall. Thank you, mike. Economics editor, mike mckee. And moving and shaking this hour, former microsoft ceo Steve Ballmer. He won the bidding war for the l. A. Clippers. He will pay a record 2 billion for that team. That is almost four times as much as any other pro basketball team. He reached that deal with shelley sterling. Nba owners are set to vote next week on whether her husband, donald, has to sell that team because of racist remarks made a few weeks ago. He will not need a partner to make the deal. He is worth almost 19 billion. You wonder if you did that after he heard he won the bid. I want to bring in patrick wright, a founder of a Sports Marketing firm. He is joining us early from l. A. 2 billion for the team Steve Ballmer really wanted it. No question. The franchise value is about 575 million. That was 12 among nba teams. This morning, there are a lot of people smiling in the nba. The owners and all the teams are going to see their values appreciate because of this perhaps overpayment of Steve Ballmer. He had to do it because of the competitive bidding. There were at least four other bidders involved. So, how does he make money then on this . Or does he . I dont know if he necessarily is worrying about that. Toember last year, he tried copartner in a deal to bring Sacramento Kings to seattle. He lost out on that. Kept that team in sacramento at the last minute. He has already expressed an interest in owning a basketball team. People worried, will he move them to seattle . They stipulate that he cannot do that. He does not want to. Los angeles is a far different market than sacramento. He stipulated that he will not move it to seattle. At some point, could that happen . I dont think so. I dont think he would want to do that. The financials among senseless secondlargest market in america. Several Sports Networks that have come onto the grid. That is going to increase the media revenue for the local tv deal by three fold. He may not make money on this in the longterm, but at 20 billion net worth, i dont think hes worried about that. This is just fun, right . A vanity investment for Steve Ballmer. I know he loves basketball. What is going to happen next . How does this work . Well, ultimately, he will have to be approved. It remains to be seen whether the nba will choose to have a vote donaldeeting to sterling out as owner. Whether or not that vote will take place remains to be seen. If the nba can finalize the deal, they may not have to know that route. Because Steve Ballmer was approved last year in a coownership bid to get the Sacramento Kings, that will make the nbas job a lot easier. Will he have to do with this team . To be perfectly honest, he has to go back and reach out to the community and get this message of inclusiveness. Corporate sponsors were very upset with what took place with donald sterling. Its not the team, though. It was not the team that was not inclusive. It was don sterling who was not. He wants to make sure that he drives that message home to employees, to corporate sponsors. Indeed, the clippers are inclusive. He does not necessarily have to do much with the team. The team has made tremendous strides. They are probably arguably the best they have been in the history of their franchise. Maybe tweak it a little bit. He has the money that he can pay those extra luxury taxes. Good tech ceos make basketball honors . Owners . The history shows that is certainly true. Look at his former boss at microsoft, paul allen, who is involved with the Seattle Seahawks and portland trail blazers. Those franchises have been very strong. I think the nba has got a slamdunk in this particular case, getting this particular gentleman as the new owner. Oh yeah, with that super bowl win by the seahawks, right . Thank you so much. Coming up, battleground texas. The state is ground 04 election fights between the tea party and mainstream republicans. We will dig deeper into them. And the service that allows users to read as many books as they want for a monthly fee. Tflix and they are expanding their library. We will tell you more about this company when we return. You are watching in the loop. Well, the drumbeat continues in washington for the regiment the nation resignation of Eric Shinseki. He may submit an interim report on the state of the veteran healthcare as tunis today. Most democrats are calling on him to step down, including the head of the Congressional Campaign committee. Joining us to look at all things political, former congressman mark frost and his partner tom davis of virginia. Thank you so much. It has been a wild sent to the bin here. Mark, let me start with you. The rising number of democrats are calling for shinsekis resignation. Should it have come sooner . Shinseki is a decent human being. He served our country very loyally. This is a real problem for the president. I do not know how he will handle it. The reason you have so Many Democrats coming out is that veterans are very active in their communities politically. They talk to people on both sides of the aisle. They are very important constituencies. Amocrats are responding to lot of the veterans of recent wars are minorities. Some of the older veterans tend to be white and have also been active politically. This is a very Important Group to most officeholders. This is a tragedy, what has happened. It has to be rectified. The president will have to make the call. Should he make the call today . It is up to him. That is his decision. Wanted aninseki opportunity to try to do something about this. To lay out a plan of what could be done. It should not be a great surprise. Ides are angry about this. It has nothing to do with the quality of the man. He has served our country very ably. This is a political call. It has to be rectified as quickly as possible. The fact that he has such a storied career, tom, do the republicans have to be a little careful here in pouncing on him . And the conduct of the Veterans Affairs bureau . I dont think so. Noted, this is a bipartisan hang up right now. , who havedemocrat marginal seats where the president s numbers are bad, this gives them some separation from the president. The sooner they make this change, the better off they are. They have to show some progress. They have gotten rid of a gs8 administrator who is doing a good job. There was a party in las vegas that she did not know about. I think that this is inevitable. Probably, the sooner, the better. How does that happen . How does it happen that Something Like this that is so systemic does not get to the very top . Say, the v. A. E has been a problem for years in these areas. I think it is the lack of attention. Government is very difficult to manage. The agency has been very hard to manage. Shinseki has been a great secure the top. Underneath, there have been a lot of problems. You have veterans coming back and you do not have infrastructure to support that. I think this was inevitable to some extent. N, no one is questioning the integrity of general shinseki. The Veterans Department has been a problem in both administrations. It is a very cumbersome bureaucracy. It is hard to get handle on. And i think it is something that the president has to speak out forcefully on. He has to find an honorable way for general shinseki to leave if that is what he wants to do. He is a hero, he lost a leg in vietnam. He is been chief of staff of the army. No one questions his ability. Very hardaged a bureaucracy. Really quickly, from your home state of texas we did a story about how the democrats are making a big push to turn texas from red to purple by bringing out the hispanic voters. Do they have a fighting chance in the selection . It is a selfleveling prophecy that we cannot win a statewide elections if we do not run anybody. We have a good candidate who will make a strong race. It is uphill, but we will see how it turns out. We have a good ticket and a good candidate. A good candidate for governor and a good candidate for attorney general. We will make good strides in the selection. Whether we accomplish it, no one knows. This will be a purple state, with no one knows when. How do republicans keep that stronghold . Texas rainout is overwhelmingly republican. Comments, you can pierce through it and see that this is probably not going to be the year for a breakout. The demographics are very strong. There is a rising minority vote, but nowhere near the numbers they need to be competitive at this point. It could be. Hispanic turnout has been very low. We could increase it and have a good shot. Thank you so much. Tom davis and martin frost, thank you very much for joining us. We will be back in two minutes. You are watching in the loop. We are streaming on your phone and bloomberg. Com. Heres a look at the top headlines. New york ranger fans or partying like in 1994. They defeated montreal last night to win their first trip to the stanley cup finals in 20 years. They will play either l. A. Or chicago. A french economist isnt firing is firing back. He wrote a defense on his book on income inequality capital. He is refuting allegations that he relied on all to data. You can read all about that and the latest edition of Bloomberg Businessweek. Love that cover. And the Real Estate Market may be cooling off. Prices fell last month by the most in three years. 1. 4 . Almost half the condos on the market are going for 1. 9 million or more. Wow. It is 26 minutes past the hour. That means we are on the markets. Equity futures are slightly lower. Before the bell in the last few days, we have not seen a lot of movement in futures. We have some numbers coming out right at 8 30. Personal income and spending numbers for the month of april. We are on the market again in 30 minutes. Calls on netflix for books. There is a service that lets customers pay a flat fee for unlimited electronic book downloads on devices of their choice. Kindle, ipad. It is an attractive option for for a shift readers. Simon schuster recently partnered to make their book available. Here to talk about the growth is trish at fire. Great to see you. Is everyone doing netflix for something . It is a great model, right . Consumers can spend one monthly price. Rather than having to buy a book and reading it, you can do it everyone. If you do not like it, there is more flexibility in choice. How do the publishers get paid . It is much different to an access model. When you read, the publishers get paid. Isnt there something where if you only read a few pages, then the publisher does not get paid . When they crossed the threshold it depends on the book. It is different if it is a cookbook versus fiction. How much does the publisher get paid . We pay them as if they actually sold the book. They basically pay as they sell the books. Ok. How do you get paid . The description is that people keep them for a lot of time. They keep subscriptions for many months. They pay the monthly fee and then you pay. We are able to make it work as a result. Are you profitable . Were in a really strong cash position. In a good spot. Not profitable yet . We have been reinvesting in the future, so the financials are changing. You have had trouble signing publishers onto this . It has been going well so far. Yesterday,d persius Simon Schuster the previous week. We also added the first book from harpercollins. It is another endorsement the publishers are looking. Were going to reach a tipping point. What was the biggest question . Itm knowing book publishers, is not the most nimble of companies. Theyre always trying to protect their business model. What has been their biggest question . They just want to know that their model is going to be in the industry for the long run. They went to know that readers are getting something out of it. They also want to expand the market in the long run. Therefore, people read more books. What is most popular . What gets people wanting to subscribe . We have a really broad library. Everything from fiction to romance to mr. He. Mystery. We even had a reference category recently. Is that some of the most popular downloads . It is up there. We also have lonely planet. Fiction is probably still the most popular. We are seeing that books get more popular. Trip, you must have the position that bookstores are dying . Not really. We are sort of like the digital version of bookstores. Canou go to our site, you visit a bookstore in the physical world. Amazon is a digital version of a bookstore. It seems as if what youre saying is that people do not go to bookstores and browse. If they did not buy the books, there are stuck with them. It is just another way to not go to the bookstore. We have had a really different experience. Once you pay, you can read whatever you want. There is that feeling of being a library. You can browse around and sample books. Were a bookstore. If you do not like the book, you can switch. Great to see you. Thank you so much. Trip adler, the cofounder of scribd. We have breaking news on personal income. Up 0. 3 . That is what was expected. . Ending declined 1 10 of 1 that is a reversal from what we have seen. Mike mckee has been digging through those numbers. [audio deleted] not a great number, betty. Personal income is pretty inline. Spending is a bit of the disappointment. It is down on the month of april. That is a surprise. We also have seen revisions higher in march and february. That is a little bit of an edge. Not exactly what we want to see. On the income side, that continues to rise on a 3. 6 annual rate. We are starting to make more money. Wages and salaries going up 3 10. Not as good as it was the prior month. We are starting to see progress there. If that continues, we will see people able to spend more money. One quick mention of inflation. The index that the fed follows. No change. We are still on hold there. [audio deleted] thank you. Mike mckee on the reaction to those numbers. Coming up, a 6 billion food fight. They are battling it out over hills shy or brands. We will tell you which company is winning it out. Valley are silicon not happy with it grabs at prices while doing nothing to help the poor. Mark zuckerberg intends to change that and we will show you how. Happening right now, Eric Shinseki is speaking to the annual meeting of the coalition for Homeless Veterans in washington. He is due to give his internal audit of the v. A. To the president today. He did to say that the last few weeks have been no doubt challenging for him and his team. We will continue to monitor his remarks and what else he has to say about the ongoing investigation. It wasnt all on the live event channel at bloomberg. Com tv. And it is time for our big number. It is 120 million. That is how much money Mark Zuckerberg and his wife pledged to give to low income schools in californias bay area. This comes as Companies Come under fire, accused of driving up housing prices while giving little thought to the core communities. Poor communities. They will turn new Public Schools in the bay area. And there is a serious food fight going on in the m a ma rket. Tyson foods is bidding for hill scheier hillshire farms. For more on this growing am bidding war, were joined now by Duane Stanford from atlanta. You were there when the news broke that tyson was bidding for hillshire. What is so appealing about this company . Youre right, it is quite a food fight. Imagine if your tysons or pilgrims. You raise cattle and chicken and you process them and to raw meat and package it up. If you couldinute actually take that and add some sugar, fat, and salt. That could taste really good in the lunch meat. You could send that to stores in convenient packaging. People could take it and eat in different ways. Still it in a lunchbox or the microwave. People will pay a lot more for that kind of convenience and that kind of packaging and value added. Want ton and pilgrims get out of this commodity meat business. They want to get into that highermargin, hillshire kind of business. Does that mean that the offers will likely go higher . One analyst as saying that tyson could potentially pay as much as 63. I think it will probably be more in the range of 50. Theres a 30 to 40 chance that it could go into the high 50s. High 50s 50 bid to or up to 63 . That is right. The market seems to think a couple more dollars. That is probably realistic. Theres the possibility they could pay more if pilgrims wants to push it. That is somewhat of a question of whether they want to go to much higher. Is there any other player that could come in and spoil it all . Hormelle are wondering, seems to not have the capacity to do a deal this big. There is some thought that you might have somebody else come in. Most analysts seem to think that tyson is the one that will prevail here. People are waiting to see whether pilgrims has the firepower and desire to get into a fight with tyson. What does tyson need to do, duane . Aside from pushing up their bid price . Is there anything else they could or should do to seal this deal . I think it probably will be price at this point. They have secured pricing that is one consideration. They have done everything they need to do. It is just a matter of the board going through the proposal. Hillshire thinks both are compelling. It is just a matter of, in the end, who is willing to raise that bid. You get the feeling from analysts that that is a good chance it will happen. All right. The shareholders of hillshire must be happy. Thank you so much. Hang up for pork. Another fight we are watching closely is something very different. A space race. Making headway, the spacex ceo, elon musk. They unveiled a dragon v2 spaceship at their Technology Factory in california. The reusable capsule will take astronauts to the International Space station in two years and can carry as many as seven people and up to four tons of cargo. Coming up, it is the Ridesharing Service that everybody is talking about and using. Money . S uber make were going to find out in a moment. And nintendo has pinned its hopes on that plumber and his friend once again, they have come to an intend ohs rescue. After the tragic shooting in california last week, the issue of gun ownership is once again in the spotlight. Colt is one of the gunmakers based in connecticut. Despite demand for its rifles, they have put some of their Quality Control issues behind them. They find themselves on the edge of financial disaster. Paul barrett writes about the company in the latest edition of Bloomberg Businessweek on newsstands today and available digitally as well. Paul, great to have you back. In light of the tragic shooting, as i mentioned, the Second Amendment is again the issue of the day. Manufacturers, theyre facing very different issues right now. The gun industry is a small and generally fragmented industry. In the face of perceived threats of greater gun regulation, most gunmakers have actually been doing very well the last of lawyers. An exception is colt. Theyre one of the oldest and bestknown names in the firearm industry. For peculiar reasons, they find themselves with declining revenue, a high level of debt, and serious questions about their financial future. What is going on . One of the things that has been going on is that it is now owned by private equity investors. They have done what privately and back stairs 0 investors do, borrow against the reputation of the company. They take assets out of the company. You end up with a highly leveraged company. Now, colt, in the wake of the wind down of the war in iraq, a company that relies heavily on sales finds itself with real questions about revenue levels. This is not the first time they have faced financial disaster . Their entire history, going back to the 1830s, is marked by a roller coaster, upanddown pattern. Samuel colt himself, the genius of design, failed as a businessman. Company went bust after six years and then revived and became strong as a result of his sales in the union army. Upanddown, the company has gone through wartime. It tends to get big and strong. Almost before the conflict is over, they seem to have financial troubles. That has very much been the case in the last few years. They were in bankruptcy proceedings in 1982. Font out of bankruptcy. They have gotten themselves into all kinds of tangles with the nra and gun rights advocates. It has been an extraordinary and unique story. There is no name better known in guns than colt. It is really one of the bestknown brand names in any industry. Yet, it is a company that is very fragile. Will arise again . Well have to wait and see. Illing, i think old will be in trouble if we do not have another war. Think you so much for that story. You can read more about colt in the latest issue of Bloomberg Businessweek available now. It is free on your iphone, ipad, or android phone. Has exposed the annual salary for its drivers and you might be shocked by how high it is. We will take a look at how the Ridesharing Company makes money and how drivers make money. Plus, the fight over raising the minimum wage is picking up steam in one state and a major city oks plans for an increase. Were are just Getting Started on this friday morning. We will be back. Happening right now, Eric Shinseki is speaking today no meeting of the National Coalition for Homeless Veterans in washington. The president will be meeting this morning at 10 15 with the secretary. The meeting will happen in the oval office, where obama will receive an update on the situation at the Veterans Affairs. This is been a trying last two weeks. You can watch his remarks on our live event channel right now at bloomberg. Com tv. And uber, the Ridesharing Service that you know and probably love, announced this week that the median salary for a new York City Driver could reach 100,000 per year. With builtin tips, and no annual charges, we wonder how do they get paid . We asked and answered the question. How does uber make money . First thing is first, we are a mobile app that connects passengers to dedicated drivers. A cap from the comfort of your own home. Stealingbeen passengers and drivers from city cabs since 2009. Net revenue is 200 million. They may soon be worth more than 10 billion. That is because they are growing fast, operating in 120 cities and six countries and employing more than 900 people around the world. This mobile app helps bonser one million request per week. Ultimately, uber is a middleman. Its drivers take passengers around in limos and passengers. But uber does not own any of that inventory. As a recruits new drivers, remember, they may want you,. Not just as a passenger now you know. And in this verse is that, the move to increase minimum wage picks up pace. This is to move above 7. 25 per hour. Seattles city council signaled their ok for the highest of any u. S. City. They have approved raising the minimum wage to 13 per hour. Andtle restaurants, hotels, employees say this is a bad idea. They say it could force them to raise prices, lead to job losses, and force smaller businesses to close. Business lobbying group say raising the minimum wage is not the solution. They say attempt to create entry level jobs. The hour,inutes past which means we are on the markets. Futures right now are slightly lower. Personal income and spending numbers income numbers were in line with estimates. Spending was down 1 10 of 1 . We are on the markets again in 30 minutes. Pimco has been looking all over for a replacement for the former righthand man. They may have found somebody. We will tell you more when we return. And a big day for nintendo. They are trying to turn their fortunes around. The latest installment of the legendary franchise. Who will succeed . Well find out. But the s p begins at another record high even though futures are opening slightly lower. Authorities say the french bank violated u. S. Sanctions by doing business with iran. Nintendo is hoping super mario can be super once more. The Video Game Company hopes to jumpstart sales when it releases mario kart eight in the u. S. Today. Themed al area unexpectedly left his role as ceo. Paul macauley has been rehired. He spoke on bloomberg surveillance, declaring a victory on the board against inflation. Wonderful we we won the war against inflation. Actually you could have a time of reasonably low volatility. For more on his newfound role i am joined by sheila. Hashis the third time he been hired . People were anxious after Mohamed Elerian in january he left a big hole. A there was concerned there wasnt anyone there who has the gravitas of stature and experience to provide a counterweight to bill gross himself and challenge him in the Investment Community meetings. Senior personry there. He has been around the block. Has he considered a successor . People certainly suggested that. He could pay that he could play a role as an interim continuity figure. Not becauley will managing money and he will only be working 100 days per year. It seems clear he does not want to get to fully involved in the fulltime management of the firm. To remembert thing is everyone really likes him. He is a highly economic highly regarded economic singer. Presencee a calming because he will serve as a that has been missing since elerian 00s you did that great profile peas. How is it now . It has definitely improved. A lot of positive attention the firm has received as a result of this because it has been received very well, they were really hurt. Bill gross was hurt but all of this negative press coverage and all the scrutiny. Elerian thered are reports they had some ugly fights and arguments. Thisgross was portrayed as autocratic and typical person to deal with. I think the way the firm has he is this news taking some of the right steps to calm things, rebuild the firm, and hire new people. What is he doing aside from working at pimco . He is involved in a lot of philanthropic activities. This is something that is really important to him. He will continue some of that. Perhaps some point down the line we dont know. It looks thank you so much. Thank you so much. A moving and shaking this hour is the winner of the National Cell winners of the National Spelling bee. Since 1960st time two the spelling bee had cowinners. They both missed the same word and got the last 12 right. Seuilleton. Correct. [applause] congratulations to both of them. Certainly nerveracking experiences for both of them. U. S. Authorities are seeking more than 10 billion to end the criminal ball criminal probe to resolve allegations on whether or not bmp violated sanctions by doing business with sudan and i run. And iran. Bloombergs kerry geithner is here. Amount a settlement escalated to this amount . That is a great question. Figuremuch overnight the with about 5 billion to 10 billion. It appears authorities are really seeking to crack down. Pain is a bit of a threshold. Analysts say they can take about 7 billion of fines before it starts to hurt or impact their capital ratios. Is that the negotiations are still going on. It is going to be interesting to see what comes out in this case. It merits such a big fine. This is bigger than what bp paid. It was a major u. S. Disaster. Where does this stop . Are there u. S. Banks that could be targeted next . There is a possibility this model can be applied to more banks. Banks can probably take finds like this a little bit easier. They paid out billions of dollars over the last 12 months. Their share prices continue to go up. It is business as usual. This could benks problematic, these types of signs and negotiations. It could really hurt the bottom line. Formula where the fine is big enough to develop an impact but not too big to put them out of business . Clock that is all part of the negotiation. I dont think theres a number crunching situation that happens. Theyre definitely looking at what numbers they can and cannot take. A allday have to do is put their banking pull their banking license and they can be done. There does seem to be a willingness to negotiate with the banks, how much they can take, how much money they can pay and keep doing business. Thank you so much. Coming up, it is super mario to the rescue. At least that is what nintendo hopes will happen. We will see how bestselling drugs do when you dont need a restriction anymore. Nintendo has been on a bumpy road lately. In the last quarter the company lost 300 million. Now it is spending much of its hopes on its newest take on a familiar franchise, which is what you are watching right now. I would like to welcome the executive director of one of the topranked graduate deeming schools. Graduate gaming schools. With matt miller, who was playing mario kart 8. First off, what did you think of the game . The game is legendary. Anybody who plays video games at all knows about mario kart. It doesnt matter if you are an old gamer or a young gamer. It is the kind everybody recognizes. Everyone can easily start to play it. Partthe reason is it of the reason it is so successful, this franchise alone has sold more than 100 million copies worldwide. Obviously it is the most successful gaming franchise in history. Nintendo hopes it will sell more of their new console. It has only sold about 6 million or 7 million. They are hoping this game gives them a boost because you can only play it on the we you on the wii u. How big of a deal is this for nintendo . It is important for them to validate their franchise. Mario kart is a huge franchise. Been around forever. It is important for them to validate the mario kart franchise in franchise and this new product should help them with that. Similar with a lot of entertainment companies, disney is similar. They have great ip. Mario, justkemon to about anything thats nintendo sunk its teeth into. They created great franchises. Is whether iton being playing cards, television, movies, mobile systems will change over time. They are in a bit of a transition stage. It is important to keep the mario kart franchise moving forward. Talk about the cross promotion with some luxury automakers. That is something nintendo is doing. Want to focus more on marketing these characters like mario. In japan there is a commercial where mario is driving a roombas and steps on a on a goomba. They also have the car, the , in the japanese version. Theres no word on whether they are going to start doing that here. It is safe to assume that is another revenue stream. This is a company that lost hundreds of millions of dollars last year. There are used to making 1 billion or 2 billion per year. They have to get the low hanging fruit by putting out a game like this. You have alluded to this. You chime in here on the whole mobile gaming acts that mobile gaming aspect. Know if they are doomed. I think they are continuing to evolve. We were used to having three major console makers and microsoft, sony, and nintendo. Nintendo has been here before on the console side. They know how to come out of it. Is definitely a lot more competition out there. All three of them are facing it. Idea of one set box console from a Gaming Company in the future, five or 10 years from now, they will probably be integrated into other set top boxes. Forget that nintendo basically invented the mobile gaming thing. About 150, 100 60 million 160 million units. They can really take advantage and leverage those products. That is what they are hoping to do. Xbox and playstation they are not limited to just the console arena. Off theld not get them nintendo ds last night. Matt miller of bloomberg news. Also thanks to ben knoll, the executive director of rfid a. Of fiea. Drugmaker lilly is planning on sending planning on selling cialis without a prescription. Atomberg business week looks the companies that attempted the same move and are there any data trends to say what may happen . Many compounding factors that make a lot of these comparisons. Drugs go fromther prescription we have other examples like allegra. Claritin is another one. Sometimes it works for you and sometimes it doesnt. Not want to goid otc but they are forced to do it because Insurance Companies wanted to play wanted to pay less money for allergy medication. In the case of clairton there were different stakeholders there. Different companies had different rights to different parts of the drugs. It is not necessarily a good comparison. What is the closest comparison to cialis . Allegra is the best comparison. When you look at the chart of what happened, that is when you can first start getting it overthecounter instead of getting a prescription. Generic sales just got destroyed beautiful within a year they just went away. That is because everybody could get it overthecounter. Why would they even bother getting an appointment with their doctor . There are also variables that helps cialis because theres a stigma to going to your dr. It is basically viagra. Basically the competitor. You can use it once a day. There are some issues that people dont want to go to their doctor didnt to their doctor. At least it is one less conversation you dont have to have. Forould be a better deal them. Thank you so much. We are just a few minutes from the opening bell. We have the top 10 traits you dont want to miss right after this break. It is 26 minutes past the hour, which means Bloomberg Television is on the markets. Scarlet fu has the latest on futures right before the opening. Futures have been holding below the unchanged line. Things did not change that much with the release of the 8 30 economic data. Still waiting for the university of michigan to throw confidence numbers out in half an hour. The yen is stronger versus the dollar. Japanese data showing a bit of a pickup in inflation. The 10 year yield is inching higher before the month of may. Treasuries on their biggest monthly game monthly gain since january. Quite a rally. Open with thehe top 10 page here are the only traits you need to know about. Mike mckee joins in. At least four firms have downgraded the maker of computer networking devices following fourthquarter results that trailed estimates. Robert thomas will step down as soon as a successor is found. The Cloudbased SoftwareCompany Rising for this fiscal year. It will be higher than previous estimates. I can beat your beat with number eight, on the vision on the vision o mnivision. The company raising forecast for revenue higher than expected. The makers of those buddy mac forecast earnings will be significantly affected by inventory reduction. Companies forecasting and operating losses are shy of estimates. The closeout retailer reported sales of one percent. Losses in canada wiped out 25 million from the top line. Salesforce. Com salesforce. Com teaming up with microsoft to make some of their products work together. Of it will allow salesforce programs to be used on windows and phone operating systems. Retailer still setback from a data breach that exposed card information of 40 million customers. That has been it take challenge for John Mulligan been a challenge for John Mulligan. Them a number three shire. There is a bidding war for the food company. Bidn making a 6. 8 million 6. 8 billion bid. It would be one of the highest prices in the food industry. Is optimism of the higher bid. Shares of the Energy Company on the rise as regulators oppose streamlining the approval process for projects under the proposed liquid natural gas projects with the best chance of being completed. Number one is express retailers that targets young adults. It missed revenue earning and comparable sales estimates. The Company Blames slow selling spring inventory and poor execution of its strategy. Another retailer that is struggling. The a want to bring in matt mccormick, who is the principal and Portfolio Manager who manages over 6. 5 billion dollars. His call is basically choose apple. Stocks like apple over amazon. That speaks to a bigger issue that you are seeing in the market. I think when you look at the markets today there is a great deal of uncertainty. Is theu look at apple it best performer in the s p. I think one of the underlying themes is when you look at amazon, it has a monster are trailing ep. Monster trailing epp of ep. Tesla and facebook really helps the markets in 2012 and 2013. The dividend paying names, the load names are driving the market. You think these stocks are going to crash and burn this year . Absolutely. You look at fundamentals, you look at missed earnings. I think when you look at expectations that were high after lowering, investors were getting more choosy. Top, goe cream off the to something that hasnt worked over the past two years, that gives you built an downside protection. I think the dividend trade is the way to play it. You like another stock which is like an apple, and scarlet has been looking at the cop should the caution. The ceo try to launch his lt ep different told te. Difficult to predict. Allegations of bribery in the country, which is overhang on a country that relies on china for one third of its sales. What about those risks . Those are issues that we acknowledge but we think it is something that frankly a lot of companies are dealing with the same allegations in china. I look at the Dividend Growth for qualcomm. When you see Companies Like apple and qualcomm that are increasing their dividends a substantial mount gives a strong sign of future management. Where wet is a mission have been buying on weakness and still have a very longterm positive outlooks on qualcomm and apple. And talkturn macro about where inflation and bond yields are heading. Mike mckee, our economics editor, has comments for comical he. For paul macauley. Were going to replay that in a few minutes. Basically what he was saying is there is this new neutral out inflation will grow slowly they do not have to raise Interest Rates as much. Thatave to think about how is going to affect valuations Going Forward dineequity market. The fed isthink expected to raise Interest Rates. When you look at why the 10 year a lot of it has been due to the pending ecb action. I think the dividend story is that you look at trailing pe valuations for the dividend paying stocks, they are very cheap. The nondividend paying stocks are back in 2007. It gives me cause for concern. New at the market today, stocks with lower pes are outperforming. Think this will be a grind it out market. Even though inflation statistically is not their i think the statistics are flat out lies. Youre seeing people pay more for food, more for energy, more for health care. Theyre paying more for less and that is impacting consumption. It will impact the market. Mccormick and scarlet in mike mckee on the call. The creator of star wars has a new we will tell you which cities are in the running to house his gift. And a brooklyn brand to open a brewery in the heart of the city. The former lucasfilm ceo and owner is looking for a namesake museum. Thealker ranch should be top contender. The windy city is coming in with a challenge of its own. Chicago, known for wrigley field, will now be home to , and Everything Else that comes with george lucas. Winwin for the city of chicago. Rahm emanuel set a target at 55 million chicago visitors per year by 2020. Help closeeum could the gap. Of all the things i have seen in my three years on the job, this is one of those game changers. The proposed Cultural Arts museum would be a 300 million showcase for his personal collection of art and memorabilia, featuring names like rockwell, parish, on dollar, and federer. And vader. Ter chicago will what lease chicago would lease this land for earned 27mpire has billion and with another movie in production and two more planned, theres no apparent end to the interest in the franchise or the man who started it. In San Francisco, federal his originalected proposal to build his museum in the National Park overlooking the golden gate bridge. Home leaders are hoping team and vantage can win. We think it is a natural tie. Media, ities, digital is his home. Ever since his marriage to million to melanie hopson chicago hislled second home. Getting in and out of chicago will be easier than getting to one coast to the other. Impossible to see, the future is. Lucas is expected to select a location the summer. Who will it be . We are now joined from d. C. Has San Francisco offered up any new locations to get this . Yesterday up they upped the ante. A personal letter was since was sent to george lucas. He writes about the many merits including that, it is wind protected and enjoys an average 300 days of sunshine per year. While San Francisco is the most obvious choice and does some might chicago is seen as a worthy opponent. It does look like chicago is seen as a worthy opponent. Ted was a huge winner for Seth Mcfarlane. Our senior west coast correspondent Jon Erlichman has more on his new venture. To die inlion ways the west is a film coming out this weekend. He has had success with family guy, i think if you set a couple of years ago he was going to do live action comedy westerns people would have said good luck. As you highlighted they already said good luck with a liveaction comedy about a raunchy talking teddy bear and that turned out to be a massive hit. That starts to draw attention to the company producing these films. Capital has been associated with a number of bigname movies and television over the last couple of years. They also have 20 to jump street, alesia him jump and house ofum, cards. This is a company that takes risks with its projects but try to be savvy on how these projects are financed. Sounds like with house of cards mrc is comfortable with both traditional film and tv and also with digital. That is definitely fair to say. Going back to Seth Mcfarlane, one of the earlier projects they backed was a web series that Seth Mcfarlane did. It was a cavalcade of cartoon comedy. When you look at the , it is of hollywood based not just on film and Traditional Television but what you are doing online as well. Thank you pete senior west coast correspondent Jon Erlichman. Reglan brewer ricos on tour. We will tell you where one of the signature exports is heading. They team up with carlsberg to open up bribery in stockholm. Bloombergs correspondent hans nichols went to investigate. Brooklyn brewery is a power brand with an enviable problem. It is getting to global. Their tonic partnered with a local rumor and lets the yeast to the hard work. Hopsx in the right type of , it gives you a pallet of possibilities to push on and paint your better paint your beer. The ideal was if this blows up the cause of the gas it will blow up towards the water and not damage anything else and any other industries. The goal is to give Brooklyn Brooklyn most loggers a beer brewed closer to home. Beer is a foodstuff. Know whereant to their food is made. What the eat, what they drink. The brewery wants to become one with the city. Smell it. Really this will go over the Water Treatment plant and get converted into buybacks which will then into biogas which will then fuel the plant. You move it from brand to brand but you also move it from buying cheap beers to more expensive beers. You have a value that grows more than the volume. I would not say the cost strictly correlate also. For the taste test. Two Straight Lines of beers. Im going to try this here. It makes me feel exceedingly witty. Hans nichols, bloomberg, stockholm. Taste tester to your job description. Nts joins us from berlin hans nichols joins us from berlin. Is the beer different . I havent done any Real Research so i couldnt say that. Sayll sake soaked i will sources say it does taste similar. They have an exchange program. They are experimenting with new flavors. I know i should be rightfully mocked for this because i essentially went to a per he on the companys dime to a brewery on the companys dime. It is a 12 billion per year industry. You look at the growth areas in sweden. It was at the two percent growth last year. This is where we see grants to grow. Opportunities and grants to grow. Does sound good. Any sense on how the brand is going to do in the country . They just started. They are in this Old Industrial part of stockholm. The brewery was hopping. We did one night of reporting on this. Their sales are growing. Theyre mostly doing kegs. Researchmportant discovery, i finally got to ask someone how you clean the inside of a cake. Cake of af a keg. A lot of steam and a chemical compound. To get it mixed up so im not going to sit on their. In on air. Interesting. Did you miss the fact that youre trying brooklyn brewed beer . To give you a taste of the home a taste of the u. S. Again . Got that wouldnt go that far. Germany has a reputation for great beers. Beer cultures are quite there isnt a craft brew culture here. It is starting in berlin but most of the rock most of the microbrews are owned and operated by americans. The beer culture is changing in europe. Microbrews are big in the u. K. They are big in sweden. They will trickle down into germany and there will be a big change. Thank you so much. Hans nichols and berlin. That doesnt for today that does it for today on in the loop. Bob rice is joining me tomorrow on a big announcement. That is next week ill let the pm eastern time. All at 8 a. M. Eastern time. Bloomberg television is on the markets. I am scarlet fu. We had just gotten a final read on Consumer Confidence on this last trading day of the month. It is an inch higher. It is an increasing higher read where we get where expenses was for a read of 82. 5. This is a weaker than expected Consumer Confidence number. Not Much Movement on u. S. Stocks. A were already in the red. They continued to hold in the red. Emerging markets stocks have been weaker all morning long. We also know the yen has little change right now. Inflation had give the yen a little bit of a boost earlier. The 10 year yield at 2. 48 . Treasuries are heading for the biggest monthly gain since january. Is their complacency in the bond market . Many investors believe there will not be any change anytime soon, which means theyre taking more risks. , im joined bys lisa and what are the signs youre looking at . People are really nervous about going into the liquid bonds. It is when people want to get out when they could. You are seeing people push further and further into debt that is not frequently traded. Toy are borrowing more money buy debt through leverage. This is all fine if everything stays as it is right now. This bigger risk, yes it may lead to bigger returns but it also may be eager risk for the whole markets. That be bigger risk for the whole markets. May be bigger risk for the whole market is. What you have is a lot of products geared towards individual investors that are traded like stocks. It offers them exposures to bonds that are not very liquid. There is a mismatch in liquidity. People are getting in through the appearance of liquidity that may not be there. The trading volumes are just not there. Unique institutions to create that liquidity. The issue is it has been a oneway market. Everyone wants to buy and nobody wants to sell. That is supporting the market. On the way up there isnt that much liquidity. The consequences could potentially be more painful to some investors. To fixed income is that the u. S. Economy will accelerate and will pick up speed. Has this not been priced in at all. The question is what is the consequence if the economy does accelerate . Banks toompt central pull back. That would actually not be fantastic. Its kind of tricky. People are hoping the growth will accelerate but not too much. So much fornk you providing perspective on the fixed income markets. Again on the markets once in 30 minutes. Market makers is up next. Clock slide from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Steve ballmer, we know what he is doing. He won the bidding war for the nba los angeles clippers. Record 2 billion. We will be asking questions