She will hold a q a session to the press about 45 minutes from now. Tell us what is at stake for barbara barra. We are seeing protests not only for people angry about the ignition switch recall, but also protests from workers in colombia who were injured and are unhappy about that. A Shareholders Meeting is the place for anyone who owns a stake in the company to voice grievances. This meeting was only an hour long. It is guaranteed to be longer. Members of the press to get their questions out of the way before the annual general Shareholders Meeting begins. It is a really difficult day for directors. They have not said much, named in a lot of lawsuits. They will be running the meeting. Companybe the whole really taken responsibility here for what happened so far. 14 million recalls, 12 times the amount of cars the company has sold so far this year. Less incredible. What about the legal side of the meeting . Class you are already seeing decisions coming down. Last night, decisions coming group together 80 different lawsuits and bring them to new york, where general those are losses for economic lawsuits and not personal injury or wrongful death. They are keeping those separate and trying to do with it out of court. They are trying to group them together, group lawsuits, General Motors is trying to have one suit rather than four in a preliminary stage. You will hear a lot of that today. I imagine. How much do you expect mary barra to say about that . Be one of the main issues, aside from the human story, the personal tragedies that have been caused by this. There have been 1. 7 billion already paid out by General Motors. The question is how much more will be paid out in the future and how much will the company suffer as a result . Sales so far have been going strong. Will it affect how customers see General Motors cars . Thank you. Lets turn to another meeting, yesterday. Some investors trying to strip the netflix chairman and ceo. Role. Rity backed his dual a slim majority. Alex joins us now. Tell us live this vote failed . Netflix is doing awesomely. Pushing two separate chairman and ceo. The board should monitor the ceo so how should that person be the leader of the group . The reason it failed for netflix is because there is not a lot to complain about here in shares have doubled. Star star at a all time high. Service for on its the First Time Since 2011. If it is not broken, do not fix it. One of the companies underperforming . Class that is where it gains a lot of steam. Separations of ceo and chairman are most successful if there is a performance problem. You could argue there is a need for change. Split thepanies have chairman and ceo roles. That is from 10 nine percent. The riseartly due to of activist investors. Here is how to work. The board can hire two new people to start fresh as ceo and chairman, or they can strip the title from the ceo. Ceoou can have the current stay as chairman but brion and on the side. Typically, they reversed course. If the stock was struggling, it rallies. The most successful here is a demotion. Here, take a look at peak energy. The company was running short of cash trying to sell assets. The stock has now since rallied. Abercrombie fitch is a similar example. An activist investor engaged cap little push for a new ceo search. Moves can be bad for stocks. A chairman who wants to become ceo get aggressive. Medication issues can undermine the position. It can get very complicated. Thank you. Staying on netflix, the Video Streaming Service does not hold viewing numbers for original series. Judging by pirated downloads, the Second Season of orange is the new black is a big hit. It was illegally downloaded about 56,000 times there that pales in comparison to hbos game of thrones, pirated 1. 2 million times. Joining us now is an Advertising Industry veteran who works in digital sales. The founder and ceo of a company specializes should netflix Start Publishing their numbers . Not until they have them exactly where they want the men are comfortable living with them. They have them right now and art dealing directly with consumers. At least what i hear, they are probably a few of the shows and movies are the things driving most of the viewership. The original series are really driving them. Anecdotally. A lot of people think most viewership is coming out of kids. 52 you make of a pirated download . It is a significant issue. They love to talk about pirates as a popularity batch. Badge. International spansion is important to the company company. To maintain the revenue base when you have a lot will be a significant problem. Insights right now with some of the operators. Verizon has gotten aggressive with comcast. If you want to protect from piracy, your best friend are the operators. Why are they not controlling it . Class they may not have a lot of financial interest in it. Netflix eats up a lot of bandwidth. It is interesting you bring that up here netflix said they d and ewnd e3nd end the name and shame. They did that with verizon. Verizon came out. Program. Now end the was that a wakeup call for netflix . Less i think so. They are not a startup insurgents anymore. Likehave to learn to play and abc. Irectv that is a game. They snipe at each other and push for leverage. At some point, will netflix have to return to an advertiser supported service . Class it is inevitable. I do not know whether the company will be able to live on one revenue stream where it of days amazon is going its library significantly. People who are amazon prime subscribers, it is free. Watch alibaba. Is a company that has played out of other peoples playbooks incredibly successfully for the past 10 years. If this is working well for amazon with alibaba going public later this year in the u. S. , why would they not get into the streaming business and why not undercut the prices . U. S. . They have a big enough market in asia. When you have seven percent of all commercial transactions in china, you have to wonder how much you will really grow there. We have been making a lot of investments in the u. S. Over the past years. That is one i will watch. We will talk more with dave morgan. Moving and shaking this hour, emerging markets guru mark mobius. He is high on russia right now. He says there is a fear sanctions will inhibit russia posses ability to operate in the global market. He believes fear is over done. In an interview, he was asked whos impressed them the most of this year. He has shown a great deal of control and restraint. Being very logical in his decisions. Coming up, the la kings are on the verge of winning another stanley cup here the big winner maybe the nhl. It is a battle of the german automaker is peered a longtime leader in luxury car sales. We are just Getting Started on this tuesday. You are watching in the loop. , netflix are negotiating with advertisers. Money is starting to move. Nbc universal looking at price hikes of more than eight percent from advertisers. Does this mean the call for Television Advertising is in decline . For more, i want to bring in the Senior Vice President and director of research at horizon media. Ad the ceo who has worked in before. Let me start with you first on this. Were you surprised they continued to secure the increases . Class i am not surprised. A great demand because ratings decline. You have to buy more commercial units to get the same advertising you get the year before and the year before. They get rewarded or failure, which is wonderful. How does that happen . Class what drives rates is demand here not ratings. Are doing a five rating and you do five points, you have 100 units. To get those 100 points, you have to buy more. Prices. Ps the that is the reason you say Television Advertising is still your tuesday very classy s. 100 yes. Gross viewership is up. Total viewership is continuing to grow. We have probably last note, but even though all of the units have gotten small, there are a lot more viewing units than ever before. There has not been another platform that allows you to reach the broadest number of that isn one shot. Basically all it is. Yes. We have seen a decline of other platforms that used to give some of that. Newspapers and magazines and radio. Which have gone digital. Either gone digital or crushed by it. You know, Even Television is getting a little push back. Tend to betters younger folks, people who live alone. These are the ones who have cut the cord and are watching content strictly like netflix. On mobile devices. Is the clock ticking . It was a story out last week that mcdonalds, clearly one of the largest advertisers out there, recently set up an office in silicon valley, a digital office. They want to not only figure out their own strategy with reaching consumers on social media, but they are also looking at, how they use the Digital Space to get to more users . Inevitablere is an massive destruction coming. , sixer it is four years years, eight years, or 10 years, no one is certain. Growing viewership or solid viewership, the efficiency in which it sells its ads is declining. The 50 spots that used to be 20 spots, the measurements have not kept pace. No one knows what they are getting. Most people do not go to mcdonalds with a badge on, this is my sex, age, demographic profile. Is an interesting point. Television is getting grayer. The primetime audience on networks, the median age was 55. 20 years ago, it was 40. Jimmy fallon, his median ages in the 50s area the president of entertainment says, since she started the show, three months, 320 million views online. People 1834 that a company like mcdonalds is interested in. I want to bring up this chart. Predictions. E in 2014, tv has 38 ear they are the winner. I think it is interesting that in four years, tv and digital will basically be equal in the ad spinon of bad they will get. Digital is a grab basket of a lot of things and no one has massive gale. Tv is a single scale business where about eight organizations can five organizations and transact about 60 billion over handshakes, faxes, and hugs on the golf course. To change that. They spent about 100 million. Qwest it has been very aggressive. They have done studies to say we can reach as many 1840 years olds as abc family. They guarantee advertising commitment, something done in the up front with the idea they will get more at allers. Watcher 40 of users who the videos are over the age of 45. These are the appealing things youtube brings, but if you ask them, they would like to get cbs type dollars. There are two things people forget. Spent 35 billion last year on programming. To put into perspective, judge judy a halfhour will queue more adults in america than all of you to all day. Qwest but they will be 50 plus. [laughter] thank you. Coming up, a former Nbc Universal chairman and ceo changes the channel. We will talk to him about his new partnership that may change the way plus,. Cant or do on being in this position. Theill tell you about challenge she faces today in virginia in the primaries. You are watching in the loop. Here is a look at our top headlines. Ceo airspace is breaking up. The Company Announced plans to bring up to public companies. An internal audit of the department of Veterans Affairs show that tens of thousands of newly returning veterans waited more than three months to see a doctor. 4000 veterans who unrolled in the Health System in the past decade have not been to doctors appointments. Movecomes as reports forward on Bipartisan Legislation to revamp the system. Metlife is announcing its first Share Buyback since 2008, the nation is largest will buy back 1 billion of shares. Is in the final stage of consideration to the systemically important. That means increased scrutiny from the federal reserve. Clover television is on the markets. Equity futures are lower, but we start the day at the s p at a record high. The dow is almost near the 17,000 level. Breaking news is also out about allergan, saying it is rejecting the revised proposal. The revised offer is ,till significantly undervalued the maker of several drug and food inc. Botox. Atch how shares trade we are on the markets again in 30 minutes. Primary elections are held today. Two highprofile lawmakers facing tea party back challenges. Peter cook had more, starting with eric cantors time a challenge in virginia. Been a surprise. Class one of the most powerful members of congress would face a challenge in the first place. He could be on his way to becoming the next speaker of the house after john boehner has been a thorn in the obama administration. Other Tea Party Activists down in the area are not conservative in conservative enough. An Aggressive Campaign against kant tori in the primary, hitting him on his death dealing votes, accusing him of being soft on immigration, he is announcing a real challenge to cant tour. Five 5. 4 in million. Donors is a virtual whos who of wall street and the business community. Steve schwarzman, ken griffin, a long list of this this ceos these have contributed. A lot of support from the business community. He has faced challenges and has help from outside groups as well. They supported his campaign. Challenge andhis today is decision day for virginia voters in the district. Press what about the outcome . Any doubts . In theas been leading polls substantially. He has had to go on the air and take him on. By some of got booed his supporters. He should win the race and it should not be a challenge for him. The big issue is whether or not the race proves he is not invincible. It could tarnish him a little bit in terms of the larger fight in terms of the leadership with the gop. I know youre watching this closely, south carolina. Qwest that is right very in all six primaries today, but south carolina, keeping an eye on lindsey graham. He is fending off six republican challengers. Despite his support for comprehensive immigration reform, he looks like he is on his way to a big victory. Can he get the 50 support he needs to avoid a runoff . He has been helped i a big cash incentive. Compared to the 2 million or so raised by all of his component opponents combined. He has not had a lot of the outside money other republican incumbents have to deal with. They largely stayed out of the race. The club for growth, all of them have avoided the race and avoided taking on lindsey graham. Should beonight, he well on his way to another term in the u. S. Senate very thank you. This primary season, one state on thers more than ever radar for Democratic Party politics. Texas. State cannot afford to lose and Many Democrats cannot be bothered to vote. Some are trying to change that. Joining me now is the former National Director of the 2012 obama campaign. Now currently the Senior Adviser to the appropriately named battleground texas. Thank you for joining us this morning. Spoke several weeks ago about your efforts and how you are trying to turn texas from red to at least purple. Any hope you can do that in this miss Midterm Election . Absolutely. Now, wee in texas right have tens of thousands of volunteers when getting the state, registered voters, bringing those already registered. At the top of the ticket, we have two fantastic candidates running for governor and Lieutenant Governor. A whole slate of candidates across the top of the ticket. Were feeling good about where we are a year out from battleground texas getting off the ground. Qwest here is the republican response there and i know you are familiar with what is going on with republicans. Ago,perry said a Week National democrats in texas is the new battleground. Let us be real clear. Texas will be there political burial ground. When we first got here, they dismissed us. I just had a Republican Convention in texas here last weekend. What you heard from speaker after speaker, dan patrick or aboutor ted cruz, talking battleground texas. What they do not understand is it is our 18,000 plus volunteers on the ground. That is who we are and those are the they should be scared of. Class now in contention for the Lieutenant Governor convention. He ran on a hardline immigration stance. He trounced his opponent based on the hardline. Class in the republican primary. That is a big problem for them. He is a huge problem. Aey have been saying for year, we are moderating our position. We recognize the democratic shifts in texas. We will have a much more moderate dance on that. They let somebody who says that immigrants coming into texas are in third world diseases. This is a guy out of step with any policy that would take a huge step backward by nominating dan patrick. And what you saw, more of this hardline to the right and just not representative of all of texas. With the immigration platform that went backwards, they call for a harder stance on that, in line with dan patrick. How do you know . He has so he is decisively beat his opponent, means there is still a large portion of the population. I know you are saying it is just among the republicans, but it seems like that position speaks strongly to the populace. It is very entrenched in texas. Strongly to a faction of the Republican Party in the primary. When you get around texas and you talk to moderate voters, when you talk to business friendly republicans, when you talk to independent voters and when you talk to democrats, what dan patrick is saying and greg abbott is saying does not speak to all texans. It speaks to a small set of insiders and space to political donors, but it does not speak for all texans. Have seen more prevalent than anything, both of those guys cut 5. 4 billion dollars in Education Funding in texas and that is out of step with all texans. Stance by immigration the republicans, is that enough to turn around and get democrats out to vote . Are there enough democrats in texas passionate about immigration to get them out to vote . There are enough democrats in texas that today, we have a better turnout. This state would be purple if not trending toward blue. Note are many folks who are registered and many folks who are registered and not turning out. We have to make sure we see those stances on education. Use that to motivate them to get out to vote. If we can get those folks to turn out to vote, the state will be fundamentally different in outlook. Thank you so much for joining us. Coming up, a week after Hbos John Oliver incited a Net Neutrality up for, they nearly broke the Comment Section of the fccs website. We talk about Cable Operators who are ready to fight back. Jerry kent will be with us. Stay in the loop. Google has been under attack toresidents for contributing problems. The Search Engine provider is still one of the most profitable u. S. Companies thomas donating 8. 5 of its profits to charitable causes. A new project, autism speaks, on a rare and joint venture dealing with the treatment of autism. Is the us exclusively former chairman and ceo and cofounder. Great to see you this morning. Tell us about this partnership. This is very exciting. We do not hear this often. In the home of bloomberg, this is pretty reasonable. Collaboration between business, science, and philanthropy. To do something that will not get done in our nih driven, academic world. We have beenject involved in for some time. We are announcing now because it is up and running. We are not talking about, maybe it will happen or it will not. It is doing whole genome sequencing. The cloud is the storage vehicle. More importantly, that is the platform google is using toward genomics work. Revolutionary. T google has capacity to do theetition will work that government does not have that the nih does not have. A scale level. Ok. The government is able to do or not . Harvard, stanford, the government can do small amounts of genome sequencing and do the research on it here and we are we have already done 1000. 2000 whole genome sequences. That represents 6 trillion pieces of data and 1000. 2000 would be 12. Google will copy date this. They are so uniquely staffed the scientists, mathematicians, people who have the technical background to do it. Us, this translates to, for and they said this himself, modern biology is limited now by data. Computing can break those barriers down. What is google putting into the partnership . They will post all of the sequenced data, being done by another firm that just does that, and all of the data is going to google. Doy will host it and then analytics on it so we can do comparisons between you, me, and the other fellow here, and autism is so complicated, the current form of genetics work has not produced any sick if he result. We will now get right down to the hard stuff here at hopefully, they will find treatment and a cure potentially for autism. First, they have to break it down. For atrum is hard Pharmaceutical Company to work with. So wee to break it down actually develop individual autisms. Reasone with certain patients associated. This comes down to what parents get out of this. Hopefully, this will lead to individualized treatment. Or at least, my son will have a be autism. Wouldpharmaceutical firm come along and say, we can deal with that. I am to get a sense of the business benefit for google here. Social, there is a benefit here, obviously. But what is the is this benefit for google . Data foret to use the other purposes . No. If they choose to, in three years, this could be a big business. Not many people can do this. Ratesy wanted to charge in a few years to do this, this could be a large business. People would have to come from all over the world to want to have this service. Showing off they are a lot more than a service engine. They are a premier Scientific Research oriented the nih. Ly replacing they certainly have capabilities nih does not have. Thank you for joining us. I really appreciate it. Former chairman of Nbc Universal. Coming up, regardless of who wins the stanley cup, the rangers are the kings. The series has already produced a big winner. Breaking news right now, in detroit. The General Motors ceo is taking questions ahead of todays Shareholders Meeting. Updates on the mishandling of tens of millions of recalls, that they had a 24hour open web cam with employees to help start break the culture that allows such a lapse. The resident expert, matt miller, he will monitor and have full coverage starting at 9 30 a. M. Is 6. 4 big number million. The average viewers for the nhl stanley cup finals. The mostwatched game two of the stanley cup final in at least 20 years. Someone who represents players from three or more postseason teams. He is also a hawker hockey player who won a medal. Million. The average viewers for the nhl stanley cup finals. The mostwatched game two of the stanley cup final in at least 20 years. Sports managing partner, al. Great to have you with us. Do you think the rangers have any chance to come back . Thank you for having me. They have a big hole to dig themselves out of. I would predict maybe next aim, rangers come back with a win. Be hard for them to get by at this point. I am not allowed to, i work in the business. Two big markets, how big has this season been for the week . Class it has been a great ounce back season. Qwest i think it will i think it was a much eager market teams in a playoff. In canada, this port bounced away. T never really went last season, makes it more interested. Forelt like a playoff game the short and regular season. This year, all of the teams that made the playoffs all the way down to the final four, playoff vertically. There,you having been youre on the other side, but you are a player. What does it mean to be in the playoffs for a hockey player . Your life . T change life as a pro athlete, the championship is everything. Will tell you, our regular season means a lot. Winning that trophy for finishing wrist in a regulars is an really Means Nothing compared to the stanley cup. The ultimate goal is the stanley cup. Tell how guys, you can they sacrifice their bodies blocking shots and making big hits to win the stanley cup. It is an amazing feeling to get there. Someone will be really happy in the next few days and someone will be disappointed. What do you tell athletes not only as they go through the win, whatbut if they do you then work with them on . Quest for some layers, marketing opportunities show up on the business side. For others, it adds to their portfolio as a player. If they stay with the team and move on, they become more valuable on the market for sure. , if more . It is hard to put an exact number on it. I would say, you could probably pump your value up i 10 or 20 , having experienced that and being a part of the championship era you mentioned before that watching the nba and what happened with donald sterling, and being the clippers bought for 2 billion by steve ballmer, that has a Ripple Effect on the nhl team . Class it does. We are coming off a work stoppage where revenues sharing percent, 43 57 used to be for the players. Now, it is 5050. Franchise value has gotten pumped up quite a bit now. For 2ppers are selling billion. The rangers are valued just under 1 billion last year. Under half 1 billion. I would expect every franchise in pro sports because of that sale to be held in a positive manner. Maybe there will be a rising bubble in teams. Who knows . Thank you so much for joining us. Managing partner and former pro hockey player. Coming up, how the moves. The bmw top spot in global car sales. The bottom line up becoming the topselling luxury brand by the end of the decade. We will find out in a moment. Time for this versus that. The title of the bestselling luxury automaker. This is bmw, a leader in premium car sales overtaking mercedes in 2005. Five suvs are keeping it on top. Audi, a unit of volkswagen. Audi sold by just 1000 vehicles in may. Audi makes no bones about it. Its goal is to take bmw by the end of the decade. The hour, which means Bloomberg Television is on the market. We are starting with record highs at least for the dow. We are on the markets again in 30 minutes. Out, the target communications cofounder is joining us. We are 30 minutes away from the opening bell. I am betty liu. Stocks lower. The s p begins today at another record high. Likely to run into demonstrations, the first gm Shareholders Meeting since becoming ceo. The board of a botox maker has rejected the latest takeover offer. A 54 million offer undervalued the company. Family dollar wasted no time putting up a defense against carl icahn, and the company was quick to enact a poison pill plan monday after icon revealed ine point four percent 9. 4 stake. Futurees the shortterm look like for Family Dollar . Click it acknowledged it has issues with the business. Already taking action. Becausetting its prices even though the prices are 10 higher than walmart. That is according to a Bloomberg Industries survey. Secure should is very good. The comparable sales have been very good here there is room for Family Dollar to make changes. Process already in the of trying to make changes to prove the business. Qwest is there a way or icon to get around this . It is unclear. No. Houston ake a hostile takeover for the company. Shareholderser big , 7. 4 . John paulson is 5. 7 . It is unclear. Did you have some sort of team effort . Could you convince also another company to have more from the toss . ,hen there is the soft touch not necessarily as wellknown more recently. Can you just put pressure on board from within to make changes without doing some kind of hostile . Merger between Family Dollar and Dollar General . This has been talked about quite a bit. The company tried push Family Dollar to make some merger situation that did not end up happening at that point in time. Dollar general said they are not interested in it also, family company. A family it sounds like he is not interested in selling the company. There are a dozen obstacles here. Could walmart come in and buy Family Dollar . Theart has been Opening Stores and tried to figure out how to the band them aggressively. It seems size wise, the Family Dollars are in the same line as expressed stores. One says that is not likely to happen. It is an interesting market at this point. Qwest a lot of action in the dollar store. Thank you. Our senior markets correspondent. Moving and shaking this hour, the ceo shane smith possibly piece of vice. Somewhere between two and 3 billion. Vice has been described as a mashup of pop culture and online journalism. He has managed to tap into a demographic advertisers love. They are young man. Should double revenue to 1 billion by 2016. At t and directv, Time Warner Cable and comcast. The ceo sent a strong signal. This all media must invest and consolidate devices and services from ipad to netflix. We are joined this morning by the cofounder of the cable giant charter communications. Ceo ofrent chairman and the tv and phone ceo, serving millions of americans. Given the deals you have seen, do you see any pressure to consolidate . We would like to find the sometimes, fit. These make you feel like youre in a land of goliath. They are pretty megamergers. Customers. Million you see charter communications. Ofalready take on a lot competitors. We compete against at t, verizon, dish, directv, centurylink. We compete very well. Over the past several years, we have averaged over six percent growth in revenues. Were the only cable operator to grow our customer relationships four years in a row. That means the number of homes we served in services. The last reported quarter, we actually had a record. I think we are doing pretty well. Qwest how have you been able to do that . When everybody says you are facing these pressures . A lot of consolidation is about scale. It is a National Footprint and we still have a somewhat local business. Number one, we are an entrepreneurial company. We pushed decisionmaking as close to customers as possible. People with equity, so we can retain that culture. We cannot outspend our larger competitors, but we can take that are care of our customers. The cable i were at show earlier this year. There was clearly some sort of gazing there among Cable Operators. And they have done wrong why they have allowed some of the Digital Companies to take their market share, at least move into their area. What has been a difference for you . We have spent over 1 billion in Capital Improvements. Imagine, 350ject 6 million threeyear Capital Improvement program. We took most of our systems alldigital. We increased capacity, more highdefinition content, mort to the on demand more videoondemand titles. Our customers want to be able to watch. Hewitt say on allowing people to get content revenue bit behinda little the curve that we have caught up. The one issue is still an authentication. Otherwise, we are making great strategy. That was the big issue. Authentication process. Something so simple . That is a good question. Qwest we need to put better minds on it. The industry is now focused on it. Stay with me through the program. Coming up, a new approach that pushes licensing laws before what could it mean for the way thelisten to music there is world cup is one of the world dangerous countries. Get ready to host soccer players and fans. What does brazil have to say about that . Stay in the loop. Theyre basically saying to customers when they get the annoying buffering icon, it is not because of net its but because of the isp. It is their problem. That is all part of the whole naming and shaming test they put in place in the last few weeks. I am happy to say were one of the top tiers. We are not there. A lot of this has to do with the National Transport of traffic. For ax started off and while, half 1 billion a year in transit or it cost for fedex and outr charges, they send dvds. And they migrate over the internet and have to Pay Companies for National Transport of their traffic. Then they handed off to an Internet Service provider like verizon. Part of the issue is, where does it break down . There is a National Transport of netflix where i know they made recent changes with transport companies and are trying to pay less in terms of National Transports. Then, with comcast, which was currently in the news, comcast provided some of the National Transport and hiv2 make it look payinge should not be for privatization. You think netflix is making one big excuse . I am not in the middle of it myself. It would be very easy to say, lets look at traffic, verizon. If netflix is the only i am nt myself. Video service being completed it is all video content, then it would be a verizon problem. Is jumping on a on,n others have jumped john oliver included, that Cable Operators are evil, the evil part of the business. What is your reaction . The john oliver pees was really funny but it is sad that millions of people are getting their news from a comedy segment that clearly was not meant to be accurate. It spoke to a truth that americans believe. Americans hate Cable Operators. There is a view they feel like Cable Operators are gouging them. Suddenly, we are the most improved cable operator. Pc magazine has made us one of the top Internet Service providers in the country. Consumer reports has made us one of the best bundles. We are up on the curb. The industry has a legacy, a branding problem. Companiesbout it. The recognize that and are making investments. Comcast, charter, others, we are all trying to invest and provide a superior level of customer care. You will see the ratings start to change. Problem is people do not like paying for tv despite the fact it is a golden era tv. Go for Net Neutrality. Tell the government they need to protect neutrality. It is a simple issue. How do they manage the important critical super information highway with the internet highway. We are deemed to be an Information Service there we make private investments. That has not been one single complaint. Proposing we transfer telephone services. Those rules were utility rules that came in the 1930s, way before the internet was invented. There are three significant problems with the reclassification. One is we want the government overseeing our infrastructure of roads and bridges who rolled out a seriously flawed health care. There are privacy issues. Google and others are running into censorship issues in europe and china. A reclassification potentially enhances the ability of the government to do wiretaps and monitor communications systems. They have expanded powers. Takingportant, we are broadband. It is critical to the future of growth in the country. The last thing we want to do is cut off the investment. Chris you believe more regulation means he will the you will not invest as much in your business. Commitment in every community we operate, we will make investments to continue to be the Service Operator in the market. Thank you for joining us. We appreciate it. , thehairman and ceo cofounder of charter communications. We will be back. The fight between pandora and theanies is built into halls of congress and the Justice Department. Phil mattingly is with us now. What exactly are lawmakers looking to do now . The firstl see hearing on this issue. It is safe to say they are trying to get their arms around a complex issue. This has pitted and or against i merrily two organizations. Media inc. And the American Society of composers, authors, and this is a thirdparty mechanism for Legal Protection and royalty protection for hundreds of thousands of songwriters. Pandora does not pay royalty rates and the law as it stands does not take into account the rise of Digital Music era lawmakers are tentatively wading into this. Copyright laws that guide these issues are out rated. Something you will hear as they tried to figure this out over the next couple of weeks. The Justice Department shook this debate. What about that . If youre looking for actual action in the near term, this is probably where you need to look. The Justice Department. These groups fighting with pandora are under consent the date back to 1941. He scored fights about rates, the Justice Department announced last week they are waiting in. Thank you so much. Our white house correspondent. We are just a few minutes away from the opening bell. We have the top 10 traits you do not want to miss. Keep it right here. The s p 500 has closed in the past four straight sessions. Also seven of the last eight trading days as well. The question now is, how much longer can the rally last . At about sixrades point five times projected earnings, up from below 15 at the start of february. On theon the map markets once again in 30 minutes. Thank you. Lets count down to the opening with the top 10. Julie chimes in as well. Bank of ireland overseas. A billionaire investor selling his remaining stake in irish bank. Of ireland board of nine is the botox maker rejecting the latest takeover offer. It says the offer undervalues growth prospects. We have got the Company Formerly known as the pennsylvania powerlite which was been a part of its business into a private equity firm riverstone holdings. This allows them to shed 12 in pennsylvania and montana. Number seven is metlife, announcing its first stock i back as the ceo seeks to reward purchase ast will much as 1 billion in stocks and will raise one billion dollars later this year. Number six, best buy. Raising its Quarterly Dividend by 12 . That marks the first increase since 2012. The Dividend Increase reflects improved cast position. Voted againsttors a proposal to split the companys chairman and ceo positions. That keeps the founding the founder based. Four is the ease the major the maker will split into two independent publicly traded companies. One business will focus on manufacturing. After materials are the other will focus on technical services. Number three is time warner. A Media Company is in talks to buy up to a 3 million take according to a person familiar with the matter. It actually has a show on time warner h the os hbo. Going in the opposite direction is radioshack that number two. The struggling Electronics Chain announced a wider than estimated firstquarter loss. The company has been cutting costs and clothing closing stores. You might expect, number one is General Motors. Shareholders being asked to approve new directors today following the investigation into delayed recalls of more than 2 million vehicles. The ceo will be addressing investors in just a few moments at the Shareholders Meeting. We will monitor that event. For more, we will get straight to matt miller in detroit, where they just wrapped up the 45 minute press briefing. You got a question and. Tell us what you asked and what the answer was. The most interesting thing to come out of the press conference, because she has been asked every question you coulds we think of already, but one answer i thought was telling is that she said they looked for alle kinds of problems in of their products. They have looked far and wide and hit they cannot find anything else like it. I also asked if they are focusing purely on safety for marketing purposes going forward. Look at what she had to say. One of the aspects of winning its quality and safety performance and great design. They are not exclusive. We plan on continuing to have great vehicles. If you look at our Safety Record on vehicles we are launching today, it is quite strong. We will continue to do that. It is also strengthened by the work we have done over the last couple of years of dramatically improving our quality and development process. Course, she had more quiet she was asked more questions about the recalls associated with the nick ignition switch problems. A Shareholder Meeting will bring more of that. It is a small protest group out here and General Motors say they will try to keep it an orderly meeting with each shareholder talk time being held strictly to two minutes there i do not think it will be quite as genetic as we may have expected earlier. We will be listening in on the Shareholders Meeting for any further headline there it thank you so much. Lets get to the call now on market. I want to bring in michael, the chairman and ceo of market deals asset management. His call is watch out for inflation. Exit out of bonds now. To bring in michael, the chairman and ceo of market deals asset management. His call is watch out for inflation. Once yields rise, there will be nowhere to hide. Great to see you this morning. Where do you see inflation . At the moment, you look at the u. S. How much slack there is in the overall economy. Reserve,y the federal people have convinced themselves there is a lot of slack. We do not see great evidence for that. We think employment in about one third of the states right now, it is only one third but that is how you start. Lulled into a sense of complacency by looking at national statistics. You have to look at what part of the company is tight and which parts of the industry is tight there you will see pressures in a lot of what i call early industrial purchases. You see it in transportation, in general Industrial Areas. Feeds thelly mechanism. The question is, how far along in the process do they actually get . Who actually gets to take a cost and turn it into an out price . Right. Who do you view is going to be up to these prices and who will not . To be okeas that seem are commodity related sectors seem ok. It seems to have an extreme. Bility a lot of Industrial Areas seem to be ok. An area of semiconductors seem to be ok. There is a lot of demand. That has been the story in a large part of the u. S. Economy. Point in whicht there suddenly is not quite enough capacity to go around. I think big loser will be retail. That has a lot of competition. The entire u. S. Retail model has been built around model groups at a fairly low price point. We do not think there is anything wrong with the u. S. Consumer. The u. S. Consumer has plenty of money and mortgage rates. I think we are over stored. Have been socialized into not expecting tax increases. It has been 15 years since you went in and saw it thereof stocks pair of socks. Hang on because i know, scarlet, you have been looking down against the pressures. It remains fairly tame. This has become the most meaningful part of the monthly jobs report. They did increase 2 10 of one percent in the previous month, two percent higher than a year ago. We have yet to see a significant breakout. On top of that, Revenue Growth overall in the last quarter is still lagging behind by a large margin. Companies as a whole do not miss kerley have a lot of icing our. It is similar to what you are saying. Best similar eerie do not look overallevel of the economy. Focus on the parts of the economy which are already tight. How do you know it is a breakout . We do is the things spend a lot of time listening to corporate management. We look at the data that came there is evidence out there, if you actually go look at it. Hang on. Inflationaryy pressures rear their head, we get out of ons. We have been looking at how bonds have been behaving. It has been tough for bond bearers. It might happened not happen this year, at least not as much as folks are expecting. , jpmorgan is predicting the supply of bonds will fall 460 billion short of demand. Beenear to date return has three point seven percent, the most since 2003 yields fell globally to as low as 1. 7 on may 28. It is the lowest in about a year. Look at 25 developed countries bloomberg tracks, 24 of 25 events have seen yields actually go down this year. It has been a tough time for people who have an calling a turnaround in the bond market. To you, it is not a matter of if, but when. Back on thoseht points. It is a wonderful time to be a long seller of ons. Bonds. There has been a ferocious rally at the long end of the current and him credit. Been there has not intermediate and shortterm yields. The two year yield is exactly where. Class that tells you investors are saying rates are going up. Is not exactly a strong bonds have been incredibly vocal the last few weeks. Is typical about how a bear market looks very got a lot worse last year. It suddenly got at her earlier this year. Everybody is how it goes back up. Not great. Qwest thank you for joining us on several of your calls. Up, a board member of at directv is now locked in that deal with at t and is working to fix the nations did loan problem. Much more in a moment. Covered 1 billion in a move that values the company at more than 17 billion. We spoke to the ceo yesterday and hes the Company Passes gross potential deserve that your. Class if you look at the size it is at and the growth were being, in many ways, it is unprecedented. At the end of the rainbow, there is a pot of gold. That is just our size and our sort of meets the numbers people are putting out there for our stock. He would say that. With me now from San Francisco is the general partner of capital firms who says he storyy gets white lubys ubers story is so valuable. There is a new class of investors who did not come into the round expecting to make 10 times of their money anytime in the near future. I think uber deserves a lot of the credit it is that you guessed. It has done a fabulous job ecig eating. Many collies i talked to here in the Venture Business here in the bay area and elsewhere, say it is the fastestgrowing company they have ever seen. That includes some of the in dash the early investors in ebay area he may. Ebay. They have done a job in the global market. It is so disruptive. Comments, recent theyre ultimately planning to cause people to not have to buy cars anymore. When you look at some of the convenience factors it provides in relation to the hassles you have to go through with alternative means of transportation, very excited about the Company Aaron company. Deserve at does valuation. Is there a danger factor here with uber being at 17 billion, that that is bringing other companies more into bubble territory . Were starting to get inflated valuations. Ive paid a lot of attention to this stuff and look through the 2000 rubble. I think we have a lot of companies now that are achieving rich evaluations. I do not think we are in the same territory as we were back with suing us for Companies Getting insane valuations and they did not have revenue or rock that profits. What is the difference this time . A lot of Real Companies are getting the valuations. Real andn absolutely disruptive and truly transformational company. In, they should expect, if things go well, they should expect to make at least 23 their money in the next three years and that is very different in the early stage game we have always late, where you go in when nothing is very proven and hope you can work on it and get her that get 10x. R than it a i want to switch topics really like to another company you invested in. It is trying to answer or disrupt the student loan market. Yesterday, we have the president amount at the white house, expanding their program to help student debt. Many say Government Programs have not helped area where and technology and a company like this help in terms of heat is using the student debt burden . As we have talked about it in the past very i do not think there is any way the government can compete with Entrepreneurial Companies like one of the best companies, sophie. These guys are executing like banshees. Theyreompleted very close to a month and they will do 100 million in new loans. They are branching out into new segments. Theyre doing a reprise an art beginning to think about doing mortgages for young people that of already done business with them. We are having a hard time finding capital to move into their first house. Theyre building great relationships with a terrific set of clients. Clients we will have to leave it there. Thank you for joining us. We will be back in two minutes. Time now for the global outlook. A huge emphasis on how to secure one of the most dangerous countries in the world. Last year, there were over 7000 muggings and 50,000 murders nationwide area that is all among the daily threat of kidnapping and Gang Violence in brazil. A concern for many who will be traveling. For one private Security Firm in brazil, you need means business. The price of versatile protection. Personal protection. There is no value in human life. If you resist in the least, you will be gunned down, with no remorse. I am president of latin america. This is my security team. You know we will have demonstrations. We know we will have strike and so on. It is how big and violent they are that is still unpredictable. This could be a security nightmare. To some of us. For others like me, it is a challenge. The misconceptions of these guys are nothing but a Security Guard in soups and suits and ties. Much more training going into it. These folks working are all top professionals in their field. They work to make sure they understand how they operate so we can get better. Anything that for may be out of the normal that we need to be aware of. Ee the van you see this type of configuration. Off. The keyrt us is to at least the moving and be constantly in motion. Very common to have a blockade in front of you to get you to stop some type of roadblock. To come out all the sudden. When it is real, turn the wheel. We get out of the potential situation. To avoid being stopped were being locked then, we will take cam toopter out and take the next site. If you fail in this arena, it could cost your life. We are not only protecting our clients and their families. It could cost us our lives as well. Stay tuned to bloomberg tv on a week. We will have all coverage of the world cup and the Global Business surrounding the games games. That does it for today. Pimcoow, the former managing director will be joining me. Boomer television is on the markets. Were 30 minutes into the start of the u. S. Trading. Early trading shows right now that we have losses in the s p, the dow, and the nasdaq. The s p closed at a record high for the past four trading days and seven times in the last eight sessions. The question is, how much longer can the rally last . The s p 500 trades at about 16 point ive times projected earnings, up from the start of february. It is a question that will continue to be asked as investors look for some time to return. We will stay with equities and focus on small caps right now. The group took a tumble in late january and then recovered. Russell 2000 up just one percent after earlier recovering as much as seven point five percent. Now is joseph. First of all, why are we seeing the recent strength in small caps . Are they making a comeback . It is true between march and midapril, it is about eight percent. We us a it come back here it below tried to figure out where the death valuation where the exact valuation needs to be. A good way to play that. We have seen a lot of m a parity a lot of the big companies. The goal, and right now the companies will grow their businesses what they have the upside. Qwest is there talk for investors that they will grow organically or the or do they have to buy that growth . People are encouraged the signs they are going up and any money to bolster their business, taking risks on valuations. Trying to grow to full point acquisitions. Qwest that was a distinction. Mega caps are relying on overseas markets. The small caps are domestically focused. A are much more reliant on Retail Investors because of their size. It is harder for investors to take out a big investment. There are more in the hands of the Retail Investors then people were looking growth and upside. That is what the area of the stock market is offering them. Up of everye sector. Some are more well represented than others. But the biggest worship is financials. Technology ands these stocks, there is no surprise, the selloff we saw from march and april. A similar selloff in technology. The 2000 stocks only make up roughly 10 of the overall index. You do nothing about that. Qwest yes. In terms of influence it has on the market here it less when you talk to investors and analysts out there, what are they a in terms of the likelihood of correction . Were always looking around the corner for the other shoe to drop. I was talking about this last week and he was telling me we will not in correction of 10 or more. The market just does not have a huge correction like that unless something wrong death prompted. It is a bad reason to sell a stock to say, it has gone high. Record highs in the last week there in we could see three or four percent correction and maybe the occasional hit. For 10 , we would have to see something pretty substantial. That could be the rate hikes next year. Qwest thank you so much there at on the markets once again in 30 minutes. Market makers those quote is up next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Gm chief meets shareholders for the First Time Since the recall scandal. Music. Sound of regulators say it is time to update rules for how songwriters get paid. This will have a major impact on pandora. Hollowly a. Hallelujah. We will talk about the revolution in mens fashion