Decade ago. Tell us what happened. Back to 2002. Flaws in an suv that leak fuel. He was concerned this would be a hazard and dangerous and potentially fatal. He says he ran into a lot of problem spirit Court Records we have. Recall. Ly, they do a after the fact, he fell like his career had been hindered. He felt retaliation. Protection under michigan law. In part, we believe he did this because he saw other problems that had not been addressed. He was trying to get attention for the issue and host a higher level executive would take care of the problem. The retaliation he faced . He was the brand quality , aager for the caliber predecessor for the cobalt. He was taken off of that and was put on what they termed special assignment. Oh assignment. He essentially, his career stalled at that point. He had a hydrogen or he up until that way. Into todayss fits hearing. An old gm and there were problems when executives ignore problems for other employees. If you take the side of gm, what youre saying is not that surprising. What is interesting and how s ties into to they puff todays hearings, he told investigators he was reluctant to push back against safety. Oncerns on a final note, what has gm said, if anything . Kellyswill reopen mr. Complaints. They are following a cobalt issue here area that is how we got to the point where we had 20 million recalls in north america alone. Thank you for joining us on this exclusive story. Be entire bloomberg now andory online right our newsstand on friday. Mary can expect a hostile audience today. Our resident auto expert matt miller is on the hill today joined by the member. She is from the ninth district very thank you for joining us. Let me first ask you about the is newsweek story we just heard about. A whistleblower in 2003 already ordered a gm executive to this issue. Does that surprise you . Not really, although anton who was hired by General Motors really blamed this level fast as gm. Our commerce that did interviews found evidence that there were higherlevel people that knew. Like people should have known and perhaps were told. Senior leadership decisions at that time. Frankly, should other higher up the kit is the known executives be known . The culture of gm in departments, much less a twin departments, information was not transferred. This is obviously a huge problem. It seems in the highlevel position she had, it should be before january this year that she really knew of the details that went on or even details. Assuming she did not know, what do you think about the job she has now . What do you think about the job she has done since the last year she was on capitol hill . Many were disappointed by her inability to deal with any of the facts on the matter. Were hoping today we will get more. Also why is iter he did not know, why was she not . Nformed 13 people died. I want to know more about the process of compensating the families of these victims. Give the members and they will write a check and move on from there. Does that you might he only possible solution do you see any other repercussions . Indealers were notified 2005. A letter went to them telling him about the problem. They were told how to replace or yet that wasd never public or communicated to the National Public highway communication transportation authority. The public did not know, dealers knew there was a problem. ,here was a miscommunication not the kind of fence and see we need. I will make sure that information is output. They will seek other repercussions . I think the families will be looking at lawsuits in addition to any competence nation they i think you will see a lot of back vividly following this hearing. Why has congress not called rick bragg air or any of the looking over the company, when we were all majority shareholders. I have to tell you hours has done an amazing job of interviews. I do not know the list of people interviewed but we certainly ought to dig deeper. There were so many problems in so many mistakes there and we will hear about them today. There needs to be a plan for th thing its one of those how do you think it can be fixed . A 35 million fine, it found like a lot to people. Wouldis legislation that lift the cap. That is a good start. Thank you. Back to you in new york. Thank you. You can watch merrys full testimony about the recalls in front of the house commerce subcommittee starting they will not do anything today, but what did Officials Say after todayss policy meeting will get intense scrutiny. Everybodyabout when mike mckee on why were watching the soak local sleep. Today, we will get there , which maye forecast tell a lot about the forecast when tapering is over. Lowering their their gdp forecast, and raise their outlook. We will probably see something similar today. Interest in the other mandate inflation, particularly after the strong job jump. The chart will be the first thing people will look at today. Considering the economic forecast, when the rates will go up and by how much. Most saw a gradual rise in 2000 18 and extreme 2015 and 2016. It did not stop investors from pushing market rates higher. Even though there are again more changes. By the way, the forecast will not be on the chart and she was only sworn in monday. Did not have time to get her numbers in. By thank you so much. Mike mckee. Be sure to tune in to bloomberg rossis live coverage of the fed decision at 2 00 p. M. Eastern time on a sexual edition of bottom line. Moving and shaking this hour almond katy perry, a painting of her goes on sale today. The painting is called cut take katie. Unveiled a few days for terri herself shows up and is starting her own record label going into business. You used to have to be dead for 10 years to get your picture in the National Portrait gallery. Now all you need is 50 million twitter followers and the best going out him. That is it. Coming up amah in an age where everybody is trying to a new at makes it easier to get a taxi. We will talk to this eeo of tax the magic. Thus him how to order off the menu at mcdonalds there you have to know what to work and where you need to know the secret code. You are watching in the loop live on bloomberg television. The federal reserves open Market Committee Meeting Announcement was at 2 00 p. M. Eastern. A powerful market that caught many investors. Not everybody. A bloomberg review columnist, the president of an Advisory Firm said months ago that investors would flock to treasuries and stay there for specific bearish reasons. Rick is you this morning. Saw signs that treasury yields would stay low. In a world of turmoil and treasuries are a safe haven. That emily, i did not he major in ration them in back. You got the threat of deflation particularly in europe. Why does that matter here . In deflation, real Interest Rates are almost always positive. If you look at the real rough real return, with deflation, it goes up. With inflation, it goes down. There were a lot of shorts in the treasury market humming in the year. A lot of evil thought the 10year note would know from 2. 5 to 3. 5. Absolutely guaranteed. It is of course going in the opposite direction. Coverings. Ort do you think you we have seen the bulk of the short coverings . But i do not know if we have seen it all or not. The issue. You have got a lot of different derivatives involved here. It certainly was an issue. A lot of people were flatfooted because they came into the year and lusted for a strong eight on me because that would instantiate the 30 increase last year and get more of the same. If you will have that strength, it will be negative. Still betting Interest Rates will rise and that yields will go up and you say . No. About thetalking rally of a lifetime in 1981 when the yield on a are year through your 30 year bond was time has never been a during the 33 years when it was said the rates would go down. I think they will stay these hubbles. We are in the agents the leveraging, a time of slow growth. Two percent real gdp. It was negative one percent in the third quarter. It normally takes about 10 years to deleverage. We are six years into it. It may take more than that. Have more a threat of deflation and inflation. They are tapering area lacks on a shortterm basis, yes. Sure anything has dramatically changed there. If you look at the labor markets, they remain weak. That is the Jenna Fischer that is the genesis. We are at the levels now. Click yes there it in the the employment age population has grown 15 million. We are way behind. People had not dropped out of the labor force, the Unemployment Rate would be 13 . Retiring,pping out, but a lot of younger evil stayed in school and thought they would get a better job with a college education. No better job ross x. Job prospects. Have better job numbers these days . Yes. They expand the 6. 5 target on on implement rate. It was the Unemployment Rate. It is a number americans can understand. That is a problem, when the. Ed is trying to be it is not a good measure of anything. It depends. They dropped out of the labor force. It really doesnt work. Measuresment market she watches. Saying, we dont want to get nailed with one number. Great to see you this morning. Coming up, the big four. The world cup victory with a huge winner. Also, the release of amazons first smartphone has one provider unhappy. It is all over twitter. The French Company is heating up. The ceo said he would be percent encoded Additional Details of their offer and will be meeting with french government officials and 20th. He will also be meeting with Union Members as well. The is all according to ceo. As you know, earlier this week, siemens came out with its own offer. We will see what gms counterbid will see. Here is a look at other top headlines. Fedex had better than estimated fourthquarter earnings. The Package Delivery Company Earnings Beat Estimates by . 10 per share. Byrage daily volume grew eight percent per quarter, driven by growth and ecommerce. Strongest quarterly Profit Growth in watcher years. Retailers four years. Plansers the company to open 375 stores around the world this year. We want to update you on the big number from yesterday. One cents magenta stamp from million at9. 5 auction last night. The most expensive stamp ever sold. The most valuable object by weight and size. Purchased by an anonymous telephone bidder. To go higher it than that. 20 money dollars was the estimate. 26 minutes yesterday our. Bloomberg television is on the market. Equity futures are unchanged at this point. I watched quite a few docs this morning moving. Planning a forecast for the Fourth Quarter. Stabilization and recovery not in the nearest quarter. We are on the markets again in 30 minutes. Book,ing topics, in my what ceos say you need to know to get ahead. I gathered some of the best advice in the business but leadership goes way beyond the office. A worldwide deputy chairman and he explores the role of the leaders behind the leader and the benefits of being a place in his new book, leading from the shadows. He joins me now. Great to see you this morning. Most people do not want that area they want to be the star and at the top. Most people say they want to be at the top because we are conditioned to believe there is only one place to be. That is at the top area desktop. Top. Do, thets on those who Vice President and executives. To look at their motivations, the joys they get from being number two. You were at one point, as you call it, and a leader. You gladly went to see . Leader at saatchi saatchi. I did three more years their walk working for the maverick. I thought, there has to be more to life. I worked up to the reality that i might be more effective, more happy, more influential leading from behind kevin. Ive debt to the side, or even and ias people call it, demoted myself but it is not a demotion. That is the problem with this issue. The language, they feel like there is number one and everyone else is a loser. The assistance and advisers are leaders and in their own right. You talk in your book about people decisions, everyone raced into your office, it hundred people reporting in, needing more margin and more hurt more quarterly margins. It was not absolutely what i was hardwired to be. Someone said i have the sole the Vice President. It was meant as an insult but i like to think of it as a comment. Complement. I started with the answer. The answer is, how do you want the chief executives to feel . We will have the weight of the the stuff. S who get any new ideas and they need people to think ahead. Need people who will speak the unspeakable. They need to be anchored. Faithok at the coo of that. She is a fixer. The educator, the deliverer, who is most effective . He is alwaysoles, fussing around. It could come from anywhere. I look at all sorts of archetypes. The kinds of people who are really able to deal with every a , to clear your day. None of the roles are exclusive to one individual person. You will see a great conciliatory often operate across to these. Two of these. Richard, when you are talking to groups about junior executive tom is it not hard to make the case . You mentioned the language around it. Most of the time, you want to tell people to reach for the stars. You can be everything you want to be. How do you tell somebody, reach for the stars are behind the big one. This generation of young leaders, tomorrows that it is, they will look at the hierarchy and feel inspired. A different conversation. Ahead of their ambition may well be to be the absolutely best Vice President or assistant board visor. Nobody says i want to strive to be the best Vice President in the company. But that is the thing. The truth is, we have to start the conversation. 19 of 29yearold emerging leaders in our survey is they would not say in the and company for more than five years. We are looking at people who aspire for adventures and opportunities if you look at some of the on the planet, the charlie for like a failure . I do not think out there did alan roosevelt, the first lady, feel like she could not participate . I do not think so. There are great role models in sport and particular business particularly business. At 47, you had this epiphany and you wanted to step back and step aside. People thought i had gone crazy. Ofhad our fair share brilliantly crazy people and they felt he must have lost his ambition and given up. What, i feel it is time to test my leadership in some other way. I saw this as advanced in and not emotion. I saw it as progress. A lucky a lifelong adventure. The tenure and the chief executives offer its shorter and shorter. The environment is more and more brutal. Complete leaders need to start meeting from the a position and the c position. Many morsis more cs than as. Name one thing you did that was different than when you were leaving . Space tot time and think. My role specifically was to take a closer look at the strategy of the company, the strategy of our clients. I have more time to do that. You put those to good use. You spend more time developing talent. These are the kinds of s twoations that drive c great happiness. Thank you for joining us. Coming up, amazons new smart phone will be unveiled later today. Coming out and slamming the phone on twitter. Less, a lot of backlash in taxi drivers. One Company Found a way to combine service is services. Clearly, disruption has arrived in the industry. All of them replace your reliance on traditional taxis and your own car to get from a to b. Taxi magic is taking a little bit of a different approach. U. S. ,leets across the already on the street. Great to see you this morning. Clearly, youre trying to work with the taxis and not against them like at uber. How does this work exactly . Believe thept is we taxi has been around a long time and has an successful. They need to get more in the modern age and have tools to allow consumers to get a better experience. We have on in with fleets driving around the streets that have hundreds of houses of vehicles out there. Consumersven availability at the same teeth prices. Cheap prices. Knowing it is secure and being very comfortable about the regulations you are in and getting the advantage of a cheaper rates. Class price. Actually providing through the service we have in our taxes. They do not have necessarily have to have a separate device. What we are giving them is consumers ready to ride and looking for a location, maybe sitting out and a little bit toside the norm, wanting stand out on the street raining. Because it is raining. Some of the other services where they are taking 20 . They are adding the goal is to get rid of drivers. Our goal is to get more effect if. We do that by helping them get more. We take a very small flat fee off the top that we basically a dollar wide for example and that is what we do. We are making volume are having a lot of rights. Do you process the payments . We do. A very large process. We will process more than a dollar of transactions. You process the payment and take a small and flat feet. How will you make noxious money and also make lots of money . There is a big and huge market. We passed through the interchange costs. We are making a little bit on each one. If you look at, there is a study that came out last week which says by 2000 and five, the 185 for will be about business. We are getting users to continue to use it. Large. Ket will be very plenty in the environment. . What is wrong that being said, prices are very high and a lot of people do not like the concept of having people want to know exactly the price is. Some things they do where they just basically have said, we will not buy into regulation rules. We will do it anyway. They could stop us. It is part of what their model is. Lets work within the regulations and be out there and be more successful. Thank you. Coming up, the victory over ghana monday night. A huge win with the team. They are not the only one to celebrate. Will americans interest in soccer continue after the games are over . Stay in the loop. The big number, 1. 4 million. That is the number of people who watched mondays soccer match live stream on espn. The biggest event ever. Site. E streaming it logged in more than 63 Million Viewers as they watched the u. S. Win the game 21. He games shattered records just over 11 Million Viewers. Thee the world cup fourth popularity continues in the u. S. Here with more on this. Cups true there is world fever but is there prosoccer fever . A bigger proportion of fans of the world. A lot of those do not necessarily sick around stick around. They have basically all been flat. We are in the same time zone here. The last world cups were in africa and europe and asia. If there is a world cup in our time zone, we can watch it at our normal time for watching tv, was the numbers should go up. Collects i find it so interesting. Just a number on me if dan about the live streams and breaking records here. I would have thought for all would be more popular. Football games like the super bowl, you cannot get that on the live stream. Four years ago, the streaming business was not really what it is today. That is really saying him thing about streaming. Viewers on they had for over an hour vomit was just i would dream of or is it moment. There was a stickiness there. That was the interesting part. The average audience at any point in the game was 400 if the two 500,000. Those audiences were watching the game ticket sales were interesting because the u. S. Is actually the biggest foreign country. Most of them have been sold to the brazilians. Coming from somewhere else. If you look at it as a percentage of the size of the pop elation and the distance they had to travel him and the really notthe team, represented as well as australia or germany. Into the themes that have really amount of weight. We will the c. We will see. If you happen to find yourself at a mcdonalds in the world cup and you do not want the big mac many have secret menus in brazil. Erik schatzker went to brazil and shows up shows us. He looks like he is enjoying it. A problemeo is having with amazon and the new phone the company is set to release today. It is bad for customers. We will give you details on why. Plus, stock, hell again. He ceo on the latest round she will answer questions and what to fix the problem. She will answer questions and Louis Dreyfus spoke with charlie rose. Collects you are selling yourself, in a sense. You are selling a brand. You are selling an image of yourself. We are talking to it suffer fromo do not the stereotype very youre looking at one of them. Those are her comparisons there you can watch all of these interviews tonight right here on bloomberg television. Getting into the smartphone business, amazon there is according to a person familiar with the matter, they will be the exclusive carrier. When after when apple came out the iphone, at t was also the only domestic carrier with a first new years. That is tmobile, its ceo john ledger is not a fan of x lucidity. He took to twitter saying, customersy sucks for and for the industry. He asked, what happens to hometown ride. Pride . Good questions to raise. Bloomberg television is on the markets. Equity futures right now trending just a little bit higher. We have the fed meeting today. The announcement starts at 2 00 p. M. After, we will hear what that officials have to say. We are on the markets again in 30 minutes. Coming up, it seems like the job since taking the helm at gm has consisted mainly of answering tough questions about the companys recall issues. She was at it again today. We will take you live to the hill with the latest on what gm is doing to fix those issues. Futures indicate stocks will latestmost changed at t will be the exclusive carrier and that is the deal. And john ledger is quite unhappy. A House Committee will question a. C. L. On whites of gm along with faulty ignition switches. We are with the breakdown. More on what to that, the resident auto at birth is on the hill with more. Quite unhappy with her testimony before. They were quite unhappy but i have woken with a few conger Commerce People here. Hey seem fairly optimist and from illinois, whom i interviewed at the top of your show an hour ago, is she was optimistic. I just spoke with senator blumenthal walking through the halls and he said he is optimistic he hears more out of mary barra but he also says the Justice Department has made the first move toward a criminal and criminal investigation. He expects that to happen. He has been hawkish in the situation. They may beting moving in that direction. That is the last in gm wants to happen so they will do weighing in their power to these capitol hill and the court of public opinion. Nberg will be starting his it is too little too late. Were may be too late. Surely, it will not be very little. Anything different we might expect . Will it be detrimental to General Motors . Watching her throughout the last couple of months, she is a different ceo now than she was back in february. She had appeared to be lawyered. She now appears really selfconfident. She appears the to be driving the ship herself. She had just come in as ceo and just found out about it herself. She seems now to be a much stronger leader for the company after the town hall, after the lucas report there you can expect to hear more confident answers from her today. Not sure if that will be enough for congress to get the answers they want. The one thing they will keep asking is how could you not have shen and as she had said, did not know because of the culture at gm and she will try to change the culture. The number onee goal Going Forward. That is what she will Tell Congress today. Thank you. You can watch the full testimony about the recalls in front of the house energy and commerce subcommittee at 10 00 a. M. Eastern time. Liver lives stream stream channel. Amazon unveils its own smartphone today challenging in the highly competitive market. Coryto expect, we go to johnson and Jon Erlichman and l. A. Cory, i want to start with you on what is expected today from amazon. We know the details for this phone. About 10 30, jeff is supposed to take the stage. The fremont neighborhood in cattle. This is the heart of the Startup Community here. Venture capitalists. Amazon coming in with a new kind of product category for them in what we that to be a phone. Computing has gone from the desktop to mobile. Amazon is really trying to embrace it. It is very amazon like to try something. If it does not work, they will cast it aside. Seattle, theyin have in setting up the event or 20 days, getting ready for the announcement. Jeff bezos rarely talks to anyone outside of amazon but he will present this himself today. 10 30 on the west coast and 1 30 in the middle of the show on our east coast. It is expected to be new kinds of technology. We expect amazon commerce to take Central Place on the is equal at that of the phone that we will drive all kinds of business. All kinds of business, including the rest of the company that has amazon prime and how amazon prime could play a large part. Beyond the hardware we will talk about today, amazon has a come one of the most important distributors and entertainment. That has obviously continued. What they are offering, which started as a way to get free twoday shipping, they ruled and netflix to that video off ring and more recently, autofire like service, music subscription. It shows in the numbers. They have created one of the most Popular Video destinations in the country. . Ill that become available will it count against your data plan or just throw that into encourage you to watch more and consume more . If you are a member of time, on spend twoou likely times as much through amazon over the horse of a year dan nonprime customers. An nonprimeh customers. Qwest how do we know this will not fail either . Know. Course, we do not in terms of Worldwide Market name likethis is any at thedle, the geniuses together a market share pie chart. I think it is notable that windows has on from nowhere to 3. 5 of Worldwide Market share. Part of the culture of amazon is to try new things and take the chances. If you do not work, walk away from it here and i think amazon will make a serious effort here. This is just their first iteration. If it does not work, they will move on. It is important to note that mobile computing is the center right now and companies have been dominant in the desk top will have to start all over again when it comes to mobile. Note, aside from the partnership between the phone and amazon prime, their program, how else could it drive this is at amazon . Cory is talking about them pushing the envelope. Screen,see a 3d entertainment, movies, tv, and gaming, do not forget. Everyone was talking about virtual reality. I could get bonus is there, maybe they could put pressure on smartphone makers. We will see. Thank you so much. Also, cory johnson, outside the event there it today on a special edition of bloomberg west. Jeff asus is widely expected to unveil his first smart phone. A rarity to see him to do this. Une in coming up, buying organic food without having to take up a second mortgage to pay for it. We will talk to the ceo Farmers Market and elon musk is the largest shareholder in the city and he is making his presence changeconvincing them to the business model. Details are straightahead. The local and organic Food Movement has gone from it and to a mainstream movement over the last several years. A problem persists. Healthy food is still expensive. Enter the Farmers Market, a Retail Grocery store chain that offers local and healthy farm produce at prices more people can afford. Many more across the south. Dougthis morning, ceo sanders. Great to have you this morning. How do you answer the questions about healthy . Food . Primarily focused on the affluent National Natural lifestyle. All of this changed when you think about today. Consumers from all walks of life are embracing the need for a healthy diet. As a result, the majority of the growth in natural and organic food has been driven by upper middle income consumers. The consumer sprouts targets and works with every single day. How do you make them competitive . Our model is different from your traditional model. Different from a supermarket model. We do not carry all the supermarket items, all the items they are making low margins on. Driveest our margins to enterprises. Pressureone because road is is what drives the businesses aerated is the common denominator. We focus a lot of resources on making sure we have the best med prices we have distributed across country. Vendors to make sure we have the best basis. From an investment stamp way, we have wrote the below capital expense. We are still able to drive price leadership and still receive strong returns. Basically, what you were saying was that because you do s kindl the a grand ross of food in your stores, that you focus on the Premium Category that does have higher margins. I want to read for you one comment from the head food writer at the new york times. This is what he wrote in oped here he said unless you are he different from most of us, much of what you eat comes from operations that process, market, deliver, and sell food, a majority of which is processed beyond recognition. The problem is real food is not possible. What is he missing . I would disagree with that. The organic shopper is shopping for attributes. They are less rant loyal and more shopping for more attributes. Nongmo. Nongm oh moreare focusing on vitamins and supplements to offset what they are not getting. The products we sell, less processed, no artificial flavors or preservatives. Customers can get more nutrition. Offset that with vitamin and supplement regiments. Lex i do not get it. I do not get it. Explain your logic here they are able to get healthy food but have to supplement with vitamins . I do not get that. Most people are not getting all the nutrition they need on the food alone. They are eating processed food all the time. Yes and no. Unless you are in on a very strict natural diet, most people, their diets are improving but are they strictly adhering to a natural and organic diet . Some are and some are not. From the nutrition you are not getting necessarily all from your food am a offset it with vitamins and ultimate. Got it. Glutenfree or vegetarian. Got it. The other issue i want to focus on is overhead. Less than 3 million for you to open new stores. How does that compare to a food a whole foods or trader joes . They are probably spelling spanning 12 lane dollar range versus 2. 8. But we have a smaller store. It is a simpler design. You going this route, we do not look, we are not that out or laid up. Instead of ill after aisle of honest, we have rushed wrote is in the middle of our store and both foods in the middle of our store. A simple design. Energy efficient. Thank you so much. Doug sanders, the sprout Farmers Market ceo. Thank you for joining us. Lets get you caught up on on our bloomberg radar. Yahoo says its workforce is less than worry percent female and many of the women are in nonleadership roles. The first such disclosure in the Silicon Valley 70 of yahoo s meters. Ceo told bloomberg is a sleek the companys foray into Package Delivery is seeing tremendous growth. The start up suddenly has an extra 1. 2 billion in the bank. It says the Package Delivery service is seeing far more. Rowth than uber did plenty of competitors out there against uber. Adobe shares were up nearly 10 yesterday after posting quarterly subscriber game gains. Companyjose in baseball said yesterday it added on lines scriber is faster than the projected rate in the quarter. Over 1suggested billion. Catch all the latest in tech and only onery week day bloomberg west. A few moments away from the opening bell are the top 10 traits you do not want to miss after the break. Welcome back. As the hour. Bloomberg television is on the markets. A check on futures. Revenue politico pretty flat here. Pretty much nothing going on. Be alleally going to about the fed. Not necessarily their decisions today him about the economy as well as jobs numbers. Stocks could sell off today on initial reactions if the dead could get a little more hawkish than estimate. Traders are taking it in stride. As long as the s p states over 1925, it is hard to get to bearish on the market. Back on the markets in 30 minutes. I thank you. Lets count down to the open with the top 10. The only trades you need to know about Erie Julie Hyman joins as well. Lets start with number 10. Forecasting consolidation among smaller rivals, a merger to create the industrys Largest Company aerated is still on target for at least threeor percent organic roof. Number nine is the jug maker who signed a deal with biotech to develop therapy drugs for cancer. An upfront payment of 80 million and providing funding. As itgeneral electric seeks to thwart the counterbid according to people familiar with the matter. It really does not land to raise cash proposed rights offer. A company cut its Fourth Quarter forecasts. Expects 2015 to be a year of stabilization and recovery. Expecteds you to is to block videos not agree to be part of a plan fiction service verified this and of the labels google worked with have not signed up. Class adobe, shares soaring after second order result and forecast strong and half of the year ended at it added a better than estimated 460 thousand customers for its Creative Cloud software. Number four is General Motors is eeo returns to answer questions about the automakers ignition switch recall. We will continue live average anyday and will it you on developments. Lazboy is number three. They posted their first orderly sales in 3. Ive years. Same storeyear ended at it added a br than sales fell by one percent compared to an 11 increase a year ago. Last edit. The Package Delivery Company Profit doubled yearoveryear. Estimates is ended to reach the benefits of an improvement land continueh rose to in 2015. Amazon on all eyes on the giant that its unveiling its own smartphone injustice you hours. Do not miss a special edition live from outside the event where they will on unveiling read the phone erie that is that 1 p. M. Eastern time. In the globalg equity Portfolio Manager at jpmorgan friday that bank. M a is being done out of fear rather than good. Does not sound like a good sign. Is a good sign you have got eeos more often and are willing to spend the money or it is like listen to what is driving the results, effectively buying sales rather than the translimited sales we would have talked about 10 or 15 years ago. It is good news. It is effective with the ultimate capital spending. It is also interest in you are saying effectively, my own stock is not as cheap as i thought it was years ago. . Oxidant about their own work. Give wherees can you ou see the trend . About,uch of it is not we will wire to some extent, is not the technology is changing the world erie it is much more about thomas out and i more efficiently drive sales through the network and better deal with buying power on the part of Insurance Companies buying power on the part of insurance and manufacturers . Like that is one area. Another area i know you find quite favorable is discretionary. You have been looked at some of the risks or him pennies. Class the sector has rallies evan percent. Moren women figure money to buy certain things. Wages, Hourly Earnings at the end of march. It is historically low wage growth. You haveipside, installation picking up, now tracking up 2. 1 year on year. The question is, is Earnings Growth enough to keep up with what may be building inflation. You look at the Consumer Discretionary sector and i would know backup wages. Start reading jobs. We look at what happened with jobs last year. You did not the any dramatic improvement. In theems to be shipping employment reports. Look at the job opening surveys. You created demand for labor him a more vocal back to work, and nec wages going area the consumer feels better. You can take it and instead the more people in looking to borrow a bit more. What do you see that is severely telling you simmers are feeling better . Likes to some extent to some extent im a you look at what theyre doing. They are spending thomas maybe not quite as much of a they are spending more. They are getting a more area the data remains somewhat more volatile him but housing has thistracking home sales. Morning, better than expected. Eople are looking to engage. There are two schools. I know you have a position on this very two schools on whether you should he actively managing or pass play managing your money were passively looking at your portfolio. Julie is taking a look at Asset Managers and yes. The implications from the debate youre talking about tom about the be one of the risks to Asset Managers erie the other could be the fact that it is a relatively mature industry. It running to bloomberg we are looking at about 46 penetration in terms of how many have mutual funds. Issue for the industry is, if you look at revenue per management, it has been declining to some extent. Wings, lower than that in the more actively managed funds. Is the more longterm concerns in terms of the growth of the industry. Those will go down . As we will see continued pressure on various arts of the market. At the same time, the ease on bonds are lower than equities. Were folios get rebalance toward equity, that should constructive. Its is an interesting business and it does not iraq a lot of capital. Your spending is effectively on technology. You also spend on people but you do not have a capital intention business of some of the other parts of the Financial Market your request you like them whether they are active or passive . By cs. They consists of many different elements. Some very active in concentrated strategies. You will wind up looking and shifting to that. Some Asset Managers effectively become exposure to the market request thank you for joining us. The Global Equity Portfolio Manager. Companyp, a power backed by elon musk is going from installing systems to actually making them. We will tell you more when we. Eturn we were just speaking about m a and video test bidding wars. Making an offer for the allergan. Alix steel has breaking news. Going hostile now in its it to take over allergan. Escape anly an exchange offer, going right to shareholders to appeal for a takeover. Stockholders will be able to and. 83 for 72 in cash of common shares. That is how the structure would wind up working. Valiant teamed up with a Square Management activist venture, which owns more than 10 . Valiant going one step further and trying to appeal directly to shareholders. Thank you. We will watch how shares react to this very shares will be reacting to the fed meeting as well. It racked up two days when it meets forecast. Analyst will continue to trim and will keep Interest Rates steady. In one test from washington covering the meeting. First off, how will the News Conference the approached this time . I would imagine with record caution. Care about the forecast in isolation. A lot of noise. Janet yellen and the staff will try to distance themselves. Is, why have it at all if it does not matter . What matters to me is the policy reactions with a specific set of circumstances. What is their game plan. Precisely. The tradeoff with the labor market and higher inflation. She will not wage the inflation she wants right now youre in real terms hamas euros. Real terms, zero. A higher inflation rate while they try to get more inflation as well. That is what interests me. Quite got there. We had 2011 saying they will not raise rates for 2000 and. Then they said Unemployment Rate class you are of the Gary Shilling variety. Reaction, butet a the smart mark it, they are looking for something else. There are two things to watch for that could surprise us. They continue to hash out what the exit strategy will be when start raising rates. No agreements but if her were, they could tell us and that would astonish people in the market. When you look at the charts john does not like, in 2016, they see a median of 200 order percent Interest Rate level. That is the year when they reach their inflation and job targets. You look to the right and see over the long run, they think Interest Rates should be four percent. That . Do theyuare reach a new neutral where Interest Rates can be lower and do they bring the Interest Rates town . If they did him a that would be a big surprise. Do you feel like trying to analyze the data and the during out whatever metrics theyre using, do you feel like that is navelgazing . It is difficult to do. You cannot identify which thoughts belong to. Yellenest point . Janet was the person behind these anyway and then she is there in march saying, do not look at them and they do not matter. They have got to change their approach as well. Considerable amounts of time. Back in march, six months and then back away from it here it in that slip . If i were press conference today, i would be asking again, when are you looking to put in rates up . What would you ask . The same question. What is your strategy to tell us once you are ready to tell us . Markets knowt the what you will do Going Forward . What are we supposed to look at . Thank you so much. In bottome line. We will have the Rate Decision and also the News Conference with the fed chair, janet yellen. You can watch digitally and live stream it. Solar city, the installer of rooftop power, moving into manufacturing the solar panel they installed. The company is that by elon musk and acquired by a californiabased company that makes artie makes it. A change of heart. What happened . Class a bit of a change of heart and a database a surprise in terms of strategy. Usually area and the Manufacturing Business has not in that rate for the pure many factors because the price of solar panels has collapsed over the past five years. But it is all about cost and controlling the slide chain. Jim fox talk to the cofounder of the company about that any of this for the deal. Make will be able to standard efficiency modules. In the u. S. The key things to know him of the energy tossed his lower. As aabor component is not requirement. You do not have any chance rotation offs. Massive working industry getting it from china to the u. S. We do not have that. The Company Plans to build a manufacturing silly of enough date new york. About china, that is really deep. A lot of the big manufacturers are in china. You have the transportation office. Not only that, there is honest of increasing on the solar panels in china. That would make them more honestly. If you make them here at home him a you avoid that as well. Then there is the efficiency hes. The solar panels have a 21 efficiency rate. They can convert 21 that they are gathering into energy and life is the and they are aiming for a 20 rate. That is on the higher end of what we see currently on the market. Thank you. We will have much more when we return. Time now for the global outlook. Crisis in iraq this afternoon. President obama will meet with congressional leaders at the white house to discuss the region. Options for american action. Headlines just across, the u. S. Will meet the iraqi that without troops on the ground. The airstrike the white house has been considering has been put on hold for the moment as well. Margaret joins us now. How significant our harry reids comments . . Harry reid is then chile under wearing what president obama has already made their he there. He does not want to get back into a u. S. Combat Ground Combat situation. Senate democrats are very much on board with his thinking very k his king outlined that outline that for us . Class you cannot undoclass you u have called in. The administration is not either satisfy they can get the target if theyied to get, or do come it will lead to political stability in the endgame. The white house is not ruling out him sort of airstrike nontargeted him about a are emphasizing the president has not made that decision yet. Tellingey yesterday reporters that the president and this solution is not primarily a military one request for in context. The if they do come it will militants at anl refinery. How much of a actor is his . Lets it is something to watch those league. The white house is watching it loosely. It is a major test of the strength of the iraqi government. They have a leg up. It is being closely watched by the white house. What will the president Tell Congressional leaders today . The president has called harry reid and Mitch Mcconnell as well as john boehner to the white house. They will meet in the oval office at 3 00. Hard of this is the president trying to put on a show that he really wants u. S. Action to be bipartisan. Art of it is also to buy time. Suedes which options are here talking on the right to the iranian government and some of these other regional layers. Republicans have been playing him pressuring him on action. Thist the president has and we the u. S. Military engagement in syria and he did not do the strike after he came close to it. We saw it again recently and in iraq, they were he never supported, he is really reluctant to get the u. S. Reengage militarily. Thank you so much. Does it for today. Tomorrow, we will be joined by a race card driver turned real estate mogul. Discussed how he is helping brazilians invest their money in u. S. Property. That is tomorrow at 8 00 a. M. Eastern time right ear. Right here. Over television is on the markets. We are 30 minutes into the trading day. Lets get you caught up on where stocks are trading. An uneventful day in the market. The s p is up 1 10 of one percent. It will really be a big way. Traders taking on the sidelines, waiting to see what the fed will do. Traders are saying, as long as we are over 1925 in the s p, it is hard to be bearish at this point. A look at treasuries. Prices are rallying slightly again. Still pointing out overall, the the expectations, we saw that in the two year yields. Today is also taking a little bit of a breather. Also, take a look at gold as well as silver. Staying pretty much flat into the said meeting. Neither of these are moving on the violence seen in iraq. The hawkish tone is pretty much expected. For more on what we will do from central bank, i am joined by Jonathan Ferro lumbered news. Thank you for being here. Lets start over in your neck of the were neck of the woods. Up in newime i wake york and look at what the bank of england came out with, it is like watching a comedy. Last week, you get mark carney out of nowhere talking about an early than it fact it rate rise. Then they are talking about their surprise about the low probability of cash this year. Surprised . I said in a press conference last month with mark carney. Why are they surprised about the low probability of cash in the market . They speak to the guys who have put the expectation there question mark im shocked by the language coming out right now. Is there disagreement . Click there is a division in the amount of spare capacity. I am currently confused about where this is coming from. Maybe they are confused about financial stability. Voicing these kinds of things, you get yields higher, and that is just the job of the bank before them. Extent, im just asking myself, where does this come from . Why has mark carney changed in a matter of months . I was on the phone with the former members yesterday and he was saying, there is no real. Age growth we are seeing something similar in the u. S. Growth is up 2. 1 but if you look at inflation, inflation is still up 1. 2 . Power,eing that buying that will make it tricky for the fed today. Janet yellen has gone on and on about wage growth. What the fed says and what the fed do has been two completed of the things. They continue to do something else. You will not find a single trader out there. Because janet yellen is looking at one thing and it does not change are trying to normalize policy at the same time. I am asking what i should be looking at. Talk to anyone in the market what should i be looking at . The dot plots do not matter. Do not put them there. You are just having me a lot annoyed. Get rid of them. Lets come out and saying, trading down in revision growth from the fed. Rate expectations based on the fact we have seen it trickledown to. In quick summary, the fed hascast has intelligible been terrible forever. We believe it at that. We are on the markets again in 30 minutes. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. They want answers. Lawmakers set to grill mary barra over the neverending string of recalls. What she knew, when she knew it, and what she is going to do about it. The blood runs crimson at their harbor. Three top managers are out
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