Companies. Symbolically this is an enormous decision, even if the changes are not felt right away. Pioneer Natural Resources and pipeline operator enterprise now have approval from the commerce for a very light type of oil. It goes through mild processing in order to stabilize it, and then it can be shipped out. When it gets to the destination needs to be refined even further and it can be made into jet fuel or diesel. The u. S. Does not allow crude exports. This really treads the line. Does give the Commerce Department some little room to be able to say that there has been no change in the expert policy export policy but at the end of the day it is oil being exported from the country. As you say, these are just initial steps. Going to mover the needle in terms of exports of oil . Words 50,000 barrels a day will be exported, kind of a drop in the bucket for this market. Will take a while. You have to classify oil correctly and get this into the right barrels. Is this aestion is, precursor to a broader lift of the export sanctions. It will definitely raise prices that could motivate the drillers to drill a little bit more. A lot of oil will most likely be going to a ship. They have a lot of capacity for these this kind of oil, and there appears to be no cap on how much can be exported. That is an interesting part of the situation. So far 2 companies are affected. What about other Oil Companies . Pioneer and enterprise and those who work in the permian and utica shales, it is still too early to say how much it will help them, because we dont know about the economics and how much it will be transported, or how economical it will be for them. There could be a slightly negative response for u. S. Because this will squeeze their margins and the longerterm, bigger implications are with the companies that are already investing in processing, like bp, and gender morgan. They are putting money into units to turn things into propane that can be shipped out. This decision by the Commerce Department undercuts that, it lines up making it easier to propane so to make the question is, what about these kinds of investments . Million is the 360 refinery in houston, that bp has invested in, with additional plants that have been proposed, and phillips 66. See how these to probes will continue to be politics, what a turnaround for the tea party. Two weeks after the historic victory over eric cantor, Tea Party Candidates suffered major losses in last nights primary, most notably in mississippi where incumbent republican thad cochran beat Chris Mcdaniel in a runoff. Other Tea Party Candidates also lost their races as well last night. For more were joined by the editor of bloomberg politics. 11 million was poured into mississippi by outside groups. Why was this so important . Republican versus republican action. It was important that they win the senate seat. The other tea party guy, if he had one, democrats would have fought for the seat. The chamber of commerce and other republican groups can work with republican candidates to get stuff done. Re was increased turnout which means republicans can be more confident. You have all these senate races around the country where republicans will harness tea party energy, and work with these outside groups, to win these races. This was a pretty incredible comeback for him. Did they finally wake up the republican establishment . They are looking at africanamerican voters. If a republican can make an appeal task americans, this is good nationally. This was from republicans and suburban women and other voters who did not turn out who recognized that they could lose the seat. A hard thing for republicans to say, if we focus and get a message again, we can turn out the vote. We have 13 senate races around the country where republicans will try to build a comparable coalition to win the race. Do they have a chance to turn the senate . That is a big question in politics. About 10 races they need to draw from. If the election were from the day i think that they would. Heard theantor thing establishment but today the establishment says, we can build coalitions to win in a primary in mississippi. In politics like everything in life, confidence matters. You can look at the wind from eric cantor and say, the tea party is gaining momentum and is gaining confidence but overall, how did they do in the primaries . It has not been a great year for the tea party. Is toick for republicans say, what does the tea party bring . People in general want lower taxes and less government. If you take the core message, that is what it is, that is why it is important for republicans not to dance on the grave of the tea party, and that they want people in the tea party to be part of the coalition. The dirty little secret is that if the republicans do well, that tea party energy will establish it, and that matters in the election. What are the implications for the democrats . They missed an opportunity, and if mcdaniel had one, they could have played that in the race and i have to figure out if they have a monopoly on africanamerican votes. Shortterm they want to keep control of the senate. This gives republicans a chance to focus on mostly playing offense in the Midterm Senate races, not having to defend the seat in mississippi. Thank you very much, mark halperin, the bloomberg political managing editor. Moving and shaking this hour, lebron james, four years ago he famously took his talents to south beach. Exercisee is free to his option and become a free agent next week and he could go to another team or take more money and stay with the miami heat. His first team was the Cleveland Cavaliers. I asked the cavaliers owner dan gilbert. We happen to be in detroit. We asked if lebron would return to the Cleveland Cavaliers. In terms of the collective bargaining agreement, i am prohibited in any way, shape or form to talk about players under contract with other teams. Comeback a week from now and we can talk about it. You cannot say if you are preparing an offer. Adamsay anything silvers fines could be even worse. Will be back in a week to ask you about lebron james. Probablye teams would pay 100 million for him, the nba rules limit his pay. Scarlet fu is here to explain why even though james was paid 100 million 100 million this year he is still underpaid . Heno matter where he goes will be underpaid because he boosts the value of any franchise. The at what happened to cavaliers would he left, their value plunged by 121 million dollars, to 355 million. The miami heat rose to 425 million. We know that the heat build their franchise around king james and now it is worth 770 million according to reports, seventhinning nba out of 30 teams, they started off at 12. Salary, the mba limits how much that he can make this season. He was supposed to make about 20 million . The mba is the only professional sports late to put a cap on individual player salary. The maximum he can make is 95. 8 million over the next four years and that averages to 24 million, annually. You look at where he ranks in the top paid nba players, he is tied for eighth place with chris bosh, he does not crack the top five. The highest paid nba player is kobe bryant, who makes 30 million. Lebron james is really the biggest bargain because of his halo effect. He is a fan favorite and helped the heat increase average attendance and ticket prices and think about how money lebron james jerseys are sold. When you talk about salary that is a small portion of it. And he makes 61 million, most of it coming from Companies Like mcdonalds and samsung and cocacola. They are more than making up for the bargain salary that lebron james makes in the nba. What is the talk right now about where he might go or if he will stay in miami. Is a lot of discussion and the Cleveland Cavaliers and maybe the l. A. Lakers or clippers. They have a new owner as well as the houston rockets, franchises that might build up around him. The back burner what happens with Carmelo Anthony of the new york knicks. He had declared free agency and i dont know if this makes it a more restrictive market for mr. Anthony. Good stuff in free agency. Scarlet fu on lebron james. An entire industry awaits the Supreme Court. Rulingll announce their on the broadcasters and world cup fever, one u. S. Fan says this should be mandatory, and world cup holiday. He is looking to the white house for help. First, bloomberg. You are watching in the loop , i am betty liu. You will want to watch what the Supreme Court does and the next few days, we would hear what they have to say about whether aereo is legal, they have been at war with broadcasters on whether they should be paying to stream their content. Broadcasters say this is an unequivocal yes, they should be paid. And that their content is being stolen. But what is the the high court looking at . John has represented a number of broadcasters in these before. You believe the broadcasters will win . The legal issue is, are you publicly performing the copyrighted content on a broadcast signal, when you stream it for thousands of people over the internet. Their position is, i am sending thousands of private performances simultaneously. They drew this out of the unfortunate decision of the in which in 2008, cablevision argued that they should be able to put their dvr rather thanhe head in the home, and the content publiclyd, you are performing it because you are sending it over the long wire. You are publicly performing it. So that was the argument, they came from these venues and they just borrowed from that argument to apply to their own business model. And in that lower court, did it hold . It held in the Second Circuit. Why wouldnt it hold in the high court . There is a case, hard cases make bad law. The functionality can change, the money flow did not change, nothing changed except, where this is recorded. I think the Second Circuit struggled to write a decision to say that this is ok. When you do that you have unintended consequences. This is the question for me, about this is a public performance. And therefore this is a legal. The seeners had this story before. The copyright act was not changed it until my teen 76. The reason that congress acted after all those decades was the dawn of cable television. Cable Television Operators put up an antenna, and packaged it with a bill and the program guide, and sent this to paying subscribers and they said, you are publicly performing and the Supreme Court said, this is not really a public performance. Theress reacted by taking presence of law here, they said, if you pick up a broadcast signal and transmit this by any technology, if the technology exists now or is invented later the whole purpose is because they knew that technology had gotten ahead of the law. And you should pay for that. When that was written, the Cable Operators came on board and it was written so they would have to pay, you have billions of dollars of transmission fees and broadcasters pay them. The Supreme Court comes up for the broadcasters what happens to aereo . I think that it goes away. There is no alternative. I dont think that there is a contract around this. Does that mean that any other company that comes up with a streaming service of broadcast content is likely to have to pay for that . There can be no other area that comes up . Unless someone comes up with a legal theory and gets to the court system i think eventually it will be shut down for the same reason. If it walks like a duck and i went down duck, to the studio in brooklyn and had never actually seen this, they got this going. They say this is an antenna or rental service. We are renting an antenna. I say, how do you like your Antenna Service and they looked at me like i was crazy. I said, this is an Antenna Service and they said, this is cable and you can explain it to people who are subscribers. That this is different than cable. Does this have any implications for other industries at all, any other companies at all . Yes. This is a copyright case. The law of the United States and most of the world is that copyright owners and International Property owners have the exclusive right to determine how their property is used. The abridgments are specifically drawn by congress and if they open this up, i think you have a huge battle in washington over intellectual property law. John, thank you for joining us. Coming up, showdown on the soccer field, the u. S. Against germany tomorrow. What do the numbers say about who is going to win . First, bloomberg. You are watching in the loop , good morning, i am betty liu. We are on the markets. Equity futures are mixed right now and we have more Economic Data coming out just a few moments, including durable goods orders. Numbers withme gp measured inflation numbers, that lots of investors are watching the inflation scenario. We are on the markets again in 30 minutes. Maybe the u. S. Is getting soccer fever after all. The u. S. Portugal match was the most viewed soccer match ever in america on espn, according to the nielsen ratings. 18 Million People tuned in to the world cup game, all leading up to tomorrows u. S. Match against germany. We have been watching the world cup, a hard job. What do we need to know ahead of this match . If you dont know anything about soccer but still want to pretend that you know exactly what is going to happen, the u. S. And germany, the u. S. Has a 32 chance of winning or tying the game tomorrow at june tomorrow at noon, and if they win they are in. Portugal and ghana are going to play at the same time, both games will decide who makes it in. It is not totally guaranteed that the United States will get all scenarios they will probably get out of the group stage. What if they do win, play out all of those scenarios. If they win or tie they are definitely in, if the other game ties, no matter what happens, they are in. The only issue is if the u. S. Loses and portugal or ghana wins by such a big amount that the number that they score in their game offsets the number of goals that the u. S. Scores, and then that could allow them to lose. The u. S. And germany want to both tie the game. If they both tie they are both in, no matter what happens. This whole idea of a collusion among teams, i know that this is a problem among the professional soccer teams. This has been a problem in the world cup of four. West germany versus austria in 1982, the score was 10. They would both get in a matter what happened. Germany scored a goal and did not do anything for 80 minutes. The crowd and the announcers ifa has theand f games playing games playing at separate times, that is why they play at the same time so you cant know what the other side is doing to affect how you will play. And they are trying to root this out. They are trying to couple the organizations are at the top so it is not surprising that some of them have shenanigans. Germany is the Stronger Team . They are stronger and if you look at the value of all of the players on the team and the transfer market, ing look at the numbers and found the german team would be worth about 800 million and the u. S. Team would only be worth about 80 million. The value of players is really there is no shortage of drama. The italian coach is stepping down, england lost, and the uruguay player who bites people. He did not even get in trouble for this time. He has not gotten in trouble for anything. You saw those photos of the italian soccer player, showing his shoulder with bite marks. We have come a long way. In 1982 they were fixing games, publicly and now you see players biting other people, so we have come a long way. Eric, thank you so much. To get the latest world cup news and analysis, go to bloomberg. Com rio. The other top headlines outside of the world cup, google getting into the television business. They will unveil a new tech a new box at the Developers Conference today, according to the wall street journal. The newl be powered by Android Software which is designed to play movies, games and other content on tv. Reportinglls fourthquarter earnings revenue that fell short of analysts estimates. Has begunof cheerios a formal review of the north American FactoryDistribution Network with the goal of streamlining their operations. Streamlining their operations. The government is getting ready to hold a giant bitcoin auction. The u. S. Marshals service will auction off nearly 30,000 worth 17. 5 million on friday. Virus buyers are lining up to bid on virtual currency. Durable goods lets take that first. 1 as the headline number. Durable goods are pretty. Olatile excluding transportation, down 0. 1 . Worse thano a expected number. In terms of gdp numbers, revised down to 1. 8 for the First Quarter in gdp. A little better than what excuse me, revised down to 2. 9 , down 1. 8 , worse than what we had seen earlier. At 1. 2 . G in that is in line with what we saw earlier. Does not look like inflation is rearing its head at all in the First Quarter. Mike mckee, tell me more. It is kind of interesting. In the First Quarter we met the enemy, it is us. The big change i can see immediately is the personal consumption, revised down significantly from a gain of 3. 1 to a gain of just 1 percent. Business spending not quite as bad as initially reported. Sixth investment down 1. 8 , it had been down 2. 3 . We see a decline in inventories from for 9 billion to 45 billion. Expected,s worse than almost every category worse than expected except business spending, that was negative anyway. The gdp report tells us how bad the winter was. The decline in gdp, 2. 9 , worse 2001the decline in the recession. Making it remarkable that we are growing as fast as we are in this quarter. The latest numbers about 3. 6 . Durable goods orders will add to that a little bit, even though they are down on the headline number. Transportation, take out cars and you have a negative one. Business spending, capital goods, nondefense, aircraft, what business spending is doing, by. 7 . On a threemonth average annualized basis, which is the way you want to look at it to smooth out some of the irregularities as you get month to month and durable goods, up 14. 9 . Businesses are starting to spend again. If americans are back at the mall now that the winter is over, things are looking up for the u. S. Economy. So much, mike mckee. As you were talking, we looked at equity futures, they are lower. A little lower than before given some of those worsening gdp numbers and durable goods orders. S p future cut down. 1 . Company that is bringing back the lapel flower. What is that . I will ask the founder and ceo how he is looking man on his of fashion accessories. Five years after his death, Michael Jacksons career is very alive. How the late king of pop is making more money than some of todays biggest celebrities. Stay in the loop. Todays bloomberg big number, six hundred million dollars. How much money the king of pops estate has earned since he died five years ago. Jacksons hologram moonwalk across a stage last month in a performance. In a new album that recently debuted at number two. A traveling Cirque Du Soleil show based on a jackson song has had four hundred performances worldwide. The earnings will help support jacksons three children and mother, others will pay off the debt jackson left behind. You will have to have a bit of cash to shop at my next guests company. ,ofounder of hope and albert trying to change the way men think about dressing up. They have hooked up with nordstrom with their garment bags and shoelaces. The cofounder and ceo of hook albert. You are wearing the lapel flower. I am. I think the whole philosophy about what we are doing is offering guys tools to help their personal brand have fun with fashion. It is no longer about a slim fitting suit. We can do that through accessories. Men need help . Everyone needs help. The shift in menswear to everyone doing the same thing. If you have five guys wearing a blue suit and a white shirt, how are you different. We want tolly what offer. Was repressed selling item . What is your best selling item . It changes every day, we have success with our lapel flowers. We have created a destination for all the things. We have customers buying a pair of socks and a few shoelaces, a tie. It is about the small things. 32 shoelaces . They come in a five pack, about eight dollars a shoelace. Still. The compliments are worth every penny. What is it that your customers are wanting . Our customers want something to help promote who they are. A guy wants to have a conversation, he does that through a lapel flower or through a really beautiful pocket square. In menswear, big things are getting smaller and smaller things are getting better. There has never been a time when a guy can go to one destination for all the little things. We are trying to signify that. Tell me your talks with barneys or saks. You started back in 2011. With zero experience in the apparel industry. What really happened was we started to go to these retailers and tell them our story. Guys were walking into Department Stores and going on a Scavenger Hunt to find the wallet they wanted. We said we want to signify that and be the brand they can come to within your walls. Then you need great products. We make some of the best socks in the business. We are behind the forefront of things like the lapel flowers or shoelaces. Once we told them that they embraced us. They now have business verticals that they never have before. Old tens of thousands of lapel flowers, a sixfigure business they never have. Same thing with shoelaces. We are bringing newness may have never experienced. Where are you expanding, what is the next product . Radically shaping the bell industry in 2013. We have a new product we have been working on that is absolutely a game changer. We are excited. It really fits with the same dna we stand for. Looking at things, fit, function, and fashion with quality. How do you change the game on belts . Bring you to many details until 2015. It is about textures, a play on buckles. What can you tell us about how much money you are making. We have hit significant milestones. 300 growth year after year. It is about a thriving ecommerce business and retail partners. We work with every major retailer in the u. S. , canada, and will expand to asia in 2015. Standalone hook albert stores, we will bring that model here. The lapel flower, thank you to adam schoenberg, cofounder and coceo of hook albert. News barnes noble. Alix steel has more about splitting the retail and nook operations. Barnes noble will split its Retail Business into two separate public companies. They expect the deal to be completed by the end of the First Quarter of 2015. This comes as barnes noble says its fourthquarter sales topped estimates. Nook segment revenue down 22 . A divergence between overall barnes noble ability to run the Company Versus the nook segment, down 22 . Look at barnes noble stock in the premarket on this announcement, it looks to be indicating a higher open on this news. Thank you, alix steel. We will be back in two minutes on the bank account automaker for refreshing a popular car. The promising global market. The 2015 edge crossover Utility Vehicle priced under 30,000 for sale all over the world. To talk about this i want to bring in matt miller. Whereback from michigan, he interviewed fords outgoing ceo, alan mulally. Hendrix is joining me now, fords president of the americas. Thank you for joining us. I want to get likely a question. Bout consumers out of the way gdp shrank by the most in five years in the First Quarter, we have seen your sales numbers. Do you see a noticeable take up in the Second Quarter . We have. We know how bad the weather was in the First Quarter, it affected auto sales and the rest of the economy in january and february. In may, we had a 17 million unit. The Auto Industry is a strong, june is going to be either good month. Consumers have resiliency. We can talk turbo charging, which makes my day. The new edge will be the first ford you will offer standard with a turbo, ego boost technology. About the fuel efficiency increases, the speed, the power. How much sportier do you need to make this crossover . When you talk about the new edge that comes out early next year, we have advanced everything. The design, the styling, he talked about the powertrain, two ego boost options. We are going to have all kinds of technology in this vehicle. Degree camera,0 adaptive stealing, curve control and parking assist. One of the most advanced vehicles we have built. It will be fun to drive, safe. Adaptive steering is exported. How competitive is the segment getting . The suv and crossover segments are getting competitor. They are growing. Seen escape sales be very strong. Explorers sold out. Hereone we make we sell and in china. The edge has done well. Not just here, we shipped to china. We think they segment is right for new technology and also moving upscale the we have a titanium model. How successful do you think it is going to be in china . You ran the asian operations for for for a long time. This car sold 130,000 in the u. S. Last year, what about internationally . Years in alast three row, china has been asking for more every year. Everyone we have given them, we have sold. It has continued to do well. We had some dealers from china from beijing over here a couple weeks ago. They told me they love to the edge, especially the five passenger version. We see strong segmentation here, we are one of the leaders in the industry in this segment. We defined it with this car in 2006. We are excited. It, am excited to drive especially in the yellow color. Looking forward to driving the new f150. Full disclosure, i have the old one. Morgan stanley said the changeover is becoming very costly. What do you say to that . How is that going . You are in charge of the americas. The f150 launches on schedule. We have not changed timing, cost or execution. The truck looks great. It tested well. I have driven it a couple times. The truck is really going to wow people. Everything is on schedule. I dont know where they got their data. We are moving ahead. We will shut down dearborn truck plant and start conversion to aluminum. Henrichs, joe president of the americas for four. Matt miller, resident auto expert. The u. S. Chamber of congress threatening to break off support for president obama. What has the business lobby so upset this time with the white house. The fbi has been cracking down on Insider Trading and whitecollar crime. The man leading the charge in the new York Field Office is fbi assistant director George Venizelos. In an interview with erik schatzker, he spoke about his efforts to get wall street workers to speak up when they see what wrongdoing. Crime, whitecollar unless you are a victim and it has affected you personally, sometimes they do not take it seriously. What they do not understand is that we are all victims. Anybody who has a pension plan or a mutual fund or some kind of money in the stock arc it is a victim. That is what people do not get. Why do you think more people on wall street and more people in banks and Brokerage Firms around the country do not, when they see something, pick up the phone and call the fbi . To say something. Good question. That is hopefully i think more do than people realize at times. We need to work at all. We need to make sure people are aware that this crime is affecting everybody. Peoples life savings, look what the man off kays did suit id towhat the madoff case d so many people, they lost their life savings. People have to realize it is so important to keep his Financial Market budget. See more of eriks interview with assistant fbi director George Venizelos on Market Makers at 11 00 a. M. Eastern. Like bigss it looks business will break with the Obama Administration over sanctions on russia. Obama considering more sanctions because of the crisis in ukraine host up according to people briefed on the plan, the u. S. Is preparing sanctions aimed at areas of the russian economy such as energy and technology. That is the National Association of manufacturers, they have been lobbying the industry against more sanctions in private. Now they plan to take their objections to the public. Tomorrow, the groups will run ads in the new york times, the wall street journal, the washington post, warning that more sanctions could hurt American Companies and jobs. U. S. Companies are the biggest Foreign Investors in russia. 56 minutes past the hour, bloomberg is on the markets. Equity future go turned lower, continuing a slide after durable goods came in less than expected. The revisions to gdp numbers also much worse than expected. On the markets again in 30 minutes. Coming up, desoto that is bucking all the trends. One of the top 20 diet sodas in the u. S. It does not use sugar, it has no aftertaste and is not made by cocacola or pepsi co. , how does it do it . Bloomberg is live at the Clinton Global Initiative in denver. We have an exclusive interview with the former president bill clinton live from cgi at 11 00 a. M. Eastern time, right here on bloomberg television. The0 minutes away from opening bell, you are in the loop. Futures indicate stocks will open lower. The economy was a lot worse in the First Quarter than the initial forecast, gdp fell at an annual rate of 2. 9 , the biggest drop in five years. Model asss of teslas has jumpstarted traditional automakers, they are all coming out with their own electric car or hybrid luxury vehicles. Has just5,000 ia coupe gone on sale. Google goes head to head with apple tv and roku, unveiling a set top tv device today at its Developers Conference. Bloomberg is live all day at the Clinton Global Initiative in denver. Special correspondent willow bay will be sitting down with president clinton in a few hours. First, she sat down for an exclusive interview with the president of the American Federation of teachers Randi Weingarten. Most runs one of the powerful unions in the country, heres what she said about using pension money to invest in infrastructure and how that is paying off. In terms of the current structure, they need and then there is the need to recreate middleclass jobs. So we said there is a funding mechanism . Why dont we take the capital of workers pensions. You can invest that for 20 years well you are building a bridge or building a highway, while you are building a tunnel underneath the hudson river. And so we said lets try to do this. It, 3 understand billion of the 10 billion is deployed. 7 billion dollars to come. How many jobs will that create with 1 billion in shovel ready products and design, you have over 33,000 jobs. What we are seeing just based rpon regula regression analyses, this will create over 150,000 jobs. Of the projects. Some work in terms of retrofitting energy with Duquesne Energy in pennsylvania. We are rebuilding roads and courthouses in california. Oregon we are retrofitting schools to make them more energyefficient. This is a winwinwin. Sustainable yields for middleclassobs, jobs, and infrastructure for america. You get infrastructure, jobs, and yields. What kind of yields . Yieldse trying to create around 5 or 6 . Xed assets, if you are going into a bond fund, youre not getting that right now if you are a pension fund. If you have a mixed yielding your pension fund and you have some infrastructure allocations, you can balance your fund. Tofor more on cgi, i want bring in bloomberg special correspondent willow bay in denver. What was the other they take away from your interview with Randi Weingarten . Interesting mix of bedfellows here. You have a former teacher, head of the teachers union, coming together here to create Innovative Solutions to americas problems. She was talking infrastructure and pension yields like she was a professional in one of those fields. That is indicative of the conversations and solutions that are developed here at cgi. Cgi is all about solutions and putting your money where your mouth is. Issuese some of the big they are tackling at cgi this time . This time, some of the key things that keep coming up over and over again are what americas businesses need to do to compete successfully. Access to talent, so secretary clinton and the new dr. Clinton, chelsea clinton, announced yesterday a project which getsone, Companies Engaged in educating, training, and employing todays young people, which secretary clinton caught a 20 million problem. Which secretary clinton called a 20 billion travel. Speaking with bill clinton later this morning, what are some of the key topics you will tackle . President clinton will be very excited about what is going on, this is the Clinton Family business. We will be getting his take on the he is a selfdescribed policy wonk. His take on things like immigration, cant americas businesses really compete successfully if we do not solve that jacob todays political climate, what does it mean for americas companies to live in a world with gridlock . We will talk about tax reform. About innovation, can innovation drive our economy . Special you so much, correspondent willow bay at cgi in denver. Last week, elon musk made 1 billion on his holdings in tesla motors. Morgan stanley gushing that tesla is are deeply the most important car company in the world. Hasts 11 year history, elon helped redefine the electric car market. Other carmakers are following suit and trying to create their vehicle. Matt miller joins us. We are looking for the it car, maybe the model as has been that way. What is the next one . Good question. They rule this segment hands down. It is hard to believe tesla is 11 years old. Seems like it is so new, the model s rapp accompanied to the national stage. You had a roadster, it was a lotus with batteries in it. Not nearly as sophisticated or well put together as the model s. That has been one of the greatest keys to the success of the company, this car is so great. The fit and finish is amazing. The efficiency and the handling, the power delivery. It really is the ultimate driving machine and electric. Just why you and i have both driven it. I love it. I dont why they have pictures of me driving it and not you. No, they want you. I put together a list of comparisons between these two the biggestw i8, obvious challenger, it is not out yet. The tesla. Sportier. Is zero to 60 in 3. 8 seconds. The tesla does it in a little over four. Gasgets 310 miles, it is a hybrid. Miles. Ays he gets 300 it is a little bit more expensive. Tesla says that car starts at 71,000, that is rubbish. If you are a rich guy going to buy a tesla, youre going to walk out with a 130 thousand dollar car. The bmw is about the same, 137,000. Was in it car in the past . Is alvaroest it car 4c. s is alfa romeos it is about fuel efficiency as well as performance. The new kind of it cars are going to be hydrogen cars. Alan mulally was telling me that was going to be the future. Loyola putting out a 70,000 Hydrogen Fuel cell car in japan. Theres a lot of pushback from people, including elon musk. He calls them fool cells, saying they are a load of rubbish. Why . Theyre too expensive, they run gas through plastic panels laced with platinum. Morgan stanley cannot this morning saying it is kind of a load of rubbish, they have not made any event is in technology and is still about the electric cars, notably the tesla model s. Thank you so much, matt miller. Coming up, while the soda industry has been fizzing out, one Companies Sales have been bottling up. I asked the ceo of zevia how the company is bucking the trend. The fate of the Export Import Bank, what would it demise mean for u. S. Businesses . Stay in the loop. Soda with veryie little aspartame, sounds like the holy grail for coke or pepsi. It has been developed by another company, it is called zevia. Calorieral, zero soda sweetened with stevia and monk fruit. 20 diet soda not owned by coke, pepsi, or dr. Pepper. Zevias ceo paddy spence joins us. How did you come up with this . Consumers have been looking for a better soda for a long time. We are watching a shift in soda categories before our eyes. 96 of Americans Still buy soda but we have seen a 20 year decline in the category driven by moderating consumption by consumers. Now, diet sodas are losing market. Diet soda aref not comfortable with the artificial sweeteners in those products. Is a plantbased sweetener from a leaf. Our product has zero calories with no artificial sweetener, consumers can feel good about this. Cvsoke and pepsi have tried and consumers complained about the aftertaste. Inclusion ofreason stevia there is a recent inclusion of stevia and full calorie vitamin water. Violin water zero, soviet life 50terfront pepsi, and trop orange juice. Recently, vitamin water swapped out stevia for crystalline fructose. If i am drinking a full calorie product i do not want a replacement. A significant number of consumers are looking for no calories, stevia meets that need. 40 of u. S. Households have a stevia product in their pantry. It has ad zevia, little bit of an aftertaste. The holy grail for any company is zero calories and zero aftertaste. Benefity that might not cocacola and pepsi. They might not want the holy grail . A profitableave and huge portfolio of iconic brands it is risky to innovate. You have whatf consumers perceive as a better for you product. If you created diet coke with stevia, what is that saying about the legacy product . There is a hesitant approach. Coke and pepsi you think they hold themselves back. Lex i do, the innovation has been they have tried to position it as incremental by offering midcalorie. The real question for consumer is are you looking for a soda 60 calories,0 or im not sure we will see a lot of people who are begging for that. You are coming off of a small bays but you are growing. Who is buying your soda . Versus those buying diet coke and pepsi . The next generation of consumers are flocking to a product like this. Millenials and young families who have kids, they are saying i do not want my kids to drink diet soda or full calorie soda. Hispanic families, folks who are drinking for an easy switch to feel better about health and wellness. Where are you expanding with zevia . What is exciting is there are so many different faces for our brand to go. We are halfway up the mountain but so many new frontiers. This year we became the zero calorie soda sponsor of the oakland as, the first better for you soda and major league baseball. My job is not done until the 30,000 mcdonalds around the world have zevia. They have cocacola. We love challenges. At the end of the day, the consumers voices being heard and they want a better for you product. Thank you for joining us, paddy spence, ceo of zevia. A favorite of many businesses, the Export Import Bank might not have its charter reauthorized. We will tell you why when we return. Before competitors came out with a smart tv, it was the topic of chatter. It might finally become a reality. From rumor to reality, we will be back in two minutes. Part government agency, part bank. At the center of it political firestorm. The Export Import Bank facing a possibility its charter will not be reauthorized, it is due in september. Phil mattingly is with us. What would the Business Impact be if it is not reauthorized. Look at the lobbying disclosures, you see the big players in this fight fighting for their reauthorization, we are talking about manufacturing owants, boeing, ge, d chemical, caterpillar. This is important for one reason. What its function is is for loans, guarantees, insurance, for Foreign Companies that want to buy u. S. Products. For manufacturers, that is huge. The problem, this is where conservatives have raised concern, is that it might skew the market place and give those companies, those Big Companies and unnecessary disadvantage. What we have seen is the chamber of commerce and the National Association of manufacturers, big business has started a fullcourt press to try to bridge the gap and make israel for his age possible. And makeed to do reauthorization possible. What they need to do, inform people on capitol hill what the ,mpact is in terms of jobs financing, and exports. Until they do that they will face issues. Ask what has changed the last two years since the midterm . Whole lot. A lot of people, you have seen this, putting a lot of stock into what eric cantors loss me ant. A love of it is not accurate. One thing it impacted was this, eric cantor was the leading pl ayer pushing for the authorization. He is gone, his replacement, kevin mccarthy, even though he voted for it in 2012, has said he is against it. Kevin mccarthy replacements se is against it. 2 3 of Republican Leadership has changed. If you put this on the floor it would pass, but that is a major problem and that is the biggest change. You, phil mattingly. Just a few moments away from the opening bell. We have the top 10 stocks you do not want to miss to my right after this break. Keep it here on in the loop. Welcome back, you are in the loop. I am betty liu. 26 minutes past the hour, bloomberg is on the markets. Alix steel has the latest on future coright before the open. S, a decline in future ,eaker Economic Data firstquarter gdp coming in at 2. 9 , the biggest revision since 1976. 1 ble goods coming in at as well, due to transportation and defense categories. Looking for 1931 on the s p. Check on the treasury market and oil market, investors want to put money somewhere, putting it in the treasury market and seeing yields fall as prices rise. The divergence between wti and brent prices, wti neutral on the news that two companies will be allowed to export condensate. Brent lower on the news iraq exported 2. 5 Million Barrels a day in june and will continue to ramp up exports. On the markets again in 30 minutes. Down to the open with the top 10, the only trades you need to know about. Overseas at number 10, samsung electronics. Expected secondquarter earnings to be not that good but earnings have slipped in the past year amid higher competition from apple. They may report results as soon as next week. That is kind of an interesting morning. Warning. Falling in they premarket after the Commerce Market clears the way for the first exports of unrefined u. S. Oil in four decades. Not since the 1970s have American Companies been allowed to sell oil overseas. Hanes brand will buy a french enterpriseker for value of 540 4 million. The purchase should boost adjusted earnings per share by about . 25 in 2015. Whole foods will pay about 800,000 in penalties and fees after investigation found the Supermarket Chain was overcharging customers in california. Whole foods operates 74 stores in the states. Their food is already pricey. Carnival cruise lines reported cordially earnings that failed to pass estimates. Wasival says the company led by Strong Revenue and lower food costs. Said expansion into african markets and the Global Economic recovery made the revenue increase by 10 this year. In business and Leisure Travel worldwide as the Global Economy improves. Introduce a new Television Set top box as it races amazon and apple to control Digital Content in the home. The device will be powered by a software called android tv, according to a person with knowledge of the plan. Monsanto announcing plans to buy back 10 million worth of stock over two years. This comes after monsanto ended talks about a potential takeover of a 36 billion competitor that would have cut its tax bill. Mills, the maker of cheerios posted a 10 rise in quarterly profit but the results still trailed estimates. Started a review of its with American Manufacturing and Distribution Network as part of an effort to cut costs. N, barnes noble splitting its bookstore and ian read business in a bid to improve performances. Tune into street smart, speaking with barnes noble ceo at 3 00 p. M. Eastern on bloomberg television. Todd, formerng in white house director of Economic Policy and managing director of tiger hedge fund. Believes that the president should do many things to drive economic growth, including driving down the price of oil. Why . The American Consumer right now is walking on a very narrow balance beam. There is danger on both sides. We might have Interest Rates going up, that shades the balance beam and makes it even narrower. On the other side are higher oil prices. I do not leave the American Consumer has the wherewithal to withstand significantly higher oil prices. So far they have so far. To 120 orces rise 130, into the Great Recession we had oil prices at 130 a barrel. That is not off the map with all the conflagration around the world. When you turn on the tv and see riots, is it venezuela, syria, iraq, or ukraine. It looks as if we are finally going to Start Exporting Oil for the first time in 40 years. The Administration Credit for that, thats the right thing to do. The administration ought to also make it easier to export liquid natural gas. They have made baby steps. We need to become a Major Oil Player in the world and work with the canadians to allow the xl pipeline be approved. We are encouraging the canadians to send it off to china, how does that help Global Warming to have china using more . Oil will end up here in the u. S. , even if it is not through the pipeline. Whats the point if its going to end up here anyway on ship that might be leaking. Why not have a secure pipeline in north america . At a timemments are when the economy seems to have been awful in the First Quarter. We just got the revisions, gdp 3 , personal consumption with a 1 gain. Do you attribute that to oil . The weather is some aspect. Two things that surprised me about consensus. A couple months ago, economists thought the First Quarter was going to be robust. They forgot christmas sales were not though. The consumer was like a grinch over christmas. Since when do you have grungy sales followed by a blockbuster january . Never. Secondly, obamacare. As we enter the First Quarter, American Consumers, middleclass and lower income, were scared that when the mailman arrived he would be handing them a slim envelope from their Insurance Company telling them they were canceled. That scared consumers during the First Quarter. On a big enough scale . You did have, after the website was fixed, you did have significant sinus, millions of people signed up then paints and premiums. When consumers pay premiums to get health care, they no longer have money to spend at walmart and nordstrom. Were hurt by obamacare, in the long run it might be a good thing. You combine the weather and the scare in the insurance market, we christmas skills, knows a prize. It is easy to write off the firstquarter, there seemed to be so many oneoff issues like weather. And thea acrosstheboard the First Quarter was weak,. Where does the economy stand now . Like anot bouncing back lebronasketball hurled by james. The economy is tepid. The president should make it a priority to drive down the price of energy. By doing what . The xl pipeline that will not be right away. Indication that the administration aspires to have lower energy prices, not higher. The president should use his antitrust forces at opec. Lawsuitsd we file before the european Monopoly Commission . Anotherhats a whole ball game. I get tired of reporters standing in front of cnn in frontat opec opecenna meetings at as if it is a legitimate organization, it is a cabal of conspirators trying to Keep Oil Prices high. Thank you. Google could unveil the setup box we have been hearing about. Will it make a splash now that apple and amazon are in the industry . Prices its ips today, what is all the fuss about. Cameras you can strap to your helmet. A few minutes into the session, stay in the loop. Stories. P tech yahoo Ceo Marissa Mayer caused an uproar among advertisers last week when she was two hours late to a dinner with them at the cannes festival in france. She apologized for the first time. The comments were mayers first since the incident. She says she was pleased with all the meetings and she had so far. Samsungs cfo describes the companys secondquarter earnings as not that good. These were confirmed by the company after they reported by south korean media. Samsung excited to post operating profit of 8. 2 billion. The foxconn chairman asking shareholders to give him time to invest in new businesses as he chases clients like tesla. Key iphoneapples manufacturer and chinas taiwans largest private employer. Google is ready to unveil a new accordinghv box, that is to the wall street journal. Trying to compete with amazon and apple over control of your living room, Digital Content at home. For more on this and the Jon Erlichman is already there at googles conference in san francisco. Whats the buzz of it you will see the about google tv . In the days leading up to this event, there was a large discussion around something called android tv. Software that basically feels your Television Set. Oft would be the abolition something called google tv, which has been around for years. Into tv beforeng a lot of people and they had partnered with tv manufacturers could have an interactive tv. The results were mixed. They made it available through logitech boxes. If you do see set top boxes, are ory google set top boxes from a hardware manufacturer . People thought this was going to be about android tv, that could be used on screens the same way Android Software is used on smart phones and tablets. It is confusing, they have chrome cast competing with apple 35, you get, content and netflix. People will be interested. Tommy what we will hear in terms of wearables, jon. This is more exciting. Earlier this year, google unveiled something called the android wear project. Same way they want Android Software on Television Sets, smartphones, and tablets, they are interested in having smart watches fueled by android. They had hardware partners, lg and motorola, samsung, htc. Theres this expectation that we could see some of that smart watch hardware today from their partners and how it works with the Android Software. That would be thirsting to see as we all anticipate the launch of apples iwatch later this year. Theow it all fits in with other devices at google, including google glass. Am interested in this. Google basically has cakept glass in house. They had a splash of a presentation a couple years ago, they try to get all these Developers Developing for google glass. You have a separate world of android, in this case, with it wearables and smart wear. You have the world of android and then you have Something Like the operating system. They are kind of parallel but they have not fully come together. Not, googleey will glass and android wear, just yet. But down the road. Thank you, Jon Erlichman. For more on google, read Bloomberg Businessweek him for taking a look at googles new chief of the android division. To affect a lot of what happens at the Developers Conference. For an ipo today, the Fastest Growing digital Video Company in america expected to issue around 20 million shares for a proposed value of around 4 billion. Leslie picker joins us now. Trying to market itself as a media Company Versus a company that sells cameras . It is a great time for this company to go public, they are profitable and posting about 1 billion in revenue. But that is coming from the sale of cameras and accessories for the cameras. No material revenue is being derived from the media platform. That said, they see this as a strategy for them, this is a great opportunity. They have all this content, have you ever watched a Gopro Youtube video . They say they have 2. 8 years of footage uploaded last year, they say they can monetize that. Do investors agree . Investors see this as a question mark. Fundamentally, this company is sound. They have profitability, which is unique for a tech Company Going public. 87 Topline Revenue growth, pretty strong. A great cash flow. Everything fundamentally looks great for the camera business. If investors are going to be asked to pay a price for a media company, they want to know how theyre going to make money. Now it is a question mark. They have a partnership with microsoft to collect fees from their xbox live channel, it is a little bit of a wait and see what happens. How do they compare to other startup ipos recently . They are profitable. Most of the companies that have gone public in the latest cycle have not been. A consumer electronic device. This is what we like to call the first in a vertical of companys going public. appetite forors consumer electronics. Things like beats and vice media and other Tech Startups lately. Thank you, leslie picker, who covers ipos. Who said money cant buy happiness . Theumer confidence is on rise, how you view the economy could depend on how much money you make. The global outlook. In japan, shinzo abe says 15 years of deflation have come to an end. Deflation will be forded by new policies aimed at helping business expand. In iraq, sunni militants consolidating their hold on large chunks of iraq. That is according to u. S. Military officials. They are concerned militants are threatening to bring down iraq. Last week, dick cheney coauthored a wall street journal column attacking the way president obama is handling the situation. Dick cheney was interviewed on charlie rose. I do not mean to be disrespectful of the president , but i, as did my coauthor, we feel very strongly that we are headed in the wrong direction. This administration is taking us exactly the opposite direction from which we are to be headed. Cheney says the u. S. Did the right thing when it invaded iraq and he does not want to argue about it. Watch all of dick cheneys interview with charlie rose tonight at 8 00 p. M. And 10 00 p. M. Eastern. Who says money cannot buy happiness . Has data suggesting that the rich are different from us. As hemingway said to fitzgerald, they have more money. According to the conference board, they feel better about the way the economy is going now. The good news for the economy is that confidence is really going up. He highest point since january 2008. Current conditions and expectations, six months down the road, up. People see Business Conditions and hiring improving. Apparently what you see depends on where you sit. Theres a difference and outlook based on how much you make. If you dont make much, you dont think much of the economy. For anyone making less than 35,000 dollars a year, it feels like a recession. If you make less than 50,000, you are below consensus on how things are. If you make more than that, youre much happier. From 50,000 and up, your outlook changes and you see things even better than the ensus. If youre in the richest cohort, you have confidence about as high as it was during the height of the dotcom bubble. They use the term rich kind of loose. Of the country does not make what we make in new york. But spending and Luxury Stores is stronger than at discount stores. It is better to have more. It hashe highest end been good for a lot of companies. Thank you so much, mike mckee. That does it for us on in the loop. On the markets is next, see you tomorrow. The hour, past bloomberg is on the markets. I am alix steel. Surprisingly, stocks are rallying after we saw a decline in futures. Shaking off the last two days of decline and the weak read on gdp, 2. 9 . From stocks to commodities, gold and silver. Gold pared its losses and now down by about 2. Solar in positive territory, paring losses. Asset. Safe haven for more on silver, golds ugly yister, i am joined bu adrian in london. What will be the primary mover in silver, will it move with gold or a recovery in the industrial demand . Industrial demand is likely if you have jewelry and silverware. 2015, you will start seeing mine supply growth flat now. The industrial demand story of silver looks pretty strong. You have a lot of thrifting after silver got up to 50 in 2011, a letter that is done. It looks pretty good and you have seen strong import numbers out of china, india, turkey this month. Looks pretty good on the fundamental side. The move for silver in the last week has been Short Covering on the comex. A huge short position, record high speculative short in silver going into last week, that got washed out of the last couple days. Would you say the Short Covering is reversed and we are done with that sort of trade . Fromu saw the positions march to june from about 4. 69 billion. 4. 6 fulltilt is still pretty low off last years volatility is still pretty low off of last week. Lookng silver doesnt excited. You might see a move to the other side short term. We know how fast silver can prove. You might see a bit of action from options and futures traders. I was covering silver in then a complete washout. Windows investors animate come back from that when does Investor Sentiment come back from that . It doesnt. Etfs, demandk at has been pretty strong. Demand has been manifesting in the options market. Cash buyers are seeing a strong bid on price drops. With etfs, they shed a little money people were taking off the table. A similar story on the bull ion. What performs better this year, gold or silver . Touch call. In line with gold 75 of the time. Goes through it four times faster. If anyone is looking for a fast inflation play, look at silver. Thanks, adrian ash. On the markets again in 30 minutes. Market makers is next stop live from bloomberg headquarters in new york, this is Market Makers. Day. Day maybe the all whole case and industry is waiting on. Baby boomers in critical condition. Living longer just as a doctor shortage kicks in. We will talk to the ceo of one of americas leading medical centers. Oneonone with bill clinton