In talks about a possible takeover. Almosta market value of 23 billion. It is earning season. The first major bank to report is wells fargo. They just read Just Announced their results. Ending a streak of rising earningspershare. It was 1. 01. Another number we are keeping a close eye. 21. 1 billion in revenue for the quarter. That is higher than what analysts were looking for which 20in the neighborhood of billion. That is a number you want to keep an eye on. That revenue number to give you how American Companies are doing in the second quarter. In terms of cost cutting, efficiency ratio is something we are keeping a close eye on. His way of managing its expenses. Wells fargo did not do as well as they had planned. Annis were looking at an improvement. Basically one percentage point. There was no improvement. A number analysts will continue to look for. This is his most Capital Markets look at that efficiency rating to go down more. Wells fargo reports a 500 million room reserve early. That goes down to the bottom line. It is set aside for bad loans it did not come to fruition. They released that money and he goes to the bottom line. They were looking in the ballpark of 400 million. In terms of return on equity, 13. 4 . A return on asset was 1. 74 . This is something we will continue to see. This idea that bank for putting aside less money for bad loans as an olive him. Were at a turning point here. I will continue to look at these numbers. Wells fargo on the bottom line is coming in line with expectations. The stock is trading in the market at 51. 89. Slightly headed higher than yesterday at close. Were going to get bigger bank results next week. Jpmorgan is back on tuesday. Victims of the be the gulf oil spill, 9 11, the financial crisis of all turn to one man to declare what is fair and who should be paid what. General motors is turning to the same person to be the administrator of the ignition the compensation claims revolution facility. This is the uncapped fund of how much they will pay victims for being injured or killed due to those recalled vehicles. I am talking about ken feinberg. Great to see you here this morning. Far. Of the reaction so you and failed the unveiled the plan. The feedback is as you would expect. Cautious optimism. He will wait and see. It sounds pretty good. Until the money starts to flow to alice will claimants, injured and killed, i think everybody is waiting to see. That is appropriate. Absolutely. During the press conference when you are unveiling the details, some of the victims were there. You spoke to some of them. They said but i would expect them to say. Money will never bring back a lost love one. It is a poor substitute for loss. Please be generous. Please help these people who are in terrible shape. Loft lostr loved ones. We are counting on you to do the right thing. What . Do you say in response about i try to have a thighs. Youre right. Money is the substitute. It is the american system. I will do my best. It is one less thing that somebody will have to worry about if they have financial stability. It is emotionally a very difficult. You have to relate as best you can. Put yourselfad to in many peoples shoes. You try and empathize. Sufferingnow they are and you cant get angry or distraught. You cant get emotional about it. You have to try and do the job the best you can. You are excepting accepting claims on august 1. What is been most surprising as you look at how to compensate these victims . The most surprising thing is general support. Lawyers, claimants, family ,embers, elected officials cautious optimism. The other problem we will run into is some of these accidents the place over a decade ago. The car is long gone. There are no pictures. Do we have photos . Do we have insurance files . Do we have medical reports that will help us reconstruct what actually happened . Was the reason that the , had wele occurred reconstruct causeandeffect . That is a challenge. We have to bend over backwards to help these claimants. You mentioned senator blumenthal. He made comments to some of the details you disclose. I want to read one quote from what he said. Gm is to be held accountable for all of the cars the crash. The victim should not be put to the regehr and forced to overcome an obstacle course. The benefit of the doubt has to be given to the victim. I guess the question is how much of a benefit of a doubt . If the airbag in the that list of automobiles is listed right in the protocol. If that automobile was involved in an accident, and the airbag did not deploy, file your claim and we will take a look at it. We will look at the photos of the Police Report and any statements made by witnesses at the time. We look at maintenance. Was the car stalling the week before . This was 10 years ago. How accurate could some these memories being . I think we need documentation. There will be. There will be a Police Report at the time of the accident or an insurance investigator looked at the car. There should be a report in the file. We will work with the plaintiff to try and construct a likely scenario that would allow us to pay generous compensation. I want to add one thing. Intoxicated oras if the driver was speeding or fell asleep or was texting on a cell phone, a relevant. Why is that important . This is not about the driver. If this is about the mobile. Whether or not it had a defective switch. People who resolve their claims years ago with gm not knowing about this, we will allow them to reopen this claim. We will provide additional compensation. We want to do the right thing. They give up their right to sue the company. If they voluntarily decide to take the competent compensation, we will sign that release. What if someone says all i have is my wordofmouth and some statements from family members who knew i owned this car and knew this happened . If those statements were made to the police, if all they have 10 years later is basically there was an accident in an eligible vehicle and we think it was the ignition switch, well know so far. We will work with that claimant. Lets go back together and try to find some documentation that will corroborate your claim. Wordofmouth now 10 years later, that is a problem. There are so many different ways that you can find certain circumstantial evidence that it was the ignition switch. Like a maintenance report or a Police Report. The Steering Wheel was sticking. How youe spoken about are being compensated by general motors. They are paying you for this. That is raised questions about how independent despite your record how do you prove that you are independent . All the words of the world wont satisfy. Is the money going out . Are we being generous . Are we finding claimants that are eligible . The criticism is understandable. It really is. It happened with bp. It is entirely understandable. The only way you overcome that skepticism about true neutrality and independence, what do the statistics show . How generously or they played. Did he pay these claims within 90 days . Do you think that it would make you lean toward more compensatory for the victims because you dont want you want them to know the you are being fair to them . I think we will be generous and fair to the victims. That is the mandate from general motors. General motors so far as far as im concerned has been very cooperative. They have talked to me several times. They want to do the right thing. Uncapped funded. The amount of money that will be paid under this is dependent on how males will claims they are. Do you believe you have uncapped . Capital. I have to give you gm has said that whatever it wets to pay eligible claims, are prepared to do it. The bankruptcy of gm will not be a barrier to claims if there were accidents before our bankruptcy. They are eligible. Gm is doing right thing. Howd you know that you wont get people who may file fraudulent claims . I guarantee you we will get fraudulent claims. Did you get them in other situations . About 4000we had fraudulent claims. You cant allow fraud to infiltrate into a program like this. The credibility of the program wont survive. We have a fraud unit. We will look at things that appear to be fraudulent claims. Anyill vigorously refer apparent fraudulent claim to the authorities. How many people are working for you on this . We will see how many claims come in. Right now there are 25 this getting ready for august 1. 31st you haveer to file a claim. What about for the other funds that you have overseen . Is that a big staff . 450. R 9 11 we had about with bp we had one million lames. We had 4000 people working with us. We had Larry Silverstein on yesterday. You know him very well. He has been rebuilding the World Trade Center site. Legacy and about his his career. Hel he be defined by what has done in rebuilding the World Trade Center . I want to play you one thing of what he said. My timing could not of been worse. You just never know what life is going to present to you. I find myself in this predicament. I made a swift decision. You need to determine what is important. I felt rebuilding the World Trade Center had enormous importance. You worked 33 months on the Compensation Fund pro bono. What did you learn from that that is informed you for a case like this . Your law degree and your legal background is of marginal utility. It is better to have a degree from a divinity school. Or a degree in psychiatry. What i learned from 9 11 and in all of these tragedies is the emotion the individual angst and star oh and grief that never leaves you. Idling a day goes by where you dont think about 9 11 and what it meant to the country and what it meant to these survivors. Do you still hear from . Fortunately people move on. You have to. You may have memories and tear maybe shed, but you cant live in the past. Fortunately, i do not hear from people. I think that is a good thing. If they receive their compensation. They expressed to me the sorrow. Now move on as best you can. Try to still make a life for you and your loved ones. That may be the best evidence that you did your job. It is great to see you this morning. Thank you so much. Speaking about detroit and motor to allowre is a plan detroit to drastically reduce its 18 billion in debt. We will hear from the michigan governor. Politics does or make strange bedfellows. Wait to see the billionaires who lobbied congress on passing immigration. We will be back in a few minutes. Moving and shaking this hour, three of the richest men in the world are criticizing congress for failing to revamp immigration laws. In an article in the New York Times they wrote it is time for the house to draft and pass a our humanitylaces and selfinterest. Nobody wants a replay of the present mess. Surprise toof the hear adelson criticized the gop. They have given 100 million the last election cycle. Will Congress Rise to the challenge of those billionaires . Congress must release emergency funds. Youre watching in the loop. We are on the markets. Market this a wild week. We had ups and downs. Today we are rebounding from some of the major losses yesterday. We started to come back from the lows in the middle of the day yesterday. We are building off of that into the green. It not by much. Much of this will depend on where earnings come in. We are on the markets again in 30 minutes. This is look at our top headlines. Alibaba is gearing up for its United States ipo. It looks like smooth sailing. Company shows no signs it will approve the stock sale. It is a likely day for its debut. China says the iphone is a security threat. Phonesicized the frequently locations functions. The information could Gain Knowledge of state secrets. John boehner is pursuing a lawsuit against president barack obama for abuse of power. The mandate about the health care law. He expresses frustration with the president for seeking 4 billion for emergency aid from illegal immigrants. Beyond that we will wait for further discussion with our members who would make any final decisions. Not signing a blank check to the present. Someone who vehemently disagrees with Speaker Boehner is a democrat from texas. He is a member of the House Committee on Homeland Security. He is of a subcommittee of borders. Thank you so much for joining us. You are right in the hotspot of the immigration debate right now. Boehner says he is not going to give the president a blank check. You say . We are still reviewing the proposal. There are some things that that we like. Most important is that we have more than 1 billion to expand the capacity and quality of care for these unaccompanied children and families who are fleeing file once in guatemala and honduras. Humanitarian crisis. They need the care the United States right now. Presentased to see the expand this. I have some concern that he is trying to speed the process i which we deport these children who could return to situations that are unsafe or deadly. What you expect them to do . I want to make sure that we are following the law. Thehe Congress Passed reauthorization act. It mandates that we take care of these kids who are seeking refuge from places of violence in the home countries. We give them due process. We put their interests bear manager not return them to places that are unsafe and violent. We want to make sure the kids get the proper representation and that we take care of them. If we have to we will reignite them with family here. Is possible they would enter the foster care system. We dont return them into harms way. For those who oppose this, they say do we have the funds . Foris the u. S. Responsible these children . Those are good questions. A better question is who are we as a people . Who were we to the irish in the 19th century . Vietnamese to the and people from all over the world who are fleeing persecution and sought refuge . That is the story of this country. These refugees are no different. They have in some cases a more justified appeal and case to make. We have the responsibility to enter that. Why do the democrats not come to the table with republicans on serious issues of Border Security . The democrats would come on board with Border Security and we would be able to get this is whyreform we need order security. I dont know who is saying that. Theuld ask them to look at Border Security results ask act. Democrats and republicans came together to address Border Security. It is not my ideal bill. That is the essence of consensus. Speaker and for the majority leader to allow us to vote event. We have solved that issue. On thets and republicans Homeland Security committee are ready to move forward. We need to address migration and refugee issues in a thoughtful and humane manner. One of the president doesnt get the 4 billion in emergency aid that . A humanitarian crisis will stretch our resources to the thinnest. Have seen 2000 of these Refugee Families aansported from rio grande to catholic charity. All of that an excellent job. Breaking point. If we dont get more resource to help these families and house them and care for them and give them their day in court and potentially repatriate them or join them a family in the United States, a crisis that we are taking care of is going to be one we will be unable to handle. Nobody wants to see that. This issue,ink that given that your state is being highly contested among democrats, do you think an issue way ofis has a leveraging it . That the republicans are insensitive to a large swath of the population that they need to vote for them . I think it would be a poor strategy politically. It is just not the right thing to do in the midst of this crisis where we are seeing 100,000 children fleeing violence in these countries. These are very young people being murdered and pursued by her secures in gangs and their countries coming for assistance. No one should use this for political gain. From both colleagues sides of the aisle who really do want to do the right thing. At of think republicans are insensitive. I really democrats are overly generous. We want to find the right balance to do the right thing in honor this great tradition in this country of taking care of those who are seeking refuge from situations that are on tolerable in their home communities. Confrontational and worse before we reach consensus. I think that is where were are at. I think we will get there. That is the tradition and history of this country. Thank you so much or join me. While the nation is, in this debate, governors are still tackling how to revive their own cities and local economies. Governor rick snyder has been facing one of the toughest revivals in his own state. He is overseeing detroit to the bankruptcy process. I sat down with him in an exclusive interview to find how he is trying to bring back jobs back. These are not mutually exclusive. They interlink. Think about the innovations you have seen in autos and the other technologies coming into the vehicle. That is a big misconception. Isy think manufacturing different than technology. That is not true. They are intertwined. Go open up a car or talk about the technology that is in them. Young companies are a big contributor. You want young people to come to detroit. Had you convince them to come to the city . Is 98 in downtown detroit. We have run out of housing. New housing instruction is coming online. T there are Great Companies this is a Building Full of startups. This is a great place in terms of career opportunities. The other is quality of life. And exciting urban atmosphere. If you want to make a difference in the world and in your life, come to detroit. It is a place to make things happen. Lets talk about some of the headlines in detroit. There is some reality that we to bring in. The streetlamps. When people think about detroit they think about half the street lamps arent working. It the city is coming out of bankruptcy. It is 18 billion in debt. How do you tell it misses the city that is going to grow . That is old information. It is important to communicate this way. People are often working under threeyearold information. Public safety has improved dramatically. You are seeing the excitement of downtown. The last days of the bankruptcy trial are common. We can get this wrapped up by fall. The city is coming back in terms of energy level. It is exciting. That is why it is great to have you here and give people the real detroit story. When you are bringing in start ups and Technology Companies and entrepreneurs, there are going to be start up companies that require a certain skill set. Do you have that skill set here in the city . Michigan is a strong state. We have some of the finest research universities. Michigan andy of other great universities, we are one of the leaders in the country in that. We have an elite crop of talented people to want to come do business here. That was governor rich snyder of michigan. Detroit could drastically reduce its 18 billion in liabilities. Coming up, another problem for detroit. We are just two days away from the World Cup Final but there is already one big winner. Adidas. We will talk to the companys top soccer executive. The world cup as are the one for one happy. Adidas is sponsoring both teams in the finals. Marcus bauman must be a happy man. We have been following the world cup. We are talking about the Marketing Strategies of these companies. Tell me how you are preparing for the finals on sunday . I think we are preparing and we have a fantastic Brand Showcase on sunday. Teams we were in the stripes in the final. We will have people in our footwear. Very happy. Ramping up and preparing for a special product for the two teams in the finals. We want to make sure that from a Commercial Point of view we are capitalizing on the success of argentina and the german team. Whose jerseys are you printing more of . Something this is where we are right now. We think the chances are equal. Goodve a very replenishment. We are ready and able to catch. P and ramp up one of the stories of this world cup has been the success of some of the south American Teams who had not in on your roster like costa rica. Will you be for the next world cup looking deeper in the 32 teams to sponsor more teams . You sponsored nine top teams this time will you be looking deeper in the rankings next time . A good set uphave in latin america. Argentina is a very good example. They performed very well in the tournament. The word lead by the top scorer of the event. We are looking to maximize our portfolio. What are well set up. Americafolio in latin is a high quality level. The Company Recently confirmed it is going to make its 2 billion. 2 billion euro market. The estimate has you just squeaking over. Is that about where your estimates are . That westimates announced a couple of weeks ago are at the 2 billion euros. We were the first brand in exceeding that barrier. Happy with how all the different sect segments. Than 8 billionre jerseys. The German Federation is the leader. Argentina is doing extremely well. The ball does extremely well or well. We are happy. Ourave definitely achieved challenge that we set for ourselves. That thee mentioned planning for the next world cup happens at the current world cup. You have to really think ahead. What have you learned. What are you going to do . Ifferent the next time around thinking aboutt the next world cup in a couple of weeks. It is too early. We will take some time to review everything that we did in this world cup. Then we will have the next couple of months go into the preparation for 2018 in russia. We are reading reports in the british media that the bidding for Manchester United that nike has bowed out. It is too expensive for nike. Arehe estimates coming out 1. 3 billion for 10 years for sponsorship. Costs like sponsorship are about 1 10 of revenue. Are you worried that the competition is making sponsorships too expensive . Im not worried about that. We made the same comment in british media. There are a lot of rumors flying around these days. People understand that we dont comment on those sorts of things. There are two ways to look at it. We know that nike is out of the bidding. That is a fact that we can talk about. That says one of two things. It says either that the price has gotten too expensive or because theyre backing off that there is some sanity in this market. Both come please are realizing that the days of the any amount of money to get some team are over. I think in general rivalry and competition are challenges and makes everyone better to think of new ways of approaching things. That is why i believe this is very good for the industry and the consumer. Im not concerned that this is reaching level out of proportion. Thank you so much for joining us. Marcus bauman is the adidas Senior Vice President of global football. Brandon has been doing a fantastic job keeping us abreast of the world cup. Coming up, weve got an for you witherview Charlie Evans. Stay in the loop here go the times have changed. Both are now at the center of while the successful republican fundraising efforts. Phil mattingly took a look inside the gop fundraising machine. What has been the secret . There are always different elements. Refine themarties over and over again to reach cycle. Have been ables to seize on right now is the salsa. Extreme frustration with the extrude current president. The 2008sh was not at convention. That is how unpopular he was. They have put a fundraising pitch book on george w. Bush out. They sold out. They just released a new tshirt. It that shirt is doing incredibly well. 90 move over to mitt romney. Way after his the loss to president obama. Romneyate committee has was right bumper stickers. They want him to campaign for people. It is george h. W. Bush. Socks, 2. 3 million. It sounds like whats old is new again. Maybe people are having buyers remorse with president obama. Phil, thank you so much. We will be back in two minutes. Bloomberg television is on the markets. You are looking toward an unchanged mixed open in just about 30 minutes. We are on the markets again in 30 minutes. Forget mcmansions. Now we are supposed to live small. We will talk about the trend of micro living. Were about 30 minutes away from the opening bell. I am betty liu. You are in the loop. Profits just reporting, increased 3. 8 on lower credit costs. Sales have topped the preceding quarters for the First Time Since 2009. Have a mixed scenario for wells fargo. Dont hold your breath. That is the message to investors writing on a fed rate increase in chicago. Rateiting on a fed increase in chicago. Mike joins us now with more. What do Charlie Evans say about Interest Rates . If not anytime soon, when might they go up . To havenk youre going to wait at least a yearandahalf, maybe two years, at least according to evans. Next year, Charlie Evans is going to be a Voting Member of the fomc. At this point, he does not want likete for a rate hike, most people are expecting. He still sees unemployment too high and inflation to low. He said inflation those conditions are going to continue through 2015. Here is what he had to say about timing. Said for quite some time that highly accommodative monetary policies are appropriate. I think that it could well be the case that it should be early 2016 before we left off. Lift off. He wants to see unemployment fall to was low as 5 . Not think wees will see inflation significantly rise. Butheard earlier this week that level could be 6 . A big divide in the fed. We will be talking to a lot of fed officials today about that. What did he say about the fed for the end of quantitative easing . It is an interesting discussion in the fed minutes about what theyre going to do. I asked him if the minutes reflected what the fed strategy is going to be. This is what he had to say. With our largete Balance Sheet, it will be tougher to keep pressure on reserves to tighten that up. We cant pay interest on excess reserves and increase that. We can pay Interest Rates on excess reserves and increase that. Remember, this is at a time where we think bank lending might be receiving to quickly in order to be causing more inflationary pressures. There is probably modest not as much lending right now as we would like. We are having a lot of discussions about that. This point, it looks like they are not going to go back to using the fed funds rate. At least until the get the Balance Sheet down considerably. We will have to learn a whole new language for describing fed rate increases. Think you so much. You can catch more of mikes interview with another fed fedident, the atlanta president , dennis lockhart, 2 00 p. M. Eastern. In europe among markets are in europe, markets are rising. For more on the Market Action overseas, guy johnson is in london. This is not an easy story for those who are not in portugal to understand. Tell us where the confusion is and what examining is happening with santo. What happened is the bank reopened for trading. What the bank has done for today is that it has opened the books up. What a try to do today was make clear that it does not have any solvency problems. There are no issues within the bank itself. As result of which, stocks firmed a little bit. There is still ongoing concern about what is going on in the Portuguese Banking sector. , trying to make clear today, no solvency problems here. We are actually fully functional and we dont have any issues. That is the issue surrounding bes itself. , stabilizing ats little bit. And the indications we might see some more bad news . Not at this point in time. I think the market is waiting for the stress test from the ecb. Those will be up for the back end of the year. Something the market will look at very carefully as we head toward christmas. This chart. Ow you these are quite important. It shows you what is happening. The outflows from european equitiesfalling off a little bit. Yesterdays story accelerated that. The flows into europe have propped the euro up. If we start to see flows out of europe, we could see a very different picture when it comes to currency markets. I know it will certainly be interesting. Wantsspeaker john boehner his day in court with president obama. He has unveiled a plan to sue the president for exceeding his authority. His target, a controversial provision in the health care law. We have much more on this. Heater, this legal fight will be over the employer mandate. Indeed. G time coming the president will have to lawyer up now that the House Speaker has an visually officially unveiled his resolution. The House Speaker and most House Republicans dont like obamacare, they never like to the employer mandate. What they are suing the president over is the failure to enforce the employer mandate that they dont like. Delayed enforcing the employer mandate. What the speaker is saying effectively is we are suing the president because the house has to keep this executive office in check. This is a president who has run a much. Amok. Ever present those executive orders. Most of them do them within the law. What were talking about here are places where the president is basically rewriting law to make it fit his own needs. He could have picked a whole host of other areas in which to file this lawsuit, but the crux of the legal argument will be the employer mandate. The vote in the house will happen the last week in july just as they head off for the august recess. A little more red meat for republicans to campaign on as they head back him. I love reading, newspapers in the morning. The New York Post always has these pictures of obama. How tired theow president is. He was meeting with someone in texas. It feels like the president has really given up. This is all in light of this lawsuit by the republicans. The democrats must be saying, this has nothing to do with the law. This is lambasting the president every of their this is all about lambasting the president , politics. About the the democrats are saying it is a political stunt. It is interesting that the New York Post would put that on its pages so prominently. Is helping the democrats raise money. They have had a very successful run in the house and the president seems a little bit revived as well. His speeches this week in colorado and austin, texas, he was a fired up president obama. Are going to sue me for doing my job . Ok. I mean think about that. Sue me for doing my job. While you dont do your job. We will see how this all plays out. Headed to federal court. It is a legal longshot for speaker banner to be sure. Speaker banner to Speaker Boehner to be sure. That is a lot different than what the paper portrayed him as for sure. [laughter] president obama in Campaign Mode again. Thank you. Moving and shaking this hour, microsoft ceo, a new man memo suggests that organizational changes are needed to turn the company around. According to people familiar with the plan, job cuts are likely. He wrote that his message to employees are clear. Be bold, ambitious, and get behind the board. Microsoft test make products that people love. Coming up, we are live at the National Governors association in nashville. Joins us withnor a look at the hot topics. How is he creating jobs in his state . Zero revenue and one employee. It is incredible employee story. It has seen its shares rise by 26,000 . What is this Company Called cyn k . You are watching in the loop. Lawmakers are uniting behind a plan to replenish mass transit projects. If they fail to act, the fund will run out of money next month. With more is megan hughes. That is right. It is a hot topic here in nashville. Welcome to nashville. Governors from both parties are sitting down to talk about the highway trust fund. Joining me now with more on all of this is jack martel from delaware. Thank you so much governor martel for being with us. Lets start out with the highway trust fund. What does it mean for delaware . I tell you, it is a hot topic here in nashville, too. A number of governors are incredibly frustrated. This is not a great way to build infrastructure. Transportation projects are longterm projects. Delaware, i am very concerned about our ability to continue to invest in roads and bridges. You have looked at ways that the state could try to solve the problem, possibly raising the gas tax. But that was a no go. What else do you have up your sleeve . We did a little increase in the tolls. There is not that much leverage. Huge increaseid a in the gas tax. Maryland increased there as well. For gin you to make some big investments. States are going to have to figure it out as well. Aboutt has been the talk what has been happening in washington . It looks like were getting closer to a shortterm fix. It is a lot of shaking heads and a lot of talk. It is unbelievable force shortterm fixes for longterm problems. Tois a key component economic growth. You just signed a budget. You are about to sign an r d tax credit. Focuses around innovation and Workforce Development. The r d tax credit is one part of that. We really want to focus on Small Businesses to make sure they avail themselves of this opportunity. Over and over again, we hear that the most important thing is access to workforce. We are investing a lot of time in education and Workforce Development to make sure theres studentsion between and the workforce. What is next for you . There is a lot to do in the next couple of years. I dont know. The people of delaware expects me to get everyday desktop everyday get up everyday and do my job. Any president ial candidates you are looking at . Biden, president joe secretary clinton am a we look forward to seeing how the whole thing unfolds. Beau biden may be running for your spot. He has announced that he might be doing that. Thank you so much. Thank you. Bloomberg newss megan hughes. Coming up, we will take you behind the scenes at disney for a look at how the Company Uses Virtual reality to bring its theme parks to life. It is time for the big number. 36,000 . That is how much the shares for cynk technologies have expanded. Callederates a website infobiz. The website has he remembers ofo members and a net loss 1. 5 million. Now, the party is over. Julie hyman has been digging deeper. What is it . We still dont know. It does have that website. It has one employee. It is not clear who that person is. Javier romero is now the ceo. Did not answer, they did not return messages. It has been suspended. This is something a lot of folks were calling for yesterday. The sec does suspend of the stock of their his lack of information about it. If there are questions about the veracity of the information or questions about the trading of the stock, insider trading. It looks at one or all of those may have been satisfied. We will be back with the opening bell. That is next. Welcome back. You are in the loop. I am betty liu. Matt miller has the latest on futures. What a wild week it has been. Really because of the news that the Portuguese Bank or the parent of a Portuguese Bank lifted the debt payment. That kind of roiled the markets yesterday. We hit a record last week. We are already at these incredible heights. Futures are doing absolutely nothing this morning. That is better than falling further. You even see a little green arrow on the s p futures. Dow futures are down in little bit. A morefutures you see significant upside, but yesterday, they saw a significant downside. Technology is hurting. We are watching europe to make sure that portuguese incident. We are on the markets again in 30 minutes. Lets count down to the opening top 10. These are the stories you need to know today. Matt stays in julie hyman joins in. Lets start with number 10. The company that sells industrial and Construction Supplies said that its earnings rose nearly 8 , but revenue fell short. They identified Additional Stores that will close in the second half. Indias secondlargest Company Posted earnings that beat analyst estimates. Infosys maintained its fullyear forecast. Shares of the Athletic Company fall. Procter gamble. Downgraded shares of the Consumer Product maker from outperform a fundamental lack of progress. Joes jeans. Shares of the highend jeans maker that i have never heard of sword in the free market soared in the free market. Oflysts have a price target 1. 70. Youve never heard of joes . It such an expensive talk stock, you think it would have heard of it. Matt, you are out of the loop here. Youve heard of this one, matt. The gap. The retailer posted to the unexpected drop that missed estimates. Sales of the flagship jeans and a Banana Republic both to sell fell 7 . Number four is amazon. The ecommerce giant is getting serious about the drone delivery system. The formally asked the government to test the system. Amazon has been conducting drone test flights in doors and other countries. Number three is rentacenter. They delivered reports well below estimates. Suffering demand and economic rushers. The cigarette maker confirms. Hat it is in talks to buy if the deal is reached, it would create a company with more than 13 billion in annual sales. Wells fargo. 2009,e First Time Since wells did not increase its earnings per share from a prior quarter, ending a 17 corridor winning streak. The results marked the kickoff of Bank Earnings. The market kicks off trading. I want to bring in jeff rosenberg. Despite the recent comments from fed officials that theyre , jeffd about inflation has not changed his views on a slower economic recovery. Is that right . Well, it is right in terms of what we recently heard. We have to look forward a little bit, in terms of what were worried about and what we think might get. The fed remains a pretty dovish bias. We saw some of the complacency. Itnessed yesterday you get risk injected into a complacent market. Veryest rates are susceptible to a complacent shift. Thatt Charlie Evans says he does not see Interest Rates rising anytime soon. I want to play for you what he said about the flak in the economy slack in the economy. I think it is more like the normal rate that we used to think of before the crisis. That is what i take to be the sustainable rate. 6. 1 , we still have quite a ways. Growth that the low wage is indicative of that. Plus the lower inflation. I think there are many signs of continued resource slack. Investors would hear him speak and say that they are not complacent, they are spot on. There are a lot of things they are not telling you in that unemployment rate. It is made up of a couple of different types of unemployment rate. The biggest separation is that between shortterm unemployment and longterm unemployment. An reason we have had such elevated level in that headline rate is because you had a structural break between long and short term unemployment. If you take those folks out and you look at shortterm unemployment, there is no slack. That is where the debate is. Have influence on wages and Price Inflation . This is a large body of research that suggests that the longterm unemployment did not have as much of an impact, so you should take them out. If you do take them out, there is no slack in the labor market. Evans said it might be 2016 before we see Interest Rates rise. What is your prediction . I think that is too late. I can the fed waited till 2016 would be too far behind the curve. The market has it sooner than that. Liftnk we will see the fed off well before 2016. The real debate is whether it will move too much further into 2015 for more the market has it ,ight now, mid to late 2015 into the beginning of 2015. What the data has been showing you is that the economy and labor markets are recovering. The piece we are missing right here is Wage Inflation. We saw some Wage Inflation it is a what liking indicator ging indicator. If you get that, you will be moving up interestrate expectations into 2015 and we are not talking about 2016 at all. Thank you. , we will take you to the ceo of an Online National Real Estate Brokerage on shrinking apartment sizes. Why the millennials are living big by living small. They are ambassadors to the rest of the world. Meet disneys imagineers. Stay in the loop. Todays home buyers are willing to give up their mansion and willing to live a lot smaller. Apartments are 18 smaller and San Francisco and seattle than they were 10 years ago. 15 inave declined boston, 11 in austin. And about 7 in atlanta. Like to bring in somebody who knows a little bit about the Housing Market and this trend. Glenn kalman provides real estate search and Brokerage Services across the country. A show about tiny living. Tiny houses that are cropping up all over this country. What is behind this trend . It is the rebirth of the American City during the bust. Now that the economy has recovered, they have discovered that they like it in the city. Youre seeing all these young people coming to the city, there is no room for them, so were building smaller and smaller apartments and theyre willing to pay for that. Because they are cheaper, too. Are me, per squarefoot, they cheaper than some of the mcmansions we have gotten used to . They have been in the past, because they are changing. Rents are rising very fast. Rents appreciated faster last year. It is really changing the dynamics. What has remained the same as are wary ofmericans the real estate market. People who came of age during the bust saw prices go up and then down. They are not so sure they want to buy a house. That has sent the numbers plummeting. 40 40 5 of homebuyers being first home buyers. Looking at pictures of tiny, the micro houses that we are seeing. That is a little bit of a different story. People who park a micro houses on parking lots. What you are talking about are the tiny and tinier apartments and the rents rising for the millennials who are going to the urban cities, going to cities for that. Are you finding that small living is affecting property prices . Is it bringing them down . Feet isrs per square going up. Lesse are renting expensive properties, but they are paying more per square foot because developers are adding amenities. You will come into a fairly small lot downtown or near downtown and then add more units. To get the same amount of money out of the building that you would from a larger development, they just add a lot of frills. You can live small, but you can spend your money on other things. You can live well. Thank you so much. From small living to living , the in new York City Hudson Yards project. The massive sprawling residential and housing complex that will redefine new york city living. He wants you to live large. He recently took me on a tour of the massive site. It is about working your youts and making sure provide for the latest needs the tenant has. We are building millions and millions of feet of new space. It is about creating stateoftheart space with all of the backup power that tenants want. Joins me on monday to talk about hudson yards. Disney theme parks are one of the biggest businesses in the companys entertainment empire. They will be even more important when a new resort opens in shanghai next year. Disney leans on a group of employees called the imagineeers. Jon erlichman went to imagine ering headquarters in burbank. Hidden in this building, you will find a very virtual room. This is the virtual reality. This is pretty cool. Disney calls this the digital immersive show room. A place where models park and resort attractions before they break ground. We have looked at knife placement, preparation placement. We would like to move that cabinet over here. We can pick those elements up and move them in a digital picture. The dish was created by disneys imagineers. Of artists,p architects, and others who bring disneys parks to life. In a fantasyland expansion in orlando. Disneys parks and resorts generated more than phil 14 billion in revenue last year. The empire includes 11 parks. 46 resort hotels, for cruise ships. Four cruise ships. The best way to show you how this works is to put it on your head and take it for a spin. Inside the dish, sensors on this bowler hat pick up your online to jump into ale 3d version of the park. What are you able to do now that you could not do before . We would have to make it out of foam and little models. Now, in this environment, it is completely immersive. Parkgoers may spot the imagineers work on the face of the dwarves. What you are seeing is mapping. We take a 3d file and we animate the face so that it maps to a projected form. The innovative thinking has led to more than 100 patents. As more brands come in to the did disney fold, more opportunities have opened up. With our partnering friends at lucasfilm, we are partnering with her friends at marvel. John joins me now with more. Is aboutof this staying ahead of the competition . It is a huge deal. When we all go to the theme parks, we are repeat visitors. Thats a disney is obviously interested in. You have rival comcast didios, harry potter expansion. Studios, you are doing the harry potter expansion. They spend a lot of time and money, the have a lot of road until they get there. Does this dish get used by anybody else other than disney . It is so cool. It is so crazy. The answer is yes. Imagineers are part of the r d team of disney. A lot of people will come in. They will say, this is pretty cool. The word will spread. Our understanding is that film directors have had some interest in hanging out in the dish. They are now building more dishes so that there can be between the team in the headquarters in the park in orlando, and they can do it with the glasses and get real fancy. Did you get busy . . Dizzy it was weird. [laughter] you should come down. I would love to. Thank you, jon erlichman. They couldople wish invest like warren buffett. When chinese billionaire seems to be doing a pretty good job of emulating the billionaire. Stay in the loop. The chinese billionaire who buys like buffett. He tells Bloomberg Businessweek he wants to buy a company that target posture and is rising middle class. Risingtargets chinas middle class. He buys Insurance Companies to get the longterm funding to invest in the highgrowth firms. What we have all been waiting for this weekend. Germany against argentina. The world cup championship match. The two teams on field performance is similar to the economic performance. Hans nichols is in berlin with more. Hans, ok, what are the teams economies tell us, do they tell us anything about how they will play on sunday . We havent quite used our model for predictive futures yet. Here is what we took a look at. The overall scoring capacity and compared it to their gdp per capita. Take a look at these numbers. In have low gdp per capita argentina. Around 14,000. Germany, 40 5000. Look at the goal differential. 1. 33two point 833. It holds there. Labor productivity in the muchorce in argentina is lower at around 13. 8. It is 57. 6 in germany. We compared the two shots versus shots on goal. Percentage of shots on goal. They are on target. For argentina, much lower. Finally, here is a bit of a shocker. Germany actually has more team foul. 7161. Higher because argentina has been wiped out a couple of times with a variety of defaults. That does not quite old. We will see if it holds, if it is predictive. We will see if we have any other numbers we can crunch for you later. So much. You hans nichols, our chief international correspondent. That does it for today on in the loop. On monday, i take you on an massiveour of the hudson yards project in the heart of manhattan. The Largest Development site in manhattan, in the u. S. Moree going to have much from jeff blau and all of his projects on monday. Inin the loop turco the loop. It is 56 past the hour. Bloomberg television is on the markets. Im matt miller. 30 minutes into trading. Lets get you caught up on where stocks are headed. The week is going to be a losing week. It looks like the s p and the dow jones are down about 0. 2 . The nasdaq which lost the most yesterday is gaining, i could suppose you say that. But lets say unchanged. Tec is not the focus today. Wells fargo kicks off Bank Earnings today. The largest u. S. Mortgage lender reported a 4 rise. Allison Williams Joins me. Regional u. S. Banking businesses. What are you looking for . The positive thing is that revenue came in in line to a little bit better. One of the key things is that the mortgage banking business is possibly stabilizing. Approximately 7 . Some stabilization in that business is going to be helpful. Erik schatzker and i spoke yesterday. It looks like that business which has been hurting is ready to turn around. His deity that the fed could possibly raise rates at some point in our lives going to be a catalyst for that . Rates isd raising crucial to the biggest part of all bank revenue in the United States and that is net interest income. They still are in the majority of the revenue from interest income. Would you really need is not loan rates to go up, it is sure rates to go up and that is going to be a help. I always see it as kind of a stick rather than a carrot, as far as mortgages are concerned. If i think theyre going to rees rates raise rates, i want to refi now. What are we looking at for the rest of the big banks . Ou say people are worried trailing earnings are bad, but there hopefully will get kind of outlook for the future. For the rest of the big banks, one of the big focuses is going to be trading revenues. Tradingctation for revenue has been worse throughout the quarter and that is really due to volatility and volume. To your point about rates, disraeli the low yields that are killing ash it is really the low yields that are killing volatility. Citigroup reports on monday. I think it is going to be a little bit of a barometer. Investors are really going to be focusing on is how much of this is cyclical and how much is structural. We talked about the low volatility. To the extent that things are cyclical, we know that we can wait things out. To the extent that structural issues are a much bigger problem. Thank you so much for your insight. We are on the markets in 30 minutes. Market makers is up next. Stay with us here on bloomberg television. Live from bloomberg Head Quarters in new york, this is market makers. Time for the fed to raise rates . Youll hear from one of the Central Banks key policymakers the philly fed president in a bloomberg exclusive. The sec halts trading the. Ec halts trading we go behind closed doors with disneys term theme park wizards. Welcome to market makers, i am Erik Schatzker and scarlet fu is here. Its appropriate given that its the beginning of Bank Earnings season and we both like to cover the banks. We will get to wells fargo in a moment
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