They say there is no evidence they stole debit card pins. A dutch investigation points to a belief that the Malaysian Airline plane was shot down by a missile over ukraine. The u. S. Has said prorussian rebels probably down to the airplane this summer. Listen up, ladies. Goingchoo is close to public. Theyre seeking a valuation of about 1 billion. You can buy a lot of shoes with that money. They areack to apple, expected to unveil the next generation of iphones, heating up the battle for the smartphone market. We have talked about this the last several days. Cory johnson is at apples home. Lay this out for us. Apple is trying to regain some lost ground in the smartphone market. That is fair. They have had a successful business, but a market in 2007, a market that apple stormed into and dominate, that is not the case anymore in terms of global competition or the smartphone business. Samsung has eclipsed apple. It is possible in revenue as well, samsung is outpacing apple. Apple is looking to revive some of the market share gains. Ann you look at it from operating systems standpoint, the galaxy phones, as well as other phones using the android operating system, there are a lot more people using smart phones with Google SoftwareOriented Software than apple ios. They want to keep the profits and gain some market share. We have not seen these kind withaks as we have seen apple. We know more than we ever did, especially under the steve jobs era, about what is going to be released. What is the deal there . We will find out what we dont know today, to a large degree. For all of the marketshare losses in the android success, there has been tremendous growth inthe apple product line terms of any of the things that they sell, with the exception of the ipod. We have seen them sell more units, more phones, billions of dollars. The iphone is the most successful Consumer Electronics product ever. It has made more money than anything else. They have sold more units since the first iphone released in 2007. Leaks ahead. We will watch you, cory, and your teammates when the announcement is made. Make sure to watch him and his team for the special event at 1 00 p. M. Eastern time, right here on bloomberg television. Salest got the dismal results coming out from mcdonalds. Global cells global sales down. The chinese supplier issue, that have been hurting other fast food chains, it will hurt their earnings by . 15 in the quarter. I want to bring in julie hyman. You have been going for some of these numbers. They are terrible. Sales are down 2. 8 . Affected in part by supply issues. A lot of Food Companies generally in china, concerns about the supply of meat to various firms. That affected the japanese sales as well. The Chinese Company also provides a lot of stuff to japan. In europe, sales were 7 10 of 1 . Strong sales in the u. K. , but that is offset by what is going on in russia. Russia has shut down the mcdonalds they are and they are reviewing if they will shut down 100 more. At least . 15 is what we will see coming off in this quarter. What is tied to what is going on in asia. This is largely out of the ceos control. Don thompson has not been on the job that long. He was appointed in the summer of 2012. Timinghave had the worst because he joined right when people were talking about the whole obesity debate. Also, chipotle started to gain some ground. You had the issue of minimum wage and that protest beginning. Adding on all of these other issues going on overseas. If you look at what u. S. Consumers want, you are talking about a trend like knowing where your food is sourced. Customization. Both of those trends chipotle has capitalized on. It is seeing growth to match. If you look at demographic attraction to mcdonalds, those going once monthly to mcdonalds, generation z, they are looking at people 19 to 21. The young people are not going. The people who are now having children are not taking them. That is not happening to the same extent. To your point, when you talk , some of larger trends this is that of Don Thompsons control. Appeal,also the kid measured in the eyes of parents, chickfila past mcdonalds for the first time in 25 years. Remember the happy meal mascot fiasco a few months ago . They are having a hard time connecting to the very young. Part of it is there are so many other good burger choices. A mcdonalds is not the only game in town. , a list of 21 burger chains, rmb mcdonalds rank the last. Number two. As five guys, number three. Even if mcdonalds is more competitive on convenience, you have talked a lot about the bloating of the menu. Toe of the analysts i spoke spoke of a return to mcdonalds roots. Theaid if you looked at menu board, there would be maybe 20 items on it. Maybe they need to parrot back a little bit. It back a little bit. Thank you. That is not all we have for mcdonalds. I want you to catch my new special on mcdonalds, beyond the golden arches inside mcdonalds. Moving on to movers and shakers. Eric schmidt is speaking at a hearing. A European Union told google to remove certain information from search results on request. The rightto balance amount of information versus the right to privacy. Google plans a hearing in seven cities. They are the selfserving attempt to guide a debate that belongs in the court. Staying in europe, scotland is nearing a vote to decide whether was separate from the u. K. The polls show that the vote could go either way. For more on this decision, and add words joins us from london. David cameron says he is going to be heading to scotland to make the case to stay with the british. We have had the policy initiative. The fight back has started. Last night, gordon brown came out with a new policy called the new scotland act. Details of further devolution to the Scottish Government. Power to get further collect more taxes themselves, locally. Today, the comments you are referring to, a little bit more of an emotional connection. They are trying to make that between the better code the Better Together campaign. We are seeing david cameron, ed miller band, they are all planning to be in scotland tomorrow. Some of them are calling for the Scottish Flag to be flown publicly in the rest of the u. K. As a plea to scotland not too late. What happened on september 18 . Ets say they vote to break up what will happen then . That is the day we get these though. It will come late that night or early in the morning. Going to change on that day. Part of will still be the u. K. , but they will have expressed their wish to leave. Has set out a timetable and there will be a negotiation period between the Scottish Government and westminster, where the u. K. Government said. All of those negotiations will have to take place and Scottish Independence day would it be late in march, 2016. We need to have the vote first. Those tape place on september 18. That is next thursday. Thank you. Coming up, members of congress threatening to crack down on companies who want to escape the u. S. Tax system. We will talk to harvey golub. The screen on the new iphone may be tougher to break. That is good news. We will show you something even harder than the famed gorilla glass. Theack lew reinforced stance on tax and version, the strategy that allows u. S. Companies to acquire overseas companies and take advantage of the lower tax rate. This allows corporations to avoid civic responsibilities while benefiting from everything that makes america the best place in the world to do business. This may be legal, but it is wrong. Our laws should change. Our laws should change. Our guest is harvey golomb. Now, he is the chairman of miller, buck fire, and harvey. What did you make of what jack lew just said . That we need to keep the companies at home and we need to change the law to make sure they do. We should change the law to attract more companies to the United States. They have the most arcane Corporate Tax scheme in the world. It has the highest tax rates in the world for corporations. It has territorial tax systems. Pay taxes ine to the United States for money they earn in germany. The idea that companies would act in a way to maximize their taxes paid is ridiculous. Thes are crossed corporation, just like any other costs. Corporations manage their field so they pay the minimum amount of taxes. About this whole idea. You are running these companies, but it rubs people the wrong way. It is unpatriotic. You should stay within your own country, support your own employees, support your country if you can afford to do it. Is not a question of what to afford. It is a question of what maximizes the companys business. If i am in new york and paste a pet estate taxes in New York Corporation to texas, why would new york say that is unpatriotic commie start why arepany and your, you moving out of new york . Topanies operate in a way maximize their business. Notw should focus on building a wall. That will prevent more companies from coming here. He should argue for a change in the tax laws and structures of corp. Rations to make them more attractive to be here. Ower the tax rates i would lower than 20. I know you would. It is not possible. It is possible. It is not politically viable. Of that is true. You would eliminate a whole industry of tax avoiders. You would make the United States attractive. Are a german company, maybe you need to be in the ad states where the tax rates are lower. What is realistic . Should have zero tax rates, but what is realistic . Aboutporations now pay 170 5 billion a year in Corporate Taxes. Out to about a third of corporate income. There are a lot of ways to avoid Corporate Taxes. You can have a company and have the money go to its shareholders. You could lower the rates and eliminate all of the deductions, make the tax code consistent with cap accounting and have with gap accounting and have everyone pay a percentage of their earnings. Why should a u. S. Company pay on money earned that is why you have money trapped overseas, not being repatriated here in the u. S. If you are in new york and decided to move to texas, who will say anything to you . You would not move from new york because new york is where most of the talent is. Strategically, that would not be the smart move to make. It rubs people the wrong way that companies are doing this, not for strategic reasons, but to avoid paying higher taxes. It will operate the companies from the u. S. , so it is like they are getting a freebie. They are doing this in order to reduce cost. Competitive more with other companies that have a lower cost structure. If you are an English Company, you pay taxes at a lower rate than that the United States. The English Company is at a competitive this advanced globally against the u. S. Company. The u. S. Is acting in a way that makes them more competitive around the world. Much more. It has been a wild since we have seen harvey. Taxes, andout overall of the tax code could pay for infrastructure improvements. Tune in today as jack lew and inhony foxx make their case a joint interview at 4 00 p. M. Eastern time today. Coming up, foul play. It can be a business to go to a majorleague ace ballgame these days. How risky . We have some numbers ahead. You are watching in the loop. We are streaming on your phone and at bloomberg. Com. Heres a look at the top headlines. Formal portfolio manager, he has been sentenced to nine years in prison in the most lucrative Insider Trading scheme ever. Martoma was accused of using illegal tips to make profits. England governor, mark carney, says they may raise the Interest Rate by next spring. Rates are at a record low. Said it has asked beaded has exceeded all expectations. Another blow in atlantic city. Trump entertainment resorts has filed for bankruptcy again. It was founded by donald trump. In atlanticcasinos city. We get to our next segment, i want to make a correction. Was fired. Rk it was a mutual stepping down. Bloomberg television is on the markets. Equity futures are slightly higher. You want to watch some stocks in particular. Mcdonalds coming out with some dismal sales results. Global sales down 3. 7 , much worse than expected. We are on the markets again in 30 minutes. Economyure of the u. S. To create as many jobs in august as economist expected or close to the level of the last few months is adding fuel to the argument that the recovery is too weak. We got the white house reaction from the chairman of the council of economic advisers following the report. Last three at the months, we averaged 2007000 jobs a month. We have extended the largest private sector job straight. We have added 10 million jobs since we started adding jobs. The Unemployment Rate is coming down faster than anyone expected. There is more we need to do. Theres more the president wants to do, but lets not get excited or unexcited for any given month. Clicks they want to throw out the last months reports. I want to bring back harvey golub. He is a prominent republican voice. , the sameear that say t, you the economy is improving. It is not even an interesting point. Since the end of world war ii, in 90 of the years, the economy improved. Does not improvement mean anything. We have had 11 recessions and 11 recoveries. The question is, how does this recovery and job growth compared to others . Since the end of world war ii, the average growth in employment during that period has been 11. 7 . It has been five years since the start of the recovery. This recovery is 6. 2. In 6. 2 generated 10 million jobs. If it was 11. 7, it would have been 20 million jobs. 9 million jobs lower than average. This recovery is not even mediocre. Thehanging fruit accomplishments they have made are the low hanging fruit. They have made no accomplishments. We have had gross, but when it is a 10th of 11 worse in job growth. Off. Ople are better look at the stock market. At the corporate activity. Ceos are more competent. They are engaging in mergers and acquisition. You see business deals being done. Some people would say we have cheap money, the feds are, native, this is a great time for some people. The fed being accommodative and pumping money into the economy has been good for the stock market. People like me who have substantial investments, we have done well. If you look at single women, the middle class, africanamerican, hispanics, they are worse off. Their jobs are not there. They are not able to support their families. Cost ofook at the having low Interest Rates, all the people who have saved money all of their lives are now getting nothing on their interest. They have to go out on the risk curve. The idea that this government has decided it will help people and hurt my nextdoor neighbor who is retired and living on a fixed income is not fair. You have aoned prominent republican voice. You and i talked during the election. Is there a missed opportunity by the gop . Couldoint you are making be made by the opposite side. They missed the boat on this. We should be here making the case to the women and minorities and the poor who have not benefited. There is clearly an opportunity to demonstrate to people how conservative policy is for Economic Growth. Allowing the economy to boom would be helpful to individuals. What we would rather talk about is how a growing economy would help an individual person, how a woman trying to raise children, not making much money, would be helped by an economy that was growing. Who is a good messenger for that . There are a number of good messengers. An entirelyhas internalized understanding of how conservative values will help the economy. I think that is true of most republicans. How toue they have this express that point of view, how to explain it to people, and a way that is persuasive to people. Through the financial crisis, you had clash with Bob Benmosche a. He stayed on. We did this interview with him in croatia. We look back at his time at the company. I want to play for you one part of our interview on what he said about the fight, the clash over the bonus payments. Want to read one quote. We are at war. War over the bonuses. Why werent they at war at the hundred Million Dollars that was spent to between four firms. I will not name them, but one was an accounting firm, one was a lawyer, another was an Asset Management business and the other one was in consulting. In 2009, paid out of aigs shareholder coffers, 100 million, but watch the people of aig work. See if theyre doing the right thing. Spenttever he said, we one million watching people that you pay wires 65,000 to that work in the business they earned. What do you think when you see that . I think he is right. And ie were brought in became chairman of aig, aig had a multitrillion Dollar Financial portfolio that it had to wind it down. Wasgovernment interest trying to wind it down as quickly as possible. The market knew that. The pricing of the securities were not good. By the speed that the government want us to apply, it would cost between 10 and 15 billion. Bob and i wanted to slow down and disband the portfolio. We needed people to do that. Sensible people to do that. Save 10 billion, i do not knowabout that. Steppedou glad you aside . Absolutely. They were delightful people to work with. To comed we were able up with a strategy that allowed aig to survive. I think bob has done an excellent job of being ceo. Harvey, great to see this morning. Thank you so much. Ofvey golub, the chairman buckfire. We will show you the evolution of one of the most popular products in history. We will be back in two minutes. We have the documentation of the first seven years of the iphone phenomenon. Rick say can be traced back to the ipod. The earbuds became icons. The sales were bigger than the macintosh. Apple was a transformed company. When asked if the next device might be a phone, steve jobs said selling anything through carriers was too difficult. He said we are not good at going through orifices to get to the user. It is a hard problem. It was a ruse. They were working on a device that was a phone. In 2007, they announced the iphone. And we are calling it iphone. 2. 5 billion had 2. 5 billion in revenue. Up towatching them get 10 million in iphone revenues, samsung dipped into the fray with the galaxy. Market shareungs had outstripped apples. 343 billion and it is a global phenomenon. Now, it is sold in 143 countries and is the single most Popular ConsumerElectronic Device great and china, sales have doubled in two years. The industry created around the iphone is enormous. Apple will likely sell more of the new iphone in its first weekend than the first iphone sold in its first year. And an global phenomenon enormously popular device. Brings back memories. One of the talked about features a substance that is harder than gorilla glass, which apple has used in past phones. Alix steel has been hunting around for details. What is going to protect my iphone when i drop it in the toilet. You will have to get a case for that. The idea here is that sapphire is stronger than glass. About a Synthetic Material made with aluminum into a furnace and heated to over 2000 degrees celsius. Is what makes us so resistant. You can wind up scratching it, it will be scratch proof. The idea is the less you scratch it, the more resistant the overall cover will be. Once it breaks, it shatters. It does not just break and that is a risk. Looking ateen patents to help strengthen sapphire as is. How much is a cost . How much would you pay for a proof screen. I have heard estimates dollars and 1400. That will be passed on to consumers. 16 in the short term and once getson gets that are a better, i could go down the 13. There are a lot of problems with production. Gtle has been working with advanced technologies and they have about 6. 3 million covered per quarter. Apple sells 35 million phones per quarter. A lot of analysts say maybe there will be an upgrade feature. Where else is it used . Everywhere from the Blue Christmas lights at christmas has sapphire and and. Has sapphire in it. Led is a popular use. Silicon on sapphire, circuits on sapphire and they are in anything you use. Growth in mobile phones and the covers that cover them. They are already using the camera and the fingerprint sensor. Alix steel on sapphire glass. Moving to tractors. I dont know where that transition comes in. Farm equipment being squeezed by falling crop prices. We will be back in two minutes. A falling crop prices could spell trouble for the american farmer. Had a 14 tal income decline from last year. Manufacturers are feeling the heat. To speak about all of this is the is a ceo, martin richenhagen. These are tough times, given the drop in crop prices. Are you expected to cut costs even more . We plan to improve our margins. Will this look like the i dontr more quik . Think it will last a long second. Even the more modest and lower Commodity Prices are rocksolidly on a level. Farm income is down by more than 10 in the u. S. Financed. E well they are very profitable because out of the harvest this year, it is excellent. You get less for your soybeans. It is not as bad and i do not think it will last forever. As a ceo, you have to run the company efficiently and cut costs where you need to. To be clear, are you looking, when you cut costs, are you looking at further layoffs and ramping back reduction . What are you looking at doing . At efficiency, productivity, excellence in purchasing, things like that. If the demand drops, we have to adjust the workforce. That is normal exercise. Toried to do everything avoid it. I think it is not a longterm downturn and the market seems to pause a little bit. When do you think it will bottom out . We are in the planning process. I would not be surprised if next difficult and i think we see improvements from there. Has been the Market Leader agco has been the Market Leader. The brazilian economy is not great. What are you doing to whether the International Issues . Sugar prices are down. Everybody is expecting they might recover soon because in brazil, most of the sugar is used for ethanol. 50 of the fuel consumed in cars is renewable from sugarcane. Businessn important for them. Overall, the president is not seem to be as lucky. What the government in brazil understands is how important farming for them is. Therefore, i do not expect any change. When it comes to russia, we have russia. Artner in problems expect major over there. Also just started some years ago. That means our activity is not really on the radar screen now. Se it is small right we wanted to grow. Given this decline we have seen in crop prices and how it has affected the market, do you think farmers have become spooked for this year and that will affect planting for next year . I do not think so. I do not think they are spooked. They are used to it from the past. And offerdivision farm equipment, grain elevators, ingrained logistic equipment. This is an advantage because farmers are more careful and they are trying to sell their crops at the right moment in time. Appetite toave the invest in storage. They need to invest because they off writeht offs. Thank you, martin rish and hagan. Coming up, high fashion meets in something that can only be made in italy. We will tell you more in a moment. It is 56 minutes past the hour, which means we are on the markets. And equity futures mixed heading into the opening bell. Shares you will want to watch apple as they unveil their new lineup of iphones and dan iwatch. In 30 on the markets minutes. We are expected to see the new iphone and the digital wallet. We will dig further into apple day. Still to come, alibaba hits the road. A big sale job. We are about 30 minutes away from the opening bell. You are in the loop. I am betty liu. Futures indicate stocks will be little changed at the open. The s p is coming off of a slight loss. Apple will roll out a wearable watch and a mobile wallet, perhaps. Mcdonalds cannot seem to get a break sales fell for the fourth month in a row and the sales were the worst in over a decade. It seems like investors and consumers not loving it these days at mcdonalds. Is underwayroadshow and investors lined up in new york city to hear the Chinese Companys ipo sales pitch. Ceo jack ma detailing his insion before a meeting boston. It will be a 10day grilling roadshow. We are joined by david kirkpatrick, a bloomberg contributing editor, and the author of the facebook effect. It looks good, david, that ali baba has 800 people lined up, spilling out into the elevators just to have an audience with jack ma. Every is no question interest is high in alibaba for good reason. It is one of the great Internet Companies of the planet which until quite recently operated under the radar. All of a sudden it is bursting on the scene, as it deserves to. Outlined his vision and what he sees for the company. Jack, outlined his vision and what he sees for the company. He still sees a lot in china. Opportunity ishe gigantic in china. If you think about Eastern Europe with cell phones to my they did not have wired lines. They leapfrog cell phones. That is happening in china with the internet. System for primitive commerce, transportation, logistics, relative to the scale of the country. Boom that is a huge everyone is jumping on across the country. A company like alibaba, which dominate ecommerce in china, even though they have customers, they have hundreds of millions already to go. Baba, guyst just ali nt and others, they are trying to build Major Companies where they are binary thing from media assets to film studios, or sports assets, whatever is out there to buy gas stations. Gas stations. They are teaming up to buy a portion of the gas stations and Convenience Stores of petro china. Given the scale of the turn toward ecommerce, the skill of influence these companies have and the scale of resources they have in the support they have from the government, which is critical in china, they have begun to feel they have a license to almost literally do anything. Do anything and buy anything. Which could be dangerous on the other hand, they are becoming the Signature Company of the entire chinese economy. Their brands have value. Alibaba boughtn half of this Football Team they will brand it with one of their own brands. It sounds like Warren Buffett, does it not . Warren buffett is always the most methodical analyst. That is true. I think there might be some haste in these deals. David, hang on. There might be some other big stories i want to tell you about. It has to do with our mover and shaker this hour amazon ceo jeff bezos. Six weeks after amazon launched numbermartphone the hoopla . Forcan now buy the phone . 99, less than one dollar if you sign a contract with at t and they are throwing in a membership to the prime delivery. Jeff bezos is not sane smartphones amazon has told. David, can you believe it . Why dont they just give it away . I believe it in the sense that we do not think of amazon as the company we by our phone from. It is interesting in the context of the apple announcement today where they expect to do something with caymans amazon thought they would be able to get into something outside of the ecosystem with a phone that they control. They are smart people. Eventually they might be able to do it. The kindle has not taken off instantly, but it has become a major feature in the landscape. What was it about the fire that did not work . I think it was overly ambitious. The things that it did that were really cool were not think people were saying i need that i really want that now. If youre going for quality in a phone, the iphone is still the one to beat. David, stay with me. David kirkpatrick is staying with us on the iphone and all the features coming up. Stay in the loop. Well investors and consumers are all on iwatch this morning. It might be apples launch into the wearable space, but they will have to compete with existing players including the sony smart watch and the Samson Samsung gear. Join us is a smart watch consumer gregg harper himself. He has all of them on at one time. He is a major tech collector and one of the first people to try out new products and give feedback to several companies and fellow techy david kirkpatrick. You guys were college buddies. We have known each other for a long time and we do not want to say how long. [laughter] like inspector gadget with your briefcase full of gadgets. The point i was trying to make is the scene that was there before apple came out with the ipod there was samsung, a ll, sony. Ne, dek this was the first device who made that . It was made by compaq computer. If you go to the hp headquarters, you will see this and they will say that they invented the mp3 player. The difference with apple is the ecosystem. This is the very first ipod. It still works. It is a beautiful little device. It still works. It is. Yeah. What they did was not just the device it was the ecosystem, the itunes store, the deal with the labels, the . 99 deal. The same thing is about to happen with the smart watch. Take a look. This is only my collection, only what i could fit. Pebble. Op seller is the this is the original pebble. Then you have the same some. The samsung. This is readable. I am wearing another one. They say the apple will have another curved screen. This is the sony. The problem with the samsung is they required you to have a samsung phone. The new ones do not have that. This is the lg. Intel bought that one. I do not know about you guys, but they look pretty similar to me. They sure do. What will apple have to do that is different . The same thing they did with music, becoming ecosystem, bring people together to create an ecosystem around it. And it is expected they will do that, payments and health, how well that is unclear. To you spoke you spoke tim. They are looking to bring something out that will be totally different and that is the ecosystem they are so good at. Has anyone granting of market share that it would be hard for apple to unseat them . We are talking about a tiny market right now. Not ay market there is space right now. Very few people wear them, and actually a digital watch that has an analog display. [laughter] this, believe it or not, is a wearable for dogs. What does it do . It transmits the dogs health. You know where your dog is. Wreaking havoc. Wreaking havoc, all the rest. , there are a lot of products. Fitbit overwhelmingly dominates measuring your health as it stands today in wearables. It will be interesting to see how fit bit response. Interesting is they have tied in with other companies, other fitness organizations, to try to build an ecosystem, but they are much too small. Apple has the Health Care Software and others. What has to work there . The Payment System you were talking about it earlier. They have two areas one is the health. They can tie in at the mayo clinic. Theyve already done stuff with the announcement they made over the summer at the developers conference. They can tie in information with other medical information. Thee is some hit information that sounds scary to me. It sounds scary. Take about progressive insurance they put a dongle in your car to measure how well you are driving and that populate insurance rates. How do you think they will do something with payments that we want . O not think people wonder walk around saying i cannot pay very well. Credit cards work. You have been to asia you use the cards to get on the train, the subway, all the rest come and you can now even by a car. Those have become ubiquitous. They have been experiencing, as you know, in the apple stores. They have this business where you go in and take a picture of a upc code with your phone and automatically it uploads, registers, and you pay for it. I already tried to get this frictionless payment. With this news about home depot and another credit card incursion by hackers, it would be wonderful if apple could bypass the current systems to increase security in the way that amex and others have put a chip in the card. That is a big question will it increase the security or make us more vulnerable . It will increase it because you will have two parts that you have to have stealing one will not do it. That could be a big deal. Rocks that could be a big deal. But that could be a big deal. It could also that could be a big deal. That could be a big deal. Withuld also be important getting something that you do not know. There was also a pill that has authentication. Im about to do that. Right. [laughter] what would it look like david, you swiping your phone, you swiping your watch . Wallet,i pay i put my and that has been possible for years, but if you steal my wallet, you have my money. If you have my watch, and you have to have a watch, the phone, and a password it is triple edification. Authentication. Because thepensated Credit Card Companies currently, basically, only hold you liable for 50, 100 there is a huge incentive for the consumer to improve their own security. Obviously, if they are worried about Identity Theft even people that were subject to the target or home depot thing to not end up suffering. How much will he be willing to pay more . Companies now if they have to replace 65 million credit cards card Companies Want it. They will subsidize. They will subsidize. This is where apple will say they have, with an ecosystem thomas and look at what built ecosystem, and look at what they built around the ios. Many are creating apps and you can see the same thing in the Payment System. This is a big deal. Apple is under pressure to come up with something that is not a 5s but transformative. Transformative. Samsung has the big tablet, the other phones. It has to be something else. It has to be something else, and it has to be a new category. Quite gregg harper top gregg harper, thank you. You should see his house. You are welcome to come and see because it has grown since the last time. Boy. Thank you, greg, and thank you, and david kirkpatrick. That is not all on apple we have. For full coverage, had to businessweek. Com apple for tweets and plenty of analysis and then at 1 00 p. M. Watch emily chang, cory johnson, and the rest of the bloomberg west coast voting for coverage of the big event at 1 00 p. M. Eastern, 10 00 a. M. Pacific. We will be back. [applause] good morning. And today bloombergs big 1750 how many spectators get hit i foul balls each year at major league is ballgames. That means a fan is getting hit twice every three games, and bloomberg crunched the numbers and found it is more often that that happens then is a hit by pitch. It is pretty minor, but it hurts. A number of children suffered major head injuries from foul balls. Major League Baseball says there is no epidemic of foul ball damage that would warrant any action in the stands. Coming up, highspeed and high fashion we will show you what happens when maserati teams up with an italian designer. First. Bloomberg. Welcome back. You are in the loop. I am betty liu. It is 26 minutes past the hour. Bloomberg tv is on the markets. Here is the latest check on futures in the final moments before the opening bell. We started higher the morning but we now have creeped a little lower as we head toward the open. We are headed for the big apple announcement at 1 00 p. M. , and what that will hold for consumers and apple investors. We are on the markets again in 30 minutes. You as werview for near the opening bell to commemorate its 100th birthday, maserati is teaming up with a fashion house on a limited edition sedan, just 100 unique vehicles will be produced. Each will feature the designers touch inside and out with a price tag of hundred 75,000. Matt miller is with the ceos. He is live from a showroom where the vehicle is on display. Over to you. I love all cars, especially maseratis, but they are out of my reach financially, but im sure a few viewers will be looking to pick them up. You have teamed up to make this car. Tell me, first of all, mr. Zeng a, why did you choose maserati to design question mark you could have chosen any other carmaker, but you chose this design . You couldve chosen any other carmaker, but you chose this. Of course, it is an italian brand, two histories of great italian tradition, great holiday, products, select get them together. China, the United States, germany, brazil, dubai we are here for a great event. Inare going to present a car shanghai, then dubai, then back to milan. You are only making 100. You are looking to sell 75,000 maseratis in total, why so few . There is obviously the anniversary date, but why so few, and i feel like you can charge more than 175,000 . Nice to hear that. Thank you. I would like to add something the partnership was set up for the two companies goes far beyond it is much deeper than a project that led or will lead they are producing the cards right now to a cars right now to a special project and a oneof. This is something that is set up to last. Saye 100, they are lets an appetizer towards what we will work on in the future, and it may be too early to talk but iconcrete projects, guess we will not tell too much if we say that there will be, already, a next step but were going to present in paris. I see. It is kind of a retainer. You could design the alfieri next year. Why not . We challenge the interior. There are no limits to what we can do with natural fiber. Our goal was to do something unique. The safety, the wearability we work for six months and we got what we wanted. We have this toinside there are no limits what italian innovation can do. Who better can do it . That is impressive and i will be excited to take one for a test drive. How do you think this will help you in your attempt to boost and build the brand to a bigger audience . It is not a oneway road. It is both. Interesting process. We have been working together for 15 or 16 months. We are learning together from each other area if you look at our reality from their perspective advice versa, you understand on the one hand side how we share the approach from customers and it is interesting how we see there this is and how they see our business and what can be added. I firmly believe in the longterm durability. You said the first time, silk in a car. Yes here it something hassling not easy to achieve. We cannotulfill even past 10 of our durability for the holes and stuff like this. We worked together and took the challenge and developed together something on the one hand side fulfills our standard and it is pure silk. This is something, for example, together to innovate and go far,d what we have done so one of 100 seems to be already exclusive. If you look to our customers today, the company is already very much aware of it. What the people really want in is one of area card. They want their car. Totally dedicated and absolutely customized. Personalization is the name of the game. We are really the best organized company worldwide. We are a private head company. Thank you so much. I will throw it back to you in new york. The opening bell is happening. I want to bring you one of the most bullish choices on the street, the chief investment officer. He has seen s p going from. 500, if not sooner. Nearly a 25 jump for it from where the s p is training now. The author of a book that is hot on the presses today. He says on the market there is nowhere to go these days but equities. Olivia sterns is joining us as well for the open. Lets start with you. Have been bullish for the past several years. When will you start making the call . I do not know. We are just getting into the second phase. I call it the goldilocks phase but no one is thinking about it that way. An economy is exhilarating, earnings are starting to grow finally. The fed is sort of on hold. Global forces are holding interestrate down anyway. Low rates, and accelerating economy, is in that the argument for why we have had the fiveyear bull run . No. Five years ago come the world was going to end sometime between tomorrow and next week. I was out there telling bill come do not think the world will end. Earningsl about roughly flat in a multiple expanding from 10 times to 15 times, which is where we are now on next years earnings. The next phase will be the Economic Growth phase. Think were just entering but there are a few headwinds out there, for instance europe. Be situation appears to deteriorating. That could be a drag on u. S. Exports and local trade. Too if the fed continues taper. Finally, there is no wage growth. Fundamentalhe strength of the u. S. Economy, the consumer is a bit week. Yes, that is all in front of us. Soft. E being it will not collapse. Agreed it is soft. That is good for us. That means druggie is on the job. They do not want to go back to the recession they were in. Liquidity slowing in the markets where fundamentals are better. As much as mario draghi is he is basically picking up the baton from bernanke and yellen. Europe. Re based in last week, i think druggie took another action on declining Interest Rates and he will come out and i think he is absolutely right. Not want to go into a recession. In france in particular, becoming increasingly unpopular as the french are waking up and realizing this is not the answer. He is facing a revolt. He is trying to implement and make policies work. Yes here it comment basically saying, everybody is too down on what is going on in the u. S. They are not seeing what is clearly good. Globally, i would say there is a lot to be done about. There are really upsetting things on the political side. I came in yesterday from the investment commerce where i saw someone invest in india. What a what modi is doing in s gdp wouldindia quadruple was predicted. You have got a middleclass coming in into a huge country. That will have a huge effect on the world economy. I think it is right to be bullish. The other thing is, what choices do we have . What will we do . Wee returned free risk . Might get inflation but equities is the only safe place to be. Recently soros quadrupled his position. We will come back from the beach or check in with edmonds, where am i, 2 . There is nowhere to go but up. Fundamentals are quite good in the u. S. Right now. A lot of money is on the what an waiting for the moment is not going to happen. Of people worry about financial crisis. That is in relative reason history. Will not happen. That is the key driver of what is going on here and all right. Stephen, thank you for joining us. Staying with me on your new book just out today. An asset manager learns how he must pay by making millions on Insider Trading. More is next. Matthew has nine years behind bars ahead of him for the most lucrative Insider Trading scheme in history. When he worked for steve cohen. He said he could relate to a young guy like mark, as he details in his new book out today, the education of the valued investor. A wanting to be exactly like the character in wall street. Greed is good until he pay more than half 1 million to meet Warren Buffett. Guy, you say Warren Buffett saved you . Absolutely. His time ino do prison. But we live in a culture where we want to his a goat young people rather than think about the environment that create people like mark. If i would have stayed at the first place i work out of business school, i mightve it was a place not dissimilar to willful wall street. I had no clue. I was just greedy and i wanted to get rich fast. Someone offered me the opportunity to do deals right away. School guy. Harvard in order to succeed, i had to take shortcuts, i would probably have to be scarce with the truth, i would have to fine line. Those environs are vortexes. How easy would it have been for you to turn . It was hard, i stayed in a place for far too long. How easy now you are above board but how easy was it at that time to be convinced you had to do that and you had to become a liar . There were always people around me. If they are not actually smoking big cigars, they have the slacker and slow of success. I would start looking at those people and saying, what do i need to do to become like that question mark in order to become like that, without anyone telling me anything, i had to start cutting corners, and start misrepresent things, being a little economical with the truth. And you know, i wanted to have takehome pay, to take my girlfriend out to nice dinners. I wanted to do all of those things. It was a district difficult situation to be in. Came upon Warren Buffett. If i had not been reading the buffett biography at the same time i was at the firm, i might have stayed. But then i had Warren Buffett there and i was like, warren buffet does not cut corners. He is not trying to over play the investments he has. He is not trying to sell orphans and widows taking a shoe shop public. You try to get in contact with him for many years. I was not as forward as some people who offered to work for them directly. But i started going to the meetings. When i started going to the meetings, my life really changed. The first meeting while was while i was still at the snakepit. If an of mine said, why are you working there . It is a snake it. Pit. You get cold in. I do not feel like i am a dumb guy. I feel like im an ethical guide. The important point to realize with mark is, if mark is like me, he is not dumb, and he is an ethical guide. , you putake anybody them in the wrong environment, and brains turn to mush. So eventually, you did meet buffett. You pay 650,000. He paid a good chunk of that in order to have lunch with warren Charity Auction he runs. You came away from that with what . . Buffett is a smart guy. I will never be as smart as he was, but that is ok. A certain way, it released me and i was no longer trying to be Warren Buffett and i had to hang out with People Better than me. He said that many times at lunch. It goes straight back to my original job. I determined that at that point, i would be careful to hang out with people that i respected and admired and that would make me into a better person and request you move from new york to switzerland because you said, i want to just enjoy my life here it is buffett can live in omaha and enjoyed his life, why can i live in switzerland and enjoy mine . He gave me his blessing to do that. That is good. Have you invited him out there . I issued many invitations. He is rather busy. Great to see you. We have seen each other for many years. You have been going 17 years, i believe. The ceo of aquamarines Capital Management and the author of a new book, the education of a value investor. Coming up, kicking off imagery today, what chairman eric schmidt might have to do to please the regulators, some of whom want to break google up here it stand aloof. Google up. Stay in the loop turcotte loop. Time now for the global outlook. We have been focused on apple today. But eric schmidt has been making news in europe. It is all about the right to be forgotten. Hans nichols joins us now from berlin. What is the reason for the roadshow . I imagine he has been getting a lot of heat in europe or the right to be forgotten. Google is taking it on so. Any different fronts in europe on this particular case, it stems from a may decision by European Court of justice that ruled every european has the right to be forgotten. The is happening today is first of april roadshow of town halls, however you want to catch it, where schmidt and others from google have paneled a bunch of experts, including magistrates and important people on human rights law. From googleothers are leading the question and they want to get at the question be when is there a right to forgotten and when does the public have a right to know . The criticism of the panels is that google is basically doing mock trials and clearly putting their thumb on the side of the publics writer know. The public has a right to know when they google something. Remarkable amount of market share in europe, north of 90 . When you look at what happens elsewhere in the states, it is 67 . ,oogle is entrenched in europe as unpopular politically as it may be. Outline exactly what the strategy is here on the roadshow. Look. A very good question. Theyre either trying to get out in front and take a lot of the criticisms, or they are taking their battle to the court of Public Opinion and they want to have a lot of what we would call First Amendment attic advocates, freespeech advocates say the publics right to know to search about people outweighs an individual right not to have some potentially negative material about them. It stems from spain not wanting a bankruptcy case on them. Thank you so much. Our international correspondent. That does it today for in the loop. Tomorrow, we will be talking to the ceo about the nfl and how they are applying supplying food for many in the country. Tom what kind of bumps will they see . It is 56 minutes past the hour. Bloomberg tv is on the markets. We are about 30 minutes into the trading day. Lets get you caught up with where stocks are trading right now. Selling off against roy second day after the s p had its biggest drop in a month. The s p now trading down below 2000. The nasdaq and the dow also lower. If you are looking to put your money outside the u. S. , Goldman Sachs says the Global Equity market is looking pretty attractive. The firm changed its mind about equities raising his threemonth rating to overweight following unexpectedly lowering the rate and pushing the overnight rate further into negative territory. Ourmore, i am joined by Bloomberg News reporter Bloomberg News stoxx reporter. They were worried about the rising bond yields and what the ecb decision does is offset that a little bit. Some that were seeing is lessening the worry that we will see bond yields rise out of a reallocation. Mario draghi plugging the system again with the quiddity should left it all higher. This is surprising. The thing goldman made a very different call three months ago . Yes. They actually downgraded level equities to mutual. They are flipflopping a little bit. This is new information coming out of the ecb. They have this new information and are changing their minds. In theire following wake. We see a lot of strategists change their equity forecast to be more bullish. Is it just because of the ecb . Less people are viewing it as positive, but also Morgan Stanley and wells fargo after yesterday, reports to raise their 12 month u. S. Outlook and they thingis earnings will improve over the next year. The economy is doing very well right now. That is interesting. Over at wells fargo, gino was the lone bear out there. She was our go to when looking outlook. R they put a 12 month out there, looking for a 5 gain in the next 12 months. That is really interesting we have seen that. Now everyone is on board. Everyone is in the same boat and expression equities to depreciate. The reason why mario draghi took action is because of the weakness in the economy. se any u. S. Equity strategist concerned that the deterioration of the economy will drag on the u. S. Economy and usx is . I think that is a concern. That was something that might have been on the forefront of their mind when they had their forecast lower. I think they think these mario inghi measures are a step the right direction and the market will respond accordingly. Pumped up their forecast. The s p 500 year to date up i 8 . 220 500 by 2016. What sort of consensus . Where are we headed question mark less people are more conservative than that. The 12 month forecast ranged from2400 22150 increased 5 to 7. 5 . On average, that is what they are looking at. People are thinking the rate hike the fed has been hinting at might happen a little later in 2015. We are just in a sweet spot right now where the Economic Growth is not so good that they will raise rates immediately, but it is also not bad enough that it will drag equities. Thank you so much. That does it. We will be on the markets again in 30 minutes. Market makers is up next. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. The big moment tim cook has been waiting for. He is unveiling a new iphone, a new payevice, and system. Power players from Warren Buffett to carl icahn. The 50 most influential people in business. Commissioner on a hot sea. The question about the future of roger goodell