Transcripts For BLOOMBERG In The Loop With Betty Liu 20150406

Americas military superiority or its support for israel. President obama i am willing to make the kinds of commitments that would give everybody in the neighborhood, including iran clarity. Israel will be attacked by anything and we stand by them. Matt Israel Passes Prime Minister is not sold. The Prime Minister yahoo says it will lead to a Nuclear Armed. Wall street was closed for trading when disappointing numbers came out. Last month falling far short of estimates and well under 200,000 for the first time in two months. Brady in california but not nearly enough to help the drought. Governor jerry brown tells abc it is not just california passes problem. Jerry brown that will be reflected and show up in other parts of the world. Climate change is not a hope, we are dealing with it, and it is damn serious. Matt the governor passes order does not affect them. There not wasting water on lawns or long showers. A new fast and furious is racing to a box office record, pulling in 146,000 in the weekend. It is the seventh movie in a franchise from universal pictures. A newcomer will be on the biggest stage in College Basketball tonight or wisconsin facing duke for the ncaa championship here the badgers reached the final the hard way knocking out unbeaten kentucky. Duke shooting for his fifth title in 20 years p are it wisconsins taking it all just once way back in 1941. Those are your top headlines this monday. President obama is trying to sell the Iran Nuclear Deal to a Skeptical Congress and iran passes nervous neighbors in the middle east. Peter cook has more. How does the white house feel about the progress made over the weekend . Peter cook they feel good about the arguments they have made so far, the the response they have gotten. The pope signed off here that was encouraged will encouraging. They like iran passes neighbors in the middle east have expressed concerns privately. They have not gone public with their criticism. Even congress, the republican criticism we heard was not totally unexpected and there has been encouraging signs that some of the key republicans in congress are reserving judgment. One of them is the critical chairman of the Senate Foreign Relations Committee who spoke on sunday on fox news. I know it is very Important Congress is in the middle of this understanding, asking those important questions. Peter the senator not alone in giving the president some latitude here. He does not Want Congress to buy in. Congress is on a twoweek recess right now, one of the big reasons the president has not heard more vocal criticism they are simply not in town. Matt will Congress Vote on the deal when they get back . Peter the senator believes they should but the question is what theyre voting on. Is it something that could truly stand in the way or will it be a symbolic, nonbinding resolution where Congress Gets to express its will but not necessarily stand directly in the way of the deal . We will know a lot more when Congress Comes back into 14th. That is when the Foreign Relations committee could have its first vote on legislation related directly to the deal. Matt who is the president really counting on to sell the deal . It is not in a yahoo netanyahu. Peter cohen looks to David Cameron and angela merkel. They will have a great sway over lawmakers if they come out in strong support of the deal. Another thing is the energy secretary, ernest, a cuter girl creator a key negotiator. Matt thanks very much for the update on that story. Now back to our other big story. Worse than expected jobs data is feeling asked feeling speculation of a delayed hike. Were joined now with more. A big mess on friday. The month well under 200,000 a pretty impressive streak. Does this mean janet yellen pushes off from her planned Interest Rate increase . It did not mean they were not still a very patient fed. They are data dependent, watching the data and clearly seeing a downshift in the economy. They see it in overall gdp growth, the factory sector, and jobs as well. For the fed to do anything too soon, it diminishes the likelihood they would move almost preemptively at the june meeting. Matt is that the case even if this is all weatherrelated . The weather was big story in february. March was not all that unusual. February is definitely one for the record books. I do not buy the weather story. Maybe the west coast had a minor impact but i think the bigger story here, the strong dollar is weighing on the Manufacturing Sector and that has implications. Matt mohammed wrote a piece for the Bloomberg View who pointed the International Headwinds as well as weather and that would be the currency changes. Right. Currency impacts the exports sector but also impacts the industry. We see in survey after survey domestic producers complaining about a flood of cheap foreign imports, impacting the overall request. Matt back down to the 2008 level longterm unemployment print much stayed the same. A pickup in wage growth. What does the fed look at here . They like to look at broader measures of unemployment like the rate that shows we are moving in the right direction but we have not fully normalized. A realtime gauge they look at payroll change. That has downshifted down to 125 from 300,000, that says it is not an economy surging forth and maybe it should not be at that trend. You will not have a significant turn of inflation anytime soon. The fed will air on the side of caution and continue to wait. Matt thank you, carl here at our chief u. S. Economist. Moving and shaking this morning amazon ceo jeff asus says amazon has been successful in willing merchants once totally loyal to ebay business. Doubles to 2 million while ebay has remained flat for the past two years, still at 25 million. The new figures pose a threat to ebay as amazon posts a bigger user base and offers a way to shift merchandise. Ebay has been under pressure for lackluster Quarterly Sales and suffering a marketplace traffic slowdown. John donahoe blamed it on changes in the way google handles shipping and shopping results. Coming up, we will speak with the ceo of the via media on how companies are leveraging big data to fill out there their advertising bracket. Tesla delivered more than 10,000 cars in the First Quarter. That beats their own estimate. Is it sustainable . Stay with us. Matt heres a look at our top stories this morning. We begin in yemen. Shiite rebels say they are ready to resume talks to solve the Company Passes crisis. They first on a Saudi Led Coalition to end the airstrike. The goal is to restore yemens supposed presence. Rolling stone magazine getting slammed over a controversial story about a gang rape at the university of virginia. The story did not follow basic journalism practices. The piece unraveled shortly after public publication last year. Virtue of financial lists taking another shot at an initial public offering. The company will offer 16. 5 shares and plans to raise as much as 345 shares highfrequency trading. The reaction was brought on by a publication of michael lewiss book which contends highspeed traders and others have rate the u. S. Stock market. Tesla is reporting a big sales jump. It says it sold more than 10,000 vehicles a 55 increase from a year ago. Last years sales total the company will come out with an electric suv in the second half of the year so it says to her product has been delayed numerous times. Coming up, why april could be a terrible month for cash strapped oil firms. Us, an update on the Bloomberg Charity bracket. The night passes final game in the basketball tournament. As proven again this year, a storybook upset makes for good television. 22 point 6 Million People watched the badgers and the wildcats perfect season. The wisconsin kentucky game was the most viewed game in 19 years and the most viewed College Basketball game in cable television. Our next guest says march madness is cables super bowl, the opportunity for advertisers to reach the best and brightest to Mark Liberman is president and ceo of the largest independent cable advertising company. He joins us onset omnn set. Mark lieberman. What are my choices . Mark in advertising, the opportunities are huge now you have got television, broadcast tv, cable tv, digital video now is also exploding. The beauty of cable advertising is the ability to do geotargeting, the ability to advertise just in the region youre trying to reach and matching that with data. You are able to actually take advantage of the opportunities like you do on the internet. Matt cable is becoming as flexible as Digital Advertising . Mark i think so. You see that in things like mark matching march madness. Advertising for cable gives the that opportunity and it is as powerful as digital. Matt how can you help your customers harness big data to get the biggest advantage . Mark an advertiser will come to us and they will say, here is the consumer i am trying to reach. A lot of people at verizon to bring in a cash register. They can come in and say, here is the consumer im trying to reach and we have the databases along with the opportunity to go into a particular Geographic Area and they are actually able to increase the people who come into their stores. Matt im guessing with march madness, you can spray and pray here. Mark using the super bowl as an example, the demographics for march madness tend to be higher income, more management, more professional. When you are able to parse the databases, youre able to come up with a plan to reach the right audience. Matt who are the biggest advertisers . Mark financial. Auto is still a huge category. Super bowl, one out of every four advertisement tend to be auto march madness tends to be 14 . Telecommunications and financial are about 10 times the number of advertising. Matt more likely to use financial services. Mark and that is where the opportunity is. The creativity is pretty extraordinary. It is not just unique with advertising where they are creating advertisements just for march madness. Also, the programming. When you watch kentucky versus wisconsin, tbs and should tv, you can listen to the content announcer on one network or the wisconsin announcer on another network area network. Matt does it matter . Does that change anything for the final game . Mark we are the outsourced partner for 60 different cable companies. Lexington, kentucky, 100 people there run our tech ops and financing and marketing. Many are disappointed, as amide. Matt it is an incredible basketball school. A great right great legacy to rely on. Mark the coaches done a great job transforming these kids from me kids to we kids. It is extraordinary to they will go down as one of the greatest teens in college history, except wisconsin, experience means something when you have seniors and juniors leaving a team. I do put them in overdue compared i think it will be a great game tonight. Matt does it change anything as far as viewership . I think it will be about the same. It is a different story. Wisconsin having eaten that team destiny, there is nothing like march madnes it has become a religious cult. The secondlargest sporting event of the super bowl. The only difference is that it lasts three weeks. Matt thank you for stopping by, mark lieberman. Coming up, how much does a top ceo get paid . Stay in the loop for the big answer. Matt youre watching in the loop live. I am matt miller in for betty liu. The big number, 156 million, the size of Discovery Communications ceo pay package after agreeing to renew the contract for six years, david saw 100 million in performancebased prescription stocks. Helped take the Company Public he was already one of the highestpaid media executives in the u. S. And he is now getting a lot more money. 26 minutes past the hour Bloomberg Television is on the market. Scarlet fu is at the breaking news desk with more. Scarlet oils are in focus. Saudi arabia raises prices for crude sales. Three straight games, where should it be going here from here . Bob you have been nailing the call here for oil prices. Saudi arabia crude prices, what does that signal to you . Bob it seems to me they are signaling demand i am not seeing. Not coming out in the data yet here they have more information i do. They are seeing something i am not seeing. They are confident in the market share i grabbed with these prices. Cheaper than most of the globe so theyre confident in the slight they have taken that they could keep that. It is important to note and bloomberg noted in their story that they also lowered prices in the west to keep up with the oversupply here. Scarlet how does that swing oil prices . Pric with a deal in iran they have got coming to market that is not coming to market overnight. It is important to note how quickly the iran deal gets done if it really gets ratified at all. Scarlet dropping to 35. You say this week will be critical to trade. Bob i look at the fundamental factors and then i look at the price of crude as it self. Fundamental factors of oversupply pointing lower for the last two weeks. You combine it with the jobs number on friday and the potential for the fed to push the rate hike back a little bit, weakening the dollar, comes into play in terms of whether crude will make that move. Combine it with the driving season a turnaround coming to a close, production, they ease that stock im sorry, that storage pressure, and possibly get the firesale thing out of traders minds here it this week is critical. We saw the first reduction in u. S. Production on wednesday. We got numbers every single wednesday. If that signifies a trend, i will have to look at it from the long side. Scarlet you mentioned the jobs report it we may not get the full effect for a few days. Most of the world passes market is on holiday. What is your confidence will get a clear read next week . Bob i think the fed is clear. I think the fed is an ocean liner and not a speedboat and theyll not turn on one piece of data. I think the jobs trend is up, the fed sees that, and they basically have all said they are still on course and they are data dependent, but not week to week monthtomonth dependent. I think they are still on course for the rate hike sometime between june and august. Scarlet thank you so much. Matt, back to you. Matt i want to look at top stories this morning. Iran passes military chief signaling support for the military deal with the u. S. And five other world powers. President of president obama is talking about the plan to keep iran from Building Nuclear weapons. He says it is not a retreat from american stability or support for israel. President obama im willing to make the kinds of quick of commitments that would give everybody in the neighborhood including iran clarity that if israel were to be attacked by any state that we would stand by them. Matt Israel Passes by mr. Is not sold on this deal and says it will lead to a Nuclear Armed middle east. Investors are now getting their first chance to react after friday passes jobs report sending futures sharply lower. Wall street would close when the display numbers came out. 120 6000 was the weakest showing since december 2013. The rich are not necessarily getting richer on wall street. The pay gap between Big Bank Ceos and staffers is narrowing. Ceos pay is down since the financial crisis. Ceos made 124 times as much as the average worker the ratio is twice as high nine years ago. The ceo makes 120 times as much as the average worker. Advised not to support the chairmans exwife in the bid. The proxy passes Consulting Firm recommends that companys policies. Nominated herself for a board seat. Support five years ago. A Chicago Real Estate Investment Trust is buying a medical Services Firm. They agreed to purchase medical. Also spinning off most of its portfolio in Skilled Nursing facility. Those are your top headlines for this monday. Coming up, why april could spell financial disaster for americas show producers. Our lenders about to cut up their credit card . Well talk about that. Matt april is known for fools, showers, and oil Company Credit lines. Lenders recalculate the value of access assets of collateral against their debt. Oil is trading at 50 per barrel today. The recent crash in prices has reduced the value of the assets. Banks are planning to cut credit by 30 for some of these drillers. Some Companies Take Desperate Measures or face tankers. Im joined by the Energy Commodities writer, president of a private equity house that focuses on the industry. First off, a fantastic story for Bloomberg News and bloomberg. Com, as well. This is the month these companies sort of get all of their values added up recalculated and learn what new credit lines will be and it is a lot lower. Exactly. The manx face it on an oil reserve and oil has taken a more than 60 drop since last june and the average price is the average price over the last 12 months. The average price was 80 per barrel, higher than it is now, but a lot less than 100 per barrel that it was previously at all the banks reduced credit lines between 10 and 30 depending on the oil reserves. They are taking a hard look at what these Oil Companies have in the ground and are adjusting it accordingly. They pressed them for more pain to come in october. This will continue. We are seeing them max out credit lines, which has never happened when a max out the revolver spirit we will see a lot of Companies Facing liquidity, possible bankruptcies growing concern problems, and this is a really painful month for a lot of small and midsized oil drillers. Matt why . Your story says 10 Companies Face Serious Problems with backup dancing. When i look at the chart we just had up, and let me bring in bill for this, we see the value of their reserves per barrel really falling to figures well below the 50 mark. How are these values calculated . What is an oil company risk . They have a mixture of oil and company gas and assess. The banks are lending against producing reserves, the lowest risk reserves. No geology rest, just a question of when the natural gas or oil or hard hydrocarbons are from the ground and they are lending against that. Energy companies also have what are called underdeveloped potential reserves. It requires spending to ultimately get to the natural resource. But really it is the sum total of all of that plus the leverage or debt on a balance sheet. Matt so bill, do we see a lot of companies go belly up this time of month . Bill it has been an opportunity to provide capital to a number of companies that have some sort of financial distress area with a company is basically overdrawn on their credit line typically the way the borrowing evolvers work is they have somewhere between five and six months to get it into compliance it will not be a sudden announcement april 5 that a bunch of companies are filing for bankruptcy. It will be a test as to whether over the ensuing five to six months and as don mentioned october 1 will be a painful day we stay in this commodity today. Borrowing basis should be off 50 not the 20 were seeing for banks today. Bill is being modest because he wanted a private Equity Company taking advantage of this. They just did a 1 billion rescue, and you did 3. 6 billion worth of deals in the last few weeks . Bill yes, all funding. In the next two weeks across the Energy Spectrum of companies in need of capital, that backs about 25 million of and are of Energy Assets located in the u. S. And latin america. Matt is that a bet that this longterm low price does not hold . Bill we have seen the cycle many times. Commodity prices go up and then they go down and then they go back up again. What you are seeing right now is an industry of capital for purposes of exploration and development, ultimately demand and supply. It is a question of how long it takes and we are making that longterm that. Matt excellent stuff. A great story. You can check it out online bloomberg. Com. I want to get back to the breaking news desk where scarlet fu is taking a look at some of these reaction scarlet . Reaction. Scarlet m a. Specializingbillio here at what it plans to do the purchase will add eight cents to . 10 burning earning in the full year after it is completed. Some analysts call on tech name spirit microsoft right there, saying it reflects all the headwinds such as the strong dollar in the, but this is a into this stock here qualcomm getting a downgrade from capital to market perform. Catalyst was at t advertising on the web site that the samsung lc s6 is not powered by qualcomm chips but his own ships. It shows samsung plans to use its own ship own proprietary whenever and wherever possible there it tesla, the electric carmaker, the lone gainer a amongst the 10 month trading company. The premarket up by four point 4 , changing hands. First quarter delivery rose 55 compared with the last three months of the year. Matt thank you. I appreciate you throwing in the tesla quote for me. Im a big fan of cars and technology. We will seeinue to boost demand. Coming up, markets are dealing with host job reports hangover today. We will look into why you may want to shrug off this point is. Stay with us in the loop. Matt welcome back. Here is a look at stop top stories. Cash reserves run dry. It is stepping up efforts to find allies in the u. S. And russia. A deal on securing additional funding from the country has zero partners still weeks away. The Company Passes finance minister reassure the imf it will make a 490 Million Dollars repayment on thursday. The foreigncurrency reserves is coming to a halt. Global reserves declined in march. It is still down a record 12 trillion in august of 2014. The fivefold increase began in 2004. A stronger dollar is partially responsible for the job and still underscores a big shift. Central banks added 804 billion dollars to reserve each year over the past decade. Shares are rising in the premarket on news of the spinoff. The Japanese Company is seeking investment from Government Back Network Corporation from the government of japan. Making lcd panels used in smartphones and tablets. This bet sounds again sure thing. His knee is gambling on americas love for fantasy sports. Investing 200 million of online fantasies arts fair that values the company at 900 million. In return they promised to spend more than half 1 billion on advertising. Those are your top stories on this monday. Coming up in the next hour, we will speak to a cofounder about leaving the world of finance to explore the jewelry market. Plus, a countdown to the opening bell following fridays disappointing jobs data continues. 126,000 positions last month. Revisions erasing thousands of jobs for january and february. More fixated than ever on the fed. Definitely very fixated. Joining us now, someone who was not surprised about the disappointing payrolls report and whose forecast was a most exactly on point. John, first of all, why did you see this coming . John we saw on impulse to support job growth and next month is the april month and the man june month really look very strong in the first half. Without this of be the soft pocket in the first half. It may be the softest number of the entire year. Matt is it a bit of an anomaly . With horrible Weather Companies did a lot of hiring in january and february and are taking a breather. I have a horrible cold. John the deal is it is soft in the year and saying it could be the weakest number of the entire year. We look for secondquarter growth to be much better than payrolls. We are around the 30 to 40 mark. We should also get job growth for the College Graduates. This can be the best year for them since 2006. Then we get toward the and of the year and you get the normal temporary cyclical job you get in a year and a fourth quarter. It is also pretty good. Matt howdy respond to, bill gross came out and said this is a sign we are in an even slower structural economy. Mohammed said the same thing in an oped for Bloomberg View. John it is a good point and we have to distinguish this year and next year and and where we are structurally over the next 10, 15, 20 years. We have our forecast and we have been really spot on there. Thinking that would be going for the next three or four years. It hits an Inflection Point in 2017. After that, it almost looks like no growth in the labor force. It means the trend growth is 2 or lower in the longerterm. So good jobs growth this year and next year. 2017, the Inflection Point and after that it looks sluggish. What it looks like is a lower fed funds rate, very gradual. Matt phil dudley is speaking this week and we have a transcript of this speech. The pace of federal increases will remain low. It will be important to monitor developments to determine whether the importance of the labor report is evident on friday. Foreshadowing a more substantial labor market then he anticipates brady he does not really anticipate the slowdown will stick. John yes, they are overly fixated in communicating and so on. A couple of interesting facts on the job market. If i ask you which has the largest share of jobs in america, it is aged 50 years and older. These people save like crazy. They are saving and the savings rate is really high. In a few years matt thank in this they are saving. John absolutely. They deftly needed. You are looking at 11,500 per day retiring from about 2018, 2019, 2028. A massive number of people are exiting the labor force. I gave this talk down in florida. Participation rate for people 69 and older is really low. I talked to them in florida about this and the guy said to me, all my friends are getting hip replacements. I said, it is not really shaping up like that. Matt you say it will be good for College Graduates going forward. John we get the good job impulse. 2017 is a reflection. Matt john, thank you very much. Congratulations for hitting the now on the head with your forecast. The rate strategist at mitsubishi securities. Still to come, wisconsin and duke square off in indianapolis. While we await the outcome, we have another winner for you, and all will be revealed when we come back in the loop. Matt we do not know the winner of tonight passes ncaa basketball, we do have the winner of our Bloomberg Charity bracket. It looks like gary will take home the crown with the most points matter what the outcome. He put together by correctly picking all the file 14. Not to mention both finalists, and that means 360,000 to his charity. We got both of the finalists. I think he picked wisconsin so he may not have had the winner. They provide intercity with opportunities for mentorship to play, learn, and grow. A Great Charity and i think were all rooting for his take for wisconsin tonight. Stay with us and we are back in two. Matt welcome back. Were 30 minutes from the hour. Here is a look at the top story. Wall street reacting to friday passes report showing the weakest monthly u. S. Jobs growth in a year. Only 126,000 jobs created in march. Todays Iran Military chief support that president obama response to critics of the plan. He tells the New York Times the deal is not a retreat from america passes for support from israel or the militarys. Artie. President obama our Defense Budget is closer to 600 billion dollars. Iran understands they cannot fight us. Matt Benjamin Netanyahu says it will lead to a Nuclear Armed middle east. It is raining today in northern california. That is obviously not going to use the drought very much since it has lasted for four years. Cities in town statewide are under order to cut usage by 25 and governor jerry brown tells abc it is not just a californian problem. Jerry brown the weather that is happening in california will show up in other parts of the world. I can tell you from california, Climate Change is not a hoax. We are dealing with it and it is damn serious. Matt brown says farmers are producing food, not wasting water on lawns or long showers so farmers do not take long showers . That is probably not true. Virtue financial filed with regulars today and the company says it offers 16. 5 million shares, 17 to 19 million each. 314 million, they delayed the initial ipo a year ago after michael lewiss look was published. The book charged that highspeed traders and others rate the stock market. Chicago Real Estate Investment trust is buying a medical Services Firm here vent toss agrees to purchase arben medical. Those are your top headlines for today and we are under 30 minutes form from the start of trading kilis count you down to the open of top headlines. A Venture Capitalist Firm based here in new york and Lisa Abramowicz is joining me today. Thank you, ladies and gentlemen, for joining me. Fast and furious seven set a record movie opening for april of this weekend. The seventh film of the franchise raked in 143 million in u. S. And canadian theaters. It is also the night a guest weekend debut in box office history. It features vin diesel and the late paul walker. , steve think it is really a factor of paul walker not being alive to see the debut, and the drama that came around his tragic death in 2013, if this would have spurred people to the theaters . I used to be one of those executives matt obviously, the films have been going for a long time to we are on number seven now. People have been and is the beginning. The fact that the star was apparently a very nice guy, very goodlooking guy, died in a flaming crash of a milliondollar porsche, it deftly did not hurt sales. I do not think the story was that much better than the others. Matt number nine, tesla zooms past its forecast. Led by billionaire elon musk, it says deliveries rose 15. 5 . The maker of the model s sold 10,030 cars. This is fascinating to me. It comes at a time when gas prices are going down. Actually, the lore of electric cars is not perhaps even as strong as it might be, and even still tesla is able to make inroads here. It is impressive. Classic everybody will go this way at some point. It will not last and people know it. Matt you can drive for 300 models and that is a decent amount of range. The p 85 d has 700 horsepower. I have you german one of these things . It is whiplash. I do not care if it is electric or good for the environment or coal power. It does not matter to me. Quite it does raise questions about the longer, bigger, longer lasting Car Companies and what will happen to them. Matt i still like most other Car Companies. Clive it 10,000 cars. Matt compared to one million. Now grabbing market share from ebay as merchants move their businesses amazon saying theyre getting more money for goods on the platform. Amazon passes pool of merchants doubled. The number of sellers on ebay has remained flat for 25 million is a pretty big number. It is hard to compete with someone who has publicly said theyre happy to take anyoness margins. Jeff bezos and amazon, it is just a juggernaut. Whenever we see a company come in with profits that are even remotely competitive with amazon, we look away. It is so difficult to compete with them. Ebay was sort of a pioneer. This has been a great move for them but they have lost a little bit of focused in when you take on an entirely new category as a highgrowth Technology Company come it will hurt the core business. If this payment split works out for them, that will be great. Matt one is the world posses Biggest Online auction site and the other one cells sweaters. Five it probably has more publicity these days than ebay. Matt a big error for dish networks new online video service. An error message saturday night during the final four, the second game was not one to be missed here the Wisconsin Badgers defeated the kentucky wildcats in a surprise upset. A spoiler alert in case you had dvr. This just points to how important life tv is for the networks. You want to watch Something Like game of thrones and house of cards. If it does not work the night you watch it, no big deal. But if it is a live sports event and it does not stream, you are upset. Can you imagine the moment when the service is disrupted during this incredibly exciting game one kentucky was upset, can you imagine . The final four for you and the masters for me, everyone has something they really want to watch live. That is why those keep getting bigger and bigger. Klassen angry customers nowadays take to twitter and that is not good publicity. Number six, comcast is beefing up its list of that list of beneficiaries for a proposed time warner and comcast deal. Urging the federal government to step aside and approve comcasts proposed takeover of time warner. Defenders of those letters all received money from comcast in recent years. This company has like 124 lobbyists. It is a lot. And they now get all these Charity Groups they donate money to, like the not make of brothers. Could they find someone they had not given money to . Has it been that effective for all the money they have poured into the lobby and . There is still a lot of questioning around whether or not they will get the deal done. Their technology is so much better than time warner. It will definitely be better for the consumer. There are obviously issues, but it is better technology. Antitrust will own 35 of online streaming. Matt Time Warner Cable subscribers, those unlucky people here in new york city are still going to have a horrible network and a lot of problems and i do not i do not know if the service will be any better. We will see. Coming up, staying ahead of the trend curve, an online retailer gained momentum. We will speak with the cofounder next here on in the loop. Matt it is not just about buying new shirts every week. Startups do the same with jewelry and an online retailer is pushing to up and the one point the 1 billion jewelry business by bringing accessories. The cofounder joins us now with more. Lisa joins me now. A jewelry buyer. Men buy jewelry as well. I spent some time on the website and found a few cool things i might want. I am comfortable in my sexuality. I do not even know if i am allowed to say sexuality. Talk to me about the business. It is interesting that no one else has done this before. Classic a lot of people focus on jewelry were really a cattle a retailer. When we started the business, we wanted to build the first fashion brand. Bringing consistent new trends to market. Matt you find designers you like and then you sell the stuff they make. They are not very expensive. We design everything ourselves and produce it ourselves. Short of owning the actual factories. Lisa it looks like the perfect sweet spot as far as prices go. Classes is hard to say it we find it in the 45 range. Fast fashion, you want people to not hesitate to you want them to feel it is a great deal but still great quality but you will not feel bad when the trend dies and in three to six months, you do not want to wear it anymore. Matt you invest in this business. Correct these trends are changing in some cases every three weeks. That is an and and infrastructure amazon cannot build. To build the supply chain that quickly, it is very difficult. My head is spinning thinking of switching every few weeks. You used to work at a bank. Are you working more hours now . Yes, a lot. You have the ability to turn it off and say, i am not on the clock anymore. Im done. I would email amy, everyone who knows me and loves me would be like why are you permanently on your phone . When you love it and it is yours, you do not have the ability to turn it off ever. Matt i go to amazon to buy something sick specifically. Your website, i would sit there and look at it and say, want this ring or this rake slid if i were to buy those things. It is a different experience. Actually. There is a large element of discovery to it. A lot of women are coming to our site and they see a Beautiful Image on instagram and their facebook feed, and they want to look at the editorial content and explore. Maybe they will not immediately, but we get their email address and you can remarket to them later. It is about discovery and really falling in love with the brand. The repeat purchase trends are incredible in your business. It almost feels that way with how often some women purchase. Exactly are we wanted to create a brand where when you shop with us, they get the purchase and a open up the box and a see how great quality was for the price point and they just naturally repeat very frequent lee. We did not want to necessarily tell them how frequently like a subscription model. Something like fashion and jewelry, some women want to come back every week and some women want to come back every month. We could send you a box of goodies. Matt bobble bar . [laughter] [indiscernible] lisa it is like a piece of fun jewelry. Matt i understand what youre saying the same word. Daniella not really. Matt thank you. Lisa will stay with me. For years in california or the governor of the golden state has news for you. Will continue. Aim a loop. Stay in the loop. Matt joining me today, bill peabody, and bloombergs lisa Lisa Abramowicz. Lets go to number four northern california. Obviously getting hurt by the weather. Continuing to get her. A trout has lasted cointreau years and as a result, cities and towns date wide are under orders to cut usage by 25 . Governor jerry brown was on abcss week yesterday saying it is not just a california problem. The weather happening in california will be reflected and show up in other parts of the world. It is serious. Matt i do not think anyone thinks Climate Change is a hoax anymore. Probably some people, but most people would probably say it is not manmade and you cannot argue that the fat california has had a drought for cointreau years. Lisa he says really the issue is you cannot take long showers. Matt only 10 of the usage of cities and towns, if they cut back 25 , that is a drop. Bill it is not a consumer story, really. Matt we just hope it rains and it is raining today apparently in california. The decadelong surge in foreign currencies reserve held by Central Banks finally turned around. Global reserve declined to 11. 6 trillion in march 12 record 12 train dollars in march of 2014. You can look at this in different ways. Worldwide last august. Lisa there is evidence there has been slowing in the emerging markets. A lot of concern about local currencies in a lot of these countries that are depreciating rapidly. Matt they have 12 trillion in the reserve here it lisa reserve. Lisa not anymore. With reserves deteriorating bill what is the right number . The economy is so incredibly matt maybe they should unleash it like a california drought. Look at infrastructure problems we have in the u. S. Maybe we should spend the money and build new roads. Number two, the jobs again employers added new jobs in december of 2013 creating 126,000. It may give policymakers another reason for delay. The march payrolls report, what do you think . Bill it is hard to know what to root for. The market gets so concerned every time there is a reason to raise rates that it is hard to know what is best. Lisa this creates more volatility in the next months ahead. For more conflicting data, the more people will not know which direction to go in. Matt over the next five years, or change the way she says a word. Lisa or that they could have confidence in the growth of the u. S. Economy on a more fundamental level. Matt lets get a check at where futures have settled. Take a look here. The s p down half of 1 . The dow is down two thirds of 1 . A quick break and we are back in two does minutes with more. Two minutes with more. [office phone chatter] [frogs croaking] you know what, let me call you back. What are you doing . [scream] [frogs croaking] [yelling and screaming] its back Xfinity Watchathon week. The biggest week in television history. Its your allaccess bingewatching pass to tvs hottest shows, free with xfinity on demand. Xfinity watchathon week. Now through april 12th. Perfect for people who really love tv. Matt welcome back. Lets get back to bringing you the most important stories you need to know before the opening bell. Joining me today a venture capitalist based here in new york and Lisa Abramowicz, also based here in the big apple. Anxiety on wall street. Fridays this report disappointing jobs report shows wage gains climbed it could be seen as pressuring profits already forecast in september. On friday, a Management Fund manager, bill gross gave his take on the economy. Bill gross the economy is going. Reports show the gdp in the First Quarter will be close to zero and the numbers reflect that. It is a weaker economy at the moment. Matt as stocks get ready to start trading, i want to bring in peter as well. Calling for more caution. What do you think first about bills comment . We have heard it echoed a lot of the biggest minds on wall street. Bill we started the year somewhat cautious on u. S. Equities and somewhat cautious on growth relative to peers. The forecast for the year was two point five gdp growth. Bouncing around on unemployment data is not much of a surprise to us here it with keep in mind they have a unique way of calculating the number. I like to look at the employment population ratio, flat month over month and up about 1 from its low of last year. Matt what do expect this will affect as far as fed policy . Bill that is the thing everybody is worried about. It has not affected our outlook at all. We think it is june, september. Maybe they will be a bit more incremental. It is possible we will get an aids an ace. There are a lot of things they may do. Lisa i have been really surprised. A lot of economists have maintained their optimism. This jobs reports just matched other data coming in, weaker than expected. Why are you still optimistic . Bill for u. S. Equities i think we are going to be flat to down this year, which is on the low end of the forecast. It is tough to be that bearish voice among so i am not optimistic. I am much more bearish about Global Growth that my peers. China has levers they have been pulling to grow their economy. Europe is slowing. When you look at tmis and everybody is all about the latest european tmi, it is a survey. Doesnt necessarily mean the european economy is improving all that much. That is how it is playing. Matt one thing we focus on is venture issues. Do you think new issues will be affected . Peter supply and demand is important for u. S. Equities just as anything else. There will be a demand for new issues going forward. I think it will stay robust when they start to seats start to see signs for return. Our view for 2015 is it is a transition year. We are going to start to see that as we transition to 2016. Matt we see the markets down 100 on the dow. 100 . That would be the mostwatched episode. Here you can see down just half of 1 . I just want to point that out. We are looking ahead to three quarters of declining profits. Are you concerned if that is the outlook i dont understand why stocks would rise at all this year. Peter the dollar was going to lead to u. S. Equities and challenge largecap earnings. We saw negative Earnings Growth for the First Time Since q3 20s q3 2007. By the way, analysts revised that down from positive Earnings Growth at the end of last year. Over the course of two to three months they said we are going to be going from 5 to down 4. 6 and down 1. 8 . Lisa have we moved beyond the point where its beneficial for the u. S. Stock market . Peter there is a theory of diminishing marginal returns and i have the feeling that for quite some time. With respect to Monetary Policy the u. S. Is taking its foot off the gas. Europe is putting its foot on the gas. It is my humble opinion that Monetary Policy hasnt worked the way we had learned about in school. It force people into risky assets. Mark matt bo relative to 2000 the assets are not risky. It is difficult to take a Company Public without 50 million. Lisa in the stock market you are seeing some interesting things. And the number of privately placed deals we came to see that the Insurance Companies are increasingly buying are below the radar. There are some riskier things going on. Matt thank you for joining us. Thanks to bow the body to bo peabody and lisa brought what speed we have recovered from the big drops earlier. We are down now just 75 on the dow industrial average. We will keep following test for you as it is our job for the rest of the day and possibly the rest of eternity. The First Quarter saw over 4. 6 billion in ipo activity. Will this number sink or sore as the year progresses . I will speak to the cohead of Software Credit suites. Matt lets go to scarlet fu with a look at the early action. Scarlet everyone is looking at the report following big jobs report on friday. We got disney, which is about to. 225 which is about 2. 25 shy. The owner of espn is now investing 250 million in an Online Sports business. In return, they are going to commit to advertising on espns various platforms which is attractive to the Company Given that Advertising Sales have slowed down while sports rights fees have continued to climb higher. We all in to dissipate the final ncaa game tonight. Lets move on to trip advisor. Julie bradley has resigned after four years at the company. She said she was to spend more time at the family more time with her family. Could it indicate that the First Quarter was weaker than anticipated . Upgraded to outperform. That is good for a threequarter percent increase. Qualcomm getting a downgrade from spr capital after at t posted on its website that its version is not powered by qualcomm. Lets end with airlines that are falling. Southwest at the lowest level and worst price since january. Oil prices continue to rise. It see signs of growing demand. Matt a bright spot at the end of the tunnel. Year to date there has been 450 billion dollars in u. S. M a activity. A growing part is the technology industry. He is bullish on dealmaking in the year ahead. Thanks for joining us. Let me first ask you about a market with lisa and peter here. It was a great year last year. How do you expect this year to play out . James is driven by an by investors needs to get into the key areas. It is mobile social data, analytics, security. That should continue to drive a lot of demand. The ipos have performed very well. So the market window is open. Matt im guessing cloud is one of the biggest areas of those you mentioned. Of those of the five you expect to drive growth more than the others . James wes we expect to see a lot in clouds. There are a lot of ipos in this space. If you think about the breaches and headlines you see, that drives the demand for security. Valuations in the Public Markets are high for this particular type of company. Matt do you expect this year to be better than last year . James there are some question marks over what happens to macroeconomic sentiment. Not standing those things i do think we expected to be very strong. Matt how much does it matter to companies that the fed raises 25 or 50 basis points throughout the year. James it is not really a key factor for them. It is a microcosm. A very deep microcosm. The innovation that was happening is really unprecedented. You see it in the public equity markets where valuations are very high. I dont think it is a key factor that is influencing those players. Many of them are not profitable. Industry traced on affect them at all. Matt if you are a riskier bet the debt markets are a better way. Do you think ipos are a better way and what is the threshold to go public . James you have older more Mature Companies with 50 million or so. The smaller highgrowth companies it is really an area of growth. It is very hard to find growth in other areas. You can get it in health care and technology. Technology and software is one of the best places to get it. Many of the highgrowth Software Companies are not possible for you you can go public with 100 million of revenue. You can get to that level without being gets that level after being around for ive years. Matt it seemed to be a place where destruction is needed because there are so much opportunity in that side of the market. James there is a lot of opportunity in the payment ecosystem today. Innovation has been the batch there are a few key things that drive innovation for both consumers, merchants, and banks. One is convenience. Two is security. Your credit card often doesnt even transfer over the credit card network. In an apple context that makes it more secure. When you do a transaction using your mobile phone that generates a lot of data. Those three key things will continue to drive the mainstream adoption. Matt what do you think about the big point block chain . James it is a mess the bitcoin itself, which is a euro or u. S. Dollar, and the block chain underneath it is a protocol, essentially a very advanced ledger. A lot of people, despite the headlines of it coin of bitcoin, are more interested in the ledger opportunity. This is versus traditional ledgers and heavily regulated. Matt james disney, credit suites head of global software. Great valor is worried that the states contentious religious freedom law will turn businesses sporting events, and educated millenials from coming there. Matt we dont know the winner between wisconsin and duke, we do know the winner of our charity racket. It looks like gary cohen will take home the crown no matter the outcome of tonights game. People correctly pick all the final four teams. Here he is talking to bloomberg about the decision for his picks. They dont have the best records in the country because they beat each other up all your long. They tend to shine. Year after year it happens. It happened in the football playoffs. A big ten team. It happened in the basketball playoffs. It wasnt dumb luck at all. Picking michigan and wisconsin to be in the final four. Matt that makes me proud of wall street. It makes me proud of the midwest. Im glad somebody is enough to think like that. She put together this whole charity bracket. Kudos to you for bringing in all these bigmoney guys who will be giving money to a good cause. What better time for kids of town to get 360 grand. Matt it has been a great week for mary ballard. Not only is his city hosting the ncaa championship but also theres a backlash reverberating from the religious freedom laws. Lets bring in stephanie ruhle, again. Stephanie i am here. Matt you have the mayor on. Stephanie i do. We are talking about indianas controversial religious freedom law. It has created a stir over the last few weeks. Governor mike pence has moved to change the language in the law to ensure that it doesnt promote discrimination. There are over 40 ceos the next day, signing a document saying we are going to take our business out of the state of indiana. Indianapolis is where the final four is being played. We are going to talk indianapolis about what they are going to do. They dont want to lose their mojo. Matt i will stick around and watch. Matt the fast casual restaurant chain has built its reputation on wings, beer sports, and has proven to be a recipe for astounding success. It sells over a billion chicken wings each year and brings in 1. 5 billion in annual revenue. He has been looking into the incredible ride of Buffalo Wild Wings and joins me from chicago. Thank you for joining us. What has Buffalo Wild Wings done to become the dominant chicken wing chain in america . Brian take corporate car, go to the bar, watch sports and eat buffalo wings. The wings are good. The beer is ok. Bigscreen tvs. You put all of that together and you get a families who look at it as a cheap night out and you get singles who like to go in there for the fun and scream for their team. They are opening 80 restaurants per year. Matt it is incredible he casual, it seems like a bar to me. Bryan it is a segment where you have Table Service and reasonable know and reasonable prices. For a lot of people it is reasonably priced. You take your kids. They can have some fun. There is a buffalo head mascot walking around. The singles like it because it is a bar atmosphere, particularly the bar at this particularly the restaurants where they dry horseshoe shaped from the wall and make it a focal point. Matt i have to think chickens this one. If you sell over one billion wings per year that means half a billion chickens at least. Bryan chicken prices have been extremely volatile over the past few years. Sometimes you have bigger birds that are growing. That has post some problems. They roll with it somehow. Matt can they maintain the growth they have over the past 20 or 30 years . Bryan they think there is room for another 600 restaurants in north america. They are starting to open restaurants overseas. They have plans in saudi arabia where they will have to take the beer out of that menu. Matt im sure they will find something to watch basketball with. These big events are huge for the chain. Bryan they push really hard. March madness they sold 94 million wings last year. The nfl season is huge and now they are taking steps to bring people in when sports calendars are a little thin. Matt thank you for joining us. You can read his full report on bloomberg. Com. Tomorrow, the road to 2016. Which republican could be next to toss his hat into the wing into the ring . Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. stephanie shares are bouncing back. Erik iranian oil sends prices plunging. Stephanie a new cloudbased Payment System is turning ipads into c