1000 for a mans haircut . Crazy. Guess what, it is your head. A guy does not have the opportunity with makeup, hearings, heels. Well, he could, actually. Some do. On that note, i will do this to myself. Top business stories from around the world. Sayutives at General Motors an internal review of a car recall will be good news for ceo mary barra. It is believed to the investigation will clear her of any wrongdoing. The report is expected to name those responsible for a delayed recall blamed for at least 13 deaths. One of japans biggest insurers is expanding into the u. S. Daiichi will buy Provident Life for 5 billion. And the new adp employment figure came in a little light. Adp says private employers adding 179,000 jobs last month. We get the government jobs report on friday. I was waiting for adp, so now i have to do some recalculation. 211, that is my number. I will not be here on friday. I may call in for you. President obama has arrived in poland as part of his tour of europe ahead of g7 meetings. Hans nichols is in brussels with more on obamas trip. You met with he met with the ukrainian president elect, Petro Poroshenko, for the first time. What did they talk about . I imagine it is kind of obvious, but you know better than me. A substantive conversation about the future of ukraine and how to unwind attention. We saw a fullfledged embrace from obama. The meeting was important for a variety of reasons. Signal to investors, to other institutional leaders that this is a person who can lead ukraine out of crisis. Two, laura tango has a really 2, 4 shank out Petro Poroshenko is well and mediated to solve a problem and unwind tension. I have been deeply impressed hisis vision and partly by experience as a businessman, and what he knows will help ukraine grow and be effective. The meeting when it goes 15 or 30 minutes later, it is either a bad or a good outcome. He has arrived here in brussels. But in poland he cast a larger struggle as not just about ukraine but also about the march to progress of freedom in eastern europe. As we have been reminded by russias aggression in ukraine, are free nations cannot be complacent in pursuit of the vision we share. A europe that is whole and free and at peace. We have to work for that. We have to stand with those who seek freedom. The president also came bearing gifts. In nightthe 5 billion vision goggles and armor. That is nonlethal assistance. That is to the ukrainian i still struggle to see how night vision goggles can be clearly on the nonlethal side. I will leave that for you and stephanie to discuss. Hold on. It is unclear to you why it would be on the nonlethal side . It is just goggles. You are using goggles that night to patrol your border. I imagine you could make the case that maybe they are playing freeze tag or something, but for the most part i suspect night vision goggles are used for violent means, violent ends. A g7 meeting, not a g8 meeting, but president obama and president putin are going to find themselves in the same place in just a few days. They will both be at the palace in paris. They will have separate dinners planned. Clearly they are going to meet. The idea that they will not have a conversation putin has said he would like to meet with obama. Obama will probably find some time to talk to him. They are very clear about that. Are they going to exchange pleasantries, get into the substance . That is a question we do not know, but it is clear both sides are signaling. slot of president obama rhetoric has been more conciliatory toward valette amir , theward Vladimir Putin endgame in winding down the situation instead of escalating it. Notwithstanding the nonlethal assistance, obama seems to be in a position that he wants to reach out to put in and have a substantive conversation. Our international correspondent, hans nichols, from brussels today. Goldman sachs Small Business smallm was held to set up businesses. I had a chance to sit down with goldmans ceo and chairman like buying fine chairman Lloyd Blankfein and michael bloomberg. The two share their experiences with graduates of the business program. If you are wondering why they are so anxious and nervous on the show yesterday, that is why. Take a look. I remember being a great listener just like a smart and diligent and great athletes. But i have a feeling we are all alike. Do you feel like the image generation wants to take note and wants to learn from them before . Right now when they have icons like mark zuckerberg, the guys from snapchat becoming multimillionaires and billionaires, they do not necessarily want to learn from their elders. They have to understand those are so rare, you have a better chance of winning the lottery. Really no chance. You have to get used to the fact that you are going to have to work your way up. It is going to be a struggle. You will have ups and downs. That is just the real world. And i dont know very many people who are successful that didnt have lots of downs in their careers. Anybody that has a meteoric rise just is getting ready for a fall. Knowing how hard you worked in your career, it does not give you pause to hear from young people who want not to work on the weekend, who say they dont want to work for the man, who say they want to be part of a community, they want to be more thoughtful . It is darwin at work. What do you mean . Because they are not going to be successful. You can always buy a Lottery Ticket and win 1 trillion. But generally speaking, if you are going to get into Goldman Sachs or progress at Goldman Sachs, or at bloomberg or at the cornerer score store, you have to work very collaboratively, be honest and be flexible. If you tell me you do not want to do this or do that, i would not hire you. I want to know what you want to do. I used to write letters. I am a 1000 letters, and terrible typist, but i typed them out until i cut them right. Until i got them right. And i got a job all through college. Every summer i had a job. In high school i had summer jobs , and parttime my senior year i worked at a little electronics company. We did not know anybody. Somebody once said that i got something because of influence, and my mother said the only people we knew whose names were in the paper were in the obituary or the crime sections. I did not know anybody. You just go out there and do it, and i still think that opportunity is there, and i dont think most kids fit into this mold of the millenial and they are too good for this and they do not want to work for the man, or in this day the woman. Handful, they are in for a rude awakening. Schools that do not want Christine Lagarde and Condoleezza Rice speaking at their commencement. I came up in a generation where people were at the vietnam war and he picketed things in hindsight we would not done today. Some of the things done or said are ageappropriate, and if you look at what people are doing as opposed to what they are saying, i complain like crazy about the long hours i had, the times i spent that i was a lawyer when i started out in a law library. I complain for hours and hours how late i had to stay. If i had left i could have gotten out a lot earlier, but i worked. I think youre doing the same thing today. The world is different. Delivering things, collating, things that do not have to be done today. Absorbing a lot more information, disturbing things with a lot greater effect than we had the ability to. Dont forget, i get older every year but the kids starting out at Goldman Sachs stay in the same age. I always talk to the group coming in, and they seem to be clearly motivated, working hard, anxious about their careers like i was. What motivates you today . You must be a adrenaline junkies. Where do you get it from today . I think when you like doing something, you do more of it. The more you do it, the more reason it gives you to like it. It, you spiral down. But the piece of advice i would give tenant any young kid who gets a job, you have to go in and you have to work harder. I always make sure i was the first one it in in the morning and a last one to leave in the afternoon. We talked about the fact that young people today say they do not want to work in banking, they want to work in tech. Remember, Mike Bloomberg left salomon brothers. Future wasthe technology. He started a tech business. Hes a tech guy. That is what bloomberg is. At this point today, 2014, 25 of employees at Goldman Sachs work in technology. It is not just old school salespeople, traders, and bankers. We are a Technology Firm and it does not stay still. On top of the technology needed to drive the business, you need technology to comply the business and to make sure that the difference is Risk Management and a couple of other layers to make sure everything you are doing is in good order. I think we first heard that from him in sports or length, and he means it because every him in from switzerland, and he means it. Fixed income etfs. Get to theer we electronic trading platforms across all businesses, the words it is for banks. They either need to get on top of it, get in front of it and embrace it, and they will take an Old School Approach saying they do not want to be in that business, the blackrock and pimcos of the world who have a produce year he responsibly for best execution, they will tell them to take a hike. Who will that hurt the most . The firms all based on relationships. If you are a fiduciary, you need to transact with the dealer they gives you the best price. Times have changed. Cofounder alibabas hopes number eight is a lucky number. We will tell you why in a moment. Plus, it is baseball versus the open days. The team wants to move, but Major League Baseball says no. Onhis is Market Makers bloomberg television. I am Erik Schatzker with stephanie ruhle. There are two interpretations for ba in chinese. One can mean gate, the other means fortune. Picker is and has been on the ali baba ipo trail. Leslie, how important is superstition to the people behind ali baba . Incredibly important. You have two very careful and seerstitious you can number eight popup in various forms of their culture. There originalas ticker in hong kong. Now they are private but that number endorses one of the wholesale websites that they have. So you see it pop up and it has served as luck for them in the past. If august 8 is feasible, that is something they are looking to do. Obviously august 8 is their ideal. What would cause their delay . They want to have a successful ipo. They want the ipo to be successful. Do they wanted to be late august . Not absolutely not. They are already in the ham tends on august 8. They are, but their thought , they haverly enough a 20 billion ipo coming in, it is not an ipo that investors can really august 8 . This is not france. People are actually working in the month of august. We will be working. We will surely be working. Leslie, thank you very much. On the 18th and the 28, too. More news on that front coming. Only hota is not the ticket these days. Are you ready for this . Young people in the country are clamoring to get in on something that seems oh so retro. Massive attack ipos and global capitalism. Is this true . Arent they too cool for the markets . Thehey are joining communist party and rose. They are talking about Young Chinese people. The china edition is off the charts. The 20th anniversary of the Tiananmen Square crackdown. The communist party is doing just fine. The chart shows recruitment levels of University Students are at an alltime high. The bars track the number of students who are members, approaching 1. 20 5 million. Million. Ching 1. 20 5 they made a comeback in the mid 90s. They really took off the last 10 years because the number of College Students has skyrocketed over the last decade. The percentage of students that make up the total members is at 40 . What are the career spock the Career Prospects . That is why they want to join the communist party. More likely it has to do with pragmatism. If you are a member of the communist party come you have a better chance of getting a job in the Public Sector come in which is seen as safe there which is seen as safer with benefits. Kind of like it is in the United States. It helps to have a Party Membership as well. A so this is not about political view, it is about a political aspiration. Like in the United States, they have a hard time finding enough jobs. What is interesting is the comet his party has figured out a way to work this. They have become very popular. One book i read, the author points out that the Chinese Communist party has 85 million members. Making it seem 85th making it the most populous country in the world. Scarlet, thank you. I also love your dress. Thank you. The whole thing. It works. Coming up, many consumers have a short memory. They cannot decide all the news , and snappedalls up gm cars last month at a crazy pace. It is graduation season, and that means famous people handing out lots of advice on how to succeed. This year we thought we would spend time going through thousands of hours of platitudes to bring you the only commencement address you need to see. Good morning. Distinguished faculty family members. And the distinguished class of 2014. This is such a remarkable day. You are graduating from an Excellent School today. I can see it in your faces excited, full of hope, blissfully unaware that you will be paying off high interest Student Loans well into your 60s. It is your commencement, for crying out loud. You are about to run through to an enormous field of uncertainty. You will take your lumps. But the only way you will reach any height in life is by taking that chance that you might fall. You are ready and able to do beautiful things in this world. You are a unicorn. We are unicorns. Change the world. Be world changers. I want you to remember three things. Six things. 21 items. In no particular order. Never give up. Keep the flame burning. What it meansbody for america to lead the world. To the class of 2014, thank you. Congratulations. Your journey has begun. Lets go genius. That was genius. Thank god diddy was there. Unicorns. Dr. Unicorn . Unicorns . If i was a young graduate i would be keeping that close to me. I will say, was jim carrey actually speaking at a commencement . Because that outfit was a joke. It was like a costume. You can get that again on bloomberg. Com. I have a feeling that is going viral. Stay with us. Youre watching bloomberg tv. Market maker you are watching here on bloomberg television. Im Erik Schatzker. I almost said im Erik Schatzker. Amazing. Im stephanie ruhle. Im pretty sure about that. Highprofile recalls, one might expect sales of gm cars would be a bit off but customers are unfazed by the widely publicized series of recalls the company issued. The automaker just posted its best month in six years with sales up 13 in may, so were asking the question, why hasnt the recall scandal made more of an impact on dealership floors . Joining us for insight is chris malone, author of the human brand. By book focuses on recalls tylenol and other companies. It, isnt that americans except there will be recalls and there is danger on the road, and by a car anyway buy a car anyway . I dont think so. Our company has done Extensive Research on product recalls. When we looked at the fundamentals, it was not surprising that sales have not been impacted yet because the circumstances are different from what we saw in toyota in 2010. What do you mean by that, the circumstances are different . Research,d in the five factors drive how and when customers respond to recalls. First, awareness of the recall, severity of the risk posed, the proximity of the risk of the product on the shelves today, how they handle the recall, and then the reputation once the recall starts. With gm, it is the proximity of the risk. The models most affected have been off the shelves for the last four years, so customers do not feel the risk directly. The numbers clearly bear that out, gm sales are up for two percent last month, 13 last month, but it is a sign of the conventional wisdom. One would think that potential buyers would hear the car recall, and think, i will buy a ford. Found is theve reputation damage takes longer to filter into Consumer Behavior and the pattern that we are seeing with gm is actually more similar to that which we saw with lululemon, despite being in different categories. The impact was not seen until six or nine months later. We think thats the case with gm. How much does cost play a role here . Gm stem some of the reputational damage, potential damage to its sales by offering consumers more incentives, discounts, rebates, the sorts of things we saw a lot of before the financial crisis but have become scarcer as companies become better managed . They absolutely make an impact and we may see that later in the year it sales slowdown. I think they have been reluctant to do so because the models on the shelves now are not the focus of the recall. That is often a triedandtrue trick used in the Auto Industry and we may see some of it later. But we think there are a lot of shoes left to drop in this instance, and the damage on their reputation will still have an impact, but delayed. Will we hear about more incidences, more crashes . There are likely to be more congressional hearings. There was a report yesterday that as many as 74 deaths could be associated with this recall. There are victims whose names have not been released yet, stories that have not been told. An awful lot it to be really revealed about who knew what and when. Why does it take so long for this reputational damage to take hold . Lets consider target. Target suffers a massive data breach. People hear about it and you see an almost Immediate Impact on sales, but thats not happening with gm. Good example in the sense that they had not put their finger on exactly how this unfolded, and those consumers felt immediate risk going to the store and using their credit card and putting their identity and privacy at risk. In the case of the gm recalls, the vehicles have been off the market for four years. The models on the shelf are not as impacted, so the sales cycle and a change in behavior takes longer to filter in. In the case of lululemon, those recalls were initiated in march 2013. In the second quarter, they saw a 20 sales increase, as well as the third, but it was not until the Fourth Quarter that you saw a drop, but they were still growing. We look athink, if certain industries, it affects different consumers in different ways . If you look at lululemon i shop there. Did i actually care about the recall . Maybe not. Do i care about the comment from the ceo . Maybe but i like their pants. When you are talking about tylenol or a car, that is a different situation entirely. Another example of the severity of risk. I spent some money on yoga pants that are not completely opaque, whereas in the case of tylenol, or even in the case of a death with gm or toyota, there is a more severe risk. It depends on how much of the risk is embedded on the products on the shelves. If they are currently embedded, you will see a significant change in behavior right away. If it is not so related to what im buying now, it will take more time to filter into changes and have an invitation. The consensus is General Motors did not handle these recalls well, at least the initial phase of the recall. Mary barras first testimony to congress. To what degree do consumers care about that, and if they do, what does gm need to do better . This is a tremendous opportunity. Customers see these recalls as a rare moment of truth predicate to see whether Companies Care about their profits first or whether they care about the best interest of their customers. What the opportunity is when one of these crises occurs, is to go beyond expectation of customers and show them that you are putting their best interest first and not focusing on limiting legal liability or financial cost. How do you show the customer that his or her best interests first . An instance that i think of is General Motors coming out and saying we have not worked out all the details yet but we are committed to doing the right thing for those people that have been the victims of this defect, and we will compensate those and not hide behind our bankruptcy filing. Thats a demonstration that they will put the victims interest first and not try to minimize their cost. Things like that that show honesty, transparency, and integrity. Your thoughts. Hopefully, the automakers were listening. Coming up on market maker, it is time to play ball with one of the owners of the oakland as and ask him why he wants to move the team. You are watching market s here on bloomberg television. Im Erik Schatzker. Is the coowner of the oakland athletics, one of the most successful smallmarket clubs, but he wants to move the team to san jose, which is how he earned his colorful description. San jose is now suing the league, hoping to take the case to the supreme court. Lew wolff, welcome. Thanks for the sweet introduction. , oments before why cant you make it work in oakland . We are not saying that we cannot, but we share a facility with the raiders, a very old facility i have heard. Spending seven years to explore how we might stay there. Its difficult, in california especially. We are not looking for public money because there is none. What is it about the fans . Do they feel this is an oakland team, dont move out of our town, is that the big issue . I think so, but most of the fans come from outside the city, not too far away, but it is the oakland as. It, buttill look at its been very hard to try and implement a facility that will 700 or 800 million. One of the reasons the league opposes your efforts to move oakland to san jose, territorial rights over the bay area. Why not find a city that Major League Baseball would approve . We want to stay in the bay area, we are a bay area team. We are not moving to timbuktu. At the end of the day, isnt it just a business . To stayor us, we want in the bay area and continue the tradition of the as. Why do the giants get to have domain over the area in new york . I think your next guest should be from the giants to answer that. San jose is suing the league and it is getting a fasttrack hearing in the court of appeals, no small matter. You are a Major League Baseball owner. Can you support an effort to sue the league in any case, one that would ultimately end Major League Baseballs antitrust exemption, which is something people say adds value to clubs like yours . Being not suing, i am sued. I am one of 30. I have a theory on attorneys. I dont know if you are attorneys. If you ever go on the barter system, they would starve to death. I am not interested in lawsuits and legal actions. An interesting situation. San jose is suing the league in an effort to help a compass what you are trying to achieve. I would rather achieve that through negotiations. I do not support any lawsuits unless they are really important. Why not sell the team . You have done so well financially since buying the team, now embroiled in a legal situation that you do not want to be. Why not walk away . Will igh note when will be when we have a new facility and receptive fans, and a good experience. None of us are going to lose on this this a meal team. Not that we are so wealthy, but that is not the goal. It is also generational. Like a lot of ownerships, we like to keep it within the families that have owned it. Movets say the effort to the team to san jose is not successful, hypothetically speaking. That needsave a team to play, you have a lease buyer next year. What happens . We are having good conversations with the authorities in oakland about an extension. They have put a deal on a table that you have turned on already. It is not quite correct. We are close enough on the deal points that, i think, soon we will come to a mutual accommodation and have the extension we need. When . Next couple of weeks, i hope. There are some approvals necessary. The people we are dealing with right now are very intelligent and working with us. It extensionould before, enough time to get you to san jose . It will be a 10year lease. We will find out what happened during all that. I just dont know. Feels orason i ask, it looks like one gigantic game of chicken. Somebody has to flinch. There is a team, they need to play, they need a place to play, and able all work out some way. It sounds like it is. The commissioner of baseball, when he got involved, said that he likes ownerships, and most of them are this way, which put baseball first, and the team a close second. It is an institutional activity. Almost every ownership feels responsibility beyond just the internal rate of return. Those days are over for a lot of the owners. They are more interested in winning a game, having a stall improved. I love the objectives. 99 of the owners, it is not a money thing, even though money seems to be what you like to hear about, salaries and things like that. When somebody spends 2. 1 billion to buy the dodgers, they are not looking for a return. Some of them are in it for fun, some are in it for money. If you open up that investment, which i have not, i think it probably does not have the highest rate of return, but theres a return. They bought a brand that no one else in the world has. You live in l. A. In the last few weeks, did you consider looking at the clippers . No. I used to be an owner of the golden state warriors, but i have enough on my plate. Theew, people forget that as do a lot with little. You are leading the al west, a record of 3622, scoring an awful lot of runs. And lets not forget, this is the club that billy beane built, the moneyball club. Aat happens to the as in world when the dodgers can sign a tv deal that generates more revenue pretty much than you bring in in total . We are part of that here the better the dodgers do and yankees do because of revenuesharing . Not just that but being part of a competitive balance. But how do you stay competitive . How do you recruit players to your team . Its simple. You hire billy beane and his crew. They have done a fantastic job. Billy is an owner. It has worked out. We like being david to goliath. I have to admit, we have done pretty well. Last question, who should succeed bud selig as commissioner . They have a committee for that. Im not on it. Who would you love to see . Tom cruise maybe. No, i really do not know. , it is a topnotch committee. They will go through the candidates. We will all have a chance to bet them. What kind of season will we expect from the as . We happen to win a game here last night, if you noticed. Taking the field again this evening. Thank you so much for being here. Lew wolff, coowner of the oakland as. The next tory might be as amazing. Why a Power Breakfast means more than just food these days. This man next to me put a new york landmark to the test. See what a 1000 haircut looks like . Erik is going highend. Regencyork citys loews hotel has been attracting dealmakers to its power that for decades, but now it is offering more than x with a side of bacon and hash browns. I went inside the new spot to grooming. T out power you have heard of the Power Breakfast, that ritual gathering of wealth and influence every morning at the loews regency on park avenue. Now there is a new experience with a well groomed dealmaker. Im Erik Schatzker. I am here for power hour. As much pampering as you can squeeze into 60 new york minutes. Today that is a new york haircut, my first ever manicure, and lunch. Have the care parked and a driver waiting saying i need to go before they even arrive. This is the man behind the power hour. He has a famous following. You ibaka trump, gwen at paltrow, even tennis star rafael nadal. Nadals time i have cut hair, he has won the u. S. Open. His signature cut costs 1000. Today, we sell more than a haircut, you sell and experience. Years, his salon was on tony madison avenue. He moved in may after the tisch family car about 10,000 square feet for him in the newly renovated regency. I always said i would never leave madison. Think, is to be a part of the tisch family. For me, its an honor. Chairman oftisch is the Loews Corporation and a longtime client. It was his idea to include a highend spot in the hotels makeover. I was sitting in the chair one day a couple years ago and said we are thinking about making a major commitment to creating a salon, would you be interested . So they became partners. How much of a difference can a facility like this, julians name and reputation and talent, make to a regency . We think it makes a big difference. It tells the story of the 100 million enhancement in ways other than an new lobby, new carpet, wall covering. But i wonder, is 1000 to much to ask for a haircut . I do not set his pricing. He knows his clientele. He does not set my hotel prices. When we check out, we think you will be pleased on the return of expectation. The same is true at the salon. Voila. Now you are ready for business. First of all, i love you in every minute of it. Haircut, i male somewhat understand if we are talking about 10th avenue and 14th street and we are at sally hershberger. But if we are talking about icons and titans, i have been there, billionaires, they have air coming out of their years, not on their head, and things ticking out of their teeth. It is women, too. It. Afa wants it, its worth he is only getting it once in a blue moon. Im not sure if those old, rich guys are getting a haircut. But what do i know. Live from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and stephanie ruhle. Merger mania in the Food Industry. We will see what is behind all of these deals. The credit card tinier sams club will be the first to use the safer chip and Pin Technology in its network. Bourbon boom. Growing popularity may lead to a shortage. We will talk to the head of the company that makes the legendary Pappy Van Winkle. Welcome to Market Makers. I am stephanie ruhle. I am Erik Schatzker. I will admit to being a pappy fan. Is your day. It is, indeed. It is time for you to get to work. Read the news. The top business stories around the world. One of the easiest airports opened a 4 billion terminal. Terminal two is designed to ease crowding at heathrow. They are limiting flights for the time being, hoping hoping to avoid disasters from back in 2008. Fund, iex group could shield traders from predatory habits of higher frequency traders. The Norwegian Fund is europe possibly get equity investor. He stanley cup gets underway. The kings were versus the new york rangers. Finalsks run of the owner, madisonor square garden. I cannot wait for the faceoff. I feel like the stanley cup finals were played last weekend when the hawks and kings squared off. The rangers are in it to win it. Broadcaston, the networks, they scored big. One of the biggest players has agreed to measured tv shows viewership over a sevenday period. Networks will get paid for all of the shows we dvr. Paul, walk us through what this means. Agreed, doup m has you think the rest of the industry will do it . They are one of the largest advertising buying group on madison avenue. When they moved, a lot of industry follows. Time of viewing is being shifted over the last 10 years. Seven days seems to be the window where most of the broadcasters feel like they are capturing their audiences. Long . Did it take so , we have talked about how our kids do not watch. They watch when they want to. So do the rest of us. Broadcasters,he the advertising clients, and nielsen. Nielsen had to come up with a ratings mechanism that would capture the viewing into a get and do it in a credible way to get parties involved in it. Is nielsen as important as it once was . As important as it has always been. Nielsen is still the currency that is most widely used between the advertisers or agencies and tv networks. Google was in that business and they got out. It did not work. They are not part of the old group of of the small nielsen networks and ad agencies. Who drives the bus . It seems if you could get a thirdparty to work with the cable companies, maybe some of the broadcasters, hulu for example, and satellitetv companies, you could get all of the data you need, not just the sample size data that comes from a few thousand nielsen boxes. Boxorking with a set top manufacturer to pull out the data of what people are watching, when they are watching it, all of the real detailed information. Nielsen is the currency by which all of these tv ad spending is transacted every year. It is going to be meaningful over time, but what has to happen is everybody has to embrace c7. Everybody being all advertisers, ad agencies, really embracing it and saying c7 is going to be our new currency. A lot of people tend to follow group m, but lets see what happens going forward. It the advertisers, the firms, the buyers, the broadcasters . I think it could be the broadcasters. It is a question of what they can do with their pricing. Presumably, they can get paid more for a larger audience over time. That is important because broadcast television continues to lose share to Cable Television and to all of the internet viewing. Tv networks are trying anything they can to bolster their presence with advertisers. Thank you for giving us the latest. The Food Industry is taking a big night out of m a this year. 71 billion in deals have been announced in the past six months. What is driving these deals . To answer it, ken shea. Ken, two weeks ago, hill shire. Today, hill shire. How does this make sense . It is symbolic or reinforces three trends we have seen over the last few years. The industry is growing slowly and that means Large Companies are looking for Small Companies to foster growth. That is taking the form of buying companies with exposure to organic and natural foods. The second is a rise in appreciation of the economic returns. It is slow growth, but cash flow yields, you talking high Single Digits and low double digits. That is attractive. I think foreign buyers, newfound Investment Groups are finding this group attractive. If we are moving away from processed foods, why are we talking 6 billion for processed sausage and hot dogs. Those of the last things you want to eat if you are a healthy eater. A lot of people eat meat still. Pride,on and pilgrims these are the two biggest meat companies. Hill shire is one of the few assets that come along every many years that can plug in well to what they do and that is to have a full or folio of branded meet products. It is a highly recognized brand and good products and i think all meet companies will benefit with this consolidation. Is not necessarily your expertise, but from a consumers point of view, is it a good thing to have a vertically integrated Meat Processing company . Isnt it better is hill shire is an independent buyer of raw Meat Products . So that it can see and assess what is getting before stuffing it in a sausage casing . That is a good question. That was posed to smithfield before god bought out. They were a vertically integrated port processor and they had critics who said your returns on capital for being vertically integrated was volatileigh, handling commodity cycles and was hurting business. Food safety is an increasing issue. The fact that we can control from the beginning to the end of the cycle is going to be important. Depends where you are in the cycle when the cost is high. It is great to be integrated because you can control your cost. Hill shire will have a tough problem being an independent company not being vertically integrated. Thank you very much for joining us. Ken shea is a senior food analysts. Was that a neat pun . I am contagious. Yes, indeed. Coming up, what happens to your virtual life, your web accounts, when your real life comes to an end. This is Market Makers. We are streaming on your phone, tablet, bloomberg. Com, apple tv, and now fire tv. Welcome back. It is time for bloomberg west. Industrylike the auto will have elon musk to deal with for a few more years. He says he plans to remain ceo for at least another four to five years and he will reassess. He is chairman of two other companies. The Justice Department will review the rules on how Internet Radio leader pandora pays songwriters. A judge has rejected their argument. Rules date back to 1941. It may be time for an update. Facebook is buying a mobile data company. No word on what the social network is playing paying. The company lets smartphone download apps using temporary data allowances. Managing our digital lives is challenging enough. What happens to you virtual self after your real self is gone. I mean dead. We are talking about the digital afterlife. Kiersten, what goes on in the digital afterlife that we do not yet know . We livesomething this existence. It raises the question of how do self intoese immortal the afterlife. It could get hacked. It continues to send updates. Companies do not know how to intoe or what processes go transferring accounts or deactivating accounts. What do you do . Way inre leading the helping people take control of their Digital Assets. We make sure people come to our website and organize and store all of their assets. Are people waking up this is a morbid topic whats be honest. Our people waking up to the fact that there are real risks . Their children, other family members, companies they work for . This is no different than buying a car seat for your new baby. You are not thinking about car accidents, youre thinking about being a responsible parent. That is what we think this type of planning is. Boy who sent a delayed facebook message and his family could not do anything about it. They did not know how to use facebook, they did not know his password. Your social media account freeze . We do not think you need legislation. Everplan andto document what accounts you have and who you want to have access to them when you are no longer able to. It is important to know. It is a legal gray zone. Who gets access . Were seeing about seven states have adopted these acts. There is even the universal Law Commission that is the fiduciary of the Digital Assets act that will give legal representatives the same access as they would physical ones. This have been talks for legislation. Does the court ruling giving europeans more rights in this regards . As i understand it, the top court affirmed this notion of a right to be forgotten. Tople could take action clear stuff out of the internet that you do not want to be there. Issue of howhis does a user maintained privacy online. Gives users the ability to init doesnt show up searches. The user is taking a little more action. It is all sorts of different ways in taking control. It does not quite delete the information. Remedy or aa legal core rolling or congressional action help . The legislation can help. It brings awareness to this issue. Digitaleed to realize assets need to be taken into account. They need to think about what happens to their twitter account. If there are millions of facebook users that are dead, they have xook amount of billions of users, do they need to take into account a certain number of them are in the ground . We are getting to the point three facebook users die every minute. We could get to having more facebook users that are dead than alive. This is a way a representative can terminate the account or create a memorial account. Social mediamean accountable have a number i can dial one i have a facebook issue . This would be an issue that would require a Customer Service department. What happens now, people can write into facebook and they can request the account becomes memorialized. I was telling you after my brother passed away, his account on facebook got hacked. I was getting messages from my deceased brother, telling me that i should lose five pounds of belly fat before the summer. What do you charge for the service . There is a basic account that is free and a premium account that costs 35 a year. Thank you for joining us. When we come back, the credit card that may change in american retailing. You can only get it in sams club. It is time for bloomberg to take you on the markets. U. S. Markets, lets take a look. Adp number came in light. It may be a little bit about the friday jobs number. I want to say things are green across the board. It has been going up and down. We are going to talk about fuelcell energy. Quarter loss widened. Pandora is down as the government will review songwriter royalties. The rules in place now, the law was put into place in 1941. They need to be reviewed. The artists hate the way they get paid from pandora. They would rather it be more akin to when songs get played on radio. Always thought they were taken advantage of. I am not saying pandora is right, but unless they use pandora or radio stations or spotify, what are they going to do . Yodel outside our office . Samsung trying to avoid a disaster. They have come up with a safer hasit card sams club come up with a safer credit card. Growing concern about the shortage of bourbon. Live from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and stephanie ruhle. Welcome back to Market Makers. I am stephanie ruhle. I am Erik Schatzker. Steele, whose products you cannot buy at home depot. How has this company produced record sales while not selling at bigbox retailers. Fred white, nice to see you. How does it work . Home depot has been a successful model for several companies. Bigboxsteele avoided retailers . It is a matter of choice. We are privately held and we like to have a positive retail experience. When you come in to look at one of our products, the is you come into one of our retailers and everwill say, have you used a piece of Power Equipment before, what are you going to do with it, are you a homeowner . We try to get the right product into the consumers. We manufacture several different brands. Did you have your moments where you thought you were going to change course, call it a day bigbox yourself to a store . We are a privately held. Ompany mr. Steele said if i was in this business to make money, i would have gone about it differently. We are built for the long term. Not six months, oneyear, two years, it is a long vision. I grew up north of the border where people use chainsaws. Then, it was host barnett is a swedish company. How does the battle play out here . Husqvarna went over to the big suck the dark side and we have avoided that. We are the number one selling equipment in the United States and canada. Our track record speaks for itself. What is difficult for you as a Business Leader . You have 2000 workers. What keeps you up at night . Is it raising minimum wage, what is an issue for you . Because we are privately held, the minimum wage is not an issue. We pay Competitive Salary and benefits to our people in virginia beach. The Affordable Care act is a concern. Our Health Care Costs are escalating. Skilled labor is a challenge for us. Looking for good machinists. Lks thatut 20 onthejob training. It is a challenge. Businessch of your have you automated . Have 120 robots in our plant in virginia beach. Let me qualify that by saying that we have never laid off one person. We train those people and we go to them and say ok, if your job is eliminated, we will train you and you will be placed somewhere else. How long do your employees stay with the company . Average in the hourly population is over nine years. It is unusual in a manufacturing facility. This is a great story. Even in 2009, i would meet with the people and say you might be working in crankshaft, tomorrow you may be out in pistons. After that, you may be cutting the lawn. People said we know what youre trying to do. We are ok with that. Being private is what allows you to take this approach . Yes. Would you say the way that Public Companies are managed in america with this slavish devotion to shareholder value is unhealthy . It is hard to comment. I am a product of my own environment. I work for stihl for 43 years. Cannot consequence i authoritatively speak to because i have never had the experience. You are a Corporate Citizen in the american economy. Working foreem that a privately held company, when you can focus on longerterm has no bank company loans. That is a nice place to be. It does give you a slightly different perspective. Feeling that ia like the American Dream. It was a pleasure to meet you. Continue the great work here on bloomberg. This is the American Dream week. If you missed any of our interviews, you can watch them and apple tve tv or streaming live 24 7. Stay here. We will have more after the break. Welcome back. This is Market Makers. I am Erik Schatzker. Step outside the Conference Room and take your next meeting on the road. That is what the ceo of linkedin is trying to deliver. Cory, what do you talk about as you were walking . We talked about walking. This is an interesting trend going on. Increasingly, and Silicon Valley, the power lunch of technology is the power walk. Participants is the ceo of linkedin. We took a walk and talk about walking. One of the reasons i like it is because people are more comfortable. If you are in an office situation, you are looking directly across one another. Interesting stuff about the notion of walking and how it grew out of the culture because they were growing so fast and running out of conference space room. Now, they have plenty of room. The president likes to do business while he is walking. Who else is big on this idea . It has become a big thing. Mark zuckerberg does the same thing. I think it took off with the the biography of steve jobs, where we found he did some of his most important meetings walking. Benefits, nott of least of which is the health benefit. Isone of our folks responsible for training and fitness here. Great idea. Ve a in addition to reducing the demand for Conference Rooms, you would be in better shape. It is doing your meetings while you are walking around. This was something they had already started and started sharing that as a tip to people in the office. I heard it and found it so clever. Me an i just say give break . So clever, this New Invention to walk and talk. Give me a break. I am pretty sure people walk and talk in new york city for decades. They do not need to have a chat room about it. It is about getting work done. This is ridiculous. How many times have you sat in a Conference Room with some person who is not a thing about what theyre saying, flipping through the pages of their powerpoint slide to try to convince you to do a story or explain a new great business model. It forces a different kind of conversation. How many traders have never put there for feet behind the seat because they are, yelling behind a desk all day. It is not a new idea. It is just about working. Come on. I think this is a trend a trend to stand up and put one foot in front of the other. That is the most ridiculous thing i have ever heard. I am totally with you on this one. It is a rare moment in time that Erik Schatzker is stifling siding with me. I must be right. You dont find it unusual that you are agreeing that something may be wrong in the air. To meet withe want me, they have to meet with me in a walk. It changes the dynamic. To see so many people in the valley doing that. If you want the most important meetings with these executives, it will not happen in the office. Interviewing start on your treadmill. The cameraman walking back and forth for an hour, he was the one who was sweating. Drink . About meat over a that happens on occasion. That still happens. It should. At a bar,are standing not sitting, does that count . I have yet to see the bar with a treadmill on its. Is k there you are just trying to get credit here. The walking idea is so you can get Digital Credit for the dang on your wrist . The way that Silicon Valley is spaced out, there is no tradition like there is in the east coast or meeting over dinner. There is a lot more about the walking and the cycling. You may want to consider having ron burgundy come in as the guest speaker. Cannot wait. Corey, thank you very much. And he has given up on taking meetings while seated. Up, the bourbon industry over a barrel. There may be a shortage. We are going to speak to the head of the company that distills happy van winkle. I am Erik Schatzker with stephanie ruhle. The news was enough to drive you to drink. We are possibly facing a bourbon shortage. Tracesof buffalo Parent Company is here. We know bourbon is popular, but come on. A shortage . When we were doing the planning, on pappy van whiskey1991 is when the was made, we had no idea demand was going to take off. Tot whiskey was all we have sell today. You cannot make it overnight. It is 20 years old for a reason. Today, we are making Pappy Van Winkle for 2037. Very small volumes. Why not make more . We are making more. 50s ispened in the people made a lot more. In the 1980s, there was a lake. Way too much bourbon. The industry collapsed in the 1980s. There was excess whiskey. People have become conservative. Contracted and now we are suffering for it. Why dont we see a reflection of this in bourbon prices . Our philosophy is not to increase prices because to let prices go up and let it go to the highest bidder seems wrong. Our approach has been to allocate the whiskey. We have a fulltime person and her job is to make sure that we spread the whiskey out that we as we possibly can and try to keep prices reasonable. What do these costs . Our resale price would be about 130 to 140. In the stores, the prices are higher. Blantons would be in the range of 55. Eagle rare would be in the 30 range. Buffalo trace would be in the 20 range. Eh taylor would be in the 70 range. They crossed the price spectrum a little bit. Is there any sort of supply rush game plan you have to try to fill it . The latest problem is there are not enough trees coming out of the forest to make new barrels. We can only make bourbon in new, white oak barrels. Bottlenecks everywhere. There are manufacturing obstacles. Not all of the logging crews have come down. We need to have a commercial because it is time for a drink. We will be back. That is going to be it. I am going to be on assignment tomorrow. The founders of Juicy Couture will be here. You have seen me in those of the lower sweatpants before. Sweatpants before. I am sad i am going to miss that. I will see you in a few days. Fornow, it is time bloomberg to take you on the markets. Alix steel is next. Stocks are fluctuating. Me is the equities derivative strategy just strategic at partners. Would you make of the market right now . People that i talk to are concerned about the selloff. The risk might be to the downside. I do not come across anybody taking that position. It, theyresaying just not doing it. Mario draghi is likely to based on the comments he made last time. Maybe negative deposit rates for the lowering of the other rates. Talking about where traders are, you are seeing activity and facebook. We saw an interesting trade. Someone who seems was a long be june 62. 5 call is now rolling it to july 62. 5 calls. He is closing the june to buy the july. This happened after facebook said it was going to buy the mobile data company. That is true. It is unlikely to establish direct correlation. It seems like along with all of the names and social media, facebook, twitter, all of those stocks hold out. Facebook is trying to make a comeback. To bet forontinue sustained recovery in the stock price for facebook, given Everything Else sold out. You have been interested in autonation. Back in april, you had a strategy involving options. It was by july 55 call, cell july 60 call, cell july 47 put. Does this still hold . We are sitting between the two strikes. It is working out. Now, i am looking at further because time period i like this company. My new trade is going out to january. I want to buy the january 2015 two 2. 5 call spread. If this works out, it gives me a nice 41 payout. Cover multipleo learning cycles and the whole and the holiday sales period. It is more of a position. If we see the market pullback , and we see autonation on near record highs, using the. Ongerterm those are not risks i am not worried about what happens in a week or so. I want to be in this trade. It defines my. It is only 1. 5 dollars that i am listing. I will probably look to sell some of the puts for the downside put to reduce my cost basis because i think the company has been doing a really good job of buying back shares. No dividend, but they are buying back shares at opportune times. They bought about 2 million shares around 48 dollars earlier this year. They have been good at it. Bullish on autonation. Thanks so much. Welcome to money clip. I am adam johnson. Small business, egg business for Goldman Sachs chief. This is an exclusive conversation and we will share it with you. To london airport looking the future in hopes of avoiding the past. In nation, a new argument against the Keystone Pipeline and it is not a bout the environment. Booming. And finally, it is a commencement speech