Lower gas prices are not the only way to make money. How to position your portfolio. Is america ready for samesex marriage nationwide . Ruth Bader Ginsburg make some comments about a case before the Supreme Court. It is a bloomberg exclusive. Welcome to Market Makers. I am a lucky Stephanie Ruhle not only because you are with me but matt is in the house. It is thirsty thursday, nba allstar weekend is upon us. Although im sad Erik Schatzker is off skiing in deer valley there is no one i would rather have near by my side. Lets kick it off with a top stories this morning. A ceasefire in ukraine. Will this last longer than any of the others . Leaders of ukraine, russia germany, and france agreed on the choose after 18 hours of talks. Here is russian president Vladimir Putin. It was not the best night of my life but is a good morning because despite all the negotiation difficulties, we agreed on the main thing. I like to know what the best night of his night was. Ukraine has promised to give more power to cheat of dominated by prorussian rebels. Those rebels however will not have full autonomy. European finance ministers could not break the stalemate over the greek deadlock but may bes leaders can. They are meeting in brussels today. Angela merkel will be meeting with degrees Prime Minister for the first time. He wants a new deal with fewer strings attached. He says current austerity measures are crushing the economy. Consolidation in the Online Travel industry. Expedia has agreed to buy orbitz for 12 a share. That represents a 25 premium to orbitz Closing Price yesterday. The deal hasnt an enterprise value of 1. 6 billion. Expedia recently bought travelocity last month. There were three Winning Tickets in the giant Powerball Lottery jackpot. The winners will split 564 million. The Winning Tickets were sold in north carolina, texas, and puerto rico. It is the fifthlargest u. S. Lottery prize ever. Whenever i fill in for erik i feel like i really need to davos. I was in the office pool. There was an office full pool . I was not in it . It was that side of the office. We are going to move on because my feelings are hurt. We are going to take a deeper dive into the ceasefire in ukraine. Ryan chilcote, im not sure if he was in the pool. He is in london and peter cook has reaction from the white house. Ryan, this does not mean the crisis is over correct . No, it is just a first debt. It sort of agrees three simple things. A ceasefire that kicks off on saturday night at midnight. Two, the two sides are supposed to pull back heavy weapons. Three, you end up with a demilitarized zone, and no mans land where there are not supposed to be any armed people 30 miles wide between the two sides. Finally, it sets out a specific schedule for a political settlement of the crisis that is where things get pretty murky. What are we hearing from the white house . No official statement but we did hear from the president s ambassador to the United Nations samantha powers. She says the u. S. Is hopeful from the ceasefire but want to make sure things are implemented. A healthy dose of skepticism here in washington on whether this agreement can hold and whether or not it can lead to sustained peace in the eastern part of ukraine. They want to wait to see exactly how this plays out. If Vladimir Putin is maybe willing to step back a little bit ryan you have as good a grasp on russian politics as anyone. Doesnt look like he is willing, because of sanctions imposed on him does it look like he willing to step back a little bit . May be, early days. What this does is at minimum, allows the russian president to ever more sanctions. There was a pretty implicit threat from the europeans and the United States that if these talks failed there may be more sanctions against russia. In addition stateside they were talking about arming the ukrainian military. I think the argument for giving the ukrainians weapons sophisticated weapons from the u. S. That will not hold up to well. At least until that deal also part, people will say lets give diplomacy a chance. You think it will fall apart . I dont know. All the previous ones have including the ones reached in minsk, normandy, geneva, milan. I have been to all of these deals over the last months. The one thing that has changed here is, first off, the russian president and the german and french leaders were personally involved. 14 hours together in one room. The second thing is, if this does fall apart and the german chancellor and the leader of france decide that Vladimir Putin is to blame for that, you can be pretty sure they will be angry because they spent a very long day, lots of effort, this has been going on for a long time. They feel like they have been burned. I think sanctions will follow pretty quickly if they think he is to blame for falling apart again. I know we are in a ceasefire, so maybe not a tough talk about this, but Arming Ukrainian rebels. They are not in nato or the eu. Do people in washington not learn from their mistakes . We have arming the ukrainians for some time with nonlethal weaponry and the push here in washington, as you know, has been to go further, to give them some real firepower to defend themselves. For the moment that is on hold because of whats playing out. It is pretty clear that if the ceasefire holds, they will not be moving forward with that, but it will still be a Pressure Point that the u. S. Can bring an maybe even help bring Vladimir Putin to the table. It is not entirely clear but that threat will remain out there, as is the threat of additional sanctions but i dont think they they will move forward with the ceasefire in place. Thank you very much, peter cook, and ryan chilcote. Hopefully, po neither of them were in the they are not even in our office. Ol. Who was the organizer . I dont really feel like this is the thing we should talk about on live television. Big news out of General Motors at the chicago auto show. They confirmed they will produce the chevy volt that they unveiled last month in detroit. Joining me now is the president of General Motors north america. Allan beaty, thank you for taking the time. What will this do for american jobs . Car sales have continued to recover, new hiring. Are we going to see serious investment with this all electric bolt . The bolt ev concept, as you said, we showed it in january, incredible response. Frankly, as we expected. We want to move assets as we can. The announcement today is that that that we will build the vehicle in michigan and we have also announced our initial funding of 200 million to prepare for that. We have a vehicle here that the world has never seen, 200 mile range, full electric, and we believe with the government incentives, we can bring that vehicle and customers can pay 35,000 to drive away. Really a game changer. So you would be a competitor to the bmw i3. The only other car i can think of in this class, maybe the previous. How will you do against the competitors . The prius. We are leaving it up to the customer. Stunning design, 200 mile range and we believe the price tag makes it affordable. We think it is the right vehicle at the right time. I want to talk about a few other vehicles although this is pretty exciting to see this car. I have to admit, it looks pretty good. What else do you have on the product front plan . The equinox has recently slipped behind the rav4. The canadians would love to hear that you will be investing more to refresh that model as well. For the first time, the compact suv segment was the largest in the u. S. Last year. We are at full capacity. What we will it unveil in an hour or two in chicago is the 2016 model. Beautiful new siding, new technology. Right vehicle right time again and excited to pull the cover off of it. You have been selling a lot of trucks, part of the reason that you delivered higher north american margin than estimated. Does that continue . Trucks, suvs, the growth has been insane, but it is all because of lower gas prices. Or has it been . We are definitely capitalizing on the fact that lower fuel prices do give a tailwind. Our truck sales have been outstanding. We also launched our midsize colorado truck, so we have three trucks in our strategy, the only one in the industry. Colorado and canyon are flying off the dealers lots. Can you speak to the report that gm is actively considering buybacks or possibly increasing its dividend . No, i cannot make any comments on that. We have a team that looks at that. I really operate the business. I am looking at exceeding a great 2013 from a sales perspective. That is where my energy is. What is the biggest challenge in making that happen . We have great momentum. We had an excellent january, a fantastic growth yearoveryear. We have good momentum and we need to capitalize on that. This will be a big industry this year. It could even go beyond what people are forecasting. We have said 16. 5 to 17, but we will see. We are very optimistic. I was talking with Sergio Marchionne a few days ago and he says he believes this is an area of Growth Potential for them because they have fallen so far and can only rebound. Do you see europe starting to truly pick up now . I think it will be gradual. We have made good progress. We have grown our share with our opel and vauxhall brands. We have momentum but it will be slow growth. It is a tough market situation. Thank you very much. Now that business is firing on all cylinders, i hope for me it is 8 cylinders. When i saw the bolt in detroit, it took me a couple of days to warm up to it but now i can really see the utility of it as a city vehicle. It looks pretty cool. Would you get it in that green . I like it better than the orange. When we return, shares of cisco up 9 today. The company is coming off a strong earnings report. We will speak to ceo John Chambers. Root greater Ginsburg Ruth gated ruth Bader Ginsburg talks about how americans react to samesex marriage. Welcome back to Market Makers. Im Stephanie Ruhle. You are going to get the top headlines from around the world. In egypt, a judge has ordered the release of two al jazeera journalists that hadnt held for over a year. They were set to be retried on terrorism related charges. One of their colleagues was freed earlier this month. The reporters were accused of supporting the muslim brotherhood. Jetblue airlines is taking advantage of those loser restrictions on travel to cuba. The airline is adding an extra charter flight between tampa and havana. They already fly three times a week to the island. A former korean air executive has been sentenced to a year in prison for an onboard tantrum over macadamia nuts. The woman, the daughter of the korean air chairman, did not like how they were being served. Her behavior sparked a debate over whether familyrun conglomerates in south korea have too much power. She got a year. It was not about im allergic. It was the way that the macadamias were served. Very rude. Cisco is hot off a stellar Quarterly Earnings report. The stock seeing a big pop in early trading after it reported a 7 jump in revenue but it is also facing new challenges from facebook and others who want to challenge their dominance in networking technology. To talk more about the changes in the Network Space and the jump in profits the 20full gains in revenue since taking over as ceo, John Chambers from the Companies Headquarters in san francisco. 20 years you have been there. Its a pleasure. I was looking at a huge boost in revenue. We were also looking at the 140 billion market cap you have going. I was baffled. You have to keep this going year in, year out, every quarter delivering 7 gains in revenue. How do you continue to wake up and do that every day . First, it is fun. We are in an industry that will change the way the world works. The network is at the center of all Technology Transitions from cloud to security to collaboration. Now every country and city and company in the world will become a digital company. That will allow for faster innovation and will allow cisco, if we execute right, to become the number one i. T. Company. That is a huge motivator. Lifted weights and slam this morning and got here for your broadcast. It is fun to get up every day and work with this great team. What was it last corner that made in such a booming quarter for you, and the kind of momentum that you think you can carry into 2015 . It was the balance around the world. We are back to growing again we are managing a tough environment. The geographic balance the u. S. Grew 7 , latin america 12 , europe and the middle east 12 . Germany grew 12 u. K. , 17. From a product perspective, our Data Center Products ucs server group, routing as well wireless grew 18. It was well balanced by industry geography, the best we have had in three years in terms of escort of a performance. Congratulations, but i have to ask, how concerned are you about facebooks new networking efforts . First of all, facebook is a good company. Cheryl and i share similar views when it comes to gender diversity and other issues. Facebook is in an area called white box, looking at how to do things differently. Take a step back. What cisco does differently from our peers is we combined 18 different product areas into architectures which allow our customers to produce outcomes much quicker. It is a different Business Model. In terms of moving away from the company, talking about white label competition in general, we think that is a great opportunity for us. We do not view it as a major threat. We are able to crisply identify how important security is how important architectures are, how important when you have a problem that the vendor and the partner you have their is there to help you through it. We are competing and gaining share against most of our competitors. So it is fun again. Cisco is back with a vengeance. The internet of things is one of the four fronts for cisco as a company foreforonts for cisco as a company. I recently got a device that can turn on my heater on the way home, can keep the washing machine going. What kind of internet of things stop is installed in the chambers home . Everything you just that. Everything is tied to a central location. We control our heating, cooling the tvs and what you are saying you nailed. Every home, every car, every company, every city, every company will become digital. Cisco is at the Inflection Point on that. With the internet of things, we not only tie the data together but we analyze it and get the right information at the right time. No better example than gm. We recently won an Enterprise Software license from the cloud across the board to security. The first time that we have done that. Gm has a Leadership Team that is reinventing itself. Cisco just won the supplier of the year award with them. I am so sorry, we have to go to commercial. You know i love the internet of things. Great quarter. John chambers of cisco. Live from bloomberg headquarters in your, this is Market Makers. Stephanie welcome back, i am Stephanie Ruhle. Matt i am in for Erik Schatzker, i am matt miller. Im excited to be here. I will be here tomorrow as well. Stephanie you will be here tomorrow. Matt is going to be in this seat tomorrow, do you know where im going to be at the end the at the nba allstar tech conference surrounded by nba allstar players and team owners. Talk about a big day for this girl. Matt it is going to be awesome. I saw adam silver the other day. Stephanie i saw are you familiar with adam silver, the nba commissioner . That is what happens they are here for the free snacks. I am excited about the bulletin, the top business stories of the morning. Allnight bargaining session has led to a ceasefire in ukraine. The question is, will it last any longer than those other ceasefires . Russia come ukraine, germany and france negotiated for 18 hours in minsk. Francois hollande says there is still more work to be done. The agreement does not guarantee a durable success in the coming days. It implies that we will remain vigilant while we exert pressure and continue with our efforts, which were undertaken thanks to the initiative that the chancellor and myself started. Stephanie the truth takes us back to sunday, Ukrainian Forces and prorussian rebels have been fighting for 10 months. Shares of electric carmaker tesla down as much as 9 today. Elon musks company ms. Target for car delivery and posted an unexpected loss. He claims the problems on Winter Weather and customers holiday travel. Tech ceos are skipping president obamas Cyber Security summit on friday. Mark zuckerberg yahoos marissa mayer, larry page and eric schmidt of google will not attend the conference at stanford. Relations between Silicon Valley and the white house have been strained after clashes over online privacy. The departing cochairman of Sony Pictures has defended the studio for paying female stars less than men. Amy pascal told a conference that the people should know what they are worth. People want to work for less money, i will pay them less money. I do not call them up and asked to give them more come a cause that is not what you do when you run a business. The truth is, what women have to do is not work for less money. Stephanie hackers exposed sony documents last year, that showed Jennifer Lawrence and amy adams were paid significantly less than male stars in the film american hustle. Matt they were worth a lot more. Stephanie their wardrobes and here alone. Matt the one thing that bothers me about american hustle, was looking at Christian Bale with that bald head and beer gut. I could not deal with it. Stephanie like bradley coopers rollers. Talk about amy pascals comments. If you want more money ask for i run a company, this is not a girl powered nonprofit. What is her obligation . She runs, durant, Sony Pictures. She is a successful woman. Is it not our obligation to help ourselves and other women . Matt no. Stephanie tell me why . Matt she is a human like everybody else, her job is to make money for shareholders and make good movies. I do not even think good movies is her obligation. Running a business in a capitalistic freemarket society she needs to make more money. Stephanie we used to hear that all the time, that ceos were only needed to do best for their shareholders. When you see ceos change the way they run their business to be good for their consumers, good for their shareholders and good for their employees. I would like to think that Sony Pictures, led by a woman celebrates extraordinary women in hollywood, maybe somebody in her position would make for Jennifer Lawrence and amy adams and say it is our obligation since you are the star of the movie, you should get paid. Matt there is an argument that if she tries to improve the lives for all stakeholders in the company, then she will, by doing that, make more money for shareholders. Stephanie lets talk about the Supreme Court. Those justices do not talk to reporters all that often. View news organizations have a Supreme Court reporter like we do. Ruth Bader Ginsburg sat down with greg store and our editor in chief matt winkler. One topic, gay marriage. The high court will decide whether it is a constitutional right for gay couples to marry Justice Ginsburg said americans are prepared to accept a ruling that legalizes it. The change in peoples attitudes on that issue has been enormous. In recent years people have said this is the way i am. Others look around and we discovered that it is our nextdoor neighbor and we are fond of them. Or it is our childs best friend. Or even our child. As more and more people came out and said, this is who i am. The rest of us recognize that they are one of us. There was a familiarity with people that did not exist in the beginning when the race problem was on the front burner. Because we lived in segregated communities and it was truly a wethey kind of thing. It is not so of the gayrights movement. I think it would not take a large adjustment. We should not speak much more about this because, one way or another, it will be decided before we leave town in june. Stephanie greg store joins us. Her argument are there any tea leaves . I thought this happened a year ago. There are three different cases. They have not heard arguments in the case before them now. They did a couple of years ago hear two cases, one involving the defense of marriage act. And also having to do with californias samesex marriage ban. This year, the big case that by all appearances will decide once and for all whether gay marriage is a constitutional right nationwide. Matt i think they talk to her about the notorious are bg rbg. There is a fad trending but thats lets listen to her response. When it first appeared, i asked my. Or, what is this all about . I did not know about notorious big. We had one thing in common, we both grew up in brooklyn. I think it is amusing. There are serious things on it. There are funny things. I have a supply of notorious rbg tshirts. I give them for birthday presents and two other people as well. Stephanie that would be Supreme Court justice ruth Bader Ginsburg and her thoughts on the notorious b. I. G, and her alter ego, the notorious rbg. Did you talk about her term and possibly stepping down . Yes, she said, im going to keep doing this as long as i feel like i can do it full steam and i feel like i can. I am not slowing down. She is one of the first justices to release opinions over the course of the term. I all appearances, she is working as hard and efficiently as she ever has. Matt if she were to step down now, then president obama would be free to appoint another Supreme Court justice. If her term ends naturally under a republican president , it would put that side of the court at a disadvantage . Right, and there were some prominent liberal constitutional law thinkers to call on her to step down before the Midterm Election so that president obama could appoint her successor. To some extent, she is gambling that the next president will be somebody to her liking. And that the senate, perhaps, would go democratic and approve a successor who is of her sort of view of the constitution. Matt very interesting stuff. She could be trying to stay apolitical. Greg she clearly enjoys this job he did she think she is doing important work and wants to stay on. I do not think she is thinking i will wait until the next election and then retire immediately after. She will stay as long as she can. Stephanie did she give you a tshirt . Greag she did not and i did not ask. They are available online. Matt stephanie a tshirt signed by ruth Bader Ginsburg, i would take one. Thank you very much. You can watch the entire interview on bloomberg. Com, plus tablet. I want to say i a view or send me know, say when i buy mark and includes at whole foods, do i bother to pay the cash or more money to get a woman no, i would not need to do that because i shop at whole foods because i know they do the right thing and pay their employees, men or women the same thing, and i hope that Sony Pictures and lions gate would also pay their women stars the same thing as they pay their men. I would like to assume they would do that, i trust that. I do not need to pay them more. Matt we will take a break. It is more than just cheaper gas, how investors can play the collapse of oil prices, stay with us. Stephanie welcome back, i am Stephanie Ruhle. The top headlines from around the world. Policymakers of Japan Central Bank are viewing extra stimulus measures as counterproductive. The bank of japan is concerned that loose Monetary Policy will cause the yen to fall even further. Before today, it had lost 21 . Since the central bank started easing. The worlds secondlargest Mining Company plans a 2 billion share buyback. Their earnings fell 9 last year after a drop in the price of iron ore. The cup and he has been cutting costs, but it could not overcome iron ores or 7 drop. 47 drop. The French Oil Company will reduce spending cut jobs and curtailed exploration. Taking into account, they reported a net loss of 5. 6 billion. Matt our next guest says a battle is brewing in the u. S. Economy. Oil is at the center of it. Currently at about 50 a barrel or west texas intermediate. Who wins and how should you play it . The senior port folio manager at white box advisor. Paul thank you for joining us. We have been talking about the winners of cheap oil as consumers as americans who pay less at the pump. As far as investors, a lot of people have been heading for the hills. How do you make money in this space . Paul we are looking at this at one side, you have the consumer getting healthy. Consumer confidence is strong employment figures that are very good, housing data is ok. On one hand, the strong consumer getting healthy pb on the other side, we had the industrial sector facing serious headwinds. Those headwinds are big. Capital spending decline, all those things. It will be a lot of activity between those two sectors. Stephanie how do Consumer Products companies defend themselves against the strong dollar issue . Paul it will be a big issue. It is more than that. It is the Competitive Pressures that we benefited from the last few years as the dollar was weakening. They could charge a little bit more. Here, what is happening now with the dollar strengthening it is become a competitive issue because our manufacturers have to be competitive. A european manufacturer or a japanese manufacturer come here to america and say we can reduce price a little bit more to gain share. These are the battles that have been going on. What we said on industrial side we are net short a lot of these multiline mobile Industrial Companies that may have 30 . We do not talk about specific names, but the kind of firms that have 30 of their business internationally and 15 to 30 tied to Energy Capital spending. Between those two headwinds, we think numbers will keep slipping all year. It will be a grind down. Matt are there any longs you put on in the oil patch . If people say, consolidation will happen as asset values drop, do you want to be with a buyer or with the bought . We do not know exactly which way oil will go, where we are in this range is where they are opportunities. One sector which has been strong is airlines. They are the biggest beneficiary of lower oil and the entire transport. Stephanie the consumers arent, because we havent seen prices drop whatsoever. Paul we see it when we travel. Matt ticket prices for columbus, new york, have been the same for 20 years. Airlines have had trouble with pricing power. Either they are number one or number two biggest cost. Labor number one, and fueled number two. We think it is a good time to go long on airlines. Right now, we are looking at more on the long side. It is a direct beneficiary. If you are a trucker, a lot of that gets passed on through fuel surcharges. The shippers will get a benefit. The Airline Sector domestically, there is no fuel surcharge, it goes right to the bottom line. The margin improvement that these companies seek, and it is not sustainable, you have to plan on oil going back up. Even if it goes back up the cash that is being generated is significant. This is an industry that has gone through major Balance Sheet repair. These things are trading at four times, five times ebitda. The rest of the transport sector, seven times, nine times. I have looked at this industry for a lot of years and you have to look at them as trading vehicles. They can be powerful trading vehicles. Stephanie what do you not like . Multilined Industrial Companies that are global, they do lots of different types of businesses. They may invest in an oil patch provide pumps, valves, drill bits. Stephanie sexy companies . Matt you could look at a ge or a siemens. Stephanie why dont you like this universe . Paul this has been a sector that had the tailwind of energy for capital spending. It is probably down 30 , 40 . A had the benefit of the weakening dollar. These companies the last three five years, Margin Expansion after Margin Expansion. We think we are going to enter a time when it will be a miss in lower. It may not be overnight radical that it will be enough of a grind and the median multiple are 10. 5x ebitda. There is no discount being paid for a concert in the earnings shortfall in this sector. Matt you say you do not know where oil prices will go. You do have to put a Risk Assessment on the different scenarios. What do you see as a likely direction and have you waive this . Paul it will be supply, demand driven. Right now, we have too much supply but we can see the beginning of that supply coming down. Like any other commodity, corn, oil, they will be supply demand driven. There is too much supply today. Thats why the curve has an upward bias, because it is coming down. We will probably be trading in this range until we get a better grasp. Stephanie great having you on. Paul, you are no longer my favorite. Matt seen your folio manager at white box advisers. Market makers will be back in two minutes. Scarlet i am scarlet fu at the breaking desk. The dow and s p 500 are 1 are at closing at record high. The nasdaq is at the highest level since the. Com bubble crashed in march of 2000. Driven by earnings at cisco and apple which hit a new high of 127. 48. If you on adjust for these the 10 year reversed course prices are higher, yields lower after soggy retail sales and jobless claims. The dollar continues to hold near its 11 year high. More Market Makers coming up after this. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Yahoo gets the last laugh. Its modebile strategy is bringing more added dollars. When will the fed raise rates . We will be talking to the former fed vice chairman. He is preaching patience. Or maybe hope. What else can the ceo of the philadelphia 76ers do . His team has one of the worst records in the nba. Welcome to Market Makers. Our top story today is in brussels. Fresh off a peace deal in ukraine, leaders meeting to talk about the other big crisis on the continent, the potential debt default in greece. Angela merkel and the new greek Prime Minister our meeting. Here is the Prime Minister earlier this morning. I want to say that europe stands at as point for its future. We will need to find a position that respect the position of all parties. Focusing on the necessity to respect the european rules. Lets bring in hans nichols come in joining us from the continent. You have moved over to brussels. What is the feeling there . The possibility that any kind of deal you are normally sitting in berlin. You get the feeling they wont allow anything to go forward. That is important. Angela merkel has her first meeting with the primary star. Crucial to whether they can find any sort of agreement. He is clearly calling the shots and we have this remarkable sixhour meeting last night between the finance ministers. They came close to having an agreement. A statement that would say they are agreeing to amend and concluded the imf bailout package that ends at the end of the month. Because of athens, gets the no answer from athens. They have had no agreement and the sixhour meeting you have the heads of state trying to hash it out. Another chance to see what you will do to keep grease inside the euro. Cyprus is calling the shots . From what position of power does he negotiate . The mandate from the election . That is clearly every time you turn on a tv screen they have progovernment protests. Polls have shown them gaining in popularity. Clearly, he is the finance minister trying to negotiate a deal last night. They came close. The german finance minister was in the basement of this building ready to drive out in his car. He gets a call saying, no no not so fast. He hangs out in the parking garage. Eventually gets frustrated and drives on and leaves the premises. How close they are how far they are from a deal as well. Thanks very much for that perspective. Lets bring in alan, the former fed vice chairman and economics professor at princeton. Lets talk about the fed for a moment. How do you think janet yellen is doing . She navigated the modestly difficult but not terribly difficult part beautifully well. Changes in the fed communications relative to what she inherited from ben bernanke he peered now comes the top step. Ben bernanke. Now comes the top stuff. Tough stuff. The definition of patience that means two meetings at least. All eyes are on the march meeting. They will either use the word patience again or they will change it. When should they raise rates . An awfully good question. One they are wrestling with right now. If it were up to me, i would be more patient than june. Look whats happening to unemployment with no signs really the super pessimists can find signs. No signs of wage acceleration. It is not up to me. The fed has been strongly signaling june. What does more patient mean . September are 2016 september or 2016 . Everyone else we talked to come Richard Fisher all saying the Interest Rate should not be at zero right now. The committee has been divided on this for a long time as you know. Janet yellens dovish, but also the chair of the federal reserve. Which has been hinting strongly june for a long time. It has not given its word. It never said we are raising Interest Rates in june. You can get out of it. If you want to go later when i say later, i think i mean probably september. We are only in february. We will learn a lot about incoming data between now and september. We will not learn very much. Between now and march, we will learn a little bit. Not that much incoming data. Between now and september, there is a lot. That will govern if it waits to september, that will govern. Where are we in terms of our u. S. Recovery . Since you mentioned Richard Fisher, the fifth inning or Something Like that. Hopefully a nine inning game. The other one turned out to be a 17 inning game. Things are looking pretty good. We are winning. We are winning. Yeah. Especially if you think about the other teams. It is not a game against europe. I know what you mean. By world standards, we are going pretty well. The Unemployment Rate is down around this 5. 6 percent range. It is now pretty clear we can go lower. We played pretty well during the Great Recession as well. That does not change the fact that a lot of lawmakers want more oversight into the fed. I feel like the toughest part of Janet Yellens job is dealing with enhanced congressional oversight. It is not a decision. She is against those encroachments and she should be and so am i. I wrote about this in the wall street journal not too long ago. It is pretty clear that the congress mostly the House Republicans will be sending one bill after another to the floor. If the republicans hang together , which they have a history of doing those things can pass the house and senate. They have enough votes to pass them. If it gets to that stage, that is a real danger to the fed. Now, they are relying on the president vetoing it. Republicans are already indicating a strategy of attaching things to other bills that have to pass. Supposing Something Like that happens and its up to the president. Well leave you told this whole package because of the bad fed provision . Will he veto this whole package because of the bad fed provision . Slip in these little provisions that have to pass. Who even noticed that . I did not even know the day it passed. They snuck it in at 3 00 in the morning. You met with hillary clinton. She met with 200 economists. Who was she listening to . People like you or wall street . The answer is, at this stage, everybody. She did a listening tour while running for senate. Not all views are saying the same thing. She is making notes, literally and mental. She is a smart woman. She will have to weigh a lot of considerations and decide which of these 200 voices those are not all economists. Would you like to see her as the next u. S. President . I would love to. Thank you so much. Coming up in less than an hour, Michael Mckee will be sitting down with the president of the president of the Philadelphia Fed bank. A mistake i made yesterday in our conversation about pepsi, i incorrectly said the company had added shareholder and wellknown activist investor nelson to its board. Bill johnson, the former ceo was nominated to the board back in january. Since then, he has best off backed off his push and has endorsed the management of the company. That was a mistake on my part. Nelson is not on the board of pepsi. My mistake, my apologies. Fritolay, the snack business. I love doritos. Do you like doritos . I dont eat doritos. Im sorry. Do you think your job is tough . What about the guy told to turn around yahoo s mobile business . We will ask him about that, next. On the road to an nba title. The ceo of the philadelphia 76ers is convinced he will get there. You would not know by looking at the standings. Stay with us. Welcome back to Market Makers. Some call it mission impossible. Fixing yahoo s mobile strategy. Or creating one. Adam took over as head of mobile back in 2012. Since then, monthly users have grown over 550 million while mobile revenue has doubled yearoveryear. Congratulations. How much money is yahoo making on mobile . Thanks for having me. One of the things we just shared in our most recent earnings this year, we did 1. 2 6 billion growth revenue gross revenue. That seven or 68 million in cap revenue 768 million in gap revenue. Up 23 quarter on quarter. Really becoming an important part of our business. That revenue is just for mobile . Just our mobile business. We have a set of Growth Businesses that marissa has described. Mobile, video, native and social. The numbers i gave you are specific to mobile. I wonder about the mix you want in the future. Some Companies Like facebook have boosted their makes to well over half. Does yahoo want to be a mobile business Going Forward . Absolutely. One of the things that burress i brought to the table she had a real foresight in 2012. It sounds obvious now, but in 2012 to say there is a platform shift coming and we will be going big and mobile, think about where we started from as yahoo she shared a funny story. When we arrived, there were roughly 50 mobile engineers at a company of 12,000 and no mobile products or skills to speak of. We invested in that business and grew it. I hope we will become a mobile company. If you think about the crossover point we have started to see that in terms of users. At 575 million mobile monthly users, we are seeing that crossover. In what timeframe . Here we are in 2015. When the uc yourself becoming a mobile company do you see yourself becoming a mobile company . I see that happening in the next 1218 months. If you look at it broadly and look at the mobile, social side of mobile, the video and the native side that is where we have been investing tremendously. Double click on those businesses for a second. In 2014, those businesses delivered 1. 1 billion in gap revenue. Yahoo has inside invented a billion dollars of business revenue. That would make it among the fastest startups in the world. For us, the vast majority of that is currently mobile. I would love for us to see that crossover. We are showing video of tumblr and flickr. The weather app has gotten such great reviews. What are your biggest hits . From a consumer standpoint, a couple of hits to point out. We did do yahoo whether and the yahoo news digest. Both of those one apple design awards back to back your on your. Won apple design awards back to back. In terms of consumer perspective, absolutely. Tumblr has been a significant hit. Things like to medications have been incredibly important to us. Mail. Many of us would sit here and say, g email, do people do that on their phones . We all do. Including the emerging generation. They do a tremendous amount of email. Email has continued to be a Growth Business for us on mobile. Facebook gets 60 of their ad revenue from mobile. D. C. Yourself getting to that number do you see your self getting to that number . I would love to. They have been pointing the way. If we step back and look at the industry, we would tell you that yahoo is certainly top five, maybe top three mobile companies in the world at this stage. Facebook is clearly the leader in terms of their innovation and growth right now. There is no opportunity for us to do the same. Native advertising has been very, very big. Search has as well. We come at it from two sides. The display side and the search side. That is a unique position for us to be in. We are the only company that has those two assets. I dont think people realize how much they use yahoo assets. We were showing an interview with ruth Bader Ginsburg. She sees herself on tumblr. A Supreme Court justice looking at one of your products. Maybe she saw it on mobile. How do you make money off those things . I used tumblr pate choux on as well. I dont see how i am contributing to your bottom line. David from tumblr has been a spectacular leader over there. He has carried a consumer vision that has helped that company grow. They have grown to 460 million, desktop and mobile. Which is a really huge growth for them. The Fastest Growing social network in the 25 and below set. They have been on this huge growth curve. They also will do over 100 million in revenue. From a business that did not exist, they have created a couple formats that have been really successful with the Largest Global brands. Having cost per engagement model. An ad that shows up in your stream and you can reblog and engage with it. Thats how we get paid by our advertisers. That Business Model we would describe as native as well. There had been rumors you could merge you are flurry and gemini business. Would it give you an edge over google or facebook . I love the yahoo dirty. Nerdy. Absolutely we are doing that and bring that the other. Flurry is our developer. It allows them to do things like analyze their user base, understand what users are doing. Also, monetization services. Your question about gemini, gemini is our native search business. Part of what we are doing is bringing that to developers. On the 19th, we have yahoo s mobile developer conference coming up. We need to go to our advertisers. Thank you for joining us. Congratulations on your great success. Live from bloomberg headquarters in new york, this is Market Makers. Welcome back. Now we are going to welcome one of my favorite losers. From the philadelphia 76ers, it is time. The team has a message for its fans. Be patient. Scott oneill is here. He is the ceo of the 76ers and the new jersey devils. What a charming intro. I said you are one of my favorite people. You seem to be having a losing season. There is a silver lining. We are happy. Lets put it that way. Our fans are happy. Its a city that overtime has done things very differently. Its a city of revolutionaries, right, philadelphia . Right. If you look at basketball, redefined the game. Those were all the days. And today is a new day. We are redefining how you build a championship team. And its coming. We are doing it through the draft. We are doing it by hustling, working, and reigning rookie of the year. Weve got dareus arch in turkey who is outstanding. Just named twotime rookie of the year. In a perverse way, is the Winning Strategy longterm to loose today . Its a trite, quick painfully to say the way we would articulate it is you first have to have a culture, the right culture of winning. Some teams win over time. Over 10 years. And then you see teams that never win. You need the right talent and the right people. We have sam hankey, who i think is the best a g. M. Around. Ive heard this. Whats so special about sam . He is a young guy, stanford mba analyst worked in the rockets system. He loves to deal. Tireless guy, travels. His draft record is outstanding and outrageous. He is going to build an incurable team. You talk about the draft and bringing in rookies. Thats great for building in the future. Here in new york, the knicks also suck and Carmelo Anthony is banking on the allstar game to recruit other players other experienced, wise players from around the country. How do you go about recruiting serious talent . Walk me through a weekend of recruiting . There are two ways to build a team draft, free agency. The phase we are in now is building young talent that will be able to attract free agents. Most wings want to come play with big sue can protect the rim and distribute the ball. So we have a good Solid Foundation and base to get there. How do you get people on . Their feet . People love going to knicks games, the experience, the dancers, the garden. How are you doing it in philadelphia . How are you actually selling tickets . Amazingly the city of philadelphia, which has a reputation of being a little surly and cynical, we havent found that yet. We were top 10 in the league in ticket sales, top 10 renewal rate. Pretty incredible. The fans are voting with their wallets and with their hearts. When they come to their game, they are going crazy every game. They have fallen in love with this young team. We play hard every night. You talk about the showtime lakers, the celtics this team, they are scrappy. I guess in philadelphia, you can count on loyal fans. But what do you give fans as far as the business proposition . You give me 110 for the seat. I give you you have the dancers. We brought in disney to do our Customer Service training for the staff. We brought in a 3d Court Projection that turns the court into an imax screen. Weve done a whole bunch of different things. We have the largest tshirt cannon in the world. [laughter] that is exactly what i was waiting for. If its the largest, does that mean it can go the farthest . It is the most per minute. Its about garth, right . And strength. We Just Launched a new mascot yesterday, the blue dog. You did . And as a thank you to our fans, we agreed to freeze prices for this coming year and the following year. Can you afford to do that . Yes. What does that mean, can we afford to do that . At the end of the day, you need to make money. Did you just asked that guy how much money he has . Yeah, isnt that what i do for a living . Its part of the evolution of a business. This is in the early stage of a longstanding business, a turnaround. And you have to make sure you get a nice volume. And we have to ensure we keep the fans we have. You have guys from the most aggressive private equity backgrounds there are. Yes. How patient are they in terms of this turnaround . They are very aggressive and very successful and dont miss much. They are patient is that they want to see progress along the plan. In my estimation, i have been in this business for 20 years, i have never worked with more smart, more competitive, more driven people. You have guys who have a plan, stick with a plan, and we are all on the same team, the same page. Its fun. The nets for sale, how much do you think they go for . 1. 4 billion, 1. 5 billion. Really . It depends how much is included, what the leases like and how much arena you get. Given the current set up 1. 5 billionish. Do you think a new york team is more valuable than a California Team . I have they go for 3 billion. Its good for all of us. We all sing and dance. But yeah, i think it is 1. 5 billion, 1. 6 billion. People with endless funds are on the west coast. Why would they want to buy a Brooklyn Team . We will be back in just a moment with scott oneill from philadelphia. Scott will stay with us. When we come back, we have more to cover. Jeb bush came to town last night. Yes why. Fundraising in the high rent district. Now it is time for some top headlines from around the world. The white house says it welcomes a ceasefire in ukraine in a Statement Released a few minutes ago. The Administration Says the truth must be followed by the truce must be followed by concrete steps. Heavy weapons must be withdrawn from the war zone. Policy majors policymakers at japans Central Banks say measures are counterproductive. Loose money policy will help of the young fall even further. The yen has lost 21 since the central bank started easing almost two years ago. In egypt, a judge has ordered the release of two al jazeera journalists who have been held for more than a year. They are set to be retried on terrorismrelated charges. A colleague was freed earlier this month. They have been accused of supporting the muslim brotherhood. My friend scott oneill is still with us. He is the ceo of the philadelphia 76ers and the new jersey devils. And . Are we going to ask him about that . We are. How difficult is it you are focusing on the recovery the rebuilding of the sixers. How do you have time to devote to the devils . We have a great group of people that allows me to flip back and forth. In new jersey, you have a great renaissance in newark with a governor who is investing dollars. It is a classic blisterharris buy. They got into a bit of a debts a debt spiral. We came in and added new staff. Ninth ranked building in america, the prudential center. Anytime you can get inside the game and give fans a view come a different perspective when the players have that you will be so incredible, i will want to see it on the big screen at home not at the present of center not at the prudential center. There is nothing like watching a game especially hockey. Its a live sport. You really want to watch it in the arena. I will use this opportunity can you come over . You guys are so nice to each other. Lets talk politics for a minute. Last night was a huge knife or jeb bush. He had a fundraiser here in new york city. The cost of admission was a cool 100,000 bucks. Bill mattingly joins us now on this fundraiser. We know Henry Kravitz was the host. Who are these donors who are getting involved so early in the race . They break down into a couple of buckets. You have the guys who are Party Loyalists who will be going after people and you can probably put Henry Kravitz and their. Henry kravitz in there. But you have people getting in early with somebody like jeb bush could be really helpful down the line. That means you will have closed access to a candidate that everyone right now is pegging as the front runner. That means in the future, if you are a bigtime donor, if you have an ambassadorship or position in the administration. The primary one is people think jeb bush will make a serious run here and they want to get on that side us early as possible as early as possible. Mark and john were saying this as they mostly ever heard of, 100,000 a plate for a fundraiser. Is it indeed the most expensive fundraiser ever thrown by a candidate . I also was surprised to hear them say he might not be as far ahead in the polls with the ocular vote as he is with the big money. The important thing here i think why these headlines are so important for jeb bush, 100,000 per play for admission as one republican aide told me earlier today, is absurd. Its a very high number. Will it be the largest of all time . Its tough to gauge. But why this is important, these are the types of numbers topline when you look at the Fundraising Network and the funds in general that jeb bush can bring in that can scare other opponents, scare other people out of the race. So on the popular vote level jeb bush may not be pulling well when he shows the network hes got in the kind of money he can bring in, that might push people out that might appeal to populist voters in other parts of the country. Thats why these numbers are so important. Jeb bush is going to raise a ton of money. A lot of people are going to raise a ton of money. But 100,000 a plate, that is crazy money. Moments ago, scott was talking about what a great writer Chris Christie is as a governor of new jersey for the prudential center. But if you are Chris Christie with a big new york backing and wall street has loved him in the pass and you see 100,000 a ticket like last night, if you are governor christie, are you saying i am out . They have a pool of donors. When jeb bush made these may these moves he made early, obviously that is a reason why mitt romney decided not to go. It poses a letter problems for Chris Christie , to your point. So long as jeb bush is making this bush, he is going after the same donors this christie is in. Its why you hear people on Chris Christies camp on the sidelines wishing he would make more out front toward movement into this race they want him to commit because they are worried that jeff bush is jeb bush is swooping in and stealing a lot of his money during a hundred grand. That is a much more exciting night than i had last night. You didnt go to the fundraiser . I didnt see you. Scott oneill, thanks for joining us. I will be anchoring the show tomorrow from the allstar game. Scott is definitely going. Scott oneill, thank you. We will be back in a moment. Join me again at 5 30 p. M. I will be at boys and girls investment conference. Weve got tons to cover. Im going to call i want to talk fast food, herbal life, and a whole lot more. He will be sitting down with radel yahoo crushed it last month. With ray dalio who crushed it last month. Bloomberg television is on the markets. The dow in the s p 500 at their best levels of the year and also within sitting distance of new records. The nasdaq has climbed to its highest since the. Com bubble since the dot com bubble. Joining me is max fryer, senior equity derivatives trader. We are grinding our way higher. We are less than 1 a way for a record close for the s p in the dow. It makes it a bit cheaper. Option prices are getting more reasonable. There is a lot of macro catalysts on the nearterm horizon which sort of discount the possibility of ball striking again in the near future. I think there is a distinct possibility. We have a bunch of centralbank meetings coming up. We will get more information on the greek situation and whether the ecb is going to support them and continue the bailout program. With all these macro catalysts i am surprised the ball is as low as it is. I think near 20 is more appropriate given the potential for things to turn badly in the eurozone. So we revisit the highs we saw earlier in january at least. We are coming into a threeday weekend. Monday, we are offer president s day in the u. S. How do traders want to be position heading into a long weekend . Defensively. You want to protect gains you have had so far in the year. We are going to get minutes from the last fomc meeting next week. We will have a euro finance minister meeting. We will have Humphrey Hawkins testimony in two weeks. All these catalysts that can rattle the consensus thinking. You want to be present should you want to be positioned fairly defensively. A retail sales the port a retail sales report today was pretty disappointing. And a lot of companies will be reporting earnings next week. Foreign exchange, travel agents, another big headwind, the holiday sales havent turned out as great as they have come especially for bigbox retailers. I like a defensive strategy in the frt, which is a retail etf. The 94. 88 spread is a cheap way to position for downside in the retailers. I think that is a smart player. So far, you are looking to profit if the index goes down. What we have done from the companies anecdotally is that things looked ok in the holiday season. I think that plays into my strategy. I think sentiment is a little bit euphoric. You had doubledigit percentage moves. So there is some positive sentiment out there, especially around lower gas prices. If that consensus opinion turns up to be incorrect or flawed somehow, i am looking for something on the downside to protect myself. You are a debbie downer. Im cautious. Cautiously optimistic. Firearm, the shares are rising at fire eye, the shares are rising. What does activity look like in this company . Is this an actively traded company . Its a midcap company so it is not the most actively traded, especially in terms of earnings. The market was pricing in a large move, which it got, 10 or 12 . The market got the movie it was looking for. It is a hot space, Security Software in the wake of the Security Breaches into a 14. They are always in 2014. They are always in the middle. Big companies are moving up their budget for security spending. Fireeye. Is enjoying that the shortening of the sales cycle that comes with it. Its a hot space. It should be anticipated from here on out as this dynamic unfolds. Right now, it is up by more than 10 . Thank you so much for joining us today. Money clip is up next. Welcome to money clip. Im pimm fox. Philadelphia president Charles Prosser is retiring. Around the world, ukraine and russia agree to a ceasefire again. Europes leaders are not brimming with optimism. And ruth Bader Ginsburg opens up on the gay marriage debate. The privately funded Space Program takes another small leap. As for the publicly