Transcripts For BLOOMBERG Street Smart 20150415

He says the fed is concocting a witches brew that is risky if they hold Interest Rates near zero for too long. In washington, a small helicopter landing on the west lawn of the capital today. One person was reportedly detained and the streets were closed. The spot where the helicopter landed is with the annual Christmas Tree is set up. Former new England Patriots player and Aaron Hernandez was found guilty of firstdegree murder. The conviction carries a sentence of life in prison without the possibility of parole. We have less than one hour until the close of trading. Lets get right to the news desk where they are looking at the action. Triple digit rally on the s p 500. Mirroring gains in europe. Mario draghi announced that he will continue quantitative easing until he sees a sustained inflation. I just spoke with jeff klein talk i just spoke with Charles Schwab and he says that it probably still in the table. When you look at oil prices, we are seeing a big rally their. Oil is the highest this year because the latest crude supply data is that it was at the slowest pace since january. Of 5 today alone. Look at the dollar. It has weakened today. And of course, given that oil is up you would expect to see the dollar is down. It has proven to be the driver behind the dollar. Sure, the rise has slowed a little bit but we are still up by 9 . A little later on, i will talk about netflix which will be reporting earnings. And of course, have a stronger dollar plays into all the earnings reports we will see. Thanks so much scarlet. We now have a dropdead date for a great deal. We spoke to the german finance minister in an exclusive interview just hours ago. Brendan joins me now as long as my guest host for the hour, the chairman and cio of Cumberland Advisors. Brendan has been up for like 25 hours. What was the biggest take away when will the greek side of the ending . Cracks i been tired to going to hunt sickles in berlin every day and asking when the dropdead date is . I asked scheuble when the dropdead date is and he said it is when the greeks agreed to a program. The program has been extended twice. Now runs through june 30. If greece wants to unveil itself of the remaining funds the program, a solution must be found by june 30. Your deadline is the 30 of june . That is the deadline. See that little green there at the end. Would you want to play poker with him . No i would not. If i was looking for liquidity assistance every day what i got from that is that he is leaving greece to dangle in the wind a little bit. It sounds like he has a very good negotiating position and greece is doing very dramatic desperate things like sending the Prime Minister to russia. In waiting and he is waiting and waiting and waiting. When you turn it back around ungreased though, what is the great impetus . It is funny, when you think about europe you have to sort of unwrapped the onion. There is a broad concept of europe, that doesnt mean anything, rush is a part of europe. Then you have the legal construct of the European Union and within that you have the eurozone. I was trying to figure out which of these greece will remain a part of. We listen to his answer watch we listen to the conditional. Greece remains part of europe in any case. Whatever happens in greece, greece remains part of europe the European Union. If greece stays in the eurozone it must keep the conditions for it. If they have the money to meet their obligations, it is primarily a decision of the greek government. If they want support, we will give support to within the framework of what we agreed. If, if if, and if. If it stays in the euro. Where is the risk . The greek debt has been reconfigured, so it is in the hands where contagion risk has been suppressed. Of course, when you have contagion risk you never know for sure and it is the uncertainty about contagion risk that hangs over as a cloud. My view personally is to get this over with. If greece is going to go, let them go and then we will learn how little or much risk of contagion still exists. I dont think there is a lot. Is there a plan b . A german newspaper said preparations for a contingency plan to keep greece in the euro are being prepared. Brendan we got a classic nondenial denial about that. He basically said that before the berlin wall fell we didnt have preparations because you have to be crazy to prepare for that. After the berlin wall fell we got trouble for not having any preparations. Like i said, he was a little coy about it but he said you always have to be prepared, with a wink and a nod. I suspect there is a plan there in the finance ministry. They have to be aware of what you do to make sure that remains a greek problem and not a european problem. If greece leaves what is the message to others in the periphery. That is a very difficult time of war now. With spain that has undergone structural reforms, ireland that has gone undergone that has undergone austerity, he is aware what other countries in the eurozone have undergone stop who does he speak for gekko do you think he represents whose these before . I think he is the backup. Bad cop. He has a legendarily terrible relationship with will varoufakis meet with them . There are no plans. They will all be in bc for the imf and World Bank Meetings. He said that we have no plans to meet but if we run into each other we will talk as we normally do but i dont plan on seeing him until the next conference in europe. Did you get any detail of what point a greek restructuring would be on the agenda for berlin gekko . He said that is really a question for decades in the future. Honestly, no sane person thinks that greece can pay off its current debts. It doesnt matter whose fault you think it is or who caused it no country can pay off this kind of debt load. We are at the point where the cookie jar is closed. So that means greece cannot get back into the cookie jar without more behavioral change which politics and greece to not want to permit. Regardless of what the ecb said the liability is, mario draghi said was about 110 billion euros, they are giving money to the ela, the ela to greece. I have come up with a much simpler rubric to figure this out. Ultimately, no matter what you are talking about, germany pulls the strings. It has such a strong voice in the ecb, council of finance ministers, european commission. Germany is the bellwether. Whatever they seem to, other countries accede to,. Other countries will go along with it. Coming up, i will speak to duke energy by cbs Board Chairman duke energys Board Chairman. Growth is apparently still working its way across most of the u. S. In february and march according to the fed beige book. Economic data is still pretty weak. Here to make sense is the chairman and cio of Cumberland Advisors and bloombergs economic editor michael mckee. How does the fed see one thing and facebook, but all the data we are getting see Something Else . The fed is seeing an economy that continues to expand but not a very exciting pace at this point. The real pressure on it was from utilities. Homebuilder confidence was up significantly today. So maybe things will get better. In the facebook they did talk about optimism. Alix how do you reconcile a relatively optimistic point of view with a strong dollar hanging over our heads. The fed has to deal with this issue of extending the time where they will make the first move and the bias is toward extending because of the dollar but because of the questions in the labor markets are because of Something Else. If you think about the feds timing decision, you dont have symmetry. The bias to get the liftoff date is to push it out. Now you have bullard warning, rightly so, there are a lot of concerns. The bias in the condition in the decision favors waiting if there is any derailing piece of information. Michael i love jim bullard, very smart man, that not paying any attention to them right now because the people that matter are janet yellen and stanley fischer. They have said they are going to be cautious and watch the data. Alix he did make the point though that the Financial Markets indicate that it is somewhat different than what the fed is projecting. Does that mean the markets of not come up to meet the fed . Michael data will tell us. At the atlanta fed retreat, stan fisher gave a speech and that he did q and a and he used to words , less often to describe making the changes. It made the case for gradualism because he doesnt want, and none of them want, to repeat a 1937 error. And they dont want to reverse themselves, which sweden has now been reversed. They dont want to do that. That is the funny thing in the markets these days. You hear a lot of people talking about this idea that the fed might go too far, too fast and that would cause problems. But you dont hear yellen, or fisher, or dudley or any of them talking about it. They say theyre going to be patient. There is a disconnect between these two sides. The markets seem to be preparing for the worst and the fed is, at the moment, telling them that that is not going to happen. Alix thank you so much. Always a pleasure to let the onset michael. Dont miss my interview with jim rogers, former chairman and ceo of duke energy and our conversation about a rate shock and utilities. Alix here are the top stories were watching the closing bell. This could potentially pose a new hurdle in the banks sales to m t bank corp. U. S. Senator Elizabeth Warren is saying that Bank Executives should face new tax penalties to keep them from engaging in risky practices that can pose threats to the Financial System. Canadian plane and train maker has considered a possible sale of its rail units. That is bombardier. Sometimes you just have to go along for the ride. Utility stocks Like Duke Energy have benefited from lower Interest Rates since september of 2007. What is going to happen when fed chair janet yellen starts to raise rates later this year. Jim rogers, the chairman and ceo of duke energy joins me now. Thanks for being here will stop my bet is there is already a little discount in the stock price because there is argument talk about increasing the rates. So utility stocks generally and david knows this better than anybody, moves with the Interest Rate. But at the end of the day, we have a very good yield at 4. 4 . Growth is strong and the dividend will continue to grow. We will have the capability to whether the increase in rates. Alix at what point, when you would have to see the fed move would you want to say you are out . David there is a question. If the fed raises the shortterm rate in this environment, does the longterm rate go up or down well the European Central bank is suppressing rates worldwide . We could get a notch or two up on the short rate and the long rate doesnt move on even goes down. Duke is a substantial weight in our utilities. We like the 4. 4 yield, we would like 4. 5 . Alix if you can make a phone call, that would be great. David but it is a serious issue because the whole yield curve may have to up the way the market fears. Jim the demographics are also going to drive this. You have the baby boomers retiring in one to hold stocks but they also need income. I think the demographics are moving up a little. Stocks like duke, specifically. Alix go into your expertise, you lived and breathed duke energy for so many years but now some are calling it a death spiral for utilities. The industry is facing the biggest change in their Business Model since edison turned on the first power grid. If you are 22 today and you are creating a utility company, what would it look like . David jim i like this idea of being 22. If i was 22 and running a utility today, i would quickly embrace the new technologies. I would change my great from analog to digital, i would install smart meters, i would build out solar of the rooftop. Duke has invested 4 billion in wind and solar. I would lead in the embracing of technologies. I would work if regulators to fundamentally change the regulatory model and the Business Model to allow us to become the leaders of the world in the optimization of electricity. Alix what about natural gas . Jim natural gas has been a great thing in several different ways. First of all, we built combined cycle gas plants. Alix what does that mean . Jim it is probably the most efficient way to burn natural gas to generate electricity. The bottom line is, we were able , for the first time in our history, to dispatch gas plants and rather than dispatching coal plants. The consequence of that, if you look over the past six or seven years in the use of gas, shell gas became more prevalent and very cheap, we saw a huge reduction, almost 60 in our Carbon Emissions 16 in our Carbon Emissions. Not only are we clear but it has been more affordable. Alix what happens if we see some kind of huge spike in natural gas. Two dollars and . 60 right now, but it used to be over five dollars. Jim i would say if ben franklin was sitting here today with us who used to say the only two things certain in life where death and taxes, he would add the volatility of natural gas prices. I am thinking that what has made the Utility Industry so successful is that we kept a portfolio of options. Alix such a pleasure, thank you so much. Alix street smart welcome back to alix welcome back to street smart, i am alix deal. The activist to disrupted Mario Draghis News Conference as she gained access to the room using normal procedures, but in acb spokesperson said nobody registered for the press conference was up she spent over two hours in Police Custody before being released. It is unclear if the ecb plans to press charges. And posing a threat to googles position in the apps market. The move may give samsung more programs that uses on its devices. Bundling some services such as youtube, chrome, and whether it harms arrival at developers and device manufacturers. Adultry website ashleymadison. Com is pursuing a website in london. It is hoping to raise 200 million. It had ales of 115 million last year, and almost fourfold increase from 2009. 30 minutes until the close of trading. Lets go back to the breaking news desk where chief markets correspondent scarlet fu is looking at the big news. Scar . You know what, it looks like we are having some issues with her microphone. We will get active are in a little bit to get some information. In the meantime, one of the best track records in the history of investing, he spent years working with george soros before striking out on his own and for a quarter century, his fund was returning 30 annually. Now he is writing on three market surprises. Still with me, david kotok of Cumberland Advisors. David, what is so popular in my world in the commodity lane has been this fall off in oil prices. It is hard to find someone who is incredibly bullish on the oil prices. Mr. Druckenmiller i am pretty optimistic on crude prices. I think they are going to do better than the forward curve. Well, because as my produce a sack schreiber said a year ago, the cure for high prices is high prices. Well, he would also say now the cure for lower prices is low prices. Stephanie what does that mean . Mr. Druckenmiller it means prices that 50 have caused a lot of behavior in future production, expiration budgets, that it should remise clear up the supplydemand by early 2016. And i think that is very different than the world is sinking. Alix david, what do you think about that . Do you agree . David that is a very powerful voice that deserves a lot of respect. We are underway to be energy sector. We would wait for this to clear. It is not clear how much more Global Supply occurs if iran and iraq pump. It is not clear how the geopolitical risk sorts out nigeria. And it is not clear if venezuela. New regime, what is the first thing they do . They take 300,000 or 400,000 barrels a day come up with them on tankers, run them across the gulf of mexico to an american refinery at any price to get cash. So this issue is not clear to us. It could be right. We may have a low in oil, and there are a lot of people right now making that bad. Maybe it is onesided. We are not so sure we do not get another leg down in the energy price, so we are still underweight the sector. Alix in the price youre looking at, when you say another leg down, at one point at north that citigroup was talking about down ed norse at citigroup was talking about the 20. David i saw the 20, and if we do not know, we only guess, if you do not bet money on a guess. You have to have a scenario that has a high probability. I would rather pay 70 a barrel with a firm of trent and see it with a long time horizon than to go in here. Alix this is one of three market surprises. The other one was he is pretty bullish on china. David, take a listen. Mr. Druckenmiller whenever i see the stock market explode on record volume and record brits and breadth and moved to that degree, like day follows night six months to 12 months down the road you were out of the recession and into a fullblown recovery. The reason that happens i think there is enough about that it is certainly greater than 50 . China will be in six months to 12 month, and just think of how differently the world is thinking about that. The fed had in their minutes last month that one of the reasons to delay or one of the reasons of concern was the chinese economy. Christine lagarde was on the cover of the Financial Times last friday. Her biggest war the chinese economy. So as someone who is trying to think of what Security Prices might look like six months to 12 months down the road, i am very intrigued with a, the possibility of a chinese economic recovery, and how differently we might be thinking if it is actually unfolding later on in the year. Alix what is so incredible is the divergence. Firstquarter growth, 7 , and record high stocks. David you had a profound statement from a serious, longterm, iconic name in the business. When you have a breadth thrust, a 91 up day, it tells you that market is going to go higher and that market is forecasting outcomes, which will support that particular move. I agree with him on china, and i agree the way he characterized it. Alix how to that happen when you have slowing growth . Is that a central bank play . David are you getting slowing growth because of events today or are you getting slowing growth because of what happened last year . And will you get more robust activity because of what you are doing today that is going to show up next year . The whole thing about markets is they are trying to look forward in discounting next year. Why would you buy the homebuilders in the u. S. Today if you did not think that housing was going to be improving for the next several years which we happen to do, so we are overweight the homebuilder. Same story whether it is china or housing in the u. S. Alix so ignore those gdp figures in essence. Where would be the opportunity . David in the international sector, there are etfs that you can use for china and etfs that you can use anywhere in the world now, and we would take advantage of them. We are overweight asia and our international components, and we have a piece of japan at a piece of europe, and they are currency hedged because of what is going on with the dollar. Alix what kind of Central Bank Moves to you expect to continue over the next six months . We saw two rate decreases. David i think if you look at china or any emerging country or any economy, they have to make a decision about centralbank policy domestically focused, and then they have to relate it to what is going on in the world, and the most powerful force in the world is coming from the European Central bank with a negative Interest Rate so the negative Interest Rate is coloring centralbank policy everywhere. You tally up the centralbanks of the world, and since october there have been about 30 movements, all of them easing, all of them stimulative, so this is an example, but there are many examples. This whole world is now trying to manage against this negative Interest Rate of the European Central bank. Alix david, i love your thoughts will stop thank you. And you are sticking with me. Coming up, why the eu shutting the uber gateway could mean antitrust legislation. We will break it down. Alix the eu is telling google it is time to play by the rules. The sunshine is under investigation for its android business as well as it search business, unfairly favoring its own services over those of rivals. The Company Already makes 92 of the market share in a search as you can see, but is this a slippery slope for tech . Cory johnson of bloomberg west joins me, also david kotok of Cumberland Advisors. Cory what could the dollar figure b if the eu gets its way . Cory 10 of revenue, which is 5 billion nothing. These are very serious charges, and this is just the tip of the iceberg, so what the eu announced as well is not that they are just looking at what google did and shopping, which is to say when someone would go on google and search cameras what they would get is the shopping engine of google and not be shopping engine of competitors, even if those might have been better for the consumer they just did not show up. Now they will look at other things, like the way google is specifically managing to fork or not fork the android operating system, that is to customize it, and they are pushing Google Partners such a samsung has complained about having to use google maps and google mail and all the other things that come with android. Alix david from where you sent as an investor, why was this so significant for you . David you always worry about a large, political power, a status or a socially oriented economic structure that goes after Big Companies that are successful, and google is successful for good reason. You say what is next, who is next, where do you want to avoid . What you do as an investor if this is going to be the target of this economy, and that is what we see out of the European Union. The question for cory is you is next . Alix there is a good question. Who is next in the eu and who is next year . Will the u. S. Be shamed into acting because they did not ring a suit against google . Cory it is interesting because we have the unprecedented moment where the ftc staff report about google was accidentally given to the wall street journal, and they dutifully published a that. The raw document, the pdf file is stunning. Here is the big risk, right the customers of google, the people use the Search Engine google who have this trust in the product and they think they are getting the best results out there, when they start to look at the facts of things, that the eu is them asserting, the ftc report is showing us, google does not always surface the best results for customers. Sometimes they seem to be favoring their own results as to the best things for the customers for stop in fact check this out google sent a press release for a link to the blog post for all the world to see in the response to the eu, and they said you know, for our customers, if you want to enter flight information we give it to them simply, and our competitors such as kayak are doing just fine for stop if you go to kayak into the exact same search, you find the preflight you do not find on google. I do not think that is what most google users know is happening and that message, that Google Search results are not the best out there, could really hurt their business longterm. Alix does the ftc have to act again now . Cory i think they have punted on this one. They will not prosecute, and i do not think they will change their mind on that. But the report that is now out there accidentally what the eu is servicing is damaging for google and also for the ftc. Alix guys, t was a much, cory johnson of bloomberg west, and david kotok of, lynn advisors post of it was a pleasure to have you there is always. One of the david kotok of Cumberland Advisors it was a pleasure to have you as always. Streaming tv can it keep up . We are looking at the doubt losing a little bit of steam as we head into the close. We will be right back. Alix here are the top stories we are watching ahead of the closing bell. Huber and samsung have Just Announced a new partnership. Over the next year uber will be featured at the top of a galaxy widget on samsungs new phone. Users new to uber will enjoy their first ride for free. In the New York Times will stop charging for its mobile app, New York Times now which debuted a year ago at 7. 99 a month, with a slimmed down version of the full 15 digital subscription. Alibaba is making a move to put the Companys Health care assets under one roof. More chinese arte seeking professional care and using mobile gadgets to monitor their fitness. After the bell, we are moments away from that, and the streaming service has delivered positive results in the past four quarters, but can netflix keep the winning streak going . Joining me now is bloomberg west and her large cory johnson, and an editor at robinson humphrey. Robert, what is the number one thing you need to see from netflix . Robert first of all, thank you so much for having me. The first thing will be International Paid subscribers. 2. 4 million ads, we have a proprietary algorithm that thinks it will be higher than that, somewhere closer to 2. 8 million. You can see the focus on domestic numbers looking for about 2. 1 million ads. Alix what is the downside . What is the biggest risk facing investors right now, robert . Robber two quarters ago, use all the stocks tumble. International growth was not what people anticipated. Last was stronger than anticipated, so seeing that continue is important for stop International Growth is the future of the company. Alix cory, netflix is anticipated to spend 3 billion on content and 2015. Do we see that you wrote in the numbers . Cory a lasting concern for the company is different content. Their stream, which is legal apparently, the content cost over a very long period of time, but whether or not a threeyear old house of cards whether a threeyearold or fouryearold house of cards will still be an expensive house of cards. That is why the International Growth is so important in the marketing costs that go with that, they can hit whatever subscriber number they want based on how much they spend in marketing. Where it is going to impact the company is in terms of their profits. Wall street believes profit will be 25 last both this quarter and last quarter, but if the marketing costs surge, they could be higher than that, so the scribe or addition is a number everybody looks at, and for a good reason, but that is a number that is largely within the control of the company. As far as it goes for content, he is exactly right on, this is a chance of when we can play the game of marco then you are supposed to say polo. Alix got it. [laughter] cory it is why we spend so much money on the content because they want content on mike house of cards, that will play globally. Alix thank you so much, cory and robert, youre both staying with me. Netflix close is coming up next on street smart. Were counting down to earnings from not only netlist but also sandisk, plus jack lew speaking about greece china, and iran. A lot more coming up. Stay with us. Alix welcome to our viewers around the globe. You are watching bloomberg television. I am alix steel, and this is street smart. Moments away from the closing bell intel forecasting improving demand for data centers, and counting down demand from netflix and standards. Us, secretary jack lew speaking to bloomberg about greece china, and iran, but for now lets get to bloombergs chief markets correspondent scarlet fu at the news desk, looking into the action. Scar . Scarlet when we talk about stocks, they have been stuck, but they have been steadily grinding higher. As everyone anticipated the start of earnings season. The s p and dow have managed to notch and six days, and the s p got within 1 3 of matching the record high. The dow is about. 7 . Volume ishas picked up as earning season has begun. We are seeing a trading pickup by at least 12 from a 10day average. Energy stocks were far and away the best performers in the s p 500 thanks to a big jump in oil prices. The energy group rose 2. 3 percent, crude oil up almost 5 full stop in fact, nine out of 10 groups finished higher and consumer stocks faltered. Staples down while discretionary little changed. Meantime, the dollar weakening on more evidence that the Manufacturing Sector is struggling from the impact of the stronger dollar and the collapse of oil rises since the middle of last year. We are continuing to see if that plays out or whether it will start picking up as well in line with employment and the service industry. Alix . Alix thank you so much, alix. Im here with Lisa Abramowicz and Carl Riccadonna. Today, investors americans have really been struggling with the stronger dollar, cheaper oil, and factory out what has struggled. You can see right ther industriale production be. Lining as the dollar continues to go higher. Is this what we will keep seeing here . Carl this is the theme that we saw in the Fourth Quarter of last year. The theme prevailed at least two bit here as long as the dollar remains intact. The sector is not doing well. If we look at the manufacturing component, it was up, but if we look at the quarter as a whole it eventually sunk into negative territory, so it is the worst performance for manufacturing output since the last recession. This is not good news for manufacturing improvement in all of those related industries, so i think things will improve to some degree in the current quarter. But do not expect a repeat of last year, serving surging to 4. 5 and 5. 5 . Lisa moving forward, this is what the fed is watching too and the weak numbers coming and its getting less and less of an evidence to make a move to hike Interest Rates this year. You can see that bond yields going ever lower, you know, in the u. S. As well as of course around the world. That is the pressure, that they will be looking to offset a strong dollar, which might actually be beneficial. Carl a lot of other economists are having their eyes open to the impact of the strong dollar. Alix jefferies coming out with a note saying look, we it is better than we thought saying there was an increase in manufacturing output, there was a 3. 2 balance and Motor Vehicle output. It was not all bad news. Carl it was a big drop in the headline, and manufacturing overall sunk. Alix the bell literally cut you off. Carl saved by the bell. Alix the dow closing off of the high, s p up 10, and nasdaq up by about 33. We also want to point out that japan has surpassed china as the top foreign holder of u. S. Treasury. We had been looking for this shift to happen over the last few weeks. We do have official confirmation now that japan has surpassed china as the largest holder of u. S. Treasuries. Speaking of the treasury department, treasury secretary jack lew holding a first facetoface meeting ready with the greek finance mr. Jan is her ministere yanis verify arafoukis. Secretary lew there is no doubt that if this leads to a crisis such as greece leaving the eurozone, it will cause an enormous amount of disruption and hardship in greece. I have said consistently that no one should think that all of the risk of a change like that is pretty double in advance and you know, even if the contagion risk is much less than it was, say in 2012 and earlier, it would not be a good thing in a World Economy just recovering from a deep recession to have that kind of uncertainty introduced. Cory we will hav alix we will have more of our interview with secretary lew in a few minutes. Japan suppressing china as toppled review us treasuries. Joining us of course is Carl Riccadonna and Bloomberg News Lisa Abramowicz. What is the reaction to this news that china has surpassed u. S. Treasurys . Lisa tremendous news for sub you have got japan with negative yield, you have got europe with negative yield in a lot of places. Central banks we looking to boost their dollar reserve. We are seeing that trend, and reduce the euro reserve. It creates a incredible technical element and it will keep feeling of wherever it can go. Carl this is breaking news i agree with lisa. [laughter] in all seriousness everyone was trying to devalue their currency, has to sell their own currency, and when you buy dollars you get into treasury securities, so there is a huge demand for treasury from Foreign Central Banks. China will continue to have a solid appetite for treasuries as will japan, as will europeans, as will the koreans, writedown across the board, so anyone who is trying to have that trade advantage with the u. S. By devaluing their currency will be buying lots of treasuries, so this is not particularly surprised me. What i agree with lisa on his there is a unique fundamental now that is changing the rules of forecasting treasury yields which the old rule of thumb was you could look at nominal gdp growth. The real growth rate and your inflation rate. That was a good rudimentary model. Now we have got this giant electromagnet of foreign demand, especially Foreign Central Bank demand, and their are for yields from where fundamentals should be. Alix talking more about the u. S. And what was moving the markets today, you have factory out that barely climbing in march. This is what really matters. The manufacturing subcomponent to industrial production. Carl, what does this tell you . Why was it so troubling when the numbers cannot . Carl this tells you that the core numbers, which is the factory sector, we get the utilities and we all know what is happening the oil and mineral extraction sectors this sunk into contraction, worst performances the recession, as i mentioned. It tells you that we are really feeling the impact of a stronger dollar. There is hope that we could bounce back into the second quarter, but we had another series of this morning, regional Production Survey and the new york empire survey, headlined as well. Alix one second because netflix is out with its First Quarter results unless five you want to get to scarlet fu. What is the read . Scarlet it looks like we have . 38. Im not sure if that is comparable because the analysts we surveyed was looking for . 63 full stop i have to check to see if that is a comparable number. Everyone is fixated on the net subscriber addition numbers. For domestic subscribers, 2. 28 million on a net basis, higher than the consensus of 1. 8 9 million. For International Subscribers, a net addition of 2. 2 8 million excuse me 2. 28 million for the u. S. , 2. 6 for international. But its also higher than analysts were looking for. You can see the subscriber addition dropped off quite a bit, 0. 6 for domestic, 1. 9 million four domestic. 0. 6 fo domestic, 1. 9 millionr for international. In terms of other numbers here from netflix, it says to launch added markets and later 2015, including japan, so those people in japan will also be able to get net funds as well and a shift to drive down International Contribution shortterm. So a shift to drive down International Contribution profit shortterm. Im not sure the headline makes a lot of sense. We will continue to sift through all of these, but the headline appears to be secondquarter earnings per share for the forecasted . 26, that bp consensus as well, beat the consensus as well, if those numbers are comparable. Alix scarlet, thank you so much, also joining us as cory johnson, bloomberg west correspondent from san francisco, what is your take . Cory it is a prophet, but not with a had hoped for. The company is spending boatloads. The number they know everyone on wall street is looking to have the number of subscribers, but the cost of adding those subscribers is really the important thing. They can throw a lot of money to hit the numbers if they want and they got terrific subscribers, but that came at a cost. I will see where the market is working my model here and where the content calls for, but that is the trick with this business, that it has got enormous content costs, the content costs are going up to medically, they have had success is at least editorially the daredevil series is supposed to be great they are working on iron fist, that is coming soon. This will cost them a lot of money. Alix the earnings to come in at . 38 per share, but that is below the estimates at . 63 per share. I want to bring in robert peck managing director of internet reading, robert, at first blush what was your take on the numbers . We did see huge numbers for the subscriber growth. Robert the real key is the International Paid subscriber number, and that is 2. 5 million, similar for domestics. That is what investors are focusing on. You also have one time stuff as far as interest, debt marketing and the street has already modeled, you had about 45 per subscriber atd and that has gone into thed 50 handle, which is what we expected. That is why stock is up. Alix scarlet, you have more information on a stock split. Phyllis and. Scarlet fill us in. Scarlet a stock split back in the day, the last time was when investors really pushed stocks to record high was important because you want retail investors, individual investors on board and it is a lower price tag for the shares to encourage more buying. There is less concerned this time around in a cycle of the bull market because we have a lot more Institutional Investors in etfs, which is not worry about the absolute value of a share price. The headline is netflix is recommended to the board of directors a stock split. Alix robert, do you like a stock split . Robert i do, it is reasonable, and price triggers for Institutional Investors as well, but in general, that would be well received. Alix cory more on the stock split . Cory not only stock split, but only marketing cost will stop investors will do what they do in the short term, but this is a business look at the marketing costs and revenues coming down, Something Like 11 for the end of last year dropped to 9 which is a great thing, spending less on marketing and seeing your business grow. That is up to 40 in quarter and that is nothing but not good news here for these guys. They want to be spending less money. And they are not. Alix robert, why does that number concern you, increase from 9 to 14 . Robert dont forget we do have a mutual on the stock, and the stock and trades ran 40 times or 90 times burning, and that is onetimes we times per earning, and thats one reason we are being cautious. It is proving of a model internationally, which is one of the biggest questions can you replicate this model as successfully internationally . So far, the numbers are proving that out. Alix one of the themes we have seen is the effect of a stronger dollar. What has netflix said about that . Scarlet the strong dollar hurts, negatively affecting International Segment revenue, which was reduced by 48 million year over year, to use the First Quarter 2014 exchange rate, and i carried 15 million negative impact. The headwind played off against what cory and robert were talking about, the expected subscriber growth, especially in the international market. Alix all right, everyone, thank you so much. Our netflix roundtable, robert peck, Suntrust Robinson humphrey, cory johnson of bloomberg west, and scarlet fu at the breaking news desk. Imf and World Bank Meetings later this week for you will be juggling questions about the strong dollar, and retail risk for possible greek exit. Although century lou sat down for an interview this afternoon with chief washington correspondent peter cook, and peter asked although secretary lew sat down for an interview this afternoon with chief washington correspondent peter cook, and peter asked him secretary lew the real engine of growth right now i am pleased that the United States is doing much better, and there is a lot of attention on how resilient and how much the u. S. Economy has recovered full stop when i look around the world there is clearly a need for more attention to how to generate faster, more sustainable growth. I think that as you look around the world, there are areas where there is a need for policy levers that are available. We took advantage of all the policy levers to get our economy back in gear Monetary Policy, fiscal policy, reforms, particularly in the financial area. There are a lot of economies that need to use all of these levers. Peter secretary, we have gone through this before who is that you are talking about . Secretary lew we have gone around the world, and there is clearly a shortage of demand in a number of places. In europe, the demand has been soft, policy could help drive demand. The Monetary Policy tools are being used. The fiscal policy tools and the reforms that are needed in many parts of the economy would be very welltimed if they were put in place along with the monetary tools. You go to asia and in japan and china, japan has a policy, they use Monetary Policy, they use fiscal policy out of the box, and the question is to how to balance their longterm needs, get their debt under control of the need to have fiscal policy that keeps growth moving the shortterm. The reforms have been a little slower. Any to get those in place and focus on the fiscals as well as monetary told. You get to china has enormous reform agenda in terms of what is set forth, to move its economy toward a more marketoriented approach. Moving those reforms forward opening their economy, their markets, their Financial System to Market Forces is critically important. The sooner they do that, the better. Peter before we saw a lot of other places, let me ask about the u. S. Because the imf did downgrade the growth for the u. S. Down. 5 . We saw a pretty weak jobs number the other day. Are we hitting a week patch right now . Secretary lew if you look at the trajectory over the last 18 months, it is showing a consistent trend in the right direction, sustainable, strong growth. I think if you look at where the imf is now, it is pretty similar to our projection of where the u. S. Economy is. And, you know, a u. S. Economy growing in the range of just under 3 is something that the world looks at as being a driver of Global Economic growth. I think it is a great thing that the u. S. Economy is doing better. I do not think it is sufficient to drive the entire global economy, but the u. S. Economy needs to be the one area of real strength. Obviously there is a bit of pickup and Economic Activity in a bunch of places, which is welcome, how durable it is, how structured it is. It is something that has to be focused on. And i think that the opportunity to move Economic Growth in the right direction is very much related to policies that governments have control over, and that is one of the reasons it is important to have this discussion of the imf meeting about using all the levers that we policy makers have. Peter the one big topic you know will be the strength of the dollar, and the argument being made if the strength of the dollar is one of the Things Holding the u. S. Economy back. Are you ok with that . Secretary lew if you look at the u. S. Economy, the relative strength of the u. S. Economy compared to other economies around the world explains what the current currency valuations are. Inherently coming from our strength and relatively speaking less strong economies elsewhere which is why im focusing on the need for other economies to be stronger. I certainly do not want the u. S. Economy to get weaker. We have the good fortune of having a stronger economy. The other economies need to get stronger. We do have to distinguish between a currency valuations that are a result of a differential economic performances from policies that are designed to gain unfair advantage. We have made very clear that if there are kinds of policies interventions that are unfair that are designed to gain an advantage in trade it is unthinkable. We pushed back very hard on it and i think we have done so with considerable success over the last couple of years. What we are seeing now is the fact that our economy is outperforming other economies and it has to be on other economies and other policymakers, using the tools together economies moving in a better direction and a stronger direction. Peter your predecessor larry summers, has generated a lot of debate over his argument for the secular stagnation diagnosis as to what is happening around the world the rest of that going forward. Where do you follow this great . Secretary lew i think we have fun where do you fall on this debate . Secretary lew i think we have reacted well the economy responds well to it, there is any for more policy here in the United States. There is no doubt that our economy could do even better than it is doing if we invested in infrastructure more. If we changed our immigration laws. If we reformed our tax code to have a tax code that was more encouraging of investment and more competitive worldwide and closing loopholes that make it inefficient and lead to less effective investment strategy. So there are things we can do. I think it is incumbent on policymakers to move the dial in the direction of creating more Economic Growth. I think there are many areas around the world right now where economies could be doing better if policy were doing better. Alix joining us now is our chief washington correspondent peter cook after that great interview with treasury secretary jack lew. What is so interesting if he was basically saying no currency wars, throwing the book at the two other country saying, it is your job to step up and do more. Couldnt they just run around with 80 same thing to us . And say the same thing to us . Dinner yeah, look in the mirror, United States. You have got of course janet yellen as well participating questions about the saids liftoff, rising Interest Rates meaning for the rest of the world, about the feds liftoff, what rising Interest Rates mean for the rest of the world. Jack lew has that leverage with him as he goes into these talks, but is quite likely a lot of folks are going to hear this message, this call to action and say rings with the advice. Alix yeah thanks, no thanks. Dear in the u. S. Come it is your job to make things even better for the u. S. Economy. Peter that is right. On issues like Tax Reform Committee is not clear trade is going to play out, immigration has been bottled up, and there are westons down the road about the debt ceiling. Jack lew has to answer those questions. Does the u. S. Have its house in order as well . Alix two i very much for that great interview, our chief washington correspondent peter cook, we appreciate it. No plugs adding a record 4. 9 million subscribers in the First Quarter, bringing its total Global Customer base to 62 million people. Netflix also recommending a stock split to the board. We will have more on netflix just ahead, plus we will hear from former Homeland Security secretary tom ridge about an outlook for an iran nuclear deal. All of that coming up. Alix yesterday, the Senate Foreign Relations Committee improved a bill that will help save the way for congress to pave a deal on a nuclear deal with iran. Secretary of state john perry flew to germany sector estate john kerry flew to germany saying it would hold up under congressional scrutiny. It will revive legislation, giving congress the authority to review any nuclear deal with iran. Former u. S. Secretary of Homeland Security tom ridge spoke about where he sees negotiations heading. Mr. Ridge i think it is quite obvious that the Obama Administration is very focused and committed to getting a deal, as so many people have observed, the devil is in the details. I think, frank lee, one of the more important changes i think in the environment when you have the senate and the house, they ultimately want to look over the president ss shoulder and ratify the deal, i think that is important, but also happen to think that at some point in time, if the iranians refuse to meet both our technical requirements and this notion that we automatically should lift sanctions as soon as the ink is dry on the agreement we certainly should review repudiate. The administration have to take a lesson from Ronald Reagans book, and it may be difficult to do, when he was way from the soviet union and said this deal is not in the best interest of the United States, lets reconvene some point down the road and figure out how we can collaborate on a better arrangement. I do think it is critical for this administration to be prepared to say it is not good enough, it does not protect our interests, and that of the western world, and be prepared to walk away from a bad deal. We all agree that the administration, while they are working very hard to complete the deal, they seem overly anxious to get it done, and that is creating enormous anxiety on both sides of the aisle, so i think it is very appropriate for both republican and democratic leadership to say slow down we want to make sure that the deal, the arrangement is in the best interests of the United States of the america, and because there is this level of insight anxiety, and the and sessions to the iranians, the congress of the art states want to take a look at it before the president signs the concessions to the iranians, the congress of the United States wants to take a look at it before the president signs it. Matt how do you feel about our current efforts, have we done enough . Mr. Ridge the president has talked about a Broad Coalition to defeat isil. I am not quite sure what that coalition consists of. We are doing Occasional Airstrikes. I know we have enlisted the kurds and we do have iraqi soldiers making some progress in tikrit and elsewhere, but i do think it is an illusion to think that Occasional Air strikes are ultimately going to make a difference in that region. I do believe that the coalition should be expanded. I do believe that the coalition should include more troops on the ground. Other countries in the region have a vested interest in that region, and at some point in time and the general in that region, i will expect that having our military personnel boots on the ground, directing a more aggressive Airstrikes Campaign may one of these days work as well to the president and hope he will seriously have that effort because you cannot rely on the iraqis and kurds. You do need an air force, but you also need a more aggressive combination of more boots on the ground, other Coalition Members more aggressive than the air force. Alix my special thanks to governor tom ridge as well as matt miller. Coming up next, netflix spiking in afterhours trading. The company raking in a record 4. 9 millions of scrubbers in the first a record four point 9 million new subscribers in the First Quarter. Plus, do not miss my interview with quebecs Energy Minister p ierre arcand. We will be back in just a few minutes. Alix welcome back to street smart. I am alix steel. Lets get back to our chief markets correspondent scarlet fu, who is monitoring all of the headlines out of netflix. Scarlet netflix shares are soaring right now. The earnings per share of . 38 was well below its own forecasts of . 68 and analysts estimates of . 63. Alix, we obsess over corporate earnings would have it tells a bigger story about the state of the industry, the state of the consumer, and the state of the economy, but every companysstoxx moves on its owns metric, every companys stock moves on its own metric, and the white line is netflixs shares since the start of 2013. The stocks record high was reached back in mid last year. The red line is First Quarter earningspershare estimates. Analysts reduced in january as the stock moved up, and it has pretty much language. There has been no impact on the stock. What does the stock move on . Net subscriber additions. You have a domestically. Instead of falling slightly, as it has the last two years in the First Quarter, instead we got a big move up, 2. 2 8 million subscribers added in the First Quarter. Now it has north of 40 million paid subscribers at home. That is what the stock moves on and that is what has impressed investors. I will show you what it looks like for International Subscriber additional growth because that is something that impressed investors as well. Once again, this is over the last couple of quarters here, and you can see that this line continues to move higher. In fact, it is eager than what you see it is steeper than what you see for International Growth. It is what investors are also excited about. In addition, we mentioned that netflix is going to bring to its board a proposal of a stock split to see if they can get approval to bring down its stock price, which is currently at about 475. Alix thank you so much, scarlet fu. Here are top stories we are watching after the closing bell. Japan has overtaken china as the top foreign holder of u. S. Foreign debt for the First Time Since the Global Financial crisis. The reversal reflects the diverging path of the two countries currencies. The u. S. Ramped up during the financial crisis will stop u. S. Treasury secretary jack lew spoke to bloombergs chief washington correspondent peter cook earlier about the strength of the dollar in the u. S. Economy. Secretary lew im am focusing on the need for other economies to be stronger. I do not want the u. S. Economy to get weaker. We have the good fortune of having the stronger economy. The other economies need to get stronger. Alix bloomberg also spoke to german finance minister wolfgang schaeuble. Surveillance anchor Brendan Greeley asked where deal would be. Minister schaeuble the program has been extended twice. If greece wants to remain in the program, a solution must be found by june 30. That is the deadline of the program. Alix Oil Prices Surging to its highest since 2013. The the shale boom is easing. At the cusp is the lost of oil jobs. My next guest has quite a bit invested in the Energy Industry pr can, pierre arcand, quebecs Energy Minister. Thank you for being here. What does this mean for quebec . Minister arcand we are not a big oil producer, so for quebec it is not as radically bad. First of all, it means that we can export more because the Canadian Dollar is less than the u. S. Dollar right now. For us, it is positive. It is positive also because, i would say it is good to have, i would say more exports for consumers. It means more money in their pocket as well. For the overall canadian economy, it depends on where you are. Of course, for alberta and saskatchewan it is more difficult at this particular stage, before quebec it is positive. Alix you said on the top part of the shale, Tremendous Oil and gas potential, especially natural gas. What is the potential in the future for quebec to develop these kinds of assets . Minister arcand weve started to develop some we have some Oil Extraction right now in the east part of the province, but the problem with shale gas we have currently some shale gas, but the problem is it is between two cities, two very popular cities, montreal and quebec, so the population right now does not want us to do a lot of fracking. There is no moratorium on our part in terms of fracking, but we want to be sure that there is social accessibility social acceptability if there is a project. Alix you guys are importing a lot of oil and there is talk about quebec reducing dependence on imported foreign oil. One it it helped a lot . Wouldnt it help a lot . Minister arcand we have oil from canada, alberta in particular, so it remains in the same country. We do not in word as much as we used to do from the middle east or other regions. We import some of our oil right now from texas, but eventually it is going to be coming from canada, so i think that it is thereabout. Also, we need to understand that in the case of oil, it has to be from the transportation point of view, it has to be economically feasible. Alix when you talk about transportation, i am assuming you mean how you get the oil. Minister arcand that is right. Alix so how do you get it . Rail . The disaster that incinerated an entire town, or you have the pipeline, the Transcanada Energy east pipeline would basically take oil from the west of canada to you guys in quebec. What is most realistic . What is going to be the future of transportation for you guys . Minister arcand it is going to be used mostly for export. It is not going to be used for our own purposes. We have another pipeline with a Company Called enbridge that is producing oil and will transfer the oil to montreal, and it will be refined in montreal and quebec city. In a particular case, we are for this project because the project will serve our needs, but we will continue to do expiration in the project to see if there are options. Alix thank you so much for joining us quebecs minister of natural resources, pierre arcand. What you need to know ahead of tomorrows trading coming up. Alix a big afternoon for ipos, selling everybody. Trading from party city, the largest retailer of party goods, and etsy the online marketplace for handmade and vintage goods. Joining me now is Bloomberg News ipo reporter leslie pecker a very busy woman. Lets start with etsy, a market value of 1. 5 Million Dollars which is eight times last years revenue. Leslie it is insane. If you look at Ecommerce Companies that are treated currently, ebay, alibaba, zulily which is a website for moms wayfair which is furniture, all of those traded about half that, half of eight times. I made calls to analysts and experts, and one way to justify that premium is to look at etsy as a potential takeover target. People turn to ebay as a likely suitor because they are spinning off paypal, and when they purchased paypal in 2002, that company had been public for only five months, so it is not within the realm of possibility. Another aspect is just scarcity. There have not been that many tech ipos this year, so people are starved for growth, and etsy is the one to fill that. Alix they were going to ipo but elated a year after Michael Lewiston came out. What about now makes a good ideal landscape . Leslie that is a good question, and virtu has been able to benefit from the volatility weve seen in the market, and that is because they are a market maker so they depend on volume and there is tons of volume, so Something Like virtu some traders see that as a hedge. Alix what about party city . Why bother . Youre competing with walmart, and you have two huge investors owning 75 of the ipo after the owning 75 of the stock after the ipo. Leslie it is one where pe backers will be there for a while to come, but people think of party city is playing the rebound in consumer spending. People will be throwing more parties and inviting their friends over, and they will be buying their goods from party city. Alix all right, so apparently we are throwing more parties leslie, thank you so much, leslie picker. Coming up next, one in six nfl players goes bankrupt within 12 years of retirement will stop i will speak with hall of fame quarterback warren moon about what it takes to achieve Financial Success off the field. Alix this is street smart. I am alix steel. Today, Aaron Hernandez was found guilty of firstdegree murder. The former new England Patriots star was sentenced to life without parole for the 2013 death of the fiancee of his sisters boyfriend. Hernandez, age 25, had been on trial since january. William morse purchasing professional writers iriders. The terms of the agreement are not available, but the terms are said to be over 100 million. Tony ressler is said to be in a bid to purchase the atlanta hawks. He did put them ahead of the group and form of ahead of former nba allstar grant hill. We have breaking news. Our chief washington correspondent scarlet i could not be the chief washington correspondent if i try, alix. [laughs] this is for etsy, so if you want a knit hat with a cat on top of it, it is said to prices ipo at 15 per share. That is enabling it to raise 267 million in its ipo. Esy looking to price its ipo at 16 a piece to raise 267 million in its initial public offering. Have you ever bought anything off of etsy . Alix i have not, but i know they cater to smaller handcrafters, who are worried that it will raise their costs. Scarlet and bring in other merchants they do not want to compete about. Alix exactly, you just heard leslie picker talk about 80 takeover not out of the realm of possibility. Scarlet whether it is along the line of an amazon, an ebay, or a google. We will see. Alix all right, scar, thank you so much. In many cases, back to sports layers go from starring to failing in the financial arena. A recent report details the recent struggle of nfl players, and there is a substantial finding based on about 2000 draft of nfl playe inrsrs that indicates one in six pro players go bankrupt. Im joined by david meltzer, author of the bestselling book connected to goodness, as well as ninetime pro bowler and pro football hall of fame inductee warren moon. Guys, thank you so much for being with us. David thanks for having us. Alix warren why does this happen . Warren a lot of reasons. Some guys think it will last forever, it will be your whole working life, where the career only lasts about 3. 5 years on average will stop if you do not make the money you can make and be smart with a, you have all these years left of life to live and work afterwards. You have to go in with a plan to useful as a stepping stone to help propel you into the rest of your life. Work on some other things you want to do for the rest of your life as far as your working life. Take the time to experiment and get involved in different things, or whatever it is you went to school for, and focus in more on that profession more so than the football side because you never know what might end. I think a lot of guys not prepare for it. Alix david, how did you wind up helping people . David warren and i both work on transition services, the same discipline and strategy that made them great athletes will also make them Great Service men, but they need help. Just like if they were in pop warner football, you have to shift the paradigm and say this does not happen overnight. These businessmen have been working since you were working in football. A lot of these kids have been studying the financials, reading the wall street journal, and we try to keep them up to speed by surrounding them with the right people in the right ideas. Alix warren, how did you do it . Warren my attorney, leigh steinberg, taught me that football was the stepping stone for the rest of your life, take advantage of that, be smart with your money, invested wisely, but know that you are not going to be playing for a long time. Even know i was able to play a long career, i prepared as if i might be out of the game within five years or whatever. So i got involved in my community, i really got involved in charitable activities, i created a lot of different Networking Opportunities for me for when my days were over, and that i had all these different options for when my playing days were over. While i was playing got involved in other things media commercial real estate just seeing different things. Alix i just want to switch gears for a quick second and talk about Aaron Hernandez. He was found guilty of firstdegree murder and sentenced to life without parole. What does this do for the league . It looks like another black eye the nfl has to contend with. Warren it is a black eye it is a sad day for Aaron Hernandez, for the lloyd family because they lost a family member. It is unfortunate that this happened, no question about it, but i do not think you can take a whole group of nfl players and group them into being Aaron Hernandez. He is one bad apple. There are bad apples out there. There are bad apples in every profession, but there are a lot of great Football Players and a lot of great people in the game of football, thought and i think you can categorize awful lot players because of this incident. Alix david . David i think they separated himself but also use them as a lesson to teach the young players, surround yourself with these circumstances that you want, so it is important that you come into the league and understand that sometimes we have to separate ourselves from our past and change our habits and make sure we are doing the right thing because we have a lot to lose if we do not. Alix gentlemen, thank you so much, pleasure to have you with me, david meltzer, author of connected to goodness, as well as profootball hall of fame warren moon. Up next, we will stay on sports because michael was the greatest alltime on hardware, how is he doing with sneakers . Alix nobody will ever be a do what Michael Jordan did on the court, but now you can own his shoes. Worn shoes are being made available through auction, and joining me to discuss the upcoming sale is dan himmler. We are talking about preair jordans. What is it about these kicks . Dan these are supposed to be historic and possibly the most valuable Michael Jordan number billion that have ever surface. These are Michael Jordan shoes the earliest ones known from his very first days in the nba, and as you can see here, they are not the traditional first Generation Air jordans that people recognize. These are called nike air shifts. This is a model he wore in his earliest weeks in the nba and theyre really incredible. Theres a story as far as how they were acquired. Almost as incredible as the shoes themselves. Alix first off, tell me what they might be worth the big money. Dan were expecting the sixfigure range, they could easily pass or surpass 100,000. Alix so what is the big story . Dan they were acquired by a lakers ball boy who had the gumption to walk up to Michael Jordan during warmups prior to a game on december 2, 1984, asked jordan if he could have tissues after the game, and interestingly these were not the shoes he was wearing a the time. During warmups, he was wearing a pair of air jordans, shoes unlike anything the kid had seen before, and when he cannot wearing these, he was actually a bit disappointed, but Michael Jordan was true of his word after the game gave the shoes to kahhalid ali, and now we are unveiling them for the first time to the public. Alix i should point out that Michael Jordan actually signed them. Dan he signed them right then and there at the time, see have a vintage Michael Jordan signature on both shoes in ballpoint pen. Also, the vintage autograph obviously lines up perfectly with the date and the story in every thing else, so it is another great piece. Alix another item i want to highlight is the jacket worn by none other than john wooden. Tell me about this. Dan another hugely historic item. John wooden, the greatest coach of all time in any sport certainly one of the most beloved has the resume to back that up. He won 10 championships at the helm at ucla including seven in a row, which is really almost unfathomable by todays standards. This is his jacket that he wore in coaching the bruins in the late 1960s and early 1970s, acquired right from wooden himself shortly before he passed away, has documentation validating that. Really just a monumental piece of basketball memorabilia. Alix awesome stuff. Dan imler, thank you so much for sharing that with us at scp auctions. That wraps everything up for her at street smart. Tomorrow, anthony rizzo, can chicago break the curse . You do not want to miss that. Have a great night, everybody. With all due respect is up next. John with all the respective hillary clinton, there is an easier way to do it. Happy national cheat on your taxes day. Republicans take it to the bank, and Lindsey Graham fills in the blank. As hillary risen or sank