The Company Earnings sales. Amazon. Com being downgraded to neutral from neutral to buy. A survey asked if customers 20 more were 40 more and the numbers dropped considerably. Ubs is now downgrading the stock. Trip advisor, the best performer in the s p 500 today after it came out with numbers, revenue up 26 , beating estimates. Earnings per share dropped. Up 60 . On the site is thank you. The senate is now going voting on final passage to extend the debt limit. Peter cook is joining us for right now with the latest. The procedural vote we just saw, a good sign . The closest thing you could get to a cliffhanger in washington. We just saw play out on the senate floor, fascinating. People following this stuff closely like me, an hourlong vote that should have taken a half hour. Lasted long because republicans with auggling to come up vote to move the debt ceiling legislation to the president posses death desk the dax dax desk. They were really struggling to come up with five republicans to join them. No one wanted to pass the vote because it is tough lyrically. No Strings Attached year. At the end of the day, they have got 67 votes and a big group of republicans. When will president obama signed this . The final vote is underway now and it automatically gets triggered and you are likely to see, you saw the 67 votes in favor of it and sing the vote or not as many republicans will vote on final passage. They will oppose legislation because it only needs 51 votes to pass. 55 democrats to vote in favor and probably very few if any republicans. This will get done in the next five or 10 minutes. Class there you go. Breaking news. Thank you so much. Time for the big story appeared apple is planning to introduce a new apple tv set as early as april. The company is negotiating with Time Warner Cable and other potential partners to add video content. An agreement with Time Warner Cable would mark the first such deal. What does it mean for how you consume your content . Cory johnson joins us now. Jonathan, i will start with you. What will it mean if i have been linked to time warner . What will it look like and how will it change my viewing experience . It is similar to the device they have now in terms of the box itself. If they have an agreement with the cable divider, you will look at the apple user interface. You do not have to deal with the clunky dvr. We will not have to deal with that anymore. Applel tie into the ecosystem. You will able to set your iphone program wherever you are and you can watch all your devices on all your devices. Everybody has been so focused on apple tv. Aligningthat they are with big bag Cable Companies themselves, how does it change the equation for when people might eventually cut the cord so to speak gekko it really is a game changer speak . It really is a game changer. The deals with the cable carriers have been longterm deals they have had. If apple can somehow break into that, they have been trying for some time. The Apple Software instead of the software they have been using, it is an interesting one. At this point, the box has been a way to stream other types of content. We have had one on there now. And apple tv is an interesting product. Apple thinks they have figured , to haveter way cracked the tv code. Cable providers have been very look reluctant to deal with apple because they look at what happened to the record industry and itunes and they do not want to give away their business to apple. If they do not play ball, do they not run the risk of coming effectively obsolete . It seems like you want to play the game. How much will this cost . That is the question. If they are worried about people cutting the cord, the question to you is, how much can Time Warner Cable ring out of apple in terms of content . If you look at gaming consoles and where we are today, i am of the bigef this is the last gaming console lifecycle. Xbox one and playstation for, they are big and expensive. If you look at what apple will do with the tv box, it will probably not cost more than 199 area in the lifecycle of a console, seven years, apple up selling you three or four updates. It is an interesting strategy that i think the company will probably go after. Does time warner or any cable kumble company doing business with apple become like at t and then the interface is what apple is responsible . I am equating it to the iphone. Way to is an interesting think about this. You look at the relationship with the cable provider. It is not just about watching hbo anymore or Bloomberg Television or whatever else. It is also about getting data and the device it goes to star stood be more important. The point about the games is exactly right. Xbox one has a lot of the same features where it could operate as a set top box. They do not have to do with the cable operator. Ive talked to executives on this point. We have bolted and then we would love it if Cable Operators would let people control cable assets through their xbox, but we are not waiting to release a device to get those arrangements in place. You could imagine time warner would offer the apple tv as an addon for customers waiting to pay more for this is a man time warner might become a big customer of apple. My question is if apple is going to put their time and money into the apple tv, what other products are they not going to put money into that investors were thinking about . Class i do not know if that is a great way to put it. Apple is always thinking of what new products categories they will have in the future. We have a big category coming up. I am not sure what they would be diverting money or spending into, but i would be very excited if apple did a tv an update. The moneynk about spent, 18 billion over the last four or five years, you have got to start to ask, when will that pay off . You mentioned wearables. A lot of talk about a watch. We have heard a lot of talk about apple tv. What else is on the horizon . What about for the mobile Payment System . Is that something that might come to fruition soon . With touch id, that is absolutely what will happen. The fact you have fingerprints, one of the most secure ways of identifying yourself, your signature, so to speak, that is huge for apple. Accounts wither active credit cards, the largest in the world. For them to be able to snap their fingers is pretty trivial and we will definitely see that. All the concerns with packing, given what happened to target recently, people are worried about having their information out there. Is linkedory, if it to your fingerprint, maybe more settledeel and protected . Yes. Apple is concerned about privacy and they still think of. Hemselves as software if they were to strike these relationships, this has been so difficult. One of the things not talked about when steve jobs pass was his ability to strike a deal. He was on the phone hounding Music Companies to put their music on itunes. He was personally involved. In the lobbing of the book and a street, he and the Senior Vice President of apple in charge of dealing the book industry, to put their title on the new ipad device, that is something apple has been slow with. Industry has been slow to part with partner with apple in that regard. That brings up a larger point of how much apple will have to pay for the content considering Time Warner Cable worried about losing subscribers. They want to keep their margins juicy. They have to put of original content. That is the question. How much will at the oh will apple put out . This will hurt motorola now. Apple might supplant them in the living room. I think the Cable Operators recognize a better interface might benefit them because they will have happy consumers. Revolutionary. It would mean you have got to get a better modem. My apple tv is a full different ecostand. If you could make it easier, we are there. Thank you. Can watchntioned, you street smart on apple tv. Up next, the french finance minister tells us how he plans to get Business Done with washington and in washington. Cash is only king if you could put it to work. We will get insight in action from adam johnson. More after this. Welcome back. Taking a look quickly here on the markets. We are looking at a mixed market for the day. The dow is down about 46 46 points and the nasdaq is up by five. A yellen rally. If we woulddering see continuation today. People are watching and waiting. We have breaking news out of washington d c. Enrollment numbers have just been released. Phil mattingly joins us now with the details. Thegain, we all remember troubles of the website in october and november. Recovery on the overall numbers appears to be continuing as of february 1, about 3. 3 Million People were enrolled in federal or state exchanges. A big jump up from the initial numbers we saw. A key data point the Administration Officials are pointing to right now, in january, enrollment between up 64 ,als 1834 was bringing the total of those folks up to over 800,000. You have to remember the way these exchanges work, the young and healthy and roll, they may need them. That number jumping up as you saw. Magic johnson, adam levine, all working to try to get people to jump in there. Seeing the numbers move up a little bit for that month is a big move. Aret all helps and they getting the word out. Put it in perspective. Yes, up 65 . Free. 3 Million People enrolled. But how many do they really need . There are two numbers you need to Pay Attention to. One by the end of open roman, the Congressional Budget Office says, to be functional, nobody think they will hit that mark. 3. 3 million and the initial target is 7 million. They are way off. These plants are people who have enrolled, not people who have paid. The administration does not release how many people have started on these plans. The formerng with senator this morning. He has been a key Health Advisor on this administration. Cannot quantify how bad the stuff was for the website. He would be willing to say maybe 6 million by march 31. That would be the high point they could reach. I am be what the republican spin would be on these numbers even though we have a long way to go. It is just that. We have a long way to go and they are nowhere near the 7 million number. The thing they will continually point to is that we do not know how many people have paid. The confusing thing with these numbers, as with any administration, you are putting out numbers that will make you look as good as humanly possible and that is what you see here. Republicans always find there are flaws in these numbers. They will knit pick in each and every item. The administration will stick to, the young people are starting to sign up and republicans will say, you are so far off from your initial projections right now that nothing is going to save this law. Basically, we solve nothing, but we have updated numbers. At least they are better. Thank you. Adam johnson has insight and action today. Take a look at this. Cash is king, provided you put it to work. Time for insight and action. We had a conversation with john taft. Deploy cashyou wisely, stocks are allowed to perform. If youre buying back ryan back stock with your cash, you tend to outperform. We wanted to put that to the test. We screen for all of these, paying down debt at least 10 reduction of your debt. 10 on the dividend by average. As it turned out, he was right. We found 19 companies doing exactly that. These companies are up 36. 6 , effectively double the s p 500. Cash is king if you put it to work. Here are a ton of companies we know. Dowone, a financial chemical. Tj maxx, etc. I am going through quickly. I posted all 19 on twitter. Cash is king if you put it to work. Coming up, dodging the hacker spirit our next guest wrote the book on how to protect postal information whether you are home or abroad. Plus, we hit the runway with our designer to come to talk handbags and more fascinating conversations. Stay with us. Millions of people are gathering for the 2014 Olympic Games there. They are getting hacked. Phones, tablets, pretty much all of your data. It is up for the taking. There happens to be a service that can stop it from happening. We are joined now by the man who made it. Welcome. I want to find out how this works so the next time i go to russia, i can be free of any hackers. Walk us through what you do. Sure. I am russian. It is exciting to talk about this sochi. We are seeing a huge amount of people getting hacked, journalists going out to sochi, etc. It is not really sochi specific. It is more about any major global event where a lot of people gather. It becomes really easy for hackers to snoop on what were doing on the internet, whether we are using our mobile phone, tablet, or computer. Has beenf the hacking debunked. T specifically makes sochi starbucks in new york city . There is not a lot of difference between getting hacked in start ups and sochi. Connect your public wifi network where there is a lot of people around, anybody could easily sniff the signal and see what youre doing online whether it is your passwords or the upset websites your using. I want to talk about the mechanics of how this exactly works. What is a personal Virtual Network . How does that actually work . Hotspot shield, it is a virtual private network. Your phone,load to tablet, or computer, which means it a sickly protects and equips all of the traffic coming to the internet. It also makes your identity anonymous and private so no thirdparty chine to see who you are and what youre doing has access. If the nsa wants access, could they not figure out a way to hack this . We use standard encryptions. It would take about 10 years to equip decrypt your data. That is fascinating. How much does it cost . It is actually free. There is a free version and then a Premium Version for five dollars a month or 30 a year. 30 a year without pesky ads. You haver business, your hand in a lot of different countries, particularly turkey during the arab spring as a way for people to use the internet when there is government censorship. What are you noticing right now . Where is the most activity . We are noticing there is a megatrend in the world around the fat people want secure access to information, whether that means being secure from hackers and governments and malware or any kind of threats. It is lumped in with one big challenge, which is the world wants secure access to privacy information and that includes allg able to really access of the worlds information without censorship. What we are seeing now is in turkey, about a month ago, the government passed a new law which no longer requires any kind of documents. We have got to leave it there. Really fascinating to talk to you. We will keep in mind turkey and their censorship as well. We will be back. Isthe french president trade hisboost finance minister was a key player in that effort. Today and focused joins us now with part of his interview. The key player in all of that, he accompanied president a lot here in washington and they Business Leaders on their trip. It is the job to help the French Economy out of the debt ceiling, the sovereign debt crisis in europe. I began by asking him about the news of the day in washington. The looming deal to avoid the debt ceiling, and the impact that could have on france and the rest of the world. American politics. They discussed whatever they try to findy and a bipartisan agreement. What i can say is that it is good news for the american economy. When things are fit in washington, things are better in your economy and the american economy. This crisisimagine will be solved. When it is solved, it will be good news. Class it has an impact in the rest of the world. It didhe contrary, if not come it would have a negative impact. Let me ask you about the trip. The visit to washington and your visit as well. Yesterday, the president had enough to Silicon Valley to meet. He is trying to lure some investment designers into france. Will you leave here with is something change in mr. . In this trip . France is back on track. We are an innovative and creative country and we are opened to foreign business. I say here, welcome to american investment. Already, about he does companies in the u. S. Hiring about 500,000 people in france, we want to have more. It is the same old for French Business here in the u. S. Ismust be as good as it politically. 60 billion euros between france and the u. S. Countrysnow our leading structural reform, more open to business, having a simple administration, better regulation, that is what were doing today in france. The climate of this business is positive between the u. S. And france. About me ask you prospects for for even more trade. The prospect for a trade agreement, how optimistic or pessimistic are you there will be a deal by the end of the year, which is the target . I would stress our president. Ave a very positive position that is new. Probably one of the first times a french president was so committed to a Free Trade Agreement in europe because he believes this could accelerate as well as this side of the ocean and the other side. It is good to have exchanges together and to free those exchanges. The issues have to be resolved, agricultural, cultural, or procurements. On these points, we have to have discussions. What i will repeat here is that we want a positive conclusion and we wanted fast. Until the end of this year . You know we have got something special. The replacement of the commission. In europe, the commission negotiates in the name of the states. We have a finishing commitment and by the end of the year. Rapidly, wet said, want positive conclusion of those agreements. Again, negotiations are never easy. And the problems are not just over in europe. Problems in the u. S. , the president has a break within his own party. A lot of Top Senate Democrats oppose promotion authority. I know we have more exciting stuff coming. More of that interview with the finance minister from france right after this. I have got some breaking news on dow chemical. In midcamp january, we announced an activist investor was getting in the mix. He does not seem to be happy with gal management. A statement just released. The dow has asked shareholders to accept his word they proposed to split chemical businesses we know neither the methodology or everone the advisor used to arrive at the decision. Transparency is essential. Review andpaired to discuss the analysis that led to the conclusions. Dan loeb said this before. We do not know what is going on in doubt. We have seen the company underperform. Mr. Loeb is getting aggressive. He wants answers. Thank you. We appreciate your update. Lets head back down to d. C. More with the interview from the french finance minister. We spoke here in our bureau in washington. The worlds fifthlargest economy barely grown. A 16 year high. The latest numbers come out friday. I asked for a preview. Class i know the forecast as well as central bank and of our Public Institute for growth forecast, 0. 4 for the Fourth Quarter. I do not know what the figure would be exactly, around that. , would say now, the eurozone off the recession. We had a recession in 2013 and it is over. Our growth rate is one percent per year and is not enough. Better than a recession but not enough. We want to speed up here this is why a pact was launched with firms in order to give them more capacities to invest and reduce the cost of labor and have a better taxation for the firms, tosimplify the access regulation, more flexible labor market. This is what we are working on and, with that, we will be capable of welcoming more and more american firms. We met with businessmen from here, from the u. S. , in the American Chamber of commerce. Were saying, we are happy to be there and we want to expand our business. If we want new business as well, i know sometimes it prevents some people to invest. Off. Nt that to be this is why i expect if this was the business, we could have more than one percent even in 2014 and much more in the years after. Are you at all worried about the volatility we are seeing in emerging markets . Could there be a spillover in the French Economy . Look at it. L if i would not, i would not be the finance minister or somebody responsible. We would carefully watch the moves in those emerging companies, but i do not see a crisis, a global crisis. I think things are controllable. We have the g 20 of the finance minister of treasury. We probably discussed that. Wayink no, we must find the to a cooperative approach in all zones of the world, including the emerging company. I do not see a sign of a global crisis, no. What about the effort to avoid a crisis in the future in europe . To establish this single fund to help, if a bank faces problems. We heard from mario draghi he would be supportive of the idea of speeding up the timetable of reducing the time from 10 to five years. Is that something france could support . A lot of discussions from the European Council and parliament. If those discussions would come, we would be against. Is with thisake banking union, we are giving us the tools to fight against what created the crisis in 2007 and 2008, the fragility of the banking sector. We are against the risk of crisis. We will have a more secure banking sector. It is secure now. We will fight against financial fragmentation in europe. It is very important. I look backwards, 18 months camewhen we came in, first to washington, it was 20 months ago. The question was if the we are a would exist and survive. Cyprus did not default. Zonee is still in the euro and the eurozone is stronger today with better tools. It is really a secure place now. The crisis is over. No doubt about the euro. Ozone,s a crisis in the but how can we speed up our goals . That is what we mean now. Will greece need a third bailout . , weoday, under the program are sticking to this program. You are at the state dinner last night. How is the food in American Wine . The line was great and the food as well. The toast, president obama one who almost two centuries ago gave poorer appreciation of american food. The progress are huge. It was a good state dinner. It was a formidable and beyond. We start eating and in the end, a very strong signal of our friendship. Night for thete french president and the french finance minister. His came from Washington State the champagne or the sparkling wine came from virginia. Much nicer than my dinner last night, campbells soup. We have testimony to the Senate Banking committee. Is this the snow . It is absolutely the snow. We do not know for sure if it is coming. Another snow event. Not unexpected. We thought perhaps this was possible. The question is, when do they make this up, because of they try to do it friday, it might be tough. Townsenate often outof friday. They are on recess so the question is, what happens in round two for janet yellen . Their first week testifying as chairman chair of the reserve. It boggles my mind. Thank you. Up,ppreciate it very coming janet yellen will be talking about the exclusive interview coming up next. The fed chair honored mostly positive reviews, providing her q a with congress. A long one. Her testimony scheduled tomorrow , now being postponed. You have the weather to thank for that one. She delivered her initial outlook on the economic recovery. What is next . We want to bring. N our panel white house correspondent, phil mattingly, and economics editor michael mckay, who sat down exclusively earlier with the fed president. One, you got his take yellens first day. What were the overall impressions of her . Class he thought she did a great job, but of course, you expect that. He is familiar with janet yellen. Forever. En on the fed here is what he told him. Qualitative guidance will allow us to be more in companies more encompassing in what we want to look at in making an adjustment to change Interest Rates. We have notmes, resorted to these kinds of threshold argument. That was not exactly the janet yellen quote, but what he was saying there is it is time for the fed to start moving away from the threshold guidance they have given us. 6. 5 . We are right about that. 6. 6 . He sees the economy gathering so much steam this year, unemployment will be six percent in the year. He says you cannot use the threshold anymore and they outlived their usefulness and you expect to move toward something called qualitative guidance. After the end of the year, we will not have any numbers. Quest that is right. You have a lot of mixed data we have seen. Even if you look at bank activity, you see a lot of mixed data in terms of the risk appetite. It is another thing causing them to shift away. They are seeing a lot of risk on behavior that is making them more nervous. Quest you want to talk about janet yellen. What did he wind up saying about her . She was behind all of the policies the fed had adopted over the last 20 years because she was part of the fed. He said she did not think with the rest of them. She did a great job, as you expect. We all know her very well. We know her very well. She has been in the fed for a long time. She does a very good job of summarizing where the community is really sitting. She did a great job. Phil mattingly, we have talked a lot about how politicized the Federal Reserve has been in recent years. Might that be beginning to shift . You look at the q a that happened yesterday. It seemed as though they gave her a fairly warm reception. Is that just temporary . Might it become increasingly political . They really did. It is a surprise. Usually how it works is the senate will give a decent reception and try to have a good policy oriented discussion. The house, you will always have about five or 10 that basically just want to make a great Youtube Video to send home to their constituents yelling. There is a lot of respect for yellen and a lot of respect among lawmakers and staff for what she has done throughout her career. That said, i cannot imagine House Republicans will let her off the hook from here on out. Put close asian is there and it will not go anywhere. Maybe we will see more fireworks. Thank you. Stick with us. If you missed everything that happened during todaysession, dont worry. We have three minutes and 45 seconds and we will get you caught up on the only stocks you need to know about. Today, your top 10. Cvs gaining. And analysts surveyed by bloomberg, they are looking at 76 on revenues at 3. 8 billion. Stay tuned and we will have those results. All the afterhours earnings coming up for you. Number nine, trip advisor jumping seven percent as Fourth Quarter beat analyst estimates. Advertising, which grew 17 from a year earlier. Number eight is amazon. Down three percent after the companys ratings were lower. A potential risk for revenue for amazon prime. Number seven, shares are up three percent. Designeron assessor a reports earnings. It sold more watches his watches and jewelry. Hire more plans to than 80,000 temporary employees to prepare for the spring. That is the same number it hired in the previous two years. After a winter like we are having, everyone will be excited to get outdoors. Number five is toyota, down a fraction, one third of one percent. The recalling they are recalling one million hybrids worldwide. Glitchsays a software could cause the vehicle to slow down or bring it to a halt. No injuries reported related to the problem. Caught on fire, different degrees, dangerous cars. A number of good pr things to have a recall. Never. And a car. I have this conception of previous owners as pretty devoted, especially the early adopters of the prius. Has the other recall. My parents have a toyota and time, they next said they are buying american. They have been driving a toyota since before i was a baby. Most people are the opposite way. The times. Are behind class number four is dow chemical down after saying the value. Uld reduce its the last hour, we learn third point is currently seeking costs with dows board. My least favorite ad in the olympics, down one percent after they cut forecast for profit and sales growth. The currency change rate fluctuations are cited. It is like, thank mom, who cares about that . Moms of the best. It made me angry. My mom was there for me. She did cooking and cleaning. Nowhere to be found. Make a commercial with the dad. You know their demography. Dads change hampers to. I can speak for my household. In mind, they did. Beer is down. The Company Predicts higher reduction sales will help offset some of the declining offsets. There is the closing bell bringing us to the number one stock of the day. It is apple. Trading today, planning to introduce a new apple tv settop box as early as april. As april and also planning to add video content all according to people with knowledge of the matter. Looking at the day, closing out lower than yesterday. Certainly lower than that yellen rally. Recipients of the nations highest award for the military ringing the closing bell right now. The market ending off about half a point or so on the s p. The dow in negative territory. A lot of earnings news will be coming out momentarily, and we will get to that. We are waiting for earnings from cvs, sysco foods. Off,nk you are kicking it julie. We are starting to get some headlines on cbs. The company is planning to do a neck celebrated buyback, planning to use what looks like 2 billion just in the First Quarter the company is planning to do an accelerated buyback. John is going to look at the statement and bring us more information. Interesting cbs reporting plans for 1. 5 billion in an accelerated Share Repurchase program. To walkchman joining us us through it. The revenue was better than expected 3. 91 billion dollars for cbs. The estimate on wall street was for about 100 million less, 3. 82 billion. Better than expected earnings, . 78 compared to . 76. Its primarily dominated by advertising dollars. Youve got about half of the business that is tied to advertising. Arguably about a quarter to 20 tied to cbs ability to take its content and not just indicate it in the traditional tv way, but also new platforms like netflix and amazon and hulu. They have been striking a lot of deals, noticeably with amazon, for some of the shows that air on that platform a few days after it airs, for example, on cbs. The other part of the pie is the ability to get Cable Companies to pay them more for their content, and those fees have certainly been climbing over the last few years. A final note on the accelerated guysck land plan you were just talking about, that is so reddont. He wants to take the cash and put it to work. Redstone. So when you see a move like that, more interested in seeing the ceo do more shareholderfriendly things like that. We have seen a lot of that. Ive backs. It felt like we buybacks. It felt like we were not saying enough investment in the business. Instead, people were choosing to buybackntent stock. I do not understand how this is the only thing they could come up with to do with that money. I do not understand it. Fair. Talking about earnings, watching whole foods, that is trickling out as we speak. The statement coming out right now. It looks like the earningspershare missed estimates. . 42. . 44 is what the analysts had been looking for. The gross margin, by the way, standing at 35 . Traditionally, the gross margin has been higher than that of some of the other grocers because it is more of a premium grocer, but it looks like at the same time, it brought down the upper end of its Sales Forecast for the year and is also cutting its forecast for earnings or the year. Foods, one of the biggest issues has been trying to keep up the pace of growth that it had maintained for so many years. Now they are starting to see competition as well, having to lower prices to be able to compete. That having an impact on margins and sales as well. Traditional Grocery Stores have been getting more into organics and focusing more on their prepared food offerings, which had been a big part of whole foods business as well, so that has been an issue as well. This is probably the most disappointing quarter would have have gotten in a while. The companies trying to gain more and more market share across the country, and one of the questions you can ask is if people outside of the east coast and west coast are willing to pay up for some of these organic products. Especially at a time where the consumer is somewhat stretched, and you have Employment Trend problems. I think value matters again. At whole foods, you are not really seeing it. Hold that thought. We are going to go back. Joins us right now from san francisco. Am looking at these numbers as they cross. Earningsouncing on gap Gaap Earnings per share of . 44 compared to 55 since last year. Its a little bit better than estimates, but thats because analysts have been wellmanaged. Company, 11 the 11 . 1illion billion, down quite bit from the 11. 1 billion dollars, down quite a bit from the Previous Year where they had 12. 1 billion dollars. Cisco issues a lot of shares when they do acquisitions and give employees stock options, so sometimes the share count is not change even in the midof a buyback. Cisco reporting 11. 16 billion dollars in revenue. Second Quarter Sales down 8 . Their issue had been emerging markets, particularly china. We saw last year that emergingmarket sales were down 21 . I know you are still digging through those numbers. The last Conference CallJohn Chambers talk specifically about spying Prison Program hurting sales in china, and they were calling out the nsa on that the spying Prism Program hurting sales in china, and they were calling out the nsa on that. Lets go back to whole foods for a moment. We were talking about the issues they were facing on the expansion front. We are looking at the stock losing ground in afterhours, down 5 . I do not think we can necessarily assume they will not do as well outside of the coasts. When you look at the success of tripoli, which is very much based on good ingredients, organic products, that has been successful all of the country when you look at the success of chipotle. I was just in the whole foods in new orleans, and it was packed and not with the east coast elite. The goal is they want to reach 400 locations. They have been expanding aggressively him and its not the traditional large urban markets, and the stores themselves have a smaller footprint. Do not under estimate the in the middlemer of the country. We never do that. It rightght, keep here, everyone. We have a lot more coming up ahead for you on street smart. Here. You for being roundup is next. These are the stories we are talking about ahead of tomo rrows open. Ulie is kicking it off we have to talk about the debt limit bill, write . The senate has advanced legislation to suspend the debt limit until 2015. Isnt this refreshing . We dont have to talk about this again for quite a while. The vote was 5543 to lift that limit. This is a really interesting maneuver by john boehner. At first he was talking about adding all kinds of things to it , and he said you know what . This is going to be too much of a hassle, and hes turning the communicator will be doable, so lets not do it. Its interesting what peter cook mentioned yesterday, that that might also mean republicans are gearing up to fight over other things, picking their battles. I think thats true. Its also interesting that the public does not really understand the dance that goes on. Those 43 votes most of them were permitted to vote that way. Orchestrated we have enough votes to pass, so now you can satisfy your constituents by taking the hardline again. I think those games you see will end up playing out in more severe digging in the heels in other areas. I think john boehner has figured it out. He has figured out that the dance that he has to do is dangle an alternative. Not goingreed you are to vote for this. Roll them out one by one and prove he has no other option. I think that is why he is getting away with this. Even statements from the Tea Party Patriots and Freedom Works were angry but in sort of a programmatic way. Well, the tea party is alive and well, concerned about the nsa issue right now. President obama is being sued i senator rand paul by senator rand paul over phone taps. He is also suing the National Intelligence director, the fbi director, and the nsa director. But not george bush. This is the same lawsuit that amnesty brought, and amnesty was denied standing. This is an old lawsuit. Its interesting that amnesty is on the same side as rand paul. The other one was ken kuchen ellis, who never saw a lawsuit against barack obama that he did not like. Do you think it is a pr stunt . It was denied standing before. Its a classaction suit. They cannot prove harm. Do not understand this is purely its interesting because you wonder where his standing would be unless he can demonstrate that he personally was and the impact of that. About it rightng now. Also, 2015, he is up for reelection. He might run for president. Think about that. All that matters was the hassty suit this suit barack obama at the top. That is all that he needs. That is what matters. What is it im looking at . The standardter hotel was built in new york city, it may be sold or the highest price of any hotel since the financial crisis. This is according to the wall street journal. The prices are insane. Bidders are in talks to pay more than 400 million. Cost per room, guys . 1. 2 million. Unreal. This is like a superhip place. I felt very uncool reading this because ive somehow never been to the Standard Hotel. Youve never been to the Standard Hotel . Ive never been. I feel pretty uncool, too. Good. We have lauren here, one of our producers. Is it worth 1. 2 million for a hotel room . We were just in the restaurant. It is kind of a trendy place. It has a funny reputation. Long can itis how stay trendy . I have seen the rooms. They are trendy. They are hit. They are not particularly luxurious. They are trendy. They are hip. Six months later, a year later, it has a great location in the meatpacking district. Somethinge risk of becoming older feeling, tarnished. It depends on by whose standards. You can run torrents through a place that used to be cool for a very long time you can run tourists you can run through a place that used to be cool for a very long time. I have to check it out now. You know the Company Las Vegas sands well. It was attacked by hackers online, who defaced at least one of the companys websites and also posted info about employees. ,ackers took over the home page posted some statements criticizing the ceo. He was the subject of this critique. Now is working with Law Enforcement agencies to identify those that might be responsible. The timing of this is odd because he made comments saying that potentially there should be and then youack, had this happen now, and this is basically what the hackers were criticizing him for. You wonder about the timing cap. Maybe it took that long to figure out how to hack the site, but to what purpose . I think he is a great bogeyman in any season. Although the question is is there any sense of whether it is domestic or foreign . I do not think you know who or where its coming from, but its also odd that there would be personal information for people who work for the company. Makes you wonder if they were somehow associated with the company. Thank you. We really appreciate it. Coming up, we are front row with rebecca bancroft. Look at fashion week coming up. Welcome back to street smart. New York Fashion Week is in full swing here in manhattan make it work, people and i sat down with two people who are no strangers to the runways. Rebecca mccaw for safe feature show on friday rebecca. Inkoff click there are many layers that we measure. There are many layers that we measure. You hope you hit it out on all fronts. That is what it means to be successful. Frontsave multiple touch multiple touch points. The editors come back and watch be virtually. What is the review going to be . We have all the buyers from major Stores Coming in, so you spend several hours with them reviewing. But also, the consumers. Really watching the social trends and social patterns. We have some great Analytical Services which provide a tremendous of out tremendous amount of insight to see what they liked the most and how it compared to last year. How long they watched. Did they watch two minutes or 10 minutes of it . We get very analytical in terms of social engagement, and we are able to take that information, sit down with the buyers, and review it with them. You kind of start putting together this whole microcosm. Theres not just one customer. Why handbags . Why was this the product you spend a lot of time on . I think its a funny story because i actually had my training in apparel, and the , whowoman, jenna elfman was on a popular show at the time him back and asked me if i did handbags, and i live through my teeth and said, of course. So i ran around to the leather vendor that i use, and i got the first handbag made, which was the morning after bag. What does that mean . Is you have version gone out dancing with your girlfriends and you have stayed out all night dancing. When you are going to work the next day. Its not embarrassing. How did it progress from their . It was just one bag. It was going to be an accessory to the apparel, and a friend of , and hete about it could see that there was heat the hind it, so heat behind it, so we made a strategic. Ecision to focus on handbags now you have diversified into mens bags as well. We have one here that looks like sort of an army bag. You have one as well. How did you transition i never think of men and bags in the same sentence. You can ask him about this. Did you . I did. A sickly, it came out of menslly, it came how clothing has changed. You do not have all these extra pockets. As those things slimmeddown and men have more the ipad mini, your phone, your umbrella, your gloves in the winter, all these different sorts of things. You really need a vehicle for those things to go into, and i wanted things that were going to be slim and modern and luxurious and have a reason for being. We saw a hole in the marketplace, and we are at retail now, and we have had a phenomenal first season here. The front row starters in the fashion show . We had carrie underwood. Victoria justice was there. Robb. O had anna sophia was there,drick too. Im sure thats a huge boost as well. Not just how your products are received by designers, but how they are received by the stars as well. From the beginning, we embraced those girls because they do set an example of how they dress, and girls want to look like them. The question is, of course, i will ask my cousin to buy me for christmas. I was really partial to that maroon red bag. Maybe he will get a manbag. Maybe not. He has a backpack. We wont go there. It is interesting how they tackled it. Rebecca moved here living on eight dollars a day, trying not to bartend, trying to do her craft. I lived on 10 a day. I know how that feels. Was allp, before there this talk about submerging markets, the european debt crisis reigned supreme. Well look at how far the continent has come. Along way. That come just today, the italian 10year up to its lowest level since 2006, but before there was a renaissance, there was a real crisis that crippled the european continent. This animation captures that chaos. The european debt crisis visualized. What is the european debt crisis . Euro,he failure of the the currency that ties together 17 European Countries and in intimate but flawed manner. Over the past three years, greece, portugal, ireland, italy, and spain have peter down the culling of teetered on collapse. F financial how did it happen . Uniting europe. For most of europes history, it has been at war with itself. Countries at war with each other tend to do less business together. Europe was always the continent of trade barriers, tariffs, and different currencies. Doing business across borders was difficult. You needed to pay a fee to , and youcurrencies needed to pay a tariff seed to buy and sell to companies in. Ther countries a tariff fee that tend to stifle economic. Rowth then came world war i ii, which then camerope world war i ii, which devastated europe. Because the situation was so dire, the best way to remove these barriers. The tariffs came down. This gave the survivors an idea a unified europe. A union across the continent that would end all future wars. Countries began to band together toward this goal, bringing down trade barriers, lowering the cost of doing business. One of the last barriers involved was the berlin wall. With a united germany, europe was ready. 27 countries signed the treaty creating the european union. This made oohing business across there wassier, but still one major obstacle, the different currencies this made doing business across borders easier, but there was the one major obstacle the different currencies. The euro launched on january 1, 1999. Countries adopting a discontinued their own ownencies and their monetary policies, giving control to the newly formed European Central bank, commonly referred to as the ecb. The euro area now had one unified Monetary Policy, but it still had many different the school policies. Many different fiscal policies. A key reason for the current debt crisis. Monetary policy versus fiscal policy. Its important to understand the difference between Monetary Policy and fiscal policy. Anna terry policy controls the money supply literally how much money there is in the economy and what the Interest Rates are for borrowing money Monetary Policy controls the money supply. Fiscal policy controls how much money a government collects in taxes and how much it spends. The government can only spend as much as a collects in taxes. Anything above that amount it has to borrow. His is called deficit spending before the euro, countries like greece not only had to pay high Interest Rates to borrow, but they could only borrow so much. Lenders were not comfortable lending them too much money, but now that they were part of the euro area posner tonight , the amount they could borrow spiraled. Which and other countries previously could only borrow what rates around 18 could not borrow for the same low rate assure many. How . Ermanys credit card joining the euro area is a lot like sharing a credit card germanys credit card. Now believed that increase was unable to pay its loans, germany and the other big economies of europe would step because theythem were now bound by a common currency. With a new abundance of cheap credit, greece and other European Countries were able to increase spending to previously impossible levels. Some countries embarked on huge deficit spending programs, primarily for politicians to get elected. They made promises such as more jobs and generous pensions, all of it paid for with the new money they could now borrow. Governments of greece, portugal, and italy accumulated huge debts. However, they were able to repay these debts with more borrowed money. As long as the borrowing continued, so did the spending, and the unbalanced fiscal. Olicies in ireland and spain, cheap credit fueled the enormous housing bubbles, just as it did in the United States. Credit flowed, debt accumulated, and the economies of europe came tightly intertwined. Companies began opening act reads and offices across europe. German banks lending to french companies, Spanish Banks french banks lending to spanish companies. This may doing business incredibly efficient while at the same time tying together the collective fate of the euro area. Things continued this way as long as credit was available, and credit was available until 2008. Spurred by a collapse in the u. S. Housing market, a credit crisis swept the globe, bringing borrowing to a halt everywhere. Suddenly, the Greek Economy could not function. It could not borrow money to pay for all the new jobs and benefits it created. It could not borrow the new money it needed to pay its old debts. This was a problem for greece, and because of the unified Monetary Policy, it was a problem for all of europe. Much of europe had been on a spending spree and borrow more money than it could ever repay, but the problem is somebody has to pick up the tab or else every country in the euro area will suffer. Since the countries that ran up a bill could not repay, everyone looked to germany. As themeasures biggest and strongest economy in europe on the germany reluctantly agreed to help theyll out the header countries or help bail out the debtoe countries but only if they agreed to implement strict austerity measures to make sure never happen again. That meant cutting spending, borrowing less, and paying back. Ore debt this sounds like a simple solution, right . Its not. First of all, nobody wants austerity. Governmenttting spending, and since the government is by far the biggest vendor in any economy, when the government cuts spending, it cuts the earnings of many of its citizens. Angry, lose jobs, and riot in the streets. And austerity does not automatically balance a countrys budget. The government collects taxes based on peoples earnings. So when earnings are reduced, the government collect less in taxes. They still cannot pay down their debt. The pain is so bad that it is almost politically impossible to accomplish. On top of that, there are huge cultural differences within the euro area. Xtreme cultural differences germany is very financially responsible. Ever since the terrible hyperinflation the country experienced after world war i, it has been extremely inflationa verse and incredibly careful about spending and borrowing. In general, germans work hard, expect little in terms of state payfits, and meticulously all of the taxes. Many greeks, on the other hand, enjoy generous state benefits and do not pay taxes. Greece has a terrible problem it has never collected the majority of the taxes it imposes on its citizens, and it has always been this way. Joining the euro just amplified it. The german view is that does not work. If you want our money, you need our morals. Headeddebtor countries toward default, the whole continent was in danger, even though the economies were relatively small, they pose a huge threat because the european Financial System is so interconnected precisely because of the euro. Remember, the countries borrowed money from banks, investors, and other governments throughout europe. As they get closer to default, everyone who lent the money becomes weaker, and everyone who went those month those lenders money also becomes weaker and so on and so forth. In one country could reverberate across the whole continent, triggering a Chain Reaction of default. If greece defaults, spain could default, italy, portugal, and ireland could be next. In france, then germany. Pretty soon, it could spread not just across europe, but across the world. Up . Al union or break the problem is even if the debtor nations adopt austerity measures and the stronger countries help them pay down the debt and avoid crisis, theres no system in place to prevent this from happening again. Us back to that fundamental division of Monetary Policy and fiscal policy. Ultimately, the euro area requires a fiscal union to match its Monetary Union or neither. That is, there must be a Political Organization with authority to set fiscal policy within every euro area country that must have the power to cut spending, raise taxes, and set laws. A fiscal union like this could actually prevent excessive are owing and spending borrowing and spending. However, this is an enormously complicated and unpopular notion. It means surrendering property to a higher power. In essence, a United States of europe. Yet, without a centralized fiscal union, countries will continue to run deficits, themulate debt, degrade value of the euro, and threaten the stability of europe. Can europe take the necessary steps and create a fiscal union alongside the Monetary Union, or will the Monetary Union break up thedo euro disappear euro disappear . Really fascinating. We need somebody to unify the entire area and make it one political and one economic but they are still having all those problems. There is still uncertainty as to how you move forward and what the ecb can really do, so it is still reverberating today. I spoke with the European Bank or the other day who told me he fundamentally does not believe this is over, that there will be more pain ahead. Ultimately, you have the choice saw in the choice you that video you become the United States of europe or you get rid of the euro. Were going to take a break and be right back. One stock we are watching right now angies list. It does see firstquarter revenue below estimates. The Consumer Review website charges fees for access to review service providers. Also want to point out that angies list gained almost 7 writeoff or the course of trading, and now down almost 20 . You think about yelled yelp and some of the sites also doing reviews having a tough time after hours. Ok, lets switch gears. Brewing like a big data on capitol hill, the battle over digital song royalties, in particular songs recorded before 1972. Apparently, copyright laws may allow music legends i should not say aloud. It basically would prevent music legends from getting paid for their creative contributions. Of a nonprofit that collects digital royalties and distributes them to music creators joining us on set right now. We have a lot to talk about, but first, tell me about what exactly your role is in this fight right now. Thanks for having me on, by the way. Sound exchange is a nonprofit, as you said, that represents all of the recording artists and record labels and ensures that when usedaid fairly on Digital Radio. Some of the really Popular Services out there today pandora, sirius xm radio, iheart radio. We make sure that when their music is used on the services, they are properly remunerated. You are a nonprofit . What is your cut in all of this . We basically run a very lean shop. Cost outur operations of the revenue stream. Every other penny goes to the works. Who made these every artist before 1972 theoretically, potentially, may not get paid . That seems crazy and threatening. O the creative eye you are right. It does not make sense that one artist to record something in 1973 gets paid and one who records in 1971 does not. There are some services out there who through their interpretation of copyright law think that if it is an older song made before 1972, royalties do not have to be the rollinghink stones is going to go for that. Not just the rolling stones, but who among us does not have icons that they worship from that time period . Its part of our culture and history. A lot of artists today got there on the shoulders of these legends. Is there going to be a lawsuit we will see what this back money . Currently, there are some lawsuits being presented right now where people are challenging the fact that these older artists are not getting paid for this music. You currently have won against serious xm, right . We are involved in a lawsuit sirius xm. Ious xm want all the services to thrive. The fact of the matter is and most people do not know this when songs are played on fm radio, artist regularly will receive no compensation. This is a littleknown fact. At least in the digital world, artists are paid. Why not embrace the model that already exists . Why shouldnt artists say they want their songs out there because the more people that hear it, the more potential they have to make money off the concert circuit . Its ok this may be the case that in some cases you may decide to let something be played because it is promotional or not, but that should be up to the artist. It should be up to the copyright owner. Just because something is promotional does not mean it does not deserve compensation. If you wrote a book and i made a movie out of it, no one would dispute you would make that she would sell tons more books, but no one would dispute that i should get your book for free. What has been the growth rate you have seen in payouts . What does that say about the way we listen to music . Is a fascinating time in the industry. We deal with Digital Radio services. We have paid out over 2 billion to date, but the growth has really been in recent years. In 2005, we paid out a mere 20 Million Dollars. Last year, that rose to almost 600 million. We may be collecting 1 billion in a couple of years. What that says as more and more people are getting their music through streaming and listening to streaming services because they provide an unbelievable opportunity for a lot of consumers and a lot of really interesting business models. But you just want to make sure everybody is paid . Absolutely. Is there any sort of threshold where, say, Pandora Sirius xm mym splurge to pay even more . It makes sense that they should pay a fair amount of their revenue to the core input of their injurious what do artists right now i am curious what do artists get right now . If youre some place on pandora or spotify, what might you get . Historically, you think about people buying cds, but in the streaming world, its fractions of a penny per stream, and that can add up when you have hundreds of millions of streams. That added up to almost eccentric Million Dollars last year. Very important revenue stream for artists and labels. Thank you very much. Thanks for having me. We have a big show tomorrow. Billionaire Richard Branson is going to be here. Steve forbes is going to be here. It is a fantastic show. Do not miss it. We will see you back here at 3 00. Thet is approaching 56 past hour, and that means bloomberg tv is on the markets. Lets look at where stocks closed this session. We did have sort of a late day slump, but still ending the day mixed. S p down just half a point. The nasdaq up a quarter of a percent. We did have some notable stock to client like doctoring gamble and amazon. Com that helped drag down the major averages. In terms of what happened in the treasury market, the 10year note yield at a twoweek high. The 10year at 2. 76 as people still looking at Janet Yellens testimony and thinking that it means that tapering is going to continue. Lets turn to commodities now. Oil is trading at a fourmonth inventories in cushing, oklahoma, declined last week. Thats pushing the price of oil higher. If you look at what is going on in the gold market, gold at a threemonth high, and its up seven percent. Really bouncing back from that terrible year for gold last year as some investors are getting back in. Ideally, lets take a look at the currency market. Not seeing a lot of action in the dollar today. We have seen a number of sessions of declines, the dollar finishing up slightly higher. Speaking of the u. S. Currency, adam johnson did some investigating into whether or not cash is still king. That was in todays insight and action. Cash is king, provided you put it to work. We had a conversation yesterday with a gentleman by the name of john taft. He is the ceo of rbc wealth management, and he says if you deploy cash wisely, stocks will outperform. He says if you are paying down debt with your cash and buying back stock with your cash and growing the dividend paying out your cash, you tend to outperform. We wanted to put that to the test, so we looked at the s p 500 and screen for all those paying down debt. At least 10 reduction of your debt as a percentage of total capital. Buying back stock and growing the dividend by 10 on average over the past three years. As it turns out, he was right. Look at this we found 19 companies doing exactly that, and over the past year, these 19 companies are up to the 6. 6 , up 36 point six percent, practically double the s p 500. Here are 10 of them, but is that we know. Im going through very quickly. Do not worry. I have posted on 19 on twitter, sight. Cash is king if you put it to work. That is adam johnson talking about what is going on with cash and with the dollar. I want to run through some of the companies that were out with numbers after the close of trading. Some notable companies to talk about, among them cisco. The company did come out with revenue and profit that beat analyst estimates. Customers upgrading their , and theyetworks increased data traffic for smart phones, tablets, and laptops, and that in a fitted cisco. The company also boosted its that, in turn, been a fitted cisco. The company also boosted its dividend. Whole foods trailing estimates. Sales growth has been slowing, and the company cut its fullyear forecast in terms of sales and comparable sales, one of the things that has been affecting whole foods has been competition, and also customers just not wanting to spend as much, so margins have shrunk a little bit as it has tried to offer more value. Forhis is taking stock wednesday, february 12, two thousand 14. Todays focus will be on the business of romance. We are just two days away from valentines day. This was during the holiday season. Ither nature not making easy for people to see their balance lines. Transportation has been dislocated across the eastern u. S. We will discuss the logistics of getting people