First major press event as head of the company. Announcement a game changer or another example of microsoft being too late. The captain, husband, former congresswoman, will weigh in on the issue. Lets get straight to the big three, the stocks we are watching. Keeping an ion them. I am looking at citigroup because the shares are down after it failed the test. To do aeholders wanted buyback of more than 6 billion in the fed said, we cannot do it. Your prophecies are not adequate in your shares are falling on that news. Also down, a bit unusual, the company came out a bit unusual. The chairman said the crisis in ukraine said unsettling customers adding to challenges in emerging markets in particular. Those shares are down. Gamestop, we have got the numbermpany says of stores cuts by two percent. Trails analyst estimates last quarter sales. Thank you. We will talk to you again shortly. Onto our big story. The new microsoft ceo made his first public speech since he took over at the head of the company. When it comes the vision is straightforward. It is to make sure the one Million Office users and growing the highaccess to fidelity Office Experience on every device they love to use. Todaysn the ipad and announcement marks one more step in that direction. Class he took over as ceo from Steve Ballmer and is presiding over microsofts shift to a more open approach where it sells applications and services for its own operating systems as well as those for rivals. Is it too little too late for microsoft . Joining me right now from outside the microsoft event in San Francisco is cory johnson area also the bloomberg contributing editor. Great to have you. Start with you. How big a deal is this that office could be on our ipad . Is a big deal. It comes in the context of two thanks. Trying to find better ways to sell office products, cut down on piracy, and have individual users take office everywhere they are. We are in a different world where you bring devices of their choice in their office place and they will sit down in front of a pc that has Microsoft Software on it within ipad that does not. This is a big attempt for microsoft to go to a place where less to a place with more. Is a big move from that standpoint. It signals what microsoft is doing generally. It would be much more interoperable, where they will have a Cloud Service of oracle, and office of software, and where they want to have their competing experience everywhere and it take meaningful revenues this year for microsoft from the product. It makes sense. I will just ask paul why it took so long. Why did it not happen ages ago . Microsoft has left billions of dollars on a table almost certainly. The in the middle the presentation, i kept expecting ballmer to be busting through the backdrop to take down the microsoft executive through the presentation. Nevertheless, yes, this is the problem. This company has been illequipped in dealing with the world that pretends on the other operating systems other than microsoft. It took having both of them in a sense exit the company. Before they could change that. Is this going to be enough . It is big. So big that at one point, the government looked to break it up. Now have a very Large Company you could say is more ge, theyue chip growing tech company. How much of that might be factored in to that taking so long to do . There is a cultural bias against enabling apple. They wanted apple to barely survive, gave them in porton help about 15 years ago when apple needed financial help, and appleed a product on the macintosh, with financial help along the side. Very different world right now. Mandela did this in the Cloud Business of microsoft. You can see the board wrestled with those kinds of decisions. They are clearly embracing that as wellxbox platforms as other products. That will be key to the Company Going forward. Comingf revenue will be from a product. There could be as much as a billion dollars a year. That aint nothing. Is he the key then . His background, his willingness to embrace competitors, is that this, if itpart of is successful . Absolutely. The cloud is agnostic and all embracing. Of the business forces agnostic system with technologies. The love apple or hate apple, you do not have the luxury with Cloud Services. I would like to see him take it further. I would love to see cloud and Companies Rate truly, then, i would see the company with a regrowth story. That is how central the cloud is to the business. What will that mean in the overall scheme of things for the company and its revenue . That is exactly what theyre talking about. They are talking about selling subscriptions to the office. Have a serious impact on the counterfeiting. As much as 50 of the microsoft product offices are fitted and do not have correct users licenses. The notion of being on continuous subscriptions of microsoft, putting Microsoft Office on the cloud, that is a big change for the system and they are moving with all divisions into that direction. Talk to me about the energy in the room. You can say a lot about Steve Ballmer, but you cannot say he did not have energy when he got up there and spoke. So much energy who is often sledding pretty heavily. Today, did youit feel a similar kind of energy had channeled it a different way . How different will he be from his predecessors . My open question is not whether or not steve was a better salesman were that they could be very different. Who is the buyer . Who is the chief decider . In ait be the Consumer World where the consumer decides i want this new ipad thing to work in my office and the corporation follows, or will it still be the people Steve Ballmer is selling, to whom he is calling to demand a meeting . That is the open question and i do not think we know the answer to it. Is one he will have to figure out. In seeing them, they stand in wouldst to each other. You say there is more of a cool factor he is bringing to the marketplace that might be advantageous . That is a low hurdle, but absolutely. There is definitely a cool factor. Point a low bar, i know. The future is about these kinds of convincing people to tie into these Cloud Services and things like that and Security Associated with it. That is not a sale that he ever did well. You sellinge guy the service you had to tie into for years. We shall wait to see. Thank you for joining us. President , to be there is one man you need to convince if you are real a republican. Heading to vegas. Find out why he matters to the Republican Party and what some guys are doing to convince him next. Top contenders for the 2016 republican nomination could spend the weekend in the airport hangar. It is where a billionaire can see no mogul keeps his fleet of planes. The gop is there in vegas to try money. His support and theyre in las vegas to break it down for us, lets start by talking about who exactly is there. There are four bluechip names out there, Chris Christie, the governor of new jersey, jeff bush, nt does guys considered walkercandidates, scott and john, the governor of ohio. They are basically competing in the beauty contest to win his become the candidate he puts his money on. ,e know from the last election he is willing to plunk down 100 million to elect a public presence. If you look at what happened in 2012, he got behind a fringe candidate coming newt gingrich. Gave newt wife gingrich 30,000 and a basically destroyed romney, singlehandedly defunded. We saw example of what can happen when things go wrong and also the power these philip billionaires can have in the primary. If you look at who has been invited out here, if you have moderate mainstream republicans, he learned his lesson and is trying to begin better horse this time around. Crack that is one of the dangers. Disruption, new Newt Gingrichs attacks on mitt romney in which fueled in part by some of his money, really hurt mitt romney down the road when he became the republican candidate. Is there a danger into much power here with one or perhaps three people . The Koch Brothers are also influential. I think the concentration of issue is not it prompts much is the diffusion of power. The various super tax and billionaires who attacked various candidates. Rick santorum managed to beat romney in iowa. Newt gingrich had his billionaire. He beat mitt romney in south carolina. Want to tryothers to unite and get behind one candidate who has the potential to go all the way. What we have got going on here this weekend is the beginning of the process. The process who to find a guy to beat hillary clinton. Lets talk again about who is there. On that list. T he is one of the highprofile potential candidates. Why is he not answered asking for money . What is interesting who is here is a look at who is not here. The people who are not here are the more extreme republican candidates like cruise and social conservatives like rick santorum. Maybe Mike Huckabee is another a possible contender. He has decided rightly social conservatives agespaul a problem for big israel hawk, and rubio, paul ryan, guys like that, maybe on the outside they could wince port, they are not here. Thean see from who is here, profile from candidates, they would like to represent republicans in 2016. Any sense of who he is most likely to go with . New jersey is another state that welcomes gambling like nevada does. Then christie ran into trouble with the bridge gate scandal. The word is if he is not convinced christie is the guy. Under consideration. He would be a really strong candidate. Bilingual, a former governor of a swing state. Brought who has potentially an appeal. He has issues not considered Republican Issues but are kind of broader issues. A Technical High School in las vegas today to give his speech there. He is another name that would be attracted. Who does not want to see a bush versus clinton president ial race. Me for one thing. I do not have a say. That would be exciting, the battle of two heavyweights. Thank you. Coming up, president obama is traveling through europe this week today. Hes in rome but is talking about russia. We will tell you what he said. Is alsoe president meeting with pope francis. We met him for the First Time Since both took office and the focus was on income inequality. It is something we talked about here a lot. We will have both of these stories coming up next. Todays global outlook. President obama is traveling through europe this week. Todays stop is italy. Theyre urging calm congress to move forward. Billion ofpprove 1 loan guarantees and 100 million worth of direct assistance. The white house did not get everything it wanted in these bills. What is the reaction . That is right. There is an untold story. Jack lew has been pressing both the senate and the house to approve changes to the imf and how it the quota works. Looking to boost their allocations and looking to get more voting power. Each country had to approve the. Hanges the white house thought this was 150rfect opportunity Million Dollars in direct spending. Very important. The president voiced concerns on how active members of nato have been. Why is this becoming an issue now and is this a valid complaint . It has been interesting to listen over the last couple of days. The president at this in on just about every public comment. There is concern amongst officials in the last decade. European company has not been pulling its believe in nato. European countries have a deuce defense spending by over 20 . The recommendation as part of should be is that you cutting two percent of your gdp into defense spending. Only three have done that. A lot of concern in the Obama Administration right now, particularly as nato is taking an expanded role in the ukraine issue that europeans are not willing to put in the effort or the resources to match up. Class it is not like 150 that is nothing. How much is this is posturing . Sanctions that will not make much of a difference. We are throwing some money at this. Does it really matter at the end of the day . A couple of things. First, the imf on a staff level agreed to a broader package today, 14 billion in loans in the next it appears. Of u. S. Today will be part it. That matters. The markets have shown that matters throughout the day. It is a big deal. What everybody in d. C. , traveling with the president and trying to figure out what makes Vladimir Putin stop, the fact that he has not been active over the last couple of days, it erie silence is going on. Hope is that the threat of sanctions, particularly of entire site entire sectors, is enough to persuade or from doingm anything. No one knows right now and that is the thing internationally and domestically at home. Class we will leave it there. Coming up, the president made another stop this morning. We will talk about what was on the agenda when we get back. World leaders have been pretty vocal in terms of their focus on income inequality, which we know was discussed in our meeting today. President obama also holds his differences when it comes to things like social issues, gay marriage and abortion. Other areas they just disagree on, there approval rating. President obama sits in the mid40s. Joining me right now to discuss the meeting is father murray. Welcome back. Issue weequality is an have heard a lot about. What is this that connected to the central theme . Peoplee talked about taking care of their brother, their neighbor, being a good samaritan, help people get jobs, economic opportunities. To oneas not said president obama brings up income inequality, sometimes, they might think he endorses policies. They share a similar concern. The poor need opportunity. Class what is the best way to something theat . President have supported. He is certainly taking issue with this particular issue. How did you see this as resolving itself . In many countries, government corruption, government interference, and in many areas, whereindifference to z, the power structure protects his friends and keeps others down. The idea of raising taxes, the pope is not talked about that. He has talked about indifference. It is a change of attitude. Policy makers to think, how this benefit the citizens of the country and not just their chosen group, which is often the reality in these countries. Doing for the pope catholicism right now . I just mentioned the 85 approval higher significantly than the president s right now. The pope is giving new vigor. Pray, receive seconds, love your neighbor and take care of him. It is interesting that the meeting focused on religious liberty, the right to life. The president of the United States is being sued by the catholic bishops here over the mandate catholic groups like Little Sisters of the poor have to provide contraceptive in contraception and Abortion Pills to employees. The president sees the pope and has to this plane to himself why you love the pope but the man the pope works with on a local level are suing you in court. There has got to be a disjunction there. This is a religion that has been challenged in recent years, where you have seen a growing group being drawn to evangelicals. Leaving in favor of being born again in the face in a sense evangelicals face. It is seen as a more tolerant religion. Able to helpo be stem . Job as catholics is to keep people in their faith and attract new people in. Weve done a good job undermining people in latin america the Catholic Church has a lot to offer. Prayer andce for development of spiritual life, a place to love your neighbor. The pope has warned against false gospels, like the gospel prosperity, we tell people if you join the church, god will bless you with money. Otherske advantage of saying, give me your money and god will bless you. Part of the reason you have seen so many people transitioning from catholicism into other religions in latin america is because they have they are seen as more tolerant. Contraception is encouraged. Have only as many children as you can. Do you see a transition with terms ofcis in embracing these issues, such as contraception and divorce . That would be a false hope. Catholicism treats those things as coming directly from jesus. Say, we want to explain that is not the way to go. You haveood christian, to be countercultural. Sometimes having a big family these days is countercultural. The pope supports people who want to broaden the circle of love by having more children. Catholicismssage has taught and will teach but that is an area where the pope will meet opposition. Income inequality, that ultimately will be the platform. We are pointing able to jesus and saying, the way he lived, you should live. That is a challenge for me as well. Coming up next, the the ceo will tell us about his new mission to introduce clean drinking water. Meantfind out who it is to keep out. More after this. For every pair shoes, one is delivered to a poor child. Now the company is taking the mission further. To brew change. This month, the roasting company is launched. For every bag of coffee purchased, they will provide one week of clean water to a person in need. These will come from her wanda, guatemala. , all countries whose communities suffer due to a lack of clean water. His father,by blake. Thank you for being here. Youre goingsting into the coffee business. Thisesting you are doing with a social conscience. Youre still making money. We hope to make money. This is a new business for us. We look at how we want to expand our onetoone model. We look at companies we are already heavily invested in. We are giving shoes away in her wanda, guatemala, and peru in the last several years. Supporting coffee farmers by trading directly with them in these countries where we are already working. The ability to sell the coffee here and invest back in Water Systems there is what makes for a onetoone model. We have seen coffee prices really spike over the last year. I have a oneroom chart. Givene you pricing this what you have got to pay on the ground. The coffee prices spiking and focus on the impact having that is having more on your mass coffee. We are superpremium be and charging premium price. Market,oing after the third wave of coffee. That is the market we are focusing on. How are your margins in Something Like that . Given you have to pay much more and you are trying to provide these countries . Margins are slimmer. Are better in our own cafes. Opened twoonth, we cafes, one in california and one in austin, texas, and were opening one here in new york on elizabeth street that will be open in june. Tland ensigns for Cisco Portland and San Francisco. Building a cafe experience around not only selling the coffee, the higher margin around the cup, but also hoping people another revenue stream funding growth. What is your goal . I do not think we want to take on starbucks. We think there is a real opportunity in creating a more premium experience. Go and really create a community space. Our cafes feel more like my living room. Even though our customers cannot ,o to rwanda and give out shoes they get to see those trips and have the experience and feel like they are part of it. Google gearing up, we have details on this. More in two minutes. Cliff the tech giant is creating a new class of shares. Here with more on what that means for the company and for shareholders, i joined right now by the global head of merging and acquisitions and a partner of a Global Law Firm that represents most of fortune 500 and julie hyman, who has been following this story closely. Explain overall what were seeing. Class it is a little confusing. Google right now has two classes of shares. Markets are what on the and they have one vote. Do not trade and are owned by people like larry page and they have 10 votes for everyone the a shares have. Structure, the founders control about 15 of equity but 56 of the voting right. New shares would be class c treated under googl. Rights foro voting the c shares and it is an effective slip the is essentially a shares would be worth half of what they are now and see shares would be worth about the same price. They are expected to trade pretty much in lockstep. Why it why would a company do this now . How does this help them retain control . In the short term, i do not think it means a lot. The founders are still in control and have 56 of the votes. In my judgment, this is a thoughtful, longterm move. It is a tech company. To compete for talent, you have got to give out equity. Time, even a 101, a shares will stay start to build up. Especially acquisitions. Google is pretty clearly going to make a lot of acquisitions. A lot of cash. A lot of deals where stock is an improvement. There is a preferable way to go. This is very much powerfully looking down the road statement about what they want to do. It is not that this particular approach is unique. But having differential Voting Rights is not unique. In the media world, Liberty Media has done this . Viacom, news, any powerful media mogul as the head of the company, there are structures similar to this. Part of the interesting deallectual question to a junkie will be, will there be a difference in the price . Theoretically, there should be a little difference but people are debating that. ,hat was part of the litigation one of the things that says something about our world today is its up to the easiest to get this done after the shareholders approved it because of litigation and all sorts of other stuff that had to be handled. As a matter of theory, it will test out whether they have value. As a matter of theory, if they do, the shares should trade lower. To the litigation issue, there is a shareholder lawsuit, if the this count is wide enough a year from now, google will have to reimburse shareholders for a percentage of that year it one theory is presentmight prevent activists from getting stock because it would make it harder to assume a larger voting share. Apple is not controlled primarily by a small group of people. This does not change. Are innders right now control. There could theoretically be a challenge but it would be down the road. It would be incredibly hard to get enough stake. The mathematics mathematics of this are one thing. , Something Like 1. 8 of the shares or Something Like that, being in a board room, in todays world, with all the other stuff going on, and everything else, it is not just about the map. It is not about control. It is about who you are and what is happening and distraction and all of the rest of that. And can you convince other shareholders. Ofthere have been a lot incidences that of not not a really edgy one. With a percent or so. Not really the map but the whole dynamic marketplace. Do boards one to look like they are pushing back all the time shareholders it was thinking about where google would be 10 years from now. I give google some credit because they are worrying about 10 years from now. Thank you very much. And julie hyman come i will see you right back here after this. It is time for your top 10 as we close down to the closing bell. Now six percent after its new ceo said he plans to speed up the retailers move into new markets around the world. Earlier, the where maker posted fourthquarter results and profit outlooks below analyst estimates. The buyout firm is taking the holdings public. As 780. Raise as much the third hotel chain in the past five months. 2. 5 . Ckberry is down analyst theyre setting an uncertain future for blackberries handsets. Who knew. Uprthquarter earnings are this year. Class it is amazing. It is amazing. I lost it and i never replaced it. The biggest decline falling more than five percent, the Company Raised its fullyear profit forecast lower than estimated secondquarter results. The Center Recently entered the 91 million deal to be the contractor to fix healthcare. Gov. Six, the city, they failed to pass a stress tests on a qualitative basis, finding defects in its assessment of global exposure. The central bank denied the request to increase the dividend to five cents per share. Kings Digital Entertainment is down again today a day after it a view. Debut. It suffered the biggest decline of a newly listed u. S. Company in over four months when it started trading. It did price chairs with discounts with major fears the stock was down 15 in the debut yesterday. There has been a lot of talk about valuations in technology. We had a whole discussion about it yesterday. The fact that it was not just down yesterday and continues to be down today, shows there is deftly air coming down. People are worried. The company has one big game. We know how fickle gamers are. It is true. I am a gamer and m fickle as well. You can understand why people are worried. You only have one game that is really popular. You cannot really ensure you will have the revenue stream. Number four is out,. Percent, they consider new wrist new restrictions on the warehousing of metal. They note the pending changes could be a positive. Baxterer three is international. The company is rising almost five percent after it announced plans to set into two different companies. One buying pharmaceuticals, the other on medical products. Baxter expects ace gamestop shares falling four percent after the retailer posted fourthquarter results and issued a fullyear earnings forecast that trailed analyst estimates. Gamestop also said it expects to reduce its videogame count the two percent. Number one is microsoft. The ceo will hold nothing back. View theirbe able to Office Documents for free on their ipads. They will be able to edit documents. We are at the close of trading. We will see how this shakes out. We were waffling between positive and negative territory. The s p 500 is ending the day lower. 3. 5 points. Loss ofhas a law a half percent. We have additional context on the market with julie hyman. Energy east out again. Technology was down. We have been seeing a lot of rotation recently. We have these big momentum stocks that have been quite volatile. Financial declines. That was a big part of the story. Citigroup failed the stress test. A little bit of trading around the results. It is time for the roundup. The stories that we are tracking ahead of tomorrows open. Matt miller and julie hyman are joining us. Julie is kicking it off. Class all must always. Lets give you the latest on Malaysia Flight 370. A satellite has shown images of more than 300 objects floating in the ocean. The objects are 215 meters apart. A japanese spacecraft also located items and 11 planes were deployed. All returns due to bad weather. Class a japanese spacecraft . It is a very rough area of sea. It has been difficult for them to start. They are still looking for the black box. The pinging will run out. There is an urgency. What is the timetable on that . I think we have a week left. They have to move quickly if they will find it. If they identify the plane and find it a crash, and everyone is dead, you still want to know. It matters why it happened. It takes away from people who say that it got hijacked. Why would you hijack a plane and why into the middle of nowhere tumor why it happened. New Jersey Governor Chris Christie has had a twomonth investigation. They have determined that Chris Christie was not at fault for the courageous candle. Bridge sle candal. [laughter] that governor christie had no knowledge and he played no role whatsoever. That is my story and im sticking to it. I a cost of 1 million for this. Taxpayers paid for a report that has no legal standing. It is just a pr stunt. The legislator is looking into it. Federal prosecutors are looking into it. To thednt interview people who were allegedly at the core of this thing. The report points to a romance between kelly and another official who was a former campaign manager. They had broken up. Maybe she was distracted. Look over here. Dont look over there. Obviously. It is obvious what happens. This is so silly. And now the people of new jersey are out one million bucks. Depressing, less fiat is turning to the horsepower of ferrari to help alfa romeo launch and turn into a profit machine. Remail has put out this amazing little car. It went on sale in europe last year. It is just coming to new york. You will be able to buy this for 50 grand. It is a pretty sweet price. It is a hot little number. They will make more alfa romeos and they will have ferrari advised on the engine because fiat owns for ari. Talk to me about the alfa romeo ran. It is not an expensive car. You are spot on. , you have to owns and alfa romeo to be considered a true car aficionado. They are not expensive, but their coveted. Develop at one point in their lives and session of alfa romeos both they are problematic and underpowered. Their quirky. Thanks last year they only sold 74,000. 90 of their sales are in europe. If they get any more sales, it will be u. S. And china. Maybe that is why it is good. 90 of the sales are in europe. It has a certain cachet. For sure. Last time there was an alpha remail here, Dustin Hoffman was alfa romeo, Dustin Hoffman was driving it in the graduate. Darrick branch of dealers around the world. You can buy a cheap or a alfa romeo. They are not competitive cars. Exit is the great strategy. That car has gotten such brazen people love it. Praise, and people love it. It is like a porsche cayman. It will be better when the ferrari engine comes in. Will you buy one . I dont like sports cars that i live in america. When i lived in germany, yes but the there is just one of matt. He needs a big suv. I buy motorcycles. Buyerhere are talks to brookstoneated operates 240 locations in malls and airports. Is always some big eye in the massage chair, hanging out. According to a statement from the company, this agreement would allow brookstone to continue to run its words and website stores and website. This is the perfect story. When i read about brookstone, i had a boyfriend in high school who worked at a brookstone. Spencerorever associate with those globes that you put your hand on them. They sell will because it is unlawful lamps . It is a younger demographic. The Sharper Image has already gone breakup bankrupt. These are freerecession companies. You bought things that you didnt really need. You can get all of that stuff online. The people really go to brookstone. Com . No, you would go to amazon. Hammacher schlemmer is the original down on 57th street. Isnt that the only one . I that is higherend. Lets talk about something that is not highbrow, but very popular. An unlikely coupling. Ronald mcdonald and taco bell. They have featured ads with everyday men who have the same name as Ronald Mcdonald. The Marketing Campaign is meant to promote the new taco bell breakfast menu. Here. Have a waffle taco it has been years and this morning. This is what it looks like. The idea is repulsive. I will eat almost anything. Anything involving sausage or bacon, you are a big and. That looks the same now as it did at 9 00 this running. One person who has no fear about this is john leger. He is the ceo. You meant john legend, the r b singer. He said that it looks delicious. We knew that already. Where did they find so many people names Ronald Mcdonald . I know where they found them. They were sitting in the massage chairs at brookstones. [laughter] i want to bring up something quickly. Going back to our google segment, we mix the partakers. Shares will be gool. And the google b shares will be goog. I thank you. Change tosses bring allow you to bring your firearm to the bar. Kelly, husband of former congresswoman gabrielle giffords, will weigh in. Fullcourtput a press on the ncaa to pay a private players. Georgias new Gun Legislation is awaiting a signature from the governor. People can carry loaded guns into bars. It authorizes Staff Members to carry guns and gets rid of criminal charges for permit holders to get caught with guns in airports. Calls it the most extreme gun bill in america. The governor is expected to sign it. Joining me now, captain mark kelly. Welcome to the show. It is great to have you here. This is an issue that hits very close to home. We have seen 21 states passing laws expanding the rights of gun owners over the past year. What is your take on what georgia is intending to do . I are say that gabby and strong supporters of the second amendment. This bill, the one that is about to be signed, it does not look at gun ownership in a responsible manner. Somebody at the worlds Busiest Airport can get through security with a gun and if he has a concealed permit, all he has to do is tell tsa that he has a hermit. He doesnt have to show it. He can leave. If you want to bring a gun aboard an airplane, where will you do it . These are not responsible steps. Georgia actually puts far out there on the extreme of intersectrights nonresponsible gun ownership. The Restaurant Association is very upset. You can bring a gun into a bar. You should not be able to drink if you have a gun in a bar, but somehow, i would think that the combination of alcohol and firearms is not the best thing. You can understand why the Restaurant Association would be opposed to it. Small Business Owners should be really concerned. Alcohol and gods usually not the best combination. A student on a college campus. That was part of the bill as well. Thanks to our membership calling the governor and writing letters and responding to what the legislator was about to do, at least we got that provision removed along with the provision to bring guns into churches. That was part of the original bill. The Business Community is not happy. The community in georgia overall does not seem to be some order but this. I am quoting the atlanta journal, duchenne whole constitution poll who do not like this. They are opposed to the bill. The governor still intends to sign this . I think so. We are being told he will sign it into law. But shows the power of the gun lobby. They have an enormous amount of influence. In georgia and in the we have to bring some balance to this issue. Fortunately, we were able to get the provision that allows guns on College Campuses and in churches removed from that law. Do you think business can play a role here in terms of influencing change . In arizona, the Business Community rallied together and was able to force the governor not to sign antigay discrimination bill. Will we see something similar in georgia . Business leaders are pragmatic people. They can look at a problem and find a sensible illusion. That solution. They can hold their elected officials and governor accountable or these actions will they can ask them to stand with 70 of georgians who thought the main provisions of this will work a bad idea. Before i let you go, i know you are a twin. I am the mother of twins. I find twin relationships interesting. On a verybarking interesting experience with your twin brother stop you will be on the ground as he goes up into you will be up in space as he stays on the ground or vice versa . My brother will be up in space for a year. He is an astronaut and he will bend one year on the International Space station. I used to be an and i flew in space four times. All of my flights were on the space shuttle. Science, look at some especially genetic changes that occur to him while he is in space. I will be the guinea pig on the ground. We look forward to that. Thank you very much for joining us. Ncaa will pull it over 1 billion from the broadcast of march madness, but the players are getting nothing. My take on paper players is next on street smart. Meet the man who will jump off of Mount Everest. He will be here and he will tell me how he plans to pull off this be feat. We will be right back. Suite 16 kicks off today. Is takingtion lawsuit the ncaa to a different kind of court. The issue is higher pay. Cbser broadcasting and understands march madness. They had paid 11 billion for the longterm right to broadcast the tournament. Advertisinge more revenue in the close season broadcast of any of the major professional sports leagues, even the and fell. College basketball is a major industry. If you are a student athlete, basketball is an amateur sport. Is that fair to the player . Its not. As talented as many of these athletes are, let the 1 will play in the nba. They are producing a quality of play that spectators want to see and advertisers want to pay up for. Imagine a College Athletes were actually paid or their work. A study conducted at drexel Sports Management did exactly that. A basketball player at a school at indiana was worth approximately 690,000 a year. The top guys at louisville ro works well over 1 million. This excludes potential endorsement deals, which the ncaa ban. On average, coaches collect a salary of 1. 4 million. The top coaches in basketball and football are paid each over 7 million a year. They have won multiple national championships. They were coaching lowerlevel colleges. Will they be paid same way . Not a chance. The talent level of the players would not create millions of dollars in tv revenue. Tv broadcasters and executives in the ncaa play hugely valuable roles. Everyone on that list is paid well, except for the players. That is unfair. The biggest argument against paying College Athletes is that their comments aided through the value of their athletic atolarships, but for many toptier colleges, this is a bad deal. Is worth more than the actual scholarship. Is that it isue great in theory, but many education pales in comparison to other students. Consider the reality of bigtime college or. How focused would you be on your classes if you were a 20yearold about to play in the sweet 16. Too many schools prioritize eligibility rather than education. There are different academic standards and classes in majors offerlected to eligibility to players. Sportsion rates in major proves that point. These players are less likely to graduate the nonathlete peers. The problem with these arguments is that it is late. Major College Sports are functioning like pro sports. College athletes may be amateurs because they are not paid to write. Play. They dedicate most of their time to the practice of these or. It is time for the ncaa to pay up stop i will be right back. By the National Labor relations or has ruled that College Football players are able to join a labor union. Tos decision could lead major changes for players of all college or. Sports. It brings up the issue of player pay and the Employment Status of College Athletes. We have a Bloomberg Research expert and from San Francisco, david murphy, a partner with a group that has argued cases for 30 years. David, i would like to start with your reaction to them saying that those Football Players can unionize. There are three big points. The first point is what you have already stressed. This could have a major effect on College Athletics stop the second point is that the ncaa as a Regulatory Agency for College Athletics, has been dealing with a period of time on how to compensate them. This could shorten the window. They will have to start moving forward. Outside forces will overtake them. Thing is a big effect for unions. This portrayed them in a positive light. We have a Sports Reporter your Bloomberg Joining us. We are just talking about what this means for College Sports overall. Basically, one of the central arguments for this case is that the ncaa was effectively acting acting like a cartel. They were controlling the players could and could not do. They were controlling when they could and could not make. Ask jeff kessler is saying that if the school is limit the competition to the scholarship, that benefits all of us. We can control that compensation. If that goes out the window, you may have the next hot Great High School order back quarterback owed to another school. But there is more of a market economy. Exactly. You could argue that this is an antitrust ila should. Violation. Effectively the only game in town is to go to college and you do not get paid stop we have talked about this before. A lot of these kids get room and board and that is it. They are working so many hours a week playing sports that they dont have time. If you are school and you did other activities, you could work in the library. You can do research. You could win 100,000 for a great business plan. There are lots of kids who have the potential to get paid. This one activity, like you said, they form the ncaa. It is just a membership of schools. They tell them what they can and cannot do. It is circular because they do not have to be members. They can change the rules of what they are telling themselves. Not everyone is making money. You have the ncaa making lots of money. Theres tons of revenue coming in from television advertisers. Coaches in these playoffs are making 1. 4 million. Everyone is on the take. It is effectively professional sports. An example just came out at ohio state stop a guys making 900,000 a year. A kid with a wrestling tournament. Championship, the there is a bonus for the athletic directors contract. What is the need for that . If you think about the school level, there are 52 schools that made more than 50 million in revenue. This is widespread. It is just in sports. 52 different schools. , howat is amazing to me have they gotten away with this for so long . Why havent we seen players unionize or demand more . Point, they really were not claiming to be employees. It was the old studentathlete distinction. What is different now . Is it because the ratings are through the roof . The money has gotten so bad. If the end is involved. Nike is involved. A sneaker representative went personally to the coaches and wrote them checks to represent these goals. He gets reimbursed from nikes. He did not care. Rate isevenue growth closer to google stock performance. That will give you a sense of how fast the industry is growing. Focus oneen a lot more student athletes getting injuries. Those injuries get covered by workers compensation. They secure medical treatment. The athletes, if they get hurt, they lose their scholarships. It is terrible. Your life is the one thing that you did well, now you know. You cannot even play. They focus on the payment to players. They should get paid. If you look at what they are really asking for, it is things like coverage after career should something happen. A makeup for the gap in scholarships. In flight home. That is what theyre looking for. It is not 20,000 salaries. This ruling only applies to private universities. It does not affect you if you are at a publix eight School Public state school. It is not that wideranging. That is right. Each of those states have laws. In california, the state agency that regulates Public Sector employees make these decisions. They can work out that way. The players understand. This is the most important issue. As a collective unit, they are talking about these sort of things. The ncaa can no longer hide behind the terminology. Does not work anymore stop the kids and their families in a certain way, it is convincing them that this is the best thing. It is wonderful. You can play in europe. Thats right. Football you cant. A lot of these kids dont even think about those leaks. Duping is a word that i have heard. Misdirection. That i have heard. You are on the right track. What is amazing to me is how angry some people get about this. We have some viewers right now were very angry as they listen to this conversation. They tried to unionize factory workers. There are a lot of the same ties. Correct people dont like the idea of student athletes being paid. They are effectively professional athletes. I want to thank you for joining us in this conversation today. If you have any feelings on this, i would love to hear from you. Send me a tweet. There he is. The man who will jump off the peak of Mount Everest. Take a look. It is next on street smart. Practice welcome back. We bring you the be business behind interchange and in pop culture. Daredevil tv is that. Only the worlds tallest point will suffice for this jumper who was leaping off the peak of Mount Everest and dissenting dissenting 10,000 feet. It will be broadcast live on the Discovery Channel in may. He joins the right now. Welcome. I am delighted to meet you, but i think you are crazy. I get that a lot. Im sure you do. Glad i have been climbing mountains for about 20 years. Then i got into the wing suit flying. I really had a passion for climbing and flying. I was trying to put it all together. You got interested in this. What is the highest eight or the biggest job you have already done. I jumped off of the north face of a high peak in switzerland. It is similar to Mount Everest. It is over 10,000 feet. I flew for about four minutes. It was good training for what i am about to do now. We are looking at this video. Wow. What is that like . When you initially jump off, would you feel . There is some adrenaline going. That is great. But it is something that i get used to. You do it for years and every flight is great. How do you prep for Something Like this . It is one thing for me to study before a show. Had you jump off Mount Everest . This is a project i have been working on for a number of years. You have to be a really good climber. I have climbed everest multiple times. I know a good place to jump off of. The Wing Training i have been doing, i built a prototype with my friends tony. It is a special suit. What is so special . It allows me range and speed and a lot of power. It comes in a smaller package than a normal wing suit. We redesigned everything. I can basically turn myself into a rocket. How do you get there . I jump out of airplanes. We can test everything in a safeway stop have you done this in a televised way . I have made a lot of documentaries. I have a pretty wide range of experience. First time on discovery . Yes. I always wanted to work with them. They heard that i have been working on it. They called and asked me if i figured out how to do it . I had. People love this. Let me add that this is life. Theres something about that that people are very drawn to. They do not know what will happen. Why do you think theres so much excitement over Something Like this . The space jump and the tightrope walk across the grand canyon have a lot to do with this. Theres Something Special about watching everything go down live. You do not know will happen. Do you have a family . I have a beautiful wife. What did she say . She has been with me for a long time. She has seen everything that i do. She is very supportive. Mate, you are shooting for an ideal date in early may. It will be dictated by the weather, but sometime in may. Hopefully at the beginning part. How does weather affect you . What is the ideal weather . I would like to have blue skies. A little bit of wind, but not a lot. That is possible. Last, i have equipment that will allow me to do it. That would be ideal. Would you do next . What would talk Mount Everest . Fax it is hard to top this. I would have to go into space. I have been talking with a few people about that. We better call Richard Branson for you. Thank you very much. Good luck to you. We will be watching. Coming up, bad jokes and bad timing. We are ranking the big five pr failures next for you. I will see you back here. We have some breaking news that walmart has two visa sued visa for fixing credit card transaction fees. That is according to a complaint filed on tuesday. Has the street journal amount that they are seeking in damages i billion dollars. We will have more on this as the story develops. What a difference a year makes. It appears lululemon has finally started to deal with that pesky product issues. It is not the only company that has been entrenched in damage control. Here is a look back at 58 fiascoes. Bodies donts work for it. You probably remember that interview. How could i forget it . Have a terrific night and i will see you back here for more street smart tomorrow. It is 56 past the hour. Bloomberg television is on the markets. Im cristina alesci. Stocks it is down. The s p fell like to present. Two percent. It was the lowest since february. Among the biggest losers, banks and technologies talks. They sold shares to the public. Facebook and pandora. Stocks were falling and the fix vix, was rising. What had investors rattled . How can you plan your investment strategies. Joining me now is the chief global strategist with a company. You are predicting or volatility. If the geopolitics or the fed taper . , especially in the ukraine, that will drive volatility. Way we havein the been. A lot of that is in there. It will be isolated. Their are real fundamental issues. I am not sure it will really move it. Willore obvious catalyst be Interest Rates going higher. We are coming off of a strong bond rally. There is strong bond volatility. I would expect higher fixed levels. The question is when. Parsings have been through some confusing economic data. We had a gdp that missed expectations. Jobless claims and Unemployment Benefits to client. Are investors reconciling these signals . I think there is a snow or whether cloud hanging over all of this data. All of this economic data, no one knows what it really means. If you go back six months, you can look at the broader picture of what is the probable path of the economy. It is on a slow bed with probable inflation. There is no acceleration to velocity. If that reemerges from that data, which i think is probably going to happen, that could in turn get some of that bond anxiety dynamics acting play. Today an idean that has been emerging this year. Stocks that led the fiveyear rally had actually been it was that were hit. Luis e losses this year . Is specific. Last years winners are these years losers. They will continue to be losers. That i think so. The market is rich right now. You cannot make a solid case. People are coming into equity. They need to find a home. People are going to continue to rotate out. Biotech is an example. That money comes out. They are buying stocks at sensible prices. How do you had to get that rotation . Options is a good way to do it. You have to be clever. This is taking stock and i am carol massar in for him fox. Pimm fox. Our theme today is do it my way. Oh we talked about a lever rolling that could change labour rolling that could change College Sports. We will introduce you to companies customizing your shopping experience. How about you, or Company Board in an apartment kitchen