Jeremy siegel will weigh in on that. Sign upe deadline to for Government Health care. That is if you can. Hours ago until enrollment closes, healthcare. Gov goes down twice. All that and more coming up. The market on the down. Julie hyman will look at the big tree as we head to the close. Then the underlying bit in market because of janet yellen. Lets talk microsoft. The new ceo continues to make management changes, today announcing in a memo that there are new heads for the cloud and devices business, two, businesses that are very important to microsoft. Seeing those shares rise as he pushes the company forward. A lot of movement in biotech and pharma. Specific test results. For edwards life sciences, studies released shows perhaps we could see an increase of the manmade heart balls that can be inserted without cracking the chest open. Study beinghe presented at the american cardiology conference underway right now. Medtronic rising on similar studies. Biogenic rising as well as they get approval for hemophilia b treatment, which will allow patients to get treatments less frequently than existing treatments. Those are part of the assisting upside and treatment and pharma today. Janet yellen vacated the market today by suggesting rates are not going up, at least in no point in the near future. Yellen indicated the economy will need the fed support for some time. The Federal Reserve takes the gold very seriously. One reason i believe it is appropriate to continue to provide substantial help to the labor market without adding to the risks of inflation was because of the evidence i see that there remains considerable slack in the economy and labor market. The market seemed pretty pleased with her remarks. Maybe the market strength is justified of a fed safety net. Not sustainable improvement. How can the comments possibly be treated as good right now . Joining me is the Deutsche Bank see io economist senior siegel,t and Jeremy University of Pennsylvania Wharton School of finance professor. I will start with you, professor. On thee been so bullish market. The fed has been there to support all of it. Do you continue to think we will with fed support . Most certainly. I think she is starting to backpedal from her news conference. That was a realizes mistake. She once the market to know the fed will keep rates low for a considerable amount of time, maybe even more than six months after qe ends. You mention the market was up almost 100 points before her comments. I think a lot of people came back after the weekend. Is that what is fueling the market here . Is that what investors consume assume should continue to fuel it . Were up a lot in 2000 13 over 12. We had 1215 . Forecasts are very similar this year. What the market is saying now that the record weather is finally getting better, this economy will get better and earnings are moving up. I do not think we need a lot of said boosting here. I think we need tightening. I think they will carry the day with the market if we get the improvement most economists are looking for. What do you anticipate from rates going up . A very long process. Reminded today that it is the stock of the Balance Sheet that matters in her mind off the chains and purchases. The market views the process is a very gradual tightening of policy. Folks like janet yellen see the fed Balance Sheet continuing to expand him albeit as a slower pace, she sees that as more stimulus. We will not know until writes, the market obviously taking this as a positive. Verycan be interpreted as negative. You have the Federal Reserve saying today that things are weak enough that they need to continue to be there. You have the fed acting as the safety net. This is going on five less years. At what point can we take this . Way gekko important shift is rate increases. It is coming. These are all semantics. If things are really so bad, why are they tapering in the first place . If things are so bad, why are we talking about rate increases. I think the economy is continuing to heal after the financial crisis. Job levels are at a level we have not seen since 2005 and two thousand six and 2007. That is a leading indicator for the Unemployment Rate. This Time Next Year we will talk about an Unemployment Rate around six percent. Maybe even with a five in front of it. Wages probably higher than where they are right now and talking about a market that will want to see rate increases. If the market gets to the point where it once the market increase. The real risk is if the fed was doing this forever. Ultimately the fed raising rates and tapering is saying they are comfortable with the fate of the world and will continue to show that. In the meantime, a market that is quite dependent it seems on the fed. When does that actually start to change . When do we moved to the point where people are actually given more confidence in the fact that the fed can raise rates . You mentioned about welcoming rate height. Rate hikes. The market never welcomes them but tolerates them. They will tolerate them if they see an improving economy. In the early stages of fed tightening, historically the bull market can run through early stages of tightening. Runbull markets have anywhere from six months to three years after the fed has started tightening. I do not see any reason to panic, either now or when the tightening is expected to begin. I think we will see gdp growth and higher profits will more than compensate for a few basis points on the fed funds rate. Lets talk about actual valuations. Whatsapp kenda oculus deal for 2 billion. Seems us of a number of the social Media Companies and apps are seeing valuations in the billions. Does that lead you at all to believe there might be pockets of a bubble in this market . There are always individual stocks that will be overpriced. What is important is the overall is around 15. I think it is actually lower than the overall market. Few stocksmed a where there may be accessible list mess, but through the meire market, people asked if this looks the same as 1999 in 2000. Isaiah looks like light years away from that. The tech sector selling at 90 times earnings and internet stocks exploding. One or two stocks that may be overpriced does not to me mean and dangerous thing. Might be more than one or two. You consider 16 trillion in stocks. We may have 100 trillion overpriced. I am not worried about that. Jeremy siegel, great to have you here. We do have breaking news we need to get to. I want to go to betty liu who has information on Mohamed Elerian on. Been wondering since the followup and revelation of the fallout with bill gross, what exactly is he up to . We have a little bit of an inkling now what he has been doing in the months since. He has been writing a book. Book isadmitted today a on the rise and fall of Central Banks. I was able to get my hands on the proposal. The rise and fall of modern central banking and what it means for you. Let me read it for you . In histalks about wheelhouse and talks about centralbank policy. Gap between whatcap Central Banks have delivered and what they will deliver going forward. This is the cap that does so in an actionable way inside sheds light on what individual companies can do today to navigate one is still an unusually uncertain outlook. We would not get this excited about a book proposal by an economist. The timing of it, the question in the market that you know yourself. When will he speak . What is the relationship with bill gross . And what happened with pimco thats essentially created the early exit from the bond fund . So he is not speaking publicly yet, but certainly busy writing. Xterra good. Thank you very much. Ime to beat the buzzer not talking about the ncaa. Hours to go until the enrollment deadline. President obama making a final push for healthcare. Gov. Even though he wants you to signup, you may not be able to. I will explain. The deadline to begin an application for your Government Health care plan is the night tonight. Started today and finish it later. The website down again this afternoon due to the high volume of users. Despite the technical difficulties looks like enrollment could be headed to the 7 million mark, which is what they want to see. Is it alternately a good thing or bad thing for business . Joining way with more is scott horowitz. D paul paul, i will start with you, is this in your view something that will be good for the healthcare industry, bad for the Health Care Industry . It is good that people who were uninsured are Getting Health Care for the first time. The question is how many are under the exchanges . Only a third were previously uninsured. We do not know hominy people have paid their premiums for the first time. If i am an Insurance Company i am tearing my hair out if i have any left because i do not know what the risk pool will be. Two months left to start estimating premiums. I think they are going to go up. This is one of the issues. Comingt the uninsured over and getting insurance, as opposed to someone who already has it. I thought you are going to say what this is all about is the premiums because my premium has gone up. I was one who had to go onto the exchanges and buy Health Insurance and thought i could believe the president is that Health Insurance rates will go down by 2500 dollars per year. I spend literally four days going on the exchanges. My premiums after four days of signing up went up by 2500. To your point as far as getting to the people who need insurance, i heard a different study on the way in, and i think there are different studies because the administration has not answer the question. Of the 6 Million People, 1. 2 Million People according to one only one point 2 million are new people that did not have insurance before. You want the group of younger people that were uninsured because they will not be much of a drain on the system. Absolutely. Fool to a very big cover the cost of preexisting conditions who are not in the pool before. If that does not work in the old estimates are out the window now , insurers have to say i have three months of claims data, what should i do for next year . They will not see a full year of claims data until 2015. One question i asked is whether or not this is good for business. If i am a Small Business owner and just starting up, i might like the idea of this. Now i do not have to worry about providing insurance to my employees. If it isre word is good or bad is it is bad. The one word i hear on the street all the time is uncertainty. So much uncertainty in the Financial Markets and for obama care and Health Care Markets as well. Uncertainty to how it will all play out for the reasons we just discussed here. The uncertainty for what it will cost employers. There is uncertainty there. Of course, as i gave you my own personal example, the prices go up and coverage going down. One of the big problems of the economy right now is as people are struggling with joblessness, we need to see more innovation. We need to see more people going out in starting their own business. This might help them to do that. I think if prices were more fixable and cost were coming down, it would be. I think a lot of Small Business are eligible but saying too complicated to get it. Others are looking at the mandate and say i had to hire fewer employees, less expansion next year. It is the uncertainty in the market. We will leave it there. Thank you. Globalup everyone, of warming warning. A new Climate Change report that has Major Economic ripple effects. Why you should be worried about this one. See you back here. A new ipcc just released report, and what it sounded pretty interesting. Food shortages, civil conflicts increased flooding all because of Climate Change. Joining me is one of the authors of the report, doc or michael oppenheimer. Welcome. Michael oppenheimer. Those are the changes. The effect Global Warming will have on the food and the effects. Food is the headline of the report. We have seen a decrease in crop yields in many places. More so where it is hot. Too hot to produce some crops. Where it is cooler, there are some increases. Over time the demand for food from more population, people eating higher of the food chain is going to ill run crossed yields and will get into a situation where there will not be enough food to eat. What is the timing on a situation like that . Some countries will click we are already in a situation where the decrease will start affecting the availability of expect some malnutrition at least over the next few decades. What were are really worried about is when you get to 2055 where temperatures get high enough that even in developed countries you see crop yields being affected. What about fish stock as well . There has been a problem with fish stock due to overfishing for a long time because the oceans are getting more acidic due to the overloading with carbon dioxide. That is contributing to the decrease in the availability of some fish. Will become a serious problem, particularly for countries that depend on fish. We have the small islands we love to go to for vacation but the coral reefs, those are nurseries for fish. Global warming is destroying them, which means destroying the economies of those places. You are also saying it affects population in various places. Perhaps the coral reef area as one. New things in this report is the understanding that when i met become such that it is hard for people to make a living in a certain place, they move. An indication that migrations driven by climate will become good over time. Climates will become more and more serious. What do you recommend should be done . Job number one, cut the emissions that are causing the problem. As long as the warm earth keeps getting warm up, we will be playing catchup. The size of the problem will grow. The part that we cannot cut because we cannot make a mission zero right away we will have to learn to adapt and be smarter. We will have to adapt. We will be back right after this. Highspeed, hightech and highly controversy. A new book by author michael lewis. You may know him as the man behind moneyball. Book explores the role that highfrequency trading plays in our market. Fractions of a second actually matter. The United States stock market, the most iconic markets and global capitalism is written. By whom . A combination of the stock exchanges amid the big wall street banks and highfrequency traders. Highfrequency trading accounts for half of all share volume. Is it time that we start to heavily regulate the quote unquote rigged markets . I am still here with congressman Scott Garrett who sits on the House Financial Services committee and Arthur Levitt joining both of us here on the phone. Start with you, what is your initial reaction to this . Do you believe highfrequency trading brings to market against your average investor . No, i dont. I think the title of the book suggests small investor is really being taken advantage. Almost a criminal way. I think that israel hyperbole. The two priorities are cost and speed. The markets are faster than ever before. Are there problems with the sec andading cftc are the appropriate forums for working them out. You would think logically that this would increase liquidity. I was surprised that the university of michigan study that said it did not increase liquidity but in fact hindered liquidity. This is getting back to the issue where your average investor went through the flash crash and 2008 and now they are learning about highfrequency trading, which is asputergenerated and feels least as if the cards are stacked against them. We have the United States as the deepest and most liquid market in the world. To your moment of moment to your point of moments ago, the question of do we need to overlay additional regulation on top of this to deal with some of the problems that chairman and i also probably agree on that may be out there, and the answer is absolutely not. If you step back for a moment, you revise part of the reason we are experiencing these problems is to the extent that the overlay and regulations, the regulations have pushed the market in this direction where speed is the only one variable. It gives you an edge but that is where the regulations basically are directing this type of behavior. We have records for five years. What the record show is they never had a down day of trading, except for one day out of five years. It seems pretty remarkable. It is almost natural it is a much Bigger Picture that matt. It has toything else be reevaluated in terms of the Market Strategy and new products. I think the sec is going through a process in looking at the rules that were implemented years ago and has to be changed today. One firm is doing very well. [inaudible] some years ago they use the privileges. Ok, i think we are losing you. Let me bring the representative and here. Talking about half of all shares are traded right now have actually been rated to highfrequency trading and this is up from nothing in 1990. Changing. Is as chairman levin was just saying, as the world changes, maybe the sec needs to adapt. How do we regulate the industry in a way that does not squash innovation in the market and still make sure it is a level is one field . This area that the sec and the Financial Services committee that i chair or on the same page on. We have been hearing and the sec has moved the same direction as well. We have toeed to take a more holistic approach and step back and realize things looking at the structure of the Capital Market. That will send ripples through the investment to midi. They will say what is the sec going to do now in terms of regulation . If you were to say we will come out with an with the new system to regulate the market. The old adage, do no harm. Saying we will come out with a new proposal. The sec does as well. Do not do it through a narrow focus but a broader approach to make sure you are not making the system or some before. That is what we have to do here. This is another area that i agree that we are in the process of looking at imperial Empirical Data as opposed to anecdotal stories or a new book that comes out that has a sensational title that all of a sudden gets everyone stirred up. Trish, the chairman of the to try said she intends a number of selective programs the increments will be traded in decimals or fractions. That is the way to do it, to constantly test all the regulations to see whether they hold true for today. The key to regulation is balance. You cannot stifle innovation, and you still must protect it. That was a bill we just got out of the committee. The sec was not there originally with us, but once we kept legislation moving along, i think they are on the same page with us. That a Pilot Study Program allows a number of the industries to be in it. You do a Pilot Program in a specific area. Us. Hank you for joining Arthur Levitt, great to talk to you. Former chairman and Scott Garrett sticking with me. Also, market calendars. Michael lewis to join us this wednesday at 10 00 to talk about his new book. You do not want to miss it. 1. 9 5 trillion in cash. March madnessby companies. Doesnt it seem like there should be 1. 5 trillion reasons to overhaul the tax code . Plan to repair faulty ignition switches. Testifying before congress. Tomorrow the Senate Chairman will grow about whether the senate has improperly avoided taxes. This comes back from 2009 when an employee claims they shifted to offshore companies, avoiding more than 2 billion in taxes. Caterpillar is not the first to receive that kind of guernsey. Microsoft, hp, and apple facing congressional pressure. U. S. Multinationals have accumulated one point nine 5 trillion outside the u. S. According to security filings. Still here with the republican from new jersey. It seems to me that what is really at issue is the u. S. Taxes. We are Incentivizing Companies to park money overseas. Thank you. Like i am still here that congressman garrett. How is that . What i was thinking of is when members of congress met instead of looking at the panel during that time, they should hold up a mirror and look at themselves. That they are moving moveoverseas but businesses overseas and move jobs overseas. The reason moving over there is because of government regulation and tax code. The taxo do with proposal and hopefully we can get there. Seems as though this is an issue where we conceived our partisanship on. Bipartisanship on. I sat down with president clinton last spring. He brought this up. Repatriation of overseas profits. Way that taxthe code is structured, this incentivized. There is room here for both sides to come together and impact of corporate taxes . I hope so. This is an issue that has been going on for a long time. Figuring out what the numbers are. We need it. There is bipartisanship. As a general bringing the money back here soon as we possibly can for the reasons we discussed. Democrats say we will do that, but when you do that, we will tell you where you can spend it. Putting it into infrastructure. That is all part of the mantra of the administration which is growing capital. The state chooses where you make your investment as opposed to the investors and businessmen. If you bring it back, where it goes, even if it goes into the market itself, stop by that, theoretically it should be good for the economy. If it comes back here, it will generally be good in one way or another. The idea of a free Capital Market idea. Either one of those is going to be beneficial as opposed to sitting up there in seeing jobs go over there. If we have the spectrum of choices here, we should lean towards freemarket capitalism and allow for the most efficient and effective use of the dollars. Who is best to decide that . Politicians in congress . I would suggest it is the private sector are. Next we will have to leave it there. Thank you. I appreciate it. Representative Scott Garrett. Coming up next, not the caterpillar g. M. This ceo of General Motors heading to capitol hill. Problem. Switch we will talk about this next. When gm ceo against congressional hearings tomorrow, she will face new allegations regarding the faulty ignition switch problems that led to at least a dozen deaths in the past decade. Yang yang joins us with more on this. Over thewe find out weekend . How will this affect damninghere tomorrow . New evidence from house energy and commerce report yesterday that points to an internal memo from 2005 that states none of the solutions when the faulty ignition switches presented presented an acceptable business case. Basically, too expensive to fix the flaw. That is why it took the company so long. A some prepared remarks, we were on the obtain remarks she will apologize. Saying sitting here i cannot tell you why it took so long to be announced in the program but i can tell you we will find out when we have answers. We will be fully transparent with regulators and customers. Not all the answers that we are hoping for but it does appear the gm ceo will at least switch from the confrontational approach from here hearings we have been accustomed to with taking in the past and on a more apologetic tone. A lot of politics or what role the government has on the given that they were so involved in the bankruptcy. First, we know that the acting director will be testifying tomorrow. In some ways, the national highway transport association may also be very much to blame in this. T do we expect from him . First investigated back in 2007 and then again in 2009 and 2010. Each time decided there was no basis for any action, lawmakers just as interested in grilling them, if not more. If the government is not going to be there to provide oversight will . D for safe ours, who definitely something lawmakers will be grilling and the grilling will be even sided against the government agency. Getting very political. Campaign type speeches out of the lawmakers tomorrow . It is possible. Be pretty. Will the politics will likely be removed. Appealing obamacare has been the big push, but as far as the chairman is concerned, they are all there to get to the bottom of this of what happened. Politics may not plan to this as much. Thank you very much. Top 10 stocks you need to know about today. The close is next. Janet yellen indicating she has no intention of raising rates anytime soon. Getting to the close of trading with our top 10. Number 10, tesla motors. Carmakers down two percent today. The companys general manager in china resigned unexpectedly for personal reasons as the ceo prepares deliveries of the model s. More on that in the wrapup. Number nine on the lululemon shares up slightly. The yoke of maker yoga apparel maker was raised from an outperform rating to neutral. Fedex. Eight is up about half a percent. Joining a lawsuit filed by new york city against the company stating it wrongfully delivered 140 tons of unpacked cigarettes ordered through the internet or by mail. Deliveries were made despite an agreement in 2006 in which fedex said it would keep those shipments. Number seven, johnson johnson. The Healthcare Company has accepted a 4 billion offer from carlisle to acquire the diagnostics unit. It had been for sale in november and went for nine point i billion in sales last year. Number six, microsoft up two percent. The new ceo, Satya Nadella announcing new leadership roles. Believing will leave the Cloud Enterprise Division and spencer will now head the xbox business. Withmber five, disney shares up about five percent. The animated show frozen the highest grossing of all time of a total of just over one billion. My sons first film in the theater. He liked it. He had not been singing the song like some. This is my daughters favorite movie. Wear pigtails after they saw it. Partebit has to do of that has to do with ticket sales are higher. Sure. M i am looking forward to captain america number two. Number four, target. Downgraded from a plus two and a. They suffer the largest data breach ever during the Holiday Season last year were over 110 million customers were affected. Number three, gm. Shares down slightly. According to documents obtained by an escalator saw automaker canceled a proposed fix for the ignition switch failures and the car. A professional hearing set for tomorrow. 2. 6 million small cars recalled. Number two, fannie mae and freddie mac, both of them are up. Bill increase his stake in the stock. Here, some Hedge Fund Managers have gotten into preferred stock. He is in the comps. Number one stock of the day is at t, up slightly. They have approved the buyback of 300 million shares. Since 2000 12 the Company Acquired over 770 5 million shares. We are at the close of trading right now. The fifth consecutive quarterly gain for the market with dow jones and doing the day of 134 points. The s p is at 1872. Up about 8 10 of one percent as well. We want to get some additional context on todays markets. Janet yellen, as you said, had a lot to do with it. We have seen a lot of movement back and forth among the socalled momentum stocks recently. Stocks that have done very well, coming down to earth, bouncing around, coming back down again. Some people have seen that as a bad sign that these momentum stocks, once they lose momentum, could mean something bad. It could be the argument that it is normal rebalancing. We see that around every quarter, volatility. Healthcare stocks did the best today. They have been the biggest momentum stocks. There were also various studies the came out today, actual news driving the group higher as well. And janet yellen, as you said. Stories we are tracking ahead of tomorrows open, you have alix steel, julie hyman, Olivia Sterns has the honors. Midnight, theht, deadline for obamacare. If you are having a hard time shopping for health care, why not do it the oldfashioned way and walk into a store . Did with thei connecticut insurance exchange, where residents can go and have a conversation in person to figure out which plan works best for them. It is one of the reasons that connecticut is on track to reach double the enrollment goals. They are now marketing their services to other states foreignexchange in a box. They have spoken to five other states. It has been a huge success story. I am sure that you know that only 14 states have opted to set up their own Health Care Exchange and of those only 25 of those sites are working as planned. Connecticut is really a huge success story. How many stores do they have . Only two, but they are planning on opening more. Everyone was so relieved that they could do this. As one woman put it to me, there is no h r block for health care. Was it crowded . Very crowded. Did funding come from the connecticut government . It came from a federal grant to the state. It seems obvious in some ways, right . Online retailers moving into brickandmortar stores. This is like novel, my gosh, Health Care Exchange in person . Talking to a person facetoface to answer these, gated questions. The store is now going to be open yearround. The ceo said that he got the inspiration from apple. He said did you see the genius bars . It is a great idea. He said work for apple, people do not understand their product, they need a facetoface conversation to figure out how it works. Speaking of more facetoface, walmart, which apparently sees a 3 million opportunity in refilling empty shelves. Basically, how much merchandise is available for shoppers to buy. A top focus for the chain. Walmart has been struggling to keep their shelves stocked over the last year. Rene has reported fairly extensively on this. The lack of merchandise has frustrated some shoppers, so they have gone elsewhere. Obtained simms sub some transcripts from a meeting at the company. Associates talking about the emphasis on this. There has been some debate about how widespread the issue is, but what is not debatable is that in 10 of the past 12 quarters the companys inventory has exceeded sales. Inventory exceeded sales . Inventoryst poor management above all. Right . They are just not getting it to the shelves. They have the inventory. Who knew. Correct. The right product is one of the questions. Do you have the people putting it out and not putting it in the right place . In any fashion . Are you have this stuff stacking up in the back of the stores . A lot of things could be going on here. This is something that they are now it shows you something about software in a traditional environment. You need the right mechanisms in place to get your inventory from point a to point the. Part of the challenge for walmart will be figuring out how to integrate their inventory to be a real competitor. Amazon has been investing in their warehouses and they know how to move their merchandise. Walmart needs to catch up. Talking about cars, and honor of matt miller, teslas general manager is leaving the company. The reason it is important, elon musk is setting his sights on expansion in that country. Elon musk said the january sales in the country should match u. S. Levels by as early as next year. Delivery yet to start on the model s in china and they did start taking orders in the country and opened 8600 square foot store in beijings shopping mall. In general is trying to have 5 million alternative energy powered cars by 2020, but they are really expensive. One hundred 18 thousand dollars, but in the u. S. They are 81 thousand dollars. There is always concern about the country slowing, are we really seeing a shift from the rural areas into the urban areas . It will be interesting to see what they do. Obviously the Chinese Government is pushing more energyefficient vehicles. Hundredpoint, what, one 80,000 . I cannot even imagine what it is going to cost. This is not really going to do anything for the future of high efficiency. The Adoption Rate is the thing. Over the weekend we also heard that the company inked a deal with new york state and andrew keep itske tesla, to five stores. They are direct to consumer. Franchisees were concerned that other companies would adopt that. They got around it and had to close their stores and not do direct to dealership. This is a big win for them in new york. Anyone watch basketball this weekend . Of course. Weekend for march madness. The final four are all set. Kentucky versus wisconsin, florida versus connecticut. The shot to remember, pretty incredible, Aaron Harrison hitting a threepointer at a little less than three seconds , allowing that 72 win over michigan, three point spread there. How much is that shot worth . That is what we are asking here. The head coach gets a 150,000 bonus or making it to the final four. A bonus of 45 k to 50 a. K. A. The athletics director gets a bonus of 25 k. Harrison will get to play some more, but no money in his pocket. Assuming he does not get injured between now and then. That is one of the big problems here. You get injured, you are out. This is something that you wrote about in usa today. I feel strongly about this. It is a professional industry for everyone except for these student athletes. Everyone makes money. If you are a coach in division i , you have 1. 4 million in salary. This is the biggest tv ad revenue gain of any sport. So, march madness is bringing in more money for cbs than the nfl, then nba, this is big, big business. Comes at the it expense of a lot of these kids. Isnt the idea that they get the Free Education . But how much is that education, really . Best Case Scenario . ,hey have actually done studies Sports Management did a study showing that the average value of these kids that are playing in the ncaa march madness right now is on average somewhere around 700,000. The top layer from louisville saw 1. 4 million. What are they commanding on the open market . Talk about another big number that can be saved by the federal government. A 14yearold might know how to say the federal government more than 100 million. A teenager analyzed his schools ink consumption could be cut by 24 . He then published a larger study in the journal for emerging investigators on the federal governments inc. Usage and he found that switching to garrett could savend font governments 240 Million Dollars per year. Not huge by federal government standards. It is 15 smaller than the others he was comparing against. Is the rebuttal. There may not be a onetoone comparison. You would have to move up to a size 14 to be able to read it. Did you know that printer ink costs twice as much as chanel number five . Per fluid ounce . It is extremely expensive. Maybe they should print it in chanel number five, then. That is good, too. Next, time for Bloomberg Television to take the field. We will have the president of the yankees here with a rebuttal of our coverage on state spending on sports facilities. Worthwhileare they a investment for taxpayers . Answers, after the break. Staying on sports, we have an inside look at the postnba game plans, later. Welcome back to bloomberg. Breaking news coming out of General Motors, they are expanding their recall, recalling an additional one point 3 million cars in the u. S. On top of the cars they have already recalled he does of ignition failure. They also said they saw the total recall related charges rising up to 750 million in the first quarter. Their new ceo will be down in d. C. , testifying about these recalls tomorrow to congress. We will be bringing you live coverage throughout the day. Up to the start of the mlb regular season, bloomberg investigated the shortcomings of the two decade spending binge on training baseball facilities in arizona and florida. Mike mckee reported from fort myers, florida, the spring home of the minnesota twins, where it seems that taxpayers have reached their spending limit. Not so fast, says the president of the new york yankees. He is the believer of an economic hour of the ballpark for the community. He oversaw the yankees moving to their new home and he joins us right now with his take on mikes reporting. Michael mckee is here to defend himself as well. This should be a spirited, interesting discussion. Is actuallythink good about taxpayer spending on the stadiums . Wax it all depends on where the stadium is and the reasons for it. Here in new york, Yankee Stadium was built on strictly private funding. The yankees paid for every cent of the construction in the new Yankee Stadium. And they paid for all of the Ongoing Operations of it. For example, in Florida Spring training is a tremendous economic boost to florida. Look at this and use actual data, spending and taxes before teams come in. When the yankees move from Fort Lauderdale to hillsboro, it went up in for Broward County and down and hillsboro. So, there was not a demonstrable to the the city county from the yankees arriving. Want is a benefit if you to see baseball, but in terms of tax dollars coming in, you cant find it. Are we able to quantify what it actually does for the local community . County, fort myers, they have two teams. They did an Economic Impact study. Economists dont like it, but take the numbers at face value, those teams are worth 47 million in Economic Activity to the county each year. This is a county with a 21 billion gdp. We are talking about less than 1 10 of one percent of value to that community and they have spent 220 Million Dollars on these facilities, including one stadium that is not even being used. By the time they pay off the bonds they will have paid half of a billion dollars for it. I have to tell you, leo hindery he did not found the yes network. Right, the ceo of the yes network, he was on last week when you were doing your report and he agreed pretty wholeheartedly with you. Thet is hard to admit economic tastes for spending the kind of money they are spending at this point. What has happened is over the last 10 to 20 years, starting with hammond stadium in fort lee, cities and counties have given the teams so much. Certainly if someone offered me a 100 million stadium, i would take it, but the teams do not pay property taxes, do not pay taxes on they keep all the concession, parking, ticket revenue. The yankees have a deal where there is a surcharge on the ticket that goes to the county, but the rest of it stays with the yankees and all of a sudden spring training is profitable for them and it has changed the business model. Randy, dont go anywhere. We want to stick with you after this commercial break to talk of it more about baseball. More after this break. See you back here. Welcome back, everyone. Randy levine is back with me here. We want to shift the focus now to the Global Environment and appetite for baseball, which may have been expended expanded by your recent acquisition. Sum, years at a staggering 155 million. He has been described by Sports Illustrated as a readymade ace. What goes into your thought ross s in terms of investing that kind of money in a player . Around, based on the needs of our team. We needed a young, great starting pitcher. He was available. We met with him. We had scouted him for a long time. How long is a long time . Over a year. They loved what they sawr. So far we are expecting real big things out of him. We think he is exactly what we need. It is an investment, like anything else. 100 55 Million Dollars. You are confident it is worth it 155 million . Youre confident he is worth it . We think you will be enormously successful for a long. Of time. The yankees are all about reinvesting in our franchise. That has been the steinberger way, the yankee way for a long time. That is what the fans deserved. We provide a championship caliber club that competes for the world series every year. You are looking for the next derek jeter. It will be hard to find another eric jeter. He is very unique. We will try to come close. What do you think his legacy will be . One of the greatest players, one of the greatest yankees that ever played. A complete gentleman, on and off the field. When you think about him, you think about a clutch winner. I think he can do the whatever he wants. He has all the qualities to succeed. Doingll see him pop up some incredible things. What about working with you . At thea management role yankees . He has never said anything about that. But if derek jeter calls, we always pick up the phone. And you have worked with him . For 15 years. In a different capacity . Careerill not make decisions for him. I will not make career decisions for him. Do you think baseball will continue to catch on . I think that baseball is continuing to grow. We are approaching a 9 billion industry. Look at last month. Baseball opened the season and lost really it to great success. We went to panama, a great success. Metshad a game between the and the blue jays in montreal. Things are going to get better. All right, we will be watching. Randy levine, thank you so much. As part of the final push to enrollees, president obama took an unorthodox approach, appearing on between two ferns. Another chapter in a unique presidency that has harnessed the power of twitter and facebook to get the word out on a variety of issues. Here to discuss the digital footprint of a presidency, jerry warburg, assistant dean at the university of virginia Baton Rouge School of leadership and public allah say. Author of dispatches from the eastern front. Jerry joins us right now from charlottesville. Welcome to the show. Say is going to be the overall digital legacy of president obama . Thank you very much. It is good to be with you. It is highly commendable that the president sought out alternative means to reach potential enrollees. We have clearly seen that what worked well as a Campaign Tactic is more challenging to use in governance. They were obviously very effective in fundraising and 2012, butacts in there are obviously some glitches in getting a full cohort into the system as of today. Midnight, tonight. But we did see a big spike in enrollment after that appearance. He was also on ellen. He was tweeting about this. Does that actually start to have an effect on Public Opinion and, in this case, enrollment . Effect onhad an enrollment. The initiatives that the administration has taken over the last couple of months, if you look at the raw numbers. You are dealing with a generation that is highly suspicious of institutions, skeptical of Government Solutions there is a recent poll that gives us some fascinating data about the extent to which millenials are independent. The out outreach efforts are cleverly targeted, but it is too early to say the overall impact. I dont want to debate whether or not we actually did that already, whether or not the program will work or if it is good for business, but i do want to talk about the digital imprint of this president. In a very, we are different world, obviously, right now. The Digital World is in fact shaping the political world. Is there perhaps a danger that just as you look at the net nixon and kennedy, people paying more attention to kennedys delivery when they watched on television than how he looked, thinking that he had one as opposed to nixon, radio listeners thought that dixon did a better job. Is there a danger nowadays where your presence on social media, your ability to read a toeprompter, your ability please a crowd in front of Live Television cameras might matter more than your strength on various policy issues . True,hink that is very less you for knowing that contemporary style nixon won the debate. Just folks on television thought he looked better. I understand how that came out as a kennedy supporter. It is important to use social media to inform voters. Used not just to entertain, but to enlighten. Hopefully having diverse sources of direct contact with voters will be to the benefit of all Political Parties and political initiatives. I think that the administration has broken new ground here. I would love to be in the room and they were trying to convince the president to go on the two ferns. It must have been an interesting discussion. Getting involved with young people and the important decisions you are making. All new set all new staff positions now. Political education, from the nixon years to the age of obama, thank you for joining me today. Good to be with you. We have been talking about the growing gap between the rich and the poor, but what about the growing wealth gap between baby boomers and millenials . Households headed by someone under the age of 40, wealth adjusted for inflation is 30 below 2007 levels and as a result, generation y victims generation why not rent, why not skip the extra purchases this month . Why put my money in the stock market . A scenario that could have some disastrous economic implications for the United States. Joining me now to discuss this study, bill evans. Welcome, bill. Thank you. Seems as though your study is going beyond the need for entitlement reform. Explain the implication of this generational wealth divide and what it really means. I think that what we have really uncovered is that it is matter great deal when you were born. There is something to the idea that there are different generations. You mentioned baby boomers. I would distinguish further between generation x and generationy. The baby boomers are thought of as early 1960s, people between 1960 five and 80, generation x,. Fter 1980, generation y the people hit hardest are the people born in the late 1970s, early 1980s. The earlier stage of generation y. People who were new homeowners at exactly the wrong time. , our work the case suggests, that young people that were the most enthusiastic in terms of borrowing aggressively and buying a lot of house, that turned out to be disastrous for a lot of families. Historically previous generations had lived through the great depression. My grandmother did not trust the banks. Who really and truly did not want to put her money in a bank account for fear that she might not get it back. Has there been some actual psychological damage in terms of how young people think about the stock market . Think about the Financial System . And think about housing, given what everything what everyone has been through . It is quite possible. It is a bit early to know. It is hard to believe that it would be as significant as it was during the great depression, as that cannot compare to what we have been through today, but there is no question, and economists have known this for a long time, people viewed it differently, a high savings rate, as you said. They were much more cautious in all respects. For we have uncovered is that there was not quite that strong an effect, but certainly differential impacts across different generations. That will probably translate into behavioral changes, no question. Translated into different, for example, access to homeownership or reentering homeownership. A lot of young families have damaged Credit Scores or have a foreclosure on their record. What does this mean for the American Dream and the ability for each generation to profit more than the next . Wax in itself it means that this is a delay for many families. They will have to regroup, recover, rebuild their financial stability. It is too soon to know whether this will be a permanent klein. We have already seen a significant decline in homeownership rates. If the change in credit standards, lending standards persists, it is probably true that we are going to have lower homeownership rates going forward. Changing the course of the overall economy. Leaveunately, we have to it there. Thank you for joining me, bill evans. Offer one of the authors of that study. Skills know him for his on the court, but now he is going to the bank and hollywood. Plus, comcast is working towards the acquisition of time warner cable. Today in ranks, see you back here. The scene. Or where we bring you the business between entertainment, media, and pop culture. The basketball courts, the agency representing is trying to help out. Relativity media is best known as the Company Behind films like 300 year co it is 300. Jon erlichman sat down with the Relativity Sports ceo to talk about the latest moves in hollywood. What are the plans, john . Take a listen. I like to produce, mostly. Relativity brings up great opportunities for me. Probably would not have been there had i not been involved. These were hip ideas. He was the producer of rock of ages. When you went to see them it the next, there was more after the show. Did you hear about the movie being this big . Places where you can build on your career, what do you think about this business . Wax dont want to do too much. It is all about relativity. We talk all the time. We bring it up and say this is a project we are working on. It is pretty cool. The summary of the script, see if you like it. A partner of ours, we shot that last summer. This is the first one we have done together in that capacity. We dont want to be investing in things where there is not a risk of being successful. Sometimes you do digital shorts. Sometimes you team up with other members of the relativity family. That is the goal of things like that. Absolutely. It is a fun thing to do. Have a humorous approach to it. Right, jon erlichman, joining me right now. Athletes are playing a bigger role in hollywood agencies. You can understand why. The sports heavy img. What does it mean for the industry overall . What does it mean for this particular agency . We talked about that little bit. How much overlap is there in terms of who is being represented by big firms . Some of the other clients fluid a monster baseball contract. Dwight howard, the houston rockets. A lot of teams sports athletes, in this case, it is not as big as whatever we have. The other thing he pointed out. They are competitive with each. Ther there are different areas where they can specialize. They are important here in hollywood. You know what would be interesting . If in fact we saw the ncaa get itself into a situation where player pay was demanded. You saw the northwestern lawsuit last week. Now the players have the right to unionize. I would imagine that you know a lot of folks in hollywood who are calling following this he carefully. It could represent an opportunity for them. Dont want to overstep their boundaries and get into this position where they are making money on behalf of an athlete. It is a reminder of how big the opportunities are. We will leave it there. Jon erlichman, thank you very much. Coming up again, we will take you through the big mergers of the media world next on street smart year co see you back here. Wax all right, in the coming weeks comcast has faced their latest hurdle all right, and the coming weeks comcast has faced their latest hurdle and acquiring time warner cable. How does this stack up against the biggest media mergers of all time . We take a look in todays ranks. Deal. T aol time warner that is it for street smart today. Russia blackburn will be joining me to discuss gmcs mary barras testimony on the committees recall. It will be happening right here, on street smart. She will be testifying on the hill, we will be covering it live. See you right here. Have a good night. Hour,minutes past the rumor television is on the markets. Session, stocks rose. The s p posted its fifth straight quarterly gain. Closing at 18 72. Up a little more than one coffee has surged more than 60 this year due in large part to a drought in brazil. Stoxx, adam johnson has inflight in action. New stocks today . Freshen up the portfolio. People invariably react to unusual strengths, with structs he says it advance has been a flat year. Maybe they are done, i should take some profits. Selling creative opportunities. They have been up debate over the last several years. A recent correction right in here. Sloping. Ine is upward what else is out there . In terms of stocks, at least 200 . Earnings are forecast to grow by 10 in 2014. I found 22 names that fit that bill. Trip advisor, a huge runup over the past couple of years. Trading down recently, yet they are still Earnings Growth candidates. Here i have hosted all 22 on the twitter handle a. J. Insight. Lets take a quick check on the treasury market with strength on the short end of the curve. The 2year note is down by about three basis point. We will be on the markets that is it for all the markets. I am Olivia Sterns. This is taking stock on bloomberg. Monday, marchfor 31, 2014. Today we will be speaking to deepak chopra, the beam it being well being. I will speak with the author, and experts on and experts on wellness. Plus, the wellbeing of