Here. Ayo will be all that and more coming up. Lets get to the rally. Effect minutes having an on Investor Sentiment right now. Looks like Interest Rates are low for as long as you can the out there. I want to talk about facebook because we have seen this big movie and momentum stocks recently, stocks that have climbed and climbed and climbed. Facebook has pulled back recently along with other momentum stocks. It is up again today with other momentum stocks. In addition, we had a couple of analyst notes out on facebook, one from susquehanna and from suntrust analysts. Shares should be bought in advance as ad rates at facebook rise. Looking at alcoa. It came out with his numbers yesterday with earnings beating estimates. Comments about aluminum demand broadly, saying it will out face supply this year. That that could be changing on a more permanent basis would be positive for alcoa and other producers. A big decline today sort of bucking the trend. And through it if intuitive vinci robotthe da sales plunging, selling only 87 robots in the First Quarter. We are talking about medicare millionaires. We received the misty tilde report on medicare, big data from the white house. What the government found was pretty shocking. The government paid almost 4000 , medicaloctors professionals, more than 1 million each in 2012. The highestpaid made more than 10 million. You have one ophthalmologist in florida who made 21 million off of medicare. Medicare is the largest healthcare payer in the u. S. Doctors fees make up 12 of its budget. Overtreatment waste or abuse . These numbers are pretty staggering. Critics argue that it leaves doctors to unfair criticism because it does not show the detail of patients, diagnoses ease, procedures because we are naming doctors by name. That is a good thing to keep in mind. What we have here is i can take data set. It was crashing our computers here. Details every payment that medicare, the biggest purchaser in the u. S. Of health care, paid to over 800,000. Spurs. The 800,000 doctors. So it is a lot of information here. It does not give us total context. There are some outliers, like the ophthalmologist. It is becauseif they see a lot of medicare patients, if they are doing procedures they may have a lot of elderly patients who are using medicare. But it is raising questions. These are questions that we have not been able to raise because this is the first time this data has been publicly available. What is your hunch here . Do you think there is a lot of abuse in the system going on . Absolutely. This is possibly the most significant day in the history of u. S. Health policy Research Effort because we have never had this data before. You have to go back and understand the history of the medicare for graham. Medicare program. The medical association opposed it because they feared that doctors pay would go down. They said we will let you charge whatever you want as long as you support medicare. So they went along with it. Ever since then, the American Medical Association has blocked and sued to prevent this data from coming out. Why are they so reluctant . That a sickly doctors often have a financial incentive to over prescribed and overuse tests and over utilize the system. Some doctors who are the worst abusers are catching the headlines, but 40 of physicians are really driving the massive cost of medicare. The reason why medicare is at the center of the middle goal the medical crisis we have. Some careers should get ruined by this and it is a black mark on the ama that they fought for so long to block this. Yeah, if you dont have anything to hide, why are you try to hide it . You raised an interesting point. A lot of this beta has been kept private from the public and medicare has been able to see the data themselves and should be able to go after doctors themselves and go crack down the abuse but they have not done it. There are people who have said that medicare has not done a good job policing themselves because this program is a political hot potato. Everyone wants medicare to go smoothly because it is a program for seniors and no one wants to upset seniors who have a lot of political clout. Medicare has not been going after the fraud and waste and abuse on its own because they have not wanted to upset doctors who might drop out of medicare. They havent wanted to upset seniors who would get their payments denied. Now the information is out there publicly and researchers and reporters and watchdog groups can look at it and go after it and possibly do some of the policing that tricks say medicare hasnt been doing on its own. That is one of the Big Questions here. The ma e maa the ama fighting it, which they should not have done, hopefully they have learned their lesson. What is it that you have seen in this data that causes you some concern, that makes uses dishes, that makes you think medicare is not really as parents parent and as fair as it should be . Anecdotally, we have known this for a long time. If you look at certain pharmaceutical drugs and biotech drugs, the reasons why they sell billions of dollars in revenues, in is the sent versus event one is lucenta versus avantin. Doctors make more money selling those drugs over the alternative. In my old life as a wall street investor, i used to take into account thinking the revenue potential. We have known this for a long time. The fact that some of the best us and that sunlight is the best disinfectant. Doctors will know that it will be out there in the Public Domain and their reputations will be affected. Some of the most egregious things that you saw looking through this, youve got doctors who are allegedly ordering tests because they get some kind of kickback just for ordering that test. That is the concern out there. Outliers,some clear doctors making 100 times more than other doctors in the same specialty. But there should be a note of caution in that there could be very good reasons why doctors are doing what they are doing. One of the thirdhighest paid doctors on their, a pathologist, he is the guy who does the billing for 27 other doctors. Its my name on the bill but the money is not going to me. At least we have the chance to find abnormalities. All right, we are going to leave it there. Coming up, the always outspoken and always insightful mike mayo is joining me. He is coining a new term. Loss greece gets back in the debt game plus. The cofounders of Investment Firm thurlow wondered called out the behavior of activists and the day described as a group of bullies who not only tolerate a fight but relish it. That may provide amusement to them. It can leave a company distracted and vulnerable. They say one man who has never been silent and is always outspoken, analyst mike mayo, has been a frequent critic of mismanagement of some of the big banks. He is here with me to call out Board Members that he calls lazy boys. Welcome, mike, always good to see you. Are you talking about these corporate boards that go along with management, said by, say anything goes, just to keep the peace . Rubberstamp bank boards, i have seen it for 25 years. Butgement teams come and go these boards dont take enough responsibility for overseeing this management team. I brought up some of these examples before but look at the big bank mergers. Been it six s as has been seven years for he and y malin. Who is responsible . Is accountable . I was at the bny mellon. When on the boards going to step up to the plate . You specifically cover the Financial Sector are so you see a lot of it in the space. Beside the boards, what else can be done . They are saying that institutional shareholders need to have a bigger voice. Why arent analysts calling out more of these problems . Parole and weinberg, thank you very much. The Asset Management industry is 100 trillion. Within that, there is a lot more that the shareholders can do. Asset managers like blackrock have been getting more aggressive. These guys are, like, ok, as long as i need to the s p, there you go where the activists are saying i want to have more influence and make a bigger impression and i will do more to accomplish that. What is the difference between the activist and the shareholder right now . Some of the actions are beneficial to the bank. We saw dan loeb at morgan stanley, which certainly didnt hurt. We saw nelson involved in state street. That helped. But sitting back and waiting for the activists to write in with his white hat and save the day, if you are an investor in citigroup am a you cant do that anymore. We need the top Institutional Investors to take more accountability themselves. This oped is not praising activists at all. They compare this to basically the 1950s and mark party is and and mccarthyism. They say it is reminiscent of joe mccarthy in the 1950s in the same way he hid behind patriotism. At the end of the day, shouldnt the goal be to make money and you want these companies to be profitable . So i dont care if it is an activist and an analyst, if people are out there speaking out, really try to rattle the cages and get something done, isnt that a good thing for shareholders . As long as it creates longterm value. Note sayingut my that these large banks should sell off assets, i have gotten pushed back. Ive gotten beat up. And a halfired one times for speaking up sometimes too much. Mike told me he has been fired for being so outspoken against some of these banks. Specifically, what happened . It is documented in my book. I got fired from credit suisse. Why . Fromalmost got fired Lehman Brothers because they did not want to hear wallt there is a chinese where the Research Community is separate from the banking site. Business hasof the gotten better but the driving behavior has not changed one bit. I will tie this back to my lazy boys phrase. If you look at michael lewiss wall street trilogy, the common stridenstead of behavior, incentives are out of whack. I feel comfortable where i am today. Were you ever told, look, we dont want you saying this about Financial Institutions . So specifically . When i was at Lehman Brothers, i was told point blank why are you saying these comments about the banks . Instead of still drive behavior, look at the ratio of iranians to sell ratings. Rating toio of buy sell rating. The ratings agencies are trying to play catchup. What are they afraid of the sides losing their job because the institution does not like the negative publicity . What else is going on here . Access . Biting the hand that feeds you sometimes. Getting spoonfed information from companies, that may be cut off. Why dont analysts go to annual meetings and ask questions . The concern is the potential backlash. I will be going to annual meetings. The next one is citigroup. They have some tough questions to answer and i will ask them as politely as i can but we deserve answers. The difference to a couple of years ago, investors would send emails, call my boss and say, mike, stop it. We dont like what youre doing. It has been a watershed change the last few years. Investors are emailing me and saying, do more of this, mike. In no uncertain terms. Saying wee banks are agree with you almost all the time. So now i am being encouraged. You are seeing the pushback changing. Earnings coming out next week for many of these big banks. Any sense of what it will look like and some of the questions you will be asking . There are two sides of the same coin. One side is that ranks are stronger than they have been in a long time. Ratio isytwoasset the highest it has been in eight decades. That is a lot of bank capital to absorb. Revenuer side is bank growth is the worst it has been in eight decades. Not a lot of growth but a lot of safety. What will be one of your Big Questions for some of these institutions on the call . I think the real question is future equity growth. Margins have been under pressure for a couple of years. Is that changing . Isnt that partly . A result of the Government Intervention . Isnt that partly the result of Government Intervention . Should they be getting smaller to take on more risk . I dont like looking at it from the regulator standpoint. I like looking at it from an investor standpoint. Shrink, free up capital and return that capital. All right, thank you very much. Calling out lazy boys on the corporate side. Coming up, greece will be making its first one issue is since the euro crisis. Find out how much is being offered next and what kind of yields there might be. Will come back. It is time for todays global outlook. Greece is returning to the bond market. Its firstsents issuance since before the euro crisis. It is expected to open up on thursday. But should greece be selling that to the world . Investors will decide the answer to that one. Julie, what does it look like we will see in terms of yields . Someone whoing to didnt want to be named, we are looking at a payout rate between 5 and 5. 25 . This is happening at the same time as the likes of spain and italy and ireland are setting record low levels of years which means that there is the high demand for their debt. So it makes sense that greece would want to get in. You are seeing a premium because reese still has obstacles to overcome. But greece believes it has to pay a bit of a premium to some of these other countries that in order to get that demand. We are seeing some premium on the 10year. When you compare that to that of italy and spain. At the same time, greece tanks that it is time enough to come out with this that. It is a symbolic gesture if anything else because the bailout funds that it is paying back that it had borrowed, it is paying 2 on those. So this is more than double that. So it doesnt mean to in terms of that. But in terms of the systolic , theymbolic gesture existing sovereign debt from greece has returned 30 this year. If you look at other developed markets, it is above those immature he ever market. So if you are in greek debt, you are probably in good shape. Germany considered the healthiest of the bunch, 1. 57 . Yeah. You are right, you are seeing that premium. It willing to me that be going for about 5. 25 when is five point 77 . It is not exactly apples to apples. I will be right back. The fed just released the minutes of last months policy thatng and admitting things are perhaps overstated a bit. Mike, explain what is going on here. They are sounding like they are backpedaling a little bit. They are not backpedaling because this to face before their statement and Janet Yellens as conference. But they all agreed that they should change their statement language. Four times a year, they put out a new economic or cast and give their forecast for Interest Rates. Dots charge, they were concerned that markets would misread that as they were going to raise rates sooner to get to that level. They knew that would be a problem but they felt at the time that, if they added language to that statement, people would Pay Attention to the statement. They were wrong. Sounds like we can all breathe a big sigh of relief because the fed is not planning on raising rates anytime soon. That is certainly my take. The challenges that the blue dots for Janet Yellens idea, now that she is the chair of the fed, it is, like, never mind. Focus what i said in my press conference in my statement. They had an unscheduled, unpublicized meeting on march 4. I interpreted it so there would not be any surprises. We learnedugget today. What did they look at than if we are not looking at the dots and they are no look no longer looking at the Unemployment Rate. What are we supposed to hang our hat on here . Sayingt, you are they like it is the board collective from star trek the next generation. It isnt. Some people are at the lower end of the range. Others in those minutes said that maybe it was appropriate. Have aals that we different outlook on unemployment but the same reaction function. We are shifting from a focus on the zero rates to what is the trajectory back to the normal rates environment once the fed starts hiking rates. I think this bloomberg story overplays the dot story a little bit. I think it is good that the fed is moving towards telling us about their reaction. Have 19strength, you different participants and 12 voters. It will be important for janet yellen as chair to get a crisp and consistent message on what that function is. To me, spend less time focusing on unemployment and more on inflation. We are running at 1. 2 and we have been undershooting for some time. I think inflation will be key to the fed called in the years Going Forward. At full strength, fomc has five members has 19 members. But at this meeting, there were only 16 members. It is going to change the consensus forecast. A consensus move up in rates may not reflect what the fed is thinking. And the chart will tell you who the dots are so youd know which so you dont know which are the voting members. So you do not know how realistic the median is. They are telling us not to look at the dots. What are we supposed to be interpreting out of the fed . Are we supposed to listen to every word janet yellen says and assume that is where everyone stands . We just heard john explained there are a lot of different viewpoints out there. The key thing is that ben bernanke was communicating a simple message. We are not hiking. Messages a more complex janet has a more complex message, that we may start hiking over the next few months. Start focusing on the inflation numbers. That will be the key. Unemployment is not dead. In the summary of Economic Projections, the expanded version that comes with these minutes, there was discussion about everyone but one member thought it appropriate to raise the fed funds if the Unemployment Rate went below 6. 6 . So there is a soft numerical guidance in the Economic Projections it has those words were picked out for a reason. Until we get to six new to 6 and the economy is not healthy and not growing at a clip that they would like to see it was interesting to see one of the interesting nuggets in the minutes is that there is a real debate about the Unemployment Rate and whether or not there is slack in the economy or not. A number of members felt there is not as much slack as the fed angst there is in the labor market and they basically said that inflation is going to be a good guide to this. If we see inflation start to move up, that tells us that slack is disappearing very but how fast disappearing. But how fast is that happening . Bill gross talking about inflation being the key metric. Perhaps as many as 12 months ago, maybe even before that. We will watch inflation but we are not getting any. Maybe that will start changing. Rates are still going down. Numberg increase in the of small firms paying higher wages, it was a very significant shift. Also an increase in the number of small firms raising prices. Takes severaly years to influence environment. As the 1960s show, it grows faster and he could eat too late. Final word to rich. The key thing is that yellen made it clear in her speech last week that wage increases, so long as there is productivity to go with it, is not a concern. It would be nice to see a little increase in wages for sure. We will leave it there. Thank you very much. To become is it time a stock picker . The latest and one of the most dangerous threats to your cyber security. How to fix the heart bleed about. Bug. Art bleed traders are using a new term to describe the recent decline in tech stocks. They are calling it an internal selloff. Amazon mayebook, and be breaking down but the rest of the s p 500 is brushing off the news. If the stock market is splintering into groups of eight winners and big losers, is it time to learn how to become a stock picker . It is a chess game. It is tough but not impossible to win. He is joining me right now. Robert shiller, great to have you. What do you mean it is a chess game where you can win and lose . I think we all know that but it is tough right now in this kind of environment to pick those winners. What do you like . The chess game analogy is exactly right. You are playing against professionals. You come in as an amateur a money will probably be disappointed. You cant expect to win. On the other hand, i think that some people can do it. At a time of market turmoil like this, it is probably the best time for doing such a thing. How should someone approach it . If you feel like the cards are stacked against you and pros are out there, what is it your average investor should be thinking about when they decide to buy a stock right now in this environment . It depends exactly on how much time you want to devote to it. At a very simple strategy is to diversify broadly and then forget about it. But if youre trying to pick winners and losers, you dont want to diverse i and forget about it very but i think those people should forget about it. It is too hard and it is too much of a professionals game. But amateur investors can sometimes do better. That means following some very simple prescriptions and not trading in all the time. If you trade frequently. If you watch the news every day and moving in and out every couple of days, you will move you will lose. Be aetter thing is to longerterm investor and to be a value investor. Have beenf investors talking about michael lewiss book voice. A lot of people in the country feel like the cards are stacked against them when it comes to abouting when you think 2008 and the subsequent flash crash. Then you have this book talking about how there is so much inequity in terms of this electronic trading. What is your take on that . Does it affect your average investor . I took a could look at his book. I have to say he is a good writer. He makes stories seem interesting but i dont think it is that big a story because you will lose a matter of basis wind. Theou trade infrequently, middle segment traders dont matter to you. If you make positions only every carefulthen, you are a value investor, reasonably diversified, you dont need to worry about that stuff. Do you see the market splintering into these two groups right now . Laysok at these momentum that have done so well in the last year and the last several months starting to selloff, does that signal anything to you . I like to study bubbles. Bubbles are all about momentum. When you see a stock going up, there is a process that happens here in it attracts people. The book will get excited. It is classic. It has happened so many times in the last few years. The bubble psychology is a wordofmouth effect. People see others making money and that amplifies the story. So right now, it is a tech stock story. It has been a tech stock story. Will bubbles be tech stocks . You can never positively identify a bubble. But it looks and feels like a bubble, yes. And it has a story that goes it is anand excitement that goes with it. And it is going to turn like it does with other bubbles. Looks and feels like a bubble in tech. Robert shiller, how does it end . A 1999e stocks, situation all over again or not so much . It does not look so bad. The market overall is how they i said. It isnt like 191999. 1999. The price ratio 46 at the beginning of 2000, right now, it is only 25. So they were twice as high. That was driven a lot by tech stocks in those days but it was a broader phenomenon. So the stock market is on the high side and being driven by technology recently. But it is not like it was then. You havesome concern over some of the stocks. We have to leave it there. Robert shiller, thank you very much. Up, open ssl is implementing as many as six d six percent of all websites and it has a bug. It is the latest threat to your cyber protection, open Source Software that runs two thirds of active websites. It has a flaw called heartbleed. Discovered by researchers from google and experts are now urging consumers to change their web password. How does heartbleed work exactly . . Is a full heartbleed is a flaw. Opensource Encryption Technology used by most websites , it is a form of communication on the internet. That is what they used to secure information. Emotional the information on the energetic today, like passwords, instant messaging, emails, your Financial Information is encrypted using the open ssl. The father has just been found actually atbleed is security bug or programming error in that particular program. Has anybody been able to exploit that yet . Thered are some news here and there but not widespread problem yet. But the issue is that he can be very catastrophic if not fixed very ugly. The Smaller Companies out there, if they take some time to fix this, it could lead to very big problems. Like what . Since all the information on the internet is already exposed, the cyber criminals can very quickly gain access to this information, gain access to the flaw and start getting that information. Then use that information to impersonate the users and get access to data. Worry aboutave to their Bank Accounts being hacked online. Obviously a big concern. How should people be thinking about this particular vulnerability right now and how can they protect themselves . For the immediate time frame, minimize your use is to the internet where you divulge any type of information where you your password in or anything like that. For right now . What is happening, until they can patch this open ssl on the servers, two out of three servers are affected, so this is the major him a widespread. Why is the soul of a sudden right now . Why does it matter in the next two or three days and not worry about this two or three months ago . They did not know about it back then. It has been two years that this vulnerability has been out there. A researcher recently discovered it and realize the disc the severity of an area buddy is panicking. You have yahoo and fbi and other servers, potentially that information could be taken off. Are there hackers out there right now who are deliberately who know about . This now or try to take advantage absolutely. They are looking for opportunities. They pull this all of the memory and they had the christian keys now as well. That is what is scary. Later on, they can decrypt it or decipher it here it will only take two or three days to fix . Yes. They arty have the fix up there. Lay off the internet. No passwords anyway. Thank you very much. Coming up, we will talk about this close. Up 172 right now thanks to the dow. The close, three minutes, 40 seconds, 17 five on the dow, of nearly 20 on the s p and you have the fed minutes to thank for this one. Questions relating to the ignition switch that caused the recall of 2. 6 million vehicles, bywill be fined 7,000 a day nhtsa. That is chump change. If it was 700,000 a day. They also quibble about whether they actually refused to answer the question. 7,000, nhtsa could do better than that. Bed bath beyond will post earnings after the bell. Up 7 . Pany posted the owner of em will buy number seven, directv, the Weather Channel has been restored after almost a threemonth blackout. In the deal, Weather Channel said it would cut back on reality whether programming. Slightly. P the Worlds Largest microchip maker will cut jobs as it closes its site in costa rica. Constellation brands is down 1 . It recently acquired corona beer brands. The company cited brewery expansion project costs higher than estimated. The First Quarter net sales could be in the low to mid single range. Dropped to the lowest level since february. So things are looking number four, toyota postup more on this story in the roundup and a little bit. Matt has details for you. Number two number three, hershey postop it cites biggest decline since november. It was also downgraded from neutral to sell at goldman sachs. And number two is barnes noble. The struggling book retailer may spin off its ebook reader division. Actually, it looks like its shares are up. Liberty media dropped its stake in the company, which makes which may make the spinoff more readable. And our number one stock of the day, la quinta. It did lowerthanexpected, 650 Million Dollars in its ipo. It is the Third Company to be taken public by blackstone in the last six months. I kind of like saying la quinta. We are. It looks like we are up 180 points on the dow. 178, ending at the session high here. [closing bell] 1. 1 is the game for the dow. The s p up 20 monday the session high of 1872, with the nasdaq closing the day up 1. 75 . We have seen a rally back from the losses it had seen just last week. Of this is the result of the fed. Investors are breathing a sigh of relief that Interest Rate will not go up soon. We want to get additional comment on the fed minutes and the market from julie hyman. We continue the phenomenon rate where the fed comes out and said something and the markets are spooked because the rates are going to go up, and then you see a reassurance happen. That is what seems to be happening once again. It is all about the mulligan today, and this time on the upside. Had momentum really catch investor attention, whether it is falling or rising. Facebook is up again today. You saw a lot of the biotech up again, and a lot of the technology. I know you are looking at some breaking news over here. Looking at some news on new jersey. But anyway, this market has clearly seen a lot of upside here. Because of the fed. That is a big part of it. The way, we want to move onto to the roundup. These are the stories we are talking about ahead of tomorrow. Nat is kicking it off. We were talking about toyota earlier. People all day today were saying it is one of the biggest recalls in history. And it is not even the secondbiggest recall for toyota. I dont know where everyone is getting this. 6. 3 8 million vehicles to be exact. Toyota recalled 7 million cars last year and in 2010 for the accelerator, 10 million vehicles. Situation could be worse. Basically, what you will see this year is carmakers, because of the criminal find that toyota got for the 2010 accelerator issue, and because of what mary barra went through because of congress, you will see a lot of carmakers doing a lot of recalls. As far as the breakdown, you can see here at 760,000 front stable steering column brackets. The way, actually 64 me 6. 4 million vehicles. About 3. 5 million of these cars were recalled for a very serious issue, driverside airbags not going off because the wiring was not properly feeling the weight of passengers and then being activated. Those are the only lifethreatening issues. We have so far this year 11 million cars recalled and its only april 9. Last year, 22 million cars were recalled in the and higher year. Expect to see that eclipsed. How do you think they are handling it versus g. M. . G. M. Has been a pr nightmare. How would you contrast toyota . Not much different, because a lot of these vehicles that they are recalling are as old as 2004. You got highlanders, tacoma, corolla, camry pretty much every imaginable toyota except for avalon being recalled. These are decadeold cars as well. Why havent they caught the sooner you go the same why havent they caught this sooner . I think they actually knew some of these things were there and now they are just trying to get everything with one net. I think so. I first saw it and i saw ignition starters, i thought, oh, my gosh, is this another supplier that has made the same mistakes . I think what they are doing is drawing a big loop around them. You will see all automakers doing as many recalls as possible right away. By the way, people always think about recalls as a bad thing. They are not always. Not any product is going to be perfect. When there is an issue, you want the automaker to fess up and fix it. And not just fess up. My car is already in there. If it is in there and this is a problem we know about, lets take care of it now. You get them all at one time. It doesnt hold down the cost. It is billions of dollars, but the fact that they are saying it will cost 600 million is not that much for this many cars. Recently, comcast and time warner to cable are facing skepticism from members of the jet the Senate Judiciary committee, among them, senator al franken. , i am against this deal because i believe it does not meet either test. Will resultis deal in fewer choices, higher prices, and even worse service for my constituents. But comcast executive Vice President says franken is wrong. Thisere is nothing in transaction that will cause anyones cable bills to go up. He did go on to say that this transaction will make us bigger and that is a good thing, not a problem. Of course he said that. Im not sure that is what you want to say before the congressional committee. Look at the man behind the curtain. I dont think it is about the cost of things going up. Im worried about what will go in in terms of content. You own the base of subscribers and all that broadband, then you can control what is going to go into that pipeline and which ones you make more money on, and skew it one way or another. Theres only so much on 10th i can go in those pipelines. Much content that can go into those pipelines. There was a start golf network, for example, that was saying they would have a tougher time getting on compared to the golf network. You owned 40 of the Broadband Access in this country, i dont care about cable. You can live without cable. Au cannot live without Broadband Internet connection. Did anyone else find it funny that al franken was the one . I mean, because he used to be on nbc and saturday night live, and the family pedigree. I thought that was an interesting family twist. I was waiting for smiley. Ofthere is a future for all us, from cable to politics. Google is getting into the Hotel Business. To website is adding more its Hotel Business listings as it tries to deal with Hotel BookingStartup Software room 77. The plan is to get people to go through google directly and to encourage more Hotel Operators to place ads on the site, bypassing advertising. It is kind of risky. The clients of google, those that advertise, are a lot of these travel companies. What is the expression dont bite the hand that feeds you . It is five percent of their total business, and we are talking about a market that is 50 billion. It is a big, big market. This is not new for google. I have spoken at a couple of google conferences for travel. Theyve been in this travel business for a while and you think it goes with the maps and a lot of Different Things they are having. What they are trying to do is capture more and more of his personal space. We see all of these things that googleing on board glass has captured all of that content. Taking over the world. And they have done in error other areas, too. Think about shopping, for example. To be is trying everything to everyone. It is in keeping with their strategy. And think about priceline. Can you afford to say, ok, google, you are continuing with us competing with us and we are not going to advertise with you . Take pay comcast whatever they want. And by the way, the service that is already horrible can get worse. It doesnt matter. How do you feel about this . Im just waiting for google fiber. Speaking of another service from google, when we all get google fiber, then there will be competition. I have fiber every single day. I dont know what you are talking about. This is basically a monopoly. And it is not an antitrust issue . Dont worry. Says, dont worry. Its all good. He promises good. Lets get to china for a second. The economy there may be flowing, but its effort its appetite for peta apparently is not. Chinese customers want american food, and because of that, the biggest cheese supplier is australian company. Cheese demand will surge 20 in the next two years. Investing ins also output to cut down the length of time it takes to make cheese. Chain was inza 1990. They will increase the number of pizza huts this year. My favorite part, they have mozzarella pulling contests in pizza hut. And it is not the pizza you think it is. When you eat pizza in china, its a whole different kind of pizza. It has pork, sushi come on different types of fish. Last time, it had lots of corn. Can you get it just plain get up just plain . I do like the margarita. Can you get one of those . Rex yes. Yes. But pizza in italy and france is different than what you get here. What you are seeing is a real trend. It is not so much about market share. Companies in north america or south america are going for market share. In this case, they just want to sell one pizza to every person in china and they have trouble than doubled. I want to set the record straight. We are saying that china is interested in american food, therefore pizza. Lets not forget. Where was pizza invented . In italy. There was a legend that the pizza was actually invented by the chinese. That it was what i was going to say. Well, posta is from china. Hut is fullythe americanized. Pizza the hut . You just wrapped up fast food in one sentence. Pizza the hut. Matt and i were looking at new jersey and it had its rating lowered just not. The outlook is still stable. And it is still investment grade. Hillary clinton says she is considering a run and political donors want her to make a decision. We will explain next. Will she, or wont she . Former secretary of state clinton spoke about the potential of a 2016 run. I will continue to think about it for a while. [applause] because theis hard questions are not, do you want to be president . Can you win . Why woulduestions are you want to do this, and what can you offer that could make a difference . Ok, big news. She said she is thinking about it. She still hasnt announced it, but at least she is thinking about it. What does this mean in terms of bigtime political donors . It is leaving them in a holding pattern. And Jonathan Julie allen. Jonathan is the author of state secrets. Donors appear to be waiting on the sidelines saying, who should i give my money to, and this is having an effect on who might potentially run. Is it not . Thats right, and it is not just hillary keeping democrats waiting. We found out that on the republican side, there is a lot of donor anticipation as to who their main businessfriendly candidate will be. Right now, many are waiting to see what jeb bush, the former florida governor, will do. Because, why not have a race with Hillary Clinton versus jeb bush . Clinton versus bush all over again. Save money on your bumper stickers. Ring out the old one. [laughter] all the same cast of characters. What does it mean for those candidates, jonathan, that are thinking about running and need to wait to see what the landscape looks like . What does it mean for their ability to raise funds . It is extreme and difficult not only to raise money at this point, but also to create campaign organizations. The shadow operative primary is a factor. People are waiting to see if jeb bush on the republican side or Hillary Clinton on the democrat side are going to get in. They will not sign up with a candidate. Agar rubio in florida has a particularly big problem with this because most of his big bushs are former jeb people. And they are more loyal to jeb bush and the bush family than they are to marco rubio. He in particular has an issue. If jeb bush doesnt run or Hillary Clinton doesnt run, will we be in a situation, jonathan, where the candidates dont have enough money raised . Or will the floodgates open and it all comes in at the last minute . Start, anly, at the lot of candidates are getting a slower beginning than Hillary Clinton is, certainly on the democrat side. Right now, she has three super packs actively raising money and donor lists, contact list. Even as she is saying she is considering a campaign, an active campaign is going on, on her behalf. Dont believe what you hear all the time. This is going to be something that will be difficult, certainly for democrats come up to contend with in the shortterm. We talked to a former bush strategist and george w. Bush strategist, i should say, and he said that republicans will have enough money to compete the general election, regardless of who gets out of the gate. It sounds like the money will be there regardless. The money will be there, but there is no doubt that hillary has a huge head start if she does get into the race. As jonathan said, there are three super packs working on her behalf. And there is really nothing with theoing on republican side because everyone is waiting to see what happens with jeb bush, and waiting to see what happens with Chris Christie and the bridge scandal in new jersey and sought meanwhile, there are all these other potential publican candidates that are having a tough time with fundraisers. When will we know . I will ask this question to both of you guys. When army actually going to know . It sounds to me when will we actually know . It sounds to me like hillary is going to go for it. Jonathan, what do you think . There is in a nine percent chance 99 chance she will run. It, she saysut shes considering it i mean, you thought brock obama took a long time to make a decision. Is this the decision now . Why not get out in front of all of this . Is there a danger to that . Absolutely. The minute she becomes explicitly an overtly political, her Approval Ratings will go down. People like her much better when she is seen as the former secretary of state were going speakinge country on these issues that are not particularly partisan or controversial. The moment she becomes brand a candidate, she will be less popular. Thank you so much. With investors turning away from go daddy is one you should be aware of as it preps for an ipo. We will have more after the break. Im julie hyman. We have breaking news on jpmorgan and jamie dimon, who was commenting in the banks annual letter to shareholders, saying that the legal issues in 2013 were the most nerveracking experience. Not surprisingly, there were large awards and settlements with the u. S. Government on a number of different issues. Also, jpmorgan is citing jamie dimons key achievements in the decision to raise his pay for last year. He sees banks charging more for revolvers, and he also said uncommitted lines of credit may make a comeback. He said there was a high price to be paid with legal issues and focus on the business. Separately, he says jpmorgan has hired more than 6300 veterans since 2011. Obviously, speaking on a number of different issues. Also saying that jpmorgan had a tin ear listening to regulators and needs to do a better job listening to what they want, and presumably to the public as well. Those are some of the highlights from the jpmorgan annual letter to shareholders, and some of the highlights of jamie dimons comments in particular. Thanks for that, julie hyman. You are talking about go daddy. This is a website hosting company that is set to have its own ipo later this year. These companies have taken a real beating in the stock market, all those momentum names we have been talking about. Cristina alesci helped to break the news on go daddy. She joins us with more. We arerrent environment in where we are seeing a selloff in these big tech names, is that something that go daddy should be worried about . Is that, perhaps why they have announced this ipo now rather than later . Going public now is definitely more challenging that it was about six months ago, definitely more challenging than a year ago. Granted, these guys have a little bit of time because they have just ordered the process and they will probably go public sometime in september. But in just the last month alone and the disparity we have seen with some of these ipos and how they have performed, its quite stark. Grubhub at about 30 more than the range. And then you have a software thatny called 59 five9 is three percent below the proposed range. There is a real disparity in these names, and part of that is because not all growth is created equally. The disparity in investors, what is it that they like right now and what is it they are shying away from . Really interesting. They are looking at more than just topline growth. They are looking at margins. For example, grubhub reported margins at about 23 . It is a business that is very easy to understand. When you look at five9 and the software and Service Space in particular, a little more difficult to understand and the margins in that business were not as good. In fact, their biggest business, their enterprise business, they reported in some cases gross negative margins. That worries investors. Did the bankers just price it too high . Risk of always a of course, theres execution risk here. But the thing is that this is the First Time Since 2011 that a Software Company priced below the range. That is a pretty powerful statistic. Go down even and get out while you can. It better go. Thank you very much. Remember the duke lacrosse scandal that cost the university n joinslion . Bill cohe us. He got a book coming up. In the spring of 2006, there is a story that gripped the nation. You probably recall three duke lacrosse players all accused of rape by a local exotic dancer who had been hired by the players to entertain them at an offcampus party. In the end, it turned out she had made out the entire story. Why did the District Attorney ignore evidence and the students favor . Did he . What does this tell us about the inequities of the system . Bill examine these issues in his new book, the price of silence, the power of the elite and the power of the great universities. This is a story that you and i both have a lot of interest in. I know you went to duke. You are an alum. Interest to you as well. Lets back up. Why isnt everyone including the so quickd the da was ofbelieve the dancers side the story as opposed to the students . , story a very complex and reason. The fact that the media picked up on it and ran with it. It just seemed like a perfect white athletesy, at a Prestigious University having a party where they were drinking all day, a lot of underage drinker. Drinking. Dancersd the exotic 400 each and then the claim of rape occurs. It flipped the usual scenario on its head and that got the attention of the media and they ran with it. Much more complicated than that. We both know that. One of the nuances to this was the District Attorney up for reelection at the time. He had never run previously. He had been appointed. Hes up for election and hes in the community that historically has had some division, both racially and in terms of the school being 43,000 dollars a year, more money at that time than most households in North Carolina made. What was at stake for him here and how did that play out . Its very complex. Look. I could have done the easy thing to write another book about wall street. Thats what everyone wanted me to do but i was so interested in trying to find out exactly what happened here and why. There was never a trial in this case. The attorney general for the state of North Carolina declared these boys innocent after a three or four month investigation. I thought what i would do with this book is compile all the information that i could, talk to everybody i could and have the trial in this book that never took lace. That hense argument was was using this case for political means that i dont believe that. He had been in the das office for 28 years. He had been a loyal, hardworking, highly regarded prosecutor in that department. He was appointed to the position. Guess what . In december 2005, he decides hes going to run for the position. Hes campaigning. And then in march, this happens. But is he supposed to do . Just ignore it . He senses it was going to be a big case in the community and he felt it was important to take it on. There was no real dna evidence and there was frustration on the part of the family. Look, there is no dna evidence. Why does he continue to press forward . , he wantedfirst time to talk to them for years and years. He talked me about this extensively. I happen to watch yesterday the new aero morris selma on donald film. Ld errol morris this line saying the absence of evidence is not the evidence of absence and its an interesting phrase and its the same thing he said to me. He had been prosecuting in his 28 years any number of rape cases that did not have dna evidence. Has a case at least victim willing to testify. This was a victim or a woman who said this happened. That, she was examined by an nurse of that night at duke hospital. Saw thatirst time, i reported and is the first time it had ever been made public. Everyone speculated what was in the report and i saw what was in it. Rightly, its very convincing that something happened and she stuck with this story throughout. She stuck with it when i saw her in prison when she was awaiting trial for murder, a separate matter. For murderingjail her boyfriend and its a complicated story. Her. Lieved he believed the nurse and he believed the police. Like she is now in jail. His life has pretty much my room and been ruined by this. He has been disbarred. He lost his law license. What about the kids . Iran were talking to the kids in dire member talking to the kids parents and how devastated they were because they really felt like it was ruining their lives. Did it . Certainly for a year plus it did. They each got 20 million from the school. School 100 Million Dollars and counting approximately. One of the kids is in private equity now on wall street. Another is a breaker at broker at Deutsche Bank and a third went to law school and is now a clerk in camden, new jersey. The players not invited, ryan mcfadden, went to the same school and wrote the email that everybody remembers. Been highly impacted by this. There was an excerpt in vanity fair about him that i wrote that showed he had to change his name. He thought he could get a job on wall street and he has not been able to. Its a fascinating story and you take a fascinating look at this alive and encourage everyone to get your book and read it. Contributing editor and author of the price of silence, bill cohen. A guard at the university of massachusetts has announced that hes gay. They preferred that you did not drive. A look at the most expensive cars to insure after this break. I will see you right back here. It is looking like the year at the out athlete. A guard at the university of massachusetts is the latest to join the list of professionally player in aens division i College Basketball team. This comes one year after Jason Collins became the first nba player to announce he was gay. Gordon said it was a huge influence on why he was willing to come out. We are joined by the founder and principal of our leadership and out on the street and also the founder and editor of out sports. Com who broke the story. How did you wind up raking the story . Breaking the story . The lgbt Sports Coalition is sports bias and im one of those people. About a year ago he reached out to wade davis, a former nfl player in the executive director of the nfl play project. He spoke for the last year about potentially coming onto the team. Im good friends with wade and i wrote his comingout story. He connected with a high school i wrote hisoach and comingout story. The two of them with patrick kind of suggested that he might want to talk to cyd. What do you think this means for the Gay Community knowing there are athletes out there whether it is nba or division i basketball, what does it say to people thinking about coming out . There are still stigmas about being gay. People believe gay people do not belong in sports. They are not tough enough to late elite level sport so every time a michael sam, Jason Collins, or derrick fordon comes betterd makes them feel about themselves. We will see more athletes coming out . First of all, congratulate them on a fantastic job on working with him on this. See is parallel to what we in the corporate space the moment it speaks to the power of not just allies but senior role models. What do you mean what we are seeing in the corporate space . Streetave 20 major wall firms member of out on the street. We have had 42 ceos speak at our summit around the world in london and asia, the first gay summit ever in asia. Its ok to be gay. It impacts the bottom line. Are more people saying they are ok with it . Now what were seeing in the business and sports community, is it more accessible . Flex its encouraged. This pastut a picture week, five guys and the caption said two are gay and three dont care. Were seeing more and more about not caring and it being ok. If you are out, you are more likely to be promoted, you are more productive. I go sam came out one year michael sam came out one year before. Like he has been amazing coming out with a line calling be true. Today. Hy derrick wore it when you are true to yourself, its the most powerful thing when you can do. It inspires others to do the same. I totally agree. Of thetreat yourself best way possible and your team, your place of employment, you will be more productive. Will we see more athletes comingout . I sure hope so and i think cyd does as well. It has been the busiest year of my life already. That the good thing. Its nice to see people feel empowered. Yd, thanks for joining us today. Another person who feels empowered because hes got a ferrari shop, pimm fox. This is a special edition of taking stock. Triggering to blend Sophisticated Software and hardware excellence. I will introduce you to a new ferrari and speak to the chief executive of for re north america. We will tell you why a for our reach is so special coming up on taking stock we will tell you why a foerrari is so special coming up on taking stock. Progressive delivered firstquarter earnings beating estimates. It may suggest a industry results after Severe Weather in january and february. Glad those days are behind us but is not just snowstorms keeping insurers on their toes right now. Expensivee five most cars to insure. Take a look at this. Think about those insurance bills before you buy that car. If you want more rankings, go to bloomberg. Com ranx. Thats it for todays street smart. Picking up theis pieces and the head of pimco has forced himself into an uncomfortable path of self analysis. The bill gross story, very interesting. I will see you right back here tomorrow at 3 00 p. M. Eastern only on street smart. Coming up on 56 past may hour. That means Bloomberg Television is on the markets. Go lets look at where stocks closed out the session. A rally after the release of said minutes after its last meeting that indicated we are not necessarily going to see an six months rates from whatever which is what we heard from janet yellen. You saw this evidenced in the bond market as well, this perception that rates would not rise as soon as had been anticipated where we actually saw yields fall on the shorter end of the curve but they came up. For more on that fed meeting and the minutes, were ringing and Adrienne Miller from gnp see securities. Adriana, it is so interesting, this whole situation because these minute meetings are from the for the press conference when janet yellen made the sixmonth conference and yet they give no glimmer of timing. Like theit seems Interest Rate increase would be more weighted towards 2015, later in the year. What do you make of that . It recommends reading too much into the change in the dots comment. Xmonth you could almost read from her body language that she was uncomfortable and we always said that was a flood for the most part and we pretty much heard confirmation from the minutes today that there was no mention of any time six or 12 months and it is still about data dependency and hitting this marriott of jobs and inflation data that will get them to move one way or the other on the rate schedule. That is why we still think it is a secondhalf event. What do you make is the treasury reaction today . The longer you go out on the curve, the more its about policy. That played to the minutes that on the short end, we reverse course. Everywhere on the short end of the curve and we saw a little bit of that reversal in the beginning of february april, rather. The bond market was like, whats. Lets start backing out of that trade. Then the bond markets deepened as it should have been. Collect someone who is treating the fixed income market in trying to strategize, if it is data dependent, what do you do . Do you just try to be a better predictor of macroeconomic data . I would not want to be a rates trader. Its trying to read what they are thinking in the Forward Guidance language a laid out on the 19th of march does not help but all. They mention in the minutes that everyone wanted to change it and they want to move to the quantitative aspect but the execution was poor. I do not want to be. I dont know how you would trade this market. What do you make of where we will see rates go over the next year . Im still playing a global recovery. You can debate that the emerging markets, chinas mama but it is still about growth Going Forward but i think the yield curve will continue to steep in. We have a three point five percent yearend target thus far and that might be a little aggressive. In it is still a steepening the curve nonetheless. As we get to a three percent growth rate for the economy. Some optimism from Adrienne Miller of gmc. For on the markets comecon julie hyman. Markets, im julie hyman. Forhis is taking stock wednesday, april 9, 2014. Todays theme is engineering excellence. We are marking the 60th anniversary of ferrari in the United States and will be introducing you to a special for ari ferrari. Ill be introducing you to the chief executive of ferrari north america, marco mattiacci. When it comes to engineering, how about excellence when it comes to food and sandwiches . The chief executive