His new various well on the ferris wheel on the vegas strip. All that and more on coming up on this edition of street smart. The dow 1 down47. Lets head out to julie hyman. The nasdaq is the steepest decline of the big three today. That is due in large part to amazon coming out and really plunging here after its earnings report. The ceo has always been a big spend her. That continues to take its toll. Expenses rose 23 . Is posting an operating loss for the current. Also paying shares is a visa. Thiss revenues that ms. Because a currency fluctuations and a stronger dollar taking it toll. Those shares are also down on earnings all stop to round out our trio earnings, we had ford. It is not just gm contending it saidall cost will this was to wayne for some numbers that missed rejections in addition to a loss in south america. Senators import cut russia to its lowest Investment Grade today, saying further downgrades are possible if Economic Growth declines and if the conflict in ukraine sparks wider sanctions. Look at the ruble but has lost more than 8 this year. It was the second most performing. Bank is central unexpectedly raising borrowing bring hoping to relief to the ruble. President obama is urging european majors to support new sanctions but would it change who in two change course or will he continue to lead his country and a dangerous economic political path . Join me as the president and founder of russian studies at the kennedy institute. Got here . Ur what do you think is actually going to happen . Will we see a russian president that continues this territorial grab . I think it is much more likely that bruton will not be done with the economic problems that will inc. Of russias strategic concerns, particularly in ukraine. In the short time he win shortterm he would not be persuaded to retreat from a crane because of economic problems. I do not think there has been an economist in the room when he has discussed his political and military strategy. About the not care economic consequences. This is a political play. This is a political play. She realizes there will be some economic consequences. He has been confident he can get away with this. Although he seems to the understanding there will be a shortterm hit, it i think he believes he can survive it. The economic train would continue during any sort of local crisis. Were seeing that people are rallying around him. He has been able to gain some political race support of all of this. That is the nexus between these two things. His popularity within russia is higher than it was before. The reason why i believe this unfolded was because the economy in russia was doing so poorly. Growth is virtually zero. 77 inflation stopped in order to maintain his personal popularity have to go out. That is what is the rallying cry. Then he got the base but he lost all the russian voters. I think were in the sweet spot. Ukraine has an election. Lets talk about this debt downgrade. Investors have made the point that they do not actually think russia would default on its debt because that would put Vladimir Putin in the position of not being a the great world leader he aspires us to the. What kind of reputational hit with it actually take to Vladimir Putin himself if in fact they were to default . It would be a huge hit. Is betting this on military strength economic default would be disastrous. Russia is proposing that it is a major role player but it does not have an economy that asked this internationally. Theyre still making money because they have a lot of energy resources. You can still pay his hills. Do we have to worry he might actually default . There are some worries. Credit default swaps have gone up 75 . This is one of the five most expensive countries to secure against the debt default. It is important to note that money is coming in because of oil but it is coming right back out has of outflow. This is 200 billion a year if it continues. With you somee sounds from the president and south korea. A reporter asked him an unusual question about his relationship with Vladimir Putin. Absolutely would say to mr. Putin if you were drowning. I like to think that if anybody is out there drumming am going to save them. Pretty good a swimmer. I grew up in hawaii. A little out of practice. He will save him if he is drowning. ,s we watch this all unfold there has been a lack of angst and worry about Vladimir Putin for years it has now bubbled up. Point. At a new tipping where do you see this going . I do think it will be increasingly hostile. I do not see him throwing president putin a political or economic lifeline. I do not think you will try to. Ave the russian economy i think there will be increased tension. There will be difficult dialogue. Putin is not interested in having a constructive dialogue with the United States at this point. The fact that we keep talking about economic sanctions is actually very worrisome. China is watching carefully. I just came back from a week of thre. All st itt we are doing to isolate just reinforces the chinese feeling they do not want to open them. Clearin has made it very that he sees this eurasia area where he would dominate from russia to china. If we are not careful, you are we run the risk that the balance of power sets . China is not as much of a friend to us as we will like to there is a danger that it becomes powerful together. Russia and china historically have very difficult relations. Some sort ofe increased cooperation. There has been between russia and china will st. Ifre is less of a political they want to swallow russia and have or should be its main supplier of gas and raw materials. Russia is anxious to go into the hands of china because chinas economy is more precious. Russias trying to play with oh china and the United States. It is a difficult game. It is antagonizing as we proceed. You are sticking with me. We have a lot more to talk about. I appreciate it. Coming up next, elon musk at making a big announcement today that could have historic implications. Find out why spacex is making headlines today. Later on we are going to talk china. Putting youroid money to work in the worlds secondlargest economy . We will answer that and more when street smart continues. We will be right back. Welcome back. Earlier, elon musk held a special conference where he rocket. It reusable. Retty significant it is overused. Every reporter in america that covers this kind of thing right ow is using the word stage without knowing what it means. It is part of a rocket. He has launched a rocket which typically a crash down to earth or disintegrate in the atmosphere. They have claimed to have done this although it died after at theeconds will stop same time they released this video. This is about a sales job trying to convince certain people in the government that his company is ready for prime time. Stunt all stop it is pr. When you send out an email to scores of journalists at 11 00 p. M. Saint tomorrow there will be a huge announcement somewhere in washington, that is so germanic that is so dramatic. Why not just say we achieved a small piece of a soft landing . Because youre trying to drum up coverage. Cool. Is i wanted to work out for them but it has not yet will stop you have a lot of private companies now. You have you on must hear it you have richard branson. You have all thesebillionaires putting money of their own into the space exploration. He still wants government money. He wants government work. As a filedig news suit against the u. S. Army. A contract. It is supposed to be as much is 70 billion. He also filed a complaint with the regulatory body that will not allow the civilian companies to get these military contracts. He is not really american. Have not doney the things to get the company certified. They have to have technical reviews of all the components of their process. They are not there yet. He points out that we are currently using for military purposes equipment that is built by the russians. Pay money to Russian Companies to build the stuff and we will not pay money to a guy who lives in college or near in california. You want the business to go whoever is doing the best job acted will stop best job. There have been a lotlunches that have happened in russia. They have a program up and running and nasa does not. Fear. T is the as we talk about russia, there is this concern we are going to the cold war mentality. Not we also whether or are vulnerable to russia if they are going to be pruned to some of our military satellites. You got to be careful of the french. Wine. We the know the u. S. Government has been spying on our partners in europe. We spy on her cells. This is the kind of stuff they will be using. He also said that he will sell more here. Not huge news. Thank you for breaking down the spacex stuff. Coming up, well china continue to be a Global Growth locomotive or is it on pay for a serious slowdown . We will discuss in todays mobile outlook. Ever thought youd see the day when you could bring a gun to church . Can. Ently now you in georgia, anyway. It is time for todays global outlook. This appears to be slowing. China stock fell to their lowest loss in two months is a after the nations weakest liquor maker reported slowing profit growth. Sign thatst another the country which was supposed as theass the u. S. Ha largest economy, is it a sign that may not make it . I know you just got back to a. Rip to china i know you are concerned about pete people putting money to work. When you were there, what were the things that some rice or concerns you most . We had over 25 meetings in three cities. That009 stimulus package china put in place to stabilize its economy after the great anancial crisis has now seen massive policy mistake. There are several reasons for that. 2009 would have been the opportune time for the leadership to do the hard read warms and blame the west for the need to do it. Secondly, this was made even worse i the fact that demand is walling and china will sto. This on theeen cities that are ghost cities that built and they built. For what . High speed train. It is also filled with pollution. Solutions. China has run up against the laws of nature. Theyre going to have to change that. Huge cost to fix their polluting industries. Then you have massive corruption. Much of that came back from 2009 onward. That will really limit the pace of reform. Some people worry that we had 2008 here in the u. S. We have the european debt crisis that followed. It is unlikely. We spent a lot of time looking for the catalyst for that and it is hard to find it. China has many problems. The analogy that came to mind repeatedly was of a juggler trying to judge too many balls. It is fair to say the problems in china are known. Their are Many Solutions the government can use to try to offset the risk. Most of us in the west are worried about robert t in the Financial Sector or as a cause of the crisis. Applying that to china is a mistake. Where the risks are in china are in pollution and corruption. The risk of an environmental. Isaster that casts concerns it is threatening people all the way over to the top of the communist party. Policies solutions may not happen at the time they need to. Point when we. Tell me then about alibaba. They are expected to file for the ipo here in the u. S. Very soon. It will be treated here on u. S. Exchanges. Would you not advised the all too by alibaba given what you just saw in china . He just had a very big ipo of a port company. The ipo had to be cut in half in hong kong. Pricing was very weak. I am not sure itll necessarily transferred to alibaba. Is very wise to pay close attention to a valuation what you are actually paying or. Alibaba has a good reputation in china. It is very interesting. On the whole, my feeling is that stocks and china are probably something to avoid. Thank you for being here. You ever think you would see the day that you could bring a gun to school . Now you can. In georgia. We are to talk about that, the gun debate on street smart next. It was a tough quarter for foreign shares. Here and blame warranty expenses and of course a bad winter. Matt miller is here to break it down. I scoffed at first. Ien all blame bad winters always think it is supposed to snow in december and february. Costsd what the actual were. I thought they meant people were not going into dealerships because of the snow. It fouled up their transportation system. The truck i bought was three weeks late because of the bad weather. It did have a financial effect to the tune of about 200 million. A bigger problem was the warranty and recall charges. 400 million. They said these are all publicly announced recalls. No secret that have been lingering since 2004. Asideof the money was set in case they have issues going forward. Maybe this is a kitchen sink quarter were they are taking all sothe losses and writedowns that a new ceo, should they appoint one have a clear path going forward. For one thing, bob shanks said it is not a agency quarter. That is not what we are doing. That would imply they were massaging the numbers. I asked him, you are set up well for when mark field take over as ceo. Said we are set up really well. Kind of a trick question. We are not announcing anything today. Know what is taking so long. They know that mark fields is going to take over as ceo. They have been talking about it for a while now. This is the last google as he goes up to the podium. I think Everybody Knows it. They should come out with this sooner than later. Theyre probably trying to tie up some loose ends. The most interesting piece of news will what he does after. Every Company Wants them. Itll be interesting to see what position he actually takes. He mentioned theyre setting aside some money to deal with some of these more key issues. They are going to improve . For sure. They say theyre going to have lower earnings this year than they did last year. Theyre going to have tighter margins of this year than last year. Introducinghey are 23 models. They are introducing a new ford f1 50. Had to close down their factories for 13 weeks in order to retool them for this new truck. That hurts them financially. In 2015 everybody is going to want this truck. Newre going to see the models. It costs money. You are investing in your future. You need the new products to start driving demand otherwise people, it is likely talking about with apple. You need the products. Ford has some brandnew products. \ there are still motor vehicles. Ofd is expecting growth 2. 53 here in the u. S. Gdp era to be arerope gangbusters in china. They expect to grow in every one of those markets. Most of them faster than the gdp. It looks like mark field is coming into something good. Phones in. P, tech for Major Companies all making mobile moves. I will explain when street smart continues. Georgia is Guns Everywhere bill. Should you be able to carry firearms to a bar . We will discuss that when next. It is called the safe carry protection act. Critics are calling it the Guns Everywhere bill. We are licensed gun owners can take their firearms. Under one of the most permissive gun laws in the country, you can soon bring guns into bars, churches, schools, and even government buildings. I am joined right now by jerry henry, executive director of who is one ofrg the big supporters of these bill. Robin thomas is an executive director for the loss center to prevent gun violence welcome to both. I will begin with you. You lobbied very heavily to get this through. You pleased with the outcome of this . What do you say to critics who say it is really not a good idea to mix liquor and guns. Off, i appreciate you having me here. Thank you. That is something that is always already allowed in the state of georgia. You can go into a bar if you have permission from the owner. The only thing it changes as you dont have to have permission to go in there anymore. It has been the law for the last four years. We have not had massive shootouts that everybody claims we are going to have. That is a minor change in the law. Owner stillproperty has a right to deny you access to his property. If youre carrying a gun. For any reason. Yes, if you are carrying a gun. They can deny you Access Property regardless. You have been pretty proactive in terms of trying to prevent more whites read the ability for people to widespread ability for people to carry guns. What concerns you most about this new law . Thank you for having me on. When you look at this bill, what is important is to take a step back and look at it in context. You have all of these permit holders. Georgia does not require any firearms safety training. You have thousands of permit owners who can take guns and all kinds of places. It creates a risk of having so many guns in so many places. On top of that, the bill disempowers lawenforcement from checking to make sure people do have permits unless they have other reasons to check that person. Your groundhe stand balls. Now somebody he even has a gun without a permit who uses it in selfdefense and claims stand your ground will be able to use that defense. You take this expansion of places you can have guns like bars and churches and you include the expansion up stand your ground protection. Now you restrict lawenforcement and are creating a situation where there is more risk and danger. Be more people that carry guns, the more chance you have of being in a pretty unpleasant situation or one of the guns goes off. That is fundamentally what people are worried about. Wewe hear that every time obtained more of our freedoms back. The thing is that never happens. There ares it happens no accidents for those that do not require training. Seems to me that logically the more guns you have in a society, the more risk you are putting into society. Absolutely. When you look at the numbers in states that have very weak gun regulations versus the states that have very strong gun regulations, you can see very clearly that states like georgia that have weak gun regulations have much higher rates of gun violence and gun deaths in states with a stronger regulations. If you want to look purely at the numbers, the numbers show that weakening gun regulations does not actually make you safer. Youmight feel safer because think you have a gun on you and that makes you safer. In truth, and does not make our communities safer. Let me ask you. We have seen examples of how the Business Community has come to be able to basically billsagainst particular it would have allow people not to serve days in arizona. When you look at atlanta, you are looking at the Big Companies that are there. Dont you think that they companies in some way might be you are allowed to now bring guns onto the premises . I would hope so. Rational, reasonable owner of a business will understand the risk presented by having more guns in the place of business. This will at least allow churches to have to opt in to have guns in bars to be able to in some circumstances opt out. There are some limited ways in which you can prevent guns from being on your premises. You would have at best this places where you can go and you know you are safe run guns. It is a sad situation we are in. Have you seen much pushback from the Business Community . Restaurant association did not like the idea people being able to bring guns into bars. It places a lot more risk to the actual bar owner. As far as they companies go, it is still private property. They can deny you the right to go onto company property. Anybodys private property. As far as a number of guns making it more dangerous, robin has not read about what happened in chicago last year. Last weekend. If you looked at chicago and washington, d. C. Who have some of the strongest gun laws, they have the highest murder rates of anybody in the country. I do not understand. Thank you so much. I love to briefly respond to that. It is unfortunate that cities Like Washington and chicago cannot force gun regulation because we have supporters in this country in states that have such weak gun laws but even with the best efforts of city Like Washington, d. C. And chicago, you have guns flowing in from states like georgia that have weak gun laws. Of thosetraffic out states into safer, stronger laws. It is such a misdirection to point to that as a reason why. It is the amazing that since newtown, 21 states have actually strengthened their firearm laws. Major Companies Making tech. A preview and review when street smart continues. It has been a huge week for tech. One underlying theme has been the impact of phones here at 60 of apples revenue came from iphone. Facebooks revenue came from mobile. Amazon is said to be releasing a phone. Microsoft completed the takeover of nokias mobile phone units. Why are these Tech Companies turning into phone companies . Is all about mobile. It is all about the phone. They want to have the hardware. Computing is going away from here. That massive shift in computing will create some opportunities not for just different sellers but to providers of the uses of it whether it is shop inc. Or content or you have Companies Like they spent making enormous shifts. What do you think is the reason behind this . We know it is obvious. If you look within the internet space, it will mean the mobile internet. There are basically three business models. Ecommerce is doing fantastic on mobile devices. Advertisers are doing really well. Why does amazon need to create its own phone . It is basically them not wanting to be held hostage by other companies that will say we are not going to have your stuff on our interface . Sure. Amazon launched a little piece of hardware you could take throughout your house. The phone is the same thing for amazon. You go to a different store any user amazon phone. They have the leg up. Amazon is a great experimenter. They like to try something. Ais is really a mass methodology that is greatly encouraging there. They have so much experience making Consumer Electronics with their console devices for five too fare phone is not away from them. That is where the computing is happening. Biggestr business businesses was selling dvds. People were consuming things and places like that. Their prime business is increasingly being focused on mobile as they are staying relevant. What who else do you see . It is interesting to see googles decision to discuss motorola to lenovo. The stock you look at time they have done well. They signed a way to leverage every device in the emergency room is very. Business youto a do not know a ton about you and just average everyone else . Lacks this is not so far off till from what they have done. They are not worried about a phone that will make virtually no money. Had a certain level of phone it a down here at apple takes very high margin approach. We are going to leave it there. Winky very much. Were going to be back at the close of trading. The top 10 stocks you need to know, neck. This is street smart. We are heading into the close. We have your top 10. Microsoft down 0. 5 . They completed the takeover of the nokia phone business in a 7. 5 billion deal. Number nine, pandora down 16 . They fell the most today in more than one year after telling investors they will aggressively spend on marketing. A aggressive. Collect the dont like it when they use the word aggressive. When youre going to spend money, you should not say aggressive. Im not sure they said it or if that was their interpretation. Up three percent with First Quarter profits that exceeded estimates. They announced they will boost Quarterly Dividend and operating. Fell the most since july today after saying that economic sanctions against russia could hurt profits. Also reporting secondquarter revenue missing estimates. 6 is plug power, the biggest gainer in the nasdaq over the past year. They expect to raise 124 million and a followup Share Offering that may help to fund acquisitions. Not aggressive acquisitions but just regular ones. The Company Price 22. 6 million in shares. Netflix is down about 6 announcing the deal for operators through the tivo settop boxes. A big step for Ceo Reed Hastings in simplifying access to netflix services. This has been a goal here, going through fewer steps to get netflix. Thats good. We like it as consumers. Pandora said they were going to be aggressive. Chief Financial Officer said, we said we invest aggressively in the front half. Not hedging. I dont want to correct you on live tv but i want to serve viewers as best i can. They are being aggressive. Musk received less than 70,000 in the last year down from the 78 million he received in 2012. He said that china will be the bigger market for tesla in the longterm. Its the hugest car market in the world. 3 is forward after posting firstquarter earnings that missed estimates blaming higher recall costs and bad weather for the miss. Underpromise, overdeliver. Tell them you will aggressively spend on marketing and then dont be aggressive. Im going to get aggressive on that. 8 siness code down nesco down. Down after weather affecting. Amazon falling nearly 10 . Ceo jeff baeza says that he will not slow down spending in the company. Moving the operating loss. Slightly off the lows here. Ending the day 0. 8 . Tack also getting hurt but off the lows we saw earlier in the session. Getting some additional context on the market and looking through all the sectors right now. Some of these disappointing tech earnings, some of the Consumer Discretionary down the most. They are not in the tech index. They are just a quirk of the s and p system here. Technology was the second worst reallying so those two dragging down overall. You have all these individual earnings reports particularly the highprofile ones and then situationyst with russia and ukraine heating up over the situation there. Once again renewing concerns if there is any fallout. Visa sang the russia issue will affect that in some way. Although the president would Vladimir Putin if he was drowning. Xp is not going to let him die right in front of the eyes. He says hes a little out of practice. Roundup,move onto the stories were talking ahead of mondays open. We have matt and julie and also eric is with us. Lets even if we had the selling stocks today, lets talk about the flipside having to do with treasuries. Where people think they see safety relative to what they saw in the stock market. The simmering conflict between russia and ukraine and that effect, treasuries up in the 30year bond yield reaching the lowest level in nine months. Obama discussing the possibility of wider sanctions. Secretary of state john kerry runningdimir putin is out of time to ease tensions and ukraine. This also speaks to the broader seeing broader theme where they think yields are going up and they are stubborn. What is your roundup on . Treasury. If you look at that chart, 3. 9 seven percent and straight downhill from there. Inflation, growth all pointing to lower yields. They say theres not as much inflation and they can start raising rates a little down the load and it will hold down the long end of the curve. This has been the biggest growth in 30year bond prices in the first five months of the year since 19 88. Its much more than ukraine. A lot of factors are pushing this down. Thats fascinating. Tmobile ceo has not only become a nuisance to his rivals but getting paid more as well. Million last year chopping the salaries of at t and verizon the ceos. Made only 16 million, poor by comparison. He has got rid of contract plans and cut prices forcing rivals to follow suit poking fun at them at t Ceo Randall Stephenson and he wears a ridiculous pink shirt and either an airing or a horn around a chain. I think his name is pronounced like ledger. Juliett i spend a lot of time lot julie and i spent a of time in gay paris. Tmobile stock price doubled in the time he got there in the first eight months. No otherto sprint, Telecom Company or other Wireless Company can say they doubled their stock price so if anybody deserves to get paid, this is the one guy. Hes doing the job of tito people. Hes the spokesperson. He does not need to pay Catherine Zeta jones anymore. Spokesperson and ceo. His first was year. Tmobile is setting pace for the other phone companies now. Both verizon and at t coming out with earnings the past few days. Even though the earnings were ok, people are looking ahead. They are saying because they are the to the prepaid game, one that tmobile owns at this point, it will be down for profit down the road but it is already what tmobile does. Them liken issue for it is for the more traditional Wireless Phone companies. Plus he got a 1 billion bonus for pretending to like mac kelmore. Sprint ceo got 15 million. Like i said, hes the spokesperson, two jobs and one. Indeed this says production has resumed at the chinese company. They did not disclose how many employees have returned. They have been on strike over a dispute regarding pay. The factory also make shoes for nike, coma, and reebok. Its a big deal in terms of its ability it also make shoes for nike, puma, reebok. It says something bigger and broader about china. As the economy evolves and improves, theyre going to have to start paying workers more and more and they will become more demanding. That was the thing. They apparently were falsifying their records in terms of Social Security benefits they were supposed to be paying out these workers according to chinese law. Then they have also changed the laws. 30,000 workers could go on strike. You are absolutely right. It would not have mattered they were supposed to pay these workers more. They just would not have. They are getting brazen, lets say, and china. At they were in america, they would be the fifth biggest between ibm and mcdonalds. They are gigantic. Its a tough day for passengers on a Virgin Australia flight. A drunk passenger on board a plane to indonesia caused a hijack scare after trying to enter the cockpit. En route from business in en the cockpitrisbane, was never breached. Thats a scary thing though. When alec baldwin is not on your flight, most people are well behaved. Were 6000 incidents of unruliness up from just 500 five years before that. This is a highgrowth industry. People are getting drunk. This industry is trying to figure out what to do about it and a lot of the problem is actually because the planes are mostly leased. 50 darlene stand where the jurisdiction is does not necessarily correlate to where they are flying or who owns it. Theres a big problem. At always thought it was odd that you essentially have a flying bar. Your only options are getting drunk and watching movies. Thats the only thing you can do. And eat. We should do a story about you in the same situation. Terrified of air marshals. I cannot believe more people are not scared of getting in trouble. You can get in trouble for that kind of stuff. To a moreurn potentially heartwarming story now. Her father a did big favor. Charlotte walked toward the first lady and said, my dad has been out of a job for three years and i wanted to give you his resume. Michelle obama seemed taken aback. The two briefly spoke and obama held up the resin they resume. It is unclear what will be the outcome but one would assume obamative work for the 2012 campaign. His wife works in the executive office and they spoke to the daughter this past weekend joking maybe you should pitch Michelle Obama on getting your dad a job. Trying to get a job in the obama administration. This is not just a random guy. I thought it was just some poor, out of work guy. That makes it less touching. When you get the details. Hes been out of work three years. Hes using his daughter in a pr stunt to get a job from the first lady. I dont know. I hope the guy gets a job. We hope. Anyway, great to have you here. A tour of the new secret weapon to lure gamblers. 550 feet in the air, next. Caesars is the largest casino across with 40s casinos 14 states and today they will bid for the first casino in new york. Act on the vegas strip, caesars is fighting the hardest to attract gamblers. Ceo gary loveman gave me a tour of the 550foot ferris wheel appropriately named the high roller. Take a look. How many people can use it in one of these . Hour people, about 2200 an. How much does it cost to ride in one of these . 32 during peak, but other times it can be discounted. You will be able to see all of vegas . Minute for everyone to give off and everyone to get on. Less than one minute. It moves at one foot per second. There is a net. If you fall off, we can retrieve you. You could have your bachelorette party. Weve had weddings here already. Corporate event, bloomberg event. You can have mr. Bloomberg here telling you things. You can program your own party music, videos, training event, family reunion. You could have bloomberg on the screen. [laughter] how did you come up with the idea of a ferris wheel . We try to solve a specific problem. We are asking our guests to come 1200 feet off the beat. Attraction have an than hits several different dimensions. It has to move a lot of people. It has to be open every day. It has to be attracting all hours. It cannot just be a nightclub or a shopping destination. That has to be something to get a lot of people interested and can generate 2200 passengers per hour so we started looking around. We looked at the london eye, the roller coaster at the stratosphere. The view that if we could do this properly, we could have a modern version of that experience and generate the visitation we want for this area. Why do you need people to get back in the middle . Thes we are leaving station, everything you see here we own and operate. Harrahs, we own. The quad. Caesars palace is right here. This is all you. We have 362 acres of land around here including this underdeveloped land behind us. We meant to get the customers of our competitors do have an interest in coming in the Flamingolas Vegas boulevard intersection and have things of interest for them to do here. What is there to do . What is in the wake of a retailof affordable options. Uniqueling alley, experiences, the yard house, sprinkles cupcakes, some boutique experiences. We have that in new york. As retail has developed in being , a number of Louis Vuitton and the stores, everything in link is more affordable, accessible, outdoorindoor open 24 7. Why affordable . Many think vegas you think extravagant and luxury. By affordable important to you . The 20 millionat some odd people, not all of them are going to buy a 2200 Louis Vuitton bag. The vast majority of them are not going to buy a 2203 vuitton bag. They want to have fun and have an experience they cannot get on home. They have money to spend. The type of experience that needs to be offered here. You get them all here and get them near your casinos. Ideally they go in and play. They drink, eat, shop. They spend money. You have this whole new area of retail development. How tough is it to get people to your spot . Its really tough. If i were to run to the list of things you could do to entertain yourself this evening, its a remarkable list of things. Its really what keeps vegas vibrant, or competition, we are adding new things to the offer list all the time. Its what keeps the place vibrant. Production show, entertainment, dining. The recent boom in nightclub experiences, seven or eight of the top 10 grossing nightclubs in the United States are in vegas. Level, the competition is intense and thats why we have to keep trying to come up with distinctive offerings. You mentioned it took three wass to build this and it 500 million. This and the linked together, all of it. Thats a lot of money at a time and is a lot of uncertainty about the economy. Are dealing with debt issues. How did you convince people this was the right thing to do . This has been the easiest thing to convince people of since the financial crisis. People really got the idea that if you put a new attraction in the middle of the strip with the kind of traffic we have coming north and south on the strip with this type of attraction at its core, it was likely to do well and the economics are not too daunting. Its not a multibilliondollar project. This one was really quite easy in many of our veteran shareholders including people like john paulson were really interested in Something Like this. It could be cataclysmic to our neighbors. They have said they are seeing a lot more foot traffic and traffic to the properties as a result of this new hub, the linq. Coming up, a Game Changing vote took place today that will impact the future of all college boards. We will explain it next. The future of all College Sports. This is street smart. I am trish regan. Northwestern is participating what could be a landmark voting prices, deciding whether to form a labor union for Football Players. If passed, this could change the landscape of College Sports. Scott, we are seeing change rapidly here. This is something they are very focused on, getting kids in a better situation. What do you anticipate out of this vote . Changes already occurring. That is what the quarterback will tell you. Whether this passes or fails, changes already here. The ncaa has put on notice that. Hey are being watched eclectic they are not able to unionize at northwestern if they are not able to unionize, what does that do to their ability as players to affect change . They wanted a change in how things are handled and in effect, they have gotten that change. During one of the interviews, a player from connecticut says he goes to bed hungry sometimes. The ncaa has already passed a new rule where they can feed the players unlimited options. This is how quickly it happened because of the pressure already placed upon the ncaa. Change is coming. More receptive to the idea of stipends . Everybody is focused on pay for play and what it might do to the whole College Sports model. Remember, nobody is really asking for that yet. Looking for is fulltime medical. Lets say you get hurt while you are in college, you have to pay those bills when you are done with school. Not to mention theres no guarantee that you even continue with school. They can cut your college scholarship. Cost oft a fouryear scholarship. If there is a difference in the actual cost of attendance, they want it covered and these are all things that have been proposed already. Now people are focusing on them. The ncaa has gotten away with a whole lot for a lot of years. Are those years over . Collects the Athletic Director at oklahoma collected 30,000 bonus because the Gymnastics Team won the title. This is a team that loses an excess of 1 million per year but because they won the title, the Athletic Director gets a bonus. The gymnast dont get anything but the Athletic Director does. Spentt that money better on giving it back to the athletes whether it the cost of attendance, dr. Character graduation, whether it be tutors. Isnt there another thing we can do with the money instead of giving it to an executive making close to 1 million. Or anyway . Why is this now becoming such an issue . It never got to play it deserves, no pun intended, until recently. The money has become so big. You are looking at the power 5 conferences in the ncaa have just with the big five. Is not include sponsorships, donations, tickets. Scott soshnick, thank you. A major facelift. Street smart is back in two. The l. A. Forum, a concert venue, has reopened after a one milliondollar makeover. Awayoal, to lure business from nearby staples center, kiss, justin timberlake, and the a stop at theng forum. Jon erlichman had a tour. The form has hosted every big musical act you can think of. And battle for attention with rival, the crosstown staples center. It reopened after a massive makeover. Lets check it out. Over here, you have some the eagles equipment. To give the form a proper facelift, the Madison SquareGarden Company spent 1 million on renovations. Arguably the most important music venue in the world at one time. He really saw the opportunity to return it to its original splendor and more. Flex week a man, ripped everything out, basically gutted the building. We came in, ripped everything out. If there is one thing that really makes it the premier hunter venue maybe not in the u. S. But one thing, the sound. It is the best sounding building in the world coming from a guy who knows. Its no accident. They put sound baffling everywhere. Kiss and def leppard will make a summer tour stop here in july. In august, it will be host of the mtv Video Music Awards where miley cyrus made a splash last year. They can hang and stylish hangout rooms. Now i get to test my fear of heights. We are now in the tension grid way at the top. Walk along kind of star wars like. I also noticed you guys had your own mood lighting here. We have over 600 leds we call the starry night. Huh . Y incredible, Jon Erlichman is here with me right now. Be the home ofo the lakers. Are they going to go after some sporting events as well . Yes, they will go after some. Tennis, maybe stuff like that. Youre absolutely right. They lost the lakers, the kings and they have become anchor tenants at other facilities like this. Staples center and the getting so much business. They have to do a counterprogramming approach. When you have a sports team playing in your facility through a season, you can only offer so many concert aids. At the forum, we will say to the different bands, you want to play 3, 4, 5 gigs straight . We dont have the lakers are the kings coming in. We have room to give you. This is still a work in progress. We will see how many act ultimately take them up on it. Some real competition to the staples center. Garden, thequare company that is owner of msg, radio city music hall, lets make a big investment in the last with this facility in los angeles. Are there synergies that they can do their . If you can book an act in new york, you can book them in l. A. , too. If they feel like the music quality is better, maybe they can do that, for sure. Like synergy overall. What is the executive chairmans real hope for the center . Hes a rocker. They talk about the next angle. He likes to rock out. I know what Madison Square garden sounds like so its a real interesting pitch to make. When youre not making one of these big sports facilities, what is it that you can actually offer to the artist, like they were saying that the eagles earlier this year. Come to us because we have made it a place for you as opposed to for athletes. They will be able to say whether or not they have truly taken some business away from the staples center. Jon erlichman, thank you. It tribeca Film Festival is coming to an end. En behind this film next. Might feel differently after todays ranx. In two. Smart is back time now for the scene where we bring in the business behind media and pop culture. Tribeca wraps up where upandcoming filmmakers display their work through an international and diverse community. They kicked off by debuting time is illmatic, the making album, nas 1994 illmatic. This is a big deal. This is a big honor. You are kicking off the whole festival. What was it like making this documentary. Being an artist, i came from the street art perspective. T was just an amazing journey we looked up to his music all her life. This is bigger than just music. Its the story of a generation. Eric really came up with the idea. Halogen describes documentary to people . It was important to us to get the album illmatic and up the social issues. Its not just a regular music documentary. We are telling a story bigger than music. Story . Is that a story of hardship, struggle, survival for these young man in the Africanamerican Community . What was really important for is you cannot really appreciate the poetry of illmatic without appreciating the people at representativs. Terrifictten a really reception. What was it like working with nas . Hes amazing. He really just opened up to us. E was extremely honest he was expressing his community to us. He connected more. Do you think people who are to hiphop can say this and appreciate it at a level its not about the music . This is a survivor story. You do not need to know about hiphop or nas. A connect on so many different levels. Is so important to get the story out there on so many. The school system, prison rates. Hes the one who made it out. How did you two come to Work Together . I knew one9 was a great artist. I was a music editor at five that the magazine pages could not contain the story which is much bigger. We got together and started shooting this documentary and it turned out 10 years later to be something bigger than we ever imagined. You spent all 10 years on this . It started 10 years ago. Thats a big project, a big undertaking. When you look at big hiphop artists today, a lot of them have this amazing crossover ability. For you think about jay z, example, how is it that they are to be true to their hearts . Illmaticnnects through because he was not making a commercial album. He led to connect the communit y. He never wanted to sell out. Likes is it selling out by doing a commercial for the consumer . Lot tohop really has a do with making money. A lot of the talk in hiphop is taking money. Actuallyg as they are winning in the end, i think what we found with nas, he is really selective with any brand that he takes on. Is getting at. E9 hes very selective about the decisions hes made. Worry that it is becoming too commercial in the industry overall . Us, as filmmakers, we monitor approach it differently. We wanted to connect the issues. We wanted to approach it differently. There was not any outside input. The movie is exactly how we wanted it. Congratulations to both of you on the success. One9 and erik parker. We will be right back with more street smart in two. This is street smart. Im pimm fox. You were just talking about Northwestern University perhaps voting to perform a sports union. The votes have yet to be counted. The National LaborRelations Board is investigating and reviewing the votes. I will have a roundtable coming up at 5 00 p. M. Eastern at the top of the hour on taking stock about that vote and what to do to College Sports. You will hear from dolly parton, the entertainer and singer. She has a new album and she will also talk about her goddaughter. You know who she is miley cyrus. Thats coming up at 5 00 p. M. On taking stock. Im looking forward to that. Apple ceo tim cook hinted there are some new items in the pipeline. That got people wondering where the watch is. Wearables will be topping 20 million in sales. We highlightnx, five with some serious staying power. More rankings, you can go to bloomberg. Com ranx. Thats it for todays edition of street smart. Yales Stephen Roach sharing his remedy for the china slowdown. Exactly how can this be fixed . Former italian Prime Minister mario monti joining us from the milken conference in california. Ben silverman has some news hes waiting how us waiting to tell us. Gearing up for a jampacked earnings week and the latest jobs report. Not going on next week. Make sure to tune in. I was seeing here monday at 3 00 p. M. Here on street smart. Approaching 56 past the hour which means bloomberg is on the markets. Im julie hyman. Lets see where stocks are ending the session and the week. On a down note decidedly so after some earnings reports disappointed investors from amazon as well as tensions heating up once again in russia, ukraine, and the u. S. Ratcheting up the rhetoric regarding russia. Some concerns about that fishing stock down. For more on the markets and where you should be putting your money, im joined by mike crofton emmis ceo of the philadelphia trust company. Its been an interesting week. Paying theby day most attention to the highest profile companies. What do you make of what we have seen in the reaction to where we will go from here . Isone Inflection Point because the market will be less dependent on the fed and more on the economy. The economy is chugging along but its really not a smooth move in the economy. Othersll do well and will do poorly. That is indicative of the early stages of any recovery. The recovery is in place and will continue to gain momentum. We will not see that momentum manifests itself until the third or fourth quarter. There will be an economy growing gdp taking it to new levels. Do you get into cyclical . You will have to use the next couple weeks. We will have a very choppy market. Are not consistent. Two, problems in russia and the ukraine which will occupy the market. Bond is something people are watching. Be in these things will front of sell in may and go away. We may start to see that a little bit today and next week is may. We will watch the market. If it sells off, pick your spot and get your spot. Buy cyclicals, old tag, momentum. There are certain stocks that sold off as if they were momentum but they seek ceased to be so. You bring up jilly add they have blockbuster results for the hepatitis b drugs. We saw some amazing results with gilead. How concerned are you . Rare. Is very it is a cure for hepatitis c. They will come to terms with the pharmaceutical benefit companies on a price matrix. They have other keyers in the pipeline based on the same science. Ised to doey are po very well and the growth rate is in the mid teens and 20s. We will get a growth start and you dont see that very often. Qualcomm, those earnings actually disappointed talking about china as a weak spot. Thats another. Qualcomm is on the front of all nextgeneration chip technology. Im not worried about qualcomm at all. Leverage to the economy and the emerging markets. Emerging market and attrition of wireless devices is just starting. We have to leave it there. Appreciate it. Have a great weekend. For on the markets, im julie hyman. This is taking stock for friday, april 25, 2014. Im pimm fox. Todays theme is launch. As in space and spacex. Its set to launch not a rocket necessarily but a lawsuit against the u. S. Air force. The company protesting a venture involving u. S. Satellite launches. Well bring you details. Plus, Northwestern Universitys Football Players take a vote on whether to launch a union. We debate the positives and the negatives of this historic move