Were talking washington, dull will you explain, atlanta and chicago ohair. The editor who led the Washington Post through watergate passed away. Ben bradley s was 3. He was turning the postpone into a nationally respected paper when the postpone watergate stories earned a put letser prize and led to the resignation of president nixon. Posting thirdquarter sales that beatest mats and in a Conference Call Marissa Mayer said she is focused on maximizing value and will take a look acquisitions. We will continue to seek opportunities here and we will be smart about it. Marissa mayer seemed to to be sending a mess taj star board capital. It called for a breakup of yahoo and asked that the company quit making acquisitions. And daniel lobe is now targeting amgen. Therr calling for a breakup and lobe wants amgen split into one company with older drugs and one with new prospects. And carl icahn has nice things to say about a corporate sparring partner and pushing tim cook to boost a Share Buyback of up to 100 million. He spoke to bloombergs stephanie rule. I think he is a great c. E. O. One of the best ive met and ive met a lot of them. Why . Because he listens to you . I dont think tim listens to anybody. He listens to himself. I met him once or twice and watched him and he is what Silicon Valley should have. I kahn is bullish. He said that apple shares are trading at half their real value. And in baseball kansas citys magic ran out for game one of the world series. Hunter pence hit two home runs as the giants beat the royals 71, kansas city was dominated by giants pitcher Madison Bumgarner allowing just one run in three hits and the royals won eight straight postseason games. Game two tonight in kansas city. Chose to are our top stories of the morning. Looking at equities bonds. What a deprimps seven days ago. Futures back. Not in the 2,000 watch but not bad. Interest rates not part of the story this morning. That in and of itself is a big deal. Nymex churns at on to the next and the vicks showing the new complacency from 25 down to the much lower vicks feared in the market and from 17,000 the dow, a twoyear lower yield after central bank jaw boning dollar rule back to 41. 01. Heres the snapshot from within the quiet of whats going on in china. China 7. 1 g. D. P. Heres the currency back fixed rate of it. Dollar yuan . I say yen you say yuan. Thats a chinese thing. Its a proper pronunciation thing. And im going to get a lecture from scarlet when were on break. Here we are rolling on the new yuan strength. It is a big deal but you wonder if the u. S. Dollar strengthens. Its up over the past months but what happens to the chineses willingness to let the yaw juan appreciate . And its not as dependable as the data we get from other countries. China was actually considering giving us an unemployment measure. I think the chivene basebook people look at use of electricity in china because they cant trust g. D. P. Which is one idea. In the equity markets the vicks again a stunning 6. 08. The bankers said all the right things. When the red sox were in the orld series, but can a great bull market and portfolio rely on until the chief Investment Officer del Tech International group gives us some optimism this morning what did you actually dot dhue in the market . Did you change things or go to lunch . As it is were already out defensively really going back to july. Because at that point weak Global Growth momentum was upon us. Because of those two fons we could tell there were unstable markets coming up for the fourth quarter. Conditions that still exist. The slowing of liquidity is something that is going to continue. What is a slowing liquidity factory besides my wallet . It may have beenly means theres less u. S. Dollars that are being pumped into u. S. Dollars and that has a including oil . It includes emerging markets. Were starting to see the volatility which was creeping in over the past months and expect the volatility to increase but more importantly when market rates start to up in advance of that. I was looking at the 10year yield. We have not recovered to the levels similarly the way the stock market has recovered. What does that tell you . Well looking at the 10year yield is important but it really doesnt give us a signal of whats happening in the markets because as we said theres a what were really focused on is that twoto 7year part of the rates curve. Now, we saw a 33 increase in the twoyear yield. Thats whats starting to creep into the market volatility. The twoyear yield . Thats exactly it. Atul, im reading in the report from monday from del tech. You write that you expect growth to come soon from increased business investment. I feel like we have been asking this question for two years without an answer. Why are you confident businesss are going to start spending their cash . Thats the area we are much more bull in. Its the got to come from the business increases. Where are you seeing that . Cocacola, i. B. M. And mcdonalds are not talking about increased business. Yes. That sort of level which has only been reached about five times in the last 30 years. The what . The Philadelphia Fed cap exintention survey. This is an Economic Indicator that tom has not heard of. If you look at the philly fed brought up my indicator. If you look at the keands components of it thats a great ninemonth leading indicator into ninemonth investments. Its at a level we have not seen in some time which tells us we are going see the business prove over the next year and something we have been watching over the past two years and investment and brilliant sometimes cluster together. This is our twitter question of the day. Here will the next big innovations happen . Tule do you have a thought . We still believe the u. S. Is the place to be. It was the place that was first into the crisis and first thanks to some fantastic monetary and fiscal decisions. But thats where we are really starting to see the innovations come through. Where are you based in . The bahamas. But which island . Down next to John Templetons old place . Great value investors. Youre telling us the United States excellence will not be affected by the challenges in france or china . They will be impacted. Globally we many see an impact. The significant proportion is coming out of europe. So we will site on a cooperate level. Ok. I want to thank you for the invite in february the entire surveils team. Atu le e with us for the entire hour. Im already packing. Coming up in the next hour of bloomberg surveils, celebrated author and byeographer and wrote steve jobs talents c. E. O. Of aspen institute. He will be joining us as our guest host in the 7 00 hour. Walter isaacson. Aspen institute c. E. O. Good morning, everyone. Bloomberg surveillance. Nike partner and c. E. O. All coming up at 10 00 a. M. Mark parker. Looking forward the huge five dynamics in thing wes put on our feat. Looking forward that. And at 10 00 a. M. This morning on market makers. Yahoo remember that . Its a goofy company. Im sorry. Does it exist . I mean heres what i feel about yahoo. We cannot get out of the about of talking about yahoo as if it matters. I feel like its not news. Its [speaking in german] most came from a onetime sale and 6 decline in display ads and grew less than the industry average so atule is this a company or just a Holding Company for ally ba ba stock . Well, stat moment what were sneeg yahoos searnings similar to what we are seeing across the landscape. Were seeing tax eversion plays nd buybacks. This is Financial Engineering to the point of a Holding Company versus actually doing something in tech in a logical progress. I think its interesting all the analysts were focused on was the tax treatment of the windfall from the alibaba sale. That is notal exactly stuff to get excited about. Its what do they do with all that cash they got and also does core business recover . And right now the answer was not much. If they handle japan and alibaba then what men . I mean explain what yahoo does in one sentence. Its supposed to be a media business. But i feel bad for this. Some of my best friends work out yahoo. Can a leader like Marissa Mayer make a difference or is this a sinking ship either way . Whether it comes to yahoo or apple. And going back to toms point you need a leader who can innovate and look at what they can get a business through the cycle not just what they can do with Financial Engineering. Heart of the matter is everyone agrees ms. Marissa mayer is extremely confident and has the ability to manage or nogse where is that in yahoo but in any company like yahoo . In terms of whether the innovation is coming in yahoo from another country or the u. S. , because if we dont get that nogse can you get it from i. B. Snment i would argue thats more serviceoriented. But if we dont get innovation coming out of the u. S. , productivity wont grow. Then weve got a real problem. The yahoo chart. Its what it was and then its cyclical churn and then like you said. Be speaking german] she said they are going to ave cash and she wants to make acquisitions which feels like its desperately grasping for ideas. Are there any acking decisions that to you work not just things that look like they are grabbing to make money in the future . We are heavily focused on the tech hardware and equipment baze thats the area thats going to grow. The pay is quite high right now and its really an error that can be quite cyclical. When we look at tech hardware thats snag has an underlying growth to it and its hard to spend and they are going to be spending on hardware more than that we are going to be seeing spending on services. And what youre seeing comes straight out of your report monday which is you offer p. E. Compression which is like a spring. If the p. E. Ratio is stretched and becomes worse then you know in the future its going to snap back and the biggest come in whared and equipment. Is that something youve looked at . Yes. The reason we have push malicioused that on monday is because were saying if the market is going to bounce, were seeing vol tile markets but if they are going to bounce typically is the the stocks that have the largest come fleags are going to bounce back the hardest but they are not the ones we are necessarily going want to invest in. Do we want to invest in commodities . Absolutely not. So we want to look at experiences in peer compression and number two, are going to benefit when we start to see the growth cycle improv next year. Thats when we look at going back to yahoo for the moment. Does fact that star board investors are so involved that they make you want to invest . Yahoo less or more . For us it doesnt really november needle, because thats looking ultra short term and at a series or catalysts. As macroinvestors what we would rather l be focused son because thats well, weve got keep one when they say come look at the terminal folks. This is one of the greatest advantages i have. Have the Oxford English dictionary load sod back to 1852 and they mention Queen Victoria. It came from Queen Victoria who married a german. Theres a window into how we do things so gstaad engine damage in german and freuda is pleasure. Stop it. So damage pleasure . We will speak england accomplish with one of the great journalists of america. Walter isaacson and his recent rave review on Henry Kissingers new book. Look for that in our next hour of television and radio on bloomberg surveillance. Good morning. Good morning, everyone. On bloomberg surveillance im tom keene with scarlet fu. Now lets get to this. He is 58 years old and made his Second Public appearance last evening. Jamie dimon healthy and recovering from throat cancer. Resilience was the topic of his speech. Its terrifying. To hear tough disease. Jamie dimon ee mr. Out, healthy. I had a little problem with the base deference that every senator paid him when he went nto the london whales hearing. And writing in the review with that agree wud which lavin noted was a shift. It was a rev rent deference that was there. They didnt hold his feet to the fire. Reading matt lavins piece. Ill put it out on twitter in a minute but goes to the immediacy of a c. E. O. And you compare mr. Dimons recover the atul ifference in the the moscow fter airplane crash. You have to be aware. Ive made mistakes on this as an investor. Yes. Weve got to be aware of how in control a c. E. O. Is and how much influence they have over a company, because it can really be a huge game changer. Youve seen some Companies Manage some of the greatest c. E. O. s leaving. Apple is a great camp example of that. Im haunted, scarlet of the scene in home alone where they are racing through the airport a c. E. O. Of a Major Company had a mass i have coronary there one time and i made a mistake. Didnt sell the stock and the company was never the same. Its one of those things that you dont plan for but theres got to be a deep bench in place. In the financials jamie dimon and j. P. Morgan are synonymous but overall youre less than optimistic about the group. Yes. Weve got an environment of slowing and there will be less u. S. Dollars being pumped into the world and Financial System and that just isnt a positive for the backdrop for financials. I know where the money is getting pumped in, its in politics. Senator ted cruz is focused in texas. An important conversation tonight with all due respect 5 00 p. M. On bloomberg television. I have to admit a weakness for ted cruz, because he makes all these other senators disturbed. He certainly riled it up and of course he is looking at a power to republicans starting. Was the one who read green egg and ham . Yes. That was a ridiculous stunt. Up n important conversation next. It is 2014 of discontent. For asia, so much of that focus is on hong kong. Near part of hong kong we know and travel. Its across the harbor in calhoun, this is, scarlet, essentially behind the peninsula hotel. North of it and a denselypopulated commercial district. Stand scene of a lot of scuffling. The barricades in the front. A data check news item october 22nd, hong kong stocks are beating every other developed market in the world this month. We will keep you apprised of whats going on. They are trying to get the world to ramp up the rhetoric. In north korea policing one foul e detainees, obtains freedom after he allegedly left a bible in the hotel room he was in. Heinekens thirdquarter results missing analysts. Reporting sluggish sales rowth. Last month heineken spurred an overture from miller. And ray of hope in the battle against ebola. Johnson johnson expects to doses of samples to treat ebola. Where is the number in april . Its not 10,000. Its a bigger number. The last estimate which was a month ago from the c. D. Was a million cases by the end of january. But stim, ebola was an fanned dug forever. Now you see a lot of existence see commercial potential in it and where Johnson Johnson doesnt see the potential in africa but here for stock piling. Thats where the money goes. The news we had this morning, they are evaluating a patient out of newark, new jersey. They took the patient from newark to a hospital in one of the three designated hospitals n the state and are looking to contact passengers on the flight from brussels. Lets get back to the markets. Lets take i. B. M. , cocacola. They switch from strategy toik triage thinking the bestlaid plans of selective blue chips crumble. Aatul lele has seen this before. You and i have seen this for years. Something happen engines october. What is it . In october its typically headed into the earnings phases. At the moment its a more difficult earnings environment such as for cocacola and mcdonalds. The u. S. Consumer isnt in a strong position right now. They are obviously exposed to that. The one headline we saw. Scarlet, i saw yesterday across the bloomberg terminal, cocacola hinging incentive to revenue and speaks to what you see every day which is the search for phenomenal g. D. P. And sales growth. Whatever the company, thats the battle right now. It is. Its very difficult for companies to achieve huge rates of sales growth which is why they are looking for other things whether its acquisitions, the sales growth is the real answer sthand typical to find. Given all that you made the comments of how cocacola and mcdonalds are more exposed. We are seeing new orders roll over. So growth momentum is slowing. But were still mid cycle. Typically these cycles last fee three or four or five years. So its Industrial Production and two, its cap exand business investment, which i spoke about earlier. Its still just lackluster. I am going to dry with the atul lele take of the international. U talking about cyclical problems, Consumer Confidence in the u. S. Weakness in europe. But i would argue the problem is people dont want to buy what some of these companies are selling. This is my morning mustread. It comes from Consumer Reports. You read Consumer Reports . He is the father of four children. Where else would you read if you want to buy something . Have you bought a crib recently . Dont answer that one. You [laughter] you can also read Consumer Reports if you want to buy a hamburger. Best and worst fast food restaurants in america. Mcdonalds own customers ranked its burgers worse than those of 20 competitors including white castle and carls junior. Would argue its not about cyclical macroeconomic friends. People are moving towards kraft beer, thats heinekens problems. People hate mcdonalds hamburgers. Thats mcdonalds problems. If you look across the consumer landscape where every mcdonalds where you say its a product problem off walmart where its what you say is a consumer problem. So which is a bigger blowup . The greatest value in a consumer stapletype areas of the market when were looking typically at consumption. Were starting to see wages up and gas price fall. The Broader Consumer landscape will be helped moving forward and the rise in wages will be inflationary for the u. S. Economy. In less than a minute. Do you see a continuation of the consumer split where some consumers are moving towards Dollar Stores and others moving up and nothing in the middle for wall senator well, its when we see the wages come through we will see the people shopping at the Dollar Stores moving into the walmarts. I dont think youre going to see anything moved above that. But when you are seeing wages growth moving through the economy, that tends to lift it up. Digestture s like spinoffs. Is that a shortterm solution . We have to look at the cycle where we are investing at the moment. We are still in a broader lobal economic area but when we look at some of the hortterm areas we look at tax inversion plays and its hinging on shareholders when were looking at investments. My only question when we go to lunch im going to get a number two value meal told ketchup, you . Im going to the briss kit and getting what i got yesterday. No. Im buying today. Were going to mcdonalds. I am not above a quarter pounder. All right. The turning point in the investors market we talk alibaba when we come back. Good morning, everyone. Bloomberg srq capital management. Breaking news and in on the french andy giant total. We know after christophe de margerie passed away suddenly we now can confirm company has announced a new c. E. O. He is Patrick Pouyanne and they are splitting the c. E. O. And chairman role so the chairman will be cherry dental list . I cant pronounce french at all. So they are splitting the role of christophe de margerie. At total. After a giant play in north seas. And they are going to have the challenge every other oil c. E. O. Has right now which is that its harder and harder to be a cowboy when oil prices are this low, theres not as much money in the deep water exploration he had championed. Yes. He was huge presence when he was in the room there was just a dynamic sense as you said of a cowboy. Going back to daniel jurgen. You wonder if total or for that matter any other oil company can carry that forward. So much more on total through the day particularly for those of you in france. Lets get to scarlet. So far this year the s p 500 has gained as much as 9. 3 on an intraday basis. This alltime high was set in i had no late september. We took a big downfall as much as 9. 8 before recooping these those losses. This shows you what happened before and on and after september 19. Its a threeday chart and it marks four minutes and one second into the stock markets opened thats when the s p 500 peaked what else happened that day . Alibaba had its pricing debut and september 19th was the first day of trading and then following monday and its been downhill since then so alibaba marked the top of the market. As we said, its going to be a difficult market environment over the next three months because we have global slowing growth momentum and lick windty growth. What isnt changing is the second point of slowing liquidity growth. And the single biggest risk is the market rate beginning to rise. Whats your rate of change in that shortterm yield were at 0. 351 for a cup of coffee. Do you have a Tipping Point in your twoyear . What were looking at is Corporate Bond yields, and what we find from there is if we start to see really the pace of yields move up with rippedty can we talk calculus this late in the year . We can. So its a wednesday. But the answer here is youre looking for this as glitz going. Exactly. So when it comes to Companies Making a decision on whether or not to go public and continue their plans, will a sharp twoyear yield discurgs stop them . Well, it could discourage home the do so but when err looking at the i. P. O. History thats the real story when it comes to looking at i. P. O. s. We should mention the credit for that goes to the bank of merrill lifpblg and our own mike mckee used it. Feels like a shame less plug. Of course it is. Big bank plug. No. We were we have a special guest coming up. This is exciting because you have daughters. I have daughters. 128 years. Thats the total amount of time spent launching one makeup tutorials. She puts together videos where she she is the most famous person i never knew about until today. Michelle phan. This is very cool. She will be joining us right after the break. Good morning, everyone. On bloomberg surveillance come up in the next hour important conversations with Walter Isaacson. After the passing of ben bradley. We will talk about that in the next hour on television and radio on bloomberg surveillance. Our twitter question of the day, to walters new book, where will the next big innovations be . Thats on surveillance on twitter. We need your answers on where the next big anyone me to vacations will be. Maybe its gene yossty. 1207 me if youve heard this one before, a College Dropout millennial creates original content online and starts media business. Michelle phan started out on google and has since launched her own cosmetics line and written a book. She joins us now. Welcome to surveils. Thank you for having me. Theres a myth where anyone can record a video, put it online and make it into a video. You were talking about a bow tie tutorial. But its not that snimp i wish it was. Whats the critical ingredient to your digital success . I would say consistency. Making a viral video is actually very easy but having the consistency is hard. Because theres departmentations people have and to meet those expectations it can be difficult, so having consistency is very key. Also communicating with your audience and having this close twoway dialogue with them. So youre incorporating all the suggestions they are giving you. I looked at your first video and your style is already there. The way you look at the camera and the way your voiceover happens. You had a sense of how to do this the first time you picked up the laptop. Well, i experimented. I shot a few other videos but that was the one that made the cut. Talk about this in my book. I say before you start a Youtube Channel the first question you have to ask yourself is why . Are you just wanting to put up funny videos or do you have something to say . And do you have a brand image . Page 58. Cream foundations, mineral foundations. You are replacing something lost in society. What are you replace that all these girls dont have that they had 10 or 20 years ago . Is it their mothers . No. I dont think im replacing anything but what im doing is all these girls and guys are online is were breaking down the idea of secret. Everything is about sharing when youre online. And we were just sharing the video of you turning yourself into taylor swift. You have also turned yourself into barbie and lady gaga and the mother of dragons. But you dont do makeup for other people. You do it for yourself. Yes. And you did runway shows in an attempt to do it for others and that wasnt your thing. No. It wasnt. I think what i do is i teach people how i do my own makeup, and people who have faces like myself or want to learn from me learn from someone they can relate to or know. I know you do the makeup thing and thats the whole thing. 2349 back of your book you have howto advice, resume advice. Work rules for even. Dont run out the door the second the work day is done. Thats what brendon does. Im gone already. Youre doing Life Experience for girls in search of that. Did you know that when you started this . I just knew i wanted to share any experience just my Life Experience and i dont know everything. But i think thats why theres something thats very relatable about that. That i dont know everything. Im not telling you what to do. Im sharing what works for me and and youre taking people along that journey. Youre a vietnamese young woman. I know youve had incredible success but did you ever feel like your corporate world the court wormed didnt take you seriously . I dont think the cooperate world really got it. The internet and online world is fast and i think now they are getting it and moving faster with it and everything is clicking. Also i think my not my gender but my race didnt really stop me from anything abuse i was the online ambassador for lancome. I think its really about connecting with people and getting in front of those people the p. R. Of lancome and these brands and really talking to them. Because sometimes thy dont get to see the people like myself. Right. They deal with Christy Turlington types. Right. Didnt. Species of persons. But you have your own line with lawyer yall now. And this is a privilege thats usually reserved for actresses who make 20 million a movie. You started this by scattered showering 25cent makeup bins and your line is sold at a markup above that. How do you start with how you started and then how they make themselves up and the premium youre going to charge for your own line . Well, my products are luxuryaffordable. But then i have another product called its 10 a month. I want to put you on the spot. Youre making millions of dollars a year. Youre invited to a party and what would you think for scarlet for the next event . Well, i think emerald is beautiful. Emerald is actually a color thats gorgeous with your skin tone. I think i need some cat eyes. Do you have a favorite Design Center i dont. I dont really shop by labels but what fits and looks good and i think this generation i think thats how they shop too. They justice want to buy clothes or snag speaks to them. Do you need main stream media or say to the blombergers, to hell with guys . Well, if i didnt believe in main stream media i wouldnt be here so tiff utmost respect for main stream media and in the future i would love to see main stream media and digital merge and Work Together. Could she be the surveillance youre part of this movement on youtube to take people working in their living rooms and turn it into a production studio. Thats beauty of it. This is great lighting what you have here but the you can still have the same concept and have the same audience with the webcam in front of you. Why are there so few size zeros or clothes . Youre the pro at this. You go in stores and theres no small clothes. Thats why i shop in asia. One size fits all. Tom, do you wear avenue size zero . He wears double zero. Thats a different category entirely. You call yourself a story teller, whats the next chapter in your life . So find other people who have a brand idea who also want to become big on youtube and really mentor them and help grow their brand. Thats what i want to do, because i believe the best part of success is to share your success with other people and to help others. Thats what i believe and every person that reads this. I want them to be inspired find their purpose and find what they are good at and go after it. Thank you for joining us this morning. Michelle phan, author of make up. If you did a Youtube Channel, what would you do on investment . Well, it would have to be significantly less than in terms of macroinvestors. So looking at the macroenvironment. But having said that, my private bank. Thank you for being public with us. Atul lele. How about the report the ruble slightly over 91. Scarlet . Well be right back with Walter Isaacson on bloomberg surveillance. A new jersey hospital is in long down as a passenger from brussels is a value weighted. The cdc is in search for a better protocol. Ibm, coke, and mcdonalds go in search for a new strategic plan. Good morning, everyone. This is bloomberg surveillance live from World Headquarters bloomberg World Headquarters in new york. Here is scarlet fu. But a man traveling from liberia has been hospitalized in new jersey after being screened for ebola. He may have been exposed to the disease. Health officials are now contacting other passengers on that flight, all of this after the Obama Administration ramped up procedures designed to contain the spread of ebola. Michael leavitt told bloomberg it is a good move. Quick part of our strategy now is clearly to contain. Part of our strategy now is clearly to contain. That a travelve ban, where we are black , made anyl flights sense. But some members are still pressing for an out right travel ban. Some members are still pressing for an outright travel ban. We have a clear m a strategy and a principal process for reviewing m a opportunities. We will continue to seek opportunities here, and we will be smart about it. Ursa minor seemed to be linear message to starport capital. Activist hedge fund daniel amgen split into one company with older drugs and another with new prospects. Meanwhile, carl icahn has a few things to say about somebody hes barred was a lot. Carl icahn is pushing apple ceo tim cook to boost the Share Buyback to as much as 100 million. He spoke to Stephanie Ruhle yesterday. I think he is a great ceo, one of the best ive met, and ive met a lot of them. Why is he great, because he listens to you . [laughs] i dont think tim listens to anybody. He listens to himself. I had dinner with him once or twice. Ive watched him. He is what Silicon Valley should have. Carl icahn has confidence in tim cook and says apple shares are trading at half their real value. No question about it, baseball is important today. The San Francisco giants take out the kansas city royals. The magic ran out. The giants got out in front early. Dominated bys Madison Bumgarner was just one run in three hits. Run and threene hits. Can you see a map of the survey of where royals fans are and giants fans are . The entire nation is blue, even california. Itsts a feelgood the feelgood story of the year. Isaacson with us today. And with the passing of ben bradley, its a real honor. Fortuitous. Wewe have some earnings and want to go through what the market set up is for the day. Futures are negative three. Lets move on to the next screen, please. And a quick mention of dow chemical beating a beating results. Everyone has a ben bradley story. He was profane, and kind and, wise. He let two metro editors break watergate. He became the risen not a journalist in the last 30 years that either wanted to be ben bradley or right for him. What is your ben bradley story . When he walked in, he would assess somebody instantly. Excuse my language slightly, but he was always a bit filthy, having been in the navy and he would say, you know, his balls dont clank, or something. You realize he had just taken a smart and refined person and just cut them down at the knees. , this knew, he would say person would not deliver when you need it. Are we nostalgic for newspapers back at a time when they had power and they meant something. They are sort of left to be on their owns like orphans to barely make anymore and any money. Is that what we are nostalgic for . Matters, itspers funny had editors like ben ben bradlee. One of his talents is that he had a short attention span. He would look at something and say, thats boring, or whatever. I look at what marty baron has done and the energy of liz sly and the reporting on the islamic caliphate. Why can we see what more of what marty baron is doing at the Washington Post right now . What is so hard about this . I look back at the team that was covering ebola at the Washington Post. They are energized. Why can we see more of that . Marty is that. Having spent most of my career in print, i would love to a vibrantt print sector. But what happen at the Washington Post is very clear. You dont just have a good editor. You have a lot of money. In this case, you have a billionaire. It is not bad when people really care about information, and people who do it, whether it be bezos or bloomberg. I picked my billionaire, lets be honest. You talk about print. I read the Washington Post on my iphone. I read bob kaisers amazing work. You talk about people looking at it on paper, but i think the Washington Post, wall street journal, the new york times, bloomberg, theyve made a turnaround. The burst of Digital Resolution and technology will technological innovation, where is the innovation in journalism today . You are seeing a lot of innovative i look at. Loomberg businessweek i also see new forms of journalism coming. Those online and on television. What hyman and halperin are doing. Ishyman and halperin, that on today at 5 00 p. M. , but you look at politics and their vertical. Do you suggest that the Mainstream Media can pull in those best practices and survive . Or are they two separate worlds . Okuma absolutely. They are not that o, absolutely. They are not that different from Mainstream Media. It is something that can be done and is being done by what you would call name stream and in new places. Of a newdea journalism, a quick overview, that is where we are going. One of the things you can lose on that is that paper and oldfashioned journalism is really good for not longform narrative. Lose the want to longform narrative. I really assess over the new yorker because they have those reporters. Here is longform narrative. Here is kaiser. Im ben bradlee and the Washington Post. You never get to this in digital. I got to it when i was reading online. That said, you want narrative storytelling. You worry about the twitterization of the news. But these standalone news organizations like the tribune, which just bought my hometown newspaper, can they survive alone . They used to be part of a larger empire. But what youre asking is slightly different than the death of journalism. You are talking about a death of a Business Model. The Business Model got slammed when everything went online for free. People had not figured out a way to get consumer revenue. It was all going to be advertising revenue. That is a bad idea. I think we are seeing the stage now, whether it is a bitcoin small payment system, or a Premium Payment system, that will give us a new golden age of journalism once we figure out the Business Model. Walter isaacson with us for the entire hour of surveillance. Our twitter question of the day where will the next big innovations happen . Tweet us your questions and answers. This is bloomberg surveillance. Im scarlet fu here with tom keene and brendan greeley. We are back with our guests, Walter Isaacson. Is the newly minted author of innovators. I should not say newly minted. You are a revered author. I like newly minted much better. Show your latest book, you how this myth we have of the loan innovator is just that, a myth. It doesnt actually happen. I look at steve jobs in doing his biography and you think he , theme loan, romantic hero guy that comes out of the garage. And then you realize the best thing he did, not the mac necessarily or the iphone or the ipad necessarily, but apple. He was part of a team. He was was with weisbach and he partnered with tim cook. Any part with wozniak of he got the most talented people and they became deeply committed to his vision. To me, being able to do that because creativity is a team sport in the digital age. You cannot really do it alone. Given all of that, we got tim cook at the helm now, and apple is a very Different Company now than when steve jobs was running it. Apple,tance, in tim cook the biggest purchase was the beat for 3 million. Steve jobs did not make those purchases. Is he doing the right thing for apple . Wouldsteve jobs steve jobs steer the company and instruction of he was still around . I could never channel what steve would do. The most important thing he did say to me was that tim cook and be glad apple should not wait cap every morning and asked wake up every morning and say, what with the do . They should say, what should apple do . I cannot wait for the iwatch. Innovations no, no, the whole revolution is to take technology and make it personal. As opposed to creating machines that will think for us in a different room. Had a fingertip feel for it. So did most of the great innovators. So did larry page and sergei brin. I think youve are seeing apple do stuff like that. Doing hardest thing in the research for your book was figuring out the providence of ideas. Didntdy saying, no, i read that, but came up with my own. Was that a challenge . Bob noise at intel said, the about said to the beaver the beaver dam, did not build it myself, but it was based on an idea of mine. We will be back on surveillance. Good morning, everyone. Im tom keene with me, scarlet fu and brendan greeley. An important conversation on ebola. Africa, a giant continent affected by ebola. Uganda is some 3000 miles to the east of liberia. Thes ebola free, but tangible effects are there. Global african investor. Good to have you with us. What is the effect on your nation as you look west to west africa . It is a situation that people follow with the idea that africa is one place. It is a huge place. It is more than a few thousand meters away from the current outbreak. Is spread by touch. It is not spread by breeding. Ing. Reath now it has become an epidemic. More than anyone i know, brendan, you have lived it and research the clothing and the uniforms. But it does seem the way to fix the problem of ebola, and something uganda has done very well is updated Public Health in infrastructure. Talk about what you have been doing for the past two years, because evil outbreaks are something that uganda has had in the past. Talk about what you have done to make sure the public is ready for this. We have built an infrastructure to deal with communicable diseases. We can isolate it faster. Right now, if you go through our international airport, they test you to make sure that you have not had any contact with the people from west africa. Everything that for us, it should not affect our business people. People coming in to do business should not be affected. You are ahead of the uganda investment authority. You are 500 miles away from ebola, but you are right next door from deck store to you are right next door to one of. Wanda has a similar economy anda has a similar economy, to has issues with access mainly electricity. What does uganda have to do to move up in those rankings . The first thing we have to do is execute certain permits. Has a Onestop Center for doing business. Want to get land, more permits, you can get them in one place. We think that is a solution. We have six agencies to deal with the fastest six items. Frank, thank you so much. Isaacsonoday is walter and he looks at how the nation reacts. I would go back to your perspective on benjamin franklin. You wonder what the Founding Fathers would i mean, they had influenza, but you wonder what they would do. Benjamin franken was against vaccinations when they had smallpox. They did a test of smallpox vaccinations and suddenly created what was basically a colonial Public Health system. Call. S a wakeup you remember when you were growing up, the people that brought the government, private industries, and universities together for basic research. We should have been doing that basic research on ebola. It was cut about eight or 10 years ago. Where did we lose that . About 10 years ago, we began which ishe seed coin, the basic research. You saw the cusp that happened the cuts that happened in nih and in genetic engineering. Betweenhis triumvirate universities and government and industry, that went away. It went away when decided we would cut basic research being funded by the government. That was five to 10 years ago. Its not just basic research, but gain drugs licensed and figuring out the Public Health gettinge of but drugs licensed and figuring out the Public Health challenge of getting them into place. That had to do with the corporations, but also entrepreneurial startups and pharmaceutical research. Next may before we test it. A lot of it was driven by the cold war, what you are talking about. How do we create that atmosphere here around this . I think ebola might be the wakeup call. You talked earlier about remembering sputnik. That was a wakeup call around the space program. We knew that with Information Technology. Now i think we need pharmaceutical for Public Health. In your booktes echo yes, both in terms of being an entrepreneur, but also the passion as an innovator. Walter isaacson is here with us for the hour. Our twitter question of the day where will the next big innovations happen . What industry would they take place in . What is the geographic location . Silicon valley, london, boston, austin . Treat us. We want to hear from you. Tweet us. We want to hear from you. Lets get to heineken, missing Third Quarter analyst estimates. Weather. Ny blamed poor last month, heineken spurned a takeover offer from miller. Confirmed the news that total cost totals new seo will take over as chairman of the company. And 250,000 experimental doses of an ebola vaccine will be ready in may. Ebola has killed more than 4500 people, mostly in west africa. Walter isaacson wrote a biography of Henry Kissinger near his 70th birthday. Hes now 91. Auto of book of this 2014 of this fall, 2014. I loved your effort in Time Magazine on this. Why is it such an important book . We need a new dose of realism in Foreign Policy in america. Kissinger was not moved by sentiment or crusading ideals. If there was a problem in Foreign Policy, he did not have a feel for americas moralistic streak. Now that weve had our moralistic streak yet is involved all over the place, we need a more honest assessment. He writes about world order. Years, looking at what National Interests are, and sometimes being a bit humble about what we can do. I talked to Christine Lagarde at the imf about this sailing concept of nations and states. Is that chatted shattered when we look at the islamic caliphate . Yes, they are trying to take to create a nationstate, one that is run by the islamic state. We have a problem in the middle east. What could secretary kerry . Earn from secretary kissinger he could learn a little bit of the humility that, perhaps, took kissinger 90 years to learn. He not always that that humble. But he did understand his limits when it comes to changing history. Was it five years ago you wrote it . O, no. Im joking. 20 years ago. How would you write it today . I think he was able to create a balance of power coming out of the abn on out of the vietnam time and the cold war. We won the cold war because the balance of power works. Broade to look at the view and look at russia, china, and the United States coming keep them in balance in a realistic way, unlike what we are doing now in my opinion. Very quickly, you look back at the kissinger era and forward to where we are now, and now you look at the change media, a speed of the gap. Could kissinger work in a speed of media. Could kissinger work in todays world . Absolutely. One of the problems we have today as we do not have diplomats that know how to use the media as well as they should. Walter isaacson on Henry Kissingers world. Lets get you a data check right now. Futures indicating a mixed open. S p futures are down while nasdaq futures are little changed. The 10 year yield going down. And nymex crude moving up a little bit. Up today, data coming including cpi. And youre seeing the big go down to about 15 as well. This is bloomberg surveillance. Im brendan greeley. I dont wear a bowtie, but tom keene does. Carlet fu is here give a morning must read. Jodi greenstone miller. She runs an executive search firm. She came up with this based on the news that facebook and apple and other companies in silicon on a hike working freeze for women. Can you get me . Heres what im doing. Im playing my tambourine, because i want you to keep singing. You are in full agreement. Amen. I have four children under age five at home, and i would really like to see them be little. And you would like to be a father with them and not be at the office all the time. Yes. Walter isaacson, this sense putting emphasis on getting every thing done in the 20s and 30s. Where does that work in Silicon Valley . You have to be a bit of an innovator and question authority. You do that a bit better when you are in your 20s and 30s. Do you have to focus exclusively on what you are doing at work . Steve jobs was a great father later in life, not the best father earlier in life when he was really focused on his career. Is that what it takes . For better or worse, you have to have passion. Will gates, larry page, sergei brin, you have to have passion. And it will be disruptive. People like Sheryl Sandberg are doing really well at trying to figure out the balance. But my frustration with Sheryl Sandberg, in order to lean in, you have to be Sheryl Sandberg. You have to have limited limitless energy. Not everybody has to be a ceo. Not a but he has to be the worlds greatest interrater innovator. But we should not kid ourselves. You will not create a startup and make it into a giant company if you dont lean in. But the entire tech culture, the startup culture, they dont look at that. Everybody is building to be a superstar. And they are all doing hackathons all day long. Lets look at somebody on the edge of it. Thank you for bringing this up. Ballmer showing some emotion. Lets listen. Im unique in this world, pretty much. The guys have done great work. Bill gates, obviously. Steve jobs, obviously. They are guys who you could just they are amazing. But i was not just a passive participant on the ride. I look at that body of work and i say, i feel really good. Ballmer was with charlie rose. Walter isaacson, i would suggest that is the exact opposite of the spirit of your book the innovators. No, because what he was able to do is form partnerships and teams. And run the company. Yet, but if you look at great innovators, they always have the right people they surround themselves with. With bill gates, its paul allen, its ballmer. Ballmer is a connector. But hes a team builder. Hes a team builder. And andy grove was different from bob noise. But if you look at the book the innovators, its like a great baseball team. Whos playing shortstop . You need loneliness to be an innovator, and then you need people like ballmer to go into meanings. Meetings. And then you have to figure out how you do that mashup, because without a visionary, without somebody with the passion, it will all be barren. Is vision without execution nothing. He goes back to charles babbitt, the grandfather of computing. He died penniless and frustrated. Is babbitt or the man who built a computer in the basement of the nsa, when you only have the vision, it doesnt work. You have trapped the team. Hear the entire interview, charlie rose speaking with Steve Ballmer on Television Later on today at 7 00 and 10 00 here on bloomberg television. We will be right back. This is brendan this is bloomberg surveillance. Im scarlet fu here with tom keene and brendan greeley. Its only mid to late october, but the countdown to christmas is happening already. Retailers are gearing up for the shopping, but will Companies Like sears survived . Betty liu will tackle that question today. How is eddy lampert doing . Thank you for that reminder, by the way. I dont even want to think about holiday shopping. We want to explore this interesting thing going on with so many older retailers out there that we have seen struggle. Im not talking about radioshack, but sears and target , which is in the midst of a turnaround, and several others. Are they going to turn into basically landlord . The only thing of value at some of the stores is the land they are sitting on. Sears is a perfect example. They came out the other day and the shares had gained over 25 partly on the fact that they giving afering Rights Offering to the shareholders, the largest shareholder being Eddie Lampert. And a releasing their stores to primark. It remains to be seen whether these big retailers can survive in this age. About innovation in oldschool retail. You see the disruption of amazon in particular. I buy things on amazon and have them delivered. I have a problem seeing where the brickandmortar stores, they are all trying to figure out how to combine brickandmortar with online, but im not sure. And target says they are going to bring in 35,000 new items. Brendan, you might actually get a new faux fur vest from target. That could be your new look. I dont need a new one. The one i have at home is working just fine. [laughter] author 30 you are an times over. What wesay that is want, being the only buyer of your book . No, that is not what you want, but you want as much possible competition in every type of delivery, whether it is delivering broadband to your home through cable not something that is really , your magic is you actually understand the finance of journalism. Are these authors missing the mark in that they are blind to the money part of the business . Tono, no, i think you want make sure youd dont do what you do with journalism make sure you dont do what you did which are looking, which is create a model that is unsustainable. I think Simon Schuster nailed it. But that is the biggest engine. That is a big distinction. But betty, who is your guest . Stephen newman, the former ceo of moments, which by the way succumbed to a lot of these changes and went bankrupt last year. We will be right back. Good morning, everyone. Futures are quiet. We welcome all of you. Ingas is cheap, perhaps anticipation of lower demand. Perhaps because saudi arabia opened its cap. This is good for politicians in america, bad for nigeria, which sells crude, but no refineries. It is bad for iran and very bad for russia. Itsrussia ever diversify economy away from oil . Not in the shortterm term, and that will pose real problems or russia. Oils facing a low price for and confronting a rising ruble. A diverse economy, you could take advantage, but russia does not have a diverse economy and it will not be able to. Walter isaacson. I was wondering how a inbination of the collapse prices and the sanctions Work Together in squeezing russia. They Work Together in that russia has fewer revenues and the sanctions mean it cannot turn to western financing to make up the shortfalls. Two look internally to make up the shortfalls, or to other potential bankers, most likely in china. I dont think russia necessarily wants to become heavily indebted to china. Therefore command has to make some very tough choices as it faces and therefore, it has to make some very tough choices as it faces slower growth, if not recession. Your prescription is more trade, that is the way to bring russia and ukraine into the global economy. The talks right now in brussels are not about trade. The eu does not seem to be invested in that. They seem to be invested in getting the gas they need. How will this happen . In the shortterm, there has to be an agreement on gas. While there was not an agreement today, but the outline of an agreement exists. Of what assurances do you has to provide to make sure the gas flows. In the longterm, though, i would argue this conflict began with trade and began with the prices over the eu and ukraine and deciding to trade them together. If were going to get to the root of this crisis, that trade agreement has to be addressed. That will be addressed in the next 15 months in the three sided negotiations between the eu, russia, and ukraine. Will pomerantz, thank you very much. Walter isaacson, there is always this question about russia. Is putin unique . Hes unique just like every czar of russia has been unique. If you read Hillary Clintons book, or we were talking about dr. Kissinger earlier every now and then, someone comes along in russia and changes it. And gorbachev did that, and yeltsin, and to some extent even medvedev. But i think we are seeing russia becoming russia again. When did they miss their chance . I think russia missed its chance to diversify its economy, and secondly will is at the kennan institute. To break out of what he said, the basic mindset of russia as a paranoid empire. Something else i found interesting is, watching how china plays this. Relationship as tom and i were talking earlier, is something kissinger understood. Somebody needs to be clever to getget china russia indebted to china. Kissinger nails this, this relationship of ukraine to russia. Which is, they have a point of view that is not in the media in the west, and not even being discussed within the nato centered west. As kissinger would point out, there is an instore tie and with thetie to russia ukraine. I think russia has misplayed the hand at the end of the day. The Foreign Affairs article three months ago from the university of chicago professor i cannot remember his name, there isdea being that no diplomacy to russia because we are not looking at russian history. We are synthesizing it completely through our modern american template. Yes, but i think the whole goal, whether it starts with contain way back, is to russias imperial ambitions, and there is no better way to do that than the collapse of the price of oil. If you are whispering in obamas ear in 2008, how would you have handled the recess . I probably would have handled it the way he did for maven noah did not work perfectly. Did, even though it did not work perfectly. We have a confluence of interests with russia on iran, on terrorism throughout the islamic world just south of them, on chemical weapons in syria. I think we should have looked for the 60 of places where are interests where our interests converge. I can sort of put a cap on that. The editorial offices several years ago when medvedev was still president , the official portrait of medvedev had putin glowering over his shoulder. The way it turned out, i know, i know. Was putin inevitable . Probably, but i think we could still say, look, and this is what is injured did say and what frank and roosevelt and harry where our here is interests lie, and lets work on that. In the meantime, that will keep them from going into ukraine. I want to get to the twitter question of the day. We knew you were coming on to muscle he asked where the next innovations would happen. Lets read some and i will get your take. I think biotech is an explosion after ebola scare them highlighting the need for investment. One, energy in general. To some extent, elon musk is taking that one on. Innovation in television, becoming one of the internet screens. Those are three billy good answers, all exactly right. I do think those are three really good answers, all exactly right. I do think you will see innovation in bioscience, but it will be different. Its not the type of thing you can do in a garage. It takes more investment. And you need government support. Yes, and i think ebola will help to do that. Secondly, i think the disruption of the cabletv model is happening as we speak. Do you think people will spend x amount of dollars per month to get cbs streamed for free echo for free . No, but i think they will figure out how to get it to usaa la carte. Digital revolution is that you get what you want when you want as opposed to a package. You need ideas and you need money, and you need this crossfertilization. What is the next bell labs . Silicon valley has been the place where engineering helped drive the Information Technology revolution. You are now seeing the movement to cities where the creative technologies are, whether San Francisco, austin, new york city. And also, the bostonnew york corridor, where you have a concentration of new york hospitals. I think that will be the next exposure. The next explosion. But the idea of living off in the woods and telecommuting, people like being in cities and being cold close contact with creative people. But in your book, in your book, there are indepth chronicles. They are also very long. How is this latest book . I did not have time to write such a short one. And how long was the steve jobs book . 900 . Like no, no,. No, no. 656, excuse me. What gets cut out . The important thing is the innovators. People say, oka mayeux did not include soandso. Look at the 12 great innovations of the last 40 years. Microchip, online, software, whatever. Who made the greatest leap in each of those fields . Been aired it is defined like a sculpture, by what you leave out, of the narrative is defined like a sculpture, by what you leave out, not just what you put in. They are such cool people, and i know i left a lot of cool people out, too. If you are talking to a 22yearold right now, where do you say to move . New york, boston, San Francisco, and new orleans, my hometown. Good luck with housing. Lets all move to new orleans right now. You might wait until the end of hurricane season. Cruz is on this evening. Are you intrigued by this Midterm Election . Yes, i think the problem has issuebout any substantive how will we save the middle class of america . A fabulous book about the history in america. Walter isaacson, the author of the innovators. Good morning. It is wednesday, october 20 second. Were live from bloomberg headquarters in the loop your code aipac show for you this morning. Strap on your cease your seatbelts. The Company Returns to ceo Eddie Lampert for another cash infusion. Will it make it to the Holiday Season . Two leading voices on retail. Now the chairman at census joining me. He spent 16 years at another company struggling ibm. Ofo, the former ceo lohmans, stephen newman, is joining us. First, here is a look at our top stories this morning. Another possible case of ebola in the u. S. Newark, new in jersey, after being screened for the disease. Health officials are tracking down other passengers on the flight. Haveon johnson plans to a