These crustaceans. We will also show you fresh fashion. U. K. Supermodel lily cole will be joining us. Of the impossible lily. Before that, headlines with olivia sterns. Thanks. Bankhair of the central held her first News Conference today. That was after the fed announced the stimulus for graham good end of this fall and rates could rise six months later. The fed announced it would drop yellen said they would look at a broader array of data. This is the formulation of what we will be looking at, which is how far are we, how larger the shortfalls in achieving our goals and what do we expect regressed to be . Those will be the main factors we are looking at. The. S. Stocks fell for first time in three days today. Theine said it would pull military out of crimea and fortify the eastern border with russia. The Security Council said that demilitarization was the best way to deescalate the situation. When the evacuation would took place. Retailer earnings were cast for guess for guests trailed estimates. That is it for now. Back to you. I want to talk about Janet Yellen Phil conference. Joining me is julia coronado, the chief economist at bnp paribas. And in the studio, dan alberts from westwood capital. You heard from janet yellen. What do you think . I think that she had a good sense on what they were telling the market. Which is . That there could be a couple of phases, that we might see rising policy rating sooner than the market would like to see them, but the second matter and i think she was pretty clear about this her major fear is not is whether she does not know if we will get inflation back to the target rate anytime soon. Two percent . Two percent. But she is not going to use that anymore. She is not going to use that anymore. The economy may be going through demographic shift, but as a practical matter this is not a robust employment picture. But that does not matter. Durables in the last round there is nothing doing. In onia coronado, come Janet Yellens press conference. Give me your reaction. She has a great communication style. She gets great stylistic points. She tries to answer questions very clearly. That is all very positive. Then, it is the message, message being the market first reacted to the fed funds forecast that are put out with the statement even before the press conference. You saw the reaction to the dots as we call them. It showed an upward drift relative to the december projection, more so than the market had expected people expected. People were expecting steady as she goes. No change in policy expectations. Here is the difference. It is a little subtle for the market to absorb. Everyone on the committee gets to put in a forecast, willynilly, whatever they are thinking. The actual decision is crafted inside that room with very strong leadership from the chair. Really you want to listen to her and look at that statement. There can be a disconnect s and what thet chair is saying, but the smart money will be on listening to what the chair says, over the mediumterm. Ok, i knew there would be a caveat somewhere inside that. Let me throw something out to you. In listening to the press conference, connecting the dots that is a new game. [laughter] i cant believe we are talking about dots. Com. Oh, sorry. Janet yellen has presided over a press conference in which they announced a 10 billion buyingon in the bond program. So, if you go and then say, ok, 50 billion taking place every month thank you, right. You take five months. Ok, five months now. By december, that is when things are going to get a little bit uncertain and we dont know, because we said the fed funds rate will be one percent in point 25 in 2016, but we dont really know and we will figure that out when we get there. Theres a little bit more going on. Everyone assumed, and certainly assumed last year when the bonds sold off finally that the Interest Rates were going to go to the moon as soon as the fed started to taper, and they have not done that well,2. 77 today theres a lot going on. The bond market and all of that. There is a lot going on. I still do not know if qe think it is a safe statement to say qe has not had a real effect on the economy over the last year. I totally disagree with that. Go ahead, julia coronado. In terms of deleveraging, we had a lot happen in a very orderly way with continued growth. Fed, the record low Interest Rates that eased the debt burdens for households. Record low debt servicing burden, despite having high debt levels. You do not think that is a real economic effect . [indiscernible] consider the housing market. Record lows. Hold on, hold on. So positive . You can pay off your debt at record low Interest Rates. The debt levels are high, but the debt servicing costs, because the majority of households have to refinance thank you. I just wanted to understand what was going on. So, refinancing . Refinancing. Keep in mind there are only 52 million households with mortgages, number one. And number two, only 100 39 of those 52 million cannot refinance. Those 50 2 million cannot refinance. It is a Macro Economic benefit, no doubt. At the end of the day, when you really look at qe, qe3, look back at the charts about bringing into straight down they didnt. On. Old julia, hold on. Hold on. Hold on, julia. Wait, wait, wait. I cant wait. I know. Do you want more of qe . Goahead. Thats right. Exactly. That is a lot lower than three percent. The rates are lower, historically they are dropping. Qe was removed. You dont know that. Ell between 2014 and 2015, which is what they said in the statement today, one percent between those two time post, what do you think happens . What happens to the federal funds rate . If inflation continues to do what i think it is going to do, which is in the absence of qe and the juice she just described, it will stay below two percent and trend downward slightly. If that is going to occur, there will not be any policy rate rises in 2015. If in fact, we see meaningful inflation, and it has to translate through wages ok. Seconds. Give you 10 im sorry. 10. Actually we are on the same page here. I agree. I agree inflation without the qe will see the same momentum and you will have subdued inflation and the fed is not going to raise rates in mid2015 six months after a qa. All of that is ultimately dependent and i do not think they will get the data they are looking for. All able towe were hold hands on this. Julia coronado thomas bnp paribas. Foundinganks to the partner of westwood capital. All right, not on taking stock cleaning up our waterways, especially after superstorm sandy. Bobby kennedy junior has put his support behind a special type of sponge. Thats right, a sponge. You hear more next on taking stock. Petroleumnt british is soon back drilling in the gulf of mexico. The ban on contracts and ruling was lifted last year. The government says that bp is the highest bidder for 24 exploration blocks offered for lease. You may remember the bp rig explosion and spill in the gulf of mexico that haunted deep water in 2010. That disaster also lead to 210 million gallons of oil leaking into the gulf of mexico. One of my next guest says made retyping the environment his mission. The vicenedy junior is president of the waterkeeper alliance. And we are joined i glenn rink. They are both tackling the issue of contaminated water. Thank you both for being here. Tell me what is ad tech . It is an Environmental Technology company. We have the ability with our technology which is called smart much, and it looks at any pretty much any kind of water can, nation. To take away one bacteria or another and more recently heavy metals. It is a really innovative way to go after water contamination. A hightech sponge. Bobby kennedy, when did you come into this kind of technology . We found this in the state of california about nine years ago and we got a billion dollar judgment against the state that requires the state to remove pollutants from the Pacific Coast highways in Northern California into the southern end of california, which was making people sick. Million people in california, swimmers, were sickened from gastrointestinal infections. To makewas in the water that happen . Viruses, back. , oil a, oil, andcteri greece. Storm water is the last frontier of the clean water act. The clean water act said you have to eliminate all pollutants, but the epa originally targeted industry and they targeted sewer treatment plants. Storm water is illegal. You cant do it. People do it anyway because there is no enforcement. Now the epa is turning its attention to it. It is the biggest polluter in coastal waterways. Twain percent of the freshWater Pollution in this country and the only Water Pollution that is continuing to grow. There are 20 thousand beach closures every year in the united states. Always hear about those 80 of those are from storm water. State of california, d. O. T. , caltrans we won that lawsuit. Won that lawsuit. We forced california to clean up their coastal waterways. When youre looking for how do you do this, we found glenns technology. It is a technology you can literally dropped into the storm drain. It flows toward the coast. It picks up all of the pollutants and take them out. A im going to make you do little physical demonstration if you can. Show us how does the sponge actually work. If you can do that and what i would like to know, Bobby Kennedy, while he is doing this, are these expensive . Are these covered by the payout from the state of california . What is the cost involved . Is the lowcost choice. You should talk to glenn about choices. He makes the money. This is the kind of technology this Sponge Technology is this something that in your experience should just be mandated, or is this something that they should not choose, the epa and the states regulating this, should not choose the technology, but they should choose the pollution level. They should say, here is what you have to achieve. Whatever the best Available Technology is. The markets can decide that. Lets see what glenn is doing. What do you have in that apparatus . I took fresh new york city water and contaminated it with oil and diesel fuel. This is the same type of water you will find in a steel mill refinery. The objective here is to clean the water well enough so you can reuse it again, and if it is going into a storm water application, so it is fishable and flammable swimmable. This is just a tabletop demonstration. This is not intended to show you what happens in the field. And much smaller, too, the scale is much smaller. This is a fitted size. As a result this is something that can be used in a variety of locations. Yes, you can use it in basins. We just got a 12 million roger, contract in Nassau County to deal with catch basins. It would be used to go at the end of the pipe, so you would have more concentrated i have got to say, there is the clean water act and the oil is being trapped in the sponge. I want to thank you very much. I will drink that water before we leave. Maybe we well. We will give him a chance to pour it all in. My thanks to glenn rink, and Bobby Kennedy junior. Thank you very much. Thank you,pimm. Coming up next, we will find out how one Company Wants to keep superbugs from spreading. Thats next on taking stock. The centers for Disease Control recently reported an outbreak of infections related to it as copy procedures at a hospital near chicago area in icse topic endoscop procedures at a hospital near chicago. Were talking about cleaning things today. ,oining us is dr. Cheryl pegus the lead independent director at vision sciences. Thank you for being air. Lets start with the medical issue. We were just talking about what happens with storm water if it is contaminated with oil or other toxic chemicals. You have to get rid of it because the water has to be cleaned. What is the issue when it comes to infections . Is it about cleanliness . First of all, contaminated oscopes are the number one source of infections in the medical process. We have a patented technology that puts a barrier around the endoscope. For every patient getting a procedure, there is a clean sheet, so they are never in contact with one that comes into contact with another patient. More importantly, the cleaning of the product is a lot simpler. You take off the sheets, you rinse it, you wash it, you are ready to use it again because you are applying another shealth. We have never had a crosscontamination. Why is this not being more widely adopted . You would think sterol medical devices would be selfevident. I think we are at a point in health care where we are focusing on Patient Safety more than we have in the past. When we look at infection, it is really how do we prevent them . Technology is at the right place and the right time. We can prevent infections from will talk to we companies about how to utilize the technology. What about the doctors . They can be conservative in adopting new technology, especially when they do it in a certain way. 25 2500conducted published studies. We have found that doctors will adopt a procedure. Patients will have better clinical outcomes. This is a financial issue. Hospital infections tossed the health care system. From a hospital for help perspective, just being costeffective, after you focus on Patient Safety, if you can prevent these infections, you prevent the cost to the hospital. Medicare will also ding a hospital if they have hospitalapplied infections. We are making the Technology Available to them. We know that hospitals are being graded on the quality of care now, as mandated by the Affordable Care act. Thank you very much for joining me, dr. Cheryl pegus. At lead independent director vision sciences. Thank you for having me. Sourcing up, i crowd success story. The founders of bombas, next on taking stock. This is taking stock on bloomberg. I am pimm fox. Lets look at todays market moving headlines. Thanks very much. To a big dataning company to bolster its surveillance capabilities. Says ito to staff, sac firm. Elp protect the fedex is cutting its 2014 profit forecast because of all of the grounded flights and delayed truck and train shipments. The company had to cut nearly 1000 ground shipments per day. In jpmorgan will sell its physical commodity mercury a mercuria energy. The sale is scheduled to be completed in the third quarter. And the number of americans who pay for tv through cable, satellite, or Fiber Services filled by a quarter of subscribers last year. It is the first annual decline ever. More consumers are seeking online offerings such as netflix and amazon prime. Those are your top headlines. Back to you, pimm. Thank you very much, olivia sterns. My next guest found that stocks were the number one most requested item in homeless shelters, and they set out to create their own company. Bombas sox was born. For every pair sold, they donate a pair to those in need. Joining us, Randy Goldberg and david heath. Decide to do Something Like this . Across this was from the Salvation Army . Right. Kse Salvation Army said soc were the most requested item in homeless shelters. We looked at the stock sock industry. The industry was pretty complacent. We decided we could build better socks. Years in research and development making bombas. You guys were just sitting around leaving through a book of quotations from Salvation Army, and you said, oh, i want to do something good. I mean, how does the start how does this start . What were you doing before . Set the stage for us . What were you doing when you had this great idea . We Work Together for six years at a media startup company. We shared this pass and passion for startups and entrepreneurship. We always knew we wanted to Work Together. This came across the desk this does not work for urban we saw this press release from major george hood that stocks were the number were the number one most requested item. Were the number one most requested item. Simply tell the people what are these . They coined. Term what they do, for every pair of shoes sold, they donate a pair. Parker is an eyewear company. They donate a pair of eyeglasses to someone in need. We looked at those Business Models and realized they were taking off. We decided, why dont we look at the stock market sock market and see if we can do the same thing for socks. What is it like being in the sock market . I did not think one day i is funin socks, but it to build something new. I looked at your website. It is very catchy, very colorful. You include seven pieces of technology. What are the seven areas you improved . We really start at the toe. At the top of the total, there is a seam. The same is really annoying. We got rid of it area the seam is really annoying. We got rid of it. Ok, no tow seam. And our brand is built around bees. They are our spirit animal. They Work Together to make the world a better place. Hence the latin use of bombas. Cotton,are made of pima and we also Incorporated Technology so that they do not fall down, but they are not too constrictive. We tested 150 different attention levels. Did you have to wear a lots of socks [laughter] no, seriously. Randy and i both you workedhat randy, for nike. You understand these sorts of issues. We took the lowest in and to the highest end the lowest end and the highest end socks. About 11 aese are pair. 11 a pair. And the colors that you have bright orange and grey, black and blue, the distinctive humble logo. O bumblebee youe wanted to keep to what would have, black and gray so they would naturally go to a lot of clothing. When we saw this design trend with athletic wear, athletic sneakers that are incorporating neon, butsocks are but socks are staying the same some others not a lot to coincide with that. And we think color is exciting. What about branching out to you can dothat colors for College Sports team or yes, absolutely. I think you will see a lot of different colors coming onto our website later in the year. Different colors based on College Sports teams, pro sports teams. Make a lot of money by donating one and selling one . Absolutely. Our whole business is set up so we every pair we sell, donate one. Our margins are healthy. How do you end up donating them, but you because you do have an alliance with the Nonprofit Organization . Thats right. We have a partnership with an. Rganization called hanna socks they are our main charity partner. Since you have the socks with the 121, and you saidtoms is doing the said tom is shoes, and you have glasses, when is one going to go for pants . [laughter] no, seriously. Theme thated on a was neutral, that could lend itself to a number of products. Atfuture years, we will look shirts, and hopefully expand into athletic wear. With the same we will sell one, we will donate one. There are lots of reasons why socks are the most requested item at homeless shelters. They are aware through item . Exactly. Well done. Gentlemen, how many have you sold so far . What is the goal . We have sold over 60,000 pair to date. 60,000 pair to date . Onesizefitsall . We have mens, womens, teens and in the next two weeks we will be launching our kids socks. We have. Horrible samples very ad orable samples on hand. Thank you very much for joining us, Randy Goldberg and david heap of bombas. Speak withup next, i the u. K. Supermodel on what it takes to find the next kate moss. That is next on taking stock. All right, this is taking stock on bloomberg. I am pimm my next guest was on her first cover of british vote e in lily cole, thank you for being here. Lets talk about what is impossible first. Impossible is a social network that connects people for free. Peer to peer. How does that work . What kinds of things do you want people to do free . Hopefully just about anything. People can post, we call them wishes. Structure it however they want to say it. People can ask for a vice, a skill set, learn languages, help with her gardening lots of things like that. Products, too. People list things they want to give away for free. The only ground rule is everything is done for free. You can see your neighbors content. The content for people who live near you. You can see your friends content. People who live near you. If im interested in cooking and yoga, i can list wishes to do with those subjects. If i want to connect, ill have to do is connect with that person. I wonder if we can focus on the concept of happens ants. It seems to be the idea that you if something up there, and you see something, you will go ahead and help somebody else. You will do that for them . Yes, the thought process initially was, i am a londoner and i lived in new york for years. In these big interpol in cities, you often do not know your neighbors in these big metropolitan cities, you often do not know your neighbors. Humans are often naturally generous. It can be really easy. I can do that. This is my wish, and hopefully someone sees that and says, yeah, i can do that. Of ironyre a sort there that you your self and your career in the modeling world started because someone just happened to see you, and storm models was created. I think part of the Mission Statement was to be at airports and watch people and connect them because that was where the future models and people in the industry could be found. I never made that connection before, but i do believe in serendipity. Is that what happened though . Someone just saw you on the street . Yeah, in so low in london. What did you say . I was a little skeptical at first. But i check them out and they were a reputable angel. Agency. And storm models what was the basis of that . They were the agency that ads. Ally did the gap i did all of these different films. All of these different junctures in my life. That is not the language i couch it in. There are algorithms and hasht ags. But serendipity naturally plays a part, too. In your description of first being spotted as a younger was the feeling that had to change inside of you to trust this was something you felt ok doing . When you go to a website, you do not necessarily know who was really behind their. You do not have a way of vetting. You cannot physically see them. Does that figure into this . Isyeah, i think it potentially a big obstacle. But part of the reason i want to do it, i think encouraging Greater Trust and greater connection and community between strangers is a really valuable thing to do. For most of the time, people are you can do research. You can meet them. You can be intelligent about how you encounter strangers or you do not see yourself in a difficult situation. I think what may surprise you is how lovely or generous or interesting they can be. You have also done work for the clinton global initiative, the clinton foundation. You are as i mentioned, on the cover of magazines. People see who you are, but they do not really know who you are. How do you rich that gap between what you sense is their perception and what you know really to be what you want to do or who you are in your life . Be more and more authentic as a person, and i think as i have grown up i have become more comfortable stating my opinion and speaking my truth, knowing my truth, speaking my truth. I try to bring that to every situation, whether it is a conversation with you or my relationship with distant friends. And how much that translates to people or my image, obviously, i cant control. I can just do what i can do to be as open as possible. With this website, impossible, you are kind of asking everyone to do the same thing . Investment is a huge in a way, a kind of optimistic idea, to trust one another to cooperate more, to be kinds. So far, it seems to be working. It is great. Having said all this, where does the money come from . Is it just your earnings at your using to set this up . It is a gift economy. The absolute idea it is trying to create. I personally put money into the development. Another is invested into it. So Many Companies invested in different elements. A pr company will give their time, a legal dump and he will do the legal framework. And somehow we launched through goodwill, basically. How many people . 25,000 now. 25,000 . We opened in the u. K. , and every year impossible. Com. Not impossible. Supermodel and founder of impossible. Com. Speak to my will guest about why the lobster industry is clawing its way to new heights. That is next. This is taking stock on bloomberg. I am pimm fox. Have you ever sat down to a nice meal in new york city or anywhere else and wondered where does the lobster on my plate come from . If you have, my next guest to arefor you next guests for you. They distributed to over 140 new york restaurants. Joining me are homarus jordan elkin and Brian Mcgovern. You are the lobster dies. Yes. Jordan, i have to start with you. How did you become the lobster guy . Very random. Eight years ago you were staring out the window . Probably was lunch. You could not get a lobster roll in the town where i was working. What were you doing . Doing retail. Ok. It evolved into something more serious. At a couple trips to maine, and we realized there was a way to make money bringing the lobsters down and selling them to restaurants. You put this , when you putian this together, did you think it would really happen . It is one thing to have a lobster roll for lunch, but to have a business . The next day we drove back down, found a warehouse in queens and found a couple guys to help us Start Building our first system. What does a lobster distributor system involved . What are some of the pieces . I know you got up at what time today, 2 00 a. M. . We got up late today. First are the tanks. We need a place to hold all of the supplies. Our first warehouse, we had 5000 pounds of live lobster. We recently moved because the business grew so much. Now we have tanks that can hold 60,000 pounds at a time. 60,000 pounds . Jordan, you are doing sales of ofmillion, 2 Million Pounds lobster last year. Where are you getting all of this . Is it all from maine . It is all from maine. We are proud of that. You get up at what time in the morning . 2 00, 2 30. Ok, and what happens . The both to the driving. How long is the trip for you . Roundtrip, 10 or 11 hours. What is the lobster situation like . Is it plentiful . Is a lot now, and that is the result of overfishing. Overfishing cod, and that is lobsters biggest creditor. How many votes do you have these you this lobsters . How does it work . Hundreds of votes. Boats. It requires hundreds. Do you like lobster . I do. Jordan, do you like lobster . Did every day. Thanks for joining us, jordan elkin and Brian Mcgovern of homarus. Thanks for taking stock. Live from pier 3 in san francisco, welcome to bloomberg west, where we cover the Global Innovation technology and the future of business. There are questions about whether these Chinese Companies will do enough to protect investors. Broke 1 billion in sales last year. Can digital do enough to save the otherwise sluggish music business . We will get to those in