Again try to stop me with our mystery guest, all of that and more over todays hour, but first, lets get headlines with bloombergs su keenan. Out after last years hacker attack compromised millions of shoppers, steinhafel at target. The board replaced him as chairman and ceo today. And they are looking for a permanent chief. The cfo is the temporary ceo. Aig says their profit fell, this as claims costs climbed, though profit fell. It beat the estimate of analysts surveyed by bloomberg, and at gm, an executive involved in the faulty ignition switches at decided to retire. He was executive director of Global Vehicle integration, and those are the top headlines. Thanks very much, su keenan. I just returned from a conference taking place at Lincoln Center in new york, and our market makerss host Stephanie Ruhle joins us. She also spent the day there. Give us some of the highlights of your conversation. You had the chance to speak with ill ackman. Ackman. I did just a few moments ago. Bill ackman and i sat down, and for him, it is all about fannie and freddie chugging along and staying in business not just for the big time people but for taxpayers. Think about what they have at stake. Think about what these are for american culture. They should wind down the old fannie and freddie and rebirth them as new fannie and freddie, and they go back to the old business, which is just being a guarantor of mortgages, winding down the business of fixed income arbitrage, which is a business they never should have entered, and working with middleclass borrowers, and if they do that, the taxpayer makes about 400 billion. The taxpayers own about 79. 9 of these companies. And bill ackman is not just here with big ideas. He was at the investment idea conference and a professional. Hedge Fund Managers and others put their best ideas in, and there were Business School students from columbia university. One is with me now. Michael, you got the attention , joel greenblat, bill ackman, and others. What was the big idea . A long fiat chrysler. Tomorrow, a fiveyear plan. It is timely. They have not been doing very well now, have they . They have done quite well. The original fiveyear plan, the thing that people do not recognize the came out in 2010, they could not have foreseen the 2011 european crisis, so obviously, targets were missed, but he has done a great job with chrysler in north america and a great job of growing the maserati business, and i believe that the top line earnings do not fully reflect the total earnings power of the business. Why is that, because fiat was a big guy, but if you look at european auto sales, they suffered, and they do not appear they are going to be getting any better, so where do you see the big opportunity . Fiat has outside exposure, which has been one of the most hit markets, but the reason it happened was because of the complete lack of Credit Availability for a number of years. I think it will drive our recovery in the italian market. Do you think they can make out for alfa romeo like what volkswagen did . They do not have the money or the time alfa romeo . I do not think the targets will be quite to that level. I think what they will do is address a segment of the market, maybe below maserati and above fiat, where they are not currently present, especially in europe, and in that 50,000 to 60,000 range. Idea, goxactly is the long with the common stock, common equity . This is due to exposure due to italy and brazil but also due to the fact that the capital structure is highly inefficient, and with the chrysler acquisition, what they have done in the rearview mirror, looking at the capital structure and a net interest cost of about one billion euros per year. Do you have a price target . 16. 50. Michael, congratulations. The winner of the investment complex conference. All right, back to you. U. S. Attorney general eric holder is signaling that he might be ready to press criminal charges against some egg banks some big banks as they shift away from Previous Department policy at the Justice Department. What do we know so far about this new effort . Well, the interesting thing today is that the attorney general came out in the video posted on the Justice Department website, saying he is overseeing cases that could result in criminal charges for thanks. We have known for couple of weeks now that two banks in particular, Credit Suisse and bnp paribas, were facing Something Like this from prosecutors. It is very rare that the attorney general would come out and talk about the possibility of it with ongoing cases. He did not specifically talk about these two companies. He says he is overseeing. Something i think this underlines is that the Justice Department is starting to feel more comfortable about negotiations they are having behind the scenes with bank regulators. This is to make sure if they charge one of the organizations, the organization will not implode. That has been one of the major issues, so at least some kind of representation right now that they feel like they are getting into a good ways, as these a good place as these negotiations, particularly with Credit Suisse, heat up and become finalized. I went to not only get your i want to not only get your perspective but some additional thoughts. Joining me is our reporter and our Bloomberg View host. What about the past . What is different about the Justice Department approach currently than it was in the past . In the past, we sigh hesitation by the doj to bring a case against a bank, with thoughts that they might implode and that there could be collateral damage, and in the last week, what we have been reporting is that they essentially seem to beginning be getting comfortable with this idea and with doing Something Like this. Whether or not this will end up dealing with a subsidiary, which charging a subsidiary of one of these banks, which could protect the larger institution from much collateral damage, that is one option that is a potential way to go through this, but there definitely is a comfort level, and they are going out into the markets to see how they react to Something Like this. What is behind all of this . Why now . They are getting heat. Who is getting the heat . The Justice Department . The Justice Department, the , for notinistration making referrals for criminal prosecution. There was a video today, and there is no such thing as too big to jail. He said that view was rejected. That is the exact opposite of what he told a Senate JudiciaryCommittee Last year when he testified, and he said that the size of these companies has made it difficult for us to prosecute. Some of these institutions have become too large, and it has an inhibiting effect. It has been a matter of policy and even referenced in speeches, where there is a fear of indicting one of these companies or bringing civil charges that could trigger something, and they have started for a while, to never bring criminal cases against large Financial Institutions of any size. There were some japanese subsidiaries of the royal bank of scotland amah to plead guilty of scotland and ubs to plead guilty to a charge here or there as part of a broader plea agreement, but most of the time, the past 10 years or so, we see one deferred prosecution agreement with another, and we and it is normal for them to go after other Nonfinancial Companies with charges. We see pleas and indictments, what have you, against companies in other industries, not just banks. Phil mattingly, is this political . Is this why the Justice Department is changing . I think to his point, eric holder and his staffers have heard the rage coming at them from Elizabeth Warren and even more broad than that. It is not just liberals. You have heard conservatives talking about it on capitol hill and others. There is frustration from the executive level and the company level, there were no nature charges brought in the wake of no major criminal charges brought in the wake of the financial crisis, so the attorney general has always been aware of this. What is fascinating about this testimony almost more than a year ago, it seems like a complete reversal, and they feel like they are finally getting some cooperation with regulators in a way to do this so there is not a collapse with the company, and this is so you do not have kind of an arthur andersenesque fallout like you had back in the 2000s. I think what the top officials feel like right now is that there is some type of path forward to get this done. I think according to Justice Department officials, they feel it helps from eight future from a future policy perspective as they look at other banks. All right, i want to thank you for joining us, Phil Mattingly from washington, d. C. , and my thanks to Bloomberg News and Bloomberg View. All right, coming up on taking stock, we will introduce you to a Premium Food Delivery service which has the backing of the winklevoss twins of facebook fame, and it is mystery guest monday, and my guest was friends with picasso. This is taking stock on bloomberg. I am pimm fox. The winklevoss brothers, a concept between the start up caviar is simple. Deliver food from highend end restaurants that dont offer delivery. Top restaurants like the new york blue ribbons sushi, and pacific catch. And joining us is the cofounder and chief executive who joins us from San Francisco. Jason, great to have you with us. The twins, people remember them, of course, from facebook fame, where they had a hand in the creation of facebook, and there was a settlement between Mark Zuckerberg and the twins. Tell us about how you came to connect with them and what their relationship is with caviar. Sure thing, yes. Thanks for having me on the show. Last year, we were in the midst of raising our seed capital, and we literally just went on angels receivedlist and emails from someone on the team. It was something interesting, lets talk, so we connected, and the winklevoss twins liked it, and they put in some initial investment, and overtime with the expansion in new york, we started working out of their space, and they have been very supportive of us and have been there when we needed them, and we are glad to have them on as investors. Jason, describe where you started the company. Where did it begin . Was it in washington, d. C. . It was in San Francisco around the summer of 2012, and the cofounders and i were coming off of another company, and we company, and we decided to give it one more shot. This is what we were previously doing. And the idea is that we were working out of the financial district in San Francisco, we were wondering why we could never get any good food delivered to us. So we went off and started talking to the best restaurant in the city. We said, if you guys made the food, and we sent somebody here to pick it up and deliver it for you, is that something you are interested in, and every restaurant we talked to said yes, like we would love this, and low in bold, a few months later, we started caviar with a few restaurants in San Francisco, and since then, we have grown to several markets and have 235 now. Jason, i know you have raised, what, about 2 million so far in seed financing. What makes caviar distinct from other Food Delivery Companies . Yes, so we partner with places that typically do not deliver, and other Food Companies rely on the restaurant to do the delivery, and we manage our own fleet of delivery drivers, so that is something unique. No one else has access to the restaurants we have. We only have premium restaurants and premium food from these restaurants, and we also have gps tracking, highquality photos of every single dish on the menu, so you can actually see what you are about to buy before you order it. If youre ordering it for your office or friends and family, we have group sharing, where you can order for an entire group with two clicks, and actually, we raised 2 million last year in a seed round, and we Just Announced earlier last week that we would raise an additional 13 million, and the whole fund raising has been 50 million to date. The 50 million, give us an idea of the demand for the food. Are some of the most popular items that people want . You have to go back to some of the popular restaurants in San Francisco. We have ikes place. It has been around for several years, the number one rated restaurant and most popular on yelp in San Francisco. There is always a line out the door. People love the deep dish pizzas. In new york, we have the doritos, extremely Popular Mission cantina, ever since they opened, and in another market, people are going crazy, and we are getting a ton of demand for our service in every market we are in. All right, i want to thank you for joining us, raising 15 million for caviar, and he is the cofounder and chief executive, jason. And Wearable Technology that could change the way we use our smartphones. This is taking stock on bloomberg. All right, Wearable Technology. The trend is growing according to research. Smart, Wearable Technology, according to some, and reach of that 8 million in 2014 and more in 2017. Well, one Company Looking to capitalize on this is rufus labs, and its product is a rufus cuff, about 280,000 raised so far from indiegogo, and joining me, gentlemen, great to have you here. The cofounders. I want you to describe what it is about the rufus cuff that you think will attract people. This is such a prominent saying in our world today. Thing in our world today, wearables. What we have designed is the form factor allows for three things that i think are going wrong in that industry, and one of them is a wearable, usable screen size, a screen you can actually use. The other issue with wearables is it is such a small device with a formfactor. This allows us to triple it, and the other thing is it is built to utilize an entire system like you are used to with a smart phone and tablet that has proprietary apps. It is not out of the box. So lets go through the details. What is it, a three inch screen . We have a three inch screen. And the battery life is how long . It is projected to be about two or three days. Two or three days. Yes, not something you have to plug in all of the time but can do quick messages and run for a long time. The idea of Wearable Technology has, of course, attracted Companies Like nike. Right. As well as samsung. They connect directly to their Samsung Android phones. Is it necessary that the wearable device be good for both android and apple systems to succeed . Absolutely. We are connecting to any android or ios device. We are going to use bluetooth, which is a universal technology for communications, so we do not need to be locked into one or the other technology, and we are enabling our device to be able to communicate directly with the smartphone and utilize the data network that the smartphone has access to. What is the estimated cost of Something Like this . Right now now at indiegogo, ranges from up to 300 and some 229 up to 300 and some change, and we expect our pricing to come out for full retail roughly in line with that. Itunes. What about the way to that the weight you are carrying around . The weight, we are at about 75ish grams, and samsung has a competing product that weighs about the same. There is metal around it, so if you think of the physics, it is tiny, and this one little spot that moves around a lot, if we take a surface area and spread it out, it allows us to control it, so the weight is about the same, because of the way we have designed it it fits a lot better. All right, gentlemen, i want to thank you. Keep us uptodate on how the rufus cuff works and people buying it. The cofounders. Coming up next, i will introduce you to an actress on reality tv working on glee and supporting people with disabilities who want to perform. What the women who care event is all about. You will find out, next. This is taking stock on bloomberg. I am pimm fox. I went to go to su keenan in the newsroom. Shares fell today at the Company Reported a 15 drop in net income compared to one year ago for pfizer. The ceo says he has no plan to break up pfizer into separate units. They were vying for astrazeneca. And reducing the percentage of u. S. Adults without health insurance, the lowest point since 2008, now standing at 13. 4 , according to gallup. And the Pew Research Center finds 55 of registered voters disapprove of health care reform. And services picked up in april, with retail and construction businesses reporting gains in orders and sales. Services is the biggest part of the economy. The nonmanufacturing index is now at the highest level in years. Back to you. Thanks very much, su keenan. Now, actress ali stroker has not let a disability hurt her career, even after she became paralyzed, and she became a final last on the glee broadcast, and she is the cochair of women who care luncheon benefiting united Cerebral Palsy of new york city, which is this week, and she joins me now. Thank you very much for being here. Inky for having me. Lets start off by talking about the women who care project and what that is about. Women who care is in its 13th year, and we are honoring women who do extraordinary work in the community, making positive change, and the benefit serves the united Cerebral Palsy in new york city, which is one of new york citys leading nonprofits, and they serve about 14,000 new yorkers living with disabilities. Ok, so that is women who care. Lets step back for a second and share a little bit of your story. As i described, an Automobile Accident led to your paralysis, and you turned this into something that has not been an issue in terms of what you wanted to achieve. Tell us some of your goals and what you wanted to achieve. Well, when i was six years old, i began to sing, and that changed my entire life, because i had something to live for, and i had a purpose, and i had a passion, and i dreamed of performing on stage and being on television, and then a little show called glee came around, and i decided it was going to be my dream and my mission to get on the show, so i did the glee project, which led to glee, and i moved to l a, and i am now doing more television work, and it has been an incredible journey. One of the things about your singing is that in a sense, you had to retrain the way you sing because of your disability. Share with us a little bit. Yes, when i took voice lessons growing up and in college, my teachers had to figure out how to teach me how to breathe differently, but i think singing is a gift, and it is something that is more than just physical, the process, and it is a way for me to express myself, and singing has always been a very happy place for me. As far as being a productive businessperson on the because this is all basically connected to some success in the business world, but with your acting, what do you say to people who also have disabilities who want to make this jump and turn something into a reality . Maybe they are not going to be on glee, but they are able to get a job and move ahead. I think a disability can feel like a challenge, but i found that this limitation has turned into an opportunity and that you can use something that you feel like old you back and use it to holds you back and use it to your advantage, and find people who want to work with you and continue to develop your skill and your craft, because really at the end of the day, whether you are sitting or standing, if you have a talent, it will shine through. The move to los angeles, how has that changed life for you . It has been amazing. The weather has been the weather, of course. All right. I am closer to more opportunities, and i am excited about creating my own show and making more of my dreams a reality, and los angeles is a Perfect Place to do that. Your own show. Tell us about that, and how are you pushing that forward . Are you using the tools of social media . The glee project helped me to build an incredible fan base, and i have such incredible fans that follow me. Hit us an idea of the number of people following you on a regular basis. Thousands of people. Thousands of people. On a regular basis, and that is a gift, and in this day and age having a Strong SocialMedia Presence and Online Presence is really important, and with any kind of thing that i am going to go to pursue now, having the fans is really beneficial. Obviously, you can bring that to the table at a negotiation to show people that you have got the people behind you who are willing to watch what you are doing. As far as access, is there something that you would like to see changed, whether there are rules, regular ands, obstacles that could be practical or commonplace. Access, especially in new york city, the subway. I would love to be able to get on a subway at the closest stop and get off where i need to get off, and unfortunately, the subways are not really accessible yet, and i think that could be in our future. Ok, so transport could be good. Yes. The idea of celebrities, however successful they are, your private conversations, your private interactions are subject to twitter, facebook, and all kinds of eavesdropping, if you will. Yes. What goes through your mind when you hear stories you are having a private interaction, and then it becomes public. That is scary, and that is the world that we live in now, and i think that respecting peoples privacy is a conversation that needs to be had, because even if somebody is not a celebrity, and they have done incredible things on screen or on stage, they still deserve the same kind of privacy, so i hope people do acknowledge that. One of the things i read about, in a sense, you have got a relationship with your wheelchair. In fact, it had a name, correct . Yes. How did that come about . Well, i like to name my wheelchairs because my wheelchair goes everywhere with me, and sometimes when i am frustrated or am having a tough day, having a name for my wheelchair, it makes me smile. It makes me laugh, so this wheelchair happens to have the name little g, which stands for the namelittle goldie, because she has gold rims, and i love this wheelchair. And it serves us well to have you here. Thank you for joining me, the cochair of the women who lunch who care luncheon to benefit united Cerebral Palsy of new york city. Thank you. All right, coming up, we will return to the Investment Conference, and we will be sitting down with the lone female keynote speaker at this years event. And time for mystery guest clue number two. Our mystery guest is in an order is a night in an order that was established by napoleon bonaparte. It is mystery monday, and it is mystery guest, and our producers have given us a clue, who was a friend of the cost so and who was also a night in the order of established by napoleon bonaparte, and lets bring out our mystery guest. And my mystery guest likes his models to tear it all. Bare it all. Great to have you here. Thank you very much for being here. I love the pink pants and the shoes. All right, welcome to taking stock. Talk to us about being a night in the order that was established by napoleon bonaparte. A legion of honor. A legion of honor. Are you from france . Yes, are you a photographer . You must be, and it says you were a friend of pablo because picasso. S do you have an exhibit currently underway in new york . Indeed, yes. And do the photographs, are they blackandwhite photographs . Yes, 95 . 95 are blackandwhite photographs. Oh, boy. Your name, you look very familiar. You have had shows all over the world. Yes, it in new york. In new york. And you are lucien clerque. Clergue. N welcome to taking stock. You are a world famous photographer. I was trained to be a violinist, and we had no money at school, so i took a camera, and that was more easy. And that was easier than being a violinist and less expensive. Yes. When did you realize photography was going to be the thing that consumed you . When i came in 1961 for my show at the moma, and there was the room to see the most famous photographer in the the most famous painting in the world. Thenf you go through that, photography was more important for me. The age of digital photography is upon us, yes . Yes. Do you still take photographs using the film . Yes. Why is that . At my age, i wanted to add something else. To put more in this computer it is full. I did not want to add something else. The idea that photography now because of its digital nature can be reproduced so much, how does that change the idea of a printer that comes from you is singular, there are not that many . The other one is flat. You cannot compare. One is beautiful and deep and dark and the other is flat. Tell us about your current exhibit. It was 60 years ago. It is mostly what we call vintage. I printed 60 years ago when i did not know so much when i was a young kid. But it is the real beginning. You have children in the street, a gypsy, and of course, picasso because i amnude famous for that. You are. You are also famous for exhibiting not only at moma but other museums around the world. I have had a lot of exhibitions. The chicago art institute, paris, helsinki, a show in madrid in a bullring. In a bullring. Yes. It sounds like the first one. I was not authorized to show in cuba. I regret that the most. Not authorized. That was it because some of the models do not have clothing. And as far as the legion of honor is concerned, i mentioned that you are a member of the legion of honor. What was it like to be bestowed with this high award . It is very important. But i have to confess there are two more. Two more . The merits, and i am at the top for art. One was created by de gaulle. Do you get an honor for having a relationship for knowing pablo because so . Icasso . O p pablo when you arepablo picasso, blessed by him, and you receive his spirit. And i have to tell you a secret. He saved my life. How did he do that . He said, you are sick. You should see the doctor. I went to see the doctor the next day, and there was a surgeon who did the surgery, and he said to me, you are a lucky man. It was a question of hours, thanks to pablo because so. Asso i am here with you. Just a question of hours . Not only a painter but maybe a good diagnostician when it comes to health. No regrets. No regrets. In new york, then i will be happy. Are there any regrets . A i want to photograph smiling child in new york and then i will be happy. Are you surprised of the value that collectors are placing on photographs, collecting photography . No, i am not surprised, because photography is an art. 100 . The prince of monaco has paid a lot of money for my prints to buy for his collection, so a lot of museums. A lot of my collection is at harvard, at the university. There are 450 prints. Is there anything that you collect that you could share with us . Oh, yes. What do you collect . Picasso. Paintings . No paintings. They are too much. He prints, etchings and as a photographer, we made a change. A lot of american. What do you say to young photographers who would like one day to reach this level . Trust. Believe in yourself. Remember that jesus since 2000 years is still here. Do the same. Thank you very much for being on, our mystery guest. Thank you so much, and congratulations on your latest exhibit of photography. Thank you very much. Ok, coming up next, we are going to talk to an Investment Firm founder who was at todays Investment Conference. Details, coming up. This is taking stock on bloomberg. I am pimm fox. Earlier today, i was at the Investment Conference that was at the center, and we have a at Lincoln Center in new york city. Stephanie ruhle was also there and she joins us with a special guest. Stephanie . She just got off the stage where she gave her investment ideas. On your firms website, you say they are between 25 and 35 stocks that you say have potential. What are they . Something in the commercial printing space, a specialty company, h. B. Fuller, and a Pharmaceutical Company which makes a pain reliever. These companies, 45 , hp, 21 , 152 on your last stock. Is there still room to go . We think so. Our targets for efi are 60 in 2016. The interesting thing about it is they made an acquisition of a spanish tile company, and that maker did not sell. He didnt make any of the ink. Those machines take up about 225,000 per year. This is between now and 2016. Efi earned 1. 60 last year. Are you not concerned that they would do that . They are a leading innovator right now in that space. This is a huge commercial market for print that is converting analog to digital. It is compelling, and they are very, very focused. Unlike hp, which i would argue is trying to serve many masters. They are very focused on the market. What i like about it, the what do you like about efi . What i like about it, the number one thing is we are at an inflection. There are increased dividends. There is a transformation that is taking place that people really do not get credit for. This can go from 10 in 2010 to 15 . We actually think the margins should be higher. It has never leveraged scale the way it should. This other one is interesting, up a lot. 150. I know. I have to tell you. It is viral, and the case for this drug is so compelling because what they do is they provide up to 72 hours of Surgical Pain relief, which means opioid use is down, side effects are down, total cost of surgery goes down, and the ceo gets telephone calls from doctors who are completely blown away all of the time. It was unheard of that an orthopedic patient gets up and starts walking the day of surgery, and that is what they can be doing. It is the best thing they can do for a better outcome. What is your target on that stock . 250. That is our dream number on 20 shares. We think we can get there. There you go. And i will send it back to you in the studio. Thanks so much. Thanks so much. Market makerss Stephanie Ruhle. Gordon. O all right, thanks for taking stock. I am pimm fox. Good night