Transcripts For BLOOMBERG Bloomberg 20140110

Earning a reputation for being unconventional. I always have things to say. Instead of looking silly, you and talking to myself i will use their ad approach. Hey kids, is it better for your network to be crap or is it better to have a highspeed network . If the way you want to respond to this tactic is say, there is a contact on the device, it is not good. Go for it. We will redefine a stupid, broken, arrogant industry. It is an abbreviation. It means, im tied into a contract. I cannot get out for two years and i will hold that own to my head for the next two years. The cease and desist letter is going out and those kids will be unemployed. This guy is spicy. He sat down with Jon Erlichman yesterday and it was no different. Unlike my normal behavior, this is for everyone. I generally enjoy doing things that cause pain to at t. Like crashing their party and getting kicked out by security. This rebel to the Wireless Industry is doing something right. Here is why tmobile had the best quarter in eight years. Part of the strategy is reimbursing customers. We are forever eliminating early termination fees and moving the industry. What it can mean, a survey was done last week, 40 of families said they would consider t mobile. 78 of customers said they would consider moving to tmobile if they could get termination fees paid. I do not think 78 will come, but it is a revolution. The numbers have been impressive since you watched this plan. No doubt about it. You have been adding a lot of customers. You mentioned at t so i have to talk about it. Last week, ahead, they made their own announcement on the contract side, not that different. What are the differences . They came out with an offer. You called them desperate. Totally desperate. Why would anyone move to a carrier to take a limited plan to the next upgrade Program Nobody wants for 200. What you can do here is what i suggest today. I announced, thank you, at t. I suggested everybody consider our offer. If it does not work out, at t will pay you to go there. It is not competitive. Theirs is a program and ours is cash. A move five lines per line per family and cash paid for your etf. This is important. International roaming, which was a big move. Some wonder how far you will go in terms of the potential price war. Are we in a price war . No question where i will go. 12. 2 million customers. Jumped 3. 6 million. International roaming is up 10 fold. This is only considered a price war to people with 55 margins with people into contracts. We are a profitable company. My commitments to profitable growth, i am pushing it forward. What about reports we will see a tmobile partnership with softbank . I will give you the standard, i cannot comment on that. Here is something to think about. Almost all consolidation of the industry was done for somebody to acquire spectrum. All of the people rumored to like tmobile right now, all they have is spectrum. Not a business. This company, this movement, this revolution and brand will continue, whether we do it alone or consolidation, we will be at the forefront of what happened. This revolution is actually making a dent in the Wireless Industry. All of the carriers are recognizing they can no longer charge anything they want just because they have an amazing network. Verizons sale to tmobile showed marginal improvements do not actually get you anything. Once everybody has realized that and everybody realizes we are all converging, then they have to differentiate themselves. I do not think anyone will have any choice but to get dragged down into a price war. It is winning. The at t party he crashed, we had to ask him about it. I love macklemore and wanted to go see them play. I was surrounded by a sea of humanity that escorted me out. I am sure i would have done something different. It was not a stunt . No, but i will tell you i prominently was displayed in the New York Post right next to Kim Kardashian and the former governor. Ive arrived now. We can watch the full and spicy interview with john online or, you can go to our Award Winning tablet app. Baseballs new hall of famers have been announced. And what actually got them inducted. Gadget wars by getting products into more. We will talk to the incoming ceo. Before we had to break, you have got to look at this. Robots. An app driven toy with a built in camera. You can pilot it by wifi. It may be kind of repeat. It will follow your gestures. Check this out. This is lunch money. We are also streaming live. I am adam johnson. It is the third day of the giant Consumer Electronics show in las vegas. One company you might not expect, making a big product announcement. World wrestling entertainment, wwe. The Company Responsible for providing highbrow Cultural Icons such as the rock and hoke logan, they are now introducing wwe network, an online video channel. The Network Launches february 24. Now, to a company we are more accustomed to seeing. We talk about samsung. It will release its galaxy at five smartphone which may feature an eye scanner for the first time according to the companys executive vice president. Samsung is hoping the set will be able to compete with apples iphones. Another place samsung wants to be, your kitchen. We are talking smart appliances. Sam shows us a plan to do it. Ces has always been about things like tvs and computers. Lately, you could add another category to the list. Kitchen appliances. The home has come to be a world of opportunities for tech companies. One of the big players in Kitchen Appliances right now is samsung. They have ambitious goals. They intend to be the World Largest manufacturer of appliances by 2015, an uphill battle because to do that, they have to increase revenue by 6 billion a year to displace the current market leader. They have got a bunch of new products they are showing here in las vegas. Take a look. This is the refrigerator with a target price of 6,000, not for everybody, but it has an interesting feature. It has buttons on the top of it. One says fridge and once as freezer. You push whichever you want and that becomes a fridge or a freezer for as long as you need it. That water dispenser, still or sparkling. Let me show you what is going on inside this of an. This oven. It is a flex duo of them because of this panel right here. You pull it out and you have got one giant Cooking Department for your biggest turkey. You put it back in and you have two different cooking zones. You might have asparagus up your and 275, and the pork loin here and they are cooking at different temperatures at the same time. Samsung is already a big name, but they are bringing new technology to that category. Here is the usual problem. You want a bigger washing machine, it makes it really awkward to get things out of it. Samsung has made their tubs not so much deeper, but wider. They can still hold more clothes, but super smooth to get them in and out of the machine. How about the big ambition . It is too soon to say, but it was not that long ago when people said, samsung . Smartphones . Another big topic, wearable tech. Qualcomm circuits make a lot of it possible. Here is their ceo. It is a great opportunity. You are seeing everything wants to be connected and run some form of a mobile os. It looks to me like the same strategy we have had for a number of years, we mobile will go into everything. A strong reason why we are excited. Should we be thinking about it as an extension of mobile or a new area . My thinking was, can you carry the momentum you had with mobile . It is been a huge win in these areas. Are they connected . The core business, the things we have been successful, we still have a lot of legs in it. Tablets, wearables, which really will acquire the same technology you have to develop in order to be successful in smartphone space, those look like new adjacent markets. The things you need to be successful there are similar to the mobile space. Everyone is talking about wearables. Tell us your big picture view on the category. Can it stand alone and follow smartphones and tablets as the next big category . In many cases, it is an accessory. Youre looking at the opportunity for all the Cloud Services you run to get more data. In some cases, they do that by pulling more and more information off of your body or off the physical environment you are in. A lot of times, they consolidate the data and send it that through the network through the phone. It looks to me like the phone is moving more and more to be a bigger part of our life through additional opportunities for qualcomm. One of the reasons sales are hitting records at rollsroyce. Baseballs is biggest winners, we will talk about the six new ones and why they got a nod. In sports, were talking baseball and the new hall of fame inductees. Three players were selected to the Baseball Hall of fame. Greg maddux, tom glavine, and frank thomas. This marks the only time since the inaugural 1936 that two pitchers were elected in their first year. Maddux helping the braves win 10 Straight Division titles and win the world series in 1995. Three managers also made their way up to cooperstown. Joe torre, tony la russa, and bobby cox. Some notable names that did not make the cut mike piazza, barry bonds, roger clemens, curt schilling, and mark mcgwire. One man who knows a thing or two about the nfl hall of fame, harvey schiller, the president of the International Hall of fame. He spoke to pimm fox about three manager inductees. All three are well known in the baseball system by everyone. They are all people players love, i think. That is one of the messages that has come through on these people. Theyre the kind of people people want to play for. That is the exciting part. Same thing for bobby cox area bobby cox, baseball managers, like players, move around a lot. Lets talk about greg maddux. You think about someone, the two pitchers that have been brought in in terms of their unbelievable records, and everyone talked about them getting voted in the first time. I know the players do not know until a phone call comes. In each case, they have had sterling records in terms of starting pitchers and they travel around as well but both of them had a home in atlanta. The potential inductees, are ey told the phone will ring between a certain hour and they ought to be home . You ought to be talking to someone like jane who makes the call. You do not get to congratulate from there. There are a lot of stories i have heard about people who do not believe it when it comes. People want to know about players such as bobby bonds. Those are tough decisions for these people. Some writers have elected to not vote for anyone. They feel everyone has been affected by it. My personal opinion is that is a bit unfair. We had one player this year who was two votes short. Two votes short. He had a 74. 8 . We need 75 . As a total number of two people, and there were several who decided not to vote at all, had voted for him, he would be in. That is, you know, you play the game and do your best job and you should be recognized for that. When it gets back to these issues, and you know i have a background with the u. S. Olympic committee, it is never a good thing for anyone. The question is always, how performance is affected by someone using these drugs and other things. It is a continual battle. I leave it up to the writers right now to make that decision. An interesting note about the winners. None of them were ever linked to steroid use. That is been a stern message. If that had not been the case, could piazza have gotten in . I never went public with the rumors because i did not have a shred of evidence. I also heard rumors about frank thomas. I did not have evidence either. If we will just go by i think so, that is not a good case. I looked him in the eye after his name was mentioned. One of my great low lights. The one issue you have to say with regards to clemens is this is a guy put on trial for perjury and was acquitted. He is guilty until proved innocent, am i right . To show you how that would compare, i have been a big proponent of mark mcgwire up until he went on television and admitted to it. His numbers went down after he admitted this publicly. Clemens has been static. Should arod be in the hall of fame . No. He has admittedly done steroids. A difference between admitting and hearsay. Mike piazza has never been connected to steroids except for rumor. Arod admitted it in 2003. What is your take on all of this . It would be difficult for me to vote anybody tied to steroids into the hall of fame. The irony is some of these players, barry bonds was a two time m. V. P. Before he bulked up. The fact was, if you cheated the game, you cheated the game. The difference with bonds is this is a guy put on trial for saying he never knowingly did steroids. He was again a quitted. I am not naive. Barry bonds did steroids. The question is, if we assume we know everything there is a know about barry bonds, how can we make assumptions . You can watch the full interview online at bloomberg. Com tv. Syria is about to lose its chemical weapons. We will show you how after the break. Plus, the multipurpose veggie. It keeps you from slipping on the ice, i kid you not. We are streaming live on bloomberg. Com, your tablet, and your smart phone. I am adam johnson. Todays moving pictures. The people have spoken. They have voted for their favorite entertainers at the 2014 peoples choice awards. Sandra bullock cleaned up, taking home four awards. Justin timberlake dominated the music side. He won three. Ellen degeneres was the most popular daytime tv host. She nabbed working peoples choice awards. Chris christie fired a top aide for allegedly lying to him about the traffic jam at the George Washington bridge. He fired his deputy chief of staff after she apparently failed to disclose evidence of her involvement. I am embarrassed and humiliated. By the conduct of some of the people on my team. There is no doubt in my mind that the conduct they exhibited is completely unacceptable and showed a lack of respect for their appropriate role of government. Creating the traffic jam in new jersey was seen as political payback to the towns mayor for not endorsing Chris Christie in his Reelection Campaign last fall. Janet yellen finally makes the cover of Time Magazine in her only interview since being confirmed as chairman of the federal reserve. Confident the economy will grow possibly by as much as three percent. Getting more people back to work. Mario draghi is Standing Firm on his accommodative monetary policy. The ecb kept its key rate at a record low of one quarter of one percent. The euro dropped after Mario Draghis comments. Syria has finally begun to move its most deadly chemical weapons out of the country after a one week delay. The first shipment left the country tuesday and the u. S. Now have to destroy them. This floating hunk of steel is where weapons of mass destruction go to die. Meet the cape ray. Its mission is the first of its kind, destroy syrias deadly chemical weapons at sea. To do that, it is outfitted with two hydrolysis systems designed last year for field use, not for the high seas. Will neutralize 700 metric tons of deadly weapons, like mustard gas. Getting the chemicals on board will take several steps. Russian trucks will transport weapons to a syrian port. Then norwegian and danish ships will deliver them to the sea, a transfer that would take two days. The biggest danger might not be the toxic chemical weapons, but mother nature. If the seas become unmanageable, we have to shut down production. He currently sits docked in portsmouth, virginia, waiting to be deployed. Adam johnson, bloomberg. In germany, the company is prepared to destroy syrian weapons on their own soil. The United Nations Security Council has set a june 30 deadline to handle all of syrias chemical weapons. Drivers, no speed limits. We will go behind the wheel of a 300 dollars sports car and will show you how to take it to the limit next. Later, you cannot remember the wine you had a few weeks back do not worry. There is an app for that. You can stay connected with your favorite brands. Instead of heading to the beach, some australians are heading to an inflatable maze. Were are talking about the city opera house and the architects of air that built a giant maze. Cool stuff. This is lunch money. We are also streaming live. I am adam johnson. We are going ultraluxury. Rollsroyce topping its annual sales record for the fourth Consecutive Year in 2013. Ryan spoke with a ceo. Enjoy this. You need to be globally, properly balanced. You never see gloom and all Countries Worldwide in this session. Germany did ok. Really good, i must say. Is that because it is no longer around . You are competing with bentley. We are not competing with anybody. We are in a segment far beyond where bentley operates. We are much cheaper. You get driven in a rolls royce. You drive a bentley. The main thing with rolls royce is you are driving and something really rare and highly exclusive. It is unique. Your biggest markets are the United States and china. How big can china be . We have seen last year growth and china, 11 , which was excellent. That is how many cars . A quarter of our worldwide sales come out of the chinese market. That is the same level the United States is. Then comes immediately, so there are three main strong pillars in our business, including luxury. China could be much bigger . Or you think slowdown . We are always building one car less than we could sell. Lets wait and what happens. The interesting thing is the race, how it has been doing. You introduced it in the spring. Started delivering at the end of the year. How are sales going echoplex excellent. We have sold out in june of this year already. It is fantastic. The car brought us a lot of new customers weve never seen before. Very much younger customers who love sports cars in other lives. That is excellent. Also, it opens up a new segment for us. Let talk about the fandom for a second. This starts out half 1 million. What was the most expensive car you sold last year . Far over 1 million. You may even have seen that. It was built for a customer in asia. You cannot in order markets. Everyone is building an suv. Rollsroyce is. We are looking into that. It has been stable in times of economic downturn. This car here is excellent and insulates you completely. You do not feel anything. Suv and rollsroyce would be different from the suvs out there. That is the big question for us. Exactly. We are looking into it in a way that does not fit the brand. Sport and utility. For that reason, we need to find a way, if we are going to do it, that it fits in a brand a proper way. How would a car like that look . This is the process we are in. For the first time ever, for arias bringing a twoday driving school to the u. S. It is awesome, that is what it is like. A ferrari is exciting looking. You get the sound, the handling, but it is even more exciting to drive it. Today, we are at the circuit of americas in austin, texas. We are doing ferrari driving with 18 ferrari owners here to appreciate their cars. The idea of the ferrari driving experience is for people to have fun and learn something more about their car at the same time. The cars are engineered at high levels and driven to this level on the road. We started to teach people how to fit the wheel. We teach them how to shift and downshift and break. We have 15 cars. We are driving the ferrari 458 italia, the california 30, and the f12. If you are driving a ferrari, you want to go fastst. We will probably reach 145 on the straight line. We teach someone to go well before fast. We have clients who come five or six times. When people leave here, the main thing is a greater appreciation for the brand. Driving one of these ferraris on a track on a beautiful day, there is Nothing Better than that. Lets say you are driving on ice. Better bring the beat. An old artist is getting a new lease on life. The exhibit reimagines. Cool stuff. This is lunch money. We are also streaming live on bloomberg. Com, your tablet, and your smartphone. I am adam johnson. The polar vortex brought record low temperatures too many people in the United States. The one way to melt ice, beets. Customers include the long island railroad. Here is an explanation of why beets beat salts. The residue everywhere. We came up with a product made from beets. We found out it freezes at 55 below zero and has positive ions which protect steel and does not attack steel like chloride. If you mix it, it accelerates your salts, which means when it is cold like today, faults do not work. They worked at 20 degrees and nothing below. You can accelerate with more chlorides, or our beet juice, a nonchloride accelerator. You can coat it or make it a liquid, and we spray it and it basically brings the freezing temperature down. You use less of it and it neutralizes corrosion in the salt. You still need chloride. It cuts the chloride down. You do not have to use what . The potassium . All they are doing is cutting sodium out and adding more chloride. We do the exact opposite. We are accelerating it so you will not need as much sodium, which is bad for your table and all of that. You can drink it. That is clever. A former chef contestant found a way to combine fast food with casual dining in his glutenfree restaurant. He explains why the concept is necessary. The way people are eating nowadays is unhealthy. We decided to take the whole model of whole foods and take that point and do organic food, really fresh and wholesome. Seasonal, it has got to be in season . 100 . Salad and things like that. All things people want to eat but they just do not know how to and cannot afford to. We brought it down to a more mass production. We are doing it at 14 check average ballpark. 12 to 14. We come in and get protein and a couple of sides. You are out and full by the time you leave. It is a great model. It is bringing restaurant quality food to the masses. It was always healthy when we were growing up. There was no genetic modification. There were no things being altered here and there. The food was pure. When we grew up, they did not talk about that because it was quality. In the 1970s, they started to play with things and started to cross breed this and that and you created this whole genetically modified organism that are unhealthy. Before you know it, the food source is back to where it is supposed to be, back to nature. There is an app called drink. The cofounder explains how the thing works. It is as simple as pressing the camera button. Please hold it. Taking the image, a photograph of the label. You can rate it. I love it. 3. 5 stars. You can share it to facebook and twitter and click done. Within seconds, it is there. Your phone is tracking your wine life now. We also have winemaker notes. How does it differ from other wine apps . We are really focused on commerce. To the extent you are drinking wine and wish to share it with friends, it is a great app for that. The purchase where the money is, is that . How does it work . We get a marketing fee for the sale of wine, effectively. We launched in q4 and have done 250,000 in sales. In todays mystery meat, what you get when you add jello to a 3d printer . It is real simple. Party time. It is 56 past the hour. Bloomberg television is on the market. Let you caught up on what stocks are doing. It was a mixed session for stocks. The s p ready much flat. The nasdaq actually eat out a gain of about 12. 5 points. Raiders were reacting to minutes out from the latest fomc meeting , when the fed decided to taper. Also reacting to better than expected data on jobs. The adp survey this morning showing that the u. S. Added 238,000 jobs in the month of december. Bitcoin has been gathering a lot of attention. Toryone from regulators investors trying to decide exactly what to make of the currency. Advocates are in washington, lobbying to keep the industry alive. For more on the push to get bitcoin excepted, carter joins me from washington. What are the lobbyists saying . They are making the case that this is a new technology that the United States needs. The old system is outdated and they can bring efficiencies. They are trying to talk past the previous pitfalls of using bitcoin for illicit activities and focus on what it can do for business and consumers. Who is the opposition . Is it all regulators concerned that bitcoin will be used for illicit purposes or are there industries that perceived bitcoin as a threat . It has been mostly regulators who are particularly worried about money laundering, about moving currencies for illicit purposes. The other industries that move money that are potentially threatened by bitcoin, they do not come out of the woodwork yet. I think it could be a while before they do. After all, this is really an embryonic industry. The organization we keep hearing about that is backing bitcoin is the bitcoin foundation. Any sense of who is behind that . Is it all investors trying to get rich on bitcoin or perhaps libertarians who do not want to deal with a central bank . Who is backing bitcoin . The interesting thing is it is a little bit of everything. You have people who are crypto anarchist types, Silicon Valley types, wall street types, some serious hardcore the rotarians and extremely libertarians and extremely talented technologists who brought it on line and modeled after the lennox foundation, the open source operating system, and said that we need something that maintains the integrity of the software protocols but also served as a clearinghouse for information about it. Their lobbying effort, like the currency, is very decentralized. What really has regulators urge is how bitcoin has this anonymity to it. Is there any way to change the technology or make it more accountable . The only thing that connects you with your Bitcoin Wallet is this 35figure code. Is there any way to make it more accountable . There are technologies that Law Enforcement will identify or have identified that can help them keep track of potential illicit activity. One way is to simply map the patterns of these wallets. Some people have even done that and use other sources are people have made their wallets public to connect them with names. Other things that can be done are very simple, which is there are on ramps to the bitcoin economy where you put money in bitcoin and keep track of who those people are, who is swapping their dollars for bitcoins. We have to leave it there. Thank you for joining us