We are approaching 26 past the hour. It is time for bloomberg to take you on the markets. What do you think we will get here . A pretty breathtaking today rally. Two day rally. If you days after the new year today rally right now two day rally right now. The biggest we have seen since the 19th coming pretty significant reversal from what we saw take place in this fused for days after the new year. In the first few days after the new year. Oil ticking up slightly. We will be back with more Market Makers in just a few. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. You are watching Bloomberg Television. This is Market Makers. There is a massive new development in the drug business and it has to do with dirt. Good could be the answer to fighting bacteria that kill hundreds of thousands of people each year. Dirt could be the answer. A potential new drug that was isolated from new england dirt. Because all they problem that has been troubling doctors for decades. How to fight antibiotic resistant disease is. Diseases. This is fascinating. We have not had a major new antibiotic approved since 1980. It has been 25 years since we have had a new antibiotic compound found. It is hard to track these things down. These companies will go to exotic locales volcanoes, rain forests. They have hired spelunkers to go into caves divers. This was pulled out of somebodys field in maine. The researchers backyard. This new mechanism of discovery that lets them you go and find these compounds, you cant grow them in a lab. We have this new mechanism, you dig up a pile of dirt and produce the antibiotics. They fight other bacteria and can replicate these conditions. They were able to find 10,000 new compounds. 20 potential new antibiotics. The top bet they will try to move forward is really exciting and cool. Who knew . What is the market . It is huge. It is hard to size. Last year, merck paid 8. 4 billion for cubist which makes the last antibiotic discovered in 1980. They gave up on it, cubist acquired this thing in 1997 and they are selling their entire company for close to 10 million. It is a serious. They infect hundreds of thousands of people around the year. It is a Serious Public Health crisis. This new drug is called pexobactin. It will be a few years. It seems to work very well. They infected mice with murs a. They gave them this antibiotic and it wiped the thing out. 100 . Exciting stuff. Mice are not ladies and gentlemen in a hospital. But very exciting and the discovery technique is one of the most fascinating things. Would it be an overstatement to liken this to penicillin . That is to be seen. The discovery technique the Science Behind it this may lead to the new penicillin or Something Like that. This may be a new step forward in really bringing a new generation of antibiotics. One of the fascinating things i saw is this notion from one of the doctors behind the study that it should be once it becomes a real drug and enters the mainstream prescribed broadly because it works so well. The big rub against doctors is they prescribe antibiotics to readily. Because we have not had any new acrobatics, the bacteria have had a chance to develop resistance. This thing has a special it goes after part of the bacterial cell that does not mutate and change very often. The target will stay the same, the same mechanism to kill it and less chance of the bacteria mutating and being able to sneak away from this thing. It is going after a complex lipid structure instead of these proteins. A stable target to go after. Are they saying how long it will take before it becomes a marketable drug . Researchers are saying 56 years. That is pretty standard. Should the fda will be fast tracking this. What does that mean . The fda to say we need this drug. They work a lot more closely with the company and say give us this data, design your study this way. You may not have to wait the 1012 months a normal review will take. We will put you at the front of the line and give you access to our best people and try to help you get this to patients as fast as we can. Really exciting stuff in the world of pharmaceuticals. Drew armstrong of bloomberg. The ces allstars. What gadgets have a chance of breaking out from the Big Electronics show in vegas . That and a whole lot more. Welcome back to Market Makers. The Worlds Largest electronics tradeshow is winding down in vegas. We are talking 2 million square feet of exhibits. That is about the size of 34 football fields crammed with vendors showing off the latest gadgets. What were the highlights . Redstone has been covering these massive events. I was with brad out there yesterday. 34 football fields is massive. I felt like we were at a car show. It was a dreamland. Dissect it for us. Who made the most news . One important thing is the announcement from dish network. We have been waiting for cable channels to be free from the tyranny of the one of cable e 100 cable bundle. Here is the ceo about why this is a big deal. What you know today is espn will be on the service. For the perennials espn is the number one watched network for the millenials. You have billboards all over the place. They were excited to make this announcement. Was there a particular product you saw that will matter . This is the next thing we will all want. It has to be the connected car technology. You have Companies Like her mercedes, hyundai talking about driverless cars. It was not just the Car Companies come the electronics Companies Like qualcomm talking about what role they want to play. Qualcomms impact in the connected car. Smartphone technology at a fast rate. The car gives us a strong position. We think the cars will be connected to each other. This car has wireless charging. The amount of innovation going on in the car borrowing from the phone space is quite large. I want to ask you about technology and cars and biggest. Vegas. The biggest thing missing was uber or lyft. It took 45 minutes to wait for a taxi. Or pay to or 50 250 for a stretch hummer to take you to six hotels. Hisisnt it amazing that vegas has not bought into this yet . The taxi lobby is stronger in biggest than anywhere else in the world. The head to run away with its tail between its legs. It will be a while before a company like uber can come in and solve the transportation problems at ces. In hot pink hummers forever. Ces used to be about consumer devices. This year, heading into a common set of like the heading into it it sounded like it would be all about the internet of things. Did you get a sense of where things are moving forward beyond the connected car . I will give you three examples. An lg smart watch that was running web os that palm invented. It has been revived. It opened the locks on an audi car. A toothbrush connected to your smart phone via bluetooth that tells you how you are doing. One more a french startup, a motorized belt around your waist that loosens when you sit down and titans when you stand up. Tightens when you stand up. I want a cell phone that never runs out of battery. Thats all i want. What do you want eric . I think Battery Technology is an excellent point. Think about the iphone 6. On a good day come at last to all day on a good day, it lasts you all day. It is incredible that the battery cant last any longer. They do keep improving Battery Technology. Then they come up with a whole new range of apps and back in the same problem we started with. Amazing job out there. You must be exhausted. I spend a day in vegas and i was ready to come home. This guy has been crushing it out there. We will have more from brad in the next hour, speaking to the pandora cfo. Talking about having a full plate. American idol to the kardashians windows at Ryan Seacrest get a break wi hen does Ryan Seacrest get a break . Welcome back to Market Makers. You know i was not here yesterday because i spent a quick 24 hours in vegas yesterday at the Consumer Electronics show. Why go that far for 24 hours . I sat down with the ceo of my heart radio and the one and only Ryan Seacrest. Radio digital, consumers. I had to start with social media. Ryan seacrest is absolutely everywhere. He sits there in his radio booth with eight screens in front of him because its all about consumer engagement. They are tweeting snap chatting. What is your favorite social media form of communication . What do you think you picked . Here you go. I like what snapchat is doing right now. That is a great app. Raise your hand if you are sexing right now. Sexting right now. We will make it better. [laughter] are you invested in snapchat . Im not. Only you would have to ask that. I should have. There is Something Interesting to be able to post video or photo knowing it will disappear. Wouldnt you wanted to we want it to go away. I want them to go away immediately. Thats why millenials are using it. Amazing that he would pick snapchat. Hes a big investor. He invested in interest ipinterest. He talked all about the information he was missing while we were sitting there. Isnt it too much . There were talking about jingle ball. How does it help his bottom line when you are getting tweets at you, hey, ryan, you are the man. He said there is no such thing as too much information. Theres never too much. I would be lying if i said it was not exhausting because i have to keep up with all of it. There is so much news and information and things happening. In a strange way, you become addicted to it. In this world, having that cosan information flow becomes slightly addictive. It is hard to keep up with everything. Constant information flow. Just sitting here, we have missed out on a lot. What do you think . I think there is too much information. In terms of big data, think about what radio radio was the original social media platform. Radio djs have been interacting with their listeners. Radio is the original yes and no. You can say letters to the editor. But not in real time. Radio, you are calling in and having a relationship. Think about the businesses that guy is in. And he is still in radio. It is not antiquated because they have to have 45 million listeners a month 245 million listeners a month. You cant think of radio as just radio. Think of it as everywhere. In a time when we are trying to figure out how to greet a deeper emotional connection, better engagement no better place to do it then the radio. We are on the airport for hours every day creating some sort of connection with the audience air for four hours a day. When i go out to a restaurant come if im lucky enough for somebody to say hello, they will come up and say hi quickly and launch into a story. They will be in all of the star and asked me to take a picture awe of the star and ask me to take a picture. They want me to be a companion. It is if you think about it. No . People listen to a huge amount of radio and dont realize it. People actively turn the television on. The radio was on in the car and you dont realize its with you all the time. Im still thinking about what he has to say about social media. Im wondering if 15 years from now Ryan Seacrest will look back on all this time he is spending on social media and wonder where it all went. It is a lot of noise. Im not denying that it works for him. It is clearly working. Nobody is going to win a nobel prize by tweeting or snap chatting. The more you engage, the more fancy have, the more people care. You can broaden out your demographic. The one thing that has changed the most in your radio it is now multimedia. During a radio show, they are broadcasting on tv him and taking pictures. Good as a disc jockey happy face for radio. You have to be the face and the voice. I had to ask about those youngsters these fine stars. Vine stars. I said i dont get these youtube kids. Both of them are huge buyers because they say they are authentic. A lot of them are big influencers now. Advertisers come and grab them. Would you come to my party . They become the new promoter. They are very valuable. They are smart because they dont recommend something they dont really believe in. Will they come and make a living doing it . Absolutely. It is brilliant because it smells and feels and is very authentic. Consumers always look for something that is authentic and real. Why are they so hot . You have a great intuitive feel for something you have been living in. My age, you have to study it. I dont believe that they are selling things they truly love. If cocacola offered me a contract and i was 22, i would say i like coke. Market makers will be back. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Gunman opens fire on the offices of Charlie Hebdo. We are having technical problems i tell you, that is still the big story. Yesterdays shocking attack in paris. Killing 12, wounding 11. An attack on freedom of speech and freedom of expression. That is why it captured the worlds attention. Also a dangerous situation in paris right now. These two suspects have not been arrested. To cause this terrorist attack they are not necessarily acting alone. The city is on edge. There is a manhunt focusing on an area north of paris. It will all change once the suspects are apprehended, but until that happens right, there is so much tension in the air. First, lets take you to the toplevel business stories. Activist investors starwood have renewed starwood star board also urged yahoo to explore the combination with aol and avoid making other major acquisitions. A Commodity Fund manager says that the worst is almost over for oil. Hall says that recovery is likely in the second half of this year. He is notorious for getting paid 100 million bucks in 2009 from citigroup, a bank that got government assistance touring the financial crisis. And spain for largest bank is looking to raise 9 billion in capital. Santander faces a growing challenge from tupper competition and stricter regulations. And a loss for one of britain pro Largest Hedge Fund managers. They have just posted their first annual loss starting in 2003. According to a person familiar with the matter, the company is now trying to sell one of the largest investors is trying to sell a 15 stake in breve and howard. And the Obama Administration is trying to explain who was behind the fbi the hack attack on sony. The fbi director says that they posted Information Online with internet addresses known to be used by the korean government. Ok, we are seeing a rally of almost 300 points on the dow not my favorite measure since the dow is a price weighted average, but it does give us a sense how appetite is returning to risk assets after a brief, but fairly intense selloff in the first days of the new year. I mentioned earlier that the 2day rally was the biggest since december 9. Now is the biggest since december the 18th. Nonetheless, it matters to it amounts to a lot. Without a doubt. We need to go back to the story in paris. As i mentioned a moment ago, the city and the entire country on edge because the police are searching for the two brothers believed to be behind yesterdays massacre at Charlie Hebdo. Hundreds of police and soldiers are patrolling airports museums, public gathering places tourist destinations. There are rampant rumors of shootouts. As you may imagine, it is only rumors. The two suspects are on the run. Lets get some additional perspectives. We have the Bloomberg News bureau chief in paris. Geraldine was there, but as you could see there, the screen was blank. We lost the shot. We will do our best to bring geraldine back. That is the situation. They are still working hard. The dragnet is closing in on these two suspects. They reportedly held up a gas station a little ways north of paris and that is where the manhunt is focusing. Whats we have that shot back up, we will take you to paris but for now we will talk about a different story in europe. Mario draghi has placed his eye on japan. How to deal with the eurozone and the looming problem in greece. What will happen if they leave the euro . I wanted to ask our columnist. What is the score in europe right now . The market expects qe january 22. If they dont, we will see an implosion. An implosion, i love it. What do you mean . The market was down 2 , 3 a few days ago on greek headlines. Imagine if we have all set up for qe january 22 and they dont do it. What about other assets . A lot of this is posting to sovereign debt. I think sovereign debt is priced in, but u. S. Treasurys you can get a massive flight. Everyone is forced to buy more and more just to get underweight. I think that is where the biggest impact will be. That was t days that was two days ago. Why is the market up then . [laughter] it was up because people were worried about the implosion. People should have been worried two days ago. What is the difference . People keep taking this thing every couple months. This volatility we are all trying to explain, it is not inexplicable. It is just part of what happens in the late stage of the cycle. Ok, some have made it clear that mario draghi has effectively painted himself into a corner here, he has to come out with some kind of quantitative easing. The question then is how much . How much firepower, you know, does he have to put into this . He said what he wants. He was the Balance Sheet of 5 billion euros. That will be hard to achieve. His main problem is he has a january 22 meeting and there is a great election on january 23. Can he go and say i am going to european sovereign debt when one of the countries in the european sovereign debt pool may not be in the european sovereign debt pool after this question mark the timing is tricky. If he comes out on january 2 and says, it is coming, i promise it is coming, but we have to get grease out of the way first he cannot bluff his way out this time. He said he would do whatever it takes. He never did it. He cannot repea