A Musical Group at the crossroads of country and gospel. We will find out how they are integrating. Lets get some headlines from carol massar. Thank you so much. Speaking of integrating, mens wearhouse and joseph a bank is integrating. The deal ends a fivemonth takeover battle between the two retailers. They will also do a separate deal to buy another brand and 300 million of its own stock. A billionaire is renewing his attack on the nutrition and Weightloss Company herbalife. He says that they violate direct selling laws. They responded saying that they remain confident in china. Their chinese model is in compliance with regulation. Caesars had a net loss after the largest owner of u. S. Casinos reported losses. They lost 1. 7 billion. Dianne feinstein took to the Senate Floor Today to take on the cia. She accused the agency of improper and possibly criminal actions by searching a special computer network. Chief washington correspondent peter cook talked to senator marco rubio about the accusations. Let me just say that i think that story has two sides. It is more complicated than what is being put out there. At the end of the day, there should be an impartial investigation as to what happened. You may find out from both sides that both sides committed mistakes. Marco rubio. Those are the top headlines. Thank you carol massar. Joining me to talk about caesars and their earnings is isi analyst richard hightower. Can you describe the brief history of what caesars has been and what it has become . It is the Worlds Largest gaming company. Most people are concerned about the size of the debt relevant to the assets. With the most recent transactions, one entity with selling assets to another to generate liquidity to help the first entity pay off its debt service. How do they get so much debt . The company was taken private in 2008 by private equity sponsors. It put 20 million of debt onto the company to take it private. Since then, it has been a question of where operations have gone and what they will be able to do with that that balance. There are all these negative things that happened to gaming during that time. Is caesars in a good position compared to its competitors . I would say that it is not in nearly as good a position because of the exposure that those companies have. Macau in china is the Gaming Capital of the world. It is growing at a much greater rate. Those companies are fortunate to have exposure. Caesars does not have exposure there. That is riding on it and its competitors. Did they miss out on it . Did they not see it coming . They bid for a license several years ago. It turns out they did not bid high enough. What should caesars as a company be doing . They are doing things that they would consider to be value enhancing for certain entities under the Parent Company at the expense of the operating company. The big question is what is going to happen with this operating Company Entity over the next several years . They have to figure out how to take care of this. They can do that in a number of ways. Some are probably too complicated to get into. That complication that you described, does that make it less likely that investors will want to invest their money in caesars . It depends. If the operating Company Entity cannot take care of Balance Sheet and potentially filed for bankruptcy, which is a real possibility because of the high debt burden . Yes. If they have recourse to other assets in the company, it is unclear if they do or not. There are some deeper reason the debt documents. It is a big question right now. Do they need to be more diversified . Most of their exposure is in las vegas. That is 40 of operating cash flow. They have properties and other u. S. Regions. Mostly in Atlantic City and the midwest. Do they need to do something differently to revive their business . I think they are doing everything they possibly can do looking at expansion opportunities around the globe. We do not know if they will get those opportunities were not. They are very bullish about las vegas. It is recovering at a solid pace. What is good for caesars is good for the competition. Certainly. It is a highly competitive market. Do they offer the same kind of amenities that wynn or other groups offer . They are the highest companies in terms of composition of their portfolio. Mgm has some highend properties. Everybody has got highend properties. Mgm and caesar have midtier. Is there any way that caesar could enter the macau market or another market like japan . Macau is off the table. Everybodys competing for japan right now. It is a question of whether gambling will be legalized and we expect a decision within the next 36 months. Then there is a question of licenses. Is it a good stock to own right now . We have a sell rating. We would probably highlight mgm. That is a good way to play the las vegas recovery. There is massmarket exposure. I want to thank you very much. Richard hightower of isi group. Thank you very much. Coming up on taking stock, we will take a look at customize cars. They run an automobile dealership in california. Galpin auto sports will comments next. We have details. Tesla stores in the state of new jersey may soon be forced to close. That comes after the state Vehicle Commission barred automakers from selling directly to customers. It highlights a battle between u. S. Dealerships and tesla. I want to bring in matt miller and from van nuys, california, beau boeckmann. He is the head of galpin ford. It is good to have you with us. Matt, maybe you could describe the importance of this decision in new jersey. It has to do with how you buy or sell an automobile. I think it is another case of overregulation. Tell us what happened. Basically, you are not allowed to buy a car directly from a company in this country. Tesla has been recently flouting those rules and going out and putting stores and showrooms into malls and other places where consumers walk around and look at things. They are selling directly to consumers. Why wouldnt they . Ford and General Motors and every large, major automaker in this country for years has not been able to do that. Dealers need some way to keep their businesses viable. They have politicians create regulation that forces you to deal with a middleman. Wait. Wait. Lets bring in beau boeckmann. If i was elon musk and tesla, i would be tempted to go along with the same model. You get a chance to control the process. I think it would be a tempting model. The laws are set up to protect existing businesses. We have invested our life savings so that manufacturers cannot come in and put us out of business. What you get by controlling the whole process is limiting competition. Among dealerships, we compete to bring the lowest price to the consumer. We operate on extremely thin margins. Typically 1 or 3 . Many dealerships lose money selling a new car to gain a service business. When you do not have that sort of competition, the customers are going to pay more. It would be like saying, what if every ford dealership can price fix . That is bad for consumers. Tesla is approaching the model in the same way. The customer would not have to pay the Delivery Charge. If the customer dealt directly with the manufacturer the Delivery Charge is a passthrough. That is something that they have to pay anyway. The vehicle has to be transported. How many people will go to the factory . I will get my truck built up for. Can i buy it now and drive it home . Not possible. How long does it take them to ship my truck from detroit to new york . Several manufacturers do allow you to pick up the car at the factory. It is possible. Because of the way the current dealership model works, is it possible for there to be new regulations that would allow for tesla to go ahead and sell it directly. That is an exception to the general rule. I was in california. Tesla sells directly to consumers. We welcome the competition. For us, it is more about manufacturing. It is coming after the fact and trying to disrupt our business. We have created an invested in it. This is a brandnew car company. We have not had the same hangups as in other states. Can i just say, to everyone and to you, i have talked to automakers all the time. I cover cars for bloomberg. Big and established Companies Like toyota and ford, they love their Dealership Networks. They want their Dealership Networks to thrive. Without their Dealership Networks, they would not do the kind of business that they are able to do. It is a different story with a company like tesla. That is the case. There may be a time when tesla wants to franchise. Eventually, it could get to that model. You talk about the complexity of handling thousands of customers that we handle on a monthly basis. When you are servicing, renting cars, parts departments, it is a very complicated business that we are in. We may reach the point where tesla says, look, i would rather have an entrepreneur take on the building a facility and service department. We are not just talking about sales, we are talking about servicing the vehicle as well. You need a physical facility and unique need people to work on the cars. That part of the business cannot be done online. Ford count on people to do the business for them. They want people like beau to do it for them. As an american, i should be able to decide whether i buy car from a company that wants to sell it to me or a middleman. What about the idea of you adopting a different selling model. For example, tesla has set up stores in malls and nontraditional locations. Is that an opportunity . Sure. They are doing nothing new. Saturn had actually started doing that with one price model. Now they work through dealerships. The dealer themselves can set the price. There was saturn dealerships that would open up in malls. They were introducing the brand. There may be opportunities in the future. I think it is fascinating. I would love to learn what tesla is doing. If they have things that work, great, lets adopt the method dealership. Would one of those involved installing a starbucks . We have a restaurant at our dealership. We have great food and our own inhouse starbucks. We tried to make it a fun Shopping Experience when people come here. We dont want it to be antagonistic. We have very high customer satisfaction. People do enjoy buying cars if you make it an enjoyable experience for them. I want to thank you both very much. Beau boeckmann is the head of galpin auto. Thank you to matt miller of bloomberg news. Coming up, he created his own business to help people find a nanny, housekeeper, or a cook. Meet the creator of hire society. This is taking stock. If you have ever been in need of a nanny or made, you know it is important to find someone trustworthy. My next guest is a former butler and he has created a placement agency. David is the chief executive of hire society. It is a pleasure. Thank you for being here. Tell me about your personal story. You have had a career in the entertainment business. How did you found hire society. Do you want the short version . Go ahead. You can do whatever you want. My experience of personal service, my father died when he was quite young. My mother wanted to go back to graduate school and become an attorney. That is when i realize the importance of domestic care. It is a necessity. I have always been an entrepreneur. I tend to find myself in unique situations. I was producing nightclub events in college. Then i started working in restaurants. The bottom fell out of the nightclub industry. From there, i got into trading. I was a managing partner. I got a phone call from a friend. He said he had a job for the summer. I would be responsible for the massive estate. He needed help throwing a party for the fourth of july. What was supposed to be a weekend turned out to be a new career for me. I very quickly started realizing the level that people can live that any level of administration necessary to take care of these estates. The art, the domestic staff, the travel coordination. It is an industry. In 2011, 2012, there was no regulation. Now theres regulation for how much you can pay. They have to be licensed and bonded. Give us some examples. You have placed 100 individuals. Give us an example of the wages and salaries. This is not just an hourly thing. It is professional. You think about some of these recordbreaking sales. Who is going to take care of these places . You do not want someone going in. You want somebody who understands how to treat these services and take care of these homes. The level of administration that is necessary. Salaries can range. A base housekeeper with 35 years of experience can make 65,000. Executive housekeepers can make 85,000. Can you make it into a career . Most certainly. The transition can go from nanny to family assistant to personal assistant to managing a single estate to managing multiple estates. Another aspect of this is continuity of services. Things like, is it the same toothpaste brand as the primary residence . You are running a small business. It is like running the worlds most exclusive Boutique Hotel and the client never changes. We will have to have you back in the future. A very interesting business. David youdovin is the chief executive of hire society. Coming up, we will talk about drones. This is taking stock. Lets go to bloombergs matt miller for a look at the headlines. A Congressional Committee is investigating General Motors and a federal safety agency. More than one million compact cars were recalled. The engine can suddenly shut off. Five gm models were defective. It has been linked to 13 deaths. Puerto rico set prices on bonds today after boosting the deal by 500 million. The bonds gained in initial trading. They were cut to junk last month. It is the largest junkrelated offering. Twitter users experienced an outage early today. Users of the social media platform were greeted with a page that said something is technically wrong. There were unexpected complications from a rollout of new features. Service has been restored. A shakeup at disney. Anne sweeney announced that she will exit the company in 2015. She joined disney in 1996. The Disney Channel and abc family were involved. She will pursue a career as a television director. Those are your headlines. Thank you matt miller. There is controversy over the commercial use of drones. Amazon recently demonstrated that a drone could be used to deliver packages. There have been reports that facebook may be interested in using drones to deliver Internet Access from the sky. While the faa is considering rules governing the use of drones, a company at sxsw in austin, texas, demonstrated a completely different kind of drone. It can shoot stun darts at people and deliver a shock of 80,000 volts. The Company Behind this demonstration is called chaotic moon. We have the chief innovation officer here, william hurley. Tell us about this. You finish it for me. Thank you for having me. It is a chaotic unmanned personal intercept drone. We wanted to use sxsw as a platform to raise awareness of how Fast Technology is outpacing regulatory control. Even the things entrepreneurs and investors are doing. This was an opportunity to take something and show how fast it could be made real. It is important for all of us to be paying attention to this important issue. Explain how you created this particular drone and give us some details as to the lexicon. It is a pretty standard hexicopter. We ordered the parts over the internet. It took a short amount of time to get up and running. The important issue is that this is something we need to start paying attention to. People build things but they do not stop to think about the ramifications. We use this as an example to show that you can take something from a videogame and build it for a few thousand dollars in a short amount of time. It is not just of legislators and entrepreneurs, but with the public in general. They will be governed by laws and affected by technology. Explain, how did you test this . We actually have a mannequin and special test darts. We did a threeweek period of testing. People in our Company Works cited to be the one in the video. We had a trial. Jackson is an intern, but we did not take him because of that. He is picked because hes physically superior to most of us geeks at the company. If he is physically superior to most of the geeks, what was the response from the engineers at the company . You have received a lot of publicity. We are excited about it. Our goal is to do Technology Demonstrations to raise Public Awareness of just how far we have come with technology and how easy it is for all manner of things to be created. This is a big attention getter. The next one delivers other technology. We plan to do well planned experiments. Unlike our other projects, we will open doors ensure the code online, but we will not be doing that with this one. Have you received any communication from Law Enforcement officials . That is a great question. We consulted the local Law Enforcement community in our area and nationwide as we started doing the project. Many of them contributed to the Safety Measures that we used when we did the demonstration with jackson. What is your Technology Background . I came out of Apple Research and design. I was named an international genius by the city of amsterdam. I am an engineering geek. I have had a variety of jobs. We do everything from apps for starbucks and whole foods, to software for in car systems. It is the best job ive ever had. Often you see a problem or situation that gets solved by more technology. Is there a way to disable Something Like a hexicopter i can fire the stunned guards . Absolutely. We did this earlier. One of the drones can discharge an emp. There are