Transcripts For BLOOMBERG Taking Stock With Pimm Fox 2014041

Transcripts For BLOOMBERG Taking Stock With Pimm Fox 20140418

But thank you, mark. Thank you, mark. President obama expressed some doubt over the accord over ukraine. I think there is the possibility, the prospect that diplomacy may deescalate the situation and we may be able to move to what has always been our goal, which is to let the ukrainians make their own decisions about their own lives. The u. S. And its european allies have threatened to ratchet up sanctions against russia if it does not act to calm the situation in Eastern Ukraine. Meanwhile, herbalife is back in the headlines again. It is under investigation by attorney general lisa madigan, who joins a growing group who are looking into complaints. Herbalife responded by saying we are confident in the integrity of our longstanding business and the companys compliance with applicable laws and regulations coco those are the top headlines at this hour. Regulations. Those are the top headlines at this hour. Su keenan, thank you. Back to the ukraine, president obama not the only one speaking out. Secretary of state john kerry met with leaders in geneva. He said they agreed on the first death to deescalate. The first steps to deescalate. The parties all agreed that we must refrain from using violence or intimidation or aggressive accident actions. When we strongly indent all inferences of racism or religious intolerance, including antisemitism. And shortly after the talks in geneva wrapped up, lou berks Ryan Chilcote bloombergs Ryan Chilcote spoke with the Ukrainian Foreign minister. We are committed to be part of this protest through the monitors. We are ready to stop this process immediately. Joining me from washington now its a Bloomberg News reporter. How optimistic is the Obama Administration about this accord . Senior Administration Officials who talked with reporters yesterday ahead of the meeting said they do not have a high degree of confidence that the talks will yield a breakthrough. And i think that message, despite the fact that secretary of state john kerry called the meeting a good days work, that holds true. President obama said we cannot be sure of anything just an hour after the meeting. The ball is in russias court. The question now is how will the u. S. Or ukraine make sure that russia abide by the terms of todays meeting . As you know, Vladimir Putin is insisting that these actions are being taken to protect ethnic speaking russians who were in the eastern part of the country. How is the International Community dealing with what president putin seems to feel is a call to action . That has been one of the punching points of todays meeting. President putin had denied any sort of linkages to the armed groups and has justified military action. How does that fit into what was agreed to in todays meeting . The agreement said osce monitors will be there to oversee whether the terms of the accord are met, but i think in the next couple of days we will have to watch and see how these events unfold. Thank you. From d. C. , the former ambassador to ukraine where he served from 2003of 06. From 2000 306. Thank you for your time tonight. The accord is contingent upon cooperation from russia to help calm the situation in the eastern part of the country. Will that cooperation be forthcoming, in your opinion, given that the u. S. Has accused moscow of inciting the violence . We dont know. Obviously, the accord is a good step, but the key is whether it will be implemented. This tour putin is certainly responsible for the turmoil in Eastern Ukraine. It is his special forces soldiers who are stirring it up. This accord calls for all of the separatists to give up the buildings and installations they have captured from ukraine authorities. We will know in two or three days whether or not the russians and their allies are carrying out the attacks. If they are not carried out, then the accords will be meaningless. There was a veiled threat today from russian president Vladimir Putin in a televised questionandanswer session in moscow. He was asked about rejecting russian speakers in Eastern Ukraine and he responded, we will fight for this. The Federation Council gave him the right to use military force in ukraine and he said, i hope very much i dont have to use it. What do you make of this . He has been saying this for the last six to eight weeks, so it is nothing new. Hopefully, he made that comment in order to disguise his retreat in the agreement in geneva. Alternatively, suppose the agreement is something he has no intention of implementing and again, we will know in a couple of days if he is serious. If the separatists backed by russia or led by russia remain in the Government Installations in Eastern Ukraine, we will know that the putin government was just making the agreement today on good faith. In that case, we will proceed accordingly. Despite the derision in moscow at the sanctions, western sanctions have had a real impact and putin would prefer there not be more western sanctions. The Russian Foreign minister also spoke to reporters today. He said the ukrainians themselves must resolve this crisis. Does a government who believe their leaders are under siege have a responsibility as an ordering its troops to defend their territory to ease tensions through diplomacy . I think the Ukrainian Government right now has shown great restraint. The only reason there is violence in Eastern Ukraine is because of agents sent in by the kremlin. And im certain the authorities in ukraine are happy with the terms of the agreement today, but they want to make sure that those are, in fact, implement it. And again, that is entirely on mr. Putin. Defense secretary chuck hagel said the u. S. Will provide nonlethal military aid to ukraine. But what if russia ignores sanctions and condemnation . Then what happens . Is there a line that if when crossed, would prompt military supplies to ukraine . I agree with senator mccain, that we should has sent lethal military supplies, antitank, and night vision goggles long ago. I suspect if russia ups the ante with its aggression, there will be increased pressure on the Obama Administration just to do just that. You believe some of that legal aid lethal aid should have been sent long ago. What would be be in the conflict if that had happened . Would we be in worse shape . I think we would be in better shape. It is very clear that if mr. Putin wants to, he can seize parts of ukraine. Providing weaponry to the military in ukraine would increase the cost to the kremlin of aggression. Not because this will make the Ukrainian Army able to withstand the russian army. We have about a minute left. What about other countries in the region . What might their strategy be if the geneva accord does not result in any progress and russia makes what the International Committee considers to be expansionist moves . There are three things that the west should be doing. I have already mentioned one, which is to provide literary equipment military equipment. Number two, if the separatists after a few days remain in control of ukrainian installations. And three, there has been some redeployment of nato access to the eastern members, to the pulse baltic states, to poland. It should be much larger if russian aggression continues. The point is to tenant straight to the kremlin that aggression will cost russia dearly. The former ambassador to ukraine joining us from washington. Thank you for your time. Coming up, the 1 billion deal in the agrochemical business. We will tell you about the latest and and a m a deal to sprout up. And i will tell you about a toilet that could help to save one million lives each year. A big merger today in the agrochemical industries. Platform special products is acquiring Agro Solutions in a 1 billion deal. Dan liber is the ceo of platform specialty products. He joins me today. Agro solutions has established itself in a sector where you have a lot of heavyweights, dow chemical is one. How do you position yourself to succeed against rivals with such deep pockets . As you say, this is a niche specialty business that specializes in individual crops, sometimes smaller crops in many, many countries. There are more than 1500 products in more than 100 countries that it participates in, and as a result, we have a defendable position. Walk us through this. What are you attempting to do . We are attempting to make products grow better. At the end of the day, the longterm trend longterm secular trends are that you have a growing population in less arable land, so you need to yield more per acre than you normally do. It enables those crops to grow better than they otherwise would. Agro solutions has a global presence. Talk to us about the reasons you will build your Growth Strategy as uss its strengths and witnesses around the world. We will participate in more than 100 countries around the world, ranging from brazil, which is an important market for us, eastern europe, the bricks if you will, also the u. S. , canada, africa, europe. There is a broad interaction around the world of these products. Agro solutions has been aggressive about adding products to market. More than 100 new offerings a year. Is your acquisition going to accelerate this or slow it down in the pipeline . We hope to accelerate that. We have a special Business Model that we go after and this is an example of this acquisition. This is called asset light touch. Our business practice involves the formulation of chemistry and the people side of business, which means rmb, Product Development r d, Product Development, and we hope to accelerate that business as we add new products to their portfolio. Talk to me about what is happening right now, specifically as you have Economic Indicators that are specifically up. Is timing important to you . Timing is always important. But this is the first major acquisition we have done and is an indication of our strategy by taking a a high cash flow this is and then increasing it with the ability to add to this in the future. Tell me about bill ackmans role. He is a shareholder and we are lucky to have him as an important shareholder. Could there be other acquisitions in the agrochemical sector . We will be doing more acquisitions. We look for Quality Management teams who are looking for a permanent home and we want to provide the permanent home for these management teams, so yes, we went to do more. What type of savings you think you might get from the acquisitions in terms of overlap . There will be some overlap in back office, and such as Human Resource department, i. T. , accounting, which are now being provided as a centralized service at we will undertake to provide. We hope we can save some money in that process. It is a pleasure to meet you. Coming up, when taking stock continues in just a moment, i will speak to a man who has a hightech toilet that does not need to be connected to sewer lines and it runs on solar power. It could help millions around the world. We will be right back. Go zero started out as a nonprofit with a mission to bring power to africa. It was an organization with a big heart, but no money. The day, it is the ninth fastestgrowing committee in america. The ceo explains how he turned a money burning charity into a giant in the solar energy space. Gold zero powers your goal zero powers your cell phones, tablets, and phones. We charge everywhere from the himalayas to disneyland. Our vision is to put power in the hands of every human. When i first joined goal zero i thought, this is the coolest place to work. And then it hit me. Is this a business or a hobby . Because we are spending millions of dollars. We did not know where our products belong. Should we just continue in africa . Do they belong outdoors, emergencies . We didnt know. We were urgently searching for a customer. The earthquake hit in haiti and i called our chairman and said, we have a warehouse full of stuff and these folks in haiti needed more than we do. Lets just donate it. A humanitarian group loaded up 747s and flew the products down to haiti and they said, two weeks later, they called and said, people are taking your power stations and helping people find family members. We will take everything youve got. We thought, wait a second, there might be an opportunity in the emerging markets. That is where we went to focus. We kind of identified costco as the premier play place for people to gear up in case of an emergency. Last year, and goal zero was recognized as the night fastestgrowing business in the country. Ninth fastestgrowing business in the country. I dont think we will be satisfied until we are in every part of the world. We are growing our team to make that happen. Solar energy is also being used in Innovative New ways, including the effort to prevent as many as 1. 5 Million Deaths every year due to a lack of sanitary toilets. My next guest won the first prize at the reinvent the toilet competition sponsored by the bill and Melinda Gates foundation. It is a development of caltechs selfcontained Water Treatment system. He is recently back from installing the toilet in india and joins me in los angeles. Thank you for taking stock and thanks for your time today. Lets start at the beginning. How does this solar powered toilet, which some are calling the toilet of the future, how does it work . Basically what we are doing is, we capture the energy in a solar panel and from that, we use the electricity created to run an electrochemical reactor that will convert the chloride, oxidized it to a bleach like product and that creates the clean water that you can reuse for flushing again. You have a closed loop system. How long did it take from idea to blueprint to manufacture for your design to become a reality and how much does it cost per use per day . A good question. Our commercialization plan, we are now working with a friend partners and starting from our prototype that we have now in the field, and making more industrial scale prototypes. And that will be in the field at the end of 2014, beginning of 2015. We are planning the commercialization with the help of the Gates Foundation for 2015. Why has billing Sanitation Systems in developing countries proven to be so difficult . The infrastructure is very expensive, even in the u. S. Houses are connected on septic tank. It cost them something around 50,000 to get connected to sewers. You can imagine it is a similar cost in developing countries and there are not enough resources for that. A new way of sanitation is needed. How many prototypes are in use right now . Right now, we have three prototypes, two in india, and one in a city in the northwest and another in the southwest. And we have another prototype here in pasadena at our campus at caltech. Are you planning to develop a nextgeneration prototype . Clicks yes, we are yes, we are talking to the peruvian government to eventually have a system in machu picchu, and also in other areas of the world. We are looking to develop the same technology and bringing it for the septic tank replacement, so the u. S. Market. He heads caltechs wasteWater Treatment system that is selfcontained. We appreciate your time tonight. Stay with us. Taking stock on Bloomberg Television continues in just a moment. This is taking stock and im Mark Crumpton in for pimm fox. The get a look at todays market moving headlines. We will go to my colleague, su keenan. Obamacare continues to gain traction. President obama said today the number of people who sign up for insurance reached 8 million during the enrollment time frame. In a White House Press conference, he said the republicans must move beyond the current objections and try to give up trying to repeal the law. Unitedhealth group, the biggest United Health insurer said profits fell 7. 8 . It wasnt hurt by cuts it was hurt by cuts to its Medicare Advantage program. Shares fell to 1 billion. Geb analyst estimates with its firstquarter operating etf and reaffirmed its 2014 forecast. Ge shares are down five percent year to date and little changed on this latest earnings news. Those are the top headlines. Thank you. My next guest is a seventime grammy awardwinning music legend and the lead singer of earth, wind, and fire. His brandnew album hit shelves this week. Philip daly joins me now. Philip bailey joins me now. The current model for Music Distribution now uses multiple platforms. That is not how it was back in the day. You might have to take the literal reel to reel tape and take it to somebody office somebodys offices to get them to hear it. Are there drawbacks to the weights than now . It is now and everyones disposal the moment you make it and record it, because people can copy it to delete a digitally and sell it. It is pretty dicey. It does open itself up, perhaps, to the legality them a because people can download this. And package it and go on the road selling it. And there have been conflicts between originators in content and those who use riffs in their music without crediting the original performers. How widespread was that back in the day and have you personally been affected by this . Back in the day, it was really about pride. Everybody wanted to be original and they didnt want to sound like someone else. Was it really more of an honor system . It really was more of an honor system. If someone brought it to your attention that you are copying a risk a risk from someone

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