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tv   Lunch Money  Bloomberg  February 7, 2014 7:00pm-8:01pm EST

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>> welcome to "lunch money," where we tie together the best stories, interviews, and video in business news. i am adam johnson. take a look at the menu today. companies are hiring, but the question is -- are they doing it fast enough? movies are all about the money and lego has plenty of it. and insider trading. you could send prosecutors after the big fish, you know that if, steve cohen. deepak chopra brings has a listing of used in farewell, jay leno. we dig about with whatever but he is talking about, the
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olympics. every four years, tens of thousands of taurus and hundreds of athletes and millions of viewers all unite in the swill in agony of international competition. plus, how a whole city is grossly unprepared to execute these games. whether it is engineering challenges, or protests of russia's anti-gay laws, host cities, it is true, they have to go through some element of critique. he had of the international olympic committee is putting his best foot forward. >> the sun keeps shining on the game and on the athlete. they will have the best conditions possible for great achievement here in sochi. >> ok. the sun is shining on sochi. it she says things are going smoothly. you might want to actually check twitter. followers of the sochi problem page, all those pictures of shoddy bathroom construction, yellow water, a grass keeper
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spraying grass green, you name it, there is something for it. one of the entries and shows mirrored ceilings in the hockey arena. maybe it is a style of choice by interior designers. we will not hold that against them, but will it be off-base to think this is some kind of security measure? i don't know. all the negative talk about sochi not sitting well with the russian officials. the "wall street journal" reported that deputy prime minister dmitry kozak said "seem to reflect the view held by many russian officials of some western visitors are trying to deliberately sabotaged sochi's big debut out of bias against russia. we have surveillance videos from hotels that shows he will turn on the shower, directing all but the wall, and then leave the room for the whole day." he added there was surveillance during construction and cleaning of sochi, and that must've been what mr. kosak was referencing.
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so there you have it. there is no surveillance going on in hotel rooms or in bathrooms. we are not sure where that came from, but anyone in sochi should know what they're in for. >> the russians have an entirely different view, so i was doubly make the assumption that if you are going to sochi, you will be intercepted. voice and data. and, you know, as much as that kind of rubs an exposed to civil liberties nerve in terms of the security of the games, well, maybe that will write something. >> he would know. that is michael hayden, former head of u.s. national security agency and former head of the cia. he responded to the latest move around the sochi games, the u.s. banning all liquids and gels from carry-ons. >> in circumstances like this, it is hard to define excess, so let's be safe.
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clearly this is a high visibility event, the kind of iconic target terrorists like to go after, so let's be extra cautious. >> ok, so you got security, construction, third issue? russia's anti-gay legislation. the law bans distribution of "propaganda and nontraditional sexual relations to minors," that basically means it is illegal to suggest that homosexual relationships are equal to heterosexual relationship. google making a statement, the search engine posting this rainbow-colored logo. underneath it quoted "the olympic charter saying that every individual must have a possibility of practicing sport without discrimination of any kind." it is not just google taking a stand. at&t joined the human rights campaign to request the ioc sponsors ban the olympics.
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procter & gamble, coca-cola, they have faced this process. a canadian equal rights group is also getting on the fight. ♪ ♪ don't you want me, baby don't you want me, oh ♪ >> getting a lot of buzz online because after all, the olympics are about sports, and sometimes the thrill of it comes with a few extra bucks. >> if you win a gold medal for kazakhstan, you get paid $250,000 in cash. latvia will hand out $193,000 roughly. italy --
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>> look at the u.s. -- >> the u.s., which has a much larger team then kazakhstan, will pay you $25,000, but we know the real money is from endorsements and sponsorships. >> look at the bottom of the chart. >> yeah, the brits do not pay anything out. they get zero. they say it is about the honor of competing for your country. >> honor for sure, the medal has got to be worth something, right? >> a gold medal is mainly silver. if you break it down, it is kind of a shell. current prices -- >> it is gold-plated? >> basically. the gold-medal -- it is worth $635.12. they have to bring it home and show that they won the gold medal to get a payout, at least if you are in kazakhstan. >> your money goes farther in sochi. the ruble 13% against the dollar. hotel prices also down about 7%. coming from europe, very similar picture, the ruble is down about
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14%. even japanese fans are getting a deal. their battered yen still do -- and still commands 5% more at sochi. the dollar took a hit today after the january jobs report. that is coming up next. george clooney does not have to worry about a job. he talks about his latest gig coming up in movies. and we want to point out that the first snow of the year happened in beijing overnight. a blanket of heavy snow on the roads caused travel problems on what is effectively the first day back to work after the long lunar new year's holiday. the snowfall breaks an unusually dry stretch for beijing. hope they had some fun out there. ♪ >> this is "lunch money," on
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bloomberg television, and we are also streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. in nation, and jobs day, another question on u.s. jobs growth. 113,000 new jobs in january, 60,000 less than estimated. unemployment rate falls to 6.6%, the lowest since 2008. economics editor mike mckee explains the fine print. >> the headline number for the establishment survey was low, but the number of people who got jobs in the household survey was high, and the reason the unemployment rate went down is because more people got jobs. not because more people dropped out of the labor force. >> that is the first time we've seen that reversed? >> no, it happens quite
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frequently, but it is the first time in a couple of months that we as in that situation. we have been talking about the dismal reason for unemployment. in this case, it was a good reason. >> is it good enough or bad enough to get the fed to change its taper strategy? pimco's mark kiesel spoke to betty liu. >> the numbers are not so strong that they would be afraid people are moving too fast, but they were strong enough that the fed will be on hold for a while in terms of raising rates. it should be relatively good for the bond market. >> you feel that this allows the fed to stay essentially on autopilot whether monetary policy? >> yeah, basically we think that the fed is going to deemphasize the unemployment rate. the unemployment rate is coming down because people are leaving the workforce. the important part is that the inflation rate is very low. people are not seeing higher wages. companies are issuing debt into the corporate bond market but they are not hiring and spending.
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they are actually buying their stock back. and they are turning out their balance sheet. that is not great for growth. we do not have an economy which is taking off yet, and that allows the fed to be patient. >> perhaps this jobs report plays -- that one of your colleagues, mohamed el-erian, the ceo of pimco, wrote in an op-ed the other day, when he talked about the jobs report, let me refer you a portion of that "financial times" op-ed. he said -- >> would you agree with your ceo on this? >> yes, we would agree. he thinks that what matters most is slack in the labor market and product markets and specifically wages and inflation.
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the fed wants to see higher inflation. there are some parts of the economy that are doing well and some that are not doing well but overall the economy wants to see more jobs, the fed wants more jobs, and we want inflation higher, so that allows the fed to be on hold, which means the employment report is probably less important as inflation going forward. >> as you say, companies want to see more inflation, right, they want to have more pricing power here and be able to raise their prices and improve their margins, so until that happens, where do earnings go? >> well, that is a great point because you're right -- overall, the buddies broadly do not have pricing power, but in fact some do. airlines are raising prices, cable companies are raising prices, you are paying more -- i will bet -- to stay in your hotels when you travel. so the important point is that there are actually pockets of strength in this economy, and
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there are pockets of weakness. there is weakness in iron ore and retailers, the re-strengthen industry and gaming. >> one issue affecting the unemployed -- the expiration of emergency jobless benefits. congress has been haggling over when they extend them. the latest attempt has faltered in the senate. labor secretary tom perez talks about the next steps. >> we will continue to work hard to extend emergency unemployment benefits because we now see over 1.7 million people who have lost that critical lifeline, and are living in crisis. they need at lifeline, and the economy needs that lifeline. it has always been the right thing to do and the smart thing to do, and congress has always acted in a bipartisan fashion to restore these benefits. we are making progress. this report shows, 47 consecutive months of private sector job growth to the tune of 8.5 million jobs. which is essentially at a near
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high, and we need to extend those benefits. >> there is no shortage of jobs for lego figures. coming up in movies, the story behind the toymaker's first feature film, and we will hear from a producer of the new comedy "ride along." ♪ >> it is a big weekend in
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movies. vampires, monuments men, building blocks all hitting the silver screen. we will get to that lego movie in a moment, but first let the talk about the oscar-winning actor, george clooney, taking a turn writing and directing with the world war ii-era film "the monuments men." he and his partner, grant heslov, spoke to charlie rose
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about how this came together. >> if you look at the films we have made over the last few years, and i'm very proud of what we're doing, they are really cynical. i think we are kind of the least cynical people i know. we're really not all that cynical. we should do a happier movie, a movie with a happy ending. and grant goes you know, i read this book, and first of all, the story was amazing. i know a lot about world war ii and i did not know the story. >> i had not heard it either. >> and we read the book, and we said to sony -- listen, would you be interested in making this film? and sony and fox got together and said yes, sure. >> not many people can do that, though. >> we got a little lucky. >> the idea of making a war film, a world war ii film, is something that's because we grew up on these kinds of films. >> it is not "saving private ryan." we wanted to be those films like "kelly's heroes" or "the great escape" or -- we wanted to be -- it made room for, this film
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then, where you can really pack it with those stores like the old movies and get the kind of score that you can whistle when you walk out of the place -- >> a great story that lies on top of a world war conflict. >> sure. >> so that is what happened, that is exactly how -- >> we adapted the book, and then we brought all of the sony executives to my house in como, and we put them out on this gazebo and spent two days, grant and i, acting out the entire script for them, and we went on at some great and they said ok, you're green lit, go make a movie. >> the point is, you have got to get the executives drunk and then they greenlight the film. >> great story. you assume that clooney had a pretty big budget, right? >> we do most of our sales for not much more than scale. we keep the price way down in order to give -- we are making films that are challenging to get made. it was hard to get "good night, and good luck" made. it was hard to get "michael clayton" made. you have got to keep the budget
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way down in order to do it. if you're going to do it, you have to go to these people and say listen, i am not taking any money, we will give you some, but we will give you the backend, and if the movie makes money, we will share it. >> and we will have a good time. >> you can catch the full interview on "charlie rose" at 8:00 p.m. and 10:00 p.m. here on bloomberg television. another filmmaker that does not need a big hit to get a film picked? will packer. his latest is called "ride along," and it has been at the theater longest since last year's "gravity" -- >> films may be made for huge sums of money because they need to be expensive, have skull, visual effects, sci-fi, but every film does not need that, and i think the name of the game obviously is profitability and making money, and so what i'm trying to do, and the model that
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i have been fortunate that i have had success with this to make films that have an audience, that know what their audience is, and that satisfies that audience, and do so without having to have all the trappings that huge, mega budget movies have. if you make a movie for $100 million, you have got to figure it has got to cross $400 million, $500 million worldwide to be successful by the time you look at what was spent on it. my film, which was in the $20's, now we crossed $93 million in the first three weeks, it is hugely successful in its own way. so i prefer to look at that kind of a model, and i like to have proportionate success, and i think that's that is what is making hollywood pay attention. >> you know who has got plenty of money to make a film? lego. the 80-year-old danish toy company. lego is hesitant to present into movies, and felix gillette explains why to erik schatzker. >> some of the humor in the
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movie is geared more toward teenagers, and little more edgy than lego wanted. there was some lego figure kissing in the movie at some point, but then they said no, we don't want that, so they took that out. very scandalous -- >> a lego love scene? >> exactly. so they cut that, then batman is in one of the -- he is one of the main characters, played by will arnett. he is basically this very selfish, jerky version of batman. and it is geared toward teenagers and adults, so it is very funny. and of course they have incredible brand awareness in asia, europe, all across the world. >> what do you know about the way revenue and profit are being distributed between warner and lego? >> basically lego kept all the merchandising rights to the movie. but essentially they licensed out the name -- >> so the upside flows mainly to warner. >> yeah, i think a lot of it.
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and again, it took them a huge amount -- sort of the romancing of lego took a really long time. i talked to the director -- producer of the movie, dan lin, and he wanted to have legoland, he went to the lego factory, he went to the lego museum, everything, basically, they went to lego competitions, i mean, they did everything basically to convince lego that they were immersed in the culture and they would be good stewards of the lego name. and i think both sides are pretty happy with it. >> lego is still owned by the family, the original founder, -- well, leno has not been out as long as lego. after 22 years, he is finally saying farewell to the "tonight show." we will see what is next for the late-night show coming up later in tv. plus, what comes next for matthew martoma? could steve cohen be worried? that is the question on wall street.
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♪ >> turkey's outlook has been changed to negative from stable at s&p. they are saying a risk of a hard landing in turkey.
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gdp growth is 1% in 2014 to 2015. they did the average gdp growth around 3.4% in 2015, now about 2.2%. i went to get you caught up on the market here as they are trading. take a look at where you see the dow, the s&p, and the nasdaq, all trading positively, even after you have that negative -- or less than expected jobs, the s&p .8%. >> this is "lunch money," on
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bloomberg television, and we are streaming live on bloomberg.com, your tablet, and your phone. i am adam johnson. today's moving pictures now where the video is the story. talk about the e.u. from a top diplomat. cursing at the e.u. for its portion of the ukraine crisis. the leaked recording of the phone call adds to the tension between the west and moscow. and what started as a useful protest over higher transportation fares in brazil ended in chaos. demonstrators in rio de janeiro cause the station be close.
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a fare hike was reversed following similar nationwide protest in brazil. let's see what happens this time. and play ball, forget the goal, forget the snow, arizona spring training is underway. the diamondbacks are the first to open campus here. they're getting ready to prepare for games in australia in late march. they will open the baseball 2014 season. and in wall street, the verdict has been announced. the former sac manager matthew martoma found guilty in the most lucrative insiders trading scam ever. >> it basically came down to the allegation that martoma over a period of a year-and-a-half, courted to doctors who are involved in a trial of alzheimer's drugs being tested by two pharmaceutical companies. this is a drug that had a lot of potential, the market was very interested in finding out whether it was going to succeed. the government accused martoma
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of essentially corrupting to doctors, one particular was involved in the trial, getting details of the drug trial results before anyone else, and then making very lucrative trades on behalf of his hedge fund, sac capital. >> it is the seventh conviction in the probe of sac and steve cohen, the one they really wanted. >> the government never expected martoma's case to go to trial. they felt that he would let them bring them to his former boss, stephen cohen, and martoma has baffled everyone on pretty much all sides by refusing to do that. >> now that martoma has been found guilty, could he still flip? >> his leverage will depend on how much he has. if he does not have are a much, if there was a lot of insulation
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between him and the people that the government are after, then he may not have that much leverage, but i think is leverage remains about the same. it is that the government's leverage has now increased because he cannot roll the dice and say well, let's wait and see, maybe i will get acquitted. if i get acquitted, i can have my cake and eat it too. now he knows he will either be going to jail or he is making a deal. he may have to go to jail and also make a deal for a reduced sentence because the government is probably not going to give him a walk unless he can provide them with a massive amount of information about very important people. the rule in america is always commit crimes with people more important than you are so you can turn them in and they cannot turn you in. the problem, of course, is that when the government has a sword to your throat, they not only want you to sing, but sometimes they want you to compose, and they put pressure on you saying no, that is not enough, that is not enough, you have to give us more. and the pressure then leads to people to tell stories that may
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be exaggerated or untrue. so juries tend to look with some skepticism on bought witnesses, but if the bought witnesses have corroboration, and if there is a pattern, then the jury tends to believe them. my advice for the defendant today is get yourself a very good appellate lawyer, one who the government fears, so that either you win the appeal or if you don't then you have to make a deal, you get a better deal having a good appellate lawyer than you would if you had somebody the government was not fearful of. >> mr. martoma faces a maximum sentence of 45 years. it could be a good time for mr. martoma to check out the teaches of mind-body guru deepak chopra. plus, leno says goodbye. we will look at his star-studded sendoff later in tv. ♪ >> this is "lunch money," on
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bloomberg television, and we are also streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. wildcard -- we look at the world according to mind-body pioneer and physician deepak chopra. we decide to ask them how our collective you about health care seems to be changing. >> the consciousness is changing in the world. it is not ok to hurt people, it is not ok to destroy their
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health, health reform is not health reform -- it is insurance reform as we look at it. true health reform will come when we take responsibility individually and collectively to create better well-being for ourselves. >> good point. so how will the shifting attitude actually impacts technology? >> i am wearing this watch right now, so if you take this coming you see five sensors, and one of the sensors monitors heart rate. and then the balance between the sympathetic and parasympathetic nervous system. basic metabolic rate -- >> will we all be wearing those in five years? >> oh, yes because bio regulation is the next frontier through technology. there are algorithms with all these things that even tell you how much you slept, how much time you slept in deep sleep,
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light sleep, dream phase, even though this is not monitoring your brain waves, it is creating out rhythmic connections within other activities in your body. so technology is the future, and biotechnology that helps you monitor what is happening in your body is the frontier, and this technology, this information can be picked up by an iphone or any handheld device, instantly transmitted to a simple computer with instant interpretation, and what you might want to do to change your behavior. >> dr. chopra is now doing a six-part interactive series on aging. this is on grandparents.com. explains why people going on the site are different from the previous generation. >> the baby boomers were of a different mindset. they did not spend money that they had not earned to buy things they did not need to impress people that they did not like. therefore they were never
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responsible for what we call the economic crisis. there was a zeitgeist that said spend within your means, live within your means. the new generation cannot do that. they do not know how to do that, so they are coming home, and it is a pleasure to support them, but it is also tiring, as you say, the program is "taking stock," we should be taking stock of our lives. the quality of our lives is more important than anything else. you have a generation right now -- you have a mindset right now that is totally distracted. what most people do not understand is that multitasking is the one thing that gets worse with practice. and it also destroys your brain. it has the same affect as some of the addictive drugs because it is an addiction. you are on twitter, you are checking your e-mail, you're speaking to me at the same time, in reality you are not doing
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anything. that is why through this program, we are actually teaching people how to be mindful, how to enjoy life, how to change the biological markers of aging because as i said, there is no science, epigenetics, which says your thoughts, feelings, personal relationships, the attitude you have towards aging, all of this actually regulates genetic activity. it is gene expression the changes. see you can have two twins that are born with exactly the same identical genes, look at them 25 years later, and one will have a healthy genomic expression, one will have an unhealthy genome expression. one could die of heart disease, the other can live 50 years longer. this is something that we have the capacity now to teach online to people, create a global community first, starting with the united states, of well-being.
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>> the global community obviously key in trying to fight disease. the organization for cancer research uk's trying to fight cancer with a new app, believe it or not, and the power of the brain. caroline reports. >> the way that a lot of research is going now is projects for civic, gathering large amounts of data. some can be analyzed with a computer. you can get programs to analyze that kind of data, but a lot of things you need a human eye and the human brain. >> there is one group ready adept to sorting patterns in data -- gamers. >> that is where a game like ours come in because people are playing a game, a good, fun game, but it will be a good gaming experience. but you also are analyzing it and we will turn it into research later. >> games the space is a mobile app where players embark on a space adventure.
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at the same time, they are spotting errors in the dna of cancer patients. >> we have a limited number of scientists, but what we thought we did do is get thousands of people to play the game, analyze the data -- >> is it going to be on the tube, on our way to work? >> basically it is something you can do in your downtime if we can get enough people using the same data again and again, a very large scale, this could really work. >> players of online games found in three weeks something researchers have been working on for 13 years. it might look like tetris, but players are actually working on aligning dna code to help understand genetic diseases. >> this mapping is actually the bit where i am playing my part as a gamer, so now i am -- >> the graphics are fantastic on this. it looks like i have been destroyed.
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i am engaging more in one go. that is pretty cool. >> boy, that is cool. coming up, as you know, jay leno is leaving the "tonight show," we will talk about what is next both for him and for the tonight show. "lunch money" will be right back. ♪ regretfully they tell me, but
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firmly they compel me to say goodbye to you ♪ >> all right, so why on earth is little leaving, right? "surveillance" team talked about it with bloomberg's survey analysts. >> why are they pushing them off? he is still number one, but they're doing it to get younger -- >> we have entertainment reporter stephen roach to help us out. >> i grew up in hollywood. we were hooked on johnny carson, ed mcmahon because there was nothing to do late at night. this new generation has a zillion things to do late at
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night. are they really going to watch these prime time talk shows? >> the overall audience is smaller, but there is still a core audience and it is very dedicated. >> who are they? >> they have been skewing much older. you look at david letterman, leno, all of the networks are trying to bring in a younger audience by going at little bit younger, and that is one of the big reasons you force-out the number one show a late night, which is the jay leno show, who would do that from a business standpoint? >> younger people are watching fallon on their mobile devices whenever they want. i consume jimmy fallon content in the middle of the day. >> that is the point. >> for our older audience, which is steve and me, why is mr. fallon going to take over jay leno? >> he is a musical talent, he is very relevant, he makes -- i mean -- >> tom, you used to be relevant
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-- >> ouch! >> here is a little more from jay leno in today's mystery meat. >> ladies and gentlemen, jack black! >> ♪ so long, farewell, auf wiedersehen, goodbye if fallon tanks, you will be back here next year ♪ >> this has been the greatest time of my life. >> ♪ there is a sad sort of clanging from the clock in the hall and the birds in the steeple, too, and all of the executives that run nbc are popping in to say you are through ♪ >> ♪ you're through you're through ♪ >> ♪ regretfully they tell me, ♪ >> it is 56 past the hour,
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which means bloomberg television is on the markets. let's get you caught up on the market action. we saw gains even on a week job report. the s&p up 23 points. the dow up 165.
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1.7%, a bigained gain. ending the week positive, up 0.8%. that is thanks to today's gain. this morning on in the loop, betty liu got reaction from the white house. she asked labor secretary tom get tof congress will the effort to extend job benefits. >> we see over 1.7 million people who have lost that critical lifeline. they need that lifeline. >> the bond market got rattled after the jobs report. you will see the bond action here with a two-year yield down 0.2%.
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30 year yield gaining a little bit. a fund manager at pimco weighed in on what the report means. >> numbers were not so strong that they would cause people to be concerned about the fed moving too fast. they were strong enough where we have good growth. not great growth. holdse that it will be on for a while in terms of raising rates. it should be relatively good for the bond market. >> and a report by citigroup stockinvestors shifted funds into bonds this week. they take money out of emerging-market stocks. for the 15th straight week. down 7.2% over the last three months. in of the emerging markets the spotlight is turkey.
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the most important in the markets, the outlook was cut to negative by s&p. s&p says there is a growing risk of a quote hard economic landing. turkey raised its benchmark rates last week. 10% -- s&p is the only one of three ratings firms that does not consider the debt investment grade. speculation that the fed may not taper the bond buying program as much as expected. as far as individual stocks go, shares of linkedin fell today. isy warned that growth slowing down. they are looking to workers
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overseas to add more to the site . and more mobile features. google, the company that started out as an internet search engine, it went public about a decade ago. it is now the second most viable company in the world. apple is still the biggest company in the world. billion -- four c-suite $465llion is the value -- is the value. .
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