tv In the Loop With Betty Liu Bloomberg May 8, 2014 8:00am-10:01am EDT
will have a rare interview. i spoke with him earlier this week in las vegas. he did not make it to the top of the billionaires world by being a wallflower. he puts it all on display in our conversation. >> when you ask me a question, i try to be honest. how am i able to be honest? i flunked. diplomacy 101. >> you will hear him be honest for the next two hours. he will mouth off on everything from why he hates online gambling to what he really thinks of those other casino guys and how chinese gamblers are putting money into his pocket, money he is using to put a republican in the white house. it's exclusively here on bloomberg television. first, here is look at our tech headlines. headlines. cut 17,000 jobs
-- 7000 jobs. continues in media with at&t in talks to buy satellite television company direct tv. regulators could have problem's with the deal for antitrust reasons. toyota says earnings will fall from last years record and the reason will be growing competition in the u.s. and weaker job -- demand in japan and a stronger yen. in washington, the $45 billion comcast -- time warner you will once again come under congressional scrutiny as executives from america's number one and number two cable operators make their case for the merger today. we have a preview. they's hearing is not first. we had one last month so what will be different this time around? >> last month's hearing was before the senate judiciary committee. today's is before the house judiciary panel and expected to cover much of the same ground. we are still talking about the
same antitrust competition concerns and the same cost to consumer concerns. comcast and time warner cable even submitted the same exact joint prepared testimony they delivered last month and once again, we can expect them to say the deal will extend comcast commitment to serve the public interest to millions of additional consumers and businesses with no risk of harm to competition or the public interest. there are a few differences this time around. the comcast executive vice president will be joined by time warner cable chairman and ceo robert marcus. he was not at the last month hearing. another big difference is netflix has since come out against the merger. it is one of the few tech companies to do so. netflix ceo reed hastings said the deal would create a single company with anti-competitive leverage over the broadband /internet market. netflix will not have a seat at
the hearing today. cogent communications will be there to speak their part. the opposition will be well represented. >> what power to the lawmakers have over this deal? actually, this is about public opinion. the green light will have to come from the department of justice and the federal communications commission. the consensus seems to be that the deal will in fact go through. lawmakers are attempting to ask questions on behalf of their constituents. will this raise cable bills is the big concern and the questions they will raise will give regulators an idea of the political pressures they might face and will evolve some sense of the kinds of restrictions they might tack on to the approval of a deal. >> thank you very much.
and shaking this hour -- barclays ceo anthony jang chen's -- jenkins is cutting 7000 jobs at barclays which is about 1/4 of their total workforce. they had a 49% drop in profits and he wants to reduce their dependence on fixed income usually their biggest source of income. >> the essence of this is about focus. that's true for the whole bank, not just the investment bank. we are focusing where we can compete successfully. the parts of the business we are going to focusing on are the much less capital intensive businesses. that is why we can free up the capital in the way i have described, run the bank with less capital, and deliver high returns for our shareholders. is very this strategy compelling in the new world we find ourselves in. isalso moving and shaking
sheldon adelson, the ceo of las vegas sands. m exclusive interview, the world's 11th richest man says he will do whatever it takes to ban online gambling in the u.s.. he is the son of a boston cab driver and he says he knows up to be poort is like and he says the poor big exploit it says he does not want that happening by giving them online access to gaming. here is how he put it -- >> why don't we legalize prostitution? it's happening all over the place anyway. why don't we legalize [indiscernible] wherever we can control it, we should control it. those kinds of things, sin. the sin activity should be controlled. i am in the business. i am the largest company. i am larger than all the other gaming companies combined. in the united states.
to recommend to the government that this is not the right way to encourage people to gamble. here in the land based casinos, we are required to have the dealers shuffle the cards a certain way. how do you do that on the internet? toe, we are not supposed allow underage people to gamble. how do you do that on the internet? that as no technology kid can get a hold of. >> maybe the regulations have to catch up with the growth of the market? >> there is nothing to regulate. i am regulated in four different jurisdictions. i don't know of one regulation that would apply to internet gaming. >> maybe in the future -- >> and the future, we will look at it. reason or any
compelling reason to put a casino in everybody's pocket. collegee, of age, students that owe plenty of ,oney, unfortunate people working-class people, middle-class people that will be easily exploited and easily incentivized to go on the internet and gamble. for what? >> your detractors say the people we have seen so far go online gambling are not visiting regular physical casinos. >> because they are too poor to do that. one. they do not live near >> really? there is no location in the united states that is more than 200 miles from a casino. >> or, maybe it is too expensive for them to go into the physical
casino. why not offer them, if they want to do this, why not offer them an opportunity to be able to go online and be able to gamble? >who's to say that is exploitation? >> i'm saying it and i'm the biggest guy in the industry. >> isn't that getting into a nanny state? >> not at all. tommy, what is the compelling reason to do so? >> i think i just explained why. >> >> no, you didn't. if you cannot afford to come to a beautiful property like yours and las vegas but you still want to be able to gamble, isn't there an option? everything else is going online. shouldn't there be an option to do that online? >> no, because it's too widespread. it exploits too many people that cannot afford it. .they should not be doing it said, went tos i the horse races and the daytime
and the dog races at night. why should poor people who cannot afford to lose that kind of money be tempted with that kind of activity? gaming is a form of entertainment. i am saying, coming from the business, i want to make money from those who can afford it. i cannot tell over the internet who is underage. i cannot tell who has got financial difficulties. who is not gaming responsibly. i cannot tell if money is being laundered. in the casino i can tell. >> how much are you willing to spend to stop online gaming? >> whatever it takes. >> what does that mean? >> whatever it takes -- it takes $100 i will spend $100. >> how much are you spending so far? are you protecting your own land-based property? >> no, that level of the market is not what might -- what my
properties are about. you think bringing in unfortunate people who can be exploited will help? >> do you gamble at all? >> i am probably the biggest gambler in the world. i said i don't gamble. i may take $500 with me when i go somewhere if i know there is a casino there and take a couple of hours and enjoyed playing. who is covering those bets being made? i am. that set $1 million per hand. those guys betting $1 million or $10,000 per hand are not playing on the internet. >> that is true. >> yes, that's not my market. >> but you never know if that market might grow to something like that. >> i know. it's not going to go. i know human nature and i know
people are not going to play on the internet. they don't want to do that. >> do you play blackjack or poker? >> i play blackjack. >> are you good? >> no, i'm not good. >> he is ambling a different kind. online gambler is not the only issue he is willing to throw $100 million at. up next, how he will put a republican in the white house. plus, another big deal may shake up the pay-tv industry. at&t is going after directv. stay "in the loop." ♪
>> billionaire casino mac net sheldon adelson is one of the men in the world and puts his money where his political will is. he is one of the most powerful political republican donors putting $100 million into the presidential election back in 2012. with me this morning his fellow republican donor ed connor who
worked alongside mitt romney and is the author of the bustling took," unintended consequences about the u.s. economy. i'm also joined by another friend of matt romney the chief policy advisor to him and recently, sheldon adelson held a primary at the venetian in las vegas with four potential candidates vying for his money. thee going to be determinant as to who gets into the white house on the republican side? betty. morning, i don't know that he will be the determinant but it's pretty clear that he is interested in picking a winner and that's what this is about. i clearly think he will play in the 2015 election. the degree of magnitude may be up for debate but i think he definitely wants to have a voice. >> those four who went to las , of the four, who do you
think he would back? >> i think he could back any of the candidates. he would probably love to back jeb bush because he would get a high share of the spanish vote -- the hispanic vote. little tarsie is a from the bridge but those two were the strongest candidates going in. whenthough christi flubbed he called the west bank occupied territory which is something sheldon adelson does not agree with. >> absolutely. has to show he wants it and will fight for it because it's a grueling process. you have to really get in there and do it every day and do it willingly and eagerly and he has not demonstrated that. -- are noth guys tarnished -- but they are not as strong as they could be. >> how different is sheldon
adelson vs the koch brothers? >> it's a tough question to answer. at the end of the day, both sets of donors are looking for winners. they are looking for people who are going to be able to espouse free enterprise with sheldon can cares about. cares aboutson the issue of israel and that drives his decision-making when he thinks about the candidate he will support. >> isn't that going to be complicating for a candidate? >> i don't know about that. most republicans are promilitary spending which is in line. he backed the ted cruz upon in the primary. he backed marco rubio's opponent and is a big supporter of karl rove. he is not a tea party supporter.
>> i don't think he supports rand paul. whole libertarian wing is a little isolation is so it's hard to know whether he is being pragmatic and wants a winner and therefore is avoiding more of the extremes of the party or if he just wants a strong candidate to support the military which would tends not to be the tea party which is focused on cutting costs. >> is he effective as a donor? >> yeah, i think so. when you look at getting the as candidates to las vegas to the republican jewish coalition meeting to talk about the importance of the u.s. relationship with israel, that's an issue that is clearly is focusedut it because of sheldon and others who care deeply about the issue. no question it is an important issue but the degree of attention paid to it is a function of the fact that sheldon adelson is a massive donor to your campaign. havinge is no doubt that
him back in you is going to be a big plus. how do you see him compared to the koch brothers or other republican donors? brothers aree koch focused on cost reduction and are more pushed in the tea party direction. i don't really understand how focused they are on the u.s. role in the world. >> does that matter? >> if your priority is restraining spending, the military is one of the places you can restrain spending and i don't think sheldon wants that. he gave a lot of money to newt gingrich. money alone cannot do it. >> he also gave money to mitt romney who did not win. what do republicans want? >> they want a candidate that can win. >> what does that mean? that's ak a
candidate that can take independent voters in swing states that means maneuvering through the primary and holding the coalition with the religious right together but not being the religious right candidate like rick santorum who cannot win the swing voters in independent states because they don't agree with the religious right's agenda. a lot of them take social issues over fiscal issues. as a result, they vote democrat even though they are fiscally conservative. being able to navigate your way through the primary and get into the general and not lose the swing voter, that is what the mainstream republicans want. >> what about you? >> i think that's right. being able to find a candidate who can keep the conservative coalition together -- a lot of conservatives and mainstream conservatives and particularly for a candidate who can articulate new ideas and talk about the importance of upward mobility and economic opportunity. i think we got a number of potential candidates for 2016 who will do just that. foreign policy will be important and the traditional conservative
notion of having a strong military, and engaged america abroad, that is the vision i think will win out ultimately. >> this might be unfair but is there any democratic donor who holds a candle to a person like sheldon adelson or the koch brothers? and thek at tom steier influence he has had on the process. there's no question the only reason we are not seeing the keystone xl pipeline is because of them. the only reason democrats are talking at all about climate change is because of him. the only reason these issues are on the agenda at all and we are paying any attention to them in election years because of tom steier. >> and we talked to him earlier this year and he said he will spend as well whatever it takes to keep the white house. thank you so much to both of you. more ahead onuch "in the loop," including flying
>> you are watching "in the loop," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. good morning, i'm betty liu. the bloomberg that number is $1.2 billion which is how much it will cost to keep president obama and his team and helicopters. the contract was awarded to unit of united technologies which was the only bidder. keep programot north of $6 billion. inir contract was canceled 2009 and it was an example of the procurement process gone on mock. --amok. it is 26 mins past the hour
which means bloomberg television is "on the markets." equity futures are slightly lower. janet yellen was in front of congress yesterday reiterating they will keep the stimulus program in place at. .the nasdaq futures can continue to fall considerably. we will be "on the markets" again 30 minutes. our first story in this hour is theecb holding its benchmark interest rate the same at 2.5% which is a record low rate since november. draghi will-mario hold a press conference in a few minutes. back $1.8it will buy billion in stock to reduce share dilution. it wants to reward shareholders after issuing stocks to its executives who are credited with turning around the company. they made the announcement ahead
of its annual meeting which is scheduled to take place today. 6.5%network reported a increase in first-quarter revenue, the second-largest u.s. satellite-tv company added about 40,000 subscribers, well above wall street projections of 31,000. that is rare given the fact that many of them have been bleeding pay-tv subscribers. is in competition with direct tv. the satellite-tv companies had to be working with goldman sachs for a sale after its market valuation rose over 40% in the last year. i am joined by jeff mccracken. we thought it was going to be direct tv and dish merging. >> we are in an interesting time in the telecom -- cable -- internet space. we are looking at comcast with
time warner and then a big sale of assets to charter. at the same time, we have reported masassan wants to connect with key mobile and we have this situation. out toergun had reached directv and they had a conversation. this shows that one deal can deal or get a company thinking perhaps we should be thinking differently. the previous thought that was going on is the focus should be on vodafone. you can see at&t try to do something with that. they wanted to declare their intentions and they have taken themselves out of the vodafone race for a few months. the thought now is that maybe we should look at dish or direct tv. >> so what happened with vodafone? why did they take themselves out of the running? >> you either put up or shut up. one story start to come up about at&t needed to,
either enter into negotiations right away with vodafone or say we are not doing anything. not doingignal your anything, you have six months until you can reengage with the company. >> those are u.k. takeover laws. >> exactly, it manages the process differently than the u.s. which is like the wild west here. >> they decided they are not going to do that. >> at least not for now. >> now they are looking -- the thinking is direct tv. >> this is really a three-way dance between at&t, dish, and directv. has holds appeal because it a lot of spectrum that can be used to at&t. in some ways, at&t is landlocked. they cannot go after sprint, the government would block that. i cannot go after t mobile, the government blocked that so their options are limited. they might have to look overseas. if they want to get more into pay-tv, they've got to partner
up either with direct tv or dish. >> why directv? >> someone said to me the problem with buying -- is charlie ergun comes with it. he is somewhat of a difficult itdividual to deal with albe brilliant harry put the company together but not necessarily someone you want to deal with. >> directv has stayed a little bit open to a possible merger. >> years ago when this was being talked about in 2010, we and others wrote stories and direct it was trading at 40 per share and had speculated. directv trades north of 80 per share. it will be an infinitely more expensive deal. you could argue they should have done this deal years ago. the reason they held back i think is because they were not sure of the regulatory landscape and had their eyes on t-mobile i'll. now comcast seems to have gotten everyone thinking differently
about the convergence of people and phone and internet. because all sense ofp these guysi want to get thepes. they want to get that distribution. is this what it's all about for at&t is to get the pipes. >> it is starting to view the lens through a national perspective and not just as a phone company. cable, tv iset, all coming together and you have so many more people. we are probably all watching tv on our computer. watch tv on the computer now. i would think at&t and other big companies are viewing the landscape differently. from an at&t perspective, now is the time to move because verizon who could potentially compete is tied up paying down the vodafone deal him a $130 billion. you're constantly looking at the competitor. >> thank you so much.
on thebreaking news economy. jobless claims are just out a few moments ago. re-hundred 19,000 claims for the week ending may 3 as a little bit lower than what economists -- 319,000 claims for the week ending may 3 which is lower than what economists predicted. futures are still pretty much not changed. we had a big rally in the dow yesterday on the back of janet yellen's comments but the nasdaq futures continued to be pressured by the selloff in tech stocks. joe consuelos is joining may. >> it tells you that after a lot of noise over the past month, that the claims are falling back in line. you will see volatility around the 13 week moving average around 325. firms are fairly happy with their current workforce.
the are not eager to reduce number of people they have hired even if the economy slowed a little bit in the first quarter. it shows more confidence. jobs it's good news on the front but it does not mean that companies are ready to hire. or raise rates? >> one of the interesting things is that for the last couple of business cycles, the four-week goodg average was a pretty leading indicator of hiring. and this business cycle, that is not the case. that's what we talk about the pace of firing. the most persistent feature in the labor market is the low-wage environment. wage increasesng of about 2.3%. that's just not going to cut it. that's why we saw the comments of janet yellen we saw yesterday. >> what do you say about the lack of moves by the fed? voe begins to move away
from their accommodation. the ecb has fallen behind the curve. they should have started their purchase program of assets. they have a disinflation problem that could quickly turn into a deflation problem. if they don't act soon, it will harm their credibility. >> thank you so much and great to see you. a live shot ofg icb president mario dragh after the central bank left interest rates not changed at 0.25%. you can watch it live online and our european stream at bloomberg.com/tv. coming up, las vegas sands eeo sheldon adelson tells me how he raised the stakes on the strip
for adult entertainment and why the new hyatt roller ferris wheel is just for kids. if you're in colorado, smoke them if you got them but don't try to do business with the pot industry because you could still be breaking the law. we will tell you about the cop acquitted details in colorado coming up. ♪
>> we are listening to the ecb president speaking in brussels about the economic -- recovery in the euro region after they left benchmark interest rates not change and economic risks continue to be on the downside and therefore he is e surprised thecb has not added stimulus and to the euro zone. we will continue to monitor the headlines and you can watch it live on our european stream on
bloomberg.com/tv. you can watch it anywhere you go. it is time for this versus that -- in colorado, hemp rowers versus the bank. let's see who won this fight. this is a colorado bankers association, one of the states most powerful lobbies. it opposed the bill to create state regulated co-op to provide banking services to the marijuana industry. that's because the state added hemp rowers to the list of people who could open bank accounts. that is the hemp industry. it's a version of cannabis that contains only trace amounts of the mind altering ingredients thyc. hemp growers say they are starting to get turned away by banks on the problem is the banks doing business with marijuana companies are technically committing money laundering under federal law. the colorado legislature rejected the bankers argument and passed the bill. governor john hickenlooper plans to sign it into action. coming up, comcast everywhere --
>> sheldon adelson has built his fortune in the casino business with a net worth close to $38 billion. much of that was made in his casinos in macau. in an interview, he discussed how that money has changed him. >> do you like walking around your own property? >> yes. >> do you do then? >> sometimes. with my slight handicap that i have. it's not as easy. i have to write on my scooter but before i became sick with
this neuropathy, my wife and i used to come in every night and walk through the property. >> do you >> we have children, we go home and have dinner with them almost every night. >> do you ever step back and say i am the ceo of a u.s. company that generates more and more of their money in asia? >> i have reflected on it. that is how the las vegas sands would turn out? >> no. >> most of your wealth is coming from asia now. >> yes. wait a minute -- i have built up a lot of wealth while i was here. from my previous businesses and my business today. thankfully, according to bloomberg, >> your the 10th richest man in the world. >> think about that, there is 7 billion people. is 6 billion,re
999 million, 990,000 that are not at my level. that's a lot. i'm not sure i got the numbers right. >> you are pretty close. do you think about that? >> do i think about the fact that most of my money is made in asia, sure. >> that >> i hope it comes up to 99%. it's over 90%. >> yes. >> sure, what's wrong with that? >> there is nothing wrong with that. >> as long as i do what the government wants me to do, i love it. i don't think i'm ever going to retire. >> what have you learned as you've gotten older? >> i've learned to seek advice from other people and.get more than my own viewpoint on something i have learned that now that i have accumulated incredible i can do goodey
>> what do you want your legacy to be? >> you are 81? >> i'm 80. because 80 is the new 60. i want my legacy to be that i helped that humankind. >> what do you think your mark here is in las vegas? what do you want people to think of when i think of las vegas and you? >> i don't think me and las vegas -- i have changed the face of las vegas by focusing on convention-based marketing models. >> where nobody else is doing that. >> everybody decried it. they belittled it and said they don't ramble when conventioneers come in. to a certain extent, that's true. but we compensate for it. we have the price of the rooms. >> everybody started following you. wynn is more of an
entrepreneur than the other guys. andbotdaesars and mgm - they are not entrepreneurial. >> how are you able to be so outspoken? >> i try to be honest. i flunked diplomacy 101. know, i could not be a liar. i can only tell the truth. i would be about liar. my father told me -- he never left me with anything material. but he left me the richest riches i could have. he always told me never lie about anything. you've got to be honest. if you lie about one thing, the second time somebody will ask you you will make up a lie to cover the first line. then pretty soon, you will have a whole chain of lies and you're completely exposed. >> i'm not talking about the
lying. i talked to many ceos and many of them are not able to be as outspoken as you. >> it's their personalities. >> they are worried about the stock price are worried about saying the wrong thing or their investors. >> that's their issue. it's not mine. >> for more on sheldon abelson, i am joined by matt g miller. i note you have studied sheldon adelson for quite some time. he is a real horatio alger story. >> it is, you see the son of a boston cab driver, they grew up very poor with many children and many siblings in the family and only one or two bedrooms in the house. he starts off borrowing money from his uncle to sell newspapers on a couple of street corners in boston. he eventually becomes a court reporter and does a a lot of odd jobs.
he built his first fortune in trade shows. x trade showhe comde in las vegas is what -- which was one of the first technology shows before he sells it to softbank. proceeds tosed the start las vegas sands. >> you know these billionaires very well. throughout the interview, he was very -- he was emphasizing he is the guy and these other guys are following me and i'm the guy who created this industry, convention-based marketing and las vegas. i'm the one that wins to themacau casino. he's >> got a bit of a chip on his shoulder. >>most of them do because most self-made millionaires are the ones trailblazing who create new things. he said steve wynn reinvented the clock. he said you can have people sunday-thursday in las vegas. we should not just be focused on
the weekend which is what other people were focused on. steve wynn brought entertainment and restaurants like non-gambling revenue to las vegas and sheldon adelson broaden the customer sunday-thursday and charged them for everything. make sure you pay for your room. gets one of the first licenses and steve wynn built a huge can see no -- casino. sheldon adelson builds the biggest one and pays it off within one year. >> he made money in one year. >> immediately, he got into the market and tested it for some that allows them to be such a kingpin. >> how is he different from other billionaires? the shoulder is something he wears on his sleeve. ,ost billionaires are ambitious trying to grow their as this is, but they don't necessarily show up whereas sheldon adelson has to convey to you every single
time all of the things he has created. i think that sets them apart also makes him extremely powerful. he genuinely said i am putting my money toward causes with his wife who is a doctor. effectivewant to find treatments for 10 different kinds of cancer. is he different in that respect than other billionaires? >> a lot of billionaires are looking for roi with their philanthropic dollars. i think it proves that somebody else i stanch a wealth and means does not have to sign on to the /gates pledge to have a real effect on society. >> thank you so much. you can read more about sheldon adelson on the world's most riches people at bloomberg.com/ billionaires. coming up, day two of janet yellen's testimony on capitol
ecb presidentmario draghi pistil speaking in brussels. you can watch it live streaming on our website bloomberg.com /tv. bloomberg television is "on the markets." equity futures are slightly lower and the nasdaq futures are taking a tumble after the kleins yesterday. we're also watching the euro which is climbing to its strongest level in over two years as the ecb policymakers decide not to do anything with the key interest rate. we are "on the markets" again in 30 minutes a much more on eric's close of interview with sheldon adelson.
>> we are about 30 minutes away from the opening bell. futures are indicating stocks will open mostly lower. a slump in internet buddies is pulling down the nasdaq yesterday and likely today. it is day two on capitol hill for janet yellen who will be testifying about her economic outlook as she comes to the senate banking committee this morning. it is also comcast day and capitol hill when executives from comcast and time warner cable will try to sell their merger to the house judiciary committee. we will hear much more on that. maker lenovophone is quietly taking the tech world by storm. this is four years after entering the market, it is
ranked fourth locally and smartphones and with its recent acquisition of motorola mobility, it will become third. this is in the latest edition of "bloomberg businessweek." joining us is drake bennett who wrote the cover story. it has been this sleeper hit? year, they went on a big shopping spree and bought motorola for about $3 billion. they bought the low-end server business from ibm within a week. the company has grown a lot but it is managed to stay under the radar screen for a couple of reasons. it's a brand that we tend to associate with work. it's an enterprise business. hadlked to friends who never heard of a company and you asked them to work -- to look at their work laptop and it was lenovo. they pursued a strategy where
they have grown by being a scavenger. >> they bought other people's trash. >> they have been smart about going through other people's leftovers. motorola is an example of that and google was eager to get rid of the company. it put them in a weird position competing against the phone companies that bought their android operating system. ibm wanted to get out rid of the low-end server business and lenovo has a track record that says they can make money doing this. >> do they not want to be well known in the u.s.? >> they are trying to change that. you have seen them really invest in marketing and try to become more of a premium brand. and are moving upscale offering some products that are more expensive. they have managed to make an impact. yoga pc that flips and turns into a tablet. it is selling pretty well. it is the higher end of the scale. >> tell me about their management. >> one of the things you'll hear
over and over again is that they are not a chinese company, they say they are a global company. i have seven nationalities among their top 10 executives. they have a dual headquarters structure. they're in research triangle park in north carolina and beijing. >> their ceo is chinese? >> yes, he has been with the company for a long time and started right out of graduate school. he was running their pc business in china when he was 29. he was a young turk back then. he has been running the company and he was there when they took over the pc business and stepped back and came back five years ago. you can really date the companies strong growth since his return. >> he is chinese but the other managers are not. >> most of them are not. australia and, canadian, italian -- is quite a range. >> they say english as their primary language? >> yes, but when they bought the
n,m pc business, yang and che the then ceos, insisted all the managers learn english. >> is cable news where you want to learn your english? >> the ceo has done pretty well. >> is and lenovo a celebrity company in china? >> it's huge in china. recently, we hear more about alibaba. he is kind of a steve jobs level celebrity. there are books written about the company and he is a real star over there. what do they ultimately want to become? >> they say they want to be a $100 billion company and compete with apple and samsung. their strategy has allowed them to be the biggest fish in a rather small pond for a while. with the motorola purchase, they're going head to head with samsung and apple. >> thank you so much.
get the latest issue of "bloomberg businessweek." moving and shaking this hour -- casino magnet sheldon adelson, the billionaire founder of las vegas sands knows he has to offer more than gambling to draw in customers to his hotels. it's one of the topics we talked about earlier this week. i look at las vegas. this is my first time here. >> is the capital of adult entertainment. >> that's right, there are shows and restaurants and there is all sorts of forms of entertainment, the big ferris wheel that i see on the skyline. >> i don't think the ferris wheel is going to do very much. there are ferris wheels all over the world. >> have you been on it? >> no,.
>> do you plan on going on at? >> no. >> we have the singapore flyer next or property in singapore. it's for kids. the kids like to go around the ferris wheel. when i was a kid, i love the ferris deal. i am still a kid but a little bit older. >> when i'm driving, there seems there is a need among casino operators to diversify and try to get people into their resorts. >> they never did that until i did. >> why would you do it? because i need to be competitive. to be competitive is to do things different. more of myhave exclusive interview with sheldon adelson coming up later this hour. you are get your fill. fed chair janet yellen heads back to capitol hill today where she will be questioned by members of the senate banking committee that starts at 9:30
>> in washington today, federal reserve chair janet yellen is on the hell again after telling a congressional panel yesterday that although the economy is improving, it still needs a good dose of stimulus. peter cook is on the hell again for us. are we going to expect anything different today from janet yellen? >> we expect that her testimony in front of the senate budget committee will be largely identical if not identical to what she told the joint economic committee yesterday. she could be asked just about anything during question and answer. lawmakers may try to pin her down on a couple of specifics. she dodged a lot of questions yesterday. yesterday wasage
that the economy is looking good and getting better and we are gaining traction. they will continue their tapering program and bond buying program. it is not so good the fed can think about raising interest rates at this point. that particular point was one where she got into it with the chairman of the committee,
kevin brady of texas. he wanted a timetable of when the first rate hike would happen and she did not go there. >> if the feds economic projections hold, what is that range? will beginou normalizing interest rates in 2015, would i be wrong? >> there is no mechanical formula or timetable for when that will occur. >> that question came in a sequence of about four questions all aimed at the same goal and that was trying to get her to commit the fed to start raising rates at some point in the future. she would not go there, perhaps learning her lesson from that
fed news conference a couple of weeks back where she throughout the figure maybe six months after tapering ends. she says the data will drive the fed. >> she doesn't pry some investors when she talked about her worries about the housing market. the one newperhaps wrinkle we heard regarding the economy and the risk out there. she talked about housing
and how things were flattening out and something she says that bears watching. she did not express a grave concern but it is one of the three things she identified. the other was geopolitical events but she did not mention ukraine by name. that is on the forefront of many peoples minds. she also talked about financial stress in emerging market economies, another thing as she looks at the u.s. economy. expect perhaps more follow-through on the housing question today from the said -- from the senate budget committee. >> any other curveballs we can expect? >> i'm still waiting to see if janet yellen makes a plea to members of the u.s. senate to
finally give her some help at the federal reserve. because of vacancies on the slow senate confirmation process, there has been a real prospect that on may 28, the federal reserve board. of governorswille members that is the first time we would see that since 1936. it means effectively that because of the way the open meeting rules were, she cannot meet and talk with any other board of governor members privately to talk about policy issues because they have to effectively notify the public first. no way to run a central bank. it's a logistical problem for the fed. >> thank you so much. today at 9:30 a.m., you can catch all of her testimony before the senate banking committee on our live event channel at bloomberg.com/tv and error-free tablet app in about 15 minutes. coming up, pennsylvania commission reports that online gaming could bring in $300 million per year for that state alone.
>> you are watching "in the loop." is the latest flashpoint in the fight over internet family. a new state commission report found that legalized online gaming could wring more than $300 million in tax revenue each year, figure that will spark serious discussion in pennsylvania. in my interview with sheldon adelson, he talked to me about the war that he is waging against online gaming. coming from the
business that i want to make money from those who can afford it. i cannot tell over the internet who is underage. i cannot tell who has got financial difficulties. is not gamingwho responsibly. i cannot tell if money is being laundered. in the casino, i can. >> how much are you willing to spend to stop online gaming. >> whatever it takes. >> joining me now is brian miller who covers the gaming and will lodging sector and those las vegas sands very well. does sheldon adelson have any chance of putting a stop to online gaming? >> at this point, probably not. essentially fighting a one-man battle against the rest of the industry. none of the other operators have as big a problem and if you are actively involved in online gambling.
it's already been legalized in a few states. it will be very hard to repeal that and walk back the process. >> there are three states that have legalized online gambling, new jersey, delaware, and nevada. how have they done so far? a very small market and compared to expectations, results of been somewhat disappointing. bestersey is that example and that was posed to be about a $1 billion market. there is a real chance that marketing will be larger than the revenue brought in in its first year. >> so it's not doing well so far. let me play another part of that interview where sheldon talks so muchy it hits him and why he really wants to fight online gambling. >> do you worry that the chinese government will look at all that money pouring into this little some ofm calledacau and
that money going to sheldon adelson and they will turn off the tap? >> no. >> that never crosses your mind? >> people bring it up. they asked me if i think the chinese government -- they don't care about sheldon adelson. >> that was another part where he was talking about his macau casino. let's play the one where he talks about the online gambling fight. >> there is no reason nor any compelling reason to put a casino in everybody's pocket. age, college students that oh plenty of ,oney, unfortunate people working class people, middle-class people that will be easily exploited and easily incentivized to go on the internet and gamble. for what? >> is it really that big of a
danger that when you put it online, it will induce money laundering and that underage people will be online? he has a credible point when he speaks about underage people were disenfranchised people gambling online and they might have easier access getting into a gambling environment where they could lose money. as far as money laundering, i think the industry is hurt -- has pretty well shown he can as they do everything real-time, they catch onto that pretty quickly and are able to stop it. the crux of his argument that it ageegitimate is the under and disenfranchise gamblers and making sure they are protected from themselves. earlier the other piece of conversation where sheldon adelson talked about how much money he is making him his macau casinos.
is any of that at risk right now? probably 75% of his overall business. the u.s. is a small part. you have money leaving china and going into macau and money coming out. there are currency controls that are circumvented going in. it will take big dips with rumors that the junket operation will get shut down. with my coming out, you have to wonder if the chinese government says the u.s. operators are upstreaming dividends back to the u.s. and they don't want that money from china leaving china. >> thank you so much for joining us. we are just a few minutes away from the opening well. we will talk about 10 trades you don't want to miss after this rake and janet yellen is about to speak in front of the senate banking committee. keep it here on "in the loop."
>> welcome that, you are "in the loop." it is 26 minutes past the hour, bloomberg is "on the markets." julie hyman has more futures right before the open. >> pointing to a lower open if you look at the nasdaq. looks like we could see continued selling among the technology, momentum driven names. tesla coming out with numbers that disappointed investors, the shares are falling after those earnings. we will talk about that in a minute. still a lot of weight in technology even after jobless claims fell more than estimated by economists, you would think that would be good news but it is not.
watching europe and the euro. this is after the ecb left rates unchanged. mario draghi said in june that the central bank might he atpared to act if warranted inflation starts to pick up. we saw the euro start to pare some of the gains it had seen earlier in the day. hyman, weou, julie will be back "on the markets" in 30 minutes. these are the only trades you need to know. scarlet fu joins as well. number 10, mcdonald's. the world's largest restaurant chain, same-store sales rose 1.2% in april as the u.s. posted its best month since october, results in asia topped estimates. and inc. five months of decline -- ending five months of decline. >> elon musk's other venture after a 70% jump.
installed 82 megawatts of solar panels in the quarter, up from 46 last year. >> at&t and talks to buy satellite television company satellitee -- television company directv. it has a market value of $45 billion after a 43% share climb in the past year. >> barclays will cut 7000 jobs at its investment bank. the ceo has been under pressure to cut costs at the bank. this week, the unit posted a 49% decline in first-quarter revenues. earnings surged of six percent as it boosts international booking. a second quarter forecast fell short of estimates. transocean posting a 42% gain in first-quarter profit, easily beating estimates.
transocean announced monday it asld spin off 8 u.k. rigs part of an agreement with carl icahn. >> tesla motors posting first-quarter earnings that topped analyst estimates. shares fell after it issued a disappointing second court outlook. a tightid it is facing battery cell supply but expects that to improve in the third quarter. >> was that not driving a tesla? >> i think so. wendy's, topping estimates and the sending shares higher in premarket. they said strong results were driven by better traffic and successful product promotion. >> millennial media, shares plunging more than 40% after the global advertising firm's quarterly results trail estimates. the cfo will step down six months after the founder and ceo for me to join a venture capital firm. number one, las vegas sands,
the casino company and some of its shares are falling amid concerns that a crackdown on illegal money transfers from the cat was going to pair demand and traffic. me, hedon addisoelson told is not worried about a slowdown in macau. hear more from our interview. you're watching a live shot of janet yellen's testimony. she will be questioned by members of the senate banking committee. livean watch it on our channel at bloomberg.com/tv. wey "in the loop" as continue to monitor the headlines from that hearing. now to the call. global market strategist at j.p. morgan. his call involves the fed. he believes the fed will disappear from the market later this year. what do you mean by that? if you have been listening to
janet yellen and ben bernanke, these asset purchases are not going to last forever. yesterday, when yellen was interviewed, she made it clear that the pace of economic growth is improving. things are getting better. that warrants into doing tapering. i suspect they will be done with asset purchases by the end of this year. >> do you expect interest rates will rise? >> interest rates are on a gradual path higher. the first few months of the year surprised everyone. we had disappointing data and geopolitical risks. i do actually think interest rates are going to keep moving higher. once they are done with these purchases is a matter of time before they start -- before they start tightening monetary policy. been lookingn has at how long-term bond yields have been doing. we havee pointed out, seen the geopolitical risk push yields down and down and down, particularly on a longer end.
look at the 30 year year to date, the yield specifically we have seen a decline of the most since 2000. the total return on the 30 year is over 12%. that is the best we have seen since we started keeping records in 1988. it has been a good year for treasury investors. there has been a lot of demand for treasury. a lot of it has been coming from pension funds. there is an estimate from the bank of nova scotia that because of new rules designed to reduce volatility, plug shortfalls at pension funds, there could be in other $300 billion in the next two years calming and extra pension funds. yes, the fed is going to scale back its treasury buying. but some are thinking that at least some of that demand, if not all, might actually be made up for by some of these pension funds. >> what do you think, joe? >> there are supply and demand
dynamics. if you look at our deficit, we have seen a steady reduction, we are pulling some of the supply often that is helping yields. at the end of the day, the largest buyer of treasuries every month was the fed. and preparing to step out and moved out of the markets entirely, that tells me interest rates are moving higher. aboutnot talking tightening monetary policy. yellen made it clear that we are in no immediate need to tighten policy but it is coming, whether it is six months or a year. rates have to go up. >> could it mean that rates or yields stay in a range for a while. >> is very possible that rates stay in a range. if i am a long-term investor looking beyond the next month or six months, i have got to believe rates will go higher from here, it does not make sense to have real yields the slope when you have on improving economic backdrop. >> there are certain sectors you like and do not like. we will focus on one of them weather has been a lot of m&a
activity. telecom. dealmaking.down to at&t in talks to buy directv according to people familiar with the situation. sprint determined to convince regulators of the merits of its combining with t-mobile. the bottom line is carriers are getting swept up in the remaking of the entire media complex. the goal is to house content, distribution, and service and then scale them. comcast land a purchase -- the comcast planet purchase of time warner cable was the starting gun for the new m&a race. -- mantra is in a have seen him activity, ceos are feeling more confident in the outlook. the last fewover years. as a look at that sector i noticed that dividend yields are very high. you have seen many investors move into defenses as the
momentum versus the defensive thing has played out. i want to be positioned into cyclical sectors and stay away from the bond proxies. >> thank you for joining us, global market strategist at j.p. morgan. coming up, comcast back on the hill trying to convince lawmakers to approve its merger with time warner cable. end, of money towards that will this company finally succeed? more of my interview with sheldon adelson and how his bet in macau has paid him handsomely. a few minutes into the session. stay "in the loop." ♪
was granted stock options of $27 million, the 42% raise was his total compensation to 31 million dollars. nintendo announced plans to expand in emerging markets next year. the company will develop new consoles rather than sell cheaper versions of existing devices. nintendo has been struggling to win over consumers. samsung replacing the leader of its mobile device divine team. world's largest smartphone maker. samsung struggles with falling sales and protracted patent infringement battles with apple. catch the latest with tech and media every day on "bloomberg west." comcast and time warner cable executives are back on capitol hill to pitch their merger to the house judiciary committee. the two companies have already made huge efforts to win their
case. spending millions of dollars on lobbying campaigns. cory johnson shows that if money talks, then comcast is shouting to get this deal done. washington, there is lobbying and then there is lobbying. a 44 billion dollar proposed merger between comcast and time warner cable is an exercise in lobbying. comcast has spent $18 million in lobbying, more than any other , even a defense contractor like northrop grumman. and a lot of the money went straight into the campaign. 59,000 dollars to john boehner. 37,000 dollars to mitch mcconnell, $37 to mark udall. 25,000 harry reid. the real power is often byzantine. neil smit is the ceo of comcast cable, he is also the chairman
of the national cable and television communications ave $19tion, they g one of thet year, top five lobbyists in all of washing to d.c. -- nowmit, tom wheeler the chairman of the fcc, the very body that will decide the fate of the merger. for anyone at the fcc thinking about their next job, michael powell is now the ceo of the ncta. -- ceo of the meredith baker, who help approved the comcast deal, she went to comcast as their chief lobbyist, trying to use contest's power to urge washington to accept the deal. cory johnson has more on
those efforts. is the sentiment against the merger strong enough to merit the kind of cash they are throwing out at? >> there've been a lot of critics of this deal in congress and among consumers. there are a lot of reasons people are concerned. comcast says they are going to save money but is not promising to pass savings to the consumers. we have seen cable bill go to $100, comcast suggests no reason for that to stop. that is one aspect of this. the net neutrality issues are a big deal and could be a focus. we are doing a special on "bloomberg west," focusing on the aspects of this deal. timeamentally, comcast- warner will control broadband access in 19 of the 20 largest cities in america. they will decide which services work better than others. prime, thatamazon
could be slowed down and netflix could be fast. >> the biggest opponents are who? >> it is amazing that the lives of companies that have come out against this deal. companies like amazon, linkedin, google, yahoo!, twitter -- literally hundreds of companies have come out and announced their opposition. in part because of the issue of net neutrality. they recognize that their business might not have a chance of comcast decides they do not. comcast will pick the winners and losers in business in america just by controlling the access speed which consumers will receive information from the web. >> how long will it take before we hear whether it gets approved or not? >> while there has been a lot of public outcry about the deal and there will be more today as the house judiciary meets, fundamentally the levers in washington are so controlled by
comcast money, spending more money than any company -- andeen comcast and the ncta the connections they have, former fcc commissioner working as a lobbyist with current fcc commissioners wondering where their future lies. the comcast dollars loom large day forould win the comcast, regardless of opposition from congress or consumers. bringing that,r cory johnson. be sure to tune in to see corey, emily chang," bloomberg west" team to that. comcast everywhere, coverage of as anaring as well in-depth depth look at what the deal could mean for the pay-tv industry. guests include senator al franken and a former fcc commissioner. you do not want to miss this coverage. still ahead, more from my interview with las vegas sands ceo sheldon adelson. i will ask the casino mogul
global outlook. sheldon adelson's las vegas sands was the first floor and casino to build in macau after the government broke up the -- it was a matter of building another las vegas and asia. sheldon -- >> that's me. >> we are here in the venetian in las vegas. you have a venetian in macau. what you wanted to do was build a las vegas and macau. you could just pick it up. in asia. else saw that?
>> i guess that is what a billionaire is made out of. >> but really, people thought you were crazy. been inurse, i have dozens of businesses. everybody thinks i am crazy. nobody wants to recognize that doing something different than what people do routinely is vital. nobody wants to recognize that. the only way i can prove it is to do it and succeed. but why do i have to convince other people? i did not have to convince anybody. now we have our own money -- >> did you ever think the cat was going to surpass las vegas in the way it has? >> yes. >> what convinced you? >> when we first applied in of 2001,2002, the end there were $2.5 billion in gross
gaming income. that was 2002. by 2004 macau, thened sands gross gaming revenue before we opened was a $5.5 billion. in two years. >> wow. billion tofrom $2.5 5.5 billion dollars, it went up $3 billion. the business was already there. i think people were not recognizing it. how do i think it was going to grow, there were 1.3 billion chinese -- i believe that this industry in which we operate, the lodging and gaming industry.
i believe that it is a supply driven industry. -- ithere was once a movie forget what it was called. "build it and they will come." >> "field of dreams." >> if i put those buildings there, they will come. >> they did. >> and they still do. now, the government has put tens of billions of dollars in infrastructure, transportation infrastructure, to allow the provinces outside of guagndong reach ofto be within getting to macau. the chineseer worry government is going to look at all that money pouring into this little enclave called macau, some of that money is going to sheldon adelson.
the government is going to turn off that taps. >> no. >> that never crosses your mind. >> people say -- do they think the chinese government is going to -- they do not care about sheldon adelson. >> shares of las vegas sands that a amid concerns crackdown on illegal money to transfers in macau. this is according to the south china morning post in hong kong. following that story. that does it for today on "in the loop." watch bloomberg television all day. much from my interview with sheldon adelson right here on bloomberg television. you can watch it at bloomberg.com/tv. we will be back in two minutes. ♪
average is, nonetheless in the green. we had jobless claims better than estimated. thent to look at the vix, volatility index. what you are looking at is the year to date chart of that. we have seen it remained in a range. we had one spike among 20 but we have not seen a lot of movement in the vix. at theot just trading lowest in a year, we have seen it for the past couple of years. michael is a strategist and points out it is not just the vix that is low, it is a cross a lot of other assets that we are seeing unusually low volatility. talk about where else we are seeing low volatility. >> if you look across the specter of important assets -- treasuries -- treasury volatility is extremely low. yen volatility,
even commodity volatility. we are used to oil prices running crazy back-and-forth. were gold, all of these are multi-decade lows. an usual is it for all of these two have the same levels at once? >> last time we had this convergence at very low levels was 2007. i think it is more extreme now. the question is what do you do? >> what does it mean? that there isrgue an inevitable byproduct of all the central banking that has been focused on deflation battling, whether it is in japan or in the u.s. or in the euro zone. increasingly in the euro zone. not only central banks are adopting similar philosophies and strategies but they are also more and more interlocked with each other, their strategies are beholden to each other's because they have to watch currency. we are seeing what is happening with the euro, that is hard on
french exporters. one central bank can only be as hawkish as other central banks will let them he come, no one wants to become norway and have a super strong currency. 2007, thego back to coincidental low volatility signals were not the best signal if you look further ahead. you would argue this time that is not necessarily the case. >> it is an important thing to be watchful for. whether or not -- we are setting up systemic failure in 2008 when everything went haywire. i think they key difference is that since 2008, basically you have a very important institutions, governments and their central banks, all being as preemptive and proactive as they can on terror risk management -- on tail risk management. that does not mean we will not have tail risk down the road, but whether it is basel iii,
large banks reducing leverage clearly are, and focus from our regulators on making sure we do not have too much leverage in the system and things are constrained, that is important. note,sort of a side besides the macro picture, the lack of volatility is not great for trading. i would pushback on that because what is interesting -- you look at the vix, maybe 13 or 14. back, 13 oryou step 14 is below its lifetime average of 20. it is also relative to where it is with respect to its historic low. it is sort of elevated if you put in the context of treasury volatility or currency volatility. i think there is a lot of volatility, it is just not a lot within the market.
if you look at this, the vix is at 2011 risk off levels. in,hank you for coming interesting subject. "on the markets" again in 30 minutes. "market makers" is next. ♪ >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. cable consolidation, executives from comcast and time warner cable are back on capitol hill today. defending their planned merger a while talks between at&t and directv are heating up. >> einhorn's target, while a short seller is wrong about why his id company should be worth more and why he plans to keep growing at a rate investors find acceptable. the nfl draft starting tonight, why trading up
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