tv In the Loop With Betty Liu Bloomberg May 13, 2014 8:00am-10:01am EDT
in the midst of a shakeup. ceo bobbc universal wright will join us. at&t buys directv for $50 million. even with the surge in his screen, -- music streaming, radio continues to thrive. wilmott is on a mission to ban online gaming. here is a look first at our top headline this morning. to buy directvs for $50 billion. that would give them the nation passes biggest satellite provider 20 million subscribers in the u.s.. a ceo trying to sell --
concerned the deal will lead to job cuts. alibaba might be coming here for is takingt facebook steps to open a sales office in china. the chinese government banned people there from using facebook five years ago. story, at&t is joining the consolidation game as a bid for directv. the change would come as comcast unites with time warner cable. joining us now is the former ceo of nbc universal. to see you this morning. what great timing on the morning after this news. does this make sense to you? complex -- >> you have to look at the technology involved and all the activity in media today.
are in at&t and directv and comcast, you have land lines , telephones which we have had for a long time. cellular telephone, towers. one is in the ground and then you have towers. then you have satellite television, which is directv. then you have the internet. comcast has three of those. ground, cable, and telephone. that is look at caber -- cable at&t has half of the cellular business. that is unique to them. verizon has the other half. lot of fixedve a
phone business. they're trying to put fiber down. they are not in that game in a big way. directv does not have phone, does not have cellular, and does not have internet. it has connections but it is very slow, relatively speaking. the question for at&t is, is this a reaction because they got shut out of europe or phone acquisitions in the united states? vodafone jumped the gun in europe. it is a reaction, what is the ultimate purpose? >> these are different notnologies and they do necessarily -- the only ones that are synergistic are cable and internet and landline phones. the other two are separate, cellular.
they will combine technology that is not synergistic with what they have. they will operate two technologies, very expensive. >> i agree. i was talking to media executives last night and they were also struggling a little makeith how this really sense for at&t. they will get subscribers. convert those?to >> to what? >> i do not know. the idea of putting that content -- obviously wireless is their --iness -- biggest this is is their biggest business. they do not have to buy all
the satellite systems and everything. do not forget directv has a big bigness that you -- business outside the united states. if that is what they want to develop tom a maybe that would help their cellular vid -- business. we have not heard anything from .t&t it takes the pressure off them, i think, saying, you have not been able to do anything in video and now you have got him thing. >> right. this make more sense for directv. i think directv has had a really good run over the last few years. upir growth has picked outside the united states. it is probably a jury if it time for them. you know ironically who the big winner is on this. warren buffett. he is the largest owner. >> grade-point.
-- great point. all of this is in reaction -- there is an urgency to feel you're in the game. >> the time warner contest thing is really synergistic and makes a lot of sense. it is the same business they're all in. i do not see the antitrust issue there at all. it is a figment and it is really not there. they made adjustments to get down less than 30 million. which you do not have to do. i think that is in the corner. maybe there are some politics. this one is a different animal entirely and i am not sure there is any trust there either. the whole thing down. >> clearly, they are related in the sense that, it sounds these ceos are really under pressure to essentially be in each other's business and make dramatic moves.
great to see you, the former ceo of nbc universal. moving and shaking this hour, christine lagarde canceled lance to give a commencement address next sunday. they said it has become evident she will not be welcomed at the college. said the imf hurts the poorest country and that means the oppression of women worldwide. the guard gave a command and speech at the harvard school of government about two years ago. another company hoping to make a deal is pfizer. trying to convince u.k. lockers that his company is good for the u.k. economy as he tries to persuade his target to enter talks. our bloomberg international correspondent is in westminster outside the hearing. i can be it is raining out.
what was the argument? did he convince anybody this is a good deal? >> he may have convinced some shareholders this could be going through. you see stock holding a little bit up. here is his challenge. he is facing a skeptical if not hostile audience. thats to make the case while this makes good this nonsense, and they are talking about reducing the overall levels of r&d and having less research and development and more synergy, but will that lead to fewer jobs here in the united kingdom? it is almost impossible to reconcile those two arguments. without having some sort of inherent tension. he also has to make the argument with one hand tied behind his back because he cannot speak to positively about the benefits of buying it or otherwise he will just drive up the price.
morning that this another author -- offer will be made, a higher offer. he is in a real predicament, and spent a lot of time answering the question of whether or not he is doing this for tax reasons. the new company would be .eadquartered in new york taxes are 21% in the u.k.. -- is what pfizer played paid last year. less clear of jobs advantages for the u.k. public. >> that hearing is still going on. we also heard from the ceo of astrazeneca. tell us exactly how you responded. >> the ceo of astrazeneca made an important point saying he could not rule out excepting this bid. they rejected bids but this has
not turned hostile -- hostile yet where pfizer is taking it directly to the shareholders. he made another point, that he cannot vouch for a pfizer's promises to keep 20% of the work is here in the u.k.. he made his own promises that he would be continuing to invest in they would continue to grow and have more jobs. the promises he and makes maybe more legally binding ban the promises his counterpart makes. it looks like pfizer has had a -- weult morning and it will see if they have a difficult afternoon. >> thank you. music streaming is so successful, why are radio stations thriving?
>> good morning. >> creating radio stations is not so easy. do you think we are so dumb that we would pay hundreds of millions of dollars a year to program radio stations versus playing the music without work? why pay an announcer $20 million a year? >>y are worth it there it nationally recognized personalities are not the only part of radio's plan to stay relevant. >> what is moving past is a 32nd marshall. you see the discharge he as a sponsor of a major event, you see them integrated into that major event. it is a very different way of selling and a different revenue stream for us and a new marketing opportunity for the advertisers. >> these efforts might help radio hold onto listeners, but
ad revenue has yet to recover since the financial crisis. they have to almost abandon some of the national advertisers and focus on local markets, local programming, and local advertisers there it that is one area where the internet is less powerful. >> large companies consolidate at small local stations in the early and mid-2000's. replacing local djs with generic programming for a wider release. it might be too late to revive better -- theya need to do a better job collecting and analyzing data. to reinventstarting itself that it has not caught up yet with measurement. all eyes are on digital and it is now almost a new standard they have to come to. >> a new standard and a new reality of sharing ad dollars
with competitors. >> advertisers are following consumers and their seeing consumers move in droves. worried. not >> there are 200 radio stations in new york and we probably have four of the top five. welcome to the media business and every business is littered with failures where people go, i will get into their business. good luck. a very interesting piece, christina. christina joins us now also to take a look at how things state -- adio stays relevant listening to bob pitman, he makes good arguments as to why radio will continue to survive and thrive. is there not less and less money he made in radio? >> i do not know if profits are
down. radio is going through a renaissance right now. looking for four things as they buy time today. one is scale. as the package indicated, nine out of 10 americans, and that is, when nails all the way to boomers, listen to free local broadcast radio every week. the second thing is local activation. paul may have alluded to that in the package as well. advertisers are looking for local activation. how do they drive people into their stores and create traffic? that is what radio does. the third thing is social. we know how important social media has become in this country. radio was the original social media. the fourth thing is mobile. very back tole social, it is a recommendation engine. when this doc is gone and advocate on behalf of a client,
they are a trusted source and a drive traffic. >> radio's pitch to advertisers him a you give us a dollar and we will turn it into six. that is impressive. what advertisers like to see in addition to everything just said, is real-time data and metrics. that is conversion rates, consumer habits. all the stuff the internet does really well. streaming services do that really well and that is what advertisers are looking for in addition to everything said here that is where radio needs to catch up. >> i agree with that. you see now with the ability to start to measure real time, i think what nielsen is doing after the acquisition of arbitron, they will in essence create an end to and platform that grass people. that study actually showed a 6-1 return, which is very strong.
a one-manyalways be advertising platform out there. the super bowl. radio reaches, as the package said, over nine intent evil in the country every single week. it is very important. >> i know you're trying to build your media empire and dominate the media lance and from your base in atlanta. you want to take your country print,rands into television, social, digital, mobile, everywhere. how is that going? >> very well. the company strategy is centered around a horizontal strategy and it is our owned and operated broadcast platform fueled by our network which reaches about 10,000 radio stations across the country. on top of that, because the space is widening, we have a deal in ownership stake in an excellent streaming platform so
we could pick up the other side. you mentioned nash. this is where we go after an audience segment. it is fans of country music in this case. it is about a quarter of the adult population. >> people like country music. >> the question i have for you is, what is the industry doing over connected cars? gm willust announced offer a plan for wi-fi service in cars. is the radio industry going to do anything to fight back? >> i do not think we want to fight that there there will be safety concerns and automakers are aware of that, but a lot of this is to get data and services into the car. fn namill always be an tuner in the cars. people want to hear the content because it is their local trusted content. that is what they have grown up with. >> thank you.
>> is 26 minute past the hour. we are on the market. we and the rallying off of those eyes right now. in a few moments, we will get retail sales numbers. very important. we will start to see that when her fade away on these numbers. we will give you a more written work for the house number is standing there and we are on the mark again in 30 minutes. last week, i sat down with geeks use of interview with the ceo of las vegas and. here are some of the highlights.
collects there is no reason or any compelling reason to put a keynote -- a casino and everyone -- everyone posses pocket. why do we legalize restitution? it is happening anyway. why not legalize drug addiction? it is happening anyway. where we can control it, we should control it. i am saying, come on that this is. i cannot tell over the internet who is underage. i cannot tell who has got a natural death subtleties. -- financial difficulties. i cannot tell who is not gaming on sibley. i cannot know is -- if money is
being laundered. i can in the casino. whatever it takes to stop online gambling. >> whatever it takes. for more on the future of online gambling, tim. ands the former is the 00 lived five years in vegas. miller joins us as well you're the intellectual than his anger about online gaming, do you somewhat agree? collects i do not have a moral issue with online aiming. a businesshow big opportunity is for us. we see it opened up in delaware and most recently new jersey. numbers have been less than what everyone ought they would eat. -- they would be. in new jersey, they have columns
in the first six months trying to get someone to fund their account. they will not get red card transfers into the gaming account. fund their cannot account. you either have to go down to the clinic did he or provide your checking information. >> credit card information is worried about money laundering. >> right here one of the reason people are looking at online businesses because many markets outside the u.s., you see saturation. think, other than a nontraditional approach? >> we were fortunate enough in the state of massachusetts. we got that a couple of months ago in 2000 and team. another state that just opened up, the state of new york. license uping for a in orange county. that will be decided later this year and if we are watching it enough to be selected, that
would probably be a 2016-2000 and 19. other states do reference opportunities for us and are not as saturated. i always think texas is a market. it is surrounded by gaming. a big piece of florida is underserved by gaming area we know the population there is very strong. see? let do you want to of you want to make sure that online gaming is not cannibalize their that is a can then we all have. new jersey internet of love years will give us enough to nation to give us a level of youth is generated online. the numbers have been very mall in new jersey or the first month. it would take a couple more years to give us evidence.
i do not take anything will happen at the row level and the expansion will be a fight and. -- they will take an approach and see how this evolves. >> i just want to raise them for of -- 1/10 ofust one percent. core retails tales numbers are down euro and one percent, effective a rise of half a percent. hit withf when we were a snow's arm in the us ordered. you own old else. you are in the gaming this. .hese are not great numbers
let's we're seeing them were results. it is. customers that have a your days with us then and are actually doing a little better. it is customers who have a tighter aimer budget. we are seeing less and visitation in our market. people are making decisions because of budget decisions. they're making a decision because you have other obligations. but maybe we can talk about m&a a little bit. -- classd like to be let me have is a rich database of customers through our relationship is over or million
strong. we know based on my. with the total rewards program, the estimates are going to vegas today. can get them to restrict property and add value to the top and bottom lines. the price tag is very high. difference -- on the strip is more lucrative, but tell me about the big difference. >> they want to be where the action is. purchase the end resort. it is a property about eight miles from the strip. and ae had modest excess response back from our research is, we are going to vegas. life do you have any asked rations of doing any outside the u.s.? life we have looked at asia and have it over there looking at opportunities in southeast asia and the buzz is all around you and and what will happen there. as he said he would love to pour
billions in very best guess. large, integrated resorts area we talked about regional opportunities. >> great. is. also, think you, brian. ryan miller, part of our large team of at bloomberg industries. is evangelizing, mike and he analyzing sales numbers. -interesting word. it may not be as as it looks on the surface. you have two go back on the revision in march and march was economistser than thought. the transition through april -- when you look at the breakdown of what was sold in april and the toys that did well, most of them were of.
we saw a decline of electronic stores and a weaker automobile sales. we do not really see a lapse across the board. internet tells tell -- sales fell. did not been quite as much in april. retailers like combine the march and april figures because of a movement of easter and you do not know when people are ending their cash for the holiday. the retail sales until number is all that rate but it may not be -- it may not mean the economy is falling, just a elevating. is other news we did see small business. they're finally getting to the point where small does is are no longer taking they are starting to plan for the future. but that is good news.
>> pharmaceuticals for the six under million dollars here the deal is lance -- expand the portfolio for eye diseases. this ale is part of an ongoing strategy to narrow its strategies of vocus current enough support has been secured to move ahead with lance to integrate the operations and the german automaker, now has
shareholders take control of 90% of the sweetest company. attempt.a decade-long unveiling a new smart on the sleeve or indonesia today. it hopes its touchscreen model will revise sales. hip-hop dancers performing on a laser lit stage. very cool. in washington, democrats are trying to do in that the majority in a house in november and there was -- pushing the message that their party is -- are the ones to address a widening gap. his attic is strategy? -- is that a good strategy? >> if their goal is try to pick up -- they need nine to take over the house. maybe when it comes to inside the district, it is not such a
good strategy. impressed already control the device. that have the i want to show you two map that illustrate the correlation. these pockets of darker green you see show the biggest spots of any audit. , florida,ts, texas but by and large, we are talking about the east and west coast major urban area. let take a look at the other man. you can see the same spot and are you now blue. the biggest gap between rich and -- you take the lead in the -- the in the polity bottom line is that the demonstrate -- the democratic messaging may not be on par with
what is happening on the district. resonate with voters, even if they're not living in one of the districts they mentioned with the wage gap? >> absolutely. polls show they could be living in kansas and still have a lot of anger at wall street ear the district does not have a big gap but it does not mean people are not struggling. competitivethese districts, median income is lower than it is nationwide. more people are in poverty than when the president took office. republicans are doing this against the president posses economic policy. >> where is the biggest gap? >> you might have guessed it, it is manhattan. three of the top 10 districts, and it also improves the number one district. shape. weird
i want to show you a little bit about what is happening in three blocks in the district. solde-bedroom penthouse for a record $15 million in january. just in a three block radius, you have google passes $1.9 billion headquarters on 8th avenue. a dessert truck art inside the veil -- the building. in the same area, you have got a phone housing project, and the monthly rent is around $400 a month. it cost less than one night in a fancy hotel across the street. the gulf justin that district in manhattan is on par with 80. huge disparity. the representative there is a democrat. >> that is new york right there for you. thank you so much. megan hughes in washington.
roseeithner was on charlie last night following the release of his memoir. is what he said about how vulnerable the financial system is. >> we are vulnerable. if not in this company, then other countries. it is inherent in the financial systems. you cannot eliminate orban or prevent it. you can do a lot of things to reduce your vulnerability to it. however messy and imperfect, they are powerful incentives against that risk. >> you can catch the full interview on bloomberg television. wage gaps between fast food ceo posses and their employees. the king of pop has a new album out today. new songs year after his death -- years after his death. ♪
>> time for today posses bloomberg big numbers. much work numbers increased for 2008-2012. than1200 times higher those of their average workers, up from 249 times higher. behind the rapid growth, equity pass for ceo posses, it is worth knowing that during the same time, the average hourly rages -- wages were basically stagnant. mcdonald's has long tailored hit -- it's menu to suit the tastes of customers around the world. brazil,appen to be in you can sample the businessman special on the menu behind the
counter. if you note a enough to ask about it. , what is it first of all? companies aremeal now required to give employees after a lawsuit. workers are saying they do not have healthy options, so they require this now from the company and now mcdonald's gets tax breaks for offering it. >> what is the businessman's daschle? -- special? and jews. >> ok. they do not have it on the regular menu? itthey are required to give >> he said the story is the
employees. what is the largest jury about mcdonald's? >> mcdonald's has faced other lawsuits as well for labor legislation. they have been sued by an employee you who gained 60 pounds for just eating mcdonald's meals for 10 years. the thing here is that workers in brazil have a lot of legislation they need for compensation and the courts often side in their favor. >> ok. how will this help mcdonald's for the world cup? promote it, maybe tourists will be interested in trying it. for now, it is time expensiver and more than the big mac. it is more in line with your average meal. a big mac is like -- you have something, they're not trying to make it as a promotion
or mcdonald's. it is not on the main menu. >> is part of the reason because it crisis some people out of the market? a it is not meant to be low-cost option on their menu. it is for employees and in line with average prices for a meal. >> how to mcdonald's operations in brazil compared to other latin american companies? >> there under a franchise that controls the region. it is really focused in brazil and then they have argentina and venezuela and mass go. brazil is a massive market for them and it is huge. in general, with foreign companies in latin america, even though brazil has strong regulations that can be perceived as anti-market friendly, you cannot not be in brazil. us here you for joining at coming up, i will speak with
>> an historic moment for the afl may have a lot of implications. this is the university of missouri football player drafted over the weekend. sam is the first openly gay player ever selected in a draft. his jersey is the second best seller among nfl rookies and the only rookie with a better one is johnny football of the now cleveland browns. that is the missouri employment law that allows employers to refuse to hire anybody because of sexual orientation. the rams could get rid of him because he is day if they wanted to. a bill in the legislature would change all of this. the missouri senator is calling on lawmakers to pass the bill. past the hour, which means boomer television is on the market. are still higher
>> we're about 30 minutes he opened up. -- from the opening bell. most stocks will open higher. home from theed mall last month. retail sales rose less than forecasted. at&t wants to add satellite television to its own, wireless, and broadband services. they're now in talks to buy direct tv for about $50 billion. it would be industry changing. reporters they
about one percent of workers -- 20% of workers. news joining us now. exactly who is upset? aboutryone is concerned this proposal to buy astrazeneca. members of parliament and the u.k. want to know whether or not this big reddish chart maker is going to have job losses -- british drugmaker is going to have job losses. >> you heard those questions all over the u.k.. >> the pfizer ceo tried to reassure lawmakers that they did plans to cut too many jobs in the u.k., but underlying this is the concern that the real motivation and buying astrazeneca is to get a lower tax rate.
that leaves the member's apartment to be concerned that they might not be interested in keeping a lot of the people. >> tell me exactly how they would save taxes. what is the mechanism? >> they are proposing to change legal domicile, so they would be a british company. the advantage would be that the u.k. has a slightly lower tax rate, and there is also the fact that the u.s. has confusing tax rules that u.k. does not have. a lot of smaller companies have already done this, about 40 companies over the past few decades. they are paying much lower taxes than they would be if they remade u.s. companies. >> what about congress? are they doing anything about it? maneuvers,ikes these they're called inversions. the democrats do not like them, republicans do not like them.
there's not a lot of agreement about exactly what to do about them. hearing the ceo the today saying that senator levin wants to stop us, but he is just one senator. >> are the taxes that prohibitive that they cannot do business here? isthe effective tax rate about 27%. over time, if they could get it was there to the 21% of astrazeneca, that could save them over a billion dollars a year. >> thank you. moving and shaking this hour, ceo called this an industry redefining deal.
he is in advanced talks to buy directv, the biggest satellite television provider. about $50 billion, the deal would give at&t the ability to sell paid tv along with broadband, found, and wireless service. nolang me now is bushnell. finding thethor of next steve jobs combat has the distinction of having given steve jobs's first job at atari. deal likeeard a this coming about, does that make sense? >> possibly. tiger gets always make sense. but people forget that the core
job they have to do is to keep from dropping telephone calls. that your cellular service. >> with add you never have to say goodbye. [laughter] >> that is terrible. what you are saying, which is what bob wright was say, he did not understand this deal. he did not know if they just wanted to do this deal to make sure they are in the paid tv game? they want to show people there doing it -- they are doing it? time,you look at it over the pipes of delivering content, everybody is trying to do it. it is a massively competitive space. the content is where it is getting. they will constantly be able to extract the most money.
people who bridge the gap, i think it is a suckers game. >> it is a lot of money. are you looking at investing in content yourself? >> i stay with content that i know something about. do notand all of that, i think anybody knows anything about it. -- i'm investing in education right now. education is really where there is a lot of movement going on. >> mobile. education on mobile devices. chrome books, regular laptops, it is like all of the sudden the dam has burst, and technology has become centered at appropriate adjunct to make teachers lives happier. a little bit unfair, because you're in the silicon valley area, but do you watch your video anymore on an actual
television screen? >> i usually watch it on an ipad. >> everything? >> pretty much. everything?ies, you're a little bit different, because you are a techie. >> yes. >> let's switchgears to apple, and the fact you knew steve jobs early on. you have criticized apple in the last few years for not being innovative enough. what do you think about this beats deal? >> i think it is a good deal for apple. are a really says, we brand company, we are a consumer electronics company. we are not an innovative tech company. if you look at what apple is, or has been, they have created remarkable products, and they get what i called the innovators
bonus. the innovators bonus gives high margins, a lot of buzz, and a lot of market share, but as you lose it, if you go a long time, the followers come. >> what does it get you? and rapidrgins, deployment. they went from nothing to a significant percentage -- >> maybe now they need that big brand. what is wrong with becoming a big brand? >> there's nothing wrong with it. it is just a different kind of company. i do not believe this is the kind of company that deserves the high market cap that it does, because there's a lot of the innovators bonus will did the market cap right now which is no longer relevant. >> do you think there is a significant shift in that apple is interested in acquiring another brand? >> a big difference.
a big change. >> could you have seen that under steve jobs? >> no. >> that's what i figured. we will talk more about the c suite in a moment. still ahead, how far can a background in tech take you? plus, the king of pop is out with a new record, making money for his estate off of his music years after he passed. ♪
>> you are watching "in the loop ." including target, jcpenney, and american eagle are hunting for a new ceo. ofpoke to the former ceo sears, and he said something very interesting about how important technology is a leading retailers. >> if you do not change fast enough, bad things happen. look at borders, blockbuster, tower records. if you have the other situation where if you change to quickly, there is a fine balance between being bold and being reckless. i would say today, as important as the class of merchant skills. >> nolan bushnell is back with me, hearing that, would you agree? >> absolutely.
right now i would hate to be a ceo of a retail chain. i feel like they have the hardest job in the world. >> y? >> when you are dealing with you either have too much of something or too little. that is why the i.t. side is so important. there are probably different trends going on in the united age right now, about 50 of them, and there's no way you can manage that without data mining and a really good customer and an inventory control system. and then you have supply chains that are often across the ocean, container ships away. and then you have the encroachment of the online world. amazon, and all of those other little companies. where the a business volumes are dropping --
>> and do not forget, consumers are not spending as much as they were before. >> exactly. and not only that, i used to spenduits where i would several thousand dollars a year to dress for success. i think last year i bought two t-shirts. >> why did you go from spending thousands of dollars on clothing to just two t-shirts? suit you where not armani to work in california, people think you're weird. find -- what you just said is very interesting. that whole thing of data mining. being on top of the trend that you do not have to be before. is that not just a matter of hiring a really good cto? >> i think it is a little bit more than that, because what you
have to do is you have to capture the attention of your customer. marketing,lly hard and difficult. you not only have to have the right stuff, but you to let people know that it is there, and you manage the size. >> if you're in technology, which he was trying to say, maybe he would make the better retail ceo if you're in silicon valley that a classic retelling margins. retail a classic merchant. do you think so? >> i think so. i cannot think of anybody off the top of my head, but i think the data skills are very -- are starting to swap the traditional merchant skills. and hownk about apple, they are a tech company but also a pretty good retailer as well.
of the that grew out innovators premium. >> deed jobs is always about the customer experience. easywanted to make it as to be an apple customer as possible. investment service. there are certain things that be high to have to touch as well is high-tech. the apple stores have done that so well that they have some really loyal followings, even though their products are not the best anymore. -- canan be replicated it be? i think microsoft has tried. i was walking down, and thought that was a funny apple store, and it was a window store. >> a lot of copying. >> somehow i did not feel right. >> great to see you. thank you for being here.
>> here is a look at the top tech stories on our radar. facebook may open a sales office in china to work with local advertisers. the move would put the social networks employees in that country for the first time. they're looking to serve the growing set of social media customers. a new smartphone aimed at
emerging markets. and speaking of google, the company could be ordered to remove personal info from search and joan -- from its search engine. racenformation must be a if the fundamental rights of a person are harmed by the posting of arsenal information online -- personal information online. we are just a few minutes away from the opening bell on this tuesday. we have the top 10 trade you do not want to miss right after the break. ♪
>> welcome back. is 26 minutes past the upper which means that bloomberg television is on the markets. olivia sterns has the latest on futures. >> futures on the rise, following the record high close on both the s&p and nasdaq. the data also up higher. tech stocks did get little bit of economic data out this morning. u.s. retail sales coming in below expectations for the month of april. following a very strong march, and we got u.s. import prices which came in well below estimates.
a little bit of mixed messages there for the economy, but so far you jews are still higher -- futures are still higher. >> we will count on the top 10 trade you need to know about. let's start with number 10, aig. -- insurers stands gain, and have surged since a new purchase. down 30% in the past four s is one of the three most oversold stocks. 36% in the fiscal year, ending in march, it is up from a year ago.
they began offering the iphone in september. >> facebook, the social network company taking steps to open a sales office in china. the move would put facebook employees in a country for the first time, even as it service remains censored there. selling eyedker santen.ts to first order results driven by high demand. they issued a promising third-quarter estimate. >> shares fell after the phone company reported mixed quarter results erasing yesterday's gains.
green mountain coffee , coca-cola raising its stake be. elizabeth arden, the maker of elizabeth taylor and britney spears's brand have a surprise loss for the quarter. much lower than analyst estimated. tv, thend direct wireless operator in advance talks to acquire the satellite tv provider for about $50 billion. -- $50 million. what a big deal that would be. now for a call on the markets.
pimco saying we are stuck in a new neutral. richard explained this. >> there are three key elements. multiseat world of countries converging to slower trend growth rates. we also have a world in which economies face overhang of leverage. we have had no deleveraging in the past five years, and the aggregate has a lot of deficits. policymakers will recognize that, and keep rates lower. >> let's bring in the managing director at equity portfolio managers for jpmorgan. i think you have a little bit more of an optimistic outlook? >> i would say compared to the new normal and the new neutral, it sounds like things are getting better. it sounds like the major economy is accelerating a little bit.
we are excel rating in touch into next year -- accelerating a touch into next year. a positiveng for cycle in the united states, seeing better jobs leading to better consumer behavior. leading to the cycle building on itself. >> but we get the interest rates low for quite some time? whatthink if you listen to the fed has said, they're talking about a normalization policy in the future, but for the time they are continuing to talk about that we recognize the issues we are facing. like isector that you the financials. howia has been looking at banks have performed. >> we were talking about how banks might be too big to fail, and now we are seeing if they
are too big to jail. it is not clear how new government regulations might impact the online. they are handing out multibillion-dollar fines, and we are talking about, no charges for some. some.minal charges for strength,gement shows there is the threat of outside regulations, internal restructuring, and here you're looking at second-quarter forecast earnings for growth. it looks great there for the energy sector, but this is what a set to happen to bank earnings. it is all about whether or not this is the time to buy. >> that sounds really depressing. what is in the price? that will be your question. that is where it gets interesting. how will be banks rebuild their balance sheets?
if you look at what we had come out from, the stress test using globally, bank's are much better capitalized. if we get that reacceleration in growth we will see improving trends for demand. if you have improving topline, you have -- >> it does not sound like that reacceleration is going to be very rapid or big. >> i would happily take lower for longer, lower but sustained growth if we can have an extension which starts to mirror that of the 1990's, which went on for the better part of a years. if you went to the 2000, we had a long time that was only rebooted a year-and-a-half ago. early inill relatively what could be a longer
expansion. >> you are going to walk us through why investors may want to stay cautious on shares of big media companies. >> there is a lot jockeying for position because of dreaming services and cable television. you have netflix creating more original programming which means that the double-digit revenue growth for licensed content could falter. sony and google are also developing their own pdb services.- paid tv ad dollars will follow. >> what do you like in big media? >> you have to look at it in a different couple of different angles. the more different ways you can consume it, whether it is through cable, satellite, or over the top, the fact is you're creating different venues and technologies to actually consume content. so content becomes more valuable. andontinue to accelerate,
we have an election coming up. that will be particularly about aom a -- particularly, from media perspective, there is lots of reasons that we think advertising shifts will be coming. we do think that we are looking for approving growth, and improving ads. margins is an the interesting opportunity, and there's a lot of ways to take advantage of the disruption. >> thank you very much. ahead, same-day delivery is coming. we will talk about the future of shopping with our chief product officer. and michael jackson's estate want you to feel that beat all over again. ♪
>> new album goes's on sale today. there it is. it is part of a megadeal between paidstate and sony which 200 $50 million to pump out 10 albums over a seven-year time. jon erlichman is jamming away to michael jackson's greatest hits. i am digging it. it sounds old. >> i was hanging out in my kitchen, working to michael jackson last night. i think people are going to like some of these songs. the reality is this deal that you highlighted between sony and their estate that is a reminder that the music business is not a
math driven business. when it comes to making bets in the music industry, you could make some worst choices than betting on michael jackson's music. if those numbers are correct, if it is 25 billion dollars, or $30 million per outlet if you were to average it out, they have to sell some albums. the label takes about five dollars out of every album, whether it is physical or digital. the at the top of industry right now, they did not come anywhere close to that. this is a deal of roughly seven years or so. they going to be cramming out a lot of material. >> what about the licensing opportunities? >> one of the things they are
immediately rolling out with the album are some advertisements using music from the album. neverhe song love felt so good. jeep are using some fun michael jackson songs. that message was sent early on when we start this deal. tv, films, video games. at the end of the day this is about selling a lot of albums, not necessarily licensing deals. if you can get these hit out loans, it is the cost into the upfront payment that they have to make. they have a huge team of people behind us, our producers that do not come cheap. we will see. we will just enjoy the music, we do not have to worry about it. >> that is right. [laughter] thank you so much. purchases on mobile phones and tablets are set to double to
almost $300 billion by 2018. all of this is according to data from forrester research. new york is somebody hoping to capitalize on that. he just spoke about the future of shopping, what did you want to tell people about the future of shopping? >> you said it right, it is all about mobile. at ebay it is a huge part of our business. today we are doing over $20 billion in merchandise on the mobile platform. the future of stopping -- shopping is multiscreen. it is from the device in the hand, the tablet on their lap, not just their laptop. andolan was with us earlier
he was talking about how it is much more board to have a better user experience as people go online. how you make that better? what's the biggest challenge? >> the biggest goal is to simplify it. today, with such a huge selection of products out there, i use ebay of the -- as the example, how do you find what you're looking for? search is not sufficient anymore. we knew have at her ways to help people find what they're looking -- we need better ways to help people find what they are looking for. that is the big opportunity. >> how do you do that? for me it starts with the user experience. how do you take a product catalog, give people a presentation of products and a highly engaging what -- in a highly engaging way? have a very new and very
interesting way to shop and browse. here you do not have to search pretty good to start to roll through an interesting collection of both curated elections of roderick's -- products, brought for you together on a wide range of themes. our own customers are also building these collections and pushing them on ebay. we have over $ one million collections. this has become a social phenomenon. they are created by our own customers in the marketplace. that is really great to see. aspectsabout the other of shopping that are important, though less sexy? getting same-day delivery? getting that package right away?
intersections in the future of , whatce is between local we would call retailing in the physical world, and online. what we are focused on is shoppingt the power of across a huge product catalog, and then making delivery of that convenient. we have made some interesting investments in product same-day delivery. we have buy online and pick up in-store. that is where the world is heading. >> does it not cost a lot of money? to try to make sure that you can deliver within hours a package that someone has ordered? >> it is a challenging logistical endeavor for sure. that is why we are augmenting
that with a very scalable proposition around buy online and ship to store. that is a win-win for both the online merchant and the retailer , because it dries engagement, provides the convenience of being able to get the product exactly when you want to, but also gets people into the stores which is a win for the retailers. that is why we are interested in looking at how we can get more out of the buy online and pick up in-store proposition. >> says we have been talking about this whole alibaba ipo and what they've done in china and what they want to do here in the u.s. when they are publicly listed, have you studied their model? i you threatened by them at all? >> the e-commerce market is a multitrillion dollar opportunity. it is huge. great dynamics in this market. there is new entrants every day.
we are focused on one thing, and that is the customer. we are laser focused on building great customer. in a differentiated marketplace. i am very proud to look at our franchise, especially from a multi screen commerce perspective, and what we have managed to accomplish. we have nothing but tremendous upside opportunity in the future , building on the global phenomenon. >> thank you so much. it is now time for our global outlook about our study is doubt on red wine. that older found italian to 88 diet rich in wind e -- italians who ate a diet
bit. tech is the focus of our on the markets right now, we take a closer look at tech stocks. the nasdaq pretty much flat, but the question is this the beginning of a bigger turnaround? joining me is not cussler about the head of the -- is of tech.sler, the head has tracked with tech this year. but if you're talking about visible and high multiple corners of the universe of tech, we have seen some dramatic the kleins. we think it is time for some kind of on spec -- bounceback. >> we hear the valuations on the
nasdaq art twice what they are the s&p. the we think that tech stocks are a good value? what are your thoughts? >> my thoughts are that a lot of people have been hounding these names that have limited earnings and very high related multiples. the way we look at that is that there's no question that some of these names do look stretched. on the other hand, consider the fact that some of these have tremendous growth. criticize people twitter, they did generate huge revenue growth. you can see potential validation in the streaming music category, and pandora has about one third of that arc according to a recent survey. we think there is actually a scarcity of growth out there which makes some of these names even more attractive.
so maybe not so much on user growth rates, but the sales numbers. one of the other names that you like? of weekshe last couple we have upgraded a number of these names. last week we got upgraded twitter to buy. we also upgraded facebook and when dora -- and pandora. those are names that are more out there in terms of the risk curve, but also offer really attractive growth profiles. following the recent decline, what we think are attractive valuations. >> a lot of people would say that facebook is a baha'i evaluation, but i could to my point of how can you value a new company?y -- why are you so bullish on
facebook? >> we have a 12 month target price, and the way we think about it is relatively simple. based on our numbers, we are looking at a pe of 40 to 50 times on this year's estimate. we're looking at earnings growth that will be that much lower over the next three to five years. we are seeing a pretty attractive growth opportunity, but valuation that is not unreasonable. .> thank you for joining us ♪
>> live from bloomberg headquarters in new york, this is "market makers." >> at&t gets the picture. it is in talks with directv. the price is about $50 billion. >> the gift that keeps on giving. show marissa the money, the yahoo! ceo spent more than $1 billion on tumbler but has not seen any real revenue.