tv Taking Stock With Pimm Fox Bloomberg May 13, 2014 9:00pm-10:01pm EDT
>> this is "taking stock" for tuesday, may 13, 2014. i am pimm fox. haley barbour discusses the decaying foundation of the u.s. in politics and infrastructure. we will tell you how a legal settlement involving kellogg has a natural food industry talking about its foundation. details ahead. six-time major league baseball all-time star willie randolph will tell me how the new york yankees have created a
foundation for a global rant. all that and more over the next hour but first let's get headlines from our radio cohost carol massar. >> thank you very much. we start off with take two interactive. reporting earnings that beat analyst estimates. its outlook for the quarter a little bit of a mess falling short of expectations. maybe video games could have helped out retail sales purchases increase in the month of april and followed a revised 1.5% jump in march that marked the biggest gain in four years and the coca-cola company will become green mountain's largest shareholder. coca-cola is doubling down on the maker of keurig coffee brewers. >> pfizer, the drug giant, is to consider its $102 billion bid to buy the u.k. drugmaker
astrazeneca. this is a showdown between two big pharmaceutical companies as well as politicians here and in europe. that issue is whether pfizer will cut jobs if it buys astrazeneca. here is shannon pettypiece and steve brozak. as part of the wrangling that is going on, how much of this is about national pride and how much is this about dollars and cents? >> the u.k. elected officials, members of parliament and the prime minister are concerned about losing research jobs and they should be. if history repeats itself in
any way of what has happened in past deals. pfizer has cut 70,000 jobs since 2000. that is like a small city. it is a good-sized city. they've closed more than seven research labs and they -- if the deal goes through there is all indications that will happen again with research centers and jobs in the u.k. the u.k.'s government concern does seem to be legitimate and i think that is what the concern is about. >> from a strategic mind of you from pfizer, why do they need to make this deal happen? >> they got to do something because their model has been to acquire. not new products but lateral acquires, other companies, similar type companies. when shannon was talking about research they try to get out
there -- ian reid said they would maintain 20% of their research. what exactly are they going to maintain? what exactly are they going to do and there is one critical difference here on we talk about the globality of the pharmaceutical industry. this deal started in the health-care section and went over to the business section and now it is front page in the government and political sections. the only place this story has not appeared is the sports section. we have an interesting story and the stakes have gone up exponentially now that pfizer has gone -- gone to parliament. >> blockbuster drugs. does visor have lost busters, -- pfizer have blockbusters, does astrazeneca? >> they have not gotten a blockbuster drug to market.
astrazeneca has real promise there but pfizer does not have a track record of bringing block buster drugs to market. >> does anyone have a track record of managing companies of this size for the shareholders to actually benefit? >> i do not think the first thing people think about when you bring into -- in two megacompanies, especially in bio tech or the really exotic and hard to develop products. it is very difficult. now you have a situation where you have these large behemoths that are struggling and the first thing that comes to mind is not brand-new flash, but a different kind of product. >> you have described that there are two outcomes to this at least right now.
one is called kabuki and the other is called great gatsby. start with kabuki. >> everything is prearranged and you have to go out there and you have to make the story. the merger will take place. astrazeneca will go up and pfizer will show up and you will see the attrition of jobs and you will see the cost evenings and everything else that will add to the bottom line. the lose lose situation is this deal does not go through. now all of a sudden astrazeneca goes down and pfizer goes down. we have a situation of what do you do next and finally you have a situation, every single government official will be held responsible in some way, shape, or form. >> i do not know how likely that lose-lose situation is either. you have so much money at stake and hundreds of millions event -- in investment banker fees. $100 billion worth of deals and
reputations and a huge, very powerful pharmaceutical lobby involved as well. >> the story is not over. i want to thank you very much. coming up next, you better hear from haley barbour. remember the former mississippi governor and former republican party chair, he will talk about the decay in u.s. holidays and the infrastructure of the country. the secret brazilian mcdonald's menu that you do not know anything about. details ahead. ♪
the president is getting directly involved in this. >> he is getting directly involved and he will head up to your neck of the woods tomorrow to the tappan zee bridge. using that as a background, showcase to highlight this case. they will showcase highway funding. the department of transportation estimates that the highway trust fund that pays for road projects could actually run dry by august and that could leave 112,000 construction projects like the tappan zee and 700,000 jobs in jeopardy. at a conference here transportation secretary anthony foxx told me the time for bipartisan i will bill is now highway bill is now. >> right now we are falling short. we are under investing in
infrastructure and we need to strongly send a signal not only to ourselves but the rest of the world that america is back in business. >> fox made the case for the administration's four year, $302 billion plan to deal with this. half the funding would come from a temporary tax increase on corporate overseas earnings and they would be no increase in the politically sensitive gasoline tax under the president's plan. no one in congress has signed on to it just yet. at least no major players. haley barbour took part in that government conference. he agrees on the need to invest in infrastructure but he is not sold. president >> if you spend the money on transportation infrastructure or things like that in the short term that is positive. in the long term we ought to change our tax so we do not
double tax and keep it from coming back to america. >> do you think there is a opportunity for compromise? >> dave camp talks about it as part of a big tax reform bill. and the senate does not seem interested. >> what about the fight over the gasoline tax year, 18.3 cents a gallon. it has not moved higher since 1993. you raised the idea of raising the gas tax. is it worth it for the infrastructure payoff? >> as i said in my presentation you do not put the cart in front of the horse. the first thing we need to do as i said earlier is we need to have a multimodal transportation plan that suits america's economy and helps us have economic growth. you cannot figure out how to pay for it until you figure out what it is and you buy yourself down
in a hopeless way unless you start off the process by saying ok, we will get an overall plan and we will agree on it and then we will work through how to pay for it. >> the president will be speaking on wednesday at the tappan zee bridge highlighting this issue. how dire is it, do you agree with this administration that this is a crucial inflection point for this issue? >> i agree with this. we have been known -- the panama canal has been rebuilt. until the state of florida paid for their ports with state money because the federal government was not very serious. i hope this event will be a hint that we are serious now. because washington will be embarrassed if the singapore of america turns out to be cuba
because we were sitting on our hands. >> it seems to be a big split within the republican party between the establishment republicans and tea party republicans. what is your sense about the primary season? >> the average tea party republican and the average establishment republican would vote the same 195% of the issues. there is hardly any difference in policy. there are some people who are very loudly different on process or tactics. the biggest thing is there is a handful of political consultants that are getting rich running campaigns against incumbent republicans. there's an article this week, $9.7 million spent by conservative republican groups attacking republican senators
and only $3.6 million spent by republican groups attacking the democrat senators. most republican donors want their money spent being autocrats. as long as these guys can raise the money and get rich doing it that will continue and it has not been driven by tea party grassroots republican conservative activists. it has been driven by half the people getting rich doing it. >> what is your sense as you look at the field, is jeb bush in and how strong a contender would he be? >> i do not think any will them well make a decision to run. the 2014 is the most important race. we have attempts to take report -- control of the senate. that would change the dynamic in washington tremendously. the republican house can pass legislation, it never sees the light of day in the senate and
everybody knows it is not going to see the light of day in the senate. if both houses were republicans you would have a lot of things sent to the president. he will either have to sign or veto. that will change the dynamic and it will be harder for the administration to take the position they can do anything by executive order that anyone in the white house wants to do. that is not accurate but it is harder to stop it was one house than it is with two because you have to go to court to stop those kinds of things. >> if there is a republican senate and house and president obama is still in the white house for the final two years of his term, does that improve the chances for an immigration bill that you could support? >> i think if president obama would work with congress more often he would get a lot more cooperation but generally, this administration's method of operation has been to criticize and attack the republicans, to
call them evil, to invite paul ryan and john boehner to come to a presidential seat and sit in the front row and then the president spits out how terrible their budget is and how heartless that they are. i worked for ronald reagan. we had a democratic house every day he was president. he not only learned to work with them, he learned to like them. they did not agree. he compromised and everything but he wanted to get the toothpaste out of the tube for the american people and i say bill clinton is the same way. we have not seen that in this administration. if that changes because both houses become republican that will be an additional added benefit. >> one area of potential common ground if the sides can't figure out how to pay for that infrastructure investment.
>> this always seems to be one of the difficult issues. how to pay for things. we will look at the food fight over the term all natural. you see it on food labels. what does it really mean? i will be fined by the founder and chief executive of the company nothing but foods. this is "taking stock" on bloomberg. ♪
foods more questions are being raised about food labeling and the meaning of the term all natural. for more insight i am joined by two executives in the health food industry. jerry graham is the founder of nothing but food and stephen -- steven laitmon is the ceo. how did you get involved? >> it was a reaction to what was on the market. after finding products that did not satisfy tastes and flavors and without fillers and processed sugars that you do not need i decided i would make my own. from starting in the kitchen with the recipe and realizing that i had a product that other people would want to sell or buy. i started selling them at shops around the area. >> it is now grown to a business that can be -- food can be found in costco. >> right now we are in costco
and stores like fairway and i happened to walk into one of these coffee shops looking at the alternatives for breakfast and i tried one of these bars and i was so taken by the product i turned it over and said do you want help with this because if think you have something special. there is a lack of products in the market that taste -- really elevates taste. if you want to eat healthier we have to start with something that is taste-driven. >> what characterized something as all-natural in your mind? >> all-natural is nothing artificial. no chemical processed ingredients. completely all-natural from the earth the way nature intended it to be. what jerry has been able to do is take all-natural ingredients and combine them with tasting at the forefront but no artificial ingredients ever and create something that people are gravitating towards.
>> does it cost more money to produce this kind of all-natural food whether they are snacks or serial? >> absolutely. this is a lot less money. this is what people wanted and that is what we put in our bars. it is a little more expensive but when you're going for taste and you want to give people what they want and also something that is healthier you pay that price. >> what about private label operations? your products are available. >> we do select private label opportunities with consumers and brands that share a demographic similar to our own. they are available at all their locations. >> what about funding, are you looking for more money, what would you like to do next
>> we are in the process of raising money right now. we're talking to a bunch of different private equity investors and some banks. we are in circle up which is a crowd funding platform. we have had some incredible relationships, and of their. we're launching our packaging nationwide. we have a new sales team that we brought on board who is a great group of people. >> the last point to you. is there a particular food that you would like to make that you have not added to the nothing but line? >> i have so many recipes and ideas i think people have to wait and see. because i want to surprise people by giving them more products that speak to them taste-driven. just wait and see. there is a lot coming down. >> i want to thank you very much for being here.
>> this is "taking stock" on bloomberg. i am pimm fox. if you happen to be in brazil for the world cup that means you can ask to sample the businessman's special but that is if you know enough to ask. to explain i am joined now by katia porzecanski. why are they doing this? >> there are local options,
anything that is more to the local tasting. >> what other problems have a habit in brazil? >> there have been others that they have not compensated for workers, there is a worker that said that he gained 60 pounds after working at mcdonald's over 10 years because he had to eat that food. and only that food. this is -- they have very strict labor laws in brazil so this is the troubles that countries -- companies run into. >> have they had a tough time complying with the laws in brazil? >> walmart has ran into some trouble. they're accused of overworking their employees and not compensating them properly. they have been sued as well.
in these countries you have union laws that change from state to state and they're very detailed and particular. you can get in a lot of trouble for not complying. the courts side with the unions in the majority of these cases. >> it sounds as though doing business can be more of a challenge than you would first thing. what if other -- what have other companies found? >> you have the world bank. brazil is ranked 116 out of 189. it is not that easy because you have a government regulation on a lot of companies. right now the government is requiring an increase on taxes on beverages. companies are annoyed with this because they had agreed not to do this until after the world cup and now they are increasing taxes on these beverages for the second time in a month. it will eat into revenues.
you have a government that is being incentivized to get some coffers ahead of elections. >> i want to thank you very much, katia porzecanski. the yankees are considered the ultimate sports franchise. one of its legends is willie randolph. he is out with a new book. he told me earlier why he wrote the book. >> i have been in baseball all my life. my mom talks to me all the time about seeing me around the house. i have been loving the game for a long time. i signed in 1972 with the pittsburgh pirates. i have been in baseball almost constantly for almost 50 years of my life. and so since i'm out of the game
and i'm not managing or coaching i thought it would be a good time to share my experience from my life, my stories with the fans. >> it is entitled "the yankee way." when i was going to be able to interview you people said he is known as the yankee. he has played for a couple of other teams. coaching the mets. why is the book called the yankee way? >> it is defined in different ways but for me the yankee way is simply about winning. it is about legacy. it is about being a part of history. and going about your business with expectations of winning championships. i have been fortunate to be part of a lot of championships. >> you feel that on a regular basis as a yankee. >> if you are with the yankees -- derek jeter feels that to this day.
you feel that because once you walked into the clubhouse you are around these great players. not everybody. after joe torre took over, we got back to some calm. the championships speak for themselves. it is about the legacy of what the yankees are and their winning tradition. >> as a yankee, do you notice while you are playing the whole business of the new york yankees whether it is the media, whether it is television, appearances, commercials, do you feel that when you are playing? >> you do. especially when you win the championships. you do feel that. we're almost treated like rock stars in a way. we get a following all over the country. there are some many fans all over the country. we always get a big crowd of yankee fans. we do feel that. it is one of the strongest brands in sports history.
>> what do you think about big business in sports because the yankees may be -- they can claim title to being the first big business of major league baseball. that seems to be pretty standard right now. what has that done for the game? >> the popularity has gone through the roof. the fans love it and it has become more international. we are global and japan ended in places like that. it is blowing up. the nfl has their brand but to me baseball is america's pastime. >> you served as the manager for the new york mets. there is a rivalry going on right now. how do you feel about the yankees, you are one of the few people who have done both. >> there is a weird tug.
even though you are on different leagues, you want to be the one they talk about on the front page. you want to be able to celebrate and have that tickertape parade when you are riding down the canyon of heroes. it is a competitive type of thing going on but it is respectful. for the most part the players really enjoy it. certain rivalries are bigger than others. in new york, the subway series is really big and it is more for the fans. when i was playing it was more of a hatfield and mccoy's thing. we want to do it and we want to win, but it is more for bragging rights. >> it sounds as though you have a lot of competitive spirit that is inside you. >> i love it. >> a book is great but what about using what you have learned to maybe be a general manager somewhere else, be a manager again. >> thank you. i will love to manage. i had a great opportunity with the mets. i lived the dream as a young
mets fan growing up and blessed to have almost one pitch in this series. i had a great bunch of players. >> you remember that moment almost every day? >> yes pretty much. i have dealt with it and we while to get over it. you give your heart and soul to the game and you get passionate about what you do and you get one pitch and i have been in a lot of world series but when it is your team and you are the manager it is special. it is like that father-son relationship. they do not have that ring. for me i look back with fond memories even though it was devastating at the time. i would love to have an opportunity to do it again and lead my team to the promised land. >> i will throw couple of names at you. robinson cano. >> one of the best young second baseman in the game. a little disappointed he is not
with the yankees still anymore. offensively and defensively one of the best in the game. >> derek jeter. >> he is mr. baseball. i had the honor and privilege to have him as a rookie back in 1996 when he first came up. it has come full circle. almost 20 years later he is going out as one of the best shortstops of all time and probably one of the greatest yankees all-time. a class man on and off the field. i have had a small part in his development. he is the epitome of what a baseball player should be. >> mariano rivera. >> the best ever. how often do you get to touch greatness, be around greatness, call greatness your friend? he does that. i have never seen one person dominate the way he has for so long. pitchers have their ups and downs. good years and bad years. consistency is the word for him and just a great human field -- human being. with his church and religion.
the best to ever do it. >> joe torre. >> one of the best leaders i have been around. the headline says remember team is joe. the perfect guy to resurrect the yankee legacy. there were some lean years. we started with showalter in 94, 95. '96 is when we started that dynasty. >> my thanks to willie randolph. his book is "the yankee way." coming up, a wall street veteran has some practical advice for students, for a -- everyone in terms of how to get job and develop a successful career. ♪
>> graduation season is just around the corner. students, are they really prepared for the real world? ben carpenter says in many cases the answer is plain no. the wall street veteran has written a book that is called "the bigs." i will let you tell the story of why you decided to write the book. >> i decided to write the book because my eldest daughter avery got her first job post college almost exactly two years ago and the first thing she wanted to do was to ask to start a week later. i realized at that moment that this daughter of mine who is so engaging and so bright and so
well-educated did not understand what the real world was going to demand of her. in an absolute panic i sat down and typed out on my blackberry 22 bullet points of what she needed to know in the real world and then i did not stop writing. >> part of the book describes the actual process of you writing and staying up until 2 a.m. for many nights jotting down all of these things. describe a little bit about your itinerant life and how you felt the rug financially had been pulled out from underneath your family and how that cause you to reach inside yourself to be a success. >> that is it. it was actually very emotional running about all those things. my family started out very stable, nice community, lake forest, illinois. my dad was working at a bank.
and he lost his job and he ended up getting a job as a plant manager in new hampshire. he had the job for two years then he lost that job and we moved down to st. louis and the same thing. we ended up in williamstown, massachusetts. this downward spiraling of the families finances definitely gave me the incentive to want to make a living. >> let's go through some of the major pieces. why is it called "the bigs"? >> it goes back to avery. my daughter had been given an opportunity to play in the big leagues as if she had been given the position with the new york yankees and she did not realize it. and so that is why i called the book "the bigs."
>> start out with think of your boss and your company before you think of yourself. >> it is an interesting dynamic here. because in a lot of ways, no one is going to look after your career but yourself so you do need to be self-centered about where you work. but when you're on the job you have to think about the company first. your boss, your coworkers and one of the things that people do not understand, young people do not understand is that it is not just your boss you have to make happy. the way your boss feels about you is the way everybody else in the company feels about you. that is what you need to focus on as an employee. >> this idea of putting yourself second to the company and to the boss, that also brings rewards that may not be apparent at the present but happen in the future. >> i think that is absolutely the case. you need to keep the company first and a lot of people often think particularly new managers
think they need to represent their department. and they need to fight tooth and nail for their people or themselves. all managers and employees have to put the company first. >> they have to be creative in both. >> absolutely. >> you mentioned that comfort and success don't necessarily go hand-in-hand. >> i think not being comfortable i think is -- really stretching yourself is very important. >> do not do what you love, do what you are good at. that sounds like very practical advice. is it a shock to you that this is not more widely known? >> i do think it is counterintuitive to the follow your passion. i think that in my experience, people are most happy doing what they are most good at. and so if you really have a
talent for something i think you will grow to love it. if you have something that you are passionate about doing it may well be better kept as a hobby rather than as your primary focus of that is that where your real talent lies. >> the last one as an example, try different fields while you're young. you do that as well because you had a career running a very famous bar in new york city. >> yeah. i think that is absolutely true. i think i feel like it is easy being in my position giving advice to young people, college students. it is difficult to give advice to a 40-year-old about whether he should stay at his jobs paying the bills or do something else when he has dependents. that is why it is important for young people to get on the right track early on and to try a lot of different things before their weighed down with
pop surrealism and street art. i am joined by the editor-in-chief evan pricco. so, how do you describe juxtapoz to people that may not be familiar with graffiti art and pop surrealism? >> if you go back to 1994, the magazine would have been inspired by psychedelic poster art, underground comics, the burgeoning tattoo scene, graffiti, street art, all these scenes that were colliding. for all my colleagues in san francisco, comics are something that we bred. the art world tends to be insular and a little elitist. the founders started a magazine that was creating an alternative narrative and here we are two decades later.
>> circulation for the magazine, pretty good, right? >> i would say -- our website does amazing as well. if you are two decades old your circulation has to do be doing pretty well. our subscriber base has always been pretty strong. >> talk about shepard fairey and his obama poster. >> before the obama poster, he is famous for his "obey" campaign. the obama poster made him an international star. it helped the creative class combined to help elect a president. it was a major deal. he is one of the pillars of our community. >> give you another artist. mark ryden.
>> a pop surreal painter who opened the show in los angeles. he represents the more painterly fine art side of our community. someone whose studio practice is well known. he has become world-famous as well. >> ron english. >> ron is -- the representation everything juxtapoz magazine does. he is a little bit of the community at large. he is a pivotal member of the scene. >> and collectors. one of the many people who klutz this kind of art. >> he is well documented as a collector of this art. i have seen sean combs collect. -- the show opens on thursday. >> we want to thank you very much. editor-in-chief of juxtapoz magazine. this is "taking stock" on bloomberg. ♪