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tv   Taking Stock With Pimm Fox  Bloomberg  June 11, 2014 5:00pm-6:01pm EDT

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but this is "taking stock" for wednesday, and june 11, 20 14th. i'm pimm fox. today's theme is hospitable. those who want low-cost alternatives to existing cable television, how do they do a? we will find out. and a venture capital company that is focused on various hotel brands, such as marriott and doubletree. details ahead. and southern hospitality in a
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seersucker suit. the company about that manufactures those all cotton suits for those hot summer days. but first, headlines from su keenan. we have h&r block in the news, one of the top performers in the s&p 500 today, reaching an all new high after the tax services company posted fourth-quarter profits and revenues that beat analyst estimates. climbed 35% from a year ago. and another record high today on speculation that it is on the brink of a takeover. anadarko has soared since april when it agreed to pay $5 million to clean up a long standing pollution site, clearing the way for a potential suitor. and francois hollande will
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discuss an energy visit tomorrow. in talks with mitsubishi on a joint bid to counter ge. those are a look at the top stories. much, suyou very keenan. our other top story today, virginia republican aric cantor will step down as majority leader on july 31, this after his primary election upset yesterday. in a news conference moments ago, he said come a despite the loss he will continue to be a champion for conservatives around the united states, and that includes the issue of immigration. >> i will say that my position on immigration has not changed, not from before the election, during the election, or the way it is today. >> representative cantor was defeated by the college professor dave brat. mark silva, what are your impressions of eric cantor's
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remarks? >> he is very pleased with himself, which we first heard last night. he told his supporters to lose the long faces and life goes on. and today, he said all politics is local. >> what about the politics that eplace him in the house? >> that is very interesting because today started a number of names of floating and it look like a huge competition could be underway. however, it the republican pockets has scheduled a vote very quickly on june 19 to fill that position, and that signals they want to close it down fast. cantor has endorsed kevin mccarthy of california, and the house speaker john boehner called on his caucus in private today to see this as a moment of unity. >> do you think this unity will come for mccarthy? or do you think there will be push hard work
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-- harder forward? >> we have not seen much unity. i was just that the campaign a feisty one.nd june 19 might be >> what about house speaker boehner? what is his relationship to all of this and how secure is his position as speaker? >> it would appear to be's -- to be secure. he said this is time of continuity and not a time to upset the whole apple cart. i think they will look to the speaker to a ride that unity as the question of the number two is sorted out in the next several days. >> what about the issue of immigration reform act of this seem to be one of the issues in the defeat o cantor. >> those prospects are already nil. they're looking to the primary elections to give them some signals as to how far the issue could go. i think they got a very clear
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not a good it is issue in an election year. >> mark silva joining us from washington, d.c. now for more on changes in the executive suite of aig. position thecutive parting september 1, earlier than thought. for more, i am joined by betty liu. shames about robert m a meauchet and his decision to step down early. >> the only thing surprising about this news, really, is that it came earlier than expected. no one was surprised that he was going to step down. he said he was going to in february. he just wanted to do it a bit earlier. and the reason why, he said, is that he felt the board was
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taking too long to make this decision and that the company was on hold because of it. i actually talked about him last night recently. i set a date in february to make the transition, but i also said in order to make the transition at aig, it would have a newortant to ceo. the transition is taking too long." most of the people in this world have praised benmosche . here is what feinberg said this morning on our program about benmosche. effective full stop he knew everything about the company and he came prepared to treasury and we personally in -- personally negotiated each and every compensation package.
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he set the gold standard for this. >> let's talk about who is going to take over for robert benmosche. what type of changes and what kind of background? >> peter hancock is a 20 year veteran of jpmorgan. he came to the company in 2010. he has big shoes to fill them as feinberg had mentioned, but he's also got other big additions to fill now that he will become ceo. run got to find a person to the property and casualty, which is what hancock did. to see whether winthrop, another possible successor, will stay at aig. if he does, he needs to find a good candidate to run the life and portion -- life insurance portion of aig. , it is well-known that he has been fighting cancer since 2007. he said to me yesterday that it is still there and he is fighting it aggressively, but he
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has no plans to take another job full stop he wants to go back to his vineyard in croatia and relax. next -- >> it should be a celebration at aig as benmosche really save the country -- the after the debacle of 2008. >> that is right. >> thank you, betty liu. is providingin some perspective on what it is like to be a boss. in a candid interview with charlie rose camesa a certain level of paranoia creeps in from time to time. >> i'm sure i am paranoid. >> about what yet complex every time the phone rings -- about what? >> return the phone rings too late at night or too early in the morning i am i, o, my god. and in fact, it stopped ringing and i had to call people at work to find out what i missed. >> more with gb thicket of lloyd lane fine.
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that is at 8:00 and 10:00 eastern tonight. "taking stock," i will introduce you to the producer of yet tv -- yip tv. and if you plan to bet some money on the 2014 world cup, we have the static crunching predictions for you. it is all on the "road to rio" coverage. ♪
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>> the media business, if anyone has ever told you, is going through a shake up right now. from the -- from music to movies and television, it is all undergoing a change. joining me now, my guest has more than two decades of spirits building new and disruptive -- of experience building new and disruptive companies. .e is the founder of yiptv
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mike, thanks for joining me. let's talk about your experience. whether it is monitored or yet , you are someone you understand the connection between a medium and the media, the stuff that flows through to the customer. tell me about your background. >> we believe in being the conduit between the content and customer. before it was voice. today, it is video. we are able to build the technology around it to be able to do it. in the media, it is different in that we are connecting to satellite instead of telephone poles. >> the technology is the easy part. the experience that you bring to it, that is, from bondage, tell people what you did there, so they understand your particular specialty. --vonage, inch tell people what you did there so they understand your
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particular specialty. >> we decoupled that and we allowed the internet to be the medium for which we would send and receive calls and provide emergency services and become it -- a replacement service to the a cost-effective package. >> all right, this decoupling, i want to see if we can couple to the music industry and what happened when the internet came along and offered people access to all of this music. the music industry seemed to be caught flat-footed. >> they were asleep. that is the best way to put it. it is not believe, could come in and use the internet as a medium to get to consumers. -- instead, they loud the they allowed apple to come in and control the device. as a result, the music industry lost the power to be able to monetize through the internet. >> is that disruption going to have the same result for
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television broadcasters and able tv operators? >> it is really a new form of distribution. we are the fourth generation. the first generation was over the air. the second generation was the cable. the second -- third generation the satellite guys. and here we are as the fourth generation using the internet to deliver that. >> with this fourth generation, do you have a specific hardware piece? what our young people willing to spend for sports, for entertainment? what device will they be using? >> we believe the second screen will ultimately become the first screen, but it is really your smart phone, your tablet. and it is broadband internet. that is where we will deliver the service, and we see it in the form of apps. apps are what going to -- are what are going to drive smart tvs and tablets. >> is this accelerating the cord cutting process? >> i think that has been in motion for a little bit of time now. quarters, thatr
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is, the new millennium's that are coming up. they will find their content through the alternative means of the internet. but when the cord cutters are there, it will be a nice alternative to be able to watch the content that they want on their time and under their control. >> the content that they want, you say. this means the oligarch purchase --ala carte purchase of television. how many channels? >> we have 127 channels in the u.s. and over 200 internationally. we are very diverse. >> the combination of t-mobile and sprint, do you think that will happen and what will that due to the lance cape? >> o, i hope so. my buddy, john leger, there at t-mobile, he's got a unique way to dash of communicating with
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people. he has really taken t-mobile from zero to hero. i think it will increase the network coverage, because when you bring those two behemoths .ogether, it brings the 4g and that is the disruptor. broadband has displaced cable and satellite. i hope it goes through. i think it is great for consumers and will deliver a wider, larger, and better brats brering -- and a better eadth of offering. >> thank you for joining us. coming up, we will take a look at the hospitality industry. you will meet the chief executive of their lodging, a private equity group that specializes in hotel investments. ♪
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>> the hospitality industries among the largest employers in the u.s., indeed in the world. its health is vital to the economy. joining me now with a long and successful track record in the hotel, real estate, and travel technologies, the chief executive of fair lodging. think you for being here. understand a to little bit about your background. you started washing dishes. >> i did. i started at a howard johnson's and i worked up to a soda jerk. my wife likes to say that i'm no longer dealing with the soda. >> but you are still together. >> you bet. user did off washing dishes, and i know you went to cornell. how did it happen? were you bitten by the hospitality bug? >> it is an extraordinary industry because the
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opportunities are unlimited. and it is not brain surgery. it is not a hard business to understand. , makingare of people them happy, anybody can do it that is dedicated to doing it, and the opportunities are unlimited. as the son of a construction worker. i'm the only one in my family to ever go to college. the generalcome manager of a hotel, then several hotels, and i had a strategy for marriott form -- and the head of strategy for marriott for many years. it is a remarkable distance for those who want to get in, work hard, and apply themselves. >> you've been very successful at this, not only in actually running all of these businesses, but ultimately in selling a business. most recently to brookfield. tell us about that. >> my partner and i have had fair lodging for 25 years. over that 25 year timeframe, we have achieved a 26% rate of return annually. very very fortunate. a lot of the -- a lot of good
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things come to those who work hard, i think. brookfield is a great company with a large platform in real estate, but they didn't have a lot of exposure in hotels and they did not have a hotel platform. it is a great marriage. our company gets access to capital. they get access to hotel investment opportunities globally. be more excited about the next five years. >> let's talk about some of the potential investment payoffs. toause i know in addition the hotel and lodging business, there is also the technology that surrounds the industry. you have been investing in some of them. explain a little bit about things like room optimization, and how to dynamically price different types of technology. >> sure, sure. technology has been changing at an extraordinary pace in what is essentially a business that has been unchanged since mary and
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joseph were turned away from the inn. and essentially, the geniuses are in the garage, finding out ways to do new things. nk, aample is hipmu company that has developed a powerful innovations platform. it was built by nmi t graduate who started when he was in m.i.t.-- built by an graduate who started when he was in school. he is doing really well. another company was started by two young men in las vegas. they can now tell us how many people will be spending and the night -- spending the night on any given day next september in st. louis. they can look at the airline data and determined that if you are flying in on tuesday and out on thursday, you will be there for two nights. >> the companies that do not have this technology have a disadvantage. >> absolutely. hotel industrye
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goes, the technology is there. you've also got to deal with things like wages. what are your thoughts on the minimum wage and the attempt, at least by the administration, to increase the minimum wage nationally, although it is a local issue? some is a local issue, and increases make sense. everyone who works for us makes minimum wage anyway. -- makes more than minimum wage anyway. that is not a big drawback. in places like seattle where they are talking about a $15 minimum wage, where they have passed that now, that will have a very big impact on young people starting out with me. if you think for one minute that going tos is not automate the ordertaking at the window, you are wrong. they are, and those jobs will disappear. for me, starting as a dishwasher, ok, maybe they won't replace all the dishwashers.
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but a lot of those minimum-wage jobs will disappear. >> they are the first step on the ladder. >> a lot of those jobs will disappear in a high cost environment. i'm disappointed. >> tell me about the first test you are taking in china. venturesso got some going on there. >> when i go to china and i talked to the government officials on hospitality leaders in china, they think i'm johnny carson. because you can see what is going to happen in china exactly as it has happened here in the u.s. in the 1950's, president eisenhower came forward with the defense highway system, which is now the interstate holiday system -- highway system, and it led to the creation of holiday inn. and then we saw the creation of the jet airplane and that enabled planes to fly over the weather, so they became more
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reliable. >> it is all going to be done again in china. >> it will be exactly the same in china. >> keep us up to date. the chief executive of fair lodging -- thayer lodging. still ahead, world cup fever, next. ♪
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♪ >> this is "taking stock" with pimm fox. marketake a look at the moving headlines. we want to go to my colleague, su keenan in the newsroom. >> big change in congress. eric cantor has announced he will resign his leadership post at the end of july. this comes less than 24 hours after cantor lost his virginia primary election to a little-known and underfunded candidate backed by tea party groups.
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i would say about the tea party, remember rugby -- remember what the acronym means. taxed enough already. all of us conservatives and republicans believe in that. when the tea party first came about in 2009, i believe it was in reaction to the tremendous overreach on the part of the obama administration. cantor also said he will support house majority whip kevin mccarthy of california to replace him as majority leader. jpmorgan chase may have to cut jobs and reduce competition. if trading revenue fails to rebound as expected. the longer-term question, she says, will we had too much capacity. for the first time since the u.s. housing crash, condominium towers are being built in
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downtown boston, seattle and los angeles. back in favor after rental demands pushed the apartment vacancy rate to the lowest we have seen in a decade. thanks very much. the world's attention is being turned to latin america this week. the world cup begins in brazil tomorrow. brazil versus croatia. for those who like to put money hasuch things, eric chemi been digging through the numbers for us. tell us about the variety of predictions out there. >> there's a lot of different protections out there. all of them havef the same haver t --all four of them the same big four teams up front. everyone can agree on them as the top four. starting at fifth place, it changes up with teams like elgin and the netherlands. what is interesting about the brazil pic is you see that range anywhere from 20% all the way up to 50%.
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>> why are all these predictions so >> where all these predictions so different yet the critics -- >> why are all these friction so different yet the quick because everyone has different factors. -- so different? >> because of one has different factors. the players keep changing every year, so depends on how far you valueack to weight the of different games. >> this makes soccer not very printable based on what you just told us. >> it is one of the most unpredictable sports because it has such a low score. when you talk about things that that is whatgoals makes it so random. but over long trend, they work themselves out. the host country has a big advantage in these world cups. latin american teams generally always win latin american hosted
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world cups, for example. >> eric tammy, who do you believe leave is going -- who do you believe is going to win, based on your analysis echo >> -- based on your analysis? has a 20% chance of winning, but there is an 80% chance of not winning. they are the favorite by themselves. much.nk you very let's stay with latin america for just a moment, the story now for venezuela. the institution of prostitution is legal in venezuela, but currency trading by individuals isn't. none of this would matter if the economy in venezuela was not in such a mess. here with details of bloomberg's bluebirds --ls, bloomberg latin america reporter. how would you put it into terms stand, thecan enter
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state of economy? >> it is a mess. economists are expecting the economy to shrink by one percent. right now, it is declining by half a percentage point. there is an industry -- is not industry in this economy. there are not jobs. there is food shortage. rampant, 60% to 70%. we are dealing with very difficult tenets of living. --the for cold economic difficult economic times for those who live in venezuela, despite all of the oil which is in the country. >> yes. >> so now, let's talk about prostitution, which is legal in venezuela. and you have written a story that documents how working as a prostitute gets hard currency earnings, which is vital to these women's families. >> my colleague interviewed several prostitute in a port town. basically, this is something they were doing once in a while before, but now this is an 70%omy that imports about
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of their goods and services. you have lots of sailors coming in and out. they go to the port towns year-round. and they are able to charge in dollars. and by charging in dollars, they are taking advantage of this loophole. they can sell those on the back -- on the black market for a lot more. and there is just a small sector of the economy that has access to dollars. it is the people who come in contact with foreigners. taxi drivers coming from the airport, cleaning crews at .mbassies they are part of this small group of people that can access the dollars. >> is the venezuelan government trying to crack out on the currency trading that results, because in this case the women have u.s. dollars and they will exchange more, buy things with them? >> yes, it is legal. they try to shut down currency
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shops where they can. it is done in patches. they tried to create a multitier currency system. you have an official rate, then a second rate, then a third rate, and in the black market. little by little, china -- they are trying to open it up, but the truth is it is not going to happen. >> and based on the reporting that is done, the women see no other economic option. >> right, consider this. they can charge $60 an hour for sex. will exchangethey that on the black market for currency, an their hour. the minimum wage is the same amount per month. considering that for their economic opportunities, that is a good deal. >> thank you very much. coming up, maybe you don't have
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time to do your own montreat. we will speak to an executive who has raised $10.5 million to help you through the use of your phone. and yes, believe it or not, it is national seersucker day. you will meet the chief executive of one of the oldest seersucker companies in the united states and find out why that southern fabric style is making its way across the nation. ♪
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>> doing laundry, yes, it is drudgery, a district -- it is dreaded, and time-consuming for people. it also happens to be a $15 billion per year business. one company that is looking to simplify the process is washio. picks up the that clothing and washes them and has them back in a few hours. joining me is jordan.
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we know that doing laundry can be drudgery. how did you decide this was the drudgery you would combat? >> for me personally, i hated doing laundry as well and i saw the rise in look on demand -- the rise in on-demand services and i thought, if i can order things for my car directly that way, why not my laundry? >> this is an application a kind of sits in between the actual doers of the laundry, the laundry themselves, and the customers. applicationoad the on the iphone, or the web, and one of our drivers will come by your house and pick up your stuff. they will give you nice bags for your wash and fold and dry-cleaning and 24 hours drop it back off. >> what kind of association do you have to build with the dry
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cleaners and the launderers that exist? >> we have built up a network to help us facilitate this. we are not working with the smaller guys. we are working with the big facilities that can take on the volume. >> if that is the case, why would they not build the app themselves? in other words, why would they let washio be the brand they connect -- that people connect with? >> it is something that we are trying to improve on a daily basis. we have spent a lot of time and money on it. it is where we are trying to dispatch them everyday. >> tell us about some of the sendingces, from people out one item to everything they've got. >> i think one of our customers gave us six ikea bags full of dry-cleaning one-timed. that was one of our biggest orders. youhave seen it all when
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have seen someone's dirty laundry. >> literally, and figuratively, right? what about the outsourcing? they have to make money, too. >> we keep your card on file and with the dry-cleaning, they charge per item, and with the laundry, per pound. we are able to negotiate wholesale rates with the facilities. located? >> weu are based in santa monica, california. that is where my team is. we have service in los angeles, san francisco, and washington, d c and with the news of the latest funding, we will be opening into new markets. >> any plans to opening, let's say, new york? are there certain prescriptions that say, i want to go into one kind of market and stay out of others? >> obviously, we are more popular and successful in places where there is a lot of density. in places like boston or chicago
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where users do not have access inside their own apartment to laundry, time is important to the consumer. some of thebout celebrities that use your service. has made antcher investment. we also have not, the wrapper, calvin harris, the dj. we have some great silicon valley angel investors, as well .s our newest investors >> are you looking for more partnerships, or just expand to more cities right now? >> right now, we are looking to expand to new cities and provide opportunities and expand certain cities we are operating currently in. we are looking to expand beyond the city and go south and east as well. process of thehe
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laundry echo some people are very finicky. how do you accommodate those things? we ask people what type of starch they want or whether they want their shirts in a boxer on a hanger. i think over time, we are getting better and better at knowing their customer -- knowing our customer. >> what is the price range of complex on the wash and fold side, about one dollar 60 -- $1.60 per pound. and with the dry-cleaning, a laundered shirt is about $2.25 and a suit is about $12 to $15. >> and i'm assuming you use it on a regular basis. >> absolutely. i hate doing my own personal laundry, so i looked for a solution i could use my cell. not only am i the ceo, but also a customer. >> thank you very much for your time. congratulations on your funding. >> things so much. >> summer is here and that can
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mean only one thing. it is national seersucker day. i will speak to the chief executive of the company that actually created the seersucker suit for george w. bush. ♪
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>> all right yes, summer is around the corner, but lawmakers have found a solution to beat the heat, wear a seersucker suit. it is all part of national seersucker day. the al qaedaing clothing that is made for some -- is donning the all cotton clothing that is made for summer wear. i'm joined now by the chief executive, president, and great granddaughter of joseph haskell, lori haskell. i am wearing that haskell seersucker. >> you change clothing.
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i appreciate that. national seersucker day. how do you get a national day 4:00? loth?shington -- for a c a washington has always been fan of seersucker. it is great in the heat. it started in 1976 by senator trent lott of mississippi. bywould kick off the summer having senators and congressmen on both sides of the i'll pose for a picture on the steps of the capitol. that went on for several years. and then it waned some, and with the help of congressman bill cassidy from the state of louisiana -- >> which is where you are from. >> which is where i'm from. they started that back up and as we speak, today there are several congressmen and senators taking pictures for us. >> tell us about the history of the actual fabric. we will get to haskell in a second. where is the seersucker made yet complex seersucker is the weave
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of the cotton fabric -- where is the seersucker made? weave ofcker is the the cotton fabric that helps keep it off of your skin. it is an indian word for sugar. -- foremilk and sugar. it is this week's part -- the sweet spot postop >> they would use this on a regular basis as workwear. grandfather, joseph haskell, decided to take this cloth that they were using for laborers suits and make it into gentlemen's clothing. -- to startto mark making seersucker suits. he popularized it. and nowed out in 1909 haskell is not only doing tailored clothing, but seersucker t-shirts as well. >> i'm going to get to that
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expansion, but in terms of the of course,cause air-conditioning is something for the modern era, but it was not installed everywhere. you had to where we light clothing -- you had to wear light clothing. it had to be able to withstand great heat. what happened to seersucker as a fashion item from the south of the northeast? >> it has been popular all over postop and let's face it, hot is hot, in a matter if you are in washington or new york or, certainly in louisiana where it is hot. the seersucker suit is born out of necessity. nice, butd it to look not to be in a heavy wool or suit.-- or flannel >> and it became popular in the ivy league, and in princeton. >> it did, and now you find it in board rooms from coast to coast. but there is also a big emergence of young professionals who where it not only as a suit,
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but separate. funcan be more original and in your seersucker, not just what is traditional and perceived about suits. >> let's talk about haskell and what you plan to do with the company and build on this tradition. you want to update it or offer different types of clothing items? >> we have been doing a lot of things. we have started a relaunch for this spring, spring 2014, with designers sam shipley and jeff hellmuth. and we have decided to have a lot more fun and bring haskell back to its heyday. not only are we tackling the fun aceerwear, but we also have -- a fall summer line -- a fall clothing line. we also do wools and outerwear and sportswear, all sorts of things. and what is really exciting is that we are doing it all made in the u.s. now. the factory for haskell was
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originally in new orleans, and waiter we built a factory -- and later we built a factory in mississippi. when we relaunched the company this year, it was important to have it made in the u.s. again after having it abroad for a few years. it is important to have those bragging rights again. >> i think it was your great-grandfather, one of the stories will stop it had to do with the idea of wash and wear. did he actually take a dip in the ocean to prove that once it dries it looked fine? >> he did. he was in his typical blue and white seersucker suit. he was very creative and decided that he's going to do a stunt at inlorida trade show back 1940. he took a dive back into the atlantic ocean. he had a lot of people looking at him. he came out, undressed down to his boxer shorts and suspenders.
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and he hung his suit up to drive. as soon as he finished what he was doing, he put his suit back to a cocktailt party that evening. that was his example of wash and wear. it did not wrinkle, and it looked pretty good. >> talk about looks. is there a more -- is there something other than the traditional blue and white striped, and i notice you are wearing the red and white striped. is there something about the colors? >> you see a lot of blue and white, and even can and white and gray and white. the most requests we get are for red and white, green and white, and of course, lsu purple. >> now there is a color for you. congratulations. happy national seersucker day. chief executive and president of haspel. it is 56 passed the markets. the dow jones industrial average
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dropped 102. the s&p 500 is lowered by six. the nasdaq falls six. thanks for "taking stock does quote and i'm pimm fox. good night. ♪
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♪ >> live from pier three in san francisco, welcome to "bloomberg west." i'm emily chang. vr ceo speaks exclusively to "bloomberg west" outside of the videogame conference nla -- in l.a. the facebook deal went from handshake to signed agreement in less than a week. the target of massive protests in europe today. thatrivers are upset


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