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tv   In the Loop With Betty Liu  Bloomberg  June 20, 2014 8:00am-10:01am EDT

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ll is here. he is up for reelection this year. we will talk more about that race and much more. republicans have elected california congressman ken mccarthy to be the new house majority leader. that is seen as a boost for john boehner. equity futures in the meantime -- little changed at the open. there's a five-day winning streak. starting the day at another record high. the owner of all of garden reported quarterly earnings that missed estimates. investors are unhappy that they are selling the red lobster chain. a battle has broken out. siemens has picked up its offer for a french energy business. now they are trying to outbid their american rival ge. itsmens has reduced proposal's complexity.
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. tillie hyman has the breakdown -- julie hyman has the breakdown. are proposing with that $20 billion offer is that the cash component will be increased. they are trying to reduce the complexity and increase the attractiveness. the cash will go up by 1.2 billion euros to 8.2 billion euros. siemens is still offering to buy the gas turbine business. remember, they have a third partner. there's still that level of complexity. mitsubishi is going to hold the in a singles holding company rather than a trio. that is one thing that it is attempting to do. ge came out and said that our cash component is still higher than yours. not giving exact details. ge's offer value of
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remains below that. so, there is that layer of complexity. there is definitely battles her e. >> the stakes are high. what are people saying outside of this? >> it is a really tight situation here. the stakes are high and that is illustrated by the fact that jeff then melt is going to paris to meet with francoise hollande again. the ceo of siemens will also meet with hollande. one analyst is saying that if g1 deal,al, -- ge won the that would put them head and shoulders above their competit ors, which siemens does not want. ge is also trying to make its case by offering to sell off some of its rail signaling business and create a stronger
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rail company at alstom. so, it has been difficult to get any clear idea of who has an edge in the situation. in part, because not only do have alstom and its shareholders, you have the french government involved as well. the french government, some of the ministers have said they are happy they got involved. >> laying a little hard to get. julie, thank you. moving and shaking this hour, california republican congressman ken mccarthy -- he has just been elected house majority leader. he will succeed area can tour. cantor lost his primary race in virginia last week. mccarthy is from bakersfield. a farming town in california's valley.
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he has gotten more money from the tech industry than any other republican. that is unlikely to quiet the criticism from the tea party faction, which believes the leadership is too tied to business and the mccarthy is no different from eric cantor. another political shakeup is happening, this time in a garage. politicians are keeping their bmws at home and driving down main street in ford's, chevys, to protect against charges of elitism. i'm joined by our bloomberg news car enthusiast, matt miller. you have seen this trend on the streets. >> yeah. you see politicians normally driving a certain kind of car or truck. they are generally american cars only. there are some exceptions, but few and far between. they are also generally not the fanciest. charlie rangel had a cadillac.
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most are not driving super nice cadillacs or corvettes, but rather maybe a ford edge or a lincoln mkz, might even be a little too fancy. there are some roles. congressmen are allowed to lease cars with taxpayer money. they have to be lower emission vehicles. senators are not. they have to pay for their own ride. they also tend to pick less fancy, more american rides. >> did they a few years ago pick more expensive ones? >> no. politicians have always generally american cars. there has been this trend where they are their car in their ad campaigns. wolfe, who is running for office in pennsylvania,
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famously used his jeep in his ad campaign. his opponent, corbett, did an ad using a wolf jeep look-alike. truck,odge, super duty pulling up next to the tiny jeep ng, i have created 150,000 jobs and i am a big truck driver. i'm pretty sure it is the dodge. it has a lot to do with image. that is a more powerful vehicle. >> certainly a muscle car there. >> in motorcycles -- with cars coming you can choose any american make. ford, chevy, jeep. with motorcycles, you're only allowed five harleys.
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i don't know of any politician who drives anything other than a harlye. ey. there are a number of politicians that senators do not -- one is super, she drives a harley to a gun range in one of her commercials. statement --s not a >> it just illustrates this trend. not only using cars, but bikes. as far as branding yourself. >> and connecting to the average american. >> i think the average -- there's a politician who has $50 million last year, nine houses, but still drives a ford edge. illinois --, in >> thank you so much. . speaking about politicians and their rights, i want to bring in
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a scott rigell of virginia. before you went into the world of politics, your family owns dealerships. what do you drive? >> a ford taurus. i am a ford dealer, in full disclosure. i also own and ride my harley davidson. it is just a lot of fun. i think the reporters write and spot on. there is something about making -- the approachsent to governance. i'm not surprised by the report. >> doesn't become a gimmick? >> i don't think so. many members are actually living out of their offices. more than you actually think. i know that $174,000 is a lot of money. if you're trying to maintain a home in your district and put kids through college and have living expenses here, they can be challenging. i think it is important that we
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represent a fiscal discipline. >> let's turn to the leadership change that we saw yesterday. the primary loss for eric cantor, from your home state. how shopper you buy this? >> totally. i do not think there is anyone on record predicting this. it's done all of us. -- it stunned all of us. did not know the member who more to help our republican caucus than eric cantor. i'm very grateful for his service. every time he speaks in our conference, he gets a standing ovation. that is deserved. his replacement, kevin mccarthy, he is a good man. he will do a good job and i think we will see this momentum on the budgeting front. i think we will see a return to regular order, that is passing all appropriations bills before the end of the fiscal year. i also think we will see continued support for biannual budgeting.
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this is very important and these things can help our economy get more efficiency out of our defense dollars. it is the right thing to do and i think we are headed there. >> you have wanted to work on several issues. whether it is the budget or immigration or any number of other topics that you are closely focused on. do you feel that you can get any progress done given the faction, the tea party faction? >> it is very challenging. there are a lot of friends in the tea party. ishink the fiscal discipline what drives the folks who self identify and the tea party. you and i have talked about this. i really think that our trajectory is the next threat to our country. i share the sense of urgency about this. i think that the approach must be engagement with our democratic colleagues. >> but congressman, the tea party answers to what they see discipline gone wrong
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in washington. holding the country hostage and not raising the debt ceiling. >> that is not going to work. 1/3 of therol 1/2 or federal government. we are truly the minority party. it makes clear the need to have a senate majority that is republican this flalall. that is really important to me, so that we can pass legislation. so much of the good legislation that will help our country's sits on harry reid's theft. it needs to get to the president of the united states. >> we will be back once more. scott rigell from virginia. coming up, digging up the dirt and election years. ♪
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>> in washington, primary season is winding down. both sides of the aisle are digging for dirt on their opponent. we go inside the republican research center of turning and dark arts into big business. >> user the video clips that can change an election. >> if it is a legitimate rape -- >> the opposition research that uncovers the indelible moments is big business. in big buys >> meet joe pounder. he has turned political research into a big commodity. >> there are over 30 different conservative organizations providing the research they need. we really go where the marketplace is. >> teams of researchers, to equiphave one goal,
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republican candidates with the most damaging information about their opponents. >> reaching voters through television is important. in the modern campaign, you need other tactics too. >> to miller is the executive director of america rising pac. lead inounder romneyons tset up by aides. they were deployed as a fix. >> our candidates were hurt by opposition research finds by democrats, most famously in the presidential election. you sell the bain capital issue. >> pounder and miller are already having an impact. they caught on tape in iowa icizing theit well-liked dean of a state delegation. miller runs the super pac side
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of the business. it is run by rapid response. pounder's domain has paying clients. they drop as much is seven figures for research quotes and video databases. as a for-profit, the company is free to coordinate directly with campaigns. young twentysomethings form the backbone. over 20 trackers are deployed across the country, stocking democratic candidate. >> when you join a house resort senate race, there is no equivalent of bloomberg. we have to create it. we have to get the video from the field. >> cataloging every move of the major 2014 candidate, and keeping a close eye on the big ones for 2016. they are not stopping at hillary clinton. new're launching a operation to track top
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democratic donors, like billionaire environmentalist tom stier. they hope to become the centralized research database for the party. they have an archive that can be used in cycle after cycle. >> they will stop at nothing. >> democrats take notice. business is good. >> when year ago, we were in an apartment with sick people. -- six people. now we have over 60 people across the country. >> very interesting. we're back with scott rigell. and phil mattingly brought us that story. congressman, how do you feel about the tactics like this? >> this is not theoretical. i have been on the receiving end of this. intop away from business being a congressional candidate, but never run for political office. it is bizarre and disconcerting to step out of your car and have somebody shove a video camera in your face and start asking you questions.
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not for the purpose of increasing the level of understanding of one's views. verrilli to get you off track and catch you in awkward moments. i think it is offensive and i think it has for the public discourse. members who are seeking office or politicians who seek office or those who hold up this need to be accountable for what they believe. i think that the deliberate, almost provoking someone into a statement is wrong. >> what was it that happened to you? >> i just recall so many of the incidents. you have to think through it. not happening the cycle, it was intense in my first race. someone present in my second. it was intense in the first race. every family went to an event, we had to think through it. more often than not, i might have been in a different car than my target. i might slip out of back door or something. not because i am afraid of engaging the public. >> you don't want to be
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attacked? >> right. it is not right. this is part of what is wrong in america. i share with people, regardless of party, humility is not weakness. we must elevate qualtiy. ity. this does not help. >> they have been very effective, have they not? >> they have. >> sorry, i was directing that to phil. >> they have. to the congressman's point, republicans are trying to counter democrats. both parties are doing this. you cannot disarm here. this is a new way of working great you have to try to get as much video as you can. as long as one party is doing it, the other is going to do it. it is just going to keep ramping up, so long as each side is trying at. >> how do they use social media? >> they're extremely active.
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they have multiple youtube accounts. they are very active on twitter. for a lot of their clients, they get these videos and put them online. their clients use them. social media has rapid response. in terms of letting people inside the party, both clients and candidates and campaigns know what they are working with. it is extremely important to their operation. >> thank you so much. thank you as well to congressman scott rigell for joining us once more. coming up, feeling the heat. ryan talks about surviving football fans and the media. plus, lance armstrong probably wishes he could jump on his bike and pedal away. another major lawsuit. ♪
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>> you are watching "in the loop. good morning. here's a look at our top headlines. carmax reported first-quarter earnings that exceeded estimates. they sell used cars and earned 76 cents per share. they also bought back 3.8 million shares for $174 million. atlantic city casino is pushing for a buyer. it has applied for bankruptcy. they opened in 2007 at $2.6 billion. they filed for bankruptcy in march of the following year. the casino may be forced to close for good if it fails to
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attract a buyer. they wrote a letter to employees. a $120rmstrong will face million fraud lawsuit. he is accused of defrauding the u.s. government by using performance-enhancing drugs. a judge rejected his bid to have the case dismissed. the claims made by his former teammates will let the lawsuit continue. the hour,inutes past which means that we are on the markets. you can see that we are building on the record gains that we have hit. we have basically seen a five-day winning streak. helped along by janet yellen's statement and press conference earlier this week that the economy is recovering. for rates will stay low some time. we are on the markets again in 30 minutes. the king of the economy, between april 2013 and april of this year, 22 thousand north carolina workers disappeared. what happened and what should be done is an economic mystery and
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the focus of a major political debate. mike mckee has the story. >> imagine you are unemployed. you cannot find a job like a lot of people working. the recession may be the only thing keeping you afloat. is it because you still cannot find a job or are you not looking hard enough? the state of north carolina decided to try to find out. unemployments last benefits by one third and cut the number of jobless eligible for aid from 20 -- to 20 from 2 6. that affected the extended benefits program. look what is happened to unemployment since then. it has fallen two percentage points and must than a year. it is now below the national average. north carolina is creating jobs. 75,000 of them in the last nine months.
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does that prove that an unemployment check is more of a burden than a benefit? here's where it gets tricky. the the same time period, number of unemployed people fell by 97,000. that is 22,000 more than the number of jobs. whichis less labor force makes the data look a lot better than it otherwise would. >> do we know what happened to them? >> that is a good question. with economic and political implications here -- intelligent economics. newh carolina's unemployment laws may force many people to up and leave the state. clearly, some of them are tired. some of them are discouraged. the north carolina labor force participation rate fell by one percentage point in the 12 month period. do those people come back as the economy picks up? that is becoming a big issue in north carolina in the senate r ace.
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we get new state data later this morning. y? what do the economists sa >> the same question is being asked nationally. north carolina has cut its benefits again. from 19 to just 14. it pays little more than subsistence wages. $350 a week. the average rent for a one-bedroom apartment in charlotte is about $900 a month. so, there is a good chance that those who cannot find work, but can move, might just leave. this has applications for other states. maybe we just get rid of the unemployed, rather than spend a lot of money keeping them afloat. >> some hard questions. thank you so much. as america slowly transitioned from manufacturing to a service economy, new patterns of media consumption rapidly alter our daily life.
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new numbers from the bureau of labor statistics ask the big question. >> what do americans do all day? the government has released its annual look at how americans spend their time. there's an interesting snapshot into the daily lives of the average joe or jane. americans do nearly eight hours of work on a day. 7.5 hours ofeek, work each day. there is some time each day for fun. or leisure activities. in 2013, an ordinary adult without kids, spent 4.5 hours on these leisure activities. if you add kids, it dropped to 3.5. day, tv was the biggest time suck. they only left couches to socialize with other americans. you'rere not at work,
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either asleep or apparently doing household chores. on a day that included chores, the average woman spent more than the average man. once you retire, it does get easier. in fact, if you are 75 or older, you spend half your day, that is 7.5 hours, having fun. reading accounted to 2.5 hours of every weekend. teenager spent the same amount of time on computers were playing games. teenagers also spent four minutes reading a book. the survey does not mention ipads or candle. -- kindle. >> very interesting. coming up, the view from the sidelines. we go one-on-one with rex ryan. what does it take to perform in the biggest market? will he win? and jon bon jovi may be looking to get in on the action. why he has meetings with the nfl
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commissioner yesterday? what is going on there? ♪
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>> today's big number is one billion. that is how much the buffalo bills are going for. they're looking for a new owner. parties isinterested none other than john bon jovi. had lunchr-old rocker yesterday with roger goodell in new york. sources say they seem to be talking business. the bills hope to identify a candidate by the end of july. can you imagine? staying with the ball -- one of bloomberg's owner took to the field with rex ryan. rex ryan discussed fans, michael vick, and what geno smith needs to do this season. scarlet fu was with rex ryan. >> take a listen.
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you have a lot of fresh talent around geno smith. to makee does he need the jump from rookie to a second-year quarterback who can be a team later in the nfl? >> the big thing is when he started to you at the end of the year. he figured out how to win in this league. one way is to protect the football. then, you have to score points. you also have to protect the ball. he did her tremendous job of that. he was so efficient at the end of the season. that is why i was so excited about how this team was finishing. we won three of the last four. as a team, we kind of grew together. we started figuring this out a little bit. >> building on that, will he have a year? >> i do not know about that. we just want to be as good a football team as we can be, regardless of the individual awards. >> can you lead them to the playoffs? >> i feel great about not just
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putting it on one player, but on our football team. i think our locker room can lead us. the guys in that locker room, the whole collection, will be our strengths. not just one individual. there is some better quarterback than us, that are head coach than us. collectively, that is important thing. one thing i know for sure is that we will give everything we have. through preparation, through work ethic, through desire, passion. we will give it all. >> the jets have not said anything. what did he say about the controversial michael vick? >> some season tickets have even threatened to boycott after they picked up vick. ryan says he believes in giving people a second chance. he says he has paid his debt to society.
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michael vick has done what he needed to do and it is time to play football. >> what about the money they make? >> a lot of people question why he is still the coach, given the record. he is the ultimate player's c oach. he is seen as a father figure. they go to him for it right on and off the field. i asked him what he says about money? >> what i always tell them is try to hang onto all of your money. do not send it. do not think that it will last forever, because it will not. you will not be in the top 1% of this country when you're out and done. do not plan on playing for 15 years. that would be a blessing. >> doesn't he look great, by the way? he has slimmed down. >> he had surgery? >> he lost weight over the last season as well. we will look for how the jets do. >> all right. thank you.
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now, the summer lady. she is turning the right camp into a big business for someone like you. and, looking into the sun is dangerous. not looking at can be even worse. what? detail straight ahead. ♪
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>> remember when summer break meant a lake side and summer
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bunk? there are now more specialty programs out there were teens can choose from hundreds of seasonal programs. that is a business opportunity. turn to thefamilies summer lady to match their kids, schedules, and budgets with the right summer plans. travers is the founder of summer lady. your matching families with what they want to do. why is there this demand now? demand becausege there are so many programs and camps out there. for younger children and older children. efore, you need somebody to help match your needs with the programs that exist out there. there is nowhere to do the homework that we have done for over 25 years by yourself and understand it and be able to a consulship in a short period of time. >> are you focused on only one area or are you nationwide? >> we're are nationwide,
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international, depending on the age of the child. our clients are national and international as well. >> it is too late, isn't it? are you too late now? >> things can happen yet for the summer. if you want a short period, a short session camp, you still can take care of that. >> not too late for someone who is a procrastinator? >> there is hope. >> how do you get paid? >> we are a free service to our clients. we are paid by the camps in the programs. ce is available to everybody. there is no cost to them. that makes us very enticing and appealing. >> you get paid by the camp? >> they pay us a fee. they are all under contract with us and that is how we fund our business. >> why would they want to do that? they have their own marketing programs.
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they have their website, their own public affairs. why would they want to partner with you? >> we serve a great purpose to them. we enabled them to be interviewing and considering families that are appropriate for what they do. we send them the right families for their programs. they are not spending a lot of time marketing to people and answering questions to families. they are just searching or not appropriate -- just learning about the programs. we match them up perfectly. the clients and their needs. >> what was wrong before? there was never anybody there to aggregate? to aggregate essentially all the disparate camps around your area? there is no one to put in one place> ? being,re we came into you had to do your own research. you had to network with friends and relatives, with businesspeople.
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edetate you came to know existed out there. because it works for your neighbor or family member does not mean that it will work for your child. every child is their own entity. their needs are different. you need to match up these programs. people like myself and my husband works with me -- we know these programs inside and out. we have been working with the director or owner for 25 years. we visit programs in session, on-site. we get to monitor the quality and see that they are delivering what they say they do. >> what is the trend? during the financial crisis, it was probably a lot more typical to recruit people and spend money on next or curricular activities. what about now? >> i would say that the trend had been during that crisis. this gave them the opportunity to kind of get creative and remarkable himself.
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they would create camping for the younger children. they started to create more shorter sessions. teen programs that do this like travel programs. and language immersion and community service, they also were shortening sessions. >> to make it more affordable? >> to make the time less than the cost less. they also bring in other programs, domestic. so that the airfare and travel to get the program was less. >> what are some of the most popular programs that parents are sending their kids to? >> it runs the gamut. younger children belonging to sleep way camp. it is more of a nurturing environment. and they haveder, the separation and get over the anxiety -- they go on to the team programs, community service, when which version, schools, travel.
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there are programs for the children. >> thank you so much. remember bruce springsteen's version of "blinded by the light?" he sings that seems song -- the song for scientists and colorado who watch solar storms. they can disrupt committee case in and in pin done sense of direction. this is a serious report. they could zap hundreds of transformers and leave 130 million americans in the dark or months. something to think about. coming up, pimco founder throwing some shade at a conference in chicago. we will tell you about those gross-isms we heard.
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carl icahn is at it again. he is calling for the sale of family dollar immediately. ♪
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>> if you hate going to the doctor, which most of us do, there is an app for that. there is ground breaking technology that allows you to diagnose medical problems from the comfort of your own living room.
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sam grobart takes a look at three of those companies. >> certain technological breakthroughs have a way of making our lives seem more like science fiction and reality. think about the first time used a smart phone or sell someone use a microsoft xbox connect. the future was happening now. these giant leaps have already changed the way we work and communicate. hownext step is going to be we take care of our bodies. we may be able to diagnose ourselves, using tiny sensors and the computing power in our hands. pany is developing a handheld sensor they will hold your fork head to get your temperature, heart rate, and other data points. they will send all of that data via bluetooth to your smart phone, which can share the data with you or e-mail it to your
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doctor. another company has developed a mobile accessory called -- which turns your phone camera into a ear source. you can send the video to your and get an air infection diagnosis and a prescription, without leaving home. a third company has developed an ultrasound machine. $8,000. less than this is being used to develop more accurate diagnosis. there are some skeptics out there. sensor andjust put a get accurate data, they implore. they may be right. these products are works in progress. they seem to be inevitable. 10 years ago, we barely knew what a smartphone was.
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now we are talking about driverless cars. if you look at the history of the future, one thing is clear. it is happening faster. >> very true. stop us if you have heard this one before. a billionaire activist has set his sights on an underperforming company. carl icahn says that family dollar should put itself up for sale immediately. he is willing to ask new directors to the board. he has taken a 9% stake in family dollar. he says the chain has underperformed its peers in a number of categories. so, that is family dollar. does not sound like it wants to sell at all. the company responded to carl icahn yesterday. they have met with him and have a shared goal, but they are not saying anything about the demand that they sell. and we have breaking news right now. we're about 56 minutes past the hour. this is a us-based
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pharmaceutical company. they're putting in a higher bid for a dublin-based shire group. this is another example of a u.s. company looking for a european target to merge with. this is according to people with knowledge of the matter. equityoverall market, futures are showing another higher open today, after a five-day winning streak. you have said, you have earnings -- some of the markets. pimco founder bill gross looked pretty cool at yesterday morning's conference in chicago. we will tell you what that was all about. cool shades. may not have aer lot of women working at her company. one of them has one of the toughest jobs at yahoo!. we will hear from her when we come back. ♪
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>> we are about 30 minutes away from the opening bell. indicate stocks will open higher and the s&p 500 is on a five-day winning streak. shares of darden restaurants are down almost four percent. it reported quarterly sales that missed wall street estimates. the ge ceo is in paris today to deal and that alstom is trying to convince the french government that his deal is better than the one from siemens and mr. beachy. siemens/mitsubishi. tell us the latest on the ge
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bid. tension isning, the rising in paris. jeff immelt just finished his meeting with the french president. ge has heavily criticized the siemens bid saying it was unrealistic and saying it was not binding and the cash component was still higher than siemens. siemens and mitsubishi raise their offer on alstom this morning. billion.ed it by $1.6 ge decided to make the deal less complex by creating less joint ventures and that comes as ge also is improving its offer on alstom last night. not on the cash component but on conditions, improved conditions on jobs saying they will also
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create some joint ventures with alstom as well as an alliance in nuclear technology. sell its rail to signaling business to alstom. a lot is at stake for the french company and its 18,000 employees. a decision will be made on monday. moment, julie, this is not just make or break for the french and alstom but make or break for immelt. >> potentially for his legacy. happen, there is some potential according to an analyst who spoke to that he can be laid at the feet of the french government. he is making a full-court press which shows how significant this is. pushwould solidify the
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jeff immelt has made to return g2 it's industrial roots and the ill-advised detour down their financial path that it took prior to the financial crisis. it's the chance to potentially boost the talk -- the stock price if the deal goes through. if the stock price goes up, that will be something he can point to as a more positive sign of his legacy. >> what have the french officials been saying so far? moment, the french president is saying they don't have any preference between the otherut we got reactions from other official today, the french finance minister saying that the ge deal was significantly improved and that proves that the government was right to intervene. ministerhat the prime saying at the end of the day, it
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was up to the company to decide. >> thank you so much. moving and shaking this morning, pimco bond guru bill gross -- you have probably not seen him like this, rocking shades of the morningstar conference in chicago. he told the conference he is a 70-year-old version of justin to go allant manchurian candidate on the reporters and hypnotize them into thinking he is a good guy. on a serious note, he said he is betting market volatility will remain abnormally low. pimco is forecasting a new neutral era, one with lower interest rates and lower global growth. joining us for more on growth and forecast and his behavior is the bloomberg economic editor
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michael mckee. we talked about bill gross and this slow implosion not only of his fun but the firm itself. what do you make of this? >> i talked to bill quite often and i think he has had a tough time with the fund. it has been down and they have had a lot of redemptions and along comes the split with mohamed el-erian. we will never know what happened between the two. the press reports have been that bill gross was the bad guy and mohamed el-erian was the good guy. the combination of the two things has bill gross trying to mend his image and public, lighten up a little bit and get people to smile and laugh at the same time deliver the message that pimco is still in good hands and it still making money. they haveast month been making money but it has been rough for them. >> the only way to ring back their reputation and their image is to perform well, right? >> that's the bottom line what they are doing is placing their
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bets on this new neutral where markets will be calmer and they will not make a lot of money off of volatility. set that people are selling puts and calls at pimco an option spreads on the s&p 500. they could take advantage of a much more stable market and sell bonds as an alternative. >> thank you so much. coming up, the yahoo! ceo has done a lot to transform the search giant including hiring a chief marketing officer. we will hear from the woman charged with carrying the brand forward. also, the rich are getting even richer by joining forces. details on the latest marriage trends of wealthy women and what they bring to the table. ♪
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>> since marissa mayer took over yahoo!, she has tried to transform the company with a focus on mobile and part of that
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strategy includes hiring a chief marketing officer. about what this new approach means for yahoo! >> digital strategy is not even a strategy, it just is. we live in a world where our phone actually knows more about us than anybody in our family. your phone becomes a remote control for your life. gen z, millenial's, are the first generation built with maps in their hands. look at whether it's a tablet or a phone the way i look at a remote control for a tv set when i was growing up. , an artificialon motion, to have a digital strategy, it's another channel you have to be relevant in io order to communicate with your users. >> you have an yahoo! at a relatively short time. what do you think is the most
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exciting thing that is turning things around? >> what has been most exciting is our rapid transformation into a mobile first company. we refocused the company when marissa mayer came in i came in shortly after to join her team to really focus the company around making these daily habits really inspiring again at yahoo! it's not just about the re-imagination. we have launched about 15 products, several of which have won international acclaim. our yahoo! news digest just won the apple design award a few weeks ago. -- and to at scale see it on a mobile platform has been truly gratifying and remarkable. we are a user first company so users have become our compass as we try to develop, enhance, and invent daily habits for the future. >> in terms of the millennial
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audience and what you're doing in media, the success stories come from the buzz feeds of the world where you have 26-year-old going viral. you are working with bobby brown, katie couric who are super talented already. how do you see them integrating into the digital world? >> it's a great question but it's helpful to go up a few feet in the air and look at what our mission as it relates to our content strategy really is. there is an unprecedented number of choices on the content side. it is very confusing for users to actually parse through. frommendations are coming their friends but for content creators, whether you are a joe-z or bobby brown or a nascent voice on tumblr, it's becoming increasingly hard to break through. we like to use the data point "mash"e season finale of
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garnered 120 5 million viewers watching around the television where as "breaking bad" had less than 10 million. destination content is harder to ascertain. our vision is to become the connective tissue between content creator and audience. that's were yahoo! can really play uniquely. interview, on her stephanie ruhle joins us from london. you're going from paris to london so you are making your way back here slowly to new york not too quickly? >> no complaints. it has been an ordinary way. for kathy, this is the week that matters for advertisers, for cmo's. they need to figure out the massive advertising and where they will get the most bang for their buck. if you are yahoo! or google, you want to bring those ad dollars in.
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at a time when companies are trying to figure out how the digital space works, somebody like aol or yahoo! are under the gun. what about this buzz around the alibaba ipo? did you pick up on any of that? werealysts in the media talking about what will happen to yahoo! once the alibaba ipo clears. what will they do with that money? whether it is marissa mayer speaking about it or me speaking to kathy, they are saying let's turn the page. they are focused on getting bigger and stronger and they are not talking alibaba but folks on the outside have got to ask what this companies met -- company's next step will be. credit forgets alibaba. marissa mayer has 37 direct reports which is a massive number but she's got her finger in every element of that business. we will see what they will do. what they are doing with their media platform, they got digital
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magazines and are signing him egg names -- big names. the traditional media players know how to win in the digital world. ofelleis in the pages magazine and katie couric has network television. if you only have a small screen, you've got to ring and eyeballs. >> thank you for joining us. we will have more from that exclusive interview. coming up, we get interviews with the hbo ceo and hip-hop mogul kanye west plus a whole lot more. up, speaking about powerful women, most of them who marry rich guys also have money themselves. we will tell you some of the reasons why women are making more money now than ever and we will tell you why the batmobile left gotham city and cruised the streets of shanghai yesterday. ♪
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>> women are earning more money than ever before in the majority of those entering the multimillion marriages are on the same financial footing as the man they married according to a new study. -- we are joined by peggy collins. the study was done by bank of america? >> it is their u.s. trust unit and it was a survey of people who had at least $3 million in investable assets. womenound that 52% of entered their marriage at the same or more assets than their partner. >> tell me about these women. they haveund that financial assets. when i went to the marriage whether it was from inheritance
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or their own careers, they were equal or greater than their male or female counterpart in the marriage. in terms of pay, only about 1/3 are the primary earner in the household or contributing more money than their spouse. >> so basically there was still a pay gap when it came to their husbands. are now moreomen often wealth creators in their own careers as well as wealth inheritors so they are coming into marriages with more financial assets but they're still behind meant when it comes to income. one of the experts i talked to said one of the reasons for this is that women tend to get promoted later in their careers than men. they are missing out on the value of compounding and they may step out on their careers to have children and that can septum back. >> i am fascinated how these surveys find out about the financial behaviors between men and women. even with women who have a bit of money compared to the average american woman, what is she doing with her money?
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millionaires in general are still sitting on a lot of cash come about 60% of those surveyed have at least 10% in cash. women are less likely to move it within the next 12 months or 2-4 years. they are comfortable with their allocation of cash compared with men and they're also more focused on taxes. 60% of women said they look at taxes when investing whereas men are more likely to go for the higher return and think about the tax later. >> does that put the women back, the fact that they have more of their money in cash and are not investing it as aggressively? it dependsit can but on short-term or long-term goals you have. in the short-term, men may do better but in the long haul, women may have more assets to buy a home or something like that. women are tending to be crunched on both sides. they tend to be the primary caregiver for children and tend to be taking care of parents.
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that can be a financial burden on both sides. >> thank you so much for joining us. we are just a few minutes away from the opening element got the top 10 trade you don't want to mess. keep it here on "in the loop turcotte ♪ " ♪
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>> welcome back. it is 26 minute past the hour which means bloomberg television is "on the markets." scarlet fu has the latest on futures before the open. >> it looks like we are headed for a higher open after the s&p 500 closed at another record high. this is the sixth straight day of gains for the s&p 500. no economic data to speak of but overseas, we are getting some weakness and emerging-market stocks. this will be the first weekly decline for the emerging markets index so far this month. investors are talking about how the rise in oil prices is bad news for india. nowprices are down right
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are trading at nine months highs. the euro is weakening versus the dollar. we will be back "on the markets" in 30 minutes. >> let's count down to the open with the top 10 stocks you need to know about today. ge -mber 10 is siemens and the company and its partners upped the offer for ahlstrom valuing the company at $20 billion. energy transfer equity's to buy target resources were terminated without an agreement. energy transfer was considering paying for the deal in cash and stock. >> at number eight is netflix. 21% in the last month. last month it will introduce its online video service in germany, france, and for other european countries. , itumber seven is coach
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fell the most in more than one year after forecasting a prolonged slump in its north american stores. coach expects same-store sales to fall to mid to high teens through june, 2015. >> number 16 is american apparel which climbed as much as 22% yesterday on speculation the company could be sold after the board ousted its founder for misconduct. shares are continuing to build on the market. >> number five is smith and wesson that reported a decline in fourth-quarter earnings. sales were partly offset by stronger margins. smith & wesson gave a fiscal 2015 sales forecast that was lower than analyst estimates. number four is shyer, the drugmaker rejected its $46.5 billion bid and is now
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considering raising its offer for a fourth time. shyer said it has had discussions with addmae and had three offers to buy the company. >> oracle reported fiscal fourth-quarter profits and sales that missed analyst estimates. it has been trying to remake itself into a cloud computing service. >> number 10 is carmax. it reported a 16% jump in first-quarter earnings that topped wall street estimates. it said the improvement was broad-based with retail and wholesale operations bringing nearly 10% sales growth. >> number one is darden restaurants, the company announced plans to sell its red loft or chamber month and posted fiscal fourth-quarter profit and revenue that trailed wall street estimates. we will dive deeper into the darden result in a moment. markets,e call in the let's bring in steve leuthold,.
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his call is for a 15% correction and stocks later this year and a number of things could spark that including an uptick in inflation or perhaps a deterioration in economic growth. good to see you this morning. >> nice to be here. >> you are not expecting an uptick in inflation and an uptick in growth? -- i don't think we will see a slowdown in growth, it is already pretty slow. profits are up maybe three or four percent. that is already happening. the multiples keep going up. are in the 88th percentile of historical value ranges when we normalize earnings. that is getting pretty close to full value. >> where do you see this uptick in inflation? >> we have been looking for it since the beginning of the year.
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are seeing it both in terms of the prices you are seeing and in terms of the typical shopper, the typical retail person who is going in and buying food and going in and getting a drink at a bar. i think the cpi, perhaps because of the adjustments that take place in prices is perhaps not representing the true amount of inflation that most americans are now feeling. 80% of the people in this country would probably agree with that. this inflationad worry but you are in gold. ro has been looking at the inflation outlook. >> you are looking for an uptick in inflation but janet yellen seem to disregard the recent data.
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curve and behind the is it time to buy gold? curve ied is behind the think in terms of looking at this and is partly with all the hedonic adjustments on the consumer price index and 70% of the factors are now adjusted. typically, the price of a tire goes up 20% that you're getting 20% more mileage out of that tire, it is not considered to be inflationary. it is based on usage. automobile,k at an they adjust for improvements that have been made in the automobile rather than its our steering in the old days or now safety bags and so on. it is not really representing what it cost you to buy a new car where it costs you to make other adjustments. justur inflation play is
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old or are you buying other things? we have about 17 or 18% of the portfolio in inflation hedges. etf thata pretty good does represent 20 commodities and it is readjusted all the time. >> what is it? i forgot, we just bought it [laughter] >> i will post it on twitter when we find out. >> i can tell you if i look in my pocket. be on my radio programs and we will talk about that. watching else you are is airlines. the last time you are on, you said you are buying into airlines and now they have gained huge. if they listen steve back then, they would have made good returns but you said you might get out of the airline sector.
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scarlett has been looking at what's going on in this area. >> the argument is that for the first time in a long time, airlines are being run is as mrs. rather than a public utility. butelers hate paying fees according to one consultant, this nickel and dime he has brought in almost $24 billion in revenue last year. the consolidation we have seen have left some carriers operating better than others. the supply overall with a pickup in the economy means companies are spending again on business travel and airlines have pricing power. >> why do you think it might be a time to exit? >> the point she makes are true. we bought the airlines 2.5 years ago when no institution would touch their lives. we went in and bought them and they have been fantastically successful for us. now, what when we look at them, they represent fair value but
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we've got them on what you might call automatic pilot. when the momentum starts to slow considerably, we are willing to harvest long-term capital gains and the money we run. i am not a new buyer because i don't think they are particularly cheap and that's one of the things we look for. when this works out, we got american and delta which are our two favorites -- as long as they keep going up, why sell them? we become a momentum investor and we were a value investor. taket's say you were to the money all to table when it comes to airlines, where would you put that money? we are extended on a valuation basis. i think we would what it into more hedges. for instance, buying puts on the s&p 500 or the russell 2000.
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i think it's time to start pulling in your arms a little horns aulling in your little bit. you might go to 2000 on the s&p 500. would thought that was a possibility of beginning of the year but we are three percent below that now and we are getting up into the stratosphere for p/e's at this point. >> that's why you called for a 15% possible correction. great to see you and you will be on my radio program later today. the radioprogramas at 12 noon. u.s. investors are warned about chinese stocks like alibaba after an investigation finds u.s. contracts may not hold water overseas. meet the chinese entrepreneur who is finding a way to get by in a slowing economy by digging through a junkyard to find things like about mobile. details are next. ♪
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>> here is a look at the top tech stories -- u.s. shareholders investing in likese internet companies alibaba face major risk according to a new report. gie graves holding company's that links foreign investors to chinese firms are was set of complex legal contracts. chinese courts will likely not uphold those contracts. mobile ceo apologized for comments made yesterday about rivals raping customers by overcharging them. he said he needed a filter and he went too far in his comments. the apology was posted on his twitter account. oracle fourth-quarter profits and sales missed analyst estimates as the company transitions to the cloud. it has posted sales growth of less than five percent for the past 11 quarters. the oracle ceo hopes a pending deal to buy micros systems for more than $5 billion can turn
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things around. catch the latest in tech and media every weekday at 1:00 and 6:00 p.m. eastern only on open quote bloomberg west." darden restaurants missed earnings and revenues are down. alix steel has been looking into what it will look like without red lobster. how many more metaphors can we do? >> this might distract from the point. activist investors do not think this red lobster sale is great. they wanted to keep as is and spin off some real estate assets. analysts i talked to love this idea. lobsteryst called the chain a complete distraction and it was not generating any profit. theake a look at sales from last quarter, that's what you saw with red lobster sales down five percent, eight in the past nine quarters.
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olive garden was also down 3.5% that was better than the five percent it's all the quarter before. it's the higher end restaurants like capital grille that showed a rise in sales. it is there that analysts said any to focus their growth aspects which now red lobster allows them to do. with mostly olive garden. they are trying to change their menu but it has not worked so far. it offers 42% of their sales. the biggest problem for darden has to boil down to cost. the company is looking at inflation as high as 2.5% for its next fiscal year but it is really admin costs. the marketing is about five percent of so that total sales and most companies are two percent. once you go down the path, it is hard to pull back and not hurt your same store sales growth. that is a big issue for the company going forward.
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they need to strategize about olive garden. they need some kind of plan to either change their menu and they rolled out a lot of promotions which winds up hurting their margins. very margins are only slight. they are trying to pay down debt with the sale of red lobster and they are buying back stock. day, its saleshe and costs that are dire this point. >> how much of this is really about darden and how much of this is about this slump in the dining industry? >> it's kind of both. darden has its issues but when you take a look at the overall restaurant industry, it rose only 2.8%. it's the casual dining experience that has suffered over the last couple of years. it's not that they are so bad, it's that the other guys like
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chipotle are that good. they appealed to malarial's and olive garden appeals to an older crowd. >> -- millenials. >> coming up, there are a few things that a chinese entrepreneur salvaged from a junkyard and we will have much more on that when we return. ♪
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>> time for the global outlook. falling inuronex is france. it sold 42 million shares for $20 each. joining us for a look at the european ipo activity so far this year -- >> things are picking up. if you look at the first quarter this year for european ipo's the best quarter since 2007, you can add the previous four years in
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this first quarter has beaten expectations. the second quarter has continued to be better. it points toward increased to miss him -- optimism misplaced or otherwise more and more companies are coming to market. >> who are the big winners so far? >> private equity firms have been sitting on their hands for seven years waiting to jump and are popping champagne. banks are working on the offerings i think of the exchanges. the london stock exchange's number two has been euronext. what about them? they are priced at the bottom of the range so what were those concerns? >> i haven't been here for a month and all i hear is that haveean equities and ecb no purchase programs and
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activity will pick up. i talked to a traitor this morning -- i talked to a traitor this morning and he said eu ronext will go up. you can push down volumes more so the outlook for an exchange like that, even optimism picks up. thenecessarily volumes area outlook is optimistic but the reality right now does not match up. >> thank you so much. there are a few things a crafty chinese entrepreneur was able to salvage from a junkyard. if there was ever a cotton city for china, it would be shanghai with this futuristic skyline.
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it's missing a caped crusader or is it? mobile when the bat-like was spotted. we would never have guessed what was in store for us here. >> unicorns, transformers, and the batmobile. >> who better to bring along than the longtime car guy come l" the joker" russo. of actor turned hobbyist turned entrepreneur turn the dark knight, this 26-year-old. we could not take the car for a spin since it's a life-sized model but that does not mean he did not try. such built a total of 10
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batmobile cars, even when you could drive and the took about two months. we drove around for fun hoping to be stopped by police who confiscated it and took away her drivers license and jailed our people for 15 days. we don't dare do it again. >> this has to be one of the coolest, most eclectic scrapyards i have ever seen. bumblebee from "transformers." he has seen better days. here is aof metal stealth fighter replica. he has a bunch of dinosaurs and next on his list, it wants to make an aircraft carrier. why not? goodness, we not only found the batcave in shanghai, we also found jurassic park and paris. more in thelot other lot down the road. you can special order any of these. how about an apache attack
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copter for $130,000? >> in the past, i was a performer specializing in charity events and big galas but under the new administration in china, those extravagant things have been done away with. i am in this business now partly because of the big changes going on in china. >> creativity to the rescue -- value out of junk -- that does it for today. byt week, we will be joined the aol chairman and ceo tim armstrong. they will be in the loop about the rise of philanthropy and how he is merging the two. that is next week at 8:00 a.m. eastern time. ♪
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minutes thepast hour and that means we are "on the markets." we're 30 minutes into the start of the trinity and u.s. stocks closed out the week with some strengths building on the record high yesterday. 1962 is the latest trade. there is no economic data on the calendar today. in treasuries, some selling their which means the yields are pushing up a little bit but we are talking about moving higher in yields. for the year, bond prices are rallying and it is perplexing investors many of whom are not convinced this trend will continue. we are seeing more money going
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into nontraditional on funds than any other type of strategy. is a strategy that allows money managers the flexibility to make bullish or bearish wagers on the debt. joining me now is lisa a brahma what's. abramawitz.whets -- are they just making? a travis -- a trade on anything >> they are saying that you decide what's best to invest and when to invest and where to world and go around the and find opportunities and the arbitrage between the different central-bank policies and find out where to go best. to me, it means that investors are concerned. after eight percent returns on a broad bond index in the u.s. over the past 30 years, the average eight percent is amazing, they just don't think it can last. >> it was not supposed to last this year. the bonds have rallied and
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typically the money follows the returns. these funds of not outperformed. they are underperforming this year. they have returned on average 3.5%.h may, 2.5% versus the money is not following returns. the money indicates that people want security. they want insurance from a rapid rise in rates even though janet yellen says i don't see it happening. >> what's as the popularity of these bonsai about the investors? janet yellen make clear that interest rates will stay low. >> if you look at the predictions from the members of the fed, they are all over the place. it's not clear what they are saying or what the consensus is. yes, the rates might pick up more than they expect by the end of next year but they will remain low for longer. i think people are concerned that maybe the fed does not have howrol or a full handle on
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fast rates could rise. if rates stay low for a long time, can bond skied rallying like this? i don't know. maybe we want the fund managers to figure out where to invest. what it shows his investors are saying that we want to go into bonds but we are just not sure where. >> we talked about underperforming, at what point will that take its toll on the money going in? >> that's a great question. i think we are seeing that with hedge funds. are certain point, if they lagging behind benchmark indexes long enough, people will start to pull money and they could pull money out of the runtime. if they are not performing, they are not performing. it remains to be seen. right now, people want the safety of a manager or the perceived safety of a manager who can make decisions in real-time. >> outsourcing convection --
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thank you so much. we will be back "on the markets" in 30 minutes." >> live from bloomberg headquarters in new york, this with erik makers" schatzker and stephanie ruhle. >> the nation's high court still has not ruled on a number of crucial cases. business is watching closely. don't write off radio. reports of its death have been greatly exaggerated. we will talk to the head of the nation's biggest radio network. forget about crowded airports. these planes don't need concrete to take off or land. happy friday. you're watching "market makers." .tephanie is back sort of. it is nice to see you. >> its


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