Hear . The Nuclear Summit is the reason everyone is gathered here. The russians did not come to it. And the g7 summit has been tacked onto the sidelines. President obama called that late last week. It is really the g7 summit where the focus of conversation will be, and president obama will be in listening mode. He will be testing, probing to see how far he can press his counterparts to put on additional sanctions on russia over ukraine. Earlier we heard from the president near the scene, and there is an emphasis on being united. The question is, can you remain united and ratchet up pressure that will dominate in the next 24 hours . Why wouldnt they remain united in this case . Is this an issue of europe getting the national gas the natural gas and other energy it needs and they are reluctant to be more aggressive with prudent . That is more aggressive with Vladimir Putin . That is the theory. Givee phrase goes, Vladimir Putin and offramp so he can deescalate himself. They will have a different approach as to how hard, how to calibrate the sanctions against individuals and potentially against industries . We should note that the sanctions we have been talking about are pretty minor in scope. Against the handful of individuals, it has had the effect on the russian stock market, the equities market, but it is meant to show that they do have the power and capacity to do this, but this is not anything close to what could eventually happen if everyone is united. So why bother, in a way . Really they are symbolic, but they do not have an effect. What is the point . If we will not stop Vladimir Putin from perhaps going after an additional cities in ukraine through sections, why go through the motions . Is still the possibility, so you need to have the conversation. Think of sanctions in terms of a dial. If they can continue to ratchet up, there has just been a little bit of news about the du summit. That will be dominated about ukraine as well. Couldals are saying you potentially have additional sanctions, that they want to see how russia response. It is a very much wait and see response game. That is why youre seeing incremental sanctions. Sanctions,ittle more then back to see if there is a response. That is the pattern. It has not change the fact that crimea now has russian boots on the ground. The Ukrainian Government has withdrawn their forces and it is essentially functionally part of russia. It is sort of a titfortat situation. We sanction their russian bank, and they tell john mccain and eight others they cannot travel to russia. It clearly has not gotten to a level that will really matter significantly in terms of changing behavior, but perhaps it will with the unification and with more partners. Hans nichols, i know you will continue watching it for us there at the hag at the hague. Vladimir putin is expelled is celebrating that expansion of his country. Over the weekend he treated muscovites and crimea ends crimeans to fireworks. Ryan, what is the mood like there . Are people excited . Do they want this to happen . Did they go for the fireworks display . Many people did watch the fireworks. Generally speaking that the west has stepped aside and that this is something that russia has done and will follow through on. Certainly president hooton , if you watchn his body language, is not concerned about the sanctions so far. If he is, he is doing a good job attending that he is not. He is presiding right now an awards ceremony for sochi and has been turning a deaf ear to the threats of sanctions and western pressure for stop and western pressure. We have heard that russian Business Needs to get in there, ns therimea Russian Defense minister is there. Business as usual in moscow. There is really nothing they think they need to be concerned about. A lot of people think it will not stop here. He ultimately does have a eurasia dream, one that is important to him and significant to russians. If he were to follow through on some of his aspirations, who and what would be next . Well, one thing western leaders have done pretty well is spell out that if Russian Forces appear in the east of ukraine or in the south of ukraine, as the United States and ukraine fears, that would trigger stage three of sanctions. That would lead to economic sanctions. The sanctions we have seen thus far have affected one bank, and its 160,000 credit card years credit card users, which is significant. It is not that big of a deal when you think about the fact that there are 144 Million People. All of the sections right now are rather abstract. We have lots of economists from russian banks saying the limited sanctions we have had thus far are pushing russia in the direction of recession, but that is sort of academic speak. If you walk around, you do not get the feeling that is the case, and people do not believe here that the west intends to push this further. In which case he might be free to continue any of his political aspirations or land grabs as we move forward. We will continue watching these sanctions perhaps with more unification from our g7 partners. In the meantime, it sounds like fireworks and some excitement there in crimea. Thank you so much, ryan. Moving and shaking this hour, ukrainian billionaire dmitry firtash, who may hold the key u. S. Lawmakers who want he was arrested in vienna this month on a u. S. Warrant and bribery and other charges. He made his fortune as a middleman in russias gas trade. One analyst speculates that he may hand over information about gas deals, and that the u. S. Would consider corrupt the Senate Committee and that the u. S. Would consider corrupt. Washington, house lawmakers introduced new legislation on friday that expands u. S. Sanctions on russia and provides aid to ukraine with it without theims reforms requested by obama administration. A republican congressman joins me right now, sitting on the committee that reforms the bill. Lets start with this bill. Youre talking about aid to ukraine, but no aid to the imf to help support ukraine. What is the distinction . We need to focus on the specific challenge right now. I think the obama ministration incorrectly tried to tie in this imf policy at a time we need to speak with unity about the ukraine. The last segment of your show did a remarkable job describing the dilemma we are in right now. Russia is in crimea and it will be a challenge to get them out anytime soon. What this is really about is sending a clear message to the world that russia cannot expand any farther. We need to do that with economic relatively paltry so far, and we need to expand them. I think we need to work on broadening the trade potentials for their countries in that region. One of the Biggest Challenges right now is because of russias Strong Energy reserves, they have a dominant effect of the economies on the economies of that region of the world. Hooton itowered has empowered Vladimir Putin to do more. Is crimea effectively gone . We cannot accept that diplomatically. We have to understand we will not be sending troops in there. Russia was already in there with troops before they started. It was not necessarily from a troop perspective a new show but i think it, is essential we make clear that they cannot expand. So what is the answer . We are talking about sanctions. Maybe we need to make them harder. Do we kick them out of the g8 . They do need to be tougher. We need to expand the universe supporting this regime and send any kind of military that we can short of our own troops and weapons to that region of the world. So that ukraine can defend themselves. Let me turn to another subject that is topical right now, the issue of income inequality. The senate is expected to look at minimum wage this week, early this week, perhaps raising it to 10. 10 per hour. What will that mean for jobs in this country, and will it do anything to address this very serious and growing issue . Everybody who works hard in america and has a fulltime job ought to live outside of poverty, but the problem with the president s solution is they do not get at the heart of the problem. The problem with middleclass families is wage stagnation, that their purchasing power has been frozen over the last 10 years. One thing we could do to make a difference and have major applicationsrity is expand dramatically our production of energy. We need to make health care more affordable, too, each we can do by making all Health Insurance taxdeductible. I would support an earned income tax credit or a tax credit for employers that hire people at the 10 minimum wage. If we just raise minimum wage in the way the president s suggested, the cbo says no is will lose their jobs. Wille cbo says millions lose their jobs. It seems as if we are going through a structural change. It used to be 40 years ago or 30 years ago you could graduate from high school and get a pretty good job and be a single earner for your entire family and take care of your family. Those days are long gone. Will we ever get them back . We have to recognize the modern economy, with the expanded Education System that gives workers the training they need will be critical. I think we need a manonthemood moment. We need a president who takes our challenges economically and rallies the country to Energy Expansion that would have seemed unimaginable a couple of decades ago. In which in america the idea of being Energy Independent seemed impossible, but today it is within our reach. Creating and fostering these industries could be job creators. Innovationsuring that have created the great natural gas and oil boom over the past decade did not come from government picking winners and losers, but we can invest in infrastructure and change the law to allow natural gas to be exported overseas, and we can stop the regulatory red tape that is hurting our ability to expand energynow , too. The government has a role in way and rally the our nation. Congressman luke messer, thank you for joining us this morning. We are going to be talking about this issue of income inequality on street smart this afternoon at 3 00 p. M. Formerbe joined by treasury secretary larry summers. Coming up next, the ceo of Popular Food Delivery Service delivery. Com, how he will compete with amazon. Com. If taxpayers build it, Major League Baseball teams will come . The business of spring training. Ok, everyone, you are watching in the loop. Im trish regan. We could all imagine the potential for growth in this business. Meals at work or at home, but what does this mean to competitors of grubhub . Question tose this jed kleckner, ceo of delivery. Com. Welcome to the show. Is it good news for you . Think any Public Offering in the space is validating for any Company Playing in the space, and certainly food is what we do. We activate merchants in the restaurant business. But there is a lot of money, so they will be more competitive. If you look at the private markets, there will be activity and growth equity. Ofwe have seen a Lot Companies in the tech space, and you guys qualify you are a food company but a tech company as well. Some have suggested that gettingns are frontpage following. We stay out of the valuation game. Ebay s of amazon or for us, our job is to go to the local merchant and drive orders to them. How do you do that . We dont actually do the little every the delivery. By the way, urban sets and cosmo there was no delivery charge. Would show up on your door one hour later. The way that we function, the way we monetize is that we activate a merchant on a platform, and a consumer can either order from their phone something 10 years ago you could not do or at work or at home. They have anything available based on the address they type on the website or mobile channel. At that time they decide whether they want it on demand or later that day or that week. Minimum order . Generally the minimum order value is something we want to keep as low as possible, but most importantly we do not want the merchant to charge. That creates friction for the consumer. Where do you make the money . We take a portion of the overall value from the purchase of the merchant. Grocer, you local compete not only with whole foods but youre dealing with fresh direct. Indeed. You are in that space as well . Thats right. We started in restaurants as an anchor product, similar to how amazon started with books. As the consumer understood this is not something they can do across the entire restaurant category, we do other things that are vertical one being drycleaning, liquor. What are your aspirations . To look to be something similar to what amazon has become, enabling any merchant, whether they be in a restaurant category or other, to utilize the internet as a way to drive more orders. Thank you very much. You will stick with me and we will talk more with jed kleckner from delivery. Com. Just ahead, a rare friendly gesture. We will tell you about a common cause. Plus, gould founder larry page takes that google founder larry page takes aim at the nsa. Lots to come this monday morning. You are watching in the loop live on Bloomberg Television and streaming on your phone and bloomberg. Com. Im trish regan, interbetty liu. Here with me, we are on the market for you. Futures pointing to a higher open after a 1. 4 increase last week. Camese per limiter a pmi in lower than previous readings cameinese preliminary pmi in lower than previous readings. We are on the markets again for you in 30 minutes. Here are top headlines. It is becoming a battle. It has been a battle, heating up , between carl icahn and bill ackman. Out in forces come for herbalife, nominating three people, and herbalife has agreed to this, to the board there for herbalife. Putting a little bit more pressure on bill ackman. Billion toting 1 build the Worlds Largest global for theoud to be used internet of everything. Apple and contrast apple and comcast are in talks for a tv service to rival netflix. Settop use an apple box and get special treatment on comcast cable, according to the wall street journal. It would allow you to stream live from video stored on the cloud. We are back with jed kleckner. We were talking in the break. The senate will be looking as early as today at minimum rage, talking about raising it to 10. 10 per hour. There are lots of questions as to whether that would do anything to reverse or help close the income inequality gap that has become so significant and severe in our country. What do you think . We have over 10,000 merchants on our platforms, small businesses. Small businesses are the driver of the economy. We want people to be paid well, and one way we help in that for is thatn that forum there is an opportunity to tip the person delivering to the door, and we encourage a large tip for providing the service, as opposed to putting that as a convenience fee. Letting a consumer have a say in what the merchant is paid. But they dont necessarily have to pay the minimum wage. That is the point. We are saying that the consumer has an opportunity to be able to validate the work the person is providing. So a little more freemarket private enterprise as opposed to the government saying this is what you need to make. In addition to what the government is saying, the consumer has the opportunity to add on top. If you raise the minimum wage, or one article says it seems there is something in there for everyone. You reduce poverty, but on the other hand you are reducing the number of jobs in the workforce. What is the best path . I cannot speak specifically to a government action, but in our own version of a marketplace you can either impose as a merchant, whether it ea minimum order value, you can impose a fee there should be a balance between what the merchant imposes that and what the consumer decides. Lets go to Something Else in the news these days, the nsa. The president met with mark of facebook and eric schmidt of google friday. There has been concern in the Tech Community that the nsa has overstepped its bounds. Mark zuckerberg even called the president at one point to complain about this. Googles ceo, larry page was on charlie rose. Take a listen to what he had to say. I would like to get your reaction. Rose page on charlie talking about the nsa. It is tremendously disappointing that the government secretly did all this stuff and did not tell us. I dont think we can have a democracy if we are having to protect you and our users from the government for stuff we have never had a conversation about. Thent mean we have to know terrorist attacks they are protecting us from, but we need to know the parameters. What kind of surveillance the government will do and how and why. We have not had that conversation. And a lot of people in the Tech Community voicing their concern over the nsa overstepping its bounds. In your view, has the nsa gone too far . I was not there when Mark Zuckerberg spoke to the president , but in terms of what larry page said, i would echo the comment we collect an enormous amount of data. We are getting transactional data down at the street level. If we were to use that data in some way without letting the consumer or the merchant no, we would be kind of doing the same thing. Not letting people know what the data is being used for. One of the ways we can take the data from transactions being placed on our website is to turn it back to the consumer in a way that is useful to them. If you place an order on a website, wouldnt it be nice to know information on what is trending in the neighborhood . But to do that, we need to let the merchants know that we are using it. Ormation and and the consumer as well. There is an agreement that you can read when you sign up for the website. The nsa would probably be going too far if they went to delivery. Com to see what we are eating for lunch everyday, and we do not necessarily need to be worrying about that. But Mark Zuckerberg, eric allidt, larry page, they have real concerns because the way it is currently being presented, the government has access to information ash emails and that sort of thing what people are doing online. Do you think at the end of the day the idea that the nsa can tap into a system is something in theally shakes people country to its core . I dont think it is something that the fact that it is something that can be done, but the fact that we use that to our advantage. In the being set conversation between larry page and charlie rose is, if something is being done, let us know about it. Then you start to have a conversation and build trust. Thank you so much, jed kleckner, ceo of delivery. Com. What about stock market predictions . Details of a new study that shows it might not be a bad idea. Also, americas favorite pastime may be hitting americans where it hurts the most their bank accounts. Live in spring training with a look at why taxpayers are striking out. It is time for our weekly look at the top headlines on linkedin. For more on what stories they are catching that are catching officials eyes. We are here with the Senior Editor of the networking site. What is the number one article people are following this week . My personal favorite was by he says when he was a postgraduate student at brown, he started a company with some students and professors, a big name comes to a meeting, introduces himself to everyone, gets to him and says would you mind getting me a cup of coffee. Sure and does a coffee run, and they are talking about him in the room and at some point the bc says can we talk about business . Thesaid we could professor says we could but you just sent the ceo out for coffee. Jeff did not get upset. And didas embarrassed not get the funding. It was a learning, teachable moment who could have throw his weight around and said do you know who you are talking to . He said all right. And the other guy felt absolutely horrible. But it broke the ice. And you are out of the office . What does that mean . I for some reason people say am out of the office, i will be out for days. One knows that is not true. Often when you send an email and you get an auto reply, two minutes later the person says i am here. So why bother . The nuance on this is that you really should breakaway, you should go away, and the author says if you are really a way, say really. But dont use it lightly. My own personal outgoing message normal way, but then it trails off to say, who am i kidding . I am online all the time. What is the toughest interview question . But inhe toughest one persons opinion, the stupidest. What is your weakness . I have never asked that. What is someone supposed to say . That is the point. Most of these linkedin stories got close to 1000 comments this week, and although the advice is excellent, my favorite piece of frome came in the comments a person who says, i have a low tolerance for stupid people asking moronic questions. And that is a moronic questions so nobody wants to say that. You pivot and you say these are weaknesses i used to have and how i dealt with it. You say i have not had a chance in my current position to work on the skills i will need for this one, but i am a fast learner and i will get it. Can you say, you know what youou cannot just say screw unless you are an engineer in silicon valley. But his weight to get away with that is to say that your weakness has nothing to do with the job. Asyou are applying for a job a gartner, say you are lousy at public speaking. You have answered the question, what it has nothing to do with the job as a gardener. That is a great piece of advice. That did well why you should do away with jargon. This is from richard branson. He is a very sort of humble, downtoearth guy. If you have ever flown virgin atlantic, you know their isflight safety thing hysterical no water landing in their parlance. He talked about being at a meeting where someone on the other side of the table said something he did not understand. After the meeting he said what does that mean, and the guy 5 rightmeans he wants away. He said do not speak that way, it is ridiculous, a big turnoff. He is absolutely right. There is a danger in any industry to get used to a certainly go, and when you are talking to people who are not necessarily entrenched in the industry and we do it in Financial Media all the time, too you need to be able to break it down and explain. It is also a crutch for people who do not know how to explain things. That is his point as well. We are out of time. We have to go on linkedin to see the rest. John, thank you very much for coming in. Am a big fan of your site the feedback that people give. Most of these got 1000 onments, which columnists the New York Times get. Swaying and a miss. We will take you to florida for a look at how Major League Baseballs attempt to drum up business affects taxpayers. It is time for todays bloomberg big number. 170 million that is the price of the new grandstand at the historic disney cricket ground, just constructed. The sloping grandstands have the in the news since 1870s. 40,000 people are expected to show up between the two games between the dodgers and the diamondbacks next week. The mlb decided to bring openingday straight to australia. Todays field of dreams are in arizona or florida, we could say, where cities are competing to build more lavish facilities. Mike mckee is in fort myers this morning, looking at stadium games. Good morning, trish. They definitely build them and they definitely come. Flockf thousands of fans every year to spring training sites, and their dollars are the prize in the arms race that is putting cities in deep hock. In tampa, they built a 40 million copy of the original yankee stadium. Only 100,000y per year plus stadium operating expenses. The stadium, a gift from hillsboro county to the team. An economist studied this and florida, where the yankees came from, where the economy the yankees get to keep the parking revenue, the ticket revenue, the concession revenue, the ad revenue, even luxury suite revenue. What happens, the county does not get a lot of benefit about it out of it and this is money they could spend improving other parts of the county. One of the reasons it happens is the teams are getting these deals from the cities. The red sox, welcome to jetblue park, 100 million of ballpark facilities built by lee county. Even a county of danish even a copy of the Green Monster at fenway park at this park. The red sox say only half 1 million a year in rent the red sox pay only 500,000 a year in rent. It is a sweet deal for them, and they can only hope that it continues for a while. Why make that kind of deal . Well, the people here say it is a good deal because the facilities are paid for by bed taxes. Tourists pay a tax when they come to town and they can lure more tourists into town. Economists say those figures are probably exaggerated, and they also have to pay the operating expenses of the park. It is still controversial, but lee county is all in. They have a third stadium in town that is not used by anybody at the moment. They are trying to get a team in there. Mike mckee, how is the weather down there . It might rain today. We are worried about it, but i cannot complain. It is 71 degrees. It is what in new york now, trish . They are talking about another noreaster. We dont even want to go there. From americas favorite past brands iconic fender has manufactured guitars in california since it was established in 1946. We are looking at Global Companies that choose to manufacture in the United States and why. We look at fender, one of the Worlds Largest manufacturers of guitars, basses, and amplifiers, that revolutionized rock n roll. [guitar plays] i started playing guitar when i was 12 or 13. Instruments has been around since 1946, one of the largest producers of guitars and amplifiers. From the 1950s and the birth of rock n roll to today artists like john mayer, eric clapton, heldhendrix, they have all offender. Everything is so classic and original. Everybody uses it. It triggers all these memories that is a fender guitar. This building produces the quintessential fender product. Guitars are interesting. There are not a lot of industries where globally on americanmade product is the most are mere and prestigious, highly sought after aspirational product. But fender guitars are. People will save for years to be fender afford a usamade guitar. There is no question that sometimes running a business in california is challenging. There is a lot regulatory issues, but you know what, we have so much pride in our heritage, in our roots here, we have always been a Southern California company and we are not going anywhere. Two main components of the guitar are the body and the neck. So each of those start off as raw pieces of wood, and they go through a wood milling process. This is a threepiece spread of ash from the southeastern United States. These are the samples that we use to make sure that we have the shape of the neck exactly right. Here is a guy you might have heard of him before if it is thousandth ofs a an inch off, these guys can tell. Paint, through a curing process. This is really where it all comes together. Start addressing the threats, putting the electronics in. Ready to go out to the next rock star. Not bad. Gming up, more problems for as the investigation into the recall of an ignition switch failure is linked to 12 deaths. Also, first lady Richelle Obama and Michelle Obama and Steve Schwarzman in china. What brought them both there . Stay in the loop. Millionaire Warren Buffett is off the hook thanks to the march madness upsets. He awarded 1 billion to anyone a lot of those brackets were taking care of, and the final three perfect entries blew up friday night when memphis beat george washington. That is brad bender, who may have had the nations best racket. He had picked the best bracket. His bracket got upset when dayton beat syracuse. Enter buffetts billion dollar challenge. And that is the closest i have ever not come to winning 1 billion. 56 minutes after the hour. We take a quick look at futures here, which are indicating we will see these markets open the week in the green. Aboveread on average growth for the month. In about an hour we will get more Economic Data when u. S. Manufacturing stats are released. We will be back on the markets for you in 30 minutes. Coming up, as the Senate Begins to round up 1 billion in aid for ukraine, a political battle looks to be shaping up. We will take a look at why some are not too dinar handpainting too keen on handing over any money here. You are watching in the loop. I will be back right after this. 30 minutes from the opening bell, you are in the loop. We look at the futures market indicating that the stocks will open higher. Heres what were working on. President obama is in the netherlands for meeting with g7 leaders. He is asking for tougher ssiasons against ru leader Vladimir Putin. In a few minutes were going to talk to the chief economist for the firm that did the survey. Planearch for the missing continues. They have spotted two objects in the south indian ocean, and they will try to recover these objects and we expect an update et and amissing j couple of hours. We have new developments in the battle between herbalife and carl icahn. He will have five of the 13 Board Members if his picks go through. Herbalifes stocks at is that an eightmonth low. Battle,en covering the editor joins us from atlanta. What does this mean for investors . The fact that carl icahn is this theyts, and radically should be a good thing . One thing adeptly shows is that this thing is not going to end anytime soon. Both sides appear to be digging in. Shows adding empty seats that he is in for the fight. Will a call last week that you will recall last week that the fed is asking some questions about the company now. The stock took a big dive as a result of and now this is a carl icahn coming in with his counterpunch. It is a big deal that they are now looking into it. Why would carl make this move now . If he gets three more seats does he have much more control over the company . And why would they be willing to give it to him . Is he essentially their knight in shining armor at this point . He has come out in defense of the company very strongly. He has taken the largest position the company, almost 17 . Board,has people on the on the one hand the company has to be very careful in how it responds to these allegations. They need to make sure they keep their eye on the ball. He will now have more seats to do that. And of course, the company has to figure out exactly how to pond to those who in the who launched the investigation. For a while people were wondering if carl icahn was going to try to take the company public. Or private. You just take it out, and then call it a day. Writes. Do you think there is a possibility of that . That was the first thing that i would have thought this morning, when he did those three seats that he was closer to doing that. Or is there Something Else going on here . We know there is a arson now the conflict before personality conflict for sure. Is it something that carl icahn wants to see out on a public stage . It didnt seem like people were less inclined to believe that he would take the Company Private in recent days. Wraps adding seats today will fuel some of that speculation again. Also, the stock is considerably down after this ftc investigation. Of seatsing a couple will make people feel like he is not backing away. That is a good point. Bill ackman has had a hard here with this company, but we have seen him and things before for the long haul. Andas been a tough year, they are just about to break even here. One has to be going through and is had at this white as he watches carl icahn take three more seats . A it is somewhat of vindication for him. He said all along that he believes that this company should be invest to gated, and that there should be questions asked by a federal regulator. I think he was becoming doubtful going toe they were act, or he was not certain how soon it would be. People were generally surprised that these questions now from the ftc are coming forward. Seen his investment now head the other way, in his favor, our calculations show that he is pretty close to breaking even. The investigation could take six months to a year. You have this news with carl icahn today, there is going to be a lot more battle left ear. It has been a fascinating story. A small company, but such big personalities involved. We have covered quite a bit of it, and you certainly have. Thank you so much. Moving and shaking at this hour, jp morgan ceo for investment toldng and china has jpmorgan he wants to retire. This comes as jpmorgan is being investigated for its hiring practices in asia. Authorities want to know if people were hired because they have relatives said governor that would government that would steer business to the. M. Meets withdent obama the chinese presents today in the netherlands, first lady lady is touring china with her daughters. David lynch is on that trip, and joins us right now from china on the phone. Hello. Hello trish. In one of her speeches on education, she did give a shout out to one of her husbands biggest critics. Tell us about that. This weekend she gave a speech at peking University Stanford center, talking about the virtues of study abroad programs. She made a passing reference to Steve SchwarzmanScholarship Program that he has started up over here in china modeled on the road scholar program. Schwartzman is no fan of her husband, a couple of years ago went over the tax policies, likening them to the nazi invasion of poland, a bit of an overstatement. Interesting that she would come out and support. It was one sentence and a six page beats, so it was not anything other than simply remarking on something that been prettyld have conspicuous by its absence. China . Reception in it has been largely good. Paying attention to the press has been very positive. The folks that have met with her are excited to have a fighter warm, intelligent, and interested in what theyre doing. These sort of trips, at the putins of up to what would some good cheer in the relationship that has had its shares of ups and downs. We can use the good cheer for sure in these days but given Everything Else that is going on in russia and ukraine. Thank you for joining us. Sure. How social media beats the street, a new study has some surprising conclusions about additional analysis. Success about for media. Welcome back. When it comes to stock market may beions, social media superior to wall street analyst. The tone ofhat stock Market Opinion blogs published on investor forums predictive stock returns and earnings surprises are above what was evidence from Analyst Reports in certain Financial News articles. Siegel,me now is david the president of this report. With your site and have used it a lot, but for viewers who have not seen it, tell us a little bit about your website. Seeking alpha is the largest crowd source platform that exclusively focuses on sharing top investing ideas. 85have a group of about hundred contributors around the country that publish content, and we have about 10 Million People as registered users who read our content as well. This studies coming out saying that the blogosphere and social networking is more act ine at accurate predicting the direction of the market and wall street community. The notion that crowd source content is more influential has been proven in lots of studies. More round restaurant reviews, movies, or other types of content. For the first time, the analysis is coming out that demonstrates when it same holds true comes to stock market movements. As much as there is a chinese wall in our banks, we sometimes wonder if there are other factors that might be influencing a particular analyst. Here, i would imagine that there is less of that, people have their individual positions at play, but in aggregate if youre taking everything overall, do you somehow perhaps even out the extremities to get one consensus that is more accurate . That is exactly correct. There are two values they provide over regular research. The first is the realtime nature. I national markets, more than any other market out there are more conducive to realtime than anywhere else. Social media is all about engagement. Discussion, disagreement, would you have that, and you have that context it is something that traditional analyst cannot do. Very different. Heres my target on the s p, heres my price target on ebay, and in this case is a backandforth and commentary. What does it mean for the future of wall Street Research . We know it has been under a salt for a variety of reasons for a while. Wall Street Research has certain highlys that are beneficial that the crowd cannot necessarily provide. It is important to understand that as well. For example, deep i National Titles as one. Access to Company Executives is another. At the same time they are going to be able to provide the same level of realtime feedback, the same time of type of rigorous debate and discussion. They looked at seven years worth of data, they look at 500,000, the cost ive hundred thousand articles. They conclusively proved that beats thef the crowd experts. It is pretty incredible. How do you make money on this . How do you monetize this . We have seen the banks, they charge for their reports. How does a business like seeking alpha effectively do the same . Great site and a great platform where there is exchange idea, then viewers know that. Always the opportunity for monetization. Were trying to build the best possible site we can with as oforous and editorial review the content as well as an open forum for comments. As long as you have a legal get monetization. Some of the bloggers are anonymous. Yet we know who they are. David einhorn has expressed his concern. He would like to know the name of the seat he flow blogger who revealed one of his investments. It wasnt . Where not we did tell you right now. Why hide behind anonymity . Why not put your name on something . That ithemently believe is critical to have an open platform where everyone can discuss and debate without necessarily having any repercussions to that. With that said, we have what he said we have 24 7 monitoring on everything review. 97 of the content as provided on our site is also rejected as first time content. It is very important to us to create the first four of the right forum. Oldfashioned, but part of journalism was when you wrote an article you put your name on it. He did not hide behind anonymity. Why allow your bloggers to do that . It is part of our philosophy. We do have an open environment and flexible environment to how people to comfortable posting what they need to. We have a very rigorous background check. Was you would understand why David Einhorn would be upset to read actually want to know who this person is. Will you be held accountable . , we haveeinhorn tremendous respect for him. We will leave it there. Thank you for coming in. Toing up, we will continue focus on these markets as we get closer and closer to the opening bell. Future slightly higher, i will be back with you right after this. General motors could be in some big trouble. More on the story. This just keeps getting worse for them. Another plot twist in the gm case. In addition to their handling of the emissions which chair letter ignition switch failure, they are investigating on whether not committed fraud by failures whene they filed for record the. They filed for bankruptcy in 2009 was the question is whether gm knowingly failed to tell the government this is important because the vagrancy restructuring projects in the gm from liability acts from prior to bankruptcy. Lawsuits have already darted loving a rolling in. Says thiscy lawyer has not been withheld, but this is an ongoing case that we will be watching. Thank you. We are going to take a quick rate, we are watching the futures market in bed it looks like we will be looking at a higher open. We will be back with the opening bell right after this. Welcome back of your watching in the loop. It is 26 minutes but there were which means that we are on the market. The very latest on futures in the final moments before the opening. Futures are pointing to a higher open rate of loathing on the gains we saw last week of the one. 4 gain in the s p 500, which touched a record on friday but couldnt quite hold it. We will see what happens in todays session. We did get Economic Data out, on any factory in china around the growth rate not a very promising number, people really still investing here in unit is eight. We do get some manufacturing data in about 20 minutes from now. That may shore up that view. We will see how much the markets react to that. The topll count down to 10 to the only trade you need to know about today. Im starting with number 10, the companys ragu brand has been cut. Compared to spam. Ragu areund bids for due at the end of this week. Wet seal cover those shares are down after the Women Specialty retailer was downgraded from neutral to sell. They have had First Quarter we guidance weak guidance. Sustained dear to the day after lunch, they will be music app. Ir delayed int will be. Aking over nokia the exclusive area for the original iphone carrier for the original iphone, at its highest since the debut. Divergent opened in first place at the box office this weekend with sales of 56 million in u. S. Theaters. The sequel is in preproduction. I thought both of you went. You liked it . I liked it for what it was worth. , thember four gevo apple tech giant is in talks with comcast about teaming up for streaming tv service according to the wall street journal. Fore spent several years different avenues, but has unsuccessful thus far. Nu Skin Enterprises makeup ,ersonal nutrition projects owe money to china. The company has announced a plan to build the Worlds Largest global intercloud, and that would be a cloud with a set of partners. The next be billed of two years. Are number one stock of the day, it is our collective of the Nutrition Weight Loss Company agreed to nominate three people were opposed by a billionaire proposed by billionaire carl icahn. We are looking at a slightly higher open here on the dig of a waste of Economic Data on the manufacturing front coming in 20 minutes. Seem to be, does not bothering investors just yet. For more on the call, on todays markets we are bringing in money statsr, chairman of empty md stats. Easy specifically health care and airlines, and the tv broadcasting. Welcome back to in the loop. Lets talk about the of these disruptive technologies. What about tv business . There has been a recent correction in some of the tv broadcasting stocks give a cubbies like clear broadcasting, media general, gray television, Nexstar Broadcasting Group of one of the things that they have been concerned about israel or terry changes that will be forthcoming coming on march 31 when we have the ftc hearings. To show you what is going on in this industry, it is not stopping. There were two announcement last week. On thursday sinclair restructured their act position of allbritton communications, anticipating the changes that are forthcoming by the ftc. And then on friday lynn ing acquired media general. 1. 6 billion dollars . Yes. And they are acquiring them for 1. 6 billion dollars, two point 8 billion including the assumption of debt. Being smalleris than lynn, it will make them the number two broadcasting. They want to get shares. That is the idea behind it. What is interesting to me is that this is the traditional online media business, still commanding pretty high valuation. Not really when you look at it on a Free Cash Flow basis. Would you look at all of these stocks that i just mentioned, fortrend is that 11 to 18 cash flow yields. You buy these companies, and you make between 11 on the lowend and 80 on the highend, per adr. In Free Cash Flow. Her year in Free Cash Flow. This is still a maturing industry as you know, but retransmission fees are growing at a 20 per year compound. If you still like his base, despite the fact that it is changing rapidly goodbye want to bring olivia, who has another view on it. And bearish case for some of these broadcasters. The first trouble that i would point to his area. If it becomes legal, then to paid tv operators could just take that technology and built a system. Paytv companies could just choose to use aereo. Billions of dollars of retransmission fees are in the balance here. Which we dugng, about so often go bad broadcasting the only makes up a very small portion of its own target, only on local news. The rest of broadcast nations are licensed network card deck of and as the world keeps shifting to more ondemand demand is becoming less voluble. If i can just click online to watch an episode gevo why am i going to watch it on my local affiliate . It is a very good white. I know that you have been looking at one of martins holdings, ebay. Lets talk a little bit about ebay. It has faced some challenges he isly with carl icahn, been suggesting that paypal be split off from ebay. What are you seeing in terms of that stock . What we have seen over the longer term is outperformance. I wanted to go back for a second to refresh peoples memory given what has been going on with carl icahn pushing for paypal to be separated from the company. To talk about plays that people has that ebay. Which is thever nonpaypal business of the war the core business makes up about 52 of and then people makes up about 41 if you look at the twoyear growth in revenue, although them are pretty good. Payments have out paced marketplaces by 53 growth in revenue in two years. Wet is not too shabby, and forget about with carl icahns push for change in the company is the fact that it is trading near records. It is a 361 over the past five years. He sees more upside if there is the separation, but people who have been holding the stock for a while have already been pretty well rewarded. The last 12 months have been a little bit more challenging. Martin, do you think that paypal should be spot off . I do not think it should be completely spun off, but id be get would be a good idea to do a partial ipo, of about 20 . That accomplishes the best of all worlds. Ebay would continue to control paypal, they would monetize 20 of the company. They can use that cash to buy back stock. Use the currency of a higher to make on paypal stock acquisitions and interactive plays and the like. An interesting idea. Thank you for joining us. Vice media is giving traditional tv a run for its money. Were going to hear from the nontraditional head of the company that says he is building a billiondollar business. Plus, a quick roaming note for programming note for you. Well have an update on that missing Malaysia Airlines jet. Stay with us. Heres a look at some of the top stories that were watching at bloomberg right now. The u. S. Has a history of blocking Chinese Telecom giant wrongdoing deals in the u. S. For fear it would find ways to steal corporate or government secrets. At the same time, u. S. Officials are finding backdoors into huawei. A streaming tv service to rival netflix. It will get special treatment on comcast cable. It would also allow you to stream live and ondemand tv programming and digital video stored on the cloud. Delivery service wrapup announced it will offer 7 million shares in a Public Offering that values the company around 1. 72 billion. They plan to sell shares at 22 each. He has shaken up the media world, senior west coast words growth correspondent Jon Erlichman caught up with the president of vice. Sounds like people can live the idea of vice and sin. I think it is how this business has come together from you talked about a business that has been around for 20 years, and started as a magazine. As it has become a village on the world of online video ad people are strange to discover them in a big way through their hbo show, they sent Dennis Rodman to north korea, and now they are launching vice news, to get into the game of shorter form content being part of the shorter form his conversation. What is interesting about the business demographics. They really get a lot of viewers that the traditional news outlets would be very interested in attracting to themselves. This into wendys has about the growth of the business. If we hit our numbers this year, and predict us to next year, that would be that are worse would be exponential. Are worth would be exponential. If were doing 50 billion is a top line in the everincreasing scale, that would be worth as much as twitter, i would think. We are great company, but not making any profit. Generate 1 billion in revenue . In the next 12 to 18 months. What is the end goal for vice . Talk about that . We did. If you look at the investors they have, they have some influential ones. Ichard murdoch, tom thaton, smith says that fox investment which values the company about 1. 5 billion dollars gave them some wiggle room to stay independent and keep growing which begs the question, is this a company that wants to go public echo here is what he had to say. Weif we had the numbers that believe we are going to hit, we are throwing off so much many have at our scales are cringing so rapidly. We would be stupid not to test with the market would bear. Theres a lot of money sloshing around the system. Volume asians are high. Who knows when the nests recession is coming and we did coming. Ext recession is he talked about the possibility of making their own cable network, something he would have never done a long time ago, but they are selling a lot of content back to tv already. He is starting to think a little bit more about that. Very interesting. All about content creation in the and. Thank you so much. You can see more of this atormation interview bloomberg west. Veryll bring you the latest u. S. Manufacturing data which follows an unexpected drop in china. In just about 10 minutes were going to have an update on that missing malaysia and malaysian jet. This time for global out look. The u. S. Senate may puts wheels in motion to give you great 1 billion in Loan Guarantees. Our washington correspondent megan hughes joins us with more. This Loan Guarantee has been come become incredibly controversial and political. It is not the Loan Guarantee itself, as it is so often, the devil is in the details. If you take a look at just the Loan Guarantees, both immigrants and republicans generally support it. The house earlier this month amount. T for the same why it was important, and born to do it quickly about as said by senator durban. We need to do everything from fuel to tires to sleeping bags to meals. This army in ukraine was devastated by yannick ovitz. They are so weak that there are 6000 troops ready to go to battle. With strength in them and help them with advice and backing cap as it may come to small arms. Im not ruling that out, keep that on the table. For the time being lets help the gradient army get on its self defense force. The Senate Version includes a provision that is not in the house version, having to do with the imf. It shifts 63 billion from the credit line that the u. S. Gave the imf in crisis funds into its permanent resources. The white house is wishing to make good on a commitment from 2010 with that move, without restructuring. A lot of conservatives simply do not want more over but support and spending for the imf. This is not tied to the gradient prices, but they say that the crisis is being used as a bargaining chip. The white house argues that the iof is a body that is going to stabilize ukraines economy. Ist is the controversy, it not the Loan Guarantee. It is not just oz, it is not just Getting Congress to act on this, it is getting the international community, as hans nichols was reporting from the hague this morning, getting a child ins always these situations. What is the expectation now in terms of the u. S. . Do you think that there may be some lawmakers that can or will be swayed . We have tell you what been married from senate republicans, senator john mccain, for one, marco rubio for another. They are not happy about this imf revision, but they do think that this is an important enough aid package that they are going to push that republicans to pass this. It may not have the numbers, but if will pass. The big question is how this reconciled with the house. House Speaker John Boehner has that it should be a clean bill and should not have that imf provision. That is where were going to see the conflict going forward. Thank you very much. It is global pmi day in china. Data is weaker for a fifth straight month. Different story in europe, growth in manufacturing and services that would stay close to his threeyear high. Home, in the United States, manufacturing slightly usower than estimates, jk just coming it. N. All of this coming in from chris williamson. What is the biggest take away from todays manufacturing figures . Lot to talk about here. China, growth slowing down, while contract at an increased rate. Signs that the chinese authorities may well step up their efforts to try to reinvigorate growth. The seven percent growth target in jeopardy with those numbers. Numbers, in the french france has been made the highest far. Ery it this session so the euro has seen its best quarter since the spring of 2011. What is driving that . There has been an upturn in germany and its neighbors which has been the main source of it. We have been spreading to the likes of italy and spain. These countries have done a lot to adjust to the new environment, driving down there. We are five tears down the line, and it is going to happen sometime. Crisis fears at ease, and theyre promising to do whatever it would take, and that has had a big impact. We have some growth surge or jury coming through. Investor like the idea of Central Banks promising to do whatever it takes. We saw that play out here in the United States. There is that less of a Market Reaction than you would think as ibm dataof that for out of china. Is that because investors are thinking well of things that that we know that the Chinese Government will do something . Indeed. Isis not so bad that it wriggling a hard landing of a but it is going to have a definite effect on the Global Economy and be a big concern in that respect. It is a further sign that the domestic economy and china is softening. Andstic manned demand, authority should be able to do something to stimulate the domestic economy. They have already alluded to that saying they will bring spending that was earmarked for this year super bowl that forward. Thank you. We are glad to have market data. That doesnt for a balloon, make sure you tune and at 3 00 p. M. I will be speaking with larry , former treasury secretary of the United States. Were going to address the issue of income inequality, minimum wage. Were coming up on 56 minutes past the hour cover that means that it is time for on the markets. Mistimed offer futures in focus and were looking at copper. Copper futures are trading near a oneyear low. A lot of concerned about chinas latest read onhe manufacturing came in and show that we are seeing declines for a fifth straight month in manufacturing in that nation. This accounts for a lot of our copper consumption. Joining me now is bad and michael anden and greg. Negativeetting these reports on the economy out of china and that affects coppe r. What way does this get priced in . That is the interesting side of the trade right now. As the move already been made, copper is technically oversold about traders are watching that. We also watched things like option volatility which has jumped a lot. We are getting to bears, and then the question is alread always what will happen if they become to bearish on their country . You think that things have been getting to bears. Are you stepping in and buying some property . Copper, thisll, precipitous drop that it had because of fundamentals in the rule of march or only a week and a half ago, basically the big gap that took us through the 20, 50, and 200 Day Moving Average all the way up to 330. For that reason we are about 10 oversold because your last guest mentioned so well that europe is picking up their production, and i think that china will address the issue and there will be a popular. We would be dramatically over these levels if there was a fundamental issue with copper, which is one of the main reasons i like it so much as these levels. We are getting apprentice conference out of malaysia on the missing flight. Accident, investigation. They inform me that the u. K. Has informed calculations on data. [indiscernible] sort,investigation of the three 70s flightpath, based on they have concluded that 370 flu along the southern quarter and lost the lost position and flew west of there. This is the recorded location. It is therefore with deep sadness and regret that i must toorm you that according mh370 entered in the southern indian ocean. We will be holding a press conference tomorrow, with further details. We wanted tome, inform you of this new development. Opportunity, we share this information, in our commitment to openness and respect for the families. Principles that have guided this investigation. Malasian Malaysian Airlines has already spoken to the familys of the passengers and crew of this development. The past few weeks have been heartbreaking. I know. Is news must be hard. I urge the media to respect their privacy. Allow them the space they need during this very difficult time