Showdown, i am joined by hans nichols. Was the decision to suspend russia from the g8 unexpected or business as usual at this point. Not blow it too much out of proportion. Summit inwas a g8 sochi that president clinton wanted to host. They have moved the summit to brussels. It will be a g7 summit. Impose realt really sanctions on industries. They have posed sanctions on i spokeals there at with the president of the European Commission then asked him what the effect was of taking the g8 and turning it into g7. Class we are very much in favor of a dialogue with everybody in the world and we keep our no sense ton, makes be discussing these issues in the g8 for him. Brussels, the same dates planned. The consensus we have out the summit is a threat. A threat to have additional sanctions, including banking, and other aspects. If russia changes the status quo and if russia moves troops from russia into you eastern ukraine, that also means russian been accepted as the status quo and there is very little diplomatically that you can do to dislodge Russian Troops from crimea. In terms of the g8 and g7, it seems like russias reaction is that the g20 is what really matters and we do not really care. Base near. They essentially said, we do not care. , therd this last night foreign minister saying the g20 is still the premier forum for dialogue. When i asked the very question, if theres any talk about kicking russia out of the g20, he said absolutely not. Russia is still very much a part of it. Other issuesst of that at least diplomatically, you need to keep the lines open. This is not simply a oneway relationship. This is as usual in terms of russia to some extent. Thank you for your report. Moving and shaking this hour, a russian billionaire, pretty soon, you may be able to call his nba team control ofder the his russian company. He says Vladimir Putin asked russia own other companies he registered locally as well as pay taxes. The move may keep his investment out of the reach of lawmakers and if more sanctions are posed in the wake of ukraine. Not so fast. A spokesman for the nba saying the league has not receive a proposal to change the ownership structure. Staying in russia, the country that has played host to the Winter Olympics is getting shunned and phasing economic sanctions from the g8. The territory is fighting for a spot on the international stage. For more, ryan is in moscow. Just heard from hans nichols, saying russia is not paying that much attention to the g7 idea. Any word from Vladimir Putin right now . No. As far as we can sell, the russian president does not care russia has been kicked out. If he does care, he is doing a good job pretending he does not. He presided over a war an Award Ceremony for actors and yesterday presided over an Award Ceremony for people in the olympics. The stance they have taken here turn a deaf ear to western pressure and go about this and this as usual. , prep as they concerned crimea is a done deal and they will not go to eastern ukraine. Subject to interpretation and question, but they just want this to be over and move on. Hoping they will not actually see economic sanctions from the west very in the meantime, what are the sanctions particularly by the u. S. . The sanctions in place right now, the individual sanctions, are not having much impact. What is true is the threat of sanctions appears to be. Ndermining Investor Confidence we are seeing a lot of money leaving russia. The Economy Ministry last night said moore has left this year than last year. Last year was bad. Capital flights so far stand at 65 billion. I was talking to the head of the russian largest bank who said, the economy was already in bad shape going in. If we see even a little bit of money leaving the country, that could mean russia is having a session. [indiscernible] [indiscernible] perfectly can get the receptor. Some of that money was already leaving the country before march 3. That was when president clinton asked the Federation Council here, the parliament, for permission to send troops into crimea. It is difficult to distinguish how much sanctions have to do with all the money leaving russia. It looks like they are playing at least some role. Class we are looking at russian growth under two percent. The white house has been tooting. Ts own horn technically, had that been the case in the last two weeks . That is a good question. It is important to distinguish what we are seeing in the markets. It is true all of this is not that good. I was talking to the ceo of the bank. It is up on the month against the dollar and the euro. A lot of russias his problems, the second worstperforming currency amongst emerging before theey began sanctions. I was speaking with a Senior Western banker. I cannot name them because they are concerned about the situation, but what they were saying was it is in the west interest to show the sanctions are having some kind of effect or make a argument because they do not want economic sanctions so they have to show constituencies they are doing something. It is very much in the russian interest to say or percent or pretend these are having a bite. There are real economic problems here before the sanctions were imposed. Beis convenient for them to blamed now on the sanctions in the west and as opposed to owning them up and taking them as their own problems. Whereve a convenience everyone says, absolutely, the sanctions are her rent this, although the reality might not exactly be that way. Does itat point, what mean for the everyday russian on the street . It seems like glutens has been soaring. All the talk of economic sanctions will blow over. They do not believe in it. They think it is a lot of rhetoric for the last. In terms of the extent they are playing a they are hundred 6000 credit card of russia isbank the only firstever russian Bank Sanctioned by the u. S. Government and they decided not to service those peoples credit cards in compliance with sanctions. Displeased because they cannot buy anything with their credit card. They can just go to their cash machine but cannot do anything more than that. And their credit cards is not a big deal. Were to beBank Sanctioned, that would be huge because it would shut down all transactions within russia. And that is between russians and russians. But that that has not happened yet. Clearly, were not there yet. I have to ask you about basketball. What do you think the opportunity is to move the nets . You have spoken to them many times. Ithere in russia, they call the whole idea of taking the legal entity of the brooklyn is toere into russia bring an asset owned by russia back. It is a popular theme and it does not like the fact these are offshore. Not change anything. The nba might object, funny enough, the sanctions and the asset freezes on the inner food ands circle, they are kind of encouraging russians to bring money back into russia. In a way, the sanctions are playing into president clintons master plan of getting more russian assets offshore. Another convenience between the west. Ryan, thank you for your report in moscow. Time for todays lumbered the number. 70 billion. That is the amount of money expected to flow out of russia in the first quarter. Than oner is higher originally proposed by president. Lintons advisor German Companies in particular are one of russias is a guest sources of foreign investment. Coming up, do not forget about what you learned from sports. We will talk to a business professor who says nice guys can finish first. Plus, battling billionaires on the highspeed. How a couple of sailors plan to compete in and around the world race. Classes United States decided they wanted windsor ontario, just right across the river from detroit or Something Like that, and we went up there and sent our tanks in, could we get away with that . [laughter] thereoubt the people would approve. [laughter] a pretty funny idea. Lets talk about being nice. Wall street and the world of finance are not always known as environmentals environmentalists. His look, giveandtake, adam grant, one of the most in demand proof ons offers case how nicely you treat others can improve your chances at success at work and transform entire companies and communities. Welcome. A great way to spread some cheer tuesday morning. Give me an overview of your book. Thank you. I divide the world into different kinds of people. Givers, takers, and mattress. Takers never give back if they do not have to. Here help others without strings and in the middle, matchers. Most of us are there. Me. Help you, you help back and forth to her most people think matching is a safe way to go. The givers are surprisingly successful. This has through ginny roots in your own research. Questec couple of decades of evidence. Sacrifice for others. They arent a lot of trust and build strong relationships. I was able to read some chapters in your book. Examples . Ve me some entrepreneur, adam, was able to see the social potential of the internet and realize, this is not just a way to share information. Nowhere butpages go one of them really skyrockets. The band is called green day. That worked out well for green day. Adam gives them the site for free as opposed to selling them and he eventually gets an email from a punk rock fan and says, he hates your page because when he searches for opera, he gets green day and we all know they are not punk rock. I neverdisappears and talk for the next five years. Five years later, adam starts a company and reaches out to the guy for help. The guy just sold the company for 6. 7 billion. Forfunds his Company Millions of dollars. What companies can learn about this . We have a nice graphic here ceos. G at the best linkedin ceo had 100 rating their. Number eightand had a four percent reading. Victorias secret ceos 85 . Nine. Uckerberg is now what might the ratings tell you about the Corporate Culture of the companies. Extent toflect the which ceos are givers and takers. It is one of the reasons the Jeff Wiener Linkedin as a ceo, trying to figure out what you can do to put your Employee Interest first, there may actually be longterm value in sending the prison out the door and allowing them to grow and rise in terms of the referral they give to you. How has the corporate style changed . More giving or more selfish . A lot are working more on. Creening out takers like if you are extremely self is, how do we not let you into the door. He will stay with me, because i have a lot more questions. Just ahead, a big day at this record. Why two familyowned companies are seeking redemptions in the Affordable Care act. A bank of america alumni hoping to empower women to her mobile commerce venture. Why getting the right fit matters. Stay in the loop. Taking video, unreal. More than 1300 seats maybe my biggest fear. The video was released yesterday as men were arrested. All will be donated to charity. I am alix steel, in for betty liu. Bloomberg television is on the market. We are taking a look at futures, rising ever so slightly. S p futures are up six points. Out the Dow Jones Industrial average up. Family members and pastors on airline jet following the announcement and the flight ended in the southern indian open ocean. Flightional search for 370 and released to the data behind the decision to declare there were no survivors. Off, ao bernie made ponzi scheme. The men and a few women hired with little or no Financial Experience convicted by a federal jury after a fivemonth trial. They will be sentenced in july and could get 20 years in prison. Lawmakers in georgia approving a bill that allows guns in bars, pools, restaurants, airports, which also expands on the states stand your ground effect defense following the Sandy Hook Elementary School shooting in december 2012. I want to bring back the professor and giveandtake author adam grant act with me now. My producers told me im a nice person and i like to give a lot and i do not demand a lot from myself that im not positive airtime a very bold. What is your vice . Advice . And that is not a good thing. Quite the goal is not to be nice for other people but to look out for others longterm best interests. People shy away from giving feedback and do not play devils advocate enough and fail to give constructive criticism Everyone Needs to hear but nobody wants to hear. A little more of that would not hurt. That is not necessarily a taker but a giver in the right way. A clean slate here. Adam recommends to do five minute papers. That is a way of adding a lot of value to the peoples lives. Every week, try to make a few introductions. People really appreciate that. One of the things you do is people a reputation possess you and them become your guardian. You are a matcher, believe those people ought to be punished. In terms of salary, shortterm, but longerterm, how does that equate number wise . Class the amount of time you devote to helping others contributes as much to your salary as your actual performance to your job. Others is an equally important part. With whitecollar jobs and corporations versus minimum wage and lowpaying jobs here . What you will discover is the ways people help are different. A whitecollar job, it is the case share knowledge and promoting creativity and innovation is critical. A blue collar job, is more likely that helping people will do is getting work done more efficiently or finding better ways. Class of youre making 7 25 an hour seven dollars and . 25 an hour, there is not that kind of Corporate Culture. Class another example that proves otherwise, a waitress who volunteered to help others in a cook would quit and she would volunteer to do the cooking, they needed someone to move abroad and open up the first restaurant. Even though she is undereducated and under experienced relative to others, because she is motivated to help, she is the only person who has done every job in the restaurant. She gets the promotion at age 20. Then she is the owner of cinnabon. You work really hard at being a giver but you have a family in a couple of kids. How do you say, no, i have to take care of me. Yourure clear about who priorities are. Family first, students second, cali third, and everybody else fourth. Request, the other thing is to ask whether you can make a contribution. Others a biging service if we end up saying yes when we are not in a position to help in a meaningful way. A if you were presented with task, how can you make a giver rather than a demand . A lot of it is trying to figure out what people need. Many requests people bring to you are, i am trying to solve a small problem but they lose sight of the fact theyre looking to accomplish something many times, int. Would take a step back and asked the question, next week, with the remember this, and sometimes that requires a different form of help. Talk to me about Cheryl Sandberg trying to ban bossy. I think it is a great idea for her to say, a lot of girls get called bossy when they try to lead. It does discourage a lot of girls from leading. My Vantage Point is to say, we definitely want to avoid any label that will make girls say, i do not want to step up. But we need to teach girls not to engage and in behavior like that. When someone tries to exercise power without status. I cannot tell you what to do if you do not respect me. You have to earn admiration before people will follow you and listen to your orders. In giveandtake, i talk about how compromise and caring are two ways to earn that that is. Look out for the goals of the group and when you step up to lead, people will admire you and not call you bossy. I was able to read a couple of chapters before talking to. Changed my view and made me tired on how much more there is to do. Thank you for sharing your book with us today. We appreciate you stopping by. Pretty good, so check it out. Following,e we are the copresident and cocoo. He has beenoo the cochief chief executive officer at j. P. Morgans corporate and investment bank. Coming up, if you want to buy lingerie but hate going to the story, there is an app for that. Join me next then, it is a battle of brains versus the leaders. We will meet a cellular a sailor planning to be the wealthiest sailors using only his education. Quite a race. Stay in the loop. A manziel awkward shopping for his life and department stores. Whered you turn if you are a woman who hates to get measured and shopping for intimate apparel . She found the answer. She took her experience for her husband. An app that allows women to try s at home and lingerie most brands do not even offer a rate this this range of sizes, including half sizes. Heidi joins me now. Good morning. A fascinating story. The biggest standout to me is i take a picture of my iphone, of myself in a mere in a tank top, and you can tell me what broadsides i am. How could you possibly do that . Class Computer Vision algorithms. The iphone itself is a Standard Unit of measure. What our technology is able to do is calculate the size of your body in relationship to the iphone. We can calculate your precise measurements. Our app ask as a virtual measuring tape. You can take a twodimensional image and turn it into 3d. Exactly. Unbelievable. Ow did you come up with that . I was at google and dreading brought shopping. It was last on my to do list. The bras start a 39 and go up to 74. That is like victorias secret or something. Each brought is custommade for each woman. You cannot massproduce. It is not truly custommade. We offer additional sizes. We created a half size just for them. You are still able to massproduce and the customization comes after that. The customization is able to personalize the brought. Choosing the strap or lace collar you really love. You recently raised 5. 6 million. Who are your biggest investors and where will the money go . , we areour or his really using the money to fuel future growth of additional styles. We are expanding our size range and launching an android app in the coming months. It is harder because it goes back to the fact that it is all about the size of the phone. With android, there are hundreds of different phones. We are working on it now. File how hard was it to sell people on the idea . Were men covering their eyes . Acid actually, every man has either friends or a wife or a daughter and they have heard them talk about broad fitting problems. Difficult as you think. Was someone ever worried bras would not fit . Yes, occasionally we are wrong. Return rates are generally around 30 if you order online. Hours are 13 . We see a much lower change rate, telling us our technology is working. If you have a problem, no problem. Send it back to us and we will make it right. Thank you. Really fascinating. I am looking forward to giving it a shot. Coming up, hightech meets highfashion. Can google glass go to trend . We will see. Snowstorm. Or another i cannot believe it is true. We are minutes away from the latest new home sales and data. A great piece of video this morning. Michelle obama is taking her lets move campaign to china. She tried the traditional exercise regime. Doing pretty well. The first lady has been touring china for the last week, discussing education. A light snowfall outside the white house. Amazingly, d. C. Doesnt shut down yet. Headed our way in new york. In washington, the Supreme Court will hear a challenge to part of obamacare that requires companies to provide contraceptive coverage to employees. The focus is on two companies. Hobby lobby and canasta. By religious conservatives. Phil knightley joins me now in washington. What is the issue the court has to decide on . It really is whether or not religiously devout owners of private companies should be forced to comply with the contraceptive mandate of the Affordable Care act. Couldis no way the ruling strike down any part of the Affordable Care act. It is not like 2012. Whatever they rule could have a wide ranging impact on further president for companies. If companies themselves are allowed to state they should be police,or religious that could be a wide range of areas where companies could try to push out government interference. Thet sounds a lot like Citizens United case, which gave companies the same rights and political giving asked people. Is that an accurate comparison . Yes, that is right. What you have seen from the Obama Administration is where they are arguing here. It is important to note lower courts have been split on this. There does not seem to be one Straight Path for how this will be ruled. The Obama Administration is arguing now if the court rules in a broadway here for the two companies, it opens the door for private organizations to be able to say, distribute again discriminate against gays, gender, trying to cite some religious belief. The Companies Say that is extending this way beyond the leaf. That is the microissue. Concern the administration has been raising. The slippery slope we might see. Strangers tore no this. That is right. Representing the Justice Department, the Obama Administration, paul on the side of the two companies. These guys fought out the original Affordable Care act battle. That was decided in june to set 2012. Thelegal gladiators. Position really holds now. He has really been leading the attack on the Affordable Care act for organizations opposed to it there more than 70 appearances in front of the Supreme Court. It should be very interesting to watch. Is the snow terrible for you . It is amazing. Just look at the picture alone, it might scare them into shutting down for the day. So far, we are still working and it is an amazing step forward very progress. A little success. Coming up, it is the longest sporting event in the world, covering erie nearly 40,000 miles in nine months. What does it take to compete in the volvo ocean race. The Internet Television service intends to prove it is viable. We will speak to the ceo about what he sees as the future of the company. We will be right at. Back. It is the longest race in the world and completely terrifies me. The event spans nine months and over 38,000 miles, sailors battling the high seas all the way from spain to sweden. Steepmpetition is just as they shell out millions in order to compete. This year, two Brown University theors hope to outshine competition and they have a unique path to the race. They have brown business to give degrees. Skipper joins me now from providence, rhode island. 21 million. How did you get into the crazy race . For me. Your trajectory good morning. Thank you for having me. Doneng is something ive my entire life. Mine foren a dream of a long time. How did you start the journey . It all started with a movie, walt disney. Tell me the relationship. When i was in university, there was a call for applicants to be in a disney produced morningary, the project, basically chronicling a transpacific race. Wasplied to the program and accepted to it and competed in the race. Part of the film. A lot of the coaches during the solemn were former involve a ocean veterans. Since that day, it has been a dream of mine and here we are looking to do it. Congratulations. Before you got here, we did compete in a fast net transatlantic race. Take thatu manage to on without major backing. It is tough. It is all about sailing skill, ambition, and physical fitness and whether or not you are staying in nice hotel rooms and this and that. There are different ways to do it. We are doing it on a lighter budget, but, at the end of the day, it comes down to the sailing and our results speak for themselves. We have seen a lot of good sailors kicked out. They do not have the finances to compete. What made you different . The way we look at things. At the end of the day, it is a business. We have been pretty fortunate to do that way. And make the most of some of our opportunities. Versus just show up and go sailing if that makes sense. Talk to me about that in terms of attracting sponsors, particularly when it came to the volvo ocean race. How long did end up taking you . A 2. 5 yearbeen mission for mark and myself. We were basically put in the Business Development program of the volvo race and have been working with them for about 2. 5 years trying to find onto ship for the race. Class it seems you are able to tailor your marketing to each company. Tell me about the business insight. Sponsorship is difficult. Andtruggled with conviction malleability. You are what you are at the end of the day. Every sponsor would like to see something different. You work for them and it is all about their return on investment. We wanted to make sure we had a good plan to work with all our potential sponsors. We talk about your brown degree and walt disney and you brought up the medical devices company. How did you pair up with them . We were a team looking to do the race and they were a Company Looking to sponsor in the race. Through the Business Development program of the race, we met and were able to get in front of each other and found out we had the same dna. Were both young and ambitious and looking to take the next step. For both of us, the ocean race is that next step. We have had a great relationship so far and look forward to carrying it throughout the race itself. It is not easy, but the costs used to be 70 million. The cost has come down from new boat standards. Talk to me about that a little bit. The race itself changed a tremendous amount. Boats all used to be different. A lot of money was spent in research and development and every team had their own design team and, you know, that was great from a technical aspect of the sport and has helped push amount,t a tremendous but the price tag became a barrier to entry and there were not as many teams competing with the current economic environment. So they made all of the votes the same, which took out the research and Development Aspect and it made it easier for teams to compete because sponsors do not have to give as much money, and yet they were getting the same return on the investment. Congratulations, 25 million is huge. Good luck. Approaching 56 past hour and that means Bloomberg Television is on the markets. Markets are set to open higher. We would be back in a few minutes. We are 30 minutes from the opening bell. You are in the loop there in futures are up slightly. President obama stalker but changes at the nsa. He wants the spy agency to stop sweeping up the phone records of millions of americans. Hedge funds are cashing in on the turmoil over the ukraine. They are finding opportunity in russian bonds and currency trades. The Company Behind the popular phone game kenny crush are going public today. They may only be a one hit wonder. Are getting data on home values here in the u. S. I am joined by michael mckee. Coming out for the third month in a row of decline. Verybody watches it comes in as expected, a slight decline from the prior month. These are january numbers. 2 increase, not bad. You cant complain too much about that. Monthlys did see a decline. This is december to january. Chicago was down one point two percent. Las vegas was up 1. 1 . They are still recovering from how far down they fell. Ir percentage gains are up. Weather is playing a part. There are weather related price slowdowns. There will be price increases throughout the year, but at a slower pace. In a summit bring naji. Rates. The rising people not getting paid that much. How was i going to affect home prices going forward. Good morning. That is a major decision affected for consumers in this environment. A lot of consumers are preferring to rent and the stay more flexible and moving to where jobs are. Wage growth has been relatively stagnant, we have seen concerns. We still have to have a 20 down payment. You have to qualify for a loan. Those are hurdles are keeping the Housing Market from recovering even quicker. The market is recovering only slowly not just because of that but banks are too restrictive on credit. The economy is not growing quickly. Is it a shift away from owning to renting . Fundamentally, i think we are in a recovery cycle that is sustainable. , weou look at the trends went into the recession with 2 million rents units. There is demand for housing in the market. Dropour point, the growth is pretty consistent and pretty good if you look at the overall trends. From a recovery cycle perspective, that number should be close to 3 million. Corporate america has been very cautious about hiring. The consumer is cautious about spending. What you think this will do for the Younger Generation who are supposed to move out of their parentshouse. They are supposed to the driving the market. Withis question came up Janet Yellens press conference. Shacking up att your parents house. Did people stop start moving out and buying houses . That did not show up in the data yet. Economists are expecting it. Will we see demand in the future . Becauset a peak unemployment is so weak in that age range . The occupancy in basements and guest bedrooms have gone way up since the recession. We have 3 million young adults that have moved in with family. This is due to demographics that are not causing them to move out. This is pentup demand. On the rental side, these people are starting to come back into the market and rent units. Those people still dont have the job or the wherewithal to purchase their first homes. Where is the Housing Market best . Is interesting to look. The markets that were hit the andest such as florida atlanta, phoenix, las vegas, those are the markets and the put up the amazing for sent increases in immediate prices. That trend is skewed. Foreclosures accounted for 30 of sales and 2010. In 2010. The drag on pricing has gone away. Metros these recovery are where the opportunity is. The coastal markets like philly ,nd boston and San Francisco those are some the more steady markets. Even those are posting some rice increases. We have to move to florida now. Thank you so much for joining us. Mike mckee, thanks for a much. Moving and shaking this hour, is Francisco Mayor ed lee pushing growth in tech jobs. Tech jobs7 growth in between 2010 and 2013. Silicon valley had just 14 growth. Entrepreneurs like the amenities of the city. They want to be closer to clients. Tech is about exchanging ideas. You dont fill feel innovative in a suburban area. That is why i live in new york. President obama once the spy agency to stop collecting american phonorecords. Google glass goes uptown. It is partnering with some of the bestknown names in eyewear. A bill is inches by Top Republican and democrats on the intelligence committee. Obama administration is expected to propose its own ideas for reforming the electronic seller trails program. Phil mattingly has more on what this means. Is this a big rollback of the program . Yes and no. Here is why. Compared to where these programs were before Edward Snowden started leaking information about them, this would be a major shift. They are proposing that the nsa is not collecting bulk phone records. Phoneill stay with the companies and carriers. The nsa will need a court order to get that information. It is similar to what the administration is proposing. Point is the nsa will solve the power to go get that information. It will still be collected. It is not a total rollback. It is a major change for how the room is constituted. Him they would have to get another court order to get that data. What is the distinction there . To legales it closer precedent as it stands for nonNational Security investigations. The details of the bill are going to be interesting if there are exemptions for certain issues. As it is being laid out right and but Justice Department the director of intelligence would have to go to the pfizer court and say they want a specific phone number. They would have to go in and get that. The problem that ive heard from the Intelligence Community for the last six months is this takes time. If they are in a major bind at that moment, it might take too much time for that to work. And terms of trying to reach a middle ground, that is what they are going for. See with the repercussions are. Thank you so much, phil mattingly. Staying on this topic, the next a security person with 15 years experience. His goal was to make security information more accessible to the public. My big question is is this going to silence the critics . Have audiences to deal with. , momeneral American Public and dad and everyone else, has been concerned about the phone Data Collection. It is the most invasive. Perhaps striking a bit more of a balance where we can maintain National Security interests but be less creepy to the individual is going to help him politically. On the other side, we are looking at businesses and organizations and Economic Impact of the snowden allegations, im not sure this will have impact at all. Deeper critique of this is that it will take time. If youre desperate for the information you might not get it. Does this make us less safe . It is hard for me to comment on that. We know in the cases of things like kidnappings that the police dont have to follow the same set of rules if there is imminent danger. They can sidestep. We can assume these regulation changes will have similar provisions. We will allow terrorists to commit mass a taxable because we need to get to a special court. What are some parts of the program that would be looked at or attack next . Is thebiggest concern Economic Impact with Foreign Countries addressing their foreign counterparts to provide services. We have brazil telling google that dont trust him anymore. There has been a lot of fallout in germany. The american tech economy in particular is interested in seeing changes around how much spying is happening within our own country on the internet. That is scaring away a lot of companies from investing in American Products and services. It does not seem that the changes will a suede those countries. It is like anything. You have to balance domestic and international concerns. The phone records have the biggest impact elastically. On the foreign side, we havent the any proposals about how programs may be reformed to give more confidence. Some countries can avoid the snooping. How do they do that . I have hurt russia can do that, how is that possible . I am not convinced that it is possible. It is a lot of technical effort to try to avoid it. We dont know the scope other than what we do know. It is enormous. The amount of Data Collection the one thingy, of confidence for anybody way to is thatormation secure cryptography that we use commercially is largely not broken. There are some allegations about weaknesses, but commercial grade cryptography is used in a lot of applications is not really broken. If youre using crypt college cryptography rectally, your information will be safe. Other countries are doing the same thing. Theyre trying to protect themselves. Were going to talk about a new underground hacking market and some numbers associated with that. We are one of the top three players. Well be right back with in the loop. Hackers are hocking exploits for as much as 300,000. That is according to a new report from rand and juniper. In your opinion, what is the price appreciation of the hacking economy over the last five years . There are two different sets of underground economies. Se action on michael astronomical numbers for exploits, the knowledge of how maliciouslaw to went code on a computer, those prices are being fueled by organizations like the nsa. Needed to buy this information from hacker mercenaries. It is difficult to develop it yourself. If you need to get into somebodys iphone, that is the quickest way to do it. Governmentthe interested in this as well. What country has the most homegrown hackers . It is hard to know. Most of the economic terminal activity like the target breach originating out of the former soviet union countries. I see a lot coming out of russia , ukraine, romania occasionally. When it comes to this exploit development, it is a bit more distributive. When we talk about the big dollar stuff, it takes a very clever mind. The development of the stuff is happening in the u. S. , the u. K. , france, Southeast Asia and throughout the world. Market so the resilient from attempts by the government to shut it down . Our marketplace is being fueled by government. It is not illegal to develop the exploits or sell them. The governments want to consume them and they buy them. No one wants to outlaw the practice. On the criminal side, we talk about crypt credit card theft, gets more competition. We have to leave it there. We will be right back in just a few as we head toward the openig bell. You are in the loop perko. We are on the markets. These are the last minutes before the opening bell. Pointing to the market opening higher after two days of selling. Onhave the numbers out housing. It prices cooled off a little bit in january. Consumer confidence out. Keep an eye out on comments from fed president s. We will be on the markets again in 30 minutes. Lets count down to the open with the top 10 trades. The only one that you need to know about is number 10. Hadrmick, the spice maker results up. New company. Ing a number nine is ebay. Endorse carl icahns board candidates. For icahn has been calling a spin off of paypal. Number eight is google. They are trying to sell their glass hardware go mainstream. Rayban and oakley brands will be included in the google glass. Sonic. Er seven is earnings are up 15 in the Second Quarter and beating estimates. Sonic is reporting a decrease in costs and expenses. Six is the topselling diabetes treatment. It with knowledge of the matter say they could value the maker 10 to 12 billion. Number five is general not havehey may recalled all chevrolet cars with the defect. That is the result of two complaints filed yesterday. Gm would not comment. Number four is walt disney. They are buying it maker studios for about 500 million. Disney said the start up will provide a valuable data about how viewers watch video online. Number three is carnival, the cruise line Just Announced earnings in line with estimates. They had a disappointing profit forecast for the year. They have grappled with a few pr disasters. They have defeated earnings or chair per share. Is an apparel company. Theirsults trailed analysts projections. Number one is all green. This is the largest drugstore change chain. Earnings were below estimates. Announced plans to close 76 stores during the second half of the year. From the trade to the call, there is the opening bell. Spring in the managing director of Wells Capital management. Will the u. S. Market continue to improve . What is the upside to you are looking at . Shortterm, we will tread water. As we get into the second half of the year we will see rest accelerate. We will have higher earnings and that will take the market back up to higher levels. Based on your thesis, what is the main contributing factor to this upside . I think we really have a continuing process in the american economy. We have a huge lift from the shale revolution that is added companies. We have a new Capital Expenditure cycle that is going to reacceleration over the year. We will have innovation. I think the Health Care Sector is going to be a real contributor with much higher growth. Youre talking about the shale revolution, you been looking at the case, tell me about it. We put out a case for shale gas. Basically, their point is that if you look at the rise in natural gas prices, that is putting coal back and play. You are seeing a lot of and histories turning back to coal in place of natural gas. Strength. It is been a strong couple of months for them. The rally may already be bought out. In shale, a lot of the easy oil has artie been found. It is driven up the cost for these guys. Where do you find the value . It is not just a case of the cost of gas going higher or oil stain higher. Many Companies Benefit from treating storage and transporting. It is a huge boom we are going to have in exporting. Many Companies Like commodity capital chemicals are huge beneficiaries. Them aoing to make globally competitive. Those the kind of companies i am looking at. A quick followup, we went exporting more, or that drive up costs for those Chemical Companies . No, i dont think so. It will take years. Have shownompanies so Much Technology improvement that the price of gas goes up a little bit there is still a huge gusher in additional gas that can be brought into the marketplace. Gas prices will stay relatively low and that will be a boom for i knowc companies. You like the healthcare sector, you been looking at biotech what did you find . Tothere as a debate as whether or not biotech stocks are in some kind of bubble. You can see why people are coming to that conclusion. Inre has been such a rise these stocks. They have been pulled back in recent days. If you look at the nasdaq versus the more broad s p, we have seen that those biotech stocks are doubling what we have seen in the Broader Health care category. Get muchsee valuations more stretched than they have been in the s p 500. More specifically, there is some concern that those biotechs have gotten ahead of themselves. Youre looking at higher valuations, how do you manage that . I think that is right. Some areas have gotten ahead of themselves. The price is more than fully reflect that. Companies in the Health Care Space that should have above average growth. Thank you so much. We really appreciate it. Coming up, it is been a busy few weeks for tech ipos. We will open the box for a look at the latest company to announce its plans to go public. These are the top tech stories. Alibaba and baidu are taking on banks in the most populous country. Theyre starting online financing. They have drawn 80 billion in deposits. Theyre asking for more regulation on their online competitors. Company box is filing for an ipo. They have yet to turn a profit. Their revenue costs have outweighed revenue last year. More west coast ipos. Is preparing for its market debut tomorrow. At 7. 6l be valued billion. That is three times its projected sales. It actually makes money. Taking on tv broadcasters and challenging them in the retransmission market. The final battle will take place in the Supreme Court. Coast correspondent Jon Erlichman got an interview with the ceo. I think what is fascinating about this story is it can have a huge impact on the future of this business. There are billions of dollars of fees paid by the Cable Companies to the broadcasters. If this decision plays in favor , theservice like dario fees they are not paying become justified. The ceo does not come across as someone who is fearful or. Heres an example. Clear, if you were not successful at the Supreme Court, is there a plan b . No. There is no plan. We do think it is the right thing. Progress is important. The mission is to try and create a platform. If we dont succeed in that despite our good efforts and the merits of our case, it is what it is. There is a viewpoint that the adopted by aing lot of cord cutters. He says anecdotally that a lot of people who use the service do have cable. They will use it if they dont want to have a cable in a second room in their home. I was not aware of that. It seems like broadcasters do have a plan b. Move to threatening to cable. Are they concerned about that . Be concernedo about that. There are sports leagues themselves that are putting pressure on the broadcasters to think about moving their big sports games to cable from broadcast. This may be the place where aere o has a good argument. They are required to make programming available to the masses. There are millions of people that are watching the broadcast networks on antennas. They may not be usingereo a lot of players in the paytv world have made the argument that we can replicate the technology. It is a free country. You invested a tremendous amount of money and resources. This is a complicated technology. I an not suggesting were the only people in the world. Speaking of the technology, we were speaking with him at a company. Ring tomorrow we will go behind the scenes on how this technology all comes together. Were looking forward to that. Barry diller has shown interest in the company. He was one of the early backers. I think that is made the story very interesting. Diller has strong ties to Traditional Television from his days at fox. He has made a part of his fortune on the evolution of the internet. He has been fascinated by the potential that comes with streaming television. He is an investor in the business. It does add to this tension between the traditional world traditional broadcasting and this new technology that is out there. It is eight dollars a month foraereo. Will they win raise the cost if they win the Supreme Court case . They have a package that is very netflix like. Month package2 a were you can be recording a live program will you watch live program. There is a lot of stores the comes with using the service. You can hold onto a bunch of shows for a longer. Of time. If youre paying 12 a month, you can store more. In the neighborhood of 26 of the current subscribers, they are paying that 12 a month package even though they dont market it. That was a good piece of evidence to them that people are going to be willing to pay more. You never know how things will layout. It could introduce more pricing. We are looking at netflix thinking about more pricing. Erlichman catch jon on bloomberg west. Coming up, disney is the happiest place on earth. Withompany is joining us what he is doing to differentiate his brand. Stay in the loop. Menses is the largest selfserve yogurt company. They are in 27 countries. Their adding more. The ceo joins me now. Welcome. I love my rodeo. How hard is it to start in certain countries . It is not easy. It is about understanding the market you are about to penetrate and placing new to Market Strategies to capture the right hand brand position. What are some of the roadblocks that you fake but face . Is it the cost . It can be a multiple of those things. You have to bring a product that deals with taxation. We ship around the world from the u. S. We have to overcome those little challenges. You have to localize your product. In order for a brand to succeed, you must be a part of the local community. If you do a good job at it, youll have a good and attrition into a new emerging market. Milk frome your california. You ship that all around the world. How far does it get . There are challenges. We have a strong logistical team. We have the ability and knowledge to bring the product across the world and make it happen at the right time and the right place. One outsource locally . There are issues with quality assurance. It is about delivering the same experience all across the world. One of the things it makes a Franchise System is so strong like mcdonalds or subway is the ability to deliver the same Guest Experience every single time. Acrossping products from the u. S. , it helps us achieve that result of making sure that every cap makes you smile. I like that. Have you been to a case for you could not get the ingredients into a certain country . We had some challenges. We were able to locally source of those. We are normally successful in making it happen. What control locally do you want up having if they are franchisees . The secret is finding the right partners. If you find people who are Business Savvy and understand the brand that you are bringing into a new country, you have to put the faith and trust in their hands that they will do the right thing. They will deliver the right Guest Experience. By choosing the right people, you would get the right Customer Experience youre trying to achieve. You still have control but you want the same experience. We do both. Rathereve in education than just compliance. Agitating properly leads to even better results. You were on Undercover Boss what was that like . It was an interesting experience to go undercover and work sidebyside with the team. It was valuable and changed the way we looked at our business. . Ow can we deliver this is a tough question. What is your favorite flavor question mark if you only have one. I have always been a cookies and cream guy. Solid. I like the tartness. Thank you so much for joining us. That wraps it up for today. The chief executive officer of a Computer Security company will join us. A. M. Is tomorrow at 8 00 eastern time. Have a great day. It is time to go on the markets. We are 30 minutes into the trading day. You can see all of the major benchmark indexes are in the green. It strikes stocks are rising. In 20 cities have cooled off a little bit from last month. We are waiting for new home sales data. You what is happening on the treasury markets. It can see that yields are coming up a little but. Treasuries,h treasuries have ballooned in the past six years. At first it was foreign buyers, now they are slowing their purchases and homegrown investors are picking up the lisa brahm of its is joining me. There is incredible growth in the market. Ballooned tot has 12 trillion. The chinese and the japanese were responsible and bought a lot of the bonds of the u. S. Issued. 2010, china accelerated i30 each year. They have bought much less. Japan is slowing their purchases as well. The reason why we care is because if demand slows, the question is could yields ride more rise more . That is still Pretty Healthy to support a recovery. Is still relatively low. If yields and treasuries rise too quickly, that could deteriorate the value of debt across the board. Treasury is in a benchmark rate. Of this is a very important rate in the market. The concern is that if demand slows too much, this could cause a disproportionate yield to derail the recovery. What are investors saying . There is a slowdown in foreign purchases. Counterintuitively, u. S. Investors are picking up the slack. Particularly, pension funds. They have gained tremendous returns from the stock market. That is so interesting. We have guests talking about that. A rotation back into bonds. Especially with these pension funds. Big have set had such returns. They have extra cash to put back in treasuries and the longer dated 30 year treasuries. They dont care as much about the dollar price dropping a little bit. They want to lock in certain yields coming in at a regular pace with obligations they have to pay out. That is what they care about the most. The issue is that china and japan feel less of a need to buy u. S. Treasuries. Own a tremendous volume of u. S. Debt. They are still the majority holders outside of the federal reserve. It does seem like all that bind did help the u. S. Get out of the recession. Hey do so much for helping us we are going to be on in 30 minutes. Market makers is coming up next. Out of theicked club. It is that enough to stop them from a full on invasion of ukraine . Youtube sensation, disney will pay 1 billion for one of the hottest names in online video. What will bob eiger do with this business . Growing shortage of pilots. We will look at why