The zionist union. The price of west texas intermediate down 12 . I think were going to see equilibrium this summer. That does not mean we will see we will not see a dem, but it will be a temporary dip if we do. We are running out of storage in the u. S. Japans central bank not planning to extend its stimulus plan. Inflation will pick up even if Cheaper Energy costs consumers lower prices. There might be another Interest Rate cut this year. In a few hours, House Republicans will unveil budget ideas. It would partly privatize medicare, turn medicaid into state grants and oh and appeal obamacare. Apple finetuning its television plans. Their Online Television service will debut this fall. It would offer about two dozen major channels on apple devices but not on the list is nbc because of the fallout between apple and nbcs owner. Apple would soon except blackberries and android phones from people who want to buy iphones. Those are your top headlines. The other news to watch is the fed or watching the meaning of the fed. They start as the federal open Market Committee begins there today meeting today. Officials will drop the patient pledge from their stamen and some 45 saw this as a step towards a june increase in Interest Rates. Josh, 90 b drop patient. Is that a good sign . Josh janet yellen had a rosy outlook. Betty she did have a rosy outlook. Does this put yellen in a bad position . What if she does not drop the patient language . Joshsjosh you are more likely to have a market reaction. A lot of times, the fed has followed through. They tend to follow through if they have already started a program. It does suggest some risk for this meeting. Betty someone says they should have raised rates long ago. David was adamant the fed has done nothing for the economy. We have to get off the monetary would and bat the monetary heroin. We cannot have bubbles inflating and crashing. Betty he called it monetary heroin. How do you respond . Josh they have been trying to provide anesthetic. The reality is we have had a weak recovery. The fed has seen it as being necessary. The fact we have not seen inflation take off and we have had years of people warning, saying to provide all stimulus we will lose control of prices in the u. S. , that has not happened. We seem to be getting a free ride so far. The question is whether we can continue to do that. Now we do see a Strong Enough domestic momentum that we need to start looking forward a little bit more. Betty are you surprised about the rate increase in june . Josh Oil Prices Drop again it is possible because the fed has seen has said they want to see prices stabilize. Betty thank you. Josh wright. The chairman of the house and Senate Budget committee will unveil their spending blueprints this week. We are expecting details later this morning. Peter cook has more on the proposals and why they matter. Republicans are they on the same page or is there a war going on . Peter the early indications are not good. There is clearly a division. It gives republicans a chance to highlight spending priorities, point out differences in the plans and we are seeing some splits within the republican ranks before the plans go public. Tom price replaced paul ryan this year. Some key components of the price plan borrow from paul ryans past proposals. He will need to find 5. 5 trillion in savings. He anticipates a repeal of obamacare. There are some 70 republicans in the house who have signed a letter saying they cannot back a budget resolution that maintains the current defense sequester cap. There are several who want to see the cap stay in place. Betty defense spending is one area to watch. One big area of contention. What else . Peter you will look for price to offer more defense dollars but outside the days budget. Some are going to call that a gimmick. Democrats looking for the domestic and Entitlement Program cuts that they are saying go too far. Look for them to highlight medicare and medicaid changes. How will republicans use reconciliation . That would allow them to pass certain things with only 51 votes in the senate. They can do that to make it easier to pass tax reform. President obama still has his veto pen so he has ultimate leverage here. Were going to get a senate plan that could come as soon as tomorrow. A senators plan will differ from tom prices. They will have to reconcile their own differences if they will have a budget in place this year. Betty thank you. Peter cook, our chief washington correspondent. We will be talking with chris on the budget. Israelis have begun voting in the race for Prime Minister. The election is too close to call. Benjamin netanyahu was among the first to vote and if he wins will be the longestserving leader. Elliott got kkine, what do the polls show you . Betty you are not allowed to have exit polls until the polls close. That will be in about eight hours time, when the voting ends and we get the first exit polls. They have been voting since 7 00 this morning israeli time. It is a long voting day. The final opinion polls were allowed to be published last friday and they did indicate that the Opposition Zionist Union was set to become the Biggest Party in parliament with about a four seat advantage over netanyahu. A coalition is a definite. We do not know who will be the Biggest Party. If netanyahu wins, it could be the longestserving leader. Only if he last the full fouryear term. Betty what about the comments saying there is no palestinian state while he is Prime Minister. How is that being received . Elliott he is trying to shore up his right wing base to ensure the votes are going to other rightwing parties, led by the Party Minister giving him a chance to form the party. They are not going to go down well with the white house. He was saying, do not forget we are in an election. It does not necessarily translate into policy. Betty thank you for joining us. Elliott gotkine and the middle east editor in chief. He will be monitoring the grounds all day today. He will be here to break down the results for us as they come across. Much more ahead. A morning of ceos for you. We will be talking to patrick doyle, how they plan to cash in on march madness. Also, American Airlines ceo doug parker, on his Company Joining the s p. You do not want to miss it. Stay in the loop. Betty one m a not likely to happen. Scarlet fu has more. Scarlet rejecting and saluted bid from simon. They turned down the 91 share. They say it undervalues the company. Part of its defense it is making a couple of government changes, including the Dividend Distribution of. It has to do with preferred shares and a limited duration rights plan. The takeaway is they are saying no to simon properties. This is being discussed. We will see what Simon Property groups response. Betty here is a look at our top stories. One Goldman Sachs division predicting annual growth above 10 . They saw an 11 revenue jumped last year. That is the most since the financial crisis. It includes 111 billion in new assets. Chinese investors are betting monetary stimulus will revive an economy the set by four years of slowing growth. Chinas benchmark measure extended and will revise growth. s 1. 6 percent overnight. Those are your top stories. American airlines is joining the s p 500. They will be added after the close of trading on friday. Matt miller is in washington. Matt . Matt the s p 500 a bonus. The reason we are gathered with is because you have formed a coalition to compete with airlines that you say get unfair subsidies. We are working together to ask our government to investigate, to have consultations with the governments of the uae about what we presented them, over 40 billion in subsidies that make the plane that make this Playing Field more level. It is not good for the United States, it is not good for u. S. Jobs, something we think we should have consultations about. Matt every roundtrip route that American Airlines lose to these Gulf Airlines loses america about 800 jobs. How would you turn that around . Doug American Airlines would like to fly to india, but given how low the fares are because of the subsidized flights that fly over the middle east into india, we cannot do that. They are flying at fares we cannot beat profitable that cannot be profitable. A lot of airplanes coming into these carriers. They will need to fly them somewhere. This will get worse, not better. We would love to compete with them on a level Playing Field. Matt what does victory look like for you . How do you turn this around . Doug we have asked for the United States to have consultations and while those talks are going on, ask that no additional flying be added to the United States from those carriers as we investigate this. We find there is nothing amiss here everything would be back to where it is now. We have some compelling evidence that there are in norman us subsidies here. Matt i am sure consumers feel like they benefit from this. In the long term, you do not think it is good. Doug it is not good. Dumping steel in the United States free trade is at the Playing Field as well. In this case, if we do not level the Playing Field, jobs will flow from the United States to the gulf and that is not in the interest of consumers of the United States and indeed, in the longterm, we are flying lesson those carriers are flying more and you will see fares go up over time. Matt your stock has doubled over the past year. You are getting 2 billion back to shareholders. You just got into the s p 500. Doug we should be in the s p 500. Those are metrics that get us into the s p 500 but this is an airline in bankruptcy 15 months ago bit 15 months ago before the merger. I think it shows the strength of the merger. Producing real profits and customer value. We are happy about it. Matt labor is a huge cost for you. The other big cost is oil, which is going well. You do not hedge. Would you think about starting to hedge . Doug we have done really well by not hedging. That has served us well. We continue to look at it. In general, the cost of hedging far outweighs the benefits. We will continue to look at it, but we are happy where we are today. Matt thank you. Doug parker, the ceo of American Airlines. I will be hanging out, covering the event for you all day. Betty thank you. Matt miller in washington for us. We will have more, including another ceo dominoes. Betty you are watching in the loop p code good morning. Let the madness begin. Have you fill your bracket out . Companies like dom and is Companies Like dominoes sold more than 1. 7 million highs during last years game. Enough to get 25 feet 25 pizzas to each person walking to the final game in indianapolis. Patrick doyle joins us now. It is great to have you back on the program. What are you going to do different . Patrick we have a 50 off deal. Customers order online and they get a terrific deal. The important thing is that we handle it. It is busy the next three weeks. We are hiring people, staffing up our stores, training folks to give our customers a great experience. It is getting going now. We would like to grow over last year. Betty i asked you this last year, how does this compare to the other big sporting event where you also eat a lot of pizza, like the uber ball . Like the super bowl . Patrick the thing about march madness, a goes on for three weeks. It is consistent over time. Overall, we love it. It is a great period of time for pizza sales. Betty did online ordering it is day half of the order comes on line. Earlier this month, you started taking orders on pebble watches android style watches, what about the apple watch . Patrick we are looking at it. We want to be everywhere our customers are in make it as easy for them to order as possible. When we put ourselves on to a new platform, we give customers the ability to get to us more easily and we sell more pizza. Betty what is stopping you from doing it now . Patrick prioritization. There are a lot of places we can be and we are going to take a good look at it. Betty i talked about it this morning with some of my other colleagues. We call it that pete the lobby we call it the pizza lobby. They are fighting this menu labeling, grouping pizza along with other fast food. The pizza lobby, including your company, you, yourself, have been unhappy with labeling pizza as fast food. Pizza can be bad for you if you eat too much of it, but what makes it different than other the what makes it different than the other fast foods . Patrick we have a great common sense solution for it. Our customers come to us digitally. If we give them information, we want to do it where they are have a calculate the calories for them they are coming out with a regulation right now on telex machines, saying you have to do it on menu boards and on the stores and in the stores. That is not how we do business. It does not make any sense. Our small franchisees will have to spend money on something no one ever sees. If we have to show this to customers, lets show them where they are ordering today as opposed to regulating something that customers do not use. Betty has mcdonalds ever complained that putting the calorie counts cost that much . Patrick that is their business model. People come to their stores. That is not our business model. People get it delivered or order before they come to our store. If you are going to do it, do it where it has an effect on the people that will look for it. The great solution is logical thats what we are in d. C. Talking about. I am confident that common sense wins out at the end of the day. Betty the stronger dollar, i know about 36 of your operating income comes from overseas. How does it impact your business . Patrick in the shortterm, and negatively impacts it, but we deal with it. You will go through these cycles and right now the dollar is very strong. At some point, that will come back the other way. It will be great when it does, but we are dealing with it just fine. Betty thank you so much patrick doyle. Dominos ceo. We are getting breaking news on the housing market. They are down 17 . Equity futures took a little bit of a turn for the lower. I want to get to scarlet fu. Scarlet down 17 for the month versus january when people were looking for a drop of 2. 4 . This is a weatherdriven decline here. Having served a hundred 97,000 overall, that is an annualized rate. That is a decline from the prior month figure of one point eight million. Perhaps this indicates the drop we saw in february was temporary. It does give us this tone of Economic Data misses. Betty as you said, it is very likely weatherrelated. Thank you. Heres a look at our other top stories. People overseas are heading to the polls in israel to vote in a very tight race for Prime Minister. Turnout is higher than it has been in nearly two decades. Benjamin netanyahu is trailing isaac herzog. Netanyahu made an appeal to israel conservatives. I think anyone who moves to establish a palestinian state is giving territory away to radical islamic attacks against israel. That is the reality that has come about in recent years. Whoever doesnt understand that is burying his head in sand. The left is doing that. It has buried its head in sand time and time again. Betty the Prime Minister will probably not get a majority meaning the winner will have to form a coalition government. A deal in the Iran Nuclear Talks could make a huge impact in the global oil market. The oil minister of the country says what would happen if sections would be lifted. Oil could rise by one Million Barrels a day in months. That would double its current shipments. Sanctions could continue if iran does not agree. After reversing one of his debts , a little bit of revenge here. Pimcos total return fund is now less exposed it is the worlds biggest bond fund. He departed suddenly as we all have known and heard in late september. Apple finetuning its television plans. The wall street journal says the companys Online Tv Service will start this fall and offer two dozen major channels on apple devices. Nbc is not on the list because of the fall out between apple and nbcs owner comcast. Apple loosening its trade in policy. It will accept the blackberries and android phones from people who want to buy iphones. Iphones are outselling Android Devices in the u. S. A change at the top for uber. They are looking for a new chief financial officer. The current one is leaving but says he will stay on as an advisor until a successor is found. Uber expanded to more than 53 countries during his tenure. Baseballs prodigal son is asking for reinstatement. He was banned at 16 years ago for betting on games. That makes him an eligible for baseballs hall of fame. The commissioner says he will think it over. Still to come, the annual budget circus returns to capitol hill. Congressman Chris Van Hollen joins me. He is next. Betty i want to return to politics and the annual wrangling over the budget on capitol hill. In about two hours from now, we heard there is a fight brewing within the gop over defense spending. That might create an opportunity for democrats to negotiate for their priorities. What exactly are those . Chris van hollen was a Ranking Member of the house Budget Committee. He tweeted out yesterday. He said it is time for better and for such an better paychecks for working families. Congressman, thank you for joining us from washington. We are getting both versions today and tomorrow. Is any ground you can see between the democrats and republicans . Congressman van hollen it hasnt been publicly released but we have seen preliminary indications. Those indications are that while we have a new budget chairman we are seeing the same old budget from the previous chairman here in the house of representatives, and that is a budget that gives a green right to another round of tax rate cuts to very wealthy people and special interests. At the same time, it makes devastating cuts in important investments like our kids education and making college less affordable and less investment of an infant less investment in infrastructure. It is not good for the middle class. It does not address the middle class squeeze or the squeeze being felt by working americans. Betty there is nothing from what you have preliminarily have heard you can align with . Congressman van hollen we havent seen all the details but the overall framework is one that helps folks who are already doing great, but it is not good for people in the middle of trying to make a paycheck day by day. Betty what is really the big tension right now is what is going on within the gop and those who want to raise military spending and those who want to keep it capped or cut defense spending. Here is one comment from Lindsey Graham where he says this is a war within the republican party. You can shade it whatever way you want but this is a war. How do you see that watching this from the other side . Congressman van hollen that is an important question of how this battle shakes out in the house and senate. You have a battle between the defense hawks. The budget helps increase our deficit spending and defense but also invests in things that are important to help our economy grow like Scientific Research and innovation and our transportation networks. What the president has proposed to republicans is let us invest more in defense, but let us also boost our economic growth. We are hoping that some republicans like senator mccain and senator graham will see the benefit of moving down the track. Betty you mentioned spending and investing in the middle class and helping boost programs that help the middle class. We talked with Alan Greenspan last week where he talked about entitlement spending and why congress will not tackle entitlement spending. I just want to play you one part of that conversation with the former chairman. Is being crowded out by very substantial increase in government expenditures basically entitlements because both parties dont want to talk about it largely because it is considered third rail of american politics. Betty you might say some republicans like paul ryan want to tackle entitlement spending. Why leave it up to some of them . Why not the democrats . Congressman van hollen paul ryan and i think this budget addresses it the wrong way. They shift the burden of the costs of medicare the Medicare Program and on the backs of seniors. But we have done is take the approach to changing incentives in the medicare system to move away from a system of quantity of care to quality of care. We moved to one that rewards the value of care. We have seen dramatic savings as a result of the new changes in the system. The Congressional Budget Office estimated our spending on medicare and health care over the next 10 years will be almost 1 trillion lower than their projections from a few years ago because of these reforms we are making. Not reforms on the backs of seniors which is what the ryan republican budget does but reforms from making the system smarter. Betty we have to leave it here but thank you so much. We are about 45 minutes into the after the hour. I want to get back to the breaking news desk scarlet fu taking a look at some of the action this morning. Scarlet we told you how mesa ridge has rejected a bid from Simon Property group. Shares are trading lower in the premarket. Simon Property Group not trading yet in the premarket. They turned down the offer saying undervalues the company. American airlines rising in the premarket. It is set to join the s p 500 replacing allegan. It will become the benchmarks 30 u. S. Carrier. Alibaba getting an upgrade. Shares already reflect counterfeit audit risks product risks. Almost 440 million shares will be freed and available to the public as insiders get out of their positions or are allowed to at least. Betty we will be back in two minutes. Betty heres a look at our top stories this morning. Iran sending advanced weapons to iraq to help fight the islamic state. The weapons include advanced artillery rockets and missiles. The concerns are that they are not precision guided and may cause civilian casualties. They are trying to recapture tikrit from the islamic state. The u. S. Not taking part in assault on tikrit. Nintendo is going mobile. The Company Announced today it is teaming up with a mobile game company from japan. Click a button nintendo characters on tablets and smartphones. They are planning a global Membership Services for a wide range of devices. Chinese billionaire is weighing a bid for wakefield. One company is said to be among potential suitors. Those are your top stories. The acquisition of cushman would add to a growing list of real estate deals made by chinese buyers. A Chinese Insurance Company bought a Hotel Recently and in october, another insurer agreed to pay for the walden for story on park avenue. The waldorfastoria on park avenue. Joining us now is joe. I want to first get your take on the chinese, who seem to be suddenly having a thursday appetite for u. S. Real estate. What is going on . Joe it is a reflection of peoples concerns in the market. Betty they are scared of their own homes. Joe yes. It is brazil and russia and ukraine in the middle east and venezuela. The biggest run of money is really what is leaving china. It is everything from Medium Network individuals to superhigh net worth individuals. They are a little bit afraid. Does this really last . Two things change . Betty in the meantime, you have come here and make money here, but you are armed with a stronger dollar. Are you going over there . Joe you would think i would. I am still very bullish on more developed markets like the United States. I am afraid the markets like resilient and china i mean i think there will be a time when we will enter back into markets like that. Will we have been doing of late is shifting in terms of dealing with a lot of wealthy people from around the world that have come to us and been partnering with us saying they want to buy new york, san francisco, chicago, miami. Betty and you bought in montreal recently . Joe yes. We see the Canadian Dollar weak with a strong u. S. Dollar. It is a safe country. They thought the show would have greater exit and import values. It is still a very safe stable political environment on the United States border. We still have an opportunity with quality combined with utilizing the strength of the u. S. Dollar. Betty what about the news that macerich is rejecting the buy . Joe whether it is cushman or blackstone or the play by simon for the portfolio, it is a thirst for quality real estate and quality real estate companies. In the case of cushman, the management is fabulous. It is run by a very astute guy. Who wouldnt want to own them today . Betty great to see you this morning. Thank you so much. We will be back in two minutes. Betty much more ahead. The newest relationship with the nba, a slamdunk or foul play . We will be back. Betty welcome back. We are 30 minutes away from the opening bell. Heres a look at our top stories. Futures indicate stocks will open mixed. Home start shows the biggest monthly slump in four years. The Federal Reserve meeting starts today. Chinese investors betting monetary service will reverse four years of growth. Chinas benchmark measure extended its world beating rally and expectations monetary stimulus will provide growth. Shanghais index up over 1 . Republicans will unveil their budget ideas. And plan would change medicaid to state grants. That will be out at 10 30 a. M. A deal on the Iran Nuclear Talks could change the oil markets drastically. What would happen if sanctions are lifted . He says irans exports could rise by one Million Barrels a day within months. That would nearly double its current shipments. U. S. And other world powers are offering to lift sanctions if iran promises not to build nuclear weapons. Voter turnout in israel today is the highest in nearly two decades in a race and the race for Prime Minister is wide open. Isaac herzog is making a strong challenge. Polls show netanyahus party is trailing. Netanyahu made an appeal to israels conservatives. I think anyone who moves to establish a palestinian state and evacuate territory is giving territory away to radical islamic attacks against israel. That is the reality that has come about in recent years. Whoever doesnt understand that is burying his head in sand. The left is doing that. It has buried its head in sand time and again. Betty the top vote getter for Prime Minister will probably not get a majority meaning they will have to form a coalition government. An uplifting sign for American Airlines and the air industry in general. The Carrier Joins the s p 500 today. Analysts say it is an indicator of the strong comeback by airlines overall. American replaces drugmaker allergan. Those are your top headlines. We are under 30 minutes away from the start of traits i want to count you down with the top 10 headlines. Joining us now is Olivia Sterns. Number 10, if you are going to the Berkshire Hathaway annual meeting, you better have booked your hotel room now. Apparently if you have not, you can go on airbnb and rent the same house that Warren Buffett grew up in. How about that . I would be looking underneath every windowsill for stuff he wrote with a pen knife when he was three years old. Maybe there is a stock pick in their. In there. Betty Warren Buffett has been encouraging people to go on airbnb to find a place. Olivia how much is it going for . Betty we dont know. Airbnb is great. You go on there and find lots of rooms, but it is hard to micro search. I was typing in everything i could think of. Maybe i am really not a good searcher. He could do another auction for charity, couldnt he . Who owns it now . Betty probably undisclosed. I hope they are ok with it. Betty 40,000 people dissenting on omaha. Number nine, mcdonalds in hot water. 79 of workers were burned in the past year at least once. 20 a mcdonalds workers who say they were burned on the job have filed complaints. Just pile that on to another thing that mcdonalds has to worry about. Olivia it seems mcdonalds has to work on every single part of its operation right now. This is a new front in the battle for higher wages. That statistic 79 of fast food workers have been burned on the job. It make me feel a lot better about the fact that i burned myself regularly when i cook at home. Betty what about getting burned by mcdonalds coffee . Bob and winning. Olivia some employees have gotten burned because it were trying to clean the grow because it manager put pressure on them to win it quickly. If they dont do it quickly enough, they will miss part of the shift. Bob \ what is worse is they are forced to eat the food. Betty nobody likes mcdonalds. I feel like i am always defending them. I like their fries. Number eight, pictures raises 367 million from investors and my get 211 million more. It is valued at 11 billion. Its value has doubled since last may. The bottom line on that is that it is getting bigger and the value is getting stronger. Bob i always thought scrapbooking with something grandmothers did. What is the advertising work on interest . Olivia i never go on it. I am on instagram. Tom is on interest . Bob yes, or he used to. Olivia when you think about these valuations . If it is like they are throwing a door on a board. Betty i dont ipinterest at all. Once you are on it, you do stay on it though. Bob like mcdonalds fries. Betty alibaba plans to use a Partnership Structure to allow top management to maintain control of the companys board after an idea. Bob they couldnt do that and because hong kong has rules against folks maintaining the wealth of the family in other words. They can do in the United States because what the key relation by a very few will is encouraged. The 99 of the world can just be darned. More power to them. Olivia i am completely taken back by the scale. They have more than twice the purpose of the United States in users. Jack ma owns 49 of and financial. This thing is a normative and contribute in so much to his incredible wealth. Betty it is huge. You can go to every business in china and it can suddenly have a target market that the next day that exceeds the next day. Bob i want to see jacks home on beer be on airbnb. Betty the newly formed online tv channel for apple will not include mbc after falling out with comcast. They sell out, but can you have an Online Tv Service without nbc and all its programs . Olivia not when the olympics comes on. Betty what about my real housewives . Bob are we moving to a model where you can get nbc for a month and then drop it . Hbo for a month and then drop it. In my household, mad men is coming back in april, so do we need amc all year long or just when madmen is on . Betty what i find interesting about the bundle is it looks a lot like your cable bill. Of all of this was supposed to be cheaper. We thought we were going to a more a la carte mode. Olivia we are going back to a bundles now we have to sign up for multiple bundles. Betty still working out the money. Procter gamble set to explore potential sale or ideal of its beauty brand which accounts for over 20 of the companys revenue. Will this move help eng revenue soar to new heights . Will find out next. Betty week continue to count down to the opening bell. Where halfway through, meaning it is time for our deep dive into number five. Consumer conglomerates. Procter gamble marching to get smaller. Ge has a Consumer FinancialServices Unit and they are about to spend that off. P g will explore the sale or ipo of its beauty brands. Julie hyman has a closer look at this. Let us start with png and why they want to spin off the beauty products. Julie p g is talking about spinning off several. We see a trend where we see old ceos coming back to companies. He talked late last year about looking at 100 of the companys different brands and spinning them off and getting rid of them in some way. Getting the duty brand in one swoop would get rid of a decent number of them at once. We are talking about brands i cover girl, head and shoulders allspice old spice. They own a lot. The problem is the business has not been great. Since 2012, we have seen the sales fall by about 4 . They struggled in the business because of the really tough competition. Some analysts said they were not being innovative enough. To mix sense it makes sense. People familiar with the Company Plans so they are looking at the possibility of doing this. Betty they had a hard time in emerging markets. Julie a lot of companies did because we have seen a slowdown in some of those markets. For a while, it was one of the areas for strong growth for Companies Like png. P g. That has slowed down. Betty there are others now that are looking at spinning off are selling or ivoping their units. Julie there are some companies that are deacon, writing de comglomerating. In some cases, you can see this spun off entity is more attractive to an inquirer. Craft split into its own craft brands. That happened outside of consumer. General elective and pfizer going off its animal products unit. Hewlettpackard is another. It is happening in Different Industries what you are seeing outright splits like ebay or hp. Also spinoffs. Betty you just named some of the other companies, but is there a way to quantify how much of this activity has happened versus in other periods of time . Julie there was a study done by a Consulting Group that looked at the value of the Parent Companies doing the spinoff. The value of the parents rose by fivefold from 2010 two 2014. There are more Bigger Companies doing this, so it raises the question of why this is happening so much. Folks i talked to said it is a matter of increased focus. It is also a matter of activist involvement. The activists see an easy way of maximizing value by getting rid of some of the unnecessary part. Another way of looking at it, here we have a little bit from everything so of course there is a bloomberg u. S. Spinoff. The spun off entityies look at how they are performed. We have seen the index rise by 7 , so that is and underperformance. Over the longterm, it has performed better, almost twice of the performance we have seen over the s p of the past five years. Betty it seems to work for shareholders. Thank you so much, julie hyman. Much more ahead. And milestone for american or airlines American Airlines. Pimco says they are fine. They are beating their former boss and that must feel good. We will be back. Betty i want to get back to bringing you the most important stories you need to know before the bell. Bob and olivia joining me. Number four, the new managers of the Pimco Total Return Fund have been trumping their former boss bill gross. They were boosted by antito shortterm u. S. Interest rates. The matter how they got there returns, the bottom line is they are beating bill gross. Bob sounds like what bill did was he went against the chance of a fed rate rise this year. The folks who replaced him at pimco said no, we have the patience that is needed. I threw the p word in there patience. Olivia the pimco guys wanted to go 710 years and they have been crushing him in doing so. Bob does he read tea leaves . He changed it from the pimco brand of tea but he is not quite there yet. Betty i am waiting for the new version of the new normal. Olivia i want another man in the mirror moment. Betty number three, Goldman Sachs predicts growth that will exceed 10 . Us on 11 jump in revenue last year, the most since the financial crisis. 111 billion worth of new assets. The story here is has been a small and irrelevant part of Goldman Sachs. Now that treatment is going down, this is becoming bigger for them. Olivia new regulations in a variety of things have made more money available. Getting out of Investment Banking and dealmaking is very interesting they are now following suit. We will see if it impacts the evaluation at all. Bob i say slow the process. A division of Goldman Sachs is making money. The interesting thing in the Michael Moore story today is they are making about 2 on loans to very wealthy clients. That is fantastic. I want to be a what the client just to get a 2 loan. I can get a 2 on my mortgage. Betty which is like cash essentially. Bob it is. Betty number 2 American Airlines added to the s p 500 index. The change is effective after the close of trade on friday. What is helping airlines these days . Oil. We fell to the 43 a barrel level now. Look at this. Incredible. We have resumed bob according to a report, we will get uranian oil iranian oil. Olivia it does feel like a Golden Moment for the airlines. You have cheap fuel and the job numbers are going up. This is where they need to be to find profitability. Betty book your vacation now. Bob the bad news, it has to pay extra for legroom. Betty we all do. Join the club. Bob thanks for laughing at that. Betty bob and olivia join me this morning. We get to number one. All eyes are on janet yellen this week. Under percent of economists surveyed addict they will drop the patient but from this to my release after a twoday fomc committee. Meeting that is like meaning that is like four out of five dentists. Theres always there is always somebody. Theres always a jerk somewhere. Olivia 45 say this is a step to a june increase in rates. I think that is the key question. She agrees we may have gone from considerable time to know more patients but that is the main you are opening the door for june. Bob i wonder with the luggage will be. Visit impatient now . Is it impatient now . To me it is not only the first rate increase whether it is june or september or december, it is the second one. Olivia it is the pace of left off and the trajectory. Think about the plunge and oil and the strike of the dollar, that will influence it. Betty be speculating never ends. And as a matter what janet yellen says. It never ends. Stocks get ready to start trading so i want to bring in steve, the chief Market Strategist at russell. He is anticipating a september move by the fed. Why . Steve thethey got rid of qe. The u. S. Has checked out of the emergency room and now they want to go back and say we can go in a normal monetary rate environment. It is going to be the second hike i think september makes sense as an institution. They are going to extend it out. They do not want to scare the markets. They just want the world to know it is back to normal. So how does the strength of the dollar decelerate liftoff . Significantly . This is not 1994, it is not going to be in inflation scare and they do not have to spike rates unexpectedly. She is going to give a lot of talk the market through this. Theyre going to let the americans go first it did not look like that a few months ago. Stephen how many hundreds of billions of dollars of euros that they did not have to print to get that going . Betty you still see stocks going up in Single Digits . Stephen i do, theyre going to get to the minute digits range. I think if you look at sentiment in the United States it is reasonably good, but evaluation is something of a headwind. It is not a negative view, it just makes sense that average ms. Digits makes sense. Valuations are attractive. Betty it feels like this is the last year of this will run. Bull run. It feels very tired right now. Stephen i think the shape of these things is changing a little bit as well. Youre not getting booms or bust , you getting more square roots shaped. Do not get a lot of these, but you get below average for positive rate of growth and markets have been responding to that end up on the fact that labor is cheap. It will stay accommodative. 50 basis points or 75 basis points is historically amazingly accommodative. That adds a little bit of wind. Betty do you agree with the thesis of the new neutral . Stephen we thought this was going to be a square root shaped recovery high twos low threes. The americans for the first in they gave the blueprint to the rest of the world. This is a very easy global environment. Bob am i going to start paying 1. 50 a gallon for gas anytime soon . Stephen that seems to be the direction. Two dollars a gallon in europe that is a price that is almost a governmental from the european perspective. Once we were through the shortterm pricing issues in the commodity markets, this is going to be one of the Largest Global tax cuts in recent memory. 9, 12, 18 months from now it will be very interesting to see. Betty thank you for joining us. Thank you to Olivia Sterns and bob as well. Some details coming out on the house budget planned which unveils in about an hour. Peter this is a budget being submitted by tom from georgia. It would be balanced by nine years cutting spending by 5. 5 trillion over a 10 year time frame. They are going to repeal of roe market obamacare, just the savings of 2 trillion over 10 years. There would be major changes to medicare, medicaid, and food stamps. Medicare would be partially privatized as it would be under the ryan budget plan. They want to raise the limit, so the catch is that they are boosting the funding for war spending to 94 billion, if separate positive money they can tap. The budget assumes that fannie mae and freddie mac would be privatized, and it also eliminates the fdics ability to bailout major Financial Institutions that go under. He wants to and any notion of too big to fail and any notion of too big to fail. Betty still to come, adidas has decided not to renew its deal as the nbas official outfitter which they have been for over 10 years. Why the secondlargest Sportswear Company is taking itself out of the game. Betty trading just under way. We are in the red again on this tuesday morning. Scarlet fu has much more on the early action. Scarlet it is a consolidation of yesterdays advances in todays a day of path, and markets are taking a breather before the fed statement tomorrow at 2 00 p. M. I had that, here is what moving. They videogame maker teaming up the kardashians debuting a new game in late 2015. Staying with the retail idea, gsw having its biggest gain in half a year. The company boosted its dividend, Burlington Stores also saw better than anticipated results. Linkedin is trading at a fiveweek low right now after Green Capital began coverage of the company with a sell rating. Weight watchers also getting downgraded to underperform over at Credit Suisse which is not impressed with the marketing and product changes for the january weight loss season. Credit squeeze says that management is going to go into costcutting mode. Delta and jetblue getting about 1. 5 . The index is for up for the fifth straight day. Betty so many things you throughout there. We have to talk afterwards. [laughter] adidas is not going to renew its relationship with the nba. They paid 400 million over the last 11 years to put their logo on the basketball uniform. S. They want to focus on endorsements from individual players and development of new products. More on this move, and why they dropped the nba, i want to bring in a Bloomberg Intelligence analyst who follows Sports Apparel for us. How significance is this significant is this . When i go out and sign a deal with the nba, it actually expect the brand to turn into a more credible entity but it did not work. Betty why . Chen it ended up being too many injuries. If you look at nike and what they have done over the years, they got the right players preview of lebron, kobe Michael Jordan, basically you run a whole product line around those guys and created a lot of buzz and excitement and create market share. Betty nike in particular, they have gone and made enjoy smiths with lebron james made endorsement with lebron james and kobe bryant. What is happening and is interesting is that lebron james may have adidas endorsing the league and the team, but that he goes and turns around and endorses 19. That is why adidas has really lost a share. Chen they can endorse the entire league, but they can also have individual contracts with a player. Adidas was the official partner of the nba, but if you look at the numbers, nike has more than 90 of the best all shoe market. Basketball shoe market. Under armour has also taken that spot. They had to change something in their strategy. Betty good nike come in and change that contract . Chen we have to remember that the nba is a very International League review have a lot of stars from Different Countries coming in into the league. Have a lot of viewers outside of the United States. I remember watching Michael Jordan play in the middle of the night. 60 of the revenues outside of the United States. If list night into that it fits nicely into that whole global framework that the nba has. I do not know if they can bring infrastructure to the nba. Betty tell us about how it is performed. Adidas is the white line. Compared to under armour and nike they are neck and neck. Adidas seems to be in trouble here. Chen the contract is up in 2017, and theyre going to look for replacement. Theyre going to come at the end of the month with a plan to turn the business and united ace. That will be interesting to see because you can see they are really falling behind nike and under armour. Betty an announcement in march of27th. Still ahead, after years of disappointing revenue, one unit of Goldman Sachs predicting growth in double digits. What is to come coming up. Betty it is st. Patricks day. Take a look at this. Of the green fountain in front of the white house. I should have worn my green shirt. Any case, we are celebrating today. Moving in sha and shaking the Third Largest shareholders of wynn resorts is fighting for her place on the board after the company declined to renominate her. She is in a court fight with her exhusband over control of her 9. 4 stake in the Las Vegas Based casino operator. It allows him to vote on the shares, that battle continuing to brew. The cost of turnover at the top of the division of the unit is vitally finally enjoying some gains. I want to bring in stephanie ruhle. Once an ugly ducking now a prince . Stephanie turning into a swan. Her house. Perhaps. They lost 40 . Since the crisis we have seen some banks lean into their Asset Management is now. Jpmorgan, compared to goldman sold twice as big. We taking a close look and realizing this business makes a lot of money, takes less risk and is leaning into it. Two new has of the business after they turned over five times in. 100 billion of new capital. They have sent Asset Management is the place to do it. Betty hopefully this is rebounding. So how do they pull it off . Stephanie they brought on at least a dozen new people, but think about what the market has done. It has had no volatility, we have had intervention and many people said do we need active management . Volatility is back, whether youre talking the differences in europe, asia, the United States, you need top managers, and they are bringing them in. Higher mortality, bring in more dollars. Higher mortality, bring in more dollars. Betty the investment industry including dominos is fired up. The important thing for us the next three weeks with march madness we are staffing our stores. Betty who is at the table when it comes to raking it in . Betty march madness tips off tonight. The undefeated wildcats may be favorites to win the tournament, but it all belongs to louisville when it comes to the bottom line. The cardinals are top when it comes to team revenue. Their program ricky and about 1 million raking in about 40 million. How have they been able to pull in the money . We have some answers. The fervent fan base, number one. You have to have an engaged fan base. They certainly have that. You have to have a Good Building which generates revenue, and they play in one that is built were in nba team. You need donations without fervent fan base. Half of the revenue to louisville comes from fan donations alone. That would be seventh in revenue in the country if you took that out. They are huge, passionate, willing to pay. The only problem with louisville is they renew at a 98 rate, so you cannot get in. Betty why are they so loyal and committed . Scott there are pockets in different parts of the country. For football you look at alabama for basketball it happens to be kentucky. They have led the nation in College Basketball ratings in the last 10 years. They watch everything, it is a passable kind of town, and they cannot get enough of it. Basketball kind of town, and they cannot get enough of it. Betty what about the others how much ahead is louisville . Scott number two is my alma mater. They are 11 million clear in revenue. That tells you right there that they are doing something right. Those donations make all of the difference in the world. But now we have to see if that money continues to flow. Betty in the future, that is a great point. What about in the future . Can they continue that lead . Scott they are hoping to. But if you did a line item on president obamas budget, one thing stacked way in the back was a removal of the Tax Exemption of people when they give donations for sports programs. If that goes away, we will have to see how that impacts the program. Some will certainly utilize it and say we have put our money elsewhere. Betty who is your big upset . Scott everyone is thinking kentucky, what about wisconsin . Almost like Danny Manning in 1998. They can be kentucky, and 70s going to have to do that someone is going to have to do that betty . Betty thank you. Tomorrow, the house Budget Committee member tom cole on the budget debate. Ericsson ceo on the future of his company. And Michael Holland on the stocks in the fed. That is all tomorrow at 8 00 a. M. Eastern. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. Stephanie israel decides whether to reelect benjamin netanyahu, no party is expected to win a majority. So someone will end up forming a coalition government. Breaking up is so hard to do. Consumer conglomerates are slimming down by getting rid of businesses. And i guess this deal was not a slamdunk. A slamdunk. Adidas says adios to the nba