Moment hasnt come. Twowe can rethink the past this future and why he did not take the ceo at microsoft, samuel paul masato. We are looking at a huge increase in shares of mankind, a pharmaceutical maker. It doesnt actually have any drugs on the market. The first could be its in held insulin diabetes treatment. It will get fda approval but it has an important step and shares are just about doubling in one day. Another big game today is for intuitive surgical. Shares were up even more yesterday when he did get fda approval for its da vinci surgical robot. Upgraded shares of intuitive. Privateducation, the forprofit Education Company coming out with earnings that beat estimates. But at the same time disclosing a subpoena from the department of education looking for records all the way back to 2007. A lot of these forprofit Education Companies have come under fire from congress. Lets get to our big story. It is the battle for your living room. Amazon is launching its new streaming device, the third tech giant with an internetconnected to gadget for streaming videos. You have Companies Like apple and google who have gone into the hardware space. Creating a device in an already saturated market. Why get into the hardware business right now . They want to get more software out. This is a company that was the leading provider, the seller of dvds, and that has gone in favor of streaming. Services nowhere as near as netflix, but the impediment is just getting the stuff to the tv. With this device, it puts their or evenont and center on the tivo box or comcast boxes. While they might offer something from amazon, it is hard to find. I think it will give them an advantage. They already have a lot of the media content. It is not just about movies and tv shows and music. They are adding a gaming site as well. This is an attack on the electronic arts. Actually making this taking smartphonelike games and bringing those lower prices and high quality games to the living room. Instead of 60, you will get highquality gains in the two dollar price range. Where amazon is going to take every part of the living room, not just tv and tv shows with original content, but games, music, and there is a cloud feature where they want to give you access to your photos or anything stored in the cloud on a 1. 99 device. They succeed when so many others are trying to do exactly the same thing . Nobody else is offering all of these things together right now. I think that is what amazons that is. Rochus has a lot of channels roku has a lot of channels. But nobody is putting together this many pieces. People are spending enough as it is on the cable platform and on content. Whether you have a two dollar a month cable bill or in a dollar 99 netflix bill or hulu, are people really going to absorb one more bill . It is a fair point, one worth thinking about. I think that is part of the context here. Haven recognizes that you comcast and they deal with netflix to make the netflix signal arrive to your tv faster with competing Services Like amazon. Amazon is tried to go around the cable arbeiter, particularly around comcast and time warner who are for now separate companies and may not be in the future. Ablen, with this box, is to go around those providers to really put their content from an center. But you need to have the content. Let me just jump in and point out you need to have the content. It is fine that you are going to go around, but people need to want to watch it. They thought alpha house would be a big success but it pretty much failed. That is one of the few shows i can think of that amazon has done. How do they get their house of cardstype . They will have to find something pretty sharp to compete with house of cards. But that is what is critical here. Amazon isnt just trying to be a distribution platform. They are actually creating content. They will create their own shows, their own games. There were at least 12 games shown today that did not exist. Amazon, for a couple of years, has been working quietly on its own video games. Amazon is not just a set top box provider but an original content provider which is an incredibly powerful change for the Business Model. Amazon Sells Everything that we might want. So if they capture us in our living room onestop shopping. Yeah, if you like something that is being worn by a particular character these subscriptions go handinhand with their most frequent customers, the customers who get it in day delivery. You get second day delivery. This company spend nearly 5 billion last year. That is that use expenditure. That does not include the catholics for longterm projects. That does not include the cafx for longterm projects. Worried . Netflix be absolutely. This is a shot against apple tv, against roku, but definitely against netflix. But netflix will be on this fire tv, so is apple tv and youtube. Will serve out that content but also offer our own original programming and the debt will be over time will has the best content and basically who has everything in one place. Right now, amazon is the only guy who is try to provide everything. Does this mean netflix will come forward with some kind of device of its own . It is the only player out there that is not offering the hardware. They have not gotten a lot of credit for making partnerships with the tivo of the world and apple tv of the war than the cable providers to make sure that there is a netflix option on their hardware. There are three approaches. There is the game console, the and then youve got the smart tv itself, which is samsung and lg and sony as well. It will be interesting which of those approaches works the best. Commodity of the set itself stays a commodity or if you want to have it all rolled up into one or if you want to have a very robust game console and get the eas developing for you. This surprise announcement is the gaming side. There was a kick starter project to try to do this. They tried to bring smartphone game strictly to the television. It has not been that successful. There is a Company Called steam that allows you stream to your pc. I think they are grabbing some of these newer Business Models and deliver in a very powerful manner. That is something no one else is doing. Globally, games billions of global downloads and nobody elses really try to bring that into the living room in a meaningful way. Doingtoday, amazon is that and that could be the surprise piece of this announcement. Coming up next, Christine Lagarde says the Global Economy is too weak for comfort. She seems to have also coined a new phrase. I will be speaking with the former chairman and ceo of ibm about the future of business and why every corporation needs to consider a fresher porch a fresh approach to global computing. Christine lagarde this morning said that the economic recovery is too weak for comfort , what she calls lowflation particularly in the euro area. European weakness means that it may be the right time to get in. Anastasiad with amoroso. Wflation, is this a new word for stagflation . It continues to be an issue for the European Central bank. But i am not sure that Interest Rates are there option number one because i dont think low rates is the number one problem. We had low rates and did it result in any kind of inflation . No. Janet yellen would be thrilled to see a little bit of inflation in the sea economy. Are they in a potentially similar situation . They are in a similar situation in some respects because they are going through this deleveraging period. So they have this low inflation and low Economic Growth. In that case, it is similar. But what is different is that they really have to get the problem of fragmentation solved. They have to make sure that the rates are not only low in germany but also low, the lending rates and the deposit rates are low in the peripheral eurozone. In the United States, we dont have that issue, but they do have to address that in europe. This gets back to the central issue that is plaguing the entire region. How do you have a system where you dont have one political and one monetary unit all functioning together . I think that is what they are trying to figure out right now. Rome wasnt built in a day so this takes time, two. They are in the early innings of building the european institutions necessary to have one banking system, necessary to having a banking union. Is in european equities and european highyield bonds because this is likely a multiyear and multistage recovery process. Did they get the repair or correct, which i think they are getting correct, then you have this rampup in european equities. So you are going are you advising people to buy now . Dips think deftly by the in european equities. We have the rally already on the books. But this multiyear rampup period, any opportunity and i think there is this pullback i absolutely think there are opportunities. Thank you very much. Move over, siri. Microsoft has just unveiled its own digital assistant. We will find out what else satya has upt else his sleeve. Mr. Palmisano has done anything but slow down since ibm. He started the center for global enterprises. It is all detailed in his brandnew book rethink, a path to the future. He also served as a security advisor. He is joining me here right now. Congratulations on the new book. A lot of what you are talking about here is the globalization of business and the world. You explain how corporations can take advantage of that. Give us some examples. Basically, if you look at the factors that are driving the change of a multitude of things, one is the fact that more and more of the emerging countries are now engaged in the Global Economy. Their governments are more stable. They are more oriented to Global Economics and they have moved in. . Examples like china. You have a population that is educated in these geographies that are entering the middle class and you have a technology shift. When these three factors converge, governments opening up, engaging in the economic thed, complying with wtotypes of characteristics, that created an opportunity for economic expansion and growth for the company and access to great sets of skills. Dontother words, you have to rely on if you are in texas, instead of all your workers being in texas, you can have workers anywhere in the world so long as they can do the job because of the advantages in technology. Thats right. Iji is really a concept gig is really a concept. Entity, you have access to talent pools and natural resources. You have access to capital anywhere in the world where it makes sense. What does this mean for a company, a pretty goodsized company that is taking advantage of these . Mid to Large Companies that would be looking at this, one is growth and expansion. When i was at ibm from about 2004 through 2011, those countries were [indiscernible] so tremendous growth opportunities. The other thing it represents is access to great talent. They have great Technical Skills and talent that you can have access to that can help you innovate, provide services, do all sorts of things that are now available to you in this globalized world. As you do these things beyond growth, which i referred to as something in the book, you create a scale that drives tremendous productivity, therefore competitiveness. Let me play devils advocate. Where does face time and genuine oneonone interaction how does that fit into this plan if people are scattered all over the world . That may make sense from a talent perspective, but does it ultimately work if people dont get a chance to see each other . Basically, think about it for a second, there are always good to be human interaction. There is a lot of study going around what is global and what is local. You will never have a substitute for people on the ground establishing relationships, selling and serving to customers or clients, wherever they happen to be. I used to always say our address is not planet earth, milky way galaxy. I dont sell to planet earth. You sell to a company or a country or seoul, korea or beijing, china. That will always occur. At the same time, innovation and development, collaboration goes on all over the world. But small teams interact not always facetoface but often times in a facetoface environment. The reason for that is because you need to build trust. Trust skills within the corporation itself am a they depend on each other. If you are going to create this global model that provides Accounting Services or Technical Services for your entire entity, if a bloomberg llp were to do that, you need to trust each other. If you are a Company Operating now country, ibm which is operating in china or india, you have to be trusted. The only way you will be trusted is through government interaction. Trust is very important in todays world. There are so many concerns about the u. S. Economy and the u. S. Worker and the American Dream ostensibly, the chance for one generation to do better than the other. A lot of people pointed to globalization. It is this kind of outsourcing a very Technical Skills, not just manufacturing, but as it moves up the food change, it is really threatening this a standard of living for all americans. My view is that you need to engage the world. If you would retrench think about it from the u. S. Perspective. I can make the argument from the asia perspective and i will take the u. S. Perspective. The Economic Growth in the United States is not enough to sustain standard of living improvement. That is a fact. The only way you will get the Economic Growth is you have to engage the Global Economy. You have to export. You have to sell. You have to service. Any company can be successful in that environment. Why cant we just live in our borders . That will lead to a standard of living destruction. Piehave to expand the because, for whatever sets of reasons, economic expansion population growth, Public Public public policy, what have you, there is not that level of growth. So you have to expand. Do not go anywhere. I am coming up against a hard break so we will take a quick commercial. We are talking about the most Important Company you may not have heard of. Connecting those who want to buy ads with the companies who are selling the space. On the new debuted York Stock Exchange today opening at 17. 50 a share, two dollars over its share price. Handles 450 Million Dollars in media buying and 1. 2 billion in Online Advertising just for last year. Right now, we are joined by its dante. R frank a we also have Sam Palmisano still with us. Congrats on the ipo. Why did you decide to go public now . That is a good question. We are on a long journey. This is a giant market. It is a 100 billion market and growing. I have been at this for seven years. We have not raised capital in the past three years. We have been operating on our own cash for the past three years. We see an opportunity where this is top of mind for people in the industry and we want to accelerate this vision. It speaks in some ways to this globalization issue that i was just talking about with sam. Productivity is so important right now. You look at how it can even affect the advertising space. Is this the future where you can cut out the middleman and say, ok, i want to put in an x y and z criteria and reach this particular demo and software that can effectively get you that . If you think about technology, it is basically the ultimate democratization of business process. It structures a complete how do you see the future playing out . Market entry strategy was to start with digital. But ultimately television as well as even visual billboards someday. Why is this such an opportunity . Do you see inefficiencies in the Current System . Absolutely. There is an effective 60 tax in only 40 makes its way to the seller. Taxes coming from a lot of manual effort and manual work going into these transactions. How do you see the role of big data as you look into a new Business Model . Threeare processing trillion transactions on a monthly basis. Our system interacts with 97 of the u. S. Internet population. No other company in the world reaches more people. That is three pellet 3 trillion pieces of data. Pricing, makeze other matches between buyers and sellers, which makes the overall market of advertising even more efficient. Congratulations. It is a wonderful Business Model. Is thathe frustrations you cant really measure it is hard to measure the effectiveness of your ad campaign. It is easier online. You can give us the data and provide the metric that for these corporations and the target audience, etc. , etc. You almost think that some of this online media would be more precious, more expensive than traditional in terms of advertising because you have the ability to target a target exactly who you want. Is it going to change, frank . Are prices going to go up . I think that is changing. In digital media, you have the ability to purchase an individual impression on an individual user which is far more effective than traditional media for you put out a big yet in the middle of time squaring you have no idea what the effectiveness is. Its nice to measure it. Coming up, move over, siri. There is a new digital assistant in town. U. S. Multinational companies are storing cash overseas. Discuss howo will best to overall our nations tax code. Microsoft held its annual Developers Conference today. Cory johnson is here today to explain. Also here with me as our guest Sam Palmisano. Lets talk about nadellas announcement, the second in two weeks. In San Francisco no less. Last week, they announced the iphone apps for the ipad. A big deal for them. Also admitting that their Software Needs to be faced to elsewhere other than microsoft operating systems. Build their apps for microsoft products and apple mobile products to new phones and new capabilities. A sirilike Voice Control for the phone. Lets talk about the name. It has a link back to video games. Back to the very successful halo videogame that microsoft produces inhouse. It is a sirilike product. I think it is called cory. Its not really called cory. Couortana. There is enormous change possible in this business. Dominantnokia with a u. S. Market share in 2005 and now they are not a player at all. A lot of change will happen in a short time. This is a period of innovation. I am the first to be critical of these things. But the microsoft operating system on apple phones is huge. People seem to like it when they have it. Tech changes so quickly, so rapidly. You look at a company like lack area who is clearly struggling right now like blackberry who is clearly struggling right now, how do you have a Big Tech Company that remains agile . The key is that you have to have a strong point of view of the future. Is,ever that point of view if it is going to be mobility or ibm concluded it would be big data cloud. Then you have to reallocate your investments to go aggressively and pursue it. All the challenges of Large Companies, especially in tech, they are because they have been very successful, ibm, microsoft, etc. , hp, whatever, dell, then you fall in love with yourself. You fall in love with your Business Model. ,nd these future businesses this is causing tension within the organization. Truly it is about the ability to be adroit and agile in the sense that you need to marshal the resources to go to the future and you have to be able to be willing to step up to the path. Ibm sold the pc business. There was great criticism that we missed it. But i think you would agree today that that was a very smart move. Now with what is happening with mobility. You saw the trend. This was before the smartphone or the iphone. You saw what was happening with the trends and the data and we concluded that that was the past and not the future. I think history proves that we were correct. There is a lot of Organization Resistance to change. When we were getting out how do you as the leader and manager of the company, as ceo, say, ok, i am going to do the opposite of what traditionally we have done and maybe what the media wants us to do and take on that kind of risk at a time when a lot of the cards might be stacked against you . Everybody think that the ceos are the ultimately celebrities that command the resources. That is not the case. Really there are 450,000 intelligent people. So you have to persuade them to the fact that this is what is going to happen. So we had to analytically and factually make the case to senior management. This is our point of view of the future. Here is our role in a point of view. Here is your role in the point of view and we need to go there. Selling the pc business, we were also investing heavily in big data and cut technology and all those other things and we made that transition. We were investing in emerging markets and globalization. So we were continuing to invest. We were reallocating into the future. Them. To educate you have to see the world as the world is. You cannot see the world as you would like it to be. Sam, i wonder if you look at the same time as selling the server business as the way the world was going. Now ibm was forced to serve the server business at a pretty discounted rate. I wonder if that was a tough sell within the organization. Do you wish you had so that at the same time . I wasnt involved in any of those decisions. I stepped down as ceo two years ago so i am really not we appreciate you being here today. Go and find the book, rethink by Sam Palmisano. It is looking at how globalization is playing a role in our future and how you, as a corporate leader, can take advantage of this. Thank you for being here. I will be right back with more street smart after this break. Total moneyng the donors can give candidates and parties a violation of yours of your freespeech rights . The Supreme Court says yes. Campaignhe biggest finance ruling since the 2010 Citizens United ruling. Phil mattingly is joining me right now with details. Lets start at the very beginning. Itlain the decision, what means, what it means for campaign finance, and for individuals looking to contribute. What the Supreme Court decided to do today, what Justice John Roberts said in his opinion today, is basically that the aggregate limits that have been placed on how much individuals could donate to candidates and local Campaign Committees are gone. They are no longer than. Justice john roberts in his opinion said the limits intrude without justification on a citizens ability to exercise the most fundamental First Amendment activities. That is what john roberts said in his opinion. Before today, candidates were able to individuals were able to donate 123,000 max over two years. That is no longer a cap. Basically, if you wanted to donate the maximum out to each congressional candidate, you can now. We always talk about getting the money out of politics. Then a gets polluted, tainted and changed by whoever has the biggest purse strings. How does this change the equation . Does it actually make it all work . It is interesting to see. How much of an interest this will actually have will be fascinating to watch over the next couple of months. This takes effect immediately but one of the things that stays in place is the caps on individual contributions. While the aggregates are gone, you can still only give 6,000 to a candidate. Those are still in place. So they cannot go hog wild and dumped 1 million on an individual candidate. Where you will see the impact right now is taking money away from the secret groups, those 50 1 c 4s. They say this is a good thing. That money gets reported. That money is not secretive. It is not in the dark. Transparency, even if it means more money, is the positive thing. Transparency is always a good thing. So the parties have to be excited. This is good news for you because it means more money therefore more power. See this mean we will parties really getting behind particular candidates and not worry about all of this separate super packs . Yes, the party groups themselves, this is a big deal. The rnc was a party to this challenge. They were involved in this. They wrote their own briefs. They wanted this to have it to happen. This is a way to bring some of that back. How they directed this money is what will be fascinating. Join Party Committees coming together where people can write huge checks and then kind of distribute as they see fit. How the rnc and dnc working to us into this will be interesting. Also how democrats work with this. Statements from the democrats today are very dim and are very negative but they benefit, too. More money for everyone, i guess. From gm to mcdonalds, we have the top 10 stocks you need to know today. Next hour, the men behind rob os nilly dollar listing behind bravos Million Dollar listing. Coming up on another record in the market. 16 572 is her level right now on the dow. We are heading into the close and its time for the top 10. 10, General Motors up today 1 . The ceo testifying again in washington today to address the faulty ignition switch problems in the company vehicles. Companys vehicles. One senator said that they are responsible for a culture of coverups. Nonetheless, investors have not reacted. Number nine is producada. Amid a softs growth europe and emerging chinese market. A longterm outlook remains strong and they plan to open 100 20 new stores. Blackstone down 1 in talks to sell off six of the Boston Office properties for a total of 2. 5 billion according to someone familiar with the negotiation. Monsanto up 1 as secondquarter topping estimates. Aey will ramp up sales of genetically engineered soybean number higher. He tmobile and blackberry are both fire. They will not renew the contract after theyle encouraged customers to switch from blackberry to the apple iphone. Whoops. Mcdonalds down slightly as two former managers have come out and said they help withhold employee wages in order to keep costs down. They engaged in tactics such as adding unpaid breaks. That theytant to note are 80 franchisees who have to run their own business. Interesting here is the star, as you saw, not really react in today. Its not having that much of a negative reaction from this lawsuit, the talk about potential labor abuses. There is more of a concern about if sales are flagging and if they are having problems. What happens when they are forced to pay that overtime . Do they see their hours scaledback . These smallbusiness owners, these franchise owners, thats exactly what they did. 2. 7 million per store, a half the number, but the growth is what we are not seeing. Where else can you find money if you cannot have the innovative product . Plan tois up and they more than triple its revenue the revenue of 4. 2 billion in sales. They have increased consumption at the warehouses. In the management saw full shuffle, analysts are viewing the move as a play by wells a possible ceo. Number two, announcing a new Windows Phone with 8. 1 software and microsoft introducing Voice Control digital assistants. More. Syria and coming up, the number one stock of the day. Announcing the talk. It will be powered by android. The box is available today and the price is 99. Day, another record. The s p ending up the day slightly up. 1890. 91. We had some positive Economic News but of course, a lot of people are sitting on the sidelines still waiting to find out what happens on friday. Jobs numbers will be on him friday. We want to get some additional context. Clicked the number today from as good asost economists expected. Doesnt really tell us that friday is going to be great . Does it really tell us friday will be great . Adp doesnt really predict jobs. One of the last time adp got it right . Maybe we are in the expansion stage of the market signaling something broader and a bigger shift in the jobs market. Terms of howtle in that translated to investors today. It was not like green lights flashing. They want more of a confirmation on friday. Stocks doing well like they did on friday. Economically sensitive groups leading the gains. Lets move onto the roundup, the stories we are talking about before tomorrows opening. Olivia sterns is here with us as well. Alix steel is kicking it off. Youve heard all about the new Michael Lewis book. Its a topselling book on amazon today. It pains the tortured of markets withd by insiders computers for highfrequency trading. Not the best timing for the highfrequency Trading Company virtu. They had planned to start the ipo process but delayed endet offering until the of april. Dont worry. You are not the bad guy here. If the system. I dont regard highfrequency traders as villains. I really dont. Its like blaming the lion for eating the antelope. The system is screwed up. Wired that way to do what . Exploit glitches in the system. They are not wired to say this is moral or immoral. They dont think that way. Its not just Michael Lewis going out for the highfrequency trader guys. Its something that might not go away. The central issue is what will happen here. If they are saying what they are doing is not legal, it will unravel a whole new set of problems. They really cannot be blamed for something that was already legal to begin with. They were still operating the framework that was legal. That goes back to what Michael Lewis was saying. Whos to blame here . Can you blame them for exploiting the Market Opportunity . The people creating an unlevel Playing Field by offering multi tiered pricing creating disadvantage for those who dont pay up. Another example of the sec being late to regulate something. On the program yesterday, they said we probably need to change some of this regulation. Thisere is talk about would have been more relevant years ago when highfrequency traders were making even more money because of the market. Most banks have caught on to the fact that this is happening and they have adjusted for the pricing advantages that come from the delays in getting their prices to the banks. The revenue from highfrequency trading has fallen along with volume over the past several years. Theres lots of questions about the timing. Is it even as relevant now . Is it now less relevant even to do it . The brokerage houses have caught up in figure out how to play the same game. I have come out in support saying it lowers the cost for retail brokers. Why are regulators after this . To what extent are the socalled mom and pop investors affected . Makers,as on market that was a big source of debate. Do the people who use e trade actually get screwed or not . His point was that Retail Investors do but critics say they are not true because they are investing into these institutions. Sheryl sandberg is selling more than her facebook more than half of her facebook shares to 70 million shares worth over just 1 billion. Shares to 17 million shares. She mightit that return to politics. Ive got to say that its different, you know, to me in a cabinet level position and working under someone at the cabinet level. Its a whole other thing to venture into pure politics. Im just saying. There was a lot of drama surrounding her book and when she came out saying to lean in. As much as there was positive reaction, there was also negative reaction. It would be interesting to see her. Clicked the rumors about her running for office were there. She had the huge blitz internetworks is over 1 billion. It seems to be the talk of the town. A lets talk about media for moment. Its all about area when you are talking about its all about aereo when you talk about it. Contento pay for the they are retransmitting. They are saying what they are they want them to pay for the content that they are retransmitting. Barry diller is back in the media. Anchor erikrs schatzker sat down with barry diller for an exclusive interview. What happens if you lose . Game over. Theres nothing you can salvage out of the business and technology . Its possible that there is some salvage but aereo would probably i say probably but it will probably not be able to continue in this instance. This is an Important Court case. The difference is that the various networks are the retransmission fees. Does anyone still have an antenna . You dont pay for it so that is what they are saying. They are effect is under that right. The argument makes sense. Reo is still selling ads. They are the ones benefiting. Are just subscriber fees. Thats where they get the revenue. You are saying to yourself how is the scary . Similar to but they should announced a few weeks ago that you dont need the equipment or the satellite, the whole thing. It sounds like the cbs is preparing to rulethe Supreme Court is preparing to rule in aereos favor. They were given in exchange that they would invest in the infrastructure leaving open the possibility that anyone with the antenna could take the signal. Crs did not have to face copyright infringement. What is the difference in dollars and cents . Get four dollars and retransmission fees. If you break that down, we are talking maybe 500 million. Companies, these its not a huge chunk of the revenue. Is it going to be detrimental . Not really. After three decades together, russian vladimir russian president Vladimir Putin and his vorced. Ve di the stated reason is that they rarely saw each other rim but it was a joint decision. You can barely find pictures of them online. Was it a conscious uncoupling . [laughter] i give this woman credit because she lasted three decades. She must have seen something in him. Who knows if she had a choice . Ncaa finalp, the four tms are set and they fight for the title in teams are set and they fight for the title in texas. What it takes to win coming up next. Weve certainly been talking a lot about highfrequency trading. Yes, the system is difficult to understand. You do not have to go to wikipedia or read a whole book. Sam grobart says all you need to do is watch a bad movie. Michael lewiss latest book sets its sights on the world of High Frequency trading, the arcane practice only done by the most sophisticated investors with the most powerful computers. Except its not that complex at all. It was a major plot point of superman 3. Its the crappy one with richard pryor. They engage in a little fiduciary malfeasance commonly known as salami slicing. I dont know. I just did it. An employees paycheck is always rounded down to the nearest full scent. Where do all of the fractional cents go . Pryor takes all of the fractional cents and deposits them into his own account. This individual theft is very small but in the aggregate it nets him a ton of cash. Is a lotany ways this like what highfrequency traders do. The fourstocks just others do and resell them at a small increase pocketing the tiny profit. Like the paycheck scheme, each is so microscopic that no individual would ever notice or care what was going on. Over thousands of millions of trades it begins to add up. All you need is a very highspeed data connection and a computer. Just like richard pryor. Next, what does it take to stand alone as a champion at the end of the season . The basketball legend is joining me next on street smart. Hes in the house. The final four in dallas is set. To break it all down, we need a World Champion laker. John is here with me. As he puts it, he won four championships with three different teams and two different millenniums. Isnt that sexy how its put together instead of saying im an old guy who knows basketball . You had an amazing career. Welcome back to the show. Thanks you are as beautiful in person as you are on screen. And smart, too. Lets talk a little bit about the issue that has come into focus right now. You have all these kids out and making a lot of money for the networks. They are making a lot of money for the ncaa, making money for the coaches. On average, if you are a division i coach you are getting about 1. 4 million. If you make it to the final four you see a bonus as a result of that. The people who are playing, the kids on the court, they are not seeing a dime. Everyone says they are getting a scholarship. My daughters scholarship is going to be 50,000 per year if i pay for it then these guys really outdo the scholarship. When i played in college, i paid arethe next 10 guys if you paying for school. Per a came out to 250,000 student, each student athlete would be making money for the whole school. Is more than the tuition. The value of the education, and itself. Es, is debatable my wife was talking to me about when going to school, we have to look for schools and we started talking about the school district. Im from brooklyn and i graduated from georgia tech. One of the best Elementary Schools in all of los angeles is inglewood, a black neighborhood. You cannot say its a bad thing. No one from Beverly Hills is bringing their kids to inglewood. Its what you make out of it. Ifyoure going to school, youre going to stay stay. If youre going to play ball, go right to the pros. If youre going to school, get that degree. If you are going to suddenly be in charge of the ncaa, what would your first order of business . I would investigate where the real money is and get keys to all of the places in the Dominican Republic because you know they are stacking money. I would literally change the way you scout players. Talk to different players i would Pay Attention to how they do that, how they get them in. You would not have to pay them because there would already be a certain amount of money. I could not work until the summer time so that means through the whole year i had no money. Eating a gladiator. He got there and perform, come back in and live this lifestyle. I really did not get the students feeling. If you were a grad student, you might be able to take a job or even get a stipend or a grant, but the players dont get any of that. They dont get anything and when they do, people hold them so accountable. You took 1000 . You took 100 . Someone got you a suit so you could look good . It is so crazy. John, lets talk about what its like to play in the professional league. Call is one thing but the nba is another. College is one thing. We have seen multiple reports of steroids in baseball, for example. People feel this need to stay competitive and many have turned to that. What about basketball . I took steroids. It was movingand to an ammonia they said to give me steroids. Im making a joke. You can use steroids and every other part of this world but as a professional athlete, if i use steroids, im cheating the game. I just had this conversation on the radio when they take these amphetamines. I said about about the athletes when they drank a lot of alcohol. They say it does not enhance your game. I say it does if you have a nervous stomach if it makes me a smoother player. I just enhanced my game. Not let the alcohol regulated. Its the same thing. You can use whatever you have to do to get to the point and no one cares. What do people use if they are nervous or they want to create an edge what kinds of things do they do in the nba to do that . He properly and i became a vegan. Kareem abduljabbar was 42 and i was 25 and the only reason he retired is because they made him a and he taught me how to eat well. The edge in any kind of sport really does not make that kind of difference. One of the first things that will ever happen to you is you have to be able to replenish your muscles and get right back. That means getting the right amount of protein. And itve in hemp protein helps me get all of my blood flow. Its important that you know exactly how your body works. Cultureere a different in the nba versus the mlb that we have not heard all of these reports . We are taller. If you played 140 games and you played every day and you have to get on stage, its like a broadway show. Would you really care if somebody and the book of mormon was on steroids . You just want to be entertained. You think it should be allowed . Whatever it takes to put on the show. The show must go on. What about people who say thats unfair because you are gaining an unfair advantage over another player . Just like jose canseco said, it was fair because everyone was doing it. Not everybody, but those guys missed out. Be takingt good to advantage. America has a culture of drugs anyway. Me a pill for it. Its the mentality that we have been drawn into him as a society as opposed to doing things you would normally do. My stomach hurts. Drink some pink stuff, blue stuff. We dont even know whats in it. We are just told what it does. I encourage healthy living. I say the same thing. Every ballplayer that wants to stay healthy, play well, they did not have to use steroids, use other things because they knew exactly how. You mentioned you had a hemp is this and one of the big subject is the legalization of marijuana or the criminalization. Where do you stand . Decriminalization. Legalizernia, please it. Lets get our taxes and. Theyre building more prisons and less schools. Finally, is going to win the tournament . Im going with kentucky. Onjohn salleys money is kentucky. Coming up next, marijuana legalization. A pot battle is brewing in maryland that it may not be much of a battle out all. The Maryland Senate approved new legislation to decriminalize marijuana and it passed with flying colors 368. It would remove criminal penalties for less than 10 grams of pot and impose civil fines. Another part of the bill states the judge would be able to order the offender to go to drug education but that would come after a third marijuana offense. This legislation seems to be a major problem for my next guest. Im joined by republican representative andy harris. Representative harris, a pleasure to have you here. Outline why you are so opposed to decriminalizing Marijuana Possession . Although the Senate Passed the bill, the house will do the right thing and reject the bill. I dont think its ready for prime time. There is new evidence coming to light each and every year about the adverse effects of marijuana our use. Ially with brain structure, brain function. We are just learning about what the longterm effects of marijuana use can be so i think we should go slow and i think this is not the right step at this time. Collect a lot of people points while the money being wasted and spent on enforcement and all the people that are unfairly getting locked up because of Marijuana Possession. Onspend 11 billion just direct enforcement cuts every single year. Wouldnt you like to see that money go to, say, education to try and prevent people from going on drugs in the first place . Theou do not need criminalization. In maryland, the last year that onlyhave records, 2012, four people were convicted of possession less than 10 grams of the Justice System is doing what it needs to do when looking at the people with small amounts and not dealing through conviction. Dealing through court order treatment, rehabilitation but this will just send the wrong message. At this point in time, we should see what happening in colorado and washington and go from there. Collect there is a time when i might have agreed with you but then i spent a lot of time reporting on the subject and i spent a fair amount of time investigating this and portugal. I dont know how familiar you are with portugal but this is a country that over 10 years ago chose to decriminalize not only marijuana but all drugs. You can be caught on the street with basically anything anything and portugal and you basically get the equivalent of a traffic violation. There is no fee or fine involved. They did this, representative harris, because they threw up their hands and said we have such an epidemic, such a drug problem that we need to try something completely different. Was that theythat did find that the money they were spending instead of locking people up they were spending on education and consequently 10 years later, they found a decrease in the number of young people turning to marijuana that they labeled a gateway drug. Could Something Like that ever happen here . Do you see the criminalization in any way as a positive . Do minalization . The courtlate 1990s, ordered the criminalization for adults and what they found was that the number of underage users actually doubled. Im not sure we can translate what happened and portugal to hear. I dont think its the way to solve the problem. Medical marijuana is a completely different issue and we should be looking at some of components of marijuana. Not the thc but cbd. We should purify them and make them available for medicinal use criminalization and legalization, i just dont think we arent there yet. We need to see all of the data. The court of Public Opinion is not at all in agreement with you. The majority of americans, 55 say they support marijuana being made legal. Had a hearing today with the administrator of the dea. She came in and testified quite emphatically that we are just seeing the tip of the iceberg in terms of the adverse problems with marijuana with a truly being a gateway drug. Those are just the fact. Bottom line, a significant percentage of people who start with marijuana and with a more serious drug. Portugal,go back to they said by decriminalizing and or or having the money spent are able to you reduce the risk that they went from marijuana to Something Else but you also have the issue of driving a trade underground and creating a criminal element when you have it labeled as illegal. Asked ofuestion was the dea administrator and anyone who thinks we will drive out the underground market and the gang and cartel controlled market by legalizing does not understand how the marijuana market works. They will bring in the market at a lower price and she is convinced that argument is not one that holds water. Let me ask you about another thing that you mentioned. , youre concerned that this is very much an addict if drug. We have addicted drugs out there already, alcohol, tobacco. Interestingly, the canadian ammittee actually completed pretty exhaustive review of marijuana and health back in 2002. They concluded that Scientific Evidence indicates that cannabis is substantially less harmful than alcohol and should not be treated as a criminal issue but as a social and Public Health issue. What is your response to that, representative harris . Is mutuallyure that exclusive but the National Drug abuse group over at hhs does think that, in fact, it is at least as serious as alcohol and it certainly has psychologically addict to properties am a probably not as physically addict is as other harder drugs but certainly psychological addict is. We have not even begun to talk about its effect on the workforce and legalizing a product that we cannot really even do for instance, we dont know when someone is driving impaired. The statistics are that a fairly large percentage of fatal highway accidents, the victims test positive for traces of marijuana. We just dont know how this all fits together. We dont have a good way of the tech in his driving while impaired, working while impaired. Likes isnt that the same with anyone else though . We haveme thing . Very good methods to see when someone is driving impaired. This is something that colorado and washington are working on because you dont want people driving under the influence of anything and they are trying to work out all of those rules. I do appreciate you joining me today and having a substantive conversation on this issue. Thank you, representative harris. Coming up next, one of bravos biggest hits from years of season three tonight. The stars are right here with me. A. B. They can help you find an apartment. I dont know. Speaking of real estate, we take a tour inside the coolest offices in the world. We will see you back here. Time now for the scene where we bring in the business behind media, entertainment, and pop culture. Bravo is known for its big earth analogies. They are coming up the best quarter in Network History bravo is known for its big personalities. The network is about to add another favorite to its lineup, Million Dollar listing new york, season three starts tonight. Im joined by the man behind the series. Great to have all of you guys here. You have been on the show since season one. What is different this time around . This kid. [laughter] this is my second season. I started last year. Im excited. Tell us about the show. For someone who maybe has not caught it on the what do you deliver . Estate agents as we sell real estate in and around new york city and we fight with each other and get in each others way. Business. Rama of the you usually have a cheap bu yer, a greedy seller, and one of us in the middle trying to make it work. Real estate prices have been on a tear. We are up 30 on average. Whats going on . A lot more foreign money is coming into the country. They are getting great returns. It has to be more than foreign money. Used to have 12,000 apartments. We have no inventory. Youre out with buyers have a 10 million budget and you cannot find anything. Thats the reality. New york city is still pretty inexpensive compared to Global Cities in the world. People are coming over saying london and hong kong are now to expected. 100 million in new york gets you a lot compared to other places in the world. I know that its laughable, but true. Do you anticipate that this will keep going . 30 . Really sustain will come down to a more healthy market. God knows its been very irrational and erratic. The absorption of some of these new products has an insane. Withd 70 of the building just four plans. Is it because money is just so available land so cheap . Credit lending standards are actually still fairly tight. We are dealing with all cash. Im from sweden and im still amazed by how much money there is. Credit becomes less, that is when i really thought we would see the bump up. The luxury market is becoming stronger and stronger. Starting at 6,000 a square foot with no views. 13,000 per square foot for pent houses is just crazy. It is crazy. Being sold. Are we did hear jenny speaker earlier in the week and she basically indicated that the fed is going to continue and that theres going to be a very low Interest Rate environment for as far as the eye can see. What does that mean for your industry . More liquidity, the ability to continue to make purchases. Any time you heard the disposable income of americans, you hurt real estate. As long as you allow people to have money and access to money so they can spend it on things like expensive apartments and have access to the cash theyve been sitting on for the last five to seven years because theyve been too nervous to do anything with it. You mentioned inventory is so tight. Why are people selling . If you can get a record price, why are they not selling . The market is too expensive. Where are they going to go . There are some irrational still sitting there. Think goodness we have new developments coming in the next year and about 8000 new units but its still not enough. Theyre going to be rolled out over a year. Give me a preview of tonight. What am i going to see tonight . What storyline will unfold. A lot of blood. [laughter] a lot of luis dancing. [laughter] this is going to be a very good season. Its going to be very personal in our lives. Everyone sees three guys selling expensive real estate that they never see what drives them to really do that in the season i think you will get to see that. Bigger deals. In one episode i sell 100 million in one week. Im looking forward to it. I appreciate everything. Are you going to watch . The star of bravos million ryan, listing, fredrik, and luis. Were going to take you on a tour of some of the coolest offices in the world. Ranx is next. Stay right there. Long gone are the days of cubicles, watercolors, and blackboards. Companies rely on bigscreen tvs , pool tables, and even nap rooms. In honor of the employment report we decided to step in to some of the most impressive offices. Where was bloomberg . If you have not been to our offices, the food court alone would put us at the top of the list. Thanks for joining us today. We have a terrific, great show for you tomorrow. Bob wright, former ceo of Nbc Universal talking about the comcasttime warner merger. Also jim cook, founder of Sam Adams Jim koch. They pulled out of the boston st. Patricks day parade. We will have to talk to him a little bit about that. You dont want to miss it more street smart tomorrow at 3 00 p. M. I will see you then. It is 56 past the hour which means Bloomberg Television is on the markets. Im alix steel. You had the s p closing at yet another record high. Take a look there. Up 0. 3 and recapitalizing on earlier losses. The nasdaq was down part of the day but slipping into positive territory towards the close him up 0. 2 . Factory orders in february rose more than estimated Companies Adding 191,000 jobs in march affecting the treasury market as well. The yield on the 10year pushing to a three week high on better data. Will the fed have good enough data to perhaps raise rates next year . That is with the treasury market is trying to work out right now. Look at the has a time between stocks and bonds in todays insight and action. Are it looks like investors changing their tune. Time for some insight and action. I want to show you the etf money flows the first two months of the year. Money going into bonds and coming out of stocks. Fast forward to march. Its the opposite. Money going out of bonds and into stocks. It looks like the fed will be raising rates sooner rather than later. You need to put that money to work in stocks. It has been pointed out that over the various etfs that attracted money there were three attracting the most. Point 5 billion dollars. Technology was number two and materials were number three. Bet on a cyclical recovery and these are all cyclical sectors. Our investors getting it right . Heres what we did. We looked at the bloomberg forward estimates. We track a number of different estimates bottoms up from all analyst in all sectors, all companies. We found energy is actually growing the fastest. And that is the fastest. People are betting and materials. Technology coming in at number six and then financials. Thats not necessarily where it should be going. Energy is growing the fastest. Energy is trading at the lowest forward pe multiple. I could be an opportunity especially since energy over the past year has lagged. There it is, the energy etf, iye. Its growing fastest, trading cheapest. Maybe there is or lagging opportunity. Staying with the energy market, a quick track check on oil. It is grinding lower and it should have been a better day for oil. Crude following for the first time in 11 weeks but that was not because more oil was being used. Oil was just sitting in tankards. Aere was a closure of houston ship channel. This could allow them to export six times the amount of oil. A quick check on natural gas, estimates are that it would be pretty low. Check in here on new gold actually moving higher. That is the largest slump on hopes of physical buying. After the earthquake in chile, ending flat. For on the markets, im alix steel. This is talking stock