Transcripts For BLOOMBERG In The Loop With Betty Liu 2014022

BLOOMBERG In The Loop With Betty Liu February 24, 2014

Complaineders have that it does not work. Mulally isalan replacing the in Car Technology with blackberries Technology Like barrys technology. Alan mulally first says no. Job. E microsoft now he is taking microsoft out of his cars. There are no details. People familiar with the companys plans. Ford has had real problems with the Microsoft Technology in its cars. Numberd lincoln ranked 26 and 27 out of 28 rands in the Consumer Reports survey because of these problems. It has been a thorn in Alan Mulallys side. If blackberry cant come in and save ford will ford can come in and save ford, ford will end an era of reliability air of reliability to blackberry. Qnx is the Software Company that blackberry bought in 2010. They make software that runs ,uclear plants, military drones it has to run things that cannot fail. It has been tested. Bulletproof stuff. Bmw used it. Volkswagen, audi, mercedesbenz. All of these systems are so much leaps and bounds better than fords system. What was wrong with the system . Nc offered you a lot of interesting possibilities as far as controls on the touch screen often times, it just did not work. Sometimes the screen would just blank out. Hugely frustrating. That was basically the problems. The time, your phone does not sync up as you would expect from the name. It was a problem and continues to be a real problem. It is such interesting timing. Right after alan mulally says no isthe job at microsoft, he able to ask the contract with that company. Well he is free to. Thank you so much. Matt miller on ford. Joining me now for more in at the mobile world conference is caroline hyde. We just mentioned that this is where all of these gadgets are unveiled. It is a huge deal in europe for a lot of the telecom companies. The whatsapp ceo was the highlight. He had one big announcement. He was adding voice service. Tell us what more he had to say. Yes, i was moderating the panel he was joining. The minute he walked on stage, a cheer went up. So desperate is everyone to be hearing from who is the new addition to Silicon Valleys billionaire club. The chief executive and cofounder of whatsapp. Just shy of half a billion users. Mark zuckerberg is paying 19 billion for the company. The whatsapp ceo remains very humbled. You will also be able to make calls as well. That was the key announcement. The first question i put to him was, did you ever envisage what is a very personal product, a product of his upbringing in the ukraine where you had very little privacy on phone calls and very expensive to talk abroad, that is what he came up with the principal did he think it would catch on to this extent . He said they are still amazed. The area of growth is all about the emerging markets now. Emerging markets indeed. Any other big teams come out so far . Themes come out so far . A key one is to do with privacy in large part. Many companies, mobile operators, App Developers, how can we really secure our data . Our data which we are tracking on our devices, are wearable the new whether it be bracelets, watches and how we customers comfortable that this is not being accessed by governments . The digitalo driving force for the European Commission and i asked her her take on the privacy views. We need to be active in giving not only one partner the policyy in taking their is the main policy, we have to combine our policies, we have to give people privacy. It is of extreme importance. We are active on that. Crucial that she feels that in europe they need to act together. Operators tomobile work with the App Developers to work with the Network Suppliers to come together and put in place regulations they can all enforce an area that we are far more involved than. In. Just to give you a sense of scale, 75,000 people are here today. , the ceorucial players of whatsapp and Mark Zuckerberg. I imagine that will be a standing room only crowd. Caroline hyde at the european at the mobile World Congress. Let me turn back to what is going on here in the u. S. It is merger monday. Mens wearhouse boosting its offer for joseph a bank. This is after joseph a bank said it was buying eddie bauer two weeks ago. Boosting itsse is offer to 63. 50 per share. That is contingent on the acquisition of eddie bauer clothing. It could increase the offer to 65 per share if it is able to conduct a limited due diligence. The original offer was 57. 50 per share in cash. It has boosted that offer, conditional on the acquisition of eddie bauer. This amended effort offer expires on march 12. These two companies have been back and forth on various attempts to buy each other. This is the latest shot slung across. Thank you so much. Scarlet fu there on mens wearhouse. Moving and shaking this hour, defense secretary chuck hagel who wants to cut the army to its smallest size since before world war ii the pentagon releases its proposed budget today. Hagel called for cutting the army from about 570,000 troops to as few as 440,000. He wants to eliminate the a10 attack planes for the air force. The budget is likely to run into and theon in Congress Defense department. We have a Great Program ahead for you today, including the former new york governor. With theined forces myspace cofounder to help you get a job. President onmer the run following last weeks violence. We will again with what is next for the country. Stay in the loop. The manhunt continues for former ukraine president Viktor Yanukovych. The interim government has issued an arrest warrant for him. The u. S. Is working with the European Union on a financial bailout and inviting russia to participate. Joining us now is republican congressman mike turner. He is also a top member of the House Armed Services committee. Also with us is our Bloomberg Contributor richard falkenrath. Also, peter cook. I want to get to our bloomberg correspondent on the ground in kiev. Start with what is going on right now on the ground. Give us the latest on this manhunt for the former president. Kiev is getting to normal. We see more cars. We see traffic jams, which tell us that the traffic is getting to a normal way of life. , it is a veryme tense situation. Also 24 hours of military groups and trolling the cities. They are keeping law and order in the city, they say. Hear unconfirmed reports that some occasional clashes during the night. Theyre working on forming the interim government. Theyre working on getting the aid package. Yes, the aid package which is now in question. The details are being ironed out right now. Thank you for joining us. Our news correspondent on the ground there. Commerce men, let me turn to you first. You are keeping your eye very closely on what is going on. Do you support and aid package . This is incredibly important. It is another example of the president s uncertain policies. This country was on its way to europe and joining our largest. Rading partner with the disruption of democracy, the president has not stood to ensure that this president has a country has a stable democracy and looks to the west. Putin has been playing to try to pull the Company Country in the other direction. The west needs to step up. As you say, there is a very precarious relationship with incidentst helped by like Edward Snowden come allowing him to come into moscow. If putin harbors another fugitive from justice, it will be a further problem in our relations. Ukraine is in a major transition. It has a major job ahead of it. They have to do with the fiscal imbalance and Macro Economic crisis. The United States will step up with everyone else to offer them an aid package. It will be conditioned on domestic Economic Reforms that are extremely painful, that did not get any easier as a result of these protests, and that Viktor Yanukovych shied away from. They will find out that it is a lot harder to protest in the depose and autocrat than run a country. States does not have much choice other than be involved, beyond this aid package. There is not a lot of leverage for the United States at this point. Money is one of the points. We have the treasury secretary jack lew calling top ukrainian officials, talking to the u. S. Support for an aid package, led by the imf, but supplemented as well directly by the United States and the European Union. As richard just said, the secretary also stressed that they want to see some reforms. The u. S. Does not have a whole lot of leverage to paul right now, other than rhetoric and financial support. It sounds like that for the administration is heading. Will congress be on board . One thing to put in focus is that this was a country that was on its way to the west, but for the meddling of putin trying to savage sabotage that. This was a hunter that was looking for a relationship with that you the eu. I think to respond to putins meddling is essential. You mentioned the president. Durban was dick on one of the sunday shows. I want to show you what he said. We have to combine our efforts with the European Union to help ukraine move forward in a peaceful, democratic way. We have to put the pressure on to stop putin undermining this Natural Evolution toward democracy. It does not sell my care is disagreement on both sides sound like there is disagreement on both sides on what to do. The president needs to be engaged. What does that mean . Has no plan, he has no real interest in how this is evolving, the concern of foot is happening to the people. Why is this our business . Why do we need to make it more of our business . We do have some interests here. The congressman is right. It hasne is in the lead been the Foreign Ministers of the major european states. Isnt that rightly so . I have no quarrel with it. I think our instruments of state are extremely limited. Putin nukovych and not to apologize he was democratically elect did elected and was the leader of a seriously divided country. Eastern ukraine is ethnically russian. If push came to shove, it is not clear they would decide to stay. We could definitely see a split. I feel like we have to avoid that. The issue of the president s uncertainty and Foreign Policy has given putin that impetus to move forward and metal. Meddle. Congressman, this is peter the, what do you see as risk of a Russian Military intervention at this point and what, if anything, could the u. S. Do to avoid that at this point . Is a greate, there concern that after the olympics that putin would feel he had a freer hand and would take military action. That would incredibly escalate the tensions between russia and the United States and with our european allies. I think the people in the ukraine, having taken the steps that they have, make some really difficult for him to do that. Like this. Book goes crimea and some of its people declare independence. Tries to restore control. S that is attacking say the government is attacking them and they respond with control. Chuck hagel is going to be releasing the budget for 2015. There was lots of speculation that our army will be cut to about 440,000 one of the smallest in decades. What do you know about these cuts . This is very concerning. They are still looking at the effects of the sequestration. The sequestration is over a 10 year the word period. They are trying to make tough choices. Jobs going to be congresss to move those numbers up. The world is not going to be a safer place. This is not time for us to retreat or cut our military. Thank you so much for joining us from ohio. And also to our contributing editor. And to our chief washington correspondent. You need a job, there is not cap for that. Now an app for that. A new venture that is launching today. It will be announced right here. What is the creator of one of the first social Media Networks think of Mark Zuckerberg . We will hear from him in a moment. You are watching in the loop live on bloomberg television. Good morning. I and betty liu. Bloomberg television is on the markets. Equity futures are trading higher. We close on higher within one point of the record for the s p. We are near those record highs. Some stocks that are moving, including comcast, netflix, on the news that netflix will be paying millions of dollars to comcast for more direct access to its Broadband Network. We will have much more on that. Here is a look at our Bloomberg Top headlines. New turmoil in egypt. The interim Prime Minister announcing that his cabinet has resigned. The surprise resignation comes amid a series of strikes, one by public transport workers and garbage collectors. Egypt will hold elections later this year. The mens and department. Mens wearhouse has boosted its offer for joseph a bank to 63. 50 per share. That is up six dollars from its previous offer. It wants the company. Here at home, it is all about the weather again. After a warmer than normal weekend, i was wearing short sleeves and no jacket, the polar vortex is making a comeback. A blast of freezing air is forecast. It threatens to bring nor snow to the northeast. Just when we thought it might have ended. Hase the Unemployment Rate steadily improved, finding a job remains a difficult feat. A new Online Service aims to facilitate the hiring process through the use of social media and tv and radio content. The Company Brought in the myspace cofounder joe abrams and the former new york governor david paterson. Network willnel its the former governor chief jobs officer. Great to have you both here with us. With you. Let me start what is that exactly mean . I havent the slightest idea. [laughter] we are in trouble. The point is that jobs are like the weather. Everyone talks about them. But the man who founded this have notound that we really changed the way that we recruit people for jobs. The employerslped or those seeking employment in over 50 years. Platform a technology which is onestop shopping. Theoretically, the thought basis of what Federal Express did with packages, bringing them all to one place and then farming them out, and creating that proper form platform to enhance the ability of corporations, companies, individuals, even people who are working and just want to see what the market would hold should they try to change jobs. That is what i would be been theng having governor of a state during the worst recession and having seen the job losses and all the states. It is something that is exciting for me to work on. I think about a company like linkedin, where they say the same thing. Shop. Re the onestop employers and employees and people looking for jobs are all going to be there looking on the same platform. How was this different . Were approaching things differently. We are looking at a situation when we started to look at the market several years ago, about 80 of the jobs go unfilled at the recruiter level. A recruiter gets a job order from a company and they are unable to fill it about 80 of the time. 80 . That is because the companies go to one or two or several recruiters. They do not want to have fee agreements with 100 different recruiters. The put the job out there. What we are looking to do is create an electronic marketplace where employers and recruiters can go and, rather than the company having to do fee agreements with 10 or 15 recruiters, they do if the a feeent with us agreement with us and a coauthor in network and we have strategic arrangements with a lot of recruiting firms and recruiters. Ave we allow a higher fill rate by allowing companies to use other recruiters simply. How will you make money on this . We are transactionalbased. We take a small percentage of the recruiting free fee. But the employers will go on the website for free. If you are just working with a few recruiters with a massive amount of information that exists, you are recruiting in the dark. This is a way to bring all of these tentacles to the same table and then you can see the entire marketplace. How do you draw in the applicants . What about drawing in the applicants . The applicants come from the recruiters themselves were the applicants will come through other strategic relationships that we have with other job related sites. Is this really the problem . About not being able to find employees to fill certain jobs . Or, as we have heard many times, it is a much deeper problem . Is it about a skills gap . A training gap . There is no doubt that there are aret 3. 5 million jobs that available in this country that americans are not qualified for. An internationallybased company. We will be recruiting overseas as well. That is something that needs to be addressed. Our educational system is not teaching to the jobs that are available. That is a bigger problem than all. People are coming out of college right now with sociology degrees, Political Science degrees, they make 40,000 per year doing something unrelated in a fieldeople work unrelated. You were in politics, that paid off. Yes, but i was a history major. [laughter] you have people working 40,000 jobs with 80,000 student loans. This generation is pilloried without respect. , what joee time pointed out earlier, is that the research that went into founding and joe once told me it took them 12 years to become an overnight sensation, the fact is that we have realized that just the technique of getting the right person into the right place is so antiquated, so obsolete in this country that it needs redress and that is what we are attempting to do. We are going to talk more about this. I wa

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