York attorney general gave some details in a News Conference yesterday. Our complaint alleges the marketing of safeguards was false, the lawsuit files today charges that it drew to one of the largest in the United States by telling investors it were diving into safe waters when, in fact, barclays dark pool was full of predators who were there at barclays invitation. Kerry geithner, lets take a to usack and explain exactly what this is about, these dark pools and barclays involvement. Dark pools are where the big majority of stocks in the u. S. Are traded. They are dark that forms and we do not know what goes on in these. It is not transparent the way the exchanges are. A broad off investigation into highfrequency trading back in march. We now have a case against barclays. We look at how they allegedly deceived their customers about how they ran their dark holes, which could impact the customers lime bottom line on trade. Dark pools are part of the discussion we had with the fcc, and other regulators on how to that does notrket have transparency and a lot of people simply do not understand. Key they are one of the platforms people used to look for better devices with these Fast Computers that beat everybody else on the market. Just the word is nefarious. It sounds nefarious. It does. It is the lack of transparency to have people heated on the issue. Now that we finally have a case on this, cracking this open and letting us look on how at how this operates. Average investors should be worried about this because . Transparent transparency in the equity markets at the end of the day affects the price of stocks and that trickles down to re to the investors. Could ultimately hurt investors. Thank you. They will have an interview with eric schneider. Trish regan will press him about details over the barclays investigations allegations. That is something you do not want to miss. Fourthquarter results last week, the food giant taking a 681 Million Dollar writedown. Alix steel is following this company. What is the reality behind the rough quarter . They seem optimistic going forward. Fullyear earnings at six andent, picking up in 2016 2017. Labeled thiste this back in 2013. That is the biggest problem. It basically has its own retail brand, winding up committee having a better relationship with stores. The private label is generic. Not a lot of shelf space when it comes to the issue. The thing we showed you before is an overall issue. We are basically spending less. Our spending on groceries has risen less than one percent a year since 2008. A steady increase in discount retailers and market packaged food, we are just not sending that much. How does this reflect changes in the way we eat and what we need . Part of that is we are just eating healthier. That is not good for canned foods products. They have things like chef boyardee which contributed to the writedown. You can see we are only looking at 4 10 of one percent growth from 2018 to about 20 billion. What does that mean we are eating . Eating healthy things, glutenfree foods, a lot of spreads and proteins. Here is a breakdown of what we do when we go to the grocery store. From 20132018. A large part of that is were looking at the disease and understand it more. Are also snacking more and can blame that on the millennials. Potato chips. A five percent growth in 2013. By 2018. Billion i am talking peter chips, chocolate covered potato chips, changing how we wind up eating. Ofcan look at it in terms yoga sales, 10 in 2013 to 10 in 2018, hitting almost 9 billion. In a landmark case, the Supreme Court voted to protect broadcasters against aereo, a streaming service whose subscribers can watch broadcast programming without a television set. They can live stream it. Basically, overthetop alternatives. Equity now, a private investor in media. You did not think area would win here. I am still reeling from the loss of chef boyardee. I thought the case was a foregone conclusion. Was to Business Model steal other peoples copyrighted material and sell it. Antenna iot a rooftop might have gone to radioshack and bought and watched over the air as opposed to on a cable system. Why not . Isnt it now in this day and age . There is a lot wrapped up on this. This is the first shoe to drop among trees that will drop. The court yesterday said copyrighted material belongs to the man who develops it and creates it. It is their prerogative to value it and sell it. It is not my prerogative to steal it and resell it. You will also hear from the senator about Net Neutrality. When Net Neutrality is a very concept between giving broadband to everybody and again protecting the copyrighted materials. What will happen, because we have now embedded in the longterm a retransmission consent, the third shoe to drop after the elections, we will look all a card. Expressed. Istress that consumers are frustrated with how the how much they are paying. Large parts being pieces they do not want or cannot afford. How will this position push back at all on these costs . Broadcasters transmission fees will only go higher. There was a suggestion retransmission cost to the consumer, about 4 billion a year, directly and indirectly, it is about 20 billion a year. It is factors more. We watched here and you and i lived in new york. Cbs,tched last fall where one network, wanted two dollars for signals. All cable subscribers. It is the legions of dollars. Much more, and then there are indirect addons. What was important yesterday was not the demise of aereo. Aereo was a the a thief. They were stealing copyrighted material. And repackaging and selling it. Just taking it, but stealing it and selling it. I want to read to you one comment made in a statement, right after a decision. He said, this ends a chilling message to the technology industry. Are we moving toward a permissionbased system for Technology Innovation . He did not read the justices ruling. The justices ruling endorsed advances we see every day in technology. He said this is not a Technology Decision fundamentally. This is a theft of copyrighted material decisions uniquely. We will continue to see wonderful young man and young men and women in this country. We will continue to grow. Let me take the other side. What chet is saying is if you have got to be worried that every time you want to use content or every time you are looking at making some sort of Technology Based on other peoples content, you need to get permission first from the content operators before you can even go ahead. That will slow down or even stall innovation. It will stall the theft of the copyright material. It will not stall innovation. Your children will live in a media world markedly different than the one you grew up in. Overthetop with technology, they will watch what they want to watch but only what they want to watch. They will pay for only what they want to watch. Technologies will continue to evolve. You cannot have a world where i book or a tv a show, and someone comes in and says, thanks, now i will take it and sell it away from you. We have to protect peoples copyrighted materials. This goes back to gutenberg bible forward. Thank you for joining us this morning, leo hindery of intermedia partners. Moving and shaking this hour, sandbergs coo sheryl has been vocal about the need for more women to be in leadership roles. Bestseller. She may want to look at her own company. Facebook says its work is 31 women. Managersake up 20 of and 10 of technical employees. The manager admits the company has a lot more to do and to be fair, facebooks numbers are not much different than other big tech companies. Yahoo allkedin, and reported similar percentages. ,hat fight over Net Neutrality that means having equal access to the internet. We will talk to al franken, who opposes what the fcc plans to do. Also, i have got a weaver and the only cure is more world cup. The u. S. Soccer team says it is ok to ditch work for the big game. Stay in the loop here loop. You are watching in the loop live on Bloomberg Television. Now that Net Neutrality has gone viral because of john oliver, more and more critics are speaking out about proposed new fcc. For the there is even occupy google, which called for taking action on july 15. The internet senator, al franken. Senator, thank you for joining us. I want you to weigh in on the aereo decision yesterday. What is your reaction . I thought leo hindery covered it very well. They are violating copyright law. And were taking something selling it that was not theirs. ,t was a decision by the court but i will give you an example of copywritten material. Can i call you betty . You can call me al. We just stole from paul simon. It is very different because we cannot just do a song. We actually did something else. We added to it. But no, i think this was the right decision. It was a narrow decision but i think it was pretty clear, too. I was also surprised because i thought you would have been more sympathetic to aereo because they felt they were the little guy, the little tech startup that wanted to, that tried. Collects it is about little tech giants. Tilting against the reason so many people are responding to john olivers piece is that they understand lane,f you have a fast which is what they are talking about and what wheeler talked about, the commissioner of the fcc, you will forge innovation. This was not so much innovation as stealing. A good example of this, before youtube, there was google video. Google video was not very good. The guy who started youtube did pizzeria in california and because they were able to ,tream or flow their content people liked it. They liked it more than they liked google video. Everybody one except for google video. Point. T your because we had a free and open internet, the little guys could do better and get a fair shot. But senator, some of the brought by the Cable Companies themselves, say look, if you start regulating the internet, and you do not allow us to give priority access to some or be paid for this, then we will not be able to make the investment. Show you what jerry said about Net Neutrality. We are making significant investments in broadband. It is critical to the investment and growth in the country in the last thing you want to do is cut off that investment. He says he will not be able to invest. Look at all the investment we have had in broadband. Look at where this can from came from when it was developed by american taxpayers. We have had all of this expansion of the internet, all ofthis amazing growth, all these jobs, all the vitality, all the innovation. Not while we had Net Neutrality but because we had Net Neutrality. Giving a fast lane to people who can afford it will do will be to thwart innovation and he knows that. That was a disingenuous argument if you ask me because it sort of what everyone was saying who was overloading the fcc. The internet itself, it is not exactly as if the internet is a completely fair and open system right now. Googlepanies like themselves, for instance, they already paid to get some priorities over others. They have so much traffic. Sonot as if it is some fair right now. There are issues using the barebones of the internet onto isps, but to develop a fast lane or deep pocket corporations i think is a mistake. Some say the issue is not just about Net Neutrality, but really about how the Cable Companies are getting bigger and bigger. Should it not focus on how you top the mergers versus how stop the fcc . They are kind of related. Comcast time warner. Able deal if they combine, they control 40 of internet broadband. That is why netflix is really to bef forced to pay them able to stream directly through them. To me, they are very related. That is why i have been a proponent of that deal and basically of this consolidation of telecommunications media. I know you introduced a bill, senator. A few weeks ago, where you and two other democrats wrote this bill where you are basically noting the fcc they should be imposing priority access lanes, these fast lanes, i want to read for you one part of what john boehner said about Net Neutrality. Extensive neting neutrality regulations would only serve to deter investment and stifle one of the brightest spots in our economy. He is basically repeating much of what you just heard from one of the Cable Operators ceos. How do you get republicans on board . We have heard troubling. Hings coming from republicans we have had all of this innovation and expansion from the internet without Net Neutrality, why do we need it . Betty, does that make you chuckle a little bit . Who,re hearing from people i do not think, understand exactly what the internet has been and what the architecture of it is and the fact that we have had Net Neutrality from the very beginning. This is something developed by the United States government, by our taxpayers, and we have a just be say this should a common carrier and should between did as telecommunications. Tweeted as telecommunications. People do not understand exactly how the internet works. A lot of people have a mental framework of an internet maybe 10 years ago but not the internet of today. Overe are kind of fighting what they believe is the internet today, when it is a much different place. I do not think that member of congress understood the internet as it was 10 years ago. That is the problem. Think some of the new members that get over there, some of , i think ifertarian they understood it, they would say, yeah, you cannot have big corporations buying access and hurting the little guy. I think if they properly understood it, they would be on my side. I think they are being told by of theeadership, sort big Cable Companies, are funding them to a degree and saying, this is the government takeover of the internet. That is the dynamic that is happening in the house. Senator, we will leave it there. Much, senator al franken of minnesota. Betty any day. You can call me al. All right. Moving on, a look at our Bloomberg Top headlines. Go pro begins trading today. The maker of wearable cameras trades 470 million on its ipo. The company sold 78 million per share. Shares will trade on the nasdaq. More bad news for gm. The automaker, stocks selling 2014 chevy cruises because of potential problems with airbags. Gm is expected to file an for the recall notice companys topselling car, the cruise. Cruze. Cigarettesf marlboro earnings forecast. It is 26 minutes past the hour, which means Bloomberg Television is on the markets. Are nickedres because they have been, pretty much, in the past few days, there has not been a lot of conviction in the market. We have seen direction after the Economic Data and after the opening bell. Claims, spinning numbers will be out in just a few moments. Staying with the markets, it turns out there are lessons you do not want to learn at harvard. If you had a diversified portfolio over the last year, in what a steep price turned out to be an epic rally. Big victims in the incident include many endowments of those of major universities who spread their funds into real estate and private equity and hedge funds and other alternative assets. Is this market a signal that it is time to change its model . Whot perry is a partner advises endowments with a total of 50 billion in assets. Endowments in this market, where it seems like everybody had been going up, why has it gone so wrong . A couple of things have led to underperformance of endowments versus that of a traditional 6040 portfolio. Has been fairly well publicized, the move away from economic equities. Domestic equities have performed incredibly well over the last five years, especially last year, where they are up over 30 . Most endowments have moved away from equities and decreased their allocation. They have taken the capital and moved it often to alternative assets. Hedge funds, real estate, and while those had produced positive returns, they had not kept up with that of domestic equities. Finally, emerging markets had underperformed. That is an area endowments have also allocated to. It seems that was pretty much across the board. You know, there are large institutions, the harvard and yell and stamfords of the world that have implemented the endowment model. What we have seen over the last five or 10 years is a greater push from other institutions to try to replicate the model. The challenges they often do not have the resources to do it in a way harvard or stanford good. They missed the boat overweighting domestic equities, how do they make up for lost opportunities here . Now is certainly to avoid the temptation of switching to that portfolio now. We have seen it have an acredible run, but we think diversified portfolio, one that allocates globally is wellpositioned from a valuation perspective to do well going forward. Thank you so much. Have got breaking right now on the economy. 300ess claims coming out at 12,000. That is in line with what economists expected. Personal income numbers watched by the markets and up 4 10 of one percent, also in line with estimates. Spending a little bit lower than forecast, just up to tenths of compared to economist expectations of a gain of almost one percent. Digging through the numbers, mike mckee, not such great news by the consumer. At this point, the consumer does not seem to be going out of their way to spend a lot of money. Ofdid see a slight revision today for members from the negative 10th of two flat but only a 2 10 gain from the month of may in terms of overall spending. Were looking at what the numbers are and you want to see Services Spending go up. It stated ready flat during the month, half a percent. Goods are up by almost three quarters of one percent. It is the rest of the economy we have been watching. Have ad news is, we fairly strong gain in incomes and a strong gain within that in terms of wages and salaries. We know we spend what we make. That may hold out some promise for the future. As the economy gets better, more people get hired. Staysbless claims number virtually unchanged. The good news there, we do seem to have settled into a very low that wouldaims suggest that hiring is going to be still strong,