Offering ideas for regulating the brave new world of High Frequency trading and dark pools. Peter cook has more on the hearing. Big names are testifying, and they do not all agree on what is going on in the market. Definitely, betty, some differences of opinion. It includes the said adels and majorfounder players in the business of stock trading and they have different views on the basic debate happening right now are the equity markets effectively rigged against average investors, as suggested by flash boys michael lewis, or has it helped by lowering cost and improving liquidity benchmark the debate liquidity . The debate should reveal changes. Ken griffin will make the case that all of the innovation has been a good thing and he will also take a swipe, according to his prepared testimony, at some of the critics. While investors have benefited, most legacy record participants have lost out. I simply cannot compete in todays hyper competitive and incredibly efficient marketplace, so we should not be surprised that they publicly year before the old days when they extracted disproportionate rents from investors on the basis of anticompetitive as this practice is business practices. He also talked about higher regulatory standards for dark polls and Retail Investors aboutg more information how much their broker was paid for having a trade routed in a particular location had others location. Others have different opinions. Stryker says that trading venues like the nyse should get deference. He does not think it is fair some investors are able to trade in dark markets about earlier person directly with lit markets and he is also calling for a ban on the maker taker incentives, fees paid to brokers for bringing investments to certain platforms. Viewll get a different from joe bannerman. Of trading economic price controls are a blunt instrument likely to cause disruptions and consequences that are unforeseeable and potentially detrimental to all types of investors. Peter cook, thank you so much. Our chief washington correspondent, peter cook. I want to bring in my guest post for the hour. D. Chard gelfon lets talk about what peter was discussing, the idea of dark p ools, that there is stock manipulation going on. You are the ceo of a public company. How much is that a concern or how much do you want to watch out for . I would put in a broader context, transparency in general. All kind of weird things happen to your stock during the day. In the last 10 minutes a goes down 1 or the other way, and you really do not know why. As someone running the company, you need to be oblivious and satire martin that over the longer term, but as someone who investment cares about and run it over the longer term, but as someone who cares about the investors, something to look at is the issue of shorts. They do not have to care. There is not a lot of exposure. I think there definitely needs to be a window into it. What you arelike saying is we need a bit more transparency because clearly, as a ceo, you do not want to say you are watching your stock price every moment, but if youre having more transparency, you are saying is a better thing for you because you are tracking your stock price . Not me, i would say ultimately my investors because people will call up, the weekend bad,ffice will be good or and it will go a certain way and say what is going on . Asked have you seen any have you seen anything suspicious in your time that imax . I always see what i would call funky trading patterns that i did not understand, and if i do not understand in the business, how with the Retail Investor understand . Why can we not get people more information . On a broader scale, you have been running imax for the last five years as ceo, seen the ups and downs. Really 20 years in one way or another, that he. Betty. Right, you have been at the home for so long. So many ups and downs of the economy. What do you see in the jobs market . How do you feel about the economy, particularly the business going through your theaters . In twoll separate it parts in terms of my business , we are global, in 38 countries. I do not think the United States is the engine of growth. Asia, taiwan,e the philippines. Places like that. That is where it feels to me it is running strong. In the u. S. It seems kind of moderate, not as good as it looks, or bad as it seems someone in the middle. So it is a little lukewarm however, yet other parts of my life it is hard not to see the economy strengthening. Larry summers wrote an oped and he said the great economic problem for millennium has been scarcity people what watch more than can be produced and the challenge has been to produce as much as possible and make sure everyone gets their fair share. The economic challenge of the future will not be producing enough. It will be providing enough good jobs. Would you agree with that . I would mostly agree with that because the advantage of technology is that it creates more productivity. The other side of that, of course, is if there is more productivity, there will be less higherquality jobs. That is difficult. Some timethat i spent thinking about. How do keep progressing the situation, which you really need to do, and that imacs we are always looking to things at imacs we are always looking at doing things bigger and more efficiently, and that is one of the challenges facing us right now. , ceo of imax,fond you are staying with me for the hour. Onaking news following the wires. Abbcie raises its offer for shire. Shire said that they had undervalued the company. Germanys secondlargest lender commerzbank will likely be the violationsolve allegations, paying a fine. I want to head to our berlin correspondent, hans nichols. What impact might this have . It is having an impact on commerzbank shares, down almost 4 this morning. We should put this in perspective. It is a potential half 1 billion. The indication is that would be the low end of the fine. You can always go higher. Compare that to the 9 billion that bp para had to pay. It is a similar violation. Bnp paribas. Pay. D to it is a similar violation. They are not talking about felonies. He will have to plead guilty to anything criminal. In a matter of degrees, it is less than being be there being pete parra bnp paribas, but it could be a run for potential action against deutsche bank, which could be higher, lower, but commerzbank has the provision of side to cover this. It is a lot of money, but they would probably not have to do a Capital Increase to cover. Bottom linet to its what do they need to do to make sure they can afford the fine . Well, if it stays in the half 1 billion range, heres what we know from commerzbank. At the end of last year they had about 1. 2 billion dollars set aside for legal cost. Violation, hen could cover the half 1 billion. The question is will there be other cases . Will they be caught up in another u. S. Regulatory crackdown . Then they might have to do a rights offering. Hans nichols, thank you so much. Hans nichols, our International Berlin correspondent. Moving and shaking this hour, facebook ceo Mark Zuckerberg. He says connecting everyone to the internet is one of the fundamental challenges of this generation. Are in an opinion article in the wall street journal. Uses only onethird of the world has internet access. In the meantime, he is grooming the next generation of facebook employees. They just flew out a 17yearold they were recruiting. One of the persons recruited included a facetoface meeting with Mark Zuckerberg himself. The teenager accepted the job offer and some Silicon Valley internships, as we told you, they are paying 6,000 a month. Not bad. Also moving this hour, a cnote tycoon,the casino the son of who is known as the godfather of macao trading. It is the only place in china where casinos are illegal and it relies on high rollers for 60 of its revenue. Lawrence isos, looking to combine the best of the east, his own legacy, with the best of the west, where he was educated. What has las vegas inspired in the or what have consumables done to help you casino moguls there done to help you along . What in asia, they build slowly, and their more conservative, but in las vegas they have 3000, 5000 rooms, the shows, the nightclubs my philosophy is more along those lines, go big, or go home. Having seen that that is workable and doable, i think that is how i developed city of dreams which is big vision. Big vision, and we need to give customers something they have not seen before it is always about being more innovative, eager and better bigger and better. We will have much more from lateritans at the table in the program. You can catch a full episode tonight at 9 00 30 p. M. Eastern. Raises theuber stakes, going headtohead with new york city taxis. And, we will tell you how transformers is transforming the movie business. Dont you get it . I have to get back to my family. Oh, my god have you seen it yet . That is michael bays transformers blockbuster, which has been a big performer in the u. S. And it is expected to be a major hit in china. It could become the highest grossing film matter of all time, surpassing avatar. We are back with someone who knows a lot about the moviemaking business. Richard gelfond, the ceo of imax, who has over 150 theaters in china and all over the world. O you expect transformers could be the biggest movie ever in china . There is no question about it. If you look at the numbers, they are shattering every record. Imax, our opening weekend, doubled the previous record. 4. 5 million dollars, the record, and this weekend we did about 10 million. What is more interesting is the transformers did better in china than in the u. S. I think it will do a higher growth in china than it does in the u. S. , and this is early signs of a trend we will see into the future. China is going to pass the u. S. In 2018,of box office 2020. It is not just the u. S. Box office when people think about them. It is the u. S. And china. What is great about this film . Great answer great question. It is a nuanced answer. Michael bay did so much to appeal to chinese sensibilities. Was filmed ind hong kong or mainland china. The World Premiere was in hong kong. There were premieres in shanghai. The premiers were pretty close to the release of the film in the u. S. It was worldwide, and the best thing they did in the film was they had a reality show in china where the contestants, the three winners, got to be in the movie transformers. People watched and were really excited, and they were already pretty prepped when the movie opened. It had chinese sensibility. What happened in the boxed box office, they used to be domestic, and then made for international audiences, and now they are being made with chinese offices audiences in mind. We have a chart of ticket sales in china in 2013, and they far surpassed the next closest international market, which is japan. 3. 6 billion. Billion, and a u. K. Pretty far behind at 1. 7 billion. Do you expect that to widen . No question. It will widen over the United States. Hollywood, are they waking up to this will we see more chinese characters in hollywood movies . It will be more about china . I am smiling when you say that because i was on a panel in china at the beijing Film Festival and some u. S. Executive said it was easy, put some chinese characters in the movie or film something on hunan road and it will sell all over the world. Is that true . That is not true. You have to hit the culture. That is michael bay did. He integrated the Chinese Culture into a global story and that is all we will see more of, not just to china, but to russia, and real actors from the countries. But only in Big Box Office rollers . Some of the more dramatic movies do not play well in china. You will see the rise of local films. China. Chinese films in there was a russian movie called stalingrad and it was made by a russian studio. I think the middle market will be filled with more local productions which will be dramas, comedies, because comedy is somewhat local, but the big block asserts will be more local stories. Richard gelfond, stay with me. You are my guest post for the hour, Richard Gelfond of imax. Prosperity. Ing is the bubble bursting for expensive cupcakes . One bakery chain is calling it quits today. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Good morning. I am betty liu. Here are our top headlines. Mbs bake shop has crumbled the bakery chain closed all of its stores. They had expanded to 48 Stores Nationwide after beginning with one store in new york city. Samsung is forecasting a recovery in sales after posting secondquarter profits that missed wall street estimates. Analysts say the worlds Biggest Smartphone maker is feeling the heat from apple and chinese competitors. They are counting on demand for fourthgeneration products to revive growth. Pope francis is making big changes at the vatican Bank Following a scandalplagued the year that saw more than 2000 accounts locked and profit dropping 97 . The bank, known as its the institute for religious work plans to break off investments. It is it is 26 minutes past the hour. Bloomberg tv is on the markets. Equity futures are declining yet again. You can see s p futures are down about. 2 . A member, the earnings season is about to begin. Alcoa will be reporting results after the close. Stocks will be determined largely by what earnings we see over the next several weeks. We are on the markets again in 30 minutes. State to fate to vice when you think of gambling, macao might come to. Ind testing is casino revenue makes up 60 of earnings and last year brought in 45 billion, seven times what las vegas made, and it is also the place where the ho family and Sheldon Adelson are placing big bets. You can see it all at the latest titans at the table. For over four centuries, macau was under portuguese rule, and today it is the closest point to china where gambling is legal. Built a gambling empire. He paved the way for other investors to make it a in big in macau, and today one of the investors is his son, lawrence ho. My father revolutionize the casino markets in macau. Throughout my career, and my life, it has been about trying to prove myself. Correct it was important to you to ash it was important to you to it was important to you to prove you can build a company from scratch . He partnered up with James Packard and their Properties Include two extravagant resorts whose opulence gives las vegas landmarks and run for the money. It is the destination for urban entertainment. City of dreams as an interactive resort where tourists come to put their chips on the table, spend that highend boutiques and stay at highend tells. Hotels. How have the casino moguls helped you along in terms of inspiration in macau . I think many times in asia, people build slowly and they are more conservative. When you go to las vegas and you see the megaresorts, 3000, 5000 rooms, shows, theaters, nightclubs my philosophy is more along those lines, go big, or go home. Bigger, better, and wetter. Heart of the vision is to attract visitors through performances including this house of dancing water. Lawrence is bringing glitz and , but Sheldon Adelson says he invented the concept and he will conquer macau. Wrongly predicted that i if i never open and that opened i would be in bankruptcy immediately. They did not want to believe that someone else could do this. They grossly underestimated me. Sheldon adelson did not just succeed, he dominated. His first resort was so successful he made back the initial 265 Million Investment in just the first year. 30,000 people showed up more than 30,000. We do not know the exact number because as they waited to get in they knock the doors down. Sheldon adelson went on to build a massive 6400room central and the 2900 room venetian macau. As many of Sheldon Adelsons heres have peers have noted is it is his success that is leading las vegas in the dust. Did you ever think macau would surpass las vegas in the way it has . Yes. What convinced you . When we first applied there billion. 2. 5 when we first opened las vegas sands, 5. 5 early in dollars. 2 billion that 3 billion in two years. The business was there. I thought it was going to grow because there are 1. 3 billion chinese. , Atlantic City has seen the opposite. Casino revenues have fallen almost every month for the last eight years, following forcing gaming resorts to close. Casino, which filed for bankruptcy for the second time two years, my file a suit may file a suit and a buyer cannot be found. We are joined by the manager of the boutique Chelsea Hotel in Atlantic City. Gelfondax ceo richard knows about the gaming industry, having once invested in a casino in california. Curtis, lets start with you on Atlantic City. You heard Sheldon Adelson say he created a model of hotels, entertainment, and gaming all in one. How come that did not blossom in a place like Atlantic City . Well, Atlantic City was a resort for 100 years before it was a game in gaming to resurrect a town about 40 years ago and it has had a mediumsize casino in the marketplace for the last 40 years. The scale of the town is an island and it was never able to build a huge megaresort, but gaming has taken a hit because it has been encroached upon in every jurisdiction surrounding Atlantic City. The monopoly Atlantic City once enjoyed has been encroached upon and it has left a need for real innovation in the marketplace. Click some of innovation includes putting more , thatment and innovation includes putting more entertainment, and essentially more activities for people, and i know some of your imax theaters are in these gaming complexes, arent they . Asked as a matter of fact we as a matter of fact we have an imax theater in Atlantic City. The question is how