Transcripts For BLOOMBERG In The Loop With Betty Liu 2014081

Lets get back to one of our top stories this morning. Kurdish forces battle sunni militants. Iraqs military situation is deteriorating. Phil mattingly joins us now. How important is a resolution in baghdad to the fight against the Islamic States and the militants . Officialshat u. S. Continue to point to as the only longterm solution. Last night, it looks to have taken a major step back in terms of political resolution. Malakitioned that the president sue for trying to extend and not malaki to be named Prime Minister. Be aware ofgoing to adding more support. It is something president obama highlighted. We can conduct airstrikes, but there will not be an American Military solution to this problem. There will have to be an iraqi solution that america and other allies of support. That cannot happen until you have a legitimate iraqi government. Officials have been clear, behindthescenes, that they would like to see maliki step aside. That has come to the forefront. One of the top state officials in iraq put a statement saying that the americans are fully behind the iraqi president. It is something that john kerry reiterated to reporters this morning. The u. S. Stepped up the airstrikes over the weekend. How do we measure success . You can see the Kurdish Forces made major gains over the last 24 248 hours, pushing back against Islamic State militants. Has beenculty as there positive news in terms of the kurdish offensive. Created some kind of roller coaster. Each positive step that seems to the political situation in baghdad is worsening. Officials are not able to cling to one solid victory because they are dealing with so many different issues. You mentioned the refugees in the mountains. How do we get them free . How what happens to them . There have been four u. S. Humanitarian airdrops. Because of the airstrikes, there have been, what officials believed to have been, a pathway for a few thousand to escape. That comes nowhere near solving the problem. Officials,cording to the forces need to clear off the base of the mound. U. S. Forces, u. S. Airstrikes are helping with that, but it is not the entire solution. Until there is a Clear Pathway for them to escape the mountain, the airdrops, the concern is that they just will not be enough. There needs to be a broad pathway for them to escape. There has been progress towards that fine, but towards that front. Is violence is sedated centered around. Alix steel has been looking into the city. It is the life blood of kurdistan. Of around 2ulation Million People, it grows about 2. 9 a year. 2014 torah some capital by the arab council of tourism. It has lands to fix up neighborhoods, posting international marathons. This is the goal of the city. Part of the success has been about the military. It has its own security force. They are well trained. The region also claims it has better security, electrical supplies, infrastructure. What about business support . Wixon has been huge. Would rather do business here than in iraq. Foreign investors, they can own their entire project. They can transfer profits. Earnhe rest of iraq, they for the work that they do. Because of that, a lot of big oil has flocked to the north. They are all in the Northern Region of the country. The hope is that it will reach about one point two 5 million by the end of 2015. It is viewed as one of the most exciting Oil Production opportunities in the world. Issue. Part of the that is part of the reason they do not get along. Keep 17 ofs to revenues and they need to be able to pay the oil companies. Iraq does not like that. With that, comes a big price to pay. , expandingkurdistan production, and trying to sidestep this whole situation. In terms of what is close in the Northern Region, you have two main refineries. There are two main pipelines. One would go from the area all the way to turkey. Interesting. S it is in two oil fields in the region and intersects the other pipeline that is not owned by baghdad. Able to extend that into turkey, they would own a pipeline free and clear. That could be a game changer for the region. Thank you, alix. Turkey, the Prime Minister is extending his rule. Erdogans when will allow him to build what he calls a new turkey. What is next, hans . Can erdogan make the transformation of the presidency into one of real authority. Eventually, this will become a constitutional crisis. There will be will he have the votes for it . There are elections next summer. This will come down to a test of ballots. We are going to look at market reaction. Another thing he is clear about, he campaigned on it, diminishing independent of the diminishing the dependence of the central bank. Analysts expect that to be another 10 , another 20 weakening lire. Who might he appoint as Prime Minister . The hope was that the current president would challenge erdogan and he would make a play for the Prime Minister position. Analysts are saying that is unlikely to happen. Will install someone for the Prime Minister position and then if he decides to , it will erdogan happen in the parliamentary elections in 2015. It looks like there will be a loyalist lackey to serve president erdogan. It justd founder got a start up the value buzzfeed at 850 million. They just put 50 million into buzzfeed. They are known for the numbered do whenke 17 things to you are bored out of your mind. Ready is putting more resources to his video unit. Coming up, Larry Summers on a dangers of second term president s. He writes Barack Obamas administration is condemned and effectual respect to domestic and Foreign Policy. Michael turner will join in on the president and his latest move in iraq. Who needs hollywood . Some of the biggest stars in their world can be found only on youtube. You are watching in the loop. U. S. Airstrikes continued against islamic militants. Security forces and tanks concentrate near baghdads green zone. Not go far enough for some republicans. For the president to say we are doing airstrikes and nothing else, we are not going to do this or that, what kind of leadership is that . You should never let the enemy know what you are going to do. Here in new york is richard haas. Lets start with you on this, richard. Republicans are going to come out and criticize this campaign. They will say it does not go far enough. What would you say . I would agree that it does not go far enough. They ought to have no sanctuary. The United States ought to be providing large amounts of arms to the Kurdish Forces. If they are armed, they will acquit themselves. Is a serious military confrontation in the group is a serious threat to the United States and europe. Their ability to spread disarray i am worried they can do this to jordan, lebanon, beyond. Escalation more to be done here, do you agree with that . Absolutely. The issue is that as we debate , what is thetegy president s policy . A area degraded part of the u. S. Lack of president s leadership. Look around the world, and is not just the issue of wanting snow where america is, but i see our allies the less certain and more concern about american management. Where is our resolve . Policy . Is our the problem is the administration is not implementing it. There is a big question about whether a transpacific trade agreement will get through congress. In the case of europe, we have a policy in favor of sanctions against russia. Of a deal . Nature we have been too timid . No follow through and too timid . We simply havent had the execution, implementation. Thereer cases, it is not with the goal is. In places like syria, we have not done enough. In other places, you can argue that we have done too much. Getting rid of cutoff man without the followthrough, there is real west and in some cases of design. You what play for senator dick durbin said over the weekend. Escalating it is not in the cards. I think the president has made it clear this is a limited strike. Congressional support for that at this moment. To go beyond is going to be a challenge. Where would he get the full support to launch a more Aggressive Campaign . He is going to have to have a plan and strategy that people in. Evaluating them believe the problem is in all of these issues, the president is too late. Isis did not materialize out of an air. It is a threat that has been evolving and forming. This was something the United States could have seen and should have reacted to. Is in a delay in taking action and showing leadership. It makes every situation that much more worse and difficult. A makes it that much more of threat to our own national security. Disagree. The president cannot conduct of Foreign Policy by polling because right now, the American People may not be comfortable with certain types of escalation. It is his opportunity to make the case for why we need to do more now, lets the united s est the United States finds itself in trouble later. We have to lead. The president has to lead. Under our political stunt, he has latitude. Constitution, he can do what he believes necessary and he should make the case to the people. Quote isy clintons making headlines. Al lethal of it how legal of a shot is it from clinton . Which the substance of it is right. You need a framework for Foreign Policy, otherwise your inbox gets overloaded, you are not sure what to do or how to do it. You need organizing principles. You need sense of priority. Where is the United States going to put into resources . On the other hand, you do not want to sit on your hands. Armed Services Committee going to do . Were going to hold the administration accountable. The fact that Hillary Clinton would normally sing the administrations praises and is willing to criticize them, it shows the obviousness and the difficulty of the situation. Rank you for joining us. Earnings are out in the Online Travel agency that William Shannon are made it famous. The chemical that has been linked to cancer cell growth is an ingredient in a bestselling toothpaste you may have. You are watching in the loop. Good morning. I am betty liu. Priceline Second Quarter earnings topped estimates. Revenue climbed 26 . Quarter earning estimate also fell short. A warning for anybody who uses colgate total. The top telling the topselling toothpaste has a chemical that is linked to cancer in animals. Blackstone is looking to expand its investment in shale. The private equity firm is in advanced talks to buy a 50 shalegas louisiana field. They would pay for the half interest in the formation. That is what you need to know. The hour,inutes past which means Bloomberg Television is on the markets. It is time for futures and focus. Gold teachers are all in. Gold futures are falling. Scott bauer, Senior Market strategist at trading. What is going on with gold . There has been so much geopolitical risk and it has not moved much. Among all this cause for concern . It has been in such a tight range. You have geopolitical tensions which move it up. What we have learned this china, a huge buyer of gold last year, as soon as go got above 1300, they started stepping away. India is coming back. China has stepped away and that has been a surprise. The demand side coming out of asia has taken a little pressure off. Six months in a row where chinese demand has dropped. Last year, it was to the moon. Speaking of mont, i think of new yearhe chinese live in gift. How would you be trading gold right now . Is in a very tight range. It is not a bad thing. , whenolatility gets high , gives tradersgh an opportunity. In the short run, i am a seller in this range. In the longer run, all the fundamentals point downward. Every pressure that is out there is downward. The only thing keeping cold up above 1300 is the thought of geopolitical tension. With the ceasefire in the see whatwe will happens. If we get towards the end of this week and that takes hold and we have not seen anything further in ukraine and russia, i would expect to see gold under 1300. In the longer run, 1325, a great place to sell a. I am looking at 1250 in the next two to three months. It is trading at about 13 1307 dollars. Again, a very range bound situation. Scott says that all of the phenomenal for gold are downward. Do you agree with that . In this poll, singapore will open a gold traded contract. A lot of people are excited. You could see a lot of gold demand out of singapore. Quite a few more contracts in asia to trade gold. Whenever asia increase the contract, volatility has gone up. Things introduce these later this year, you could see an upside to gold if you are bullish, because they will buy it. We have a word of the week. Higher,ures are trading we hear spot future. What does that refer to . The spot month is october. Every single trade month. It has a contract month, which is october. People like to look to where the volume is. If you are trading gold, you are trading december. To those spot contracts have volatility . They are all about the same. Ifpeople are looking for asia comes in, december will be the hot month. Does markets. Have a look at amazons latest dispute. A new fight taking shape in the entertainment industry. Killed the radio star and digital may be killing the tv star. Check out this video. Riders were finally rescued after five hours of being stuck on top of a roller coaster. Firefighters used ladders and harnessed each person before they removed for the ride removed from the ride. Safety computerized system that can cause the right to stop this there is a problem detected. Coaster willnx remain closed until an investigation takes place. Kids, many of your teenagers are probably glued to youtube every day. According to recent surveys, turning their backs on hollywood. Youtube personalities so the teen choice awards. Does that mean the Justin Biebers or Kim Kardashian anze kardashians have to be worried . Great to see this morning. Dont know this. I followed your career. You cemented the whole celebrity watch. You knew who was influential, who was not. What do you think about the youtube stars . I think they are fantastic and influential. They are influential in a different way than your typical hollywood celebrities. How is that different . They love watching them online. They relate to them. There are a lot of youtube stars for guys. Stars,re Gamer Youtube they are probable they are friends. Bro it is all, he sketches, raunchy humor, things like that. You are saying is that caters to that demographic. Theres not a lot of tv shows for teenage boys. That is one of the reasons they have turned to youtube. For young women, there is a lot of fashion and makeup howto videos. It is very visual. It is hard to have a tv show about going to put on makeup, how to get the barbie doll look, for example. Stars,re a few youtube particularly musicians who start as youtube stars. Justin bieber is a great example. There can be cross over. Havei find interesting, we 26 million monthly unique. We have a lot of readers and they are mostly young women. They are not asking us for information about youtube stars. What are they asking for . They ask about hollywood stars. Last night, a youtube star won an award, but what was getting the most traffic were posts , selena gomez. Ev isnt all of this just a stepping stone . The youtube stars are created and they move on to have books and videos and then eventually, they get picked up i hollywood agent and then they get their they star in a movie and that whole machine spirals. That how they get to that . It can happen. A few of them do have crossover, a comedianthere is that has been offered a tv role, i do not know she has taken it. Some of the stars do not want to crossover. They like being on youtube and they feel they can control their own destiny. You might have mentioned the sm osh guys. They have turned out all tv officers offers because they are doing great and extending the brand. They do not need to have a boss. Advertisers when they start thinking about how to spend their money, where are they going to get the most bang for their buck . Which there are some advertisers who can get bang for their buck. I still feel theyre going to get a bigger bank for their buck going for the young female celebrities of greaterey are interest in their personal world and lives. They care about them anymore 360 way. Do you measure influence . How do you measure that now . Social media likes, how do you measure that now . And a lot of ways. If they are on tv, the ratings of their tv show, if they are selling singles and records, their sales. Stars that make music can have huge sales. Life, we measure the amount of interest and traffic stories about them generally. There is consistency when it comes to that. Ena gomez, demi lovato every time you put selena youzs name in a headline, know it is going to get clicked. Not every time, but a lot. Thank you. In Young Hollywood stars are not losing power. The teenage mutant Ninja Turtles made their way back to the screen this weekend. The few between amazon and authors escalated over the weekend. Authors have been taking to twitter to voice their disgust. 65 million the amount that the teenage mutant Ninja Turtles brought in at the box office this weekend. It was far greater than the 40 million that analysts had average. It was enough to unseat guardians of the galaxy. A parade of new releases has restocked and audiences has taken audiences have taken notice. Movies, i have not had a chance to see. More than 900 authors have united against amazon. Now, amazon has created its own group to counter those efforts. This is in response to a dispute that amazon blocking or delaying negotiating a new Islamic State<\/a>s and the militants . Officialshat u. S. Continue to point to as the only longterm solution. Last night, it looks to have taken a major step back in terms of political resolution. Malakitioned that the president sue for trying to extend and not malaki to be named Prime Minister<\/a>. Be aware ofgoing to adding more support. It is something president obama highlighted. We can conduct airstrikes, but there will not be an American Military<\/a> solution to this problem. There will have to be an iraqi solution that america and other allies of support. That cannot happen until you have a legitimate iraqi government. Officials have been clear, behindthescenes, that they would like to see maliki step aside. That has come to the forefront. One of the top state officials in iraq put a statement saying that the americans are fully behind the iraqi president. It is something that john kerry reiterated to reporters this morning. The u. S. Stepped up the airstrikes over the weekend. How do we measure success . You can see the Kurdish Forces<\/a> made major gains over the last 24 248 hours, pushing back against Islamic State<\/a> militants. Has beenculty as there positive news in terms of the kurdish offensive. Created some kind of roller coaster. Each positive step that seems to the political situation in baghdad is worsening. Officials are not able to cling to one solid victory because they are dealing with so many different issues. You mentioned the refugees in the mountains. How do we get them free . How what happens to them . There have been four u. S. Humanitarian airdrops. Because of the airstrikes, there have been, what officials believed to have been, a pathway for a few thousand to escape. That comes nowhere near solving the problem. Officials,cording to the forces need to clear off the base of the mound. U. S. Forces, u. S. Airstrikes are helping with that, but it is not the entire solution. Until there is a Clear Pathway<\/a> for them to escape the mountain, the airdrops, the concern is that they just will not be enough. There needs to be a broad pathway for them to escape. There has been progress towards that fine, but towards that front. Is violence is sedated centered around. Alix steel has been looking into the city. It is the life blood of kurdistan. Of around 2ulation Million People<\/a>, it grows about 2. 9 a year. 2014 torah some capital by the arab council of tourism. It has lands to fix up neighborhoods, posting international marathons. This is the goal of the city. Part of the success has been about the military. It has its own security force. They are well trained. The region also claims it has better security, electrical supplies, infrastructure. What about business support . Wixon has been huge. Would rather do business here than in iraq. Foreign investors, they can own their entire project. They can transfer profits. Earnhe rest of iraq, they for the work that they do. Because of that, a lot of big oil has flocked to the north. They are all in the Northern Region<\/a> of the country. The hope is that it will reach about one point two 5 million by the end of 2015. It is viewed as one of the most exciting Oil Production<\/a> opportunities in the world. Issue. Part of the that is part of the reason they do not get along. Keep 17 ofs to revenues and they need to be able to pay the oil companies. Iraq does not like that. With that, comes a big price to pay. , expandingkurdistan production, and trying to sidestep this whole situation. In terms of what is close in the Northern Region<\/a>, you have two main refineries. There are two main pipelines. One would go from the area all the way to turkey. Interesting. S it is in two oil fields in the region and intersects the other pipeline that is not owned by baghdad. Able to extend that into turkey, they would own a pipeline free and clear. That could be a game changer for the region. Thank you, alix. Turkey, the Prime Minister<\/a> is extending his rule. Erdogans when will allow him to build what he calls a new turkey. What is next, hans . Can erdogan make the transformation of the presidency into one of real authority. Eventually, this will become a constitutional crisis. There will be will he have the votes for it . There are elections next summer. This will come down to a test of ballots. We are going to look at market reaction. Another thing he is clear about, he campaigned on it, diminishing independent of the diminishing the dependence of the central bank. Analysts expect that to be another 10 , another 20 weakening lire. Who might he appoint as Prime Minister<\/a> . The hope was that the current president would challenge erdogan and he would make a play for the Prime Minister<\/a> position. Analysts are saying that is unlikely to happen. Will install someone for the Prime Minister<\/a> position and then if he decides to , it will erdogan happen in the parliamentary elections in 2015. It looks like there will be a loyalist lackey to serve president erdogan. It justd founder got a start up the value buzzfeed at 850 million. They just put 50 million into buzzfeed. They are known for the numbered do whenke 17 things to you are bored out of your mind. Ready is putting more resources to his video unit. Coming up, Larry Summers<\/a> on a dangers of second term president s. He writes Barack Obamas<\/a> administration is condemned and effectual respect to domestic and Foreign Policy<\/a>. Michael turner will join in on the president and his latest move in iraq. Who needs hollywood . Some of the biggest stars in their world can be found only on youtube. You are watching in the loop. U. S. Airstrikes continued against islamic militants. Security forces and tanks concentrate near baghdads green zone. Not go far enough for some republicans. For the president to say we are doing airstrikes and nothing else, we are not going to do this or that, what kind of leadership is that . You should never let the enemy know what you are going to do. Here in new york is richard haas. Lets start with you on this, richard. Republicans are going to come out and criticize this campaign. They will say it does not go far enough. What would you say . I would agree that it does not go far enough. They ought to have no sanctuary. The United States<\/a> ought to be providing large amounts of arms to the Kurdish Forces<\/a>. If they are armed, they will acquit themselves. Is a serious military confrontation in the group is a serious threat to the United States<\/a> and europe. Their ability to spread disarray i am worried they can do this to jordan, lebanon, beyond. Escalation more to be done here, do you agree with that . Absolutely. The issue is that as we debate , what is thetegy president s policy . A area degraded part of the u. S. Lack of president s leadership. Look around the world, and is not just the issue of wanting snow where america is, but i see our allies the less certain and more concern about american management. Where is our resolve . Policy . Is our the problem is the administration is not implementing it. There is a big question about whether a transpacific trade agreement will get through congress. In the case of europe, we have a policy in favor of sanctions against russia. Of a deal . Nature we have been too timid . No follow through and too timid . We simply havent had the execution, implementation. Thereer cases, it is not with the goal is. In places like syria, we have not done enough. In other places, you can argue that we have done too much. Getting rid of cutoff man without the followthrough, there is real west and in some cases of design. You what play for senator dick durbin said over the weekend. Escalating it is not in the cards. I think the president has made it clear this is a limited strike. Congressional support for that at this moment. To go beyond is going to be a challenge. Where would he get the full support to launch a more Aggressive Campaign<\/a> . He is going to have to have a plan and strategy that people in. Evaluating them believe the problem is in all of these issues, the president is too late. Isis did not materialize out of an air. It is a threat that has been evolving and forming. This was something the United States<\/a> could have seen and should have reacted to. Is in a delay in taking action and showing leadership. It makes every situation that much more worse and difficult. A makes it that much more of threat to our own national security. Disagree. The president cannot conduct of Foreign Policy<\/a> by polling because right now, the American People<\/a> may not be comfortable with certain types of escalation. It is his opportunity to make the case for why we need to do more now, lets the united s est the United States<\/a> finds itself in trouble later. We have to lead. The president has to lead. Under our political stunt, he has latitude. Constitution, he can do what he believes necessary and he should make the case to the people. Quote isy clintons making headlines. Al lethal of it how legal of a shot is it from clinton . Which the substance of it is right. You need a framework for Foreign Policy<\/a>, otherwise your inbox gets overloaded, you are not sure what to do or how to do it. You need organizing principles. You need sense of priority. Where is the United States<\/a> going to put into resources . On the other hand, you do not want to sit on your hands. Armed Services Committee<\/a> going to do . Were going to hold the administration accountable. The fact that Hillary Clinton<\/a> would normally sing the administrations praises and is willing to criticize them, it shows the obviousness and the difficulty of the situation. Rank you for joining us. Earnings are out in the Online Travel<\/a> agency that William Shannon<\/a> are made it famous. The chemical that has been linked to cancer cell growth is an ingredient in a bestselling toothpaste you may have. You are watching in the loop. Good morning. I am betty liu. Priceline Second Quarter<\/a> earnings topped estimates. Revenue climbed 26 . Quarter earning estimate also fell short. A warning for anybody who uses colgate total. The top telling the topselling toothpaste has a chemical that is linked to cancer in animals. Blackstone is looking to expand its investment in shale. The private equity firm is in advanced talks to buy a 50 shalegas louisiana field. They would pay for the half interest in the formation. That is what you need to know. The hour,inutes past which means Bloomberg Television<\/a> is on the markets. It is time for futures and focus. Gold teachers are all in. Gold futures are falling. Scott bauer, Senior Market<\/a> strategist at trading. What is going on with gold . There has been so much geopolitical risk and it has not moved much. Among all this cause for concern . It has been in such a tight range. You have geopolitical tensions which move it up. What we have learned this china, a huge buyer of gold last year, as soon as go got above 1300, they started stepping away. India is coming back. China has stepped away and that has been a surprise. The demand side coming out of asia has taken a little pressure off. Six months in a row where chinese demand has dropped. Last year, it was to the moon. Speaking of mont, i think of new yearhe chinese live in gift. How would you be trading gold right now . Is in a very tight range. It is not a bad thing. , whenolatility gets high , gives tradersgh an opportunity. In the short run, i am a seller in this range. In the longer run, all the fundamentals point downward. Every pressure that is out there is downward. The only thing keeping cold up above 1300 is the thought of geopolitical tension. With the ceasefire in the see whatwe will happens. If we get towards the end of this week and that takes hold and we have not seen anything further in ukraine and russia, i would expect to see gold under 1300. In the longer run, 1325, a great place to sell a. I am looking at 1250 in the next two to three months. It is trading at about 13 1307 dollars. Again, a very range bound situation. Scott says that all of the phenomenal for gold are downward. Do you agree with that . In this poll, singapore will open a gold traded contract. A lot of people are excited. You could see a lot of gold demand out of singapore. Quite a few more contracts in asia to trade gold. Whenever asia increase the contract, volatility has gone up. Things introduce these later this year, you could see an upside to gold if you are bullish, because they will buy it. We have a word of the week. Higher,ures are trading we hear spot future. What does that refer to . The spot month is october. Every single trade month. It has a contract month, which is october. People like to look to where the volume is. If you are trading gold, you are trading december. To those spot contracts have volatility . They are all about the same. Ifpeople are looking for asia comes in, december will be the hot month. Does markets. Have a look at amazons latest dispute. A new fight taking shape in the entertainment industry. Killed the radio star and digital may be killing the tv star. Check out this video. Riders were finally rescued after five hours of being stuck on top of a roller coaster. Firefighters used ladders and harnessed each person before they removed for the ride removed from the ride. Safety computerized system that can cause the right to stop this there is a problem detected. Coaster willnx remain closed until an investigation takes place. Kids, many of your teenagers are probably glued to youtube every day. According to recent surveys, turning their backs on hollywood. Youtube personalities so the teen choice awards. Does that mean the Justin Biebers<\/a> or Kim Kardashian<\/a> anze kardashians have to be worried . Great to see this morning. Dont know this. I followed your career. You cemented the whole celebrity watch. You knew who was influential, who was not. What do you think about the youtube stars . I think they are fantastic and influential. They are influential in a different way than your typical hollywood celebrities. How is that different . They love watching them online. They relate to them. There are a lot of youtube stars for guys. Stars,re Gamer Youtube<\/a> they are probable they are friends. Bro it is all, he sketches, raunchy humor, things like that. You are saying is that caters to that demographic. Theres not a lot of tv shows for teenage boys. That is one of the reasons they have turned to youtube. For young women, there is a lot of fashion and makeup howto videos. It is very visual. It is hard to have a tv show about going to put on makeup, how to get the barbie doll look, for example. Stars,re a few youtube particularly musicians who start as youtube stars. Justin bieber is a great example. There can be cross over. Havei find interesting, we 26 million monthly unique. We have a lot of readers and they are mostly young women. They are not asking us for information about youtube stars. What are they asking for . They ask about hollywood stars. Last night, a youtube star won an award, but what was getting the most traffic were posts , selena gomez. Ev isnt all of this just a stepping stone . The youtube stars are created and they move on to have books and videos and then eventually, they get picked up i hollywood agent and then they get their they star in a movie and that whole machine spirals. That how they get to that . It can happen. A few of them do have crossover, a comedianthere is that has been offered a tv role, i do not know she has taken it. Some of the stars do not want to crossover. They like being on youtube and they feel they can control their own destiny. You might have mentioned the sm osh guys. They have turned out all tv officers offers because they are doing great and extending the brand. They do not need to have a boss. Advertisers when they start thinking about how to spend their money, where are they going to get the most bang for their buck . Which there are some advertisers who can get bang for their buck. I still feel theyre going to get a bigger bank for their buck going for the young female celebrities of greaterey are interest in their personal world and lives. They care about them anymore 360 way. Do you measure influence . How do you measure that now . Social media likes, how do you measure that now . And a lot of ways. If they are on tv, the ratings of their tv show, if they are selling singles and records, their sales. Stars that make music can have huge sales. Life, we measure the amount of interest and traffic stories about them generally. There is consistency when it comes to that. Ena gomez, demi lovato every time you put selena youzs name in a headline, know it is going to get clicked. Not every time, but a lot. Thank you. In Young Hollywood<\/a> stars are not losing power. The teenage mutant Ninja Turtles<\/a> made their way back to the screen this weekend. The few between amazon and authors escalated over the weekend. Authors have been taking to twitter to voice their disgust. 65 million the amount that the teenage mutant Ninja Turtles<\/a> brought in at the box office this weekend. It was far greater than the 40 million that analysts had average. It was enough to unseat guardians of the galaxy. A parade of new releases has restocked and audiences has taken audiences have taken notice. Movies, i have not had a chance to see. More than 900 authors have united against amazon. Now, amazon has created its own group to counter those efforts. This is in response to a dispute that amazon blocking or delaying negotiating a new Distribution Deal<\/a> with the publisher. Julie hyman has more. Inboxes of have the the various ceos filling up rapidly. On one hand, you have a readers united group that amazon has tried to create. On the other, the authors united area on that side, you have 900 an ad that signed appeared in the new york times. None of us, neither readers nor authors benefit one books are taken hostage. Betweenis the dispute amazon and hachette where amazon wants a bigger cut of the books it sells through its website. Alleging there books are being taken hostage. Many of those authors are not hette authors themselves. They are urging readers to email jeff bezos. On the flip side, amazon says you should be emailing the ceo himachette and telling youre not happy about the situation, a proxy battle, taking it to the shareholders, and to the readers. Before. Have done this they have. We are not usually talking about books. They have done it when that comes to warner bros. Movies. Now it looks like theyre doing it with disney movies, where it is not allowing preorders of physical dvds of captain america the winter soldier. This is a negotiating tactic that amazon has employed before. Bros. , ite of warner was successful. Clearachette it is not what the outcome will be. It is allowing folks to buy the streaming version of many of these movies, just not a physical dvd version. Streaming movie sales now account for about a third of all movie sales once they get out of the theaters. Thank you. An author of a test selling book, and also president of the authors guild. Roxana robinson joins us. One part of amazons letter. They say, when a thing has been done a certain way for a long time, resisting change can be reflected in the powerful interests of the status quo are hard to move. It was never in George Orwells<\/a> paperbacko suppress books. He was wrong about that. There are many parts to the question. George orwell was never trying to suppress able back. Amazon misread his common. We have settled that part. Lets go to the other part. There are a lot of inefficiencies in the book business. What amazon is trying to do is take control of the book market and try to take control of the book rices and trying to devalue them. Book prices and trying to devalue them. Everyone who makes a product should have the right to price the product where they can make a profit. Hachette is saying we will not let the books rice sink below a certain point. Amazon amazon is saying they are colluding with other publishers. They did not. In 2010. They colluded that was a different issue. Amazon says author should be happy with the elastic pricing of ebooks. They put out data in their letter, they said if the prices were to fall from 14. 99 to 9. 99, they would sell more books and authors could pay more than what they are now. They show no data for that. They say they have done studies. They do not show the studies. That goes against common sense. Readers by with they want to read. If you were looking for a historical romance, you would not buy moby dick. Readers by with a want to read. Not everyone is buying moby dick. Estsellers you can make the other case. If you are looking for moby dick, youre not my a historical romance. Readers by what they want to buy. It does not matter what the prices. Amazon wants to devalue the product so they can have more sales. What we do is right. You never see tiffanys giving away Diamond Rings<\/a> at the promotion. When you say devalue, amazon says they have gone directly to we will takeaid, the money and give you all the money for ebooks. You will make more money or we will donate whatever money we to and we will donate it charity. You are mixing things up. To authors an offer a while ago, saying they suggested authors take a position on this. This is a situation amazon has taken has created. They can take the writers out of this. They decided to punish the hachette authors. They did not ask for. They can do nothing about it now. Is threatening and intimidating behavior. There is no need for it. Critics are authors happy with the way the Publishing Industry<\/a> works now . Ever happy with any publishing situation. People published by amazon have complaints, people published by the big five have complaints. In this case, amazon is pushing for a very low price on ebooks, which devalues the product and it also ignores the fact that what makes a book valuable is intellectual effort. That goes into it, whether it is in digital form or book form. This is going to continue to play out. Hank you so much coming up, day one first rent cost new ceo. Bloomberg television is on the markets. Futures are climbing on monday morning. Some concerns about iraq are being overshadowed by easing concerns in ukraine. Up, Vladimir Putin<\/a> gushes over exxon after giving the u. S. Oil company the ok to start an oil well in the arctic. Another note, rory mcelroy is on fire, winning the pga championship weeks after take home the hardware at the british open. He has been dominating the golf world. Can he replace tiger woods . You are watching in the loop. About 30 minutes away from the opening bell. You are in the loop. Futures indicates stocks will be higher at the open. The s p coming off its best day in five months. John kerry says the u. S. Is withdrawing support from iraqs Prime Minister<\/a>, nouri almaliki. Toiki is resisting pressure make the government more inclusive. The new ceo of sprint against work, Marcelo Claure<\/a> the new ceo of sprint begins work, oncelo claure will setake at t and verizon when it comes to price cuts. A 700 million oil well. Rosneft will begin drilling there. Ryan chilcote is in london. Why is this well such a big deal . Ordinary well. Not everyone spends 700 million on an extraordinary well that they do not know will yield oil. They will not know for 70 days. A lot of people are calling it the most important well to be drilled this year. It could be a massive amount of oil. Good not just for the oil market, good for russia, good for exxon, even before bp which has a 1 5 stake. This is a big deal. If they find oil, that could be as big as the north sea. Didnt you think to hear putins phrase the alliance with exxon, what do we make of that . There is the dialogue and conversation between the u. S. And russia that is so acrimonious recently. This is an example of and the sanctions war, the u. S. Sanctions and a russian counter sanctions. In addition to sticks there are carrots. Deal, you have to go through the kremlin. If youre going to be pragmatic, like this. E carrots what is implied is, as long as you do not introduce more sanctions. The sanctions, i thought, were supposed to prevent projects like this. The European Union<\/a> actually and reduce new sanctions that restrict technology for the oil industry. And specifically for arctic drilling. Well, how is this possible . This is in the arctic. The reason is because there are a lot of exclusions. Supposed tos are be watertight, the entire arctic seeking it through. Sea can get through. Deals concluded before the sanctions were announced, rosneft and exxon were quick to justhe rig they needed before the sections were announced. That is not the only loophole. Houston billionaire Richard Kinzer<\/a> is consolidating his pipeline empire to position it for growth on the back of the shale boom. Why is kinder doing this . Was under pressure from investors to do something. He has grown this universe of companies, Kinder Morgan<\/a> inc. , der Morgan Energy<\/a> partners it has become a big, complicated structure. There were a lot of Management Fees<\/a> that made it more expensive than some of its competitors to do deals. And a lot of people are predicting he was going to consolidate the other way around, candor morgan Kinder Morgan<\/a> was going to buy the others. Instead, is going to be kinder inc. , the Parent Company<\/a> buying everybody out. Why . It has to do with credit rating. A lower rated company. Inc. Had a better rating. The talk this over with the rat ing agencies. In an industry with a lot of debt counts inasis point this industry. How does this compare to what his competitors are doing . Is a little against the trend. A lot of other companies are offng towards spinning assets into master and partnerships. Which is a type of company that does not pay Corporate Income<\/a> tax because in the tax code they get their revenue from natural resources. That would have been is Kinder Morgan<\/a> energy bought Kinder Morgan<\/a> inc. There has been a lot of activity in that space. Ess announced they were going to spend some assets off into one of these mlps and investors long while. What about opportunities in kinders public . Pipeline . Have doubled, there are tons of companies that could be takeover targets. Repluis a lot of mbing that needs to go on, new cap lines from production to demand centers. Thank you so much. Iving in shaking this hour moving and shaking this hour, Ryan Seacrest<\/a> is launching a line of suits sold in macys so you can look like Ryan Seacrest<\/a>. Hes already pretty busy, host a american idol, havs syndicated radio show. He says his line will be targeted to a young audience. We want to get it right out of the gate, the suits are about first impressions. Millenials going out for their first interview our first meeting for a job, that is a first impression. This launches a first impression. First impressions count. Coming up, day one for sprints new ceo, he has got to make a good first impression. Who is Marcelo Claure<\/a>, is he the right man for the job . Should College Athletes<\/a> be paid . Ncaaourt says yes, the does not think so. The legal battle brewing. Stay in the loop. You are watching in the loop, live on Bloomberg Television<\/a> and streaming on your tablet and bloomberg. Com. Day one for sprints new ceo named days ago. The new leadership comes after the network decided not to pursue tmobile. With me to discuss where sprint heads from here is the former president of sprints wholesale business, now the ceo of Patterson Advisory Group<\/a>. Also with us is john butler. Jim, let me start with you since you are an industry insider, as is john, by the way. You are less than impressed with mmarcelo . I think he has a Good Entrepreneurial<\/a> background. Did a lot of things to improve the companys ability. The most important thing, he finished up transforming this network. Marcelo will be a good person to bring in at this point to take sprint to the next level. Skepticalht you were that he has the right skill sets coming from bright star to be able to lead sprint. What is important to understand is not necessarily the company that he worked for, but the background that he brings to the table. He is a nononsense guy. He has got a lot of use and they he has got a lot of youth and vigor. He does not have a lot of the Telecom Services<\/a> providers have brought to the table thus far. He has got to tackle churn and retention, thats the number one priority at this point. Would you agree, john . I would. Sprint has been rebuilding their network over the last couple years. They have what they call on terry churn they have what they call voluntary churn. They knew when they upgrade to the networks they would lose subscribers due to network disruptions. That is largely behind them. They have a great asset to leverage. It does from a technological challenge, upgrading the network, to a marketing challenge. I think the transition from hesse to claure might be a very good one. Marcelo claure built bright start from zero to 10. 5 billion in revenue. Cannot argue with that. Business strong acumen and an entrepreneurial streak. For sprint to get off the mat, they need a little bit of that. They need the entrepreneurial energy. You think mafiosi saun san ld think masu ande is very tacky lading handson. He did the same thing with softbank in japan. They want from being a small candidate to vying with the big guys. Partnership here as a very clear one, i do not think any decisions are going to be made in a vacuum. Instead of one or two players in telecoms, you have three and four. Are we going to see a switc h . L, theprepaid reatai switch has occurred. As of june, tmobile has more prepaid retail subscribers than sprint, doing business under boost and virgin mobile. Ohn legere made a statement saying he plans on overtaking sprint and postpaid retail as well, that is a bigger challenge. Over the past year, tmobile has a raised 4 million of the gap, the ability to raise another 5 is not as big as you think. What is going to be the killer for tmobile . Killer . In terms of winning, how is legere going to win. Tmobile from a noname, nothing carrier to a cool carrier. They have gone from nothing to hot pink, which is their corporate color. Say killer, doesnt have to be a killer iphone plan . It is all about branding. He is brilliant at that. He really has turned tmobile into hot pink. He has gotten out there with aggressive pricing. It has resonated with consumers. Addsre not their net have gone from negative to positive. Ison a final note, claure not wellknown in the telecoms world. Does that work against him . To behink it is going important. Outside of fixing some of the price this advantage is he has on a few plans, the next most important thing for him is to really introduce himself to parts of the industry where he is not as wellknown. He has got to worry about getting connected and buildings. He has got to build a very tight partnership with other in the space. Very quickly. There are very good relationships with those companies, with sprint, but they want to see marcelo. Thank you so much can the Jim Patterson<\/a> of the Patterson Advisory Group<\/a> and also to john butler, telecoms analyst at bloomberg intelligence. Priceline profit topped estimates. Big moves to expand abroad. Forecasts are falling short. The pgay mcilroy won championships yesterday. Many are wondering, is it move over, tiger woods and bring in rory mcilroy . Priceline reported earnings this morning. Asfit topped estimates International Bookings<\/a> expanded. Americas biggest Online Travel<\/a> agent has been making moves internationally. Lastly, priceline announced a 500 Million Investment<\/a> in a chinese company. Us now with more. Everyone wants to get into china, why priceline . China priceline is the biggest Online Travel<\/a> company in the u. S. Looking to boost its presence outside the u. S. China is the Fastest Growing<\/a> travel industry, travel market, by far. Two years ago, the chinese travelers passed american and european counterparts to become the top spending travelers in the world. Chinese tourists spent with hundred 29 billion in 2013. Americans and germans, 86 billion. Not only are the chinese spending more, they are traveling more. That will double. By 2030, chinese travelers will make up 30 of global tourists. In major cities. When we were in hong kong, they were traveling to macau. Disposable income has risen. These restrictions are easing. It is becoming more and more popular to book independent trips. Young travelers are not just hopping on a bus like their parents or grandparents, which is huge for priceline. Their booking their own hotels. Would also they spending money on . Luxury goods. They have tons of luxury goods in china but it is less expensive outside of the country. 60 of their luxury spending is done outside of china. They say shopping is very important when they are traveling. All you go is go to 5th avenue, full of chinese tourists. Away from the opening bell. Top 10 traits you do not want to miss, keep it here on in the loop. Welcome back, you are in the loop. Are,nutes past the bloomberg is on the markets. Here is the latest on futures in the final minutes before the opening bell. Equity futures higher given easing tensions on ukraine. Keeping an ion what is happening in iraq. A headline on the corporate the offer is a 29 premium. We will watch how the stocks trade on that. On the markets again in 30 minutes lets count down again to the opening with the top 10. Olivia sterns and julie hyman stay with me. Lets start with number 10, tesla. Charge in the a premarket. Che upgraded deuts shares from hold to buy,. The 12 month price target is 310 per share. Ceo announcings that he will retire in may. He has been with conagra since 2005 and will participate in the Succession Process<\/a> before stepping down. It was under his tenure that conagra broke into the largest private food label earlier this year. Aramark, sticking with food. Shares popping in the premarket. Soared aster profit it posted higher sales. Aramark raised its earnings outlook range. Shares of pepsico, the beverage and snack giant, upgraded to buy from neutral at ubs. Expecting earnings to continue to beat estimates. Zillow, shares falling in the premarket. Ws purchase of trulia may not be a sure winner, shares might be overpriced. More than 900 authors have united in solidarity against the ecommerce giant. To one of them earlier. Amazon is fighting back with its own pr campaign in response to a battle that has amazon blocking or delaying sales of Hachette Books<\/a> allow negotiating a new Distribution Deal<\/a> with the publisher. Now, it is also blocking preorders of disney movies. Captain America Peter<\/a> it is like the music business. You did have the valuing of music. He made it cheaper for people to buy. In many cases, they ended up getting it for nothing. That the quality of music has gone down, to some degree. The artists because we are not listening to the alternative music that you do. Areou could argue that, you not getting as many it is not as lucrative. It is not in the authors best interest. Wewe could talk more but have to move on. Blackstone group, the private equity firm, in talks to buy shells stake in a shale gas stake in louisiana, 1. 2 bil lion for the half interest in the formation. Fda approval for its inhaled insulin treatment weeks ago. Shares soared 30 . Dean foods. Withdrew its earnings forecast, saying it is operating in the mystical environment ever. The store we have been following, Kinder Morgan<\/a>. Kinder consolidating his empire. Acquirings of deals, Kinder Morgan<\/a> management, el about 44 and, billion dollars. Is from wellsn chr fargo securities. He says if you are scared in these markets, you have got to stay green, hold more cash. Safe arent a lot of havens. How dull is that . Our issue, when we look at the more traditional risk aversion assets, they are now holding up very well. Theres no place to hide. Youre not getting great yields. Ultimately, theres only one place to go, cash. What areou say cash, you talking about exactly . Cold, hard cash . Dated do not mean short bills that people can refer to, you mean like putting money under your mattress . Like a grandma going to the bank and earning 0. 1 in a savings account. Shortterm investments, yes. We have nothing else to talk about. What portion of your portfolio would you put in cash . I am not recommending cash, per se, but when people ask how do you protect your portfolio, cash is one of the few places you can do it. We do like the equity markets. We are for a balance. We think the underlying fundamentals are still strong. We will be playing offensive, not defensive. Stocks that yield nice multiples . Large cap industrials. As a sector, youre not that interested in it. We track the performance year to date, underperforming the s p yeartodate. When faced with few options to find yields, while and your when to spain for 2. 7 and gees like boeing are paying out dividend yields of 3. 7 . Space is not too hot, not for cold, a lower for longer environment. Industrials are fighting headwinds. Thumbnails are just ok. The dollar is starting to go back up. Although they have underperformed, they are starting to roll over and you are starting to see investors get more to the short side. Are you bearish on the economy . Not at all. As we look across the marketplace, the economy is improving. The finals for the equity market are improving. You do not believe it . I do believe that. Sounds like you think it is going to be moderate growth, reits versus industrials. , as you look across the globe it is kind of a mix. Are more than domestic play. A domestic market is in a better position. What if rates go up . It depends on the speed and 92. If it is a slow grind up, i think they perform pretty well. If it is a sharp rise, they will have a difficult time. I dont think anyone is expecting angel up in rates. A jolt up in rates. One analyst saying he does not know what it would take for rates to go about 3 . It is difficult when you have the tenure at the ten year at 3. 25 . Looking fore not stocks that benefit from a high growth environment, youre looking at small cap. More whenup things are accelerating. Small caps are priced at a higher price rate. They are priced more. Coming into the year, we were negative on small caps. There has been a big correction. It is the largest correction we have seasons 1998, when people only one admitted cap. With that correction, there is a lot more opportunity. We think there is good growth opportunities. With a short term correction, we good you have some pretty upside to participate. Why the Health Care Sector<\/a> . Its all such a big runup thanks to obamacare. Run down,e seen a big they bounced a little but. Longerterm growth opportunities. Activity will be there. It is a good riskreward. Director of discipline portfolio strategies at wells fargo securities. I will remember that. Hold your cash. Speaking about cash, a lot of dough. Buzzfeed receiving a lot of cash sayingdreessen horowitz, they are doing to mediate what netflix did to the movie industry. Stay in the loop. Drama in the darkness at the pga championship. Became the first golfer in six years to win backtoback major titles. A oneshot lead before coming back to win in louisville, kentucky. The tournament ended in the dark after a rain delay. Phil mickelson finished second. Congratulations to mcilroy. The ncaa plans to appeal a federal court ruling that says student athletes can seek a share of the roughly 800 million in annual broadcast revenue that they help to bring in. For more, we are joined by bloomberg news. This is a controversial decision no matter where you stand. The judge said College Athletes<\/a> can be paid. But yes. It is difficult to say what this means. It was a ruling that was strong on reprimand. It shot down all of the ncaas major defenses in terms of protecting amateurism and protecting competitive balance. The fact that fans will not watch games if players are paid. Why wont fans watch games . The judge ruled they would. The ncaa is saying that part of why you and i watch College Football<\/a> is because they are not paid and do it for the love of the sport. The judge said that is bogus. It was not strong on change. That is why there is confusion about what this means. A lot of the changes that she said had to be unlimited, things like raising the cost of a scholarship to meet the cost of attendance, i think that conferences were already going to do. She talks about opening the market partially on images, name, likeness, that kind of revenue. That changes things a little bit but is stuff that a lot of congresses were thinking about. She shot down the ncaas defenses without instituting a lot of change. The ncaa is going to appeal. Who knows how long it is going to take. If they are being honest with themselves, they are not too upset with what happened. Why . They lose a lot of defenses but it was a very narrow ruling. It applies to licensing only. There are lawsuits coming down the pipe that this could have major ramifications for, one brought by one of the preeminent sports labor lawyers. Marketooking to open the entirely and not just in this narrow scope of licensing. Theres a chance that this ruling has run applications for that has ramifications for that in terms of a precedent. I dont think major changes will happen immediately. Story,king about another did you read the headline over the weekend about tony stewart . I did, i saw the video. Daily news put it on their front page. As more details come out, the more controversial this crash the comes becomes. It is a nightmare. Tony stewart, who has a temper in history, you give him the benefit of the doubt but it looks bad from all angles. Certainly, questions for everybody. Questions for tony about what happened, questions for race officials. You wish you could ask the driver why he stepped out onto that track when cars were going by. A nightmare. He got hit by the car tony tony did not race yesterday, a prudent decision. We will see with the aftermath is. Is anyone saying criminal investigation at this point . I do not think officials are talking about it yet. Im not sure if it is going to get to that point, it sounds like it could. They are going so fast, it is dark, the driver was in black. Who knows what tony saul, if he even saw anything. My understanding is that they were fighting ahead of time. They had crashed a few laps earlier, i think. Warder had gotten out of his car, you have seen it before in races. They get out of their cars. Tony stewart through his helmet at a car not so long ago. Did he get reprimanded . They get out of their cars a lot. Being hotheaded in auto racing is not unusual. Tony kind of invented it. We will see what happens. Certainly a pretty horrible thing to have that happen. A final note, what about rory mcilroy . Is he going to unseat tiger woods . Not yet. Five days ago on wednesday, there were reporters outside tiger woods parking spot waiting for him to arrive. There was a live feed of him on the driving range. Before it was mcilroys apartment, it was tiger woods tournament. The excitement about rory mcilroy was because tiger was not there. An exciting end of the year but he has a wild to go before he reaches the height of where tiger woods is. There needs to be a lot more heat around rory mcilroy. Fakes to see you. Our sports reporter. Heres a look at the other Top Technology<\/a> stories. Amazon reporting a tactic used in recent disputes with hachette studio warner bros. To gain control over pricing online. The company has blocked preorders of disneys movie captain america and other titles. Signaling that the Worlds Largest<\/a> retailer is willing to keep certain items from consumers for pressure on their vendors. Buzzfte does feed eed received 50 million from andreessen horowitz. Buzzfeed atues 850 million. Lions gate entertainment want a court order blocking websites from distributing and allegedly stolen copy of the expendables three. The film was viewed by more than 2 Million People<\/a> ahead of its scheduled release friday after a digital file will stolen and uploaded to websites. Catch all the latest in technology and media every weekday at 1 00 and 6 00 p. M. Eastern on bloomberg west. Ebola spreading across west africa. Can an experimental new treatment help stop the virus deadliest outbreak on record . We hear from the president of the world bank, next. Time for the global outlook. Turkeys Prime Minister<\/a> erdogan has won the countrys first direct president ial election. Has been in power for 11 years, the victory gives him another five. Ebola spreading and nine jerry spreading in nigeria. 10 confirmed cases and two patients had died. The outbreak is the worst ever, almost 1000 have died from the virus. Regarding the ebola virus, charlie rose spoke to the president of the world bank, jim yong kim. The organization has latched 220 million to the fight against ebola. Here is what dr. Kim said he hopes to become bush. Accomplish. To ive been talking with director general of the world health organization. The hope is the worst part of the crisis can be brought under control in a week. We cant distinguish it and we can extinguish it in three months to six months. The 200 million, 75 million will go to immediate needs. One thing she told me, many of the Health Workers<\/a> are leaving. They are not getting paid very well. That governments do not have funds. This immediate infusion of cash from the world bank is going to help with the immediate response. What she also told me was that on the ground they need everything. They need mobile laboratories, mobile clinics. They need protective gear. There has been a lot of talk of helping. What we hear from her and from others on the ground is that countries that have pledged to help need to step up quickly. Remember, this is something we can get under control. His is not an airborne Infectious Disease<\/a> like sars. We have to move quickly. If we do, we think we can get it under control. This is the worst example of ebola in history. It is. About 1000 cases from one country to another. Worst epidemic in history. As an Infectious Disease<\/a> doctor, i want to stress, i have dealt with tuberculosis, and airborne Infectious Disease<\/a>. I was helping to run a transition in 2003 at the end of the sars epidemic. This is different. If we move quickly and get all the technology, all the Supportive Care<\/a> and medical doctors and nurses, if we get them in place, we can shut this down. But we have to move despite the fact that there is all this fear. Theres a tremendous amount of fear. The fear cannot slow us down. We know what to do if we have the equipment, we can make progress and quick progress. You think the organization, the collaboration and coordination including the world bank is in place to be able to move quickly . Everyone has to understand that if these leaders, you have three leaders of these countries who are wellknown for being champions and fighting corruption, champions of good governance. Leadership in these countries. Everyone have to work with the world health organization. During the sars epidemic, the a Critical Role<\/a>. They are ready and have to play a Critical Role<\/a> this time as well. Margaret chan is ready to do it. She was in charge of the sars response in hong kong. She knows what to do. Theres a little bit too much freelancing. We want everyone to follow the lead of heads of state. The heads of state are following the lead of their chan dr. Chan. That does it for in the loop, Market Makers<\/a> is next. 56 pounds the, bloomberg is on the markets. I am olivia sterns. 30 minutes into the trading day. Overall, equities on the rise amid optimism that tension between russia and ukraine could ease. Optimism that american air will push back militants in iraq. This comes after a strong rally friday. Lets show you but is having on the treasury markets. Selling off a little bit with yields ever so slightly higher. Tenyear trading at 2. 43 approaching the lowest level in nearly a year. Is easy to think treasuries are overpriced if you look at yields historically. They look cheap if you compare them to their peers across the pond. And have a bonds look at why some of the biggest bond buyers think u. S. Debt yields could go lower. Help me understand. Conventional wisdom is that if the fed is tightening, yields could go up. Why are people betting they could go lower . You have Central Banks<\/a> around the world that are trying to boost growth through similar kinds of stimulus measures. You have the European Central<\/a> bank, you have china, they have been increasing stimulus. There isink about it, a lot of extra money that is being created for these programs. People need to find extra money people need to find somewhere to put that cash. In germany, the 10 year yield reached the lowest level ever. And the twoyear is in negative territory. Paying for the privilege of leading the germans money. On that basis, the u. S. Does not look so bad. U. S. Treasuries at 2. 4 versus 1 bund, ion the German Growth<\/a> is slowing. Growth is not accelerating as much in the euro region, in the u. S. , there are signs it is growing. At the highestl levels relative to german and spanish debt since 2007. Help us understand how it is possible for italy with a mountain of legacy debt and in its third recession since 2008, the tenure is around two point 7 . That is comparable to u. S. Treasuries. How is it possible that investors are treating italy and the u. S. As if they are in the same boat . Chasing the stimulus programs. Right now there is an arbitrage of centralbank policies. Investors are saying where can we get dependable returns . Most is being backed the by a central bank. That is the concern, people feel this is an artificial rally. The longer the artificiality goes on, the longer that the disregard of what backing is behind the loans is going to create problems. F we are expecting qe out o mario draghi. Is there anything that could cause yields to rise significantly . Potentially, inflation. There are really not signs of inflation accelerating significantly. Some people are saying the gauge is right now that the u. S. Is using for inflation may not adequately account for price rises in other areas. Frankly, that asset the rise in asset prices should not be considered separate from Wage Inflation<\/a> and other types of inflation. That is a part of the picture you need to look at. Maybe we need new ways to measure it. We will be on the markets again in 30 minutes. Market makers is up next. And live from bloomberg headquarters in new york, this with erik makers, schatzker and stephanie ruhle. He is promising a new turkey. Amazon strikes back. It is getting hammered by authors for blocking presale orders of books. They are trying to persuade readers to join the cause. Sprints new ceo takes over. 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