Transcripts For BLOOMBERG In The Loop With Betty Liu 2014100

The Dow Jones Industrial average up 274 points yesterday. Investors rushed into the market after the fed hinted that Interest Rates will stay near zero. U. S. Economic growth might be lower than expected. Maybe they will keep rates at 04 longer. Zero four longer. Ceo has been cutting costs. He has been under pressure from activist investors. Investors dont appear to like the shakeup at cap peered shares falling as much as 9 after the company replaced of the ceo. The stock more than doubled during his tenure. He will be replaced by the president of gaps growth, innovation and digital unit. Work zuckerberg is calling Internet Access a basic human right. Hes in india where he will be with the prime minister. One billion people in india are unable to get online. Deploying traditional Networking Infrastructure to connect Rural Communities with low population density is not really costeffective. Which is why it has not been done yet. We are working to develop new technologies that can be more efficient for doing this and help connect these people. Those hackers who broke into jpmorgan have been linked to a possible attack on more than one dozen other financial firms. Jpmorgan had gigabytes of data stolen by hackers in an attack that last months. The stolen files were linked to a russian data center. They also try to break into citigroup, hsbc and e trade and they tried to gain access to adt. E trade was also targeted last year. Continue to cover this story for you as its a big one. The family of that ebola patient questionsn dallas has about his hospital care. Thomas eric duncan died nine thatafter being admitted he became infected with ebola in liberia and flew to the u. S. As family wants to know why a hospital emergency room released him after his first visit. Europe, german bond yields are falling to record lows. The country is on the edge of recession as exports sagged ncellor merkels policies what an incredible day in the markets yesterday. , europeare seeing today is panning out to be amazing as well. Caps on yields in germany come down from around 2 on the tenure to below 0. 9 . Between to make a great headline. When you look at the yield and inflation come inflation is just get it will take up when you look at that 0. 9 . Put him expect to hear what can we expect to hear from mario draghi . The dynamics of the conversation definitely the Federal Reserve minutes in the comment have the strength of the u. S. Dollar. And hasbro to get a narrow down they have been desperate to get the euro down. The whispers were that we would see a rate increase in november, but no longer. It seemed to be pushed back a little bit. We are looking at the bank of england. Said we arehas getting close to the point where we have to normalize Interest Rate policy. This. Think about the Federal Reserve is concerned about a slowdown in europe. You have to think about this. We dont get the breakdown of how they voted today. Its the big story. The bond market. Thanks very much for that. Onto Corporate News pepsico posted thirdquarter profit that beat analyst estimates. The company also boosted its forecast for the full year on increased product pricing. The chief markets correspondent, scarlet fu, has a closer look at the chances of pepsi splitting he has been pushing hard to try to split this company up saying they need to be more profitable and the company has said to give us time. We are going to make this company more profitable and they turned in another quarter where they have increased profitability, boosted pricing and seem to be putting some distance between them and this whole notion of splitting the company. The beat analyst estimates. Only 76 of Companies Ever do. That, theyme they do put to rest some of the concerns. If this comes up every quarterly conference call, there is not a lot of ground for it now because the stock has done. He well. Well. Done very for Cocacola Company 50 of total return. 15 of total return. She has pushed back with her campaign. 5 billion for the next five years. Why is pepsico doing so much better than cocacola . ,e show pictures of the soda but it has a much bigger business and snacks. Its the biggest in the world. I talked to the cfo this morning and they say, look, the ability to have snacks and and going to the is assortmenth th of france and merchandisers who come in and put the products on the shelves is very important. This assortment of brands. , thoseter of the aisle are depressed now in retail. Pepsi can come in and offer all of these products that could help bring people into the store and providing a lot of the labor. That is good for the margins for retailers. Retailers are responding. That makes the case for why pepsi might want to stay large. A big pepsi has more leverage against suppliers and commodity sourcing. Really playoff of those different strengths. Foranagement always argues skill. Investors argue they want to unlock shareholder value. Investors come activist investors win out in the end. What kind of hold do you think nelson has here . What kind of hold it does he have . He is been at this for a year and a half now. Has he gained any support . One of those things that is easy to forget here is he had a no lose proposition from the beginning. He came in and bought a lot of shares and started putting pressure on the company. The shares have gone up and the company is performing better. Whether hes put the company or not, you could argue that was a high, looking for something fine witheing that proposition. Whether they split or not, he has had an impact here. Theres a question about whether investors or may be hotter on it before and probably cooling at this point. They see the stocks performance as the company doesnt stumble and you have that avenue to fall back on. Mucharlet fu, thanks very for joining us. Speaking of activist investors, carl icahn is at it again. He will send a letter to tim cook today and it will be interesting. He previously went to battle with apple over its cash. He disclosed his taken apple youre go, shares of the company are up over 50 . Trish regan speaks with carl icahn himself today at three 3 00 p. M. Stern eastern. Airports across the country plan to step up screening for ebola. What could this mean for your wait time or cost . What could this mean for your safety . Major u. S. Airports are stepping up screening for travelers as they try to keep patients with ebola out of the country and stop the spread of the disease. Obviously. Ll proof, shall be holidays at Newark International airport with details a. Shelby holliday is at Newark International airport. Ime have been learning here at newark, one of five airports implementing enhanced screening procedures for travelers who have had possible contact with ebola. There are only 150 passengers traveling to the u. S. From three west african countries that have experienced the evil outbreak. Thats evil outbreak. Ebola outbreak. When they flying to these airports, this is starting at jfk on saturday and will be rolled out to do work, liberty, atlanta heart field, washington. Ulles and chicago ohare asked for their Contact Information so the cdc can keep in touch with them as these travelers are in the United States. Its going to affect every international traveler. People are worried about delays and how long this will take and just going through customs. They will be looking for these passengers based on what they have in their passports. It could mean extra time. The government is saying this is just another layer of security. Called it aama protest his betters approach. People are worried this could cost millions of dollars and not yield any results. I wonder whats being done at the source. Whats going on in these west african nations when they are taking off . Good point. Nearly 4000 people have died of ebola. Minimizecant our risk to zero until this is actually addressed at the source in west africa. The World Bank Issued a dire warning saying that ebola could cost more than 30 billion by the end of next year if the disease spreads. John kerry has said that other nations need to step up, too. We need billions of dollars to be deployed in west africa for doctors and basic military supplies. Thanks very much. Just at the airports that we will feel the impacts of the ebolas care the airlines as well will see a ripple in the and the sites that partner with them. The ceo of travelocity joins us now. My pleasure to welcome you as a fellow big red alumni good to be here. Let me ask you what you think we will see as far as in effect on business from this ebola scare. We already have almost all the planes pretty full capacity. They are at full capacity. Its unlikely that we are going to see much in the near term. You have thousands of flights where the chances of someone coming from one of these countries affected his small. Its not like sars. The risk is lower. We have only one documented case here. Nearterm, i dont think there is going to be much affect. Spreads. S how it longerterm, it could be a big effect. This is a different kind of disease. It spreads differently and hasnt spread very far yet. Did we have increased security for sars . Not in the u. S. , but all over asia, yes. Everyone was Wearing Masks and people were traveling. A different kind of weight the disease spreads. Way the disease spreads. Its a different kind of disease. It has not spread outside of africa except for limited cases. Wait times coming back into the country happened dramatically decreased now. I wonder about pricing. All of this added security someone has to pay for it. Sure, someone has to pay for it. Right now, its concentrated on these few hub cities and its just temperature checks. How doravel sites they deal with price increases and price decreases . Do they try to smooth out the peaks or do they just give it to you as the Airlines Give it to them . Most travel sites dont mark up or down airline tickets. They do that with hotels. Right now, the airlines are pretty full. They are just passing along the pricing. Those Airline Sites are really good for finding the lowest fare. Have great lowfare engines, but they dont change the price. Highcapacity might be good for airlines, but horrible for passengers. Ive never had such an uncomfortable time on planes and the service has never been so bad. Im on the road 150 days a year. If service is getting better, but it is difficult to find a seat. Every single u. S. Airline went bankrupt. The old model did not work of having too much capacity and the deregulation of price. They are making money again. If they make more money, they will put some of it into service. We are going to be talking about an exciting travel business you are starting with watson, the computer from ibm. Terry jones will stick with us. You are watching in the loop live on Bloomberg Television and streaming on your mobile devices. Im matt miller come in for betty liu. Morgan stanley bankers are poised for the biggest bonus bonds among wall street firms. Of the five biggest banks, they saw the biggest revenue increased this year. Bond traders at j. P. Morgan chase and citi are not faring as well. Pool lego bonus. S ending its 50 Year Contract they are protesting the oil giants plan to drill in the arctic. Calledeated this video everything is not awesome. It attracted 6 million views. Shane smith says his online news outlet plans to stay independent and will not seek to buyer in the near terms. Here is what he says his next big thing in media is. The holy grail is mobile. It is where everybodys skill is coming from, but very difficult to monetize right now and very difficult for our heads to get around. That summit continues today and our own Stephanie Ruhle and emily chang will be broadcasting live from San Francisco later on. Go online to see that. It is 26 minutes past the art. Bloomberg television is on the markets. Futures are down right now. After a tremendous rally yesterday. The s p futures down. 3 . The index closed up 1. 7 yesterday. These are huge green arrows yesterday. You are seeing little red once this morning. We are on the markets again in 30 minutes. Us. Y jones is back with i want to talk about your new company. There is some involvement with the computer that managed to beat everybody on jeopardy. Watson. A it won the jeopardy game couple of years ago and then moved into medicine and has been doing Amazing Things helping doctors diagnose diseases. We are one of the First Companies to launch a new Company Built entirely on top of watson. I built travelocity to do bookings. I was chairman of kayak where we did search and mobile. This will area of travel called planning and dreaming has not been automated. We taken the booking data and facebook in a, twitter data, deals data, location data from a data and put it together into and let you interface that with natural language. Know where i want to travel and how i want to travel . It will eventually. Our first customer is the visitors bureau. By their language, we can tell what they want to do. I would like to go on a guys trip to austin this fall. It could parse that language and know what that means and instead of a set of search links, you get a sense of curated recommendations. It austin formula one, ut , you are going to see some insights exposed by watson. Sit on turned 15 for the best fan action. Its not going to rain. Austin and they are finding out things about austin they never knew. Intoke to provide insights service. Will power hotels, power airlines and cities and states in getting this right by training it and making this huge corpus of data. What about the enduser having access to wayblazer . They will have access on other sites. We want to build it slowly. You have to train watson. It learns like we learn and it takes a little while to do that. We think it cant learn about other cities much faster. Can learn about other cities much faster. I believe watson is learning spanish. Labs working on watson. Very cool stuff. Terry jones, good to meet you. We have breaking news on initial jobless claims. Olivia sterns joins us with this. The numbers are better than forecast. They fell to 287,000 last week to that means it was the fourth consecutive week where the jobless claims number came in below 300,000. The last time that happened is february 2006. Employers appearing to hold onto workers as the economy improves. This comes after we had the strong nonfarm payroll numbers. A lot of economists would point you to other numbers suggesting pockets of weakness in the economy. The longterm unemployed number fell 11. 8 . But at least for this warning, thursday morning, a little bit of bright news on the labor market. Jobless things for the week coming in better than expected. Lowest reading since february 2006 on a monthly basis. All right, olivia, thank you so much for that. Still there, a subject near and dear to my heart. Tesla will unveil its mysterious d tonight. What will elon musks big surprise be . And will the issues plaguing fords spill over to gm have they already . State with us in the loop. Be sure the cap Bloomberg Televisions special coverage of vanity fairs new establishment summit. Emily chang and Stephanie Ruhle be onsite site with a great lineup of guest. Discovery communications ceo, the messagelabs ceo the nest labs ceo, those interviews happening at 6 00 p. M. This evening. Tesla motors will put all the rumors to rest. After his tweet heard round the world, saying it was time to unveil the d and something else, ceo elon musk is set to unveil new technology that helps drivers that prevents drivers from moving off the road. Joining us with a review is an Auto Industry consultant and bloomberg contributor. Although it sounded a bit sensationalistic in the intro, that is exactly what elon musk wants. Theou are referring to autonomous drive feature or just the fact that we build this up so much, the tweet heard round the world, how important this new model d is going to be. Is it really that big of a deal . You are absolutely right. This is exactly what elon musk has been able to do, tesla generates huge excitement outside the traditional car audiences. One of the things he is doing is not have the traditional model your updates. Instead, just push new content to consumers as it becomes available. Which weon to this d, are still not 100 certain what it is, they are pushing new features to the hightech ipadl ike console have in the center of the car, new gps features, new air suspension features. They are pushing it to consumers as it becomes available. I think people are just seeing that tesla is approaching the car industry in a totally different way and, that is building the brand and getting people excited. D will stand for disappointing if it just means itll power, allwheeldrive. I kind of want to see any model. That is the problem with tesla, they want to bring Silicon Valley excitement to the car industry but the car with longs stuck development times. Theres only so much they can push out at a given time. All eyes are really on model 3, the next generation that is going to improve teslas scale, which is what they have to do as a car company to survive. In the meantime, they will try to get as much juice as they can from these smaller, incremental updates. Can you tell everybody the truth about selfdriving cars, that they are not really here yet . It seems like people think that automated christian troll automated Cruise Control is the endall. There has been a lot of attention around self driving cars and they are symbolically important because they represent the angle and goal of trends in the automotive space. Just because they are symbolically powerful doesnt mean they are round the corner. You see a lot of things like tesla is talking about, advanced driver assistance and for the foreseeable future. Before be quite a while we see anything that really resembles what people think of when they think of a self driving are fully economist car. Were fully autonomous car. The was coming back from fort investor meeting in detroit and the analysts at Dow Jones Industrial<\/a> average up 274 points yesterday. Investors rushed into the market after the fed hinted that Interest Rates<\/a> will stay near zero. U. S. Economic growth might be lower than expected. Maybe they will keep rates at 04 longer. Zero four longer. Ceo has been cutting costs. He has been under pressure from activist investors. Investors dont appear to like the shakeup at cap peered shares falling as much as 9 after the company replaced of the ceo. The stock more than doubled during his tenure. He will be replaced by the president of gaps growth, innovation and digital unit. Work zuckerberg is calling Internet Access<\/a> a basic human right. Hes in india where he will be with the prime minister. One billion people in india are unable to get online. Deploying traditional Networking Infrastructure<\/a> to connect Rural Communities<\/a> with low population density is not really costeffective. Which is why it has not been done yet. We are working to develop new technologies that can be more efficient for doing this and help connect these people. Those hackers who broke into jpmorgan have been linked to a possible attack on more than one dozen other financial firms. Jpmorgan had gigabytes of data stolen by hackers in an attack that last months. The stolen files were linked to a russian data center. They also try to break into citigroup, hsbc and e trade and they tried to gain access to adt. E trade was also targeted last year. Continue to cover this story for you as its a big one. The family of that ebola patient questionsn dallas has about his hospital care. Thomas eric duncan died nine thatafter being admitted he became infected with ebola in liberia and flew to the u. S. As family wants to know why a hospital emergency room released him after his first visit. Europe, german bond yields are falling to record lows. The country is on the edge of recession as exports sagged ncellor merkels policies what an incredible day in the markets yesterday. , europeare seeing today is panning out to be amazing as well. Caps on yields in germany come down from around 2 on the tenure to below 0. 9 . Between to make a great headline. When you look at the yield and inflation come inflation is just get it will take up when you look at that 0. 9 . Put him expect to hear what can we expect to hear from mario draghi . The dynamics of the conversation definitely the Federal Reserve<\/a> minutes in the comment have the strength of the u. S. Dollar. And hasbro to get a narrow down they have been desperate to get the euro down. The whispers were that we would see a rate increase in november, but no longer. It seemed to be pushed back a little bit. We are looking at the bank of england. Said we arehas getting close to the point where we have to normalize Interest Rate<\/a> policy. This. Think about the Federal Reserve<\/a> is concerned about a slowdown in europe. You have to think about this. We dont get the breakdown of how they voted today. Its the big story. The bond market. Thanks very much for that. Onto Corporate News<\/a> pepsico posted thirdquarter profit that beat analyst estimates. The company also boosted its forecast for the full year on increased product pricing. The chief markets correspondent, scarlet fu, has a closer look at the chances of pepsi splitting he has been pushing hard to try to split this company up saying they need to be more profitable and the company has said to give us time. We are going to make this company more profitable and they turned in another quarter where they have increased profitability, boosted pricing and seem to be putting some distance between them and this whole notion of splitting the company. The beat analyst estimates. Only 76 of Companies Ever<\/a> do. That, theyme they do put to rest some of the concerns. If this comes up every quarterly conference call, there is not a lot of ground for it now because the stock has done. He well. Well. Done very for Cocacola Company<\/a> 50 of total return. 15 of total return. She has pushed back with her campaign. 5 billion for the next five years. Why is pepsico doing so much better than cocacola . ,e show pictures of the soda but it has a much bigger business and snacks. Its the biggest in the world. I talked to the cfo this morning and they say, look, the ability to have snacks and and going to the is assortmenth th of france and merchandisers who come in and put the products on the shelves is very important. This assortment of brands. , thoseter of the aisle are depressed now in retail. Pepsi can come in and offer all of these products that could help bring people into the store and providing a lot of the labor. That is good for the margins for retailers. Retailers are responding. That makes the case for why pepsi might want to stay large. A big pepsi has more leverage against suppliers and commodity sourcing. Really playoff of those different strengths. Foranagement always argues skill. Investors argue they want to unlock shareholder value. Investors come activist investors win out in the end. What kind of hold do you think nelson has here . What kind of hold it does he have . He is been at this for a year and a half now. Has he gained any support . One of those things that is easy to forget here is he had a no lose proposition from the beginning. He came in and bought a lot of shares and started putting pressure on the company. The shares have gone up and the company is performing better. Whether hes put the company or not, you could argue that was a high, looking for something fine witheing that proposition. Whether they split or not, he has had an impact here. Theres a question about whether investors or may be hotter on it before and probably cooling at this point. They see the stocks performance as the company doesnt stumble and you have that avenue to fall back on. Mucharlet fu, thanks very for joining us. Speaking of activist investors, carl icahn is at it again. He will send a letter to tim cook today and it will be interesting. He previously went to battle with apple over its cash. He disclosed his taken apple youre go, shares of the company are up over 50 . Trish regan speaks with carl icahn himself today at three 3 00 p. M. Stern eastern. Airports across the country plan to step up screening for ebola. What could this mean for your wait time or cost . What could this mean for your safety . Major u. S. Airports are stepping up screening for travelers as they try to keep patients with ebola out of the country and stop the spread of the disease. Obviously. Ll proof, shall be holidays at Newark International<\/a> airport with details a. Shelby holliday is at Newark International<\/a> airport. Ime have been learning here at newark, one of five airports implementing enhanced screening procedures for travelers who have had possible contact with ebola. There are only 150 passengers traveling to the u. S. From three west african countries that have experienced the evil outbreak. Thats evil outbreak. Ebola outbreak. When they flying to these airports, this is starting at jfk on saturday and will be rolled out to do work, liberty, atlanta heart field, washington. Ulles and chicago ohare asked for their Contact Information<\/a> so the cdc can keep in touch with them as these travelers are in the United States<\/a>. Its going to affect every international traveler. People are worried about delays and how long this will take and just going through customs. They will be looking for these passengers based on what they have in their passports. It could mean extra time. The government is saying this is just another layer of security. Called it aama protest his betters approach. People are worried this could cost millions of dollars and not yield any results. I wonder whats being done at the source. Whats going on in these west african nations when they are taking off . Good point. Nearly 4000 people have died of ebola. Minimizecant our risk to zero until this is actually addressed at the source in west africa. The World Bank Issued<\/a> a dire warning saying that ebola could cost more than 30 billion by the end of next year if the disease spreads. John kerry has said that other nations need to step up, too. We need billions of dollars to be deployed in west africa for doctors and basic military supplies. Thanks very much. Just at the airports that we will feel the impacts of the ebolas care the airlines as well will see a ripple in the and the sites that partner with them. The ceo of travelocity joins us now. My pleasure to welcome you as a fellow big red alumni good to be here. Let me ask you what you think we will see as far as in effect on business from this ebola scare. We already have almost all the planes pretty full capacity. They are at full capacity. Its unlikely that we are going to see much in the near term. You have thousands of flights where the chances of someone coming from one of these countries affected his small. Its not like sars. The risk is lower. We have only one documented case here. Nearterm, i dont think there is going to be much affect. Spreads. S how it longerterm, it could be a big effect. This is a different kind of disease. It spreads differently and hasnt spread very far yet. Did we have increased security for sars . Not in the u. S. , but all over asia, yes. Everyone was Wearing Masks<\/a> and people were traveling. A different kind of weight the disease spreads. Way the disease spreads. Its a different kind of disease. It has not spread outside of africa except for limited cases. Wait times coming back into the country happened dramatically decreased now. I wonder about pricing. All of this added security someone has to pay for it. Sure, someone has to pay for it. Right now, its concentrated on these few hub cities and its just temperature checks. How doravel sites they deal with price increases and price decreases . Do they try to smooth out the peaks or do they just give it to you as the Airlines Give<\/a> it to them . Most travel sites dont mark up or down airline tickets. They do that with hotels. Right now, the airlines are pretty full. They are just passing along the pricing. Those Airline Sites<\/a> are really good for finding the lowest fare. Have great lowfare engines, but they dont change the price. Highcapacity might be good for airlines, but horrible for passengers. Ive never had such an uncomfortable time on planes and the service has never been so bad. Im on the road 150 days a year. If service is getting better, but it is difficult to find a seat. Every single u. S. Airline went bankrupt. The old model did not work of having too much capacity and the deregulation of price. They are making money again. If they make more money, they will put some of it into service. We are going to be talking about an exciting travel business you are starting with watson, the computer from ibm. Terry jones will stick with us. You are watching in the loop live on Bloomberg Television<\/a> and streaming on your mobile devices. Im matt miller come in for betty liu. Morgan stanley bankers are poised for the biggest bonus bonds among wall street firms. Of the five biggest banks, they saw the biggest revenue increased this year. Bond traders at j. P. Morgan chase and citi are not faring as well. Pool lego bonus. S ending its 50 Year Contract<\/a> they are protesting the oil giants plan to drill in the arctic. Calledeated this video everything is not awesome. It attracted 6 million views. Shane smith says his online news outlet plans to stay independent and will not seek to buyer in the near terms. Here is what he says his next big thing in media is. The holy grail is mobile. It is where everybodys skill is coming from, but very difficult to monetize right now and very difficult for our heads to get around. That summit continues today and our own Stephanie Ruhle<\/a> and emily chang will be broadcasting live from San Francisco<\/a> later on. Go online to see that. It is 26 minutes past the art. Bloomberg television is on the markets. Futures are down right now. After a tremendous rally yesterday. The s p futures down. 3 . The index closed up 1. 7 yesterday. These are huge green arrows yesterday. You are seeing little red once this morning. We are on the markets again in 30 minutes. Us. Y jones is back with i want to talk about your new company. There is some involvement with the computer that managed to beat everybody on jeopardy. Watson. A it won the jeopardy game couple of years ago and then moved into medicine and has been doing Amazing Things<\/a> helping doctors diagnose diseases. We are one of the First Companies<\/a> to launch a new Company Built<\/a> entirely on top of watson. I built travelocity to do bookings. I was chairman of kayak where we did search and mobile. This will area of travel called planning and dreaming has not been automated. We taken the booking data and facebook in a, twitter data, deals data, location data from a data and put it together into and let you interface that with natural language. Know where i want to travel and how i want to travel . It will eventually. Our first customer is the visitors bureau. By their language, we can tell what they want to do. I would like to go on a guys trip to austin this fall. It could parse that language and know what that means and instead of a set of search links, you get a sense of curated recommendations. It austin formula one, ut , you are going to see some insights exposed by watson. Sit on turned 15 for the best fan action. Its not going to rain. Austin and they are finding out things about austin they never knew. Intoke to provide insights service. Will power hotels, power airlines and cities and states in getting this right by training it and making this huge corpus of data. What about the enduser having access to wayblazer . They will have access on other sites. We want to build it slowly. You have to train watson. It learns like we learn and it takes a little while to do that. We think it cant learn about other cities much faster. Can learn about other cities much faster. I believe watson is learning spanish. Labs working on watson. Very cool stuff. Terry jones, good to meet you. We have breaking news on initial jobless claims. Olivia sterns joins us with this. The numbers are better than forecast. They fell to 287,000 last week to that means it was the fourth consecutive week where the jobless claims number came in below 300,000. The last time that happened is february 2006. Employers appearing to hold onto workers as the economy improves. This comes after we had the strong nonfarm payroll numbers. A lot of economists would point you to other numbers suggesting pockets of weakness in the economy. The longterm unemployed number fell 11. 8 . But at least for this warning, thursday morning, a little bit of bright news on the labor market. Jobless things for the week coming in better than expected. Lowest reading since february 2006 on a monthly basis. All right, olivia, thank you so much for that. Still there, a subject near and dear to my heart. Tesla will unveil its mysterious d tonight. What will elon musks big surprise be . And will the issues plaguing fords spill over to gm have they already . State with us in the loop. Be sure the cap Bloomberg Television<\/a>s special coverage of vanity fairs new establishment summit. Emily chang and Stephanie Ruhle<\/a> be onsite site with a great lineup of guest. Discovery communications ceo, the messagelabs ceo the nest labs ceo, those interviews happening at 6 00 p. M. This evening. Tesla motors will put all the rumors to rest. After his tweet heard round the world, saying it was time to unveil the d and something else, ceo elon musk is set to unveil new technology that helps drivers that prevents drivers from moving off the road. Joining us with a review is an Auto Industry<\/a> consultant and bloomberg contributor. Although it sounded a bit sensationalistic in the intro, that is exactly what elon musk wants. Theou are referring to autonomous drive feature or just the fact that we build this up so much, the tweet heard round the world, how important this new model d is going to be. Is it really that big of a deal . You are absolutely right. This is exactly what elon musk has been able to do, tesla generates huge excitement outside the traditional car audiences. One of the things he is doing is not have the traditional model your updates. Instead, just push new content to consumers as it becomes available. Which weon to this d, are still not 100 certain what it is, they are pushing new features to the hightech ipadl ike console have in the center of the car, new gps features, new air suspension features. They are pushing it to consumers as it becomes available. I think people are just seeing that tesla is approaching the car industry in a totally different way and, that is building the brand and getting people excited. D will stand for disappointing if it just means itll power, allwheeldrive. I kind of want to see any model. That is the problem with tesla, they want to bring Silicon Valley<\/a> excitement to the car industry but the car with longs stuck development times. Theres only so much they can push out at a given time. All eyes are really on model 3, the next generation that is going to improve teslas scale, which is what they have to do as a car company to survive. In the meantime, they will try to get as much juice as they can from these smaller, incremental updates. Can you tell everybody the truth about selfdriving cars, that they are not really here yet . It seems like people think that automated christian troll automated Cruise Control<\/a> is the endall. There has been a lot of attention around self driving cars and they are symbolically important because they represent the angle and goal of trends in the automotive space. Just because they are symbolically powerful doesnt mean they are round the corner. You see a lot of things like tesla is talking about, advanced driver assistance and for the foreseeable future. Before be quite a while we see anything that really resembles what people think of when they think of a self driving are fully economist car. Were fully autonomous car. The was coming back from fort investor meeting in detroit and the analysts at Morgan Stanley<\/a> thinks that in five years we will see a little self around carbon fiber pot San Francisco<\/a>, that this is coming sooner than anyone expects. He has even protected the death of the Automotive Industry<\/a> predicted the death of the Automotive Industry<\/a>. It is easy to get excited. Bout the technology theres a sense of anticipation that the future is right around the corner. I need to be tempered with more rational analysis about what the Auto Industry<\/a> really is. None of these technology companies, from tesla to google to the smaller startups, are ready to achieve the kind of scale that the Auto Industry<\/a> has. It needs to be a meeting of the minds between the traditional car industry that is really unsure about some of the technology and where it is going and some of these tecch companis that are trying to push the technology to its conclusion as fast as possible. I think in the shortterm, what is most challenging and scary to automakers is not self driving allowbut these apps that more sharing of cars. A look at the statistics and say that cars spend 95plus percent of the time just sitting. See a realreneurs opportunity down that is what is really scary in the shortterm for automakers, that these apps, the car sharing trend will eat into their demand Going Forward<\/a>. Even scarier i should say that even the and even shorterterm, for drop a bomb on hadaying that it would a huge loss in south america and europe, again because of problems in russia. , halfbillion dollars alone. Gm is obviously facing the same problems. What do you think about that . I think this is a global issue. It is not really a fordspecific issue. Every automaker is dealing with the same dynamic. Renewederally is weakness in south america, china is still growing but it is not as huge as it was anticipated, russia is in real trouble, europe is in real trouble. C marketss the bri have not turned out as much growth as many people expected, which has put a lot of pressure on the u. S. Market, which is where automakers are making most of their margins these days. Now what you have is a sense that with subprime lending, the expansion is taking the u. S. Market as far as it can go, and the market is maturing and leveling out. That means that the days of eu volume growth globally are sort of gone, and now it will be a fight for every little piece of margin. Thanks so much for joining us. Bloomberg view columnist. Looking forward to getting your take after elon musk finally reveals his big d. Be sure to catch betty lius interview with the man himself, Tesla Ceo Elon<\/a> musk, tomorrow at 8 00 a. M. Eastern on Bloomberg Television<\/a>. We have breaking news from another billionaire, activist investor carl icahn. He is out with his letter to apple and ceo tim cook. Scarlet fu joins us with the details. Agitating for tim cook to do something more, specifically with the pace of Share Repurchase<\/a> is. He asked that tim cook increases the magnitude and means the accelerated the Share Repurchase<\/a>s. In a comments about apple, seeing it valued at 203 a share. That is adjusted from what had been previously the recordhe also says apple can start selling buybacks. Q wont tender visages of apple tender his shares of apple, but the basic idea is using up the extra cash. He talks about the persistently excessive liquidity of 133 billion net cash on apples balance sheet, please do something with that. Specifically, increase the magnitude of Share Repurchase<\/a>s. Thanks very much. We will continue to parse through carl icahns important words and bring them to you. All week we have been talking about how hard it is to get a mortgage. Renting may not be the answer, either. Some u. S. Cities on affordable. We will give you that story. The online real estate site and app just reported where in the United States<\/a> home prices and rent are rising. If you are in the market for a singlefamily home or condo in south florida, be prepared to pay a. If high sale prices might drive you to consider renting, consider certain cities for that have jumped 14s and 15 in some cities. Is the chief economist. Let me ask you first of all about rent. The left and talking about it as a great alternative to buying people have been talking about it as the great alternative to buying. However where have prices risen . Lots of people have to rent because they have lost homes through foreclosure and dont have enough for the down payment. Also remember, the large generation is millenials, and they are choosing to rent until they get married and have kids. Renting affordability is a problem. Rents have been rising pretty much this fulltime, even though prices have gotten more affordable across the country. People are willing to pay up, it seems, not to own. This generation wants to maybe not get married, maybe not buy a house, maybe not by a car. Theyre willing to pay a premium for that. Changent think it is a in what people fundamentally want. If you look at young adults today compared to compare married with kids, dynavox today versus the past young adults today versus the pass, they are as likely to own a home. They are marrying much later, having kids much later, and a much more racial and ethnically diverse and all of these things affect ownership rate. We mentioned in denver and south florida as places where cases have risen sort, you could say, was 20 . What about places like San Francisco<\/a>, where he lived, or here in new york . Do you see less volatility in prices . In california there is typically lots of volatility in prices, especially in land. Prices soared during the bubble and plummeted during the bust. Right now in the west the price gains are slowing down. Fewer foreclosures on the market. We are seeing a slowdown in the west. New york has been more stable throughout this whole boom, bust, and recovery than the west. Taking out mortgages. Warren buffett the other day said he doesnt understand why people dont take mortgages. It is an easy way to short Interest Rates<\/a>, a nobrainer, as he put it. It seems as if very important people have had tough times getting mortgages. Alan krueger, former head of the cea. I think even ben bernanke complained about the effect of the offending mortgage. Theyre very close to historical lows 4 . 4. 3 , within a point of the lowest on record. During the bubble we had rates of 6 . Before that, 7 to 9 . They are very low by historical standards. You can deduct your mortgage interest payments. Why isnt everyone getting mortgages . The consensus view, the majority view, is that credit is still quite tight. Not everyone agrees. There is profuse disagreement among the small set of people about whether it is harder to get a mortgage now than in the past. Most measures suggest it is still hard to get a mortgage although it is getting slightly easier. Got it. Thanks so much for joining us. Chief economist and i use the app quite often. Good luck. I hope you find what you want. The heat is on in d. C. Tim geithner faces off for the third day in a row with Hank Greenbergs<\/a> lawyer. The drama out of the aig trial. Former treasury secretary tim weiner will spend a third day on the aig bailout and federal court. He will be followed by another architect of the bailout, ben bernanke. Both are key witnesses in hankering fors Hank Greenbergs<\/a> lawsuit against the government. Peter cook is outside the courthouse with more. Geithner continues to start with greenbergs lawyer. Third day on the stand for tim geithner. He was joined a short time earlier by his new partner in crime, ben bernanke, just arrived at the courthouse as well for his testimony, expected around midmorning or so. Have beennd boise going at it from the start could he is very deliberate in his answers to boise. But yesterday it flipped because the government got to do with tim geithner and he was much more expensive but the crisis atmosphere and the decision to bail out aig. He was reluctant at first to do it but then talk about what he did. He said there was substantial risk we would lose billions of dollars, if not tens of billions of dollars, and a reasonable prospect over time of recovering our assistance. We wanted to make the conditions tough enough that they were not attractive to firms in similar circumstances or firms in the future that might face difficulties. Yes, it was harsh on the shareholders were part of that was to make sure there wasnt an undue windfall for the shareholders. All right, peter, thanks very much. Peter cook covering this unfolding drama for us. Destinedlevision is Bloomberg Television<\/a> is on the markets Bloomberg Television<\/a> is on the Market Street<\/a> after the massive rally we saw yesterday on the hope that the banks around the world will hold Interest Rates<\/a> for longer, we see Interest Rates<\/a> down. Our futures down half an hour ahead of the open. Nasdaq futures off just a little bit as well. Massive, Massive Gains<\/a> yesterday. The s p was up 1. 7 . That optimism seems to have faded a bit, or at least paid off in yesterday session. Up, the Container Store<\/a> needs to get its house in order after the retailer cut its Sales Forecast<\/a> the second time. You are in the loop. I am a matt miller, in for betty liu. Beures indicate stocks will slightly lower at the open. The number of americans filing firsttime claims for jobless benefits unexpectedly dropped last week. The average last month is that an eightyear low. Shares of pepsico up more than 2 in the premarket. The reason, higher prices for drinks and snacks. Is fending off investor peltz. The suspenses today. The ceo of tesla motors will unveil a new technology to keep drivers from drifting off the road. Analysts also predict he will launch an allwheel drive version of the model s car. The model three would be the 35,000 electric vehicle. Youre going to talk about something that is labeled yes. Actually,r thing it would have been too obvious. Does d stand for . Um. [laughter] the internet is very good at guessing these things. Omg, the suspense is killing me. It is round two between investor carl icahn and apple. He has posted an open letter to apple ceo tim cook on the internet. Calling for them to boost the size of its stock buyback and, as carl icahn put it, by a once he and sooner. Ended the effort, tim cook did raise the Buyback Program<\/a> by 30 billion. He also raised apples dividends by 8 . Gap. Es of the top for after seven years, ceo glenn murphy will step down at the end of year and pass the reins to one of his lieutenants. Julie hyman is more. At a goodis leaving time or bad time to pass the reins . Thatll, it is a bad sign the same time the company made the announcement, it also made announcement that september sales came in below what analysts had been anticipated. On a comparable basis were flat for gap overall. The cap randy edsall fell by 3 . The gap brand itself fell by 3 . Normal adew dress campaign, which i find a little confusing. It is about normcore . Yeah the trend right now is to dress like everyone else . Something like that. Got it. Itself has not appealed to consumers so we see these declining comps. But if you look at his tenure, it has been a successful tenure. He has done costcutting and cost rationalization and is the more efficient at the company. Earnings have risen have grown right of it. Sales have not, however, grown by very much. Only 2 or so on an annual basis. Their ribs seen impressive growth. There we have seen impressive growth. Most analysts are cautious on this transition. What is the deal with the new guy . Part of the digital unit. Yes, he is. He has had a number of different jobs at the company. He was in charge of cap north america at one point. Digital growth and innovation sounds like a great unit to run. Not only knows the online business, he also runs intermix, which have the latter two have been companies that murphy bought under his tenure and that investors have been relatively positive on. Those have been more quickly growing portions of the business that peck has been in charge of. There felt to continue with the growth and expand the term they have got to continue with the growth and expand the company. You will keep your eye on it for us. Julie. Stay at the gap, the cyberattacks on wall street are more widespread than previously reported. The hackers that got into jpmorgan used computers to attack at least the routine 13financial firms other financial firms, according to people familiar with the investigation. I am joined by michael riley. First, thanks for joining us for. Secondly, why is it taking so long to find out about these attacks . Isnt just banks, these are other kinds of Financial Institutions<\/a>. Like what . E trade . One of them. Abp. A wide swath of Companies Across<\/a> the financial sector. This kind of stuff really freaks. Hem out especially in the financial sector, especially the banks. The white house and intelligence agencies have been looking at this and carefully tracking, and i think it is also an issue of the information is slow to come in. The numbers have been going practically by the day it is at least 13 more. That is probably low. The Financial Institutions<\/a> know about this, i assume, but just dont come forward with information sooner . Are they not cooperating with investigators . They send out a bunch of indicators, information that the banks and other Financial Institutions<\/a> used to go through your computer logs, and it turns out there were indicators that the hackers hit them might possibly be in the network. They try to figure out how bad the situation is. That is the process that is going on now. What was do we know when information was taken . Jpmorgan has lost the gigabytes of information. Russian mafia people . My guess is that institutions themselves are trying to figure that out. A lot of them off, and said no. Citibank said no, others have said no. Do they really have a handle on the situation . The way this was done in the past there has been a little bit of the disclosure, and then more stuff comes out. For joining much us. Michael riley is reporting on this for bloomberg news. Getting organized seems to be falling out of favor with u. S. Consumers. Shares of the Container Store<\/a> have tanked more than 25 since mondays dismal earnings report. The ceo of the company will join us. Billionaire activist investor carl icahn is taking aim at apple again. In a letter to apple, ceo tim cook is looking for apple stock to hit 203 a share. That would make the Company Worth<\/a> over 1 trillion. Joining me is bloomberg managing editor tom giles. High hopes for carl icahn. Went carl icahn speaks, managers and sometimes grumble that they usually eventually do what he says. They come around. The perfect example is ebay. He went after them and said you have to split up, ebay fought tooth and nail for months. Eventually they gave him. Not directly to icahn, but a few months later they came back and did it. He is coming back at apple, he has been down this road before. He had a with tim cook, etc. Use more of that cash. They did step that up and now he is asking for more. He says he is up 50 since the initial investment. Doesnt have a lot of room for complaint. Is a winwin situation for him. Ebays only the most recent example. N if you go back to aol only because im so young that i cant remember before that i will remember for you. In the past people really dislike his advice and then years later taken it or have been forced to. He is not afraid to make to speak is not afraid his mind, he is not afraid to keep coming back time and time again. Somehow he has this particular staying power. In this case it is hard to argue with the fact that apple has 164 going dollars in remarkable security. It is a lot of cash. Acquire companies that bigger that quickly enough. They have concerns about the patriot in cash about repatriating cash. I would like to see what karl has to say about the tax rate and whether he has any advice for the obama administration. Im sure he does. Im not sure he has the same impact on obama as he does with tim cook. Might be better for everyone if we figured out a way to deal with all of this cash that companies are holding offshore. We are talking about chileans of dollars. I somewhat for joining us. Thanks so much for joining us. When we come back, we will talk about the Container Store<\/a>. Unceo has a new book out, containable. Is underwayseason and many analysts are looking for cues as to how retailers will fare over the shopping season. One prediction is that sales will rise the most in three years thanks to the improving jobs picture. One company that is taking on strong holiday sales is the Container Store<\/a>. More than 60 of its earnings normally, during the Fourth Quarter<\/a>, and this year is hoping to bring in 70 . That could be a tall order, since Container Store<\/a> cut Sales Forecast<\/a> for the second time this year on monday. Joining me is the ceo, kip tindell, who has a new book out this week called uncontainable. Was at the launch Party Last Night<\/a> and we will get to that in a moment. The timing seems difficult because of the Earnings Release<\/a> and the drop that the stock has seen since then. Talk to me about what happened with the earnings. Store sales have been a little sluggish the last couple quarters and they were down 4 10 of a one, but earnings were up 37 . Occasionally i actually think a lot of retailers are seeing just a smidge of sluggishness in sales right now. We have had it for some time and it is a bit more sluggish than we anticipated. Gross margin is great, sg na great, earnings were great. Growth is great. 12 Square Footage<\/a> growth. I think this will clear up soon. Through the past 36 years we have had lots of times when cant store sales have been a little higher and lower than expected. I think you are right about christmas. A lot of for people didnt get the Christmas Shopping<\/a> finished last year, because we had a short season and the whether the juki because of the season. I dont think theyre going to let themselves not get all the shopping done two years in a row. But the shares have been impacted really negatively. At 65 from this year. I think the company has lost half its value since going public. H,d you come public to hig set expectations too high at the beginning of the year . Popped 36 the next day and then went on to mid 40s. It was way over 100 times earnings, and i think it just settled back is sometimes an ipo will do. Focused on getting the traffic up in the Comp Store Sales<\/a> up. As we get into particularly the order,order fourth that number will turn around, and the other metrics are looking quite good. I was very surprised, i have to a new ipot company, we were not expecting that, but we have never felt better about the morale of our people and enthusiastic customers and we think we have 1. 5 , trying to get that up a point. What is hurting sales . Has the newness faded after the ipo . More competition from players like ikea or costco . You know, i just think that retail in general is a little sluggish now. Were talking a difference of. H about 1 or it is as much traffic as anything. It is a promotional environment we have been rigell now. Everyone is putting everything on sale. We have meeting our pricing power. We have a few things on sale occasionally but mostly we have not been doing the Price Promotions<\/a> that most retailers have. Every year our best selling product we love the product so much that we bought the company in 1999 plus come as a potato chip item, once you have one, you have to have more. That is why the Fourth Quarter<\/a> is so good. In january and february, it was even bigger than christmas. Looking forward to a great Fourth Quarter<\/a>. Let me ask about uncontainable. You have criticized Milton Friedman<\/a> capitalism and said that we should consider more the stakeholders than just the shareholders. Friedmanmilton famously said that the only reason for parishioners to rex mizer trigger shareholders. Only reason for parishioners to maximize for shareholders. Two people are ecstatic your shareholders will be ecstatic, too. If you are myopically focused only on the shareholder, the magic is lost, employees arent happy, alternately the shareholders will be happy. We have seen it at the Grocery Store<\/a> chain in massachusetts. If the customers if the employees arent happy, the customers wont show up. Absolutely. Good luck with the book. Appreciated the launch party. I was in the building down on the first floor. Wish you great success. Kip tindell, ceo and founder of the Container Store<\/a>. Also the author of uncontainable. We are back in just a few minutes. Welcome back. I am matt miller, in for betty liu. Bloomberg television is on the markets. Take a look at the declines that we are seeing in futures here. 3 10 of 1 on the s p. The s p up 1. 7 yesterday. The dow up 274 points. Big gains yesterday. Small declines in futures right now as we head into the open. We are on the markets again in 30 minutes. But really, we live on the markets. We are about to open the markets for you to that is about as on the markets as you can get. Breaking news regarding Billionaire Hedge Fund<\/a> manager john paulson. Olivia sterns has the details. A rough september 4 john paulson. 13 this year through september 10. 6 , down 13 for the year. The advantageplus fun. Is Credit Opportunities<\/a> fund 3. 7 in september. It was a rough month for john paulson. John paulson is often markets. Often markets. I feel a man who made more than 2 billion. Still doing ok. Lets caps on the top 10 stocks you need to know about. Scarlet fu, Olivia Sterns<\/a> you just heard. Limited brands. A 6 increase in september samestore sales, beating analyst estimates, which called for an increase of only 3. 5 . The company says it sees october, sales up in single digits. Really benefiting him i would say, everyone. Practical outfit. Talk about a winwin situation where victorias secret sales rise. Everyone is a winner. Sure. Number nine, shares are surging in a few market after a new international announced it is buying this company. Access toive endo its products. Shareholders will be a religious cash will be able to choose cash, stocks, or accommodation. They didnt put it after victorias secret. Number eight is a big one. Apple. Activist investor carl icahn is hosting an open letter to ceo tim cook out asking them to accelerate share buybacks. It should be trading double where it is now. He added that the letter is not intended as criticism. Apples response from it reviews capital return programs annually. Number seven is alcoa. Producerst aluminum earned . 31 a share, beating estimates by nine cents. Revenue came in above forecast helped by lower costs. Number six is the botox maker, bolstering its defense pharmaceuticals. Because the earnings will be higher than analysts estimate. Number five, advanced micro devices. Amd will replace the ceo would chief operating officer effective immediately. It comes just a week for the Company Reports<\/a> thirdquarter results. Number four is ruby tuesday, my favorite restaurant. Posting better than estimated results, ruby tuesday cited stronger samestore sales and improved restaurant level margins. Shares surging on the news. Shareser three is gap, plunging on the news that the ceo is stepping down. He is credited during his seven years in charge. Doubling. He will be replaced by the president of the Digital Innovation<\/a> unit. I hear you know, a victorias secret thing. Ok, number two, pepsico. Posting thirdquarter profit that topped analyst estimates. The company boosted its orf its forecast for the year based on what is called a challenged Macro Economic<\/a> environment. Finally, number one, tesla motors. Elon musk ends the suspense today. It will unveil new technology that will keep drivers from drifting off the road. Launch an all version of the electric car. I am thankful we will finally be done with all of this. It is not just me. He woulde he tweeted hasil his big d there been a lot i will just and that now. Time,ted to considerable the fed maintained a pledge to keep Interest Rates<\/a> low. , a globalg in david Market Strategist<\/a> at j. P. Morgan. Thank you for joining us. It was interesting yesterday how those fed minutes can sometimes be boring and sometimes contrived the Dow Jones Industrial<\/a> average up. Exactly. It was much more dovish. What theyre trying to instill is this is notnd something mechanical. I think this may have provided comfort to investors who are getting skittish. We were just playing his. Peech yesterday morning less market on the calendar. Exactly. What the fed will do is try to support the economy and meet youll mandates. I would watch the data and try onfigure out where we are the cycle. I wonder what this means for public and private investments. In the u. S. , it has returned to precrisis. It is a challenge for mario draghi. What does this mean for spending . I think that tells the story all in one chart. Made an important point. Investment has been lackluster and we needed to accelerate. We need to go back to what feels like every day in the papers. The question is, when will they be confident enough to deploy that cash . Europe is a different story. We have started to see science, again, but those are big business decisions. If youre not certain about where the economy is headed, youre not necessarily going to deploy capital. What sectors do you want to be in . Even if it is further than 2015 summer . Is important to think about the cycle alongside a stronger u. S. Dollar area i would try to focus on domestic Oriented Industries<\/a> or global industries. Tech could be a good play. Not to mention Companies Going<\/a> out, buying computers, that could certainly use one. So i think tech and consumer discretionary. Obviously, you said being on the counter is like playing with fire. We need to do that in this business and we need to at least set our expectations. When do we think we could see the fat out . I think the consensus is for a june hike. It is important to us the data Going Forward<\/a> and particularly important that the fed does not want to play catchup and they do not want the situation to pop and hike rates faster than normally. The march meeting, something with a press conference. Even if you think they got minutes, wefrom the expect them to raise rates at the exact same time. Exactly. , or all apple or at t those combined. Stay with us. A pop quiz. Which company paid its board of directors more last year than the boards of apple, at t, and google combined . The answer is one you will not recognize if you do not live in new york today. Fairway, a grocery chain here. It doled out 12. 1 million to its board of directors. Does this look like a stock chart of a company with an outsized board pay . To explain why this flailing grocery chain worth almost nothing paid its board of directors more than all of those Gigantic Companies<\/a> combined. This is a shocker. I had to redo the couple of times before i believed it, frankly. At firstunbelievable glance. A lot of people love fairway. Great prices. Totally. Prices and a good selection. Their market cap is only about 150 million. They were owned by a private equity firm until last year when they were ipoed. They gave themselves stock awards. A way for a private equity firm to basically pay its employees. It is unusual. We find most partners who sit on boards do not get paid any directors fees. They will usually pay a management fee, a termination the. On thethey have partners board of directors, they will get paid that additional fee for serving on the board. We have seen that at Dunkin Brands<\/a> and pinnacle pinnacle foods. This type of practice is a little unusual. A is usually seen as a reward for doing something good. If your company goes from almost 1 billion market cap to 100 and 2 million in a year, you probably would not think you would be expecting any kind of resins at the end. Sure. Companies try to link performance. What is interesting about this company is they are so small, they do not have to report discussion and analysis like you see in a regular, publicly traded company. There is not a lot of discussion if you take a look at it. Their stock has fallen about 75 this year. It reached a high last july. Analystknow, it seems sweet talked to have a lot of work to do. All right. Laura. That story is out on bloomberg. Com. Look for it. At the topook now tech stories. Snapchat, the disappearing. Essaging service an event in San Francisco<\/a>, he said the ads will appear around stories and products and will be optional to view. Will they disappearing 10 seconds . The company causes first foray in advertising as it looks to generate revenue. At t is generating millions of dollars to settle claims for unauthorized charges. They were claims of course goats, and love kids, a practice called mobile cramming. A consumer can apply to the federal trade commission for refunds. If you took a love tips from at t, you might have other problems. Catch it every weekday at 1 00 p. M. And 6 00 p. M. Eastern time. If youre lucky enough to live it is 10 00 a. M. And 3 00 p. M. Your time in San Francisco<\/a>. Retailers are making changes ahead of the holiday season. We have been talking all morning about the gap, replacing its ceo by yearend. A challenging retail landscape is a topic team tackled today on market makers. Erik schatzker joins me now to explain how. The irony is that the gap has been a standout in a challenging retail environment theyre in 2013, revenue was up. 7 . 2014, it was up 3 for the gap and profit has been rising. Glenn murphy, only 52 years old, has decided it is time to retire. He told the wall street journal that the ceo who sets the longterm strategy needs to be around executed. At the gap, hers cannot see himself being there for at least another three years. The gap sets strategy and threeyear chunks. Now, why . There is a bit of a mystery. Maybe he is tired. A number ofa ceo of Different Companies<\/a> for 14 years. Ceo of aht the former canadian drugstore chain would be worth 1. 7 million, but that is what he is worth. That is, to has come out of the market cap today. He will be succeeded by a guy who we do not know nearly as much about as glenn murphy. He runs the growth and Innovation Unit<\/a> there. He is not your typical digital guy. He is 59 years old and evan years older than murphy is, plus, he comes out of the consulting world and he was a consultant for 23 years. Until 2005 when he joined the gap. Investors do not have nearly as much confidence as they did in glenn murphy, notwithstanding troubles, samestore scale sales at the gap itself are not doing great. Eric, thank you very much. The road to the world series. We are playing moneyball with the former cardinals shortstop and twotime world series champion David Eckstein<\/a> after the break. Stay with us. Our next guest, a world series champion and a twotime allstar. Team, the st. Louis cardinals, are going to the National Championship<\/a> series for the fourth year in a row. Maybe going to the National League<\/a> champions. Residenceught in my they spall expert for a little bit of support, scarlet fu, to. Oin with david thank you for joining us. We are very excited about the championship series. His office has been crazy loud because there are so many and giants fans. Everyone is worried about how long the game is. , itgiants versus the nats went into eight innings. It was getting along. You love it. R, at this time of year, you love these games. You never know what pitch will cause the outcome of the game. You fan and as a player, love these types of games. Correctly interview saying we would talk a little moneyball. What did st. Louis do right . Are they playing moneyball or are they on a winning streak the last four years . The great thing about st. Louis, they combine both of them. They have a system called the cardinal way. They teach and instill the fundamental game and also teach winning and how to win. From the minor league up. They get the veteran players and embrace these younger players, which causes them to win. At the end of the day, they are very wise in the decisions they make and who they bring on. But how about mentoring . In a city like new york, the mets, unfortunately, are always struggling. They seized face hot media glare spotlight. How do you do with intrusive media . You come from a cardinals where the media spotlight is not quite as bright. What do you think about that . It is easier to play in the midwest and also on the west coast because everything you do is magnified. But in st. Louis, you have the veteran guys who take the younger guys underneath their wings and make them understand how to go about the media. You want to say the right things and only say what you need to say. Do not try to start collaborating on anything. Understand what you do off the field is just as important as on the field. The common statement they tell you. What you do on the field apparently is run up the pitch count. I have always been fascinated by the strategy. It does not see my something you could strategize or something you can plan or will to happen. It seems like it is more on the pitcher. What you can control as a batter, how do you do that . It was one of the things i was taught as soon as i was assigned to a professional baseball contract. My first manager told me if i wanted to play in the big leagues, i need to learn how to take pitches. By doing that, it allowed me to take a bunch of pages and i would get in the batters box and i would take until i got to two strikes. Learning how to hit, the end result was actually becoming a really good team player, allowing the guys behind you to see more pitches. I got more comfortable. I could foul pitches. At the end of the day, it was a great team strategy. In that situation, bottom of the ninth, 32, to strike, that you feel more pressure or the pitcher does . In my opinion, the pitcher does. I always want to put it onto them. I felt confident and comfortable in my at that. Worryinge freedom of about the pitch, three inches outside fourball for, or making contact. I would not let the umpire called strike three on me. I felt confident in that situation. Thank you for joining us. A twotime world series champion, twotime allstars. From the ceo, elon musk, from tesla, later tomorrow. And jeff winner from linkedin. Deftly join us for that. Definitely join us for that. It is 56 past the hour. Bloomberg television is on the market. We are 30 minutes into the trading day. Lets get you caught up with where stocks are trading now. The s p 500 had its best day of the year. By about 11ow down points. The nasdaq down by about 28 points right now. S p 500s ill within about two or 3 of its alltime record high. Lets quickly show you what is happening to currencies and commodities. The 10 year yield trading at its lowest level in 15 months down by only one basis points area trading at a yield of 2. 31 . Oil,e also seeing crude moving lower today. This is after a report that showed u. S. Inventories of oil jumped yesterday. Finally, the dollar index moving a little bit lower. A threeweekuching low here. Speaking of currencies, we are keeping an i on the ruble today, the currency is down about 20 against the dollar this year. That is despite efforts from russia and the central bank last week to prop it up. Joining me now with more is racial evidence rachel evans. Key and peoples minds is the ongoing conflict in the ukraine. We also have Economic Outlook<\/a> in. Ussia that seems to have taken a hit as a result of the sanctions being deployed by europe and the u. S. Against russia as well. Right now, we are seeing the russia bank. Theyre burning through cash reserves. People are having flash for flashbacks to 1998. Why is any of this not working . Or is it . At the moment, the forces against the ruble are strong. Intervention by the central bank is not able to sufficiently to prop it up here and we have a stronger dollar broadly speaking. It is helping to push the ruble s down. Er oil prices are sliding and there does not seem to be any light on the horizon. Wealthy residents trying to take their money out of the country . A mixture of both. Back in august, the airline was shut down, some russian money was moving out of dollars and into hong kong dollars. That, we have got a capital flight back from russia from Foreign Investors<\/a> back into europe and into the u. S. That makes sense. You can see the steady climb upward. You always put the stronger currency as the denominator. The fact that the ruble is 20 stronger against the dollar actually means it is weaker. What is the impact for the government of russia. Theyre obviously paying for oil in dollars. Mmodity what is the impact of the slide in the ruble . Russia has been impacted quite badly from an inflation perspective. Rising very dramatically. The governmenten struggling to sell bonds to raise prices. Foreign reserves are declining as a result of Central Banks<\/a> having to intervene. It is not rosy. That being said, Approval Ratings<\/a> are still very high. That is true. Evans, thank you so much for your time. Next. Makers is coming up live from bloomberg headquarters in new york, this is market makers. Cap suddenly replaces the ceo credited with reviving the retailer. How safe is your bank account . Into theho broke jpmorgan computers may have had other financial firms. You will hear from the former Financial Security<\/a> chief. A ceo earnings by raising prices and cutting costs. Will that be enough to fend off calls from","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia802903.us.archive.org\/23\/items\/BLOOMBERG_20141009_120000_In_the_Loop_With_Betty_Liu\/BLOOMBERG_20141009_120000_In_the_Loop_With_Betty_Liu.thumbs\/BLOOMBERG_20141009_120000_In_the_Loop_With_Betty_Liu_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240621T12:35:10+00:00"}