Transcripts For BLOOMBERG In The Loop With Betty Liu 2014120

BLOOMBERG In The Loop With Betty Liu December 2, 2014

Author of the prize. You wont have the maneuverability that he has had. His basic argan has been that he will deliver up at her economy and hes delivered a lot that her economy. Of theof the founders prodemocracy protests in hong kong said its time to give up. The government has refused to mans. Students say they are going on a hunger strike. Congressional aides have learned that criticizing president obamas daughters is not a good idea. It began last wednesday with the thanksgiving tradition, the president pardoning a turkey. Melia and syosset were there. They were looking like teenage girls. They were looking toward. Thats enough the aid to a tennessee august with. She wrote that the daughters should try showing a little class and dress like they deserve respect and not a spot at the bar. She resigned. Internet shopping sales rose 8 yesterday. That is less than half the growth rate of a year ago. That may start with the earlier. Tart to shopping season i amazon and others were offering deals. Chrysler is just that with their november sales, they are up 20. 1 . That is above estimates were at 60. 9 for november. Matt miller is at the news desk. We did get again of 20. 1 . We were looking for 15. 9 . Better than the median expectations, Brian Johnson at barclays added at a 20 aint. He was spot on. Jeep rane sales of the the continue to do well. They are up 27 . It was the best november ever for jeep. It was a best november overall since 2001. We had a really great month for car sales. We are going to look and see if this november will be a better november industry l wide for car sales. They did well with the chrysler 200. They sold one half times more than they did this time last year. This was the 56th consecutive month of consecutive sales gains for the chrysler group. I know we are going to get gm and ford embers numbers and about 90 minutes. Oil prices are falling again today. There was a brief respite yesterday. Said lower prices will be good at for the global economy. It will add to gdp. That is little comfort to some of the Energy Companies that are getting hard hit i lower prices. Scarlet fu has a look at who is suffering of the most. All the Energy Companies and oil service providers, the lower the price of oil, the less economical it is for them. They have large builtin costs. The less demand for a quick of the goes along with that, this is bad news. This is a reduction in spending taking place. Expect shake it in the industry. We are going to get some Companies Going out of business. Its going to lead to a potentially slower rate of growth. Months,next six investments are going to be baked in. Three years out, we might see a shortfall. Thatll take time before investment comes home. Investors are placing their bets here and you only have to work at the worst performers in the s p 500 since oil began falling. A lot of them are these Traditional Oil Service Companies like halliburton or neighbors industries. They are down by almost 50 . Credit analysts say watch out for these Service Companies. Beforeok at total debt earnings. This helps you determine how years will be required to pay back the debt. It is alarming when that rate goes over 3. Neighbor is getting close. Halliburton is doing better. Its not just the Oil Companies here in hedge funds are down. Reduced spending is step one of cash conservation. Next. They may be holding off on the dividends. They are looking ahead to more m a. Weve already seen them add purchases. There is going to be more divestment in the industry. Thank you so much. Moving on to a shocking report from Cyber Security firm silence. A twoyear long investigation deals with evidence that iranian companiesmed at 50 around the world. The hackers infiltrated chemical companies, defense contractors, universities, Energy Companies, and transportation providers. With me this mornings stuart mcclure. Michael reillys who focuses on cybercrime for us. But start with you on this study. Who are these hackers in iran . You can never really know exactly who is behind the keyboard. You can certainly see a lot of anecdotal evidence and personal evidence that they are coming straight out of iran or other infrastructure around the world from iran and usually it is in terror on. If it looks like a duck and walks like a duck, it ready much is. Iranian government has been backing these groups for long time. Us, weve been tracking these groups for many, many years. The first evidence of this kind of attack started back in 2007. The last two years it has really picked up. You were just alluded to my question, if this is statesponsored or not. Do we know what they have gathered and who would be the biggest targets . We do from our perspective. We tracked over 50 different victims around the globe. They are all Critical Infrastructure companies. They are companies that are in charge of our life and our power and our presentation transportation systems. Why is the question. They are going after control of these Critical Infrastructure companies. They have burned themselves inside these organizations at some of the deepest levels. Why, we dont know. We can speculate. They do like to have negotiating power. It might be something more. Mike, let me bring you in a. The industries they are targeting, airlines, airports, utility companies, energy how might they leverage this information . Its an adjusting report. We know about Russian Hackers and chinese hackers from a series of reports. This the first it feels act what iranian Cyber Espionage looks like. They are going after airlines and airports and thats interesting. They could get into systems that andude Cargo Handling passenger manifests. They could get into Security Systems that allow them to impersonate airport workers because they can print out fake badges. You have to think about Cyber Espionage as an intelligence espionage in cases like this. It could be used for lots of reasons. They may not needed for their own reasons. They may give it to allies or proxies. There is intelligence relationships between iran and north korea. This could be something that they are swapping. Some of these things are bone chilling. It is. I just want to list some of the companies and i know are listed in the report. Korean airlines, pakistan airlines, others. Do we know what the response is . What has been the response so far by these companies . Them governments selves . We dont name any victims inside the report. Evidence of starting to come out about them. It really depends on the organization. A lot of people like to put their head in the sand and not really deal with it. Hackerkes the job of the far easier. Nobody has identified them or call them out and slapped them. It is unfortunate, but that is the way of the world. People dont know how to defend themselves from these kind of attacks. They just ignore them until he gets brought up into a fire in front of their face. Thank you so much for joining us, both of you. Moving and shaking this hour, stinger. You might say that every little thing he does is magic. His latest project is a Broadway Musical called the last ship. He is jumping into play one of the lead roles. I spoke with him about that. I was interested in taylor swifts stand. I thought it was a brave stand. She also brought it into the public debate. That was good. People need to talk about this. What is good for music . Music is important to our society. It must not die out or it it is a vibrant part of society. I am in a situation where i have to work. Its a difficult situation and i am prepared to do the work. If that means going into the play, thats what i will do. Bring you much more of my sitdown interview with staying at coming up next. That is music from its things broadway show the latest ship. Is doingrs old, sting what a lot of his ambitious peers are doing. They are embarking on new careers. The show had not been a big success yet read he announced that he will join the cast on december 9 to boost ticket sales. As he told me, working on broadway was worth the risk to his career. I have chosen the most difficult thing you can do on broadway. A musical, and an original musical. Most musicals are based on preexisting robberies, properties, a movie or something everyone knows. A storyentirely new, that is completely fresh and that is the most difficult thing you can do on broadway. I knew that going in. So satisfying to fight this battle. Once we get people in the theater, we win the battle did people stand up and applaud. Its very emotional. The perception outside is different. What is this about . Its set in a shipyard . Musical . A jukebox we are fighting to change peoples perception outside. Once we are in, we have them. My job is to invite people in and tell them they are going to have a great time. Its a wonderful musical. Has it been a nailbiting experience . It still is great we are trying to keep the ship afloat. Every day is a new surprise. We had a stellar week last week at the box office. I announced i was going into the play. That was a surprise for me. I did not anticipate this. Keepver it takes to the should afloat, i will do. I am an join the struggle. That . T triggered looking at the ticket sales . We are fighting the same battle on broadway here in have the same kind of figures. We have a secret weapon, which is me. I announced it and we took a stellar Box Office Last week here and that is clearly working. What is stellar . Can you say . We did 3 million in a week. That was a more than 50 rise. That is good. How come you didnt do that in the first place . That was not my intention. I was happy with it without me in it. This is something they will enjoy. I hope that bike going into it for five weeks, we will reach a tipping point. Word is very good, but wordofmouth is slow. To tell you to see it before you decide. Maybe 50,000 extra people will see it and then wordofmouth will take us to the Promised Land of survival. I look at you and you have had an amazing career. For you to go out again and risk your reputation one more time, why . Nothing of value is avoiding risk. I enjoy the risk. I am not risking my life. Risk withays taken artistic decisions i have made, whether its the music i play or the way i present myself as an adult. I am a 63yearold man. I am not pretending that i am a kid. A a 63yearold man with 23yearold body. And a 14yearold mind. It is exciting for me to do things that are difficult and. Hen succeed, we hope you rea i have a good track record. I went to see the last ship. It was good. Thead through some of the inner critics and what they said about the show. Most of them were big fans. The New York Times wrote a nice review. , theyrt of it struck me seem to all really like the music. To go fromhard contemporary rock music to a score for a musical. Its a different thing. My idea was not to write a rock n roll musical. It was to write a more traditional score that was rooted in the fall music of my area and a tip of the hat to musical theater. Been richardldve rogers. As a child i listen to all of the rodgers and hammerstein musicals. Augmented chords from richard rogers. We steal from the best. This is a more oldfashioned musical than something rock n roll. The New York Times said that for all the haunting beauty of the score, it often feels dramatically landlocked. I think critics are desperate to find a ship metaphor. There is no logic to that. It doesnt make any sense. We will have much more from sting later in the hour. You are watching in the loop five. We have more company news. A big takeover in insurance industry. Has decided to buy friends life are in china will cut 250 jobs in an efficiency move. This will come from the merchandising unit area they are trying to raise standards in china. The next generation of google glass will have intel inside. They will be made by texas instruments. Intel has been trying to grab a foot wall in the wearable device market. We are on the markets. What a walkie market it was yesterday and apple tumbled in the first halfhour and did recover. The markets seem calmer today. You have equity futures starting off near the record highs again despite continued tumbles in the commodities market like oil. We are on the markets again in 30 minutes. Speaking of google, the tech giant is one step closer to rolling out its superfast internet in tennessee. They have filed for a franchise authorities to death desk certificate certificate. They may be using this opportunity to get out ahead of potential competition in nashville. They are affected by at ts decision to pause investment following the call to reclassify the internet as utility. Joining us now to bring us up to speed on the Net Neutrality anate is the ceo of organization that represents manufacturers and suppliers of hightech munication networks. It is great to see you this morning. This seems like a crafty move by google. Sure. It perfect sense. They are different from other Internet Service providers that they are on both sides of the equation. They deliver Internet Services but they also deliver content. To stay on either side of the Net Neutrality debate. How do we know how google fiber has performed . How have they performed in various cities across the country . You are just turning to see the rollout. You havent seen the results. I dont think you will see much of a difference. Its essentially the same technology that is being rolled out by at t and google and earlier by verizon. At t, they are in hot water. Upset over what they believe is going to be unfair regulation of their business. It that they were going to stop investing or rollback investment. What does that mean . They are going to pause a for the rollout . Investment inbout getting a return on the investment. Their concern is if we get into a Net Neutrality fight again, which we have been in in the past. Investment, it delays innovation, it delays deployment. We are at a time where argues of the internet is exploding. Its going crazy. Without further infrastructure, we will not be able to accommodate all the needs that we have with our phones, cars, etc. Bluffing . Y i dont think they are bluffing at all. They need to get a return on their investment. I would be very cautious about how much you invest. 10 years ago, we went through this. Over four years following the deregulation of the industry, investment in infrastructure increased 80 . Spent 24en verizon billion building its network area is hard to imagine they would have done that without the deregulation. Stem to expand their network and create new markets. Hitegulation is going to and the incentivize. The extent to which you treat them like utility, it will be incentivize them. They will have to get approval for approvals that they make improvements that they make. You will treat them like a monopoly. We are looking at a competitive market. We are applying rules that we dont need to at this point. Well have a problem. You can imagine why certain lawmakers feel like the industry has gotten big enough that everybody is online and off that now we need the government to step in. Franken, hefrom al has been very proNet Neutrality. People rely on the internet calls, itsion, phone is a Telecommunications Technology service. There is no doubt about that. There is no question. Its an argument that plays very well. I dont take its getting to the bottom line, which is how do we fund this infrastructure . When the Telecommunications Act was first passed in 1934, we were talking about monopolies. We are not in that situation right now. Isont think we need. This all about investment and making sure that we can build up a network that we need for the future. Note, we are getting auto Sales Numbers this morning. I know that you used to be in the industry. At t has mentioned that they want to be in the industry. They see this as a 1 billion sales opportunity. What is the outlook for connected cars . I think its the future. There are so many great opportunities for at t and verizon. Whether it is communicating with the cloud or the internet or together, all of that is going to be done on the backbones of their networks. It will create more business opportunities. Now they have to work with the existing legacy players. This is exactly what is so exciting about us whole industry. It is transforming for your eyes. It will be completely different in five years. Absolutely. May be quicker than that, who knows with the way things are going. Scott, that you for joining us. Much more on Technology Companies and their fight for immigration next year. More by exclusive interview with sting. I asked him how he listens to his music and taylor swift and spotify. Net neutrality is not the only thing on congresss agenda. Congress needs to address the executive action on immigration. Up tech sector is ramping reform. They want targeted reform for high skilled workers to be addressed sooner rather than later. Shapiro. S now is gary they represent 2000 tech companies. I hate to make this sound like we have heard this all before, in many ways, we have heard this all before from the tech industry. They want Immigration Reform sooner rather than later. They want it focused on high skilled workers. What is different this time around . You have heard it all before. We dontd putting up a want you sign to people coming to the United States. Workers. Ighly skilled they are the basis of innovation. They produce more patents and do more Creative Work area they are the fuel that drives our nation. We are a nation of immigrants and innovators. That is who we are. That is our secret sauce and we want to continue that. Far, that has been falling on deaf ears in washington where they dont want to focus on high skilled workers. They want comprehensive reform. You have been unsuccessful in the last several years and getting any of those initiatives passed. How

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