Transcripts For BLOOMBERG In The Loop With Betty Liu 2015030

BLOOMBERG In The Loop With Betty Liu March 2, 2015

Address a section of congress tomorrow. He wants any deal to be delayed. He is speaking at the invitation of john boehner. John kerry eight cysts insists there is no problem between the Prime Minister and israel. It was all, if not it was odd if not unique that the administration was not included in this process. Alix they agree iran must not build nuclear weapons. Democrats want no part of an. I think so. I am not going to suggest it because it is not. Remember what it is causing this, the president of the united hates overreaching. Alix samsung unveils new challenges to apple. The phones are on display today. The screen extends on the sides of the phone. Both include Payment Software compatible with most card readers. Congress will hear from facebook founder, mark zuckerberg. Who will fill warm buffets shoes . Who will fill Warren Buffetts shoes . Those are your top headlines. Back to our top story. Peter cook joins us. Is John Boehners job safe . Peter his job is safe for now. In large part, no one stepping up to replace him. In the process of ousting, it is an extremely complicated process. The reality is, the fiasco on friday weekend him substantially. Weakened him. He had 25 of his fellow republicans not support him for speaker a few months back. This time he had 52 republicans of voting against his plan. The just say no caucus is growing. With that, John Boehners power is weakening as well. We have republican control. Alix what is at stake for john boehner to make sure it doesnt happen again . Peter the clock is starting to tick as we get down. Does he kicked the can with another shortterm extension or does he acknowledge reality . Does he bring full funding through the end of september . Does he bring that to the floor . Does he risk the ire of conservatives . That is likely where we are heading. Alix is in there a lot of ice there, no one can get to work . Peter that might be a good thing. A two hour delay for the federal government today. I cannot imagine that is going to be something he can count on Going Forward. Alix a little snow, a little life, get to work. Staying on the subject of politics, bruce ratner. He is with me. A known political donor. He was in the running to host the dnc before losing out this year. What do you make about this latest this function in washington . The politics going on, it is a little bit different this time. The stakes are very high. This will not affect them immediately, but you have to look at the underlying issues. Nuclear weapons and Homeland Security. What you have here is a situation where you have extremism and you have to look at the underlying issues and how you handle them. One thing we can say is the way to handle them is not the way it is being handled now. You need to take the politics out. You need to deal with the whole problem. This is all part of something much bigger. You have to look at it this way. You cannot get lost in the weeds. What is going to happen tomorrow is going to happen. You have to move on and deal with the real issues. I think that is what people are frustrated with. Politics and the fact that we are dealing with serious things. Whether it is boko her fromharam, or isis, it is all tied in together. This netanyahu visit has made it difficult for some democrats to figure out the right path. It has. It has exacerbated the situation. It is unnecessary. We should be dealing with the issues. What has to be done, politicians have to look at the big issues and not the results of small issues. Netanyahu has dominated with the real issues are. Alix i do not think the u. S. Dealing with iran is a good one. That is the serious issue. As the public, we do not have enough information to judge it. Netanyahu says i do and i do not like it. We are going to find out soon. We will get a better sense to make a judgment. Right now, we do not have the information. Alix we are going to talk about more stuff. We want to talk about politics overseas. People marching through moscow in honor of nemtsov to show support for russias opposition. Critics are betting on unfolding economic crisis. Give us a sense of what it is like on the ground. A real state of shock. Yesterday, when i attended the march, the feeling i got the feeling was of pessimism about where the country is heading and fear of the future. Alix is calling it an opposition legit . Does it have enough support to be called that . It has been squeezed by president putin since he came to power. Television has basically become prostate. They are a real minority. There are a few charismatic figures. One is a form on blogger lawyer who is currently imprisoned. He was prevented from attending a planned march on the day that we had this procession in honor of boris nemtsov. Alix there was an article written by the editors. Most frightening interpretation is the Alliance Security Service Officers and thugs couldnt has released is beyond his control. What is that kind of sense . That is one of the fears that this is what can happen. You will find very few people who will subscribe to the theory. The only thing that makes sense is the ultranationalist forces because the way the murder was carried out was very professional and in such a location that it is clear that they had assistance from those kind of circles. That is a risk. He no longer controls them. Alix any chance that we catch you did this . That we catch who did this . I do not think we will see a change anytime soon. Alix thank you for the perspective on the ground. Still the come, the hsbc whistleblower. The man who lifted the lid on the tax scandal and the 20 billion valuation. We will discuss. Alix a look at our top stories. John kerry will hold a high level meeting. The israeli Prime Minister is in washington preparing for his major before a joint session of congress. The man who took a trove of data from hsbc has proof senior managers knew about tax evasion. He made the allegations in an interview with francine block lacqua. A deal to tell you about this morning. Cardinal health will acquire Johnson Johnson unit. Cardinal seized the deal closing towards the end of this year. Hillary clintons longawaited and is reportedly near. The wall street journal says she might make her president ial bid official estimates april. It would speed up her fundraising. A president ial announcement also expected from marco rubio. Three Los Angeles Police officer shot and killed a man during a struggle over a gun. The struggle was caught on video. The lapd says it will use the video in its investigation. Those are your top stories. Air b b just raised a new round of financing. This puts the company on par with some of the Largest Hotel chains in the United States. It is backed up against the market brands, like Marriott Hilton and his worst seven times more than that. Lets get some reaction. Bruce ratner, 20 billion . Bruce you are taking an inefficient industry and it is a terrific, amazing, remarkable thing. 20 billion is a high number. The more we can help people for less people, the better it is for everyone. Alix will it hurt the rental business . I do not think so. I do not think it affects that in any major way. Alix you added we work. Tellis about why and what you think the growth could be. Bruce a company that begins to do things more efficiently is an excellent idea. It is an idea that has been around, but he is taking it to a new level. Fewer amount of square feet are used per person. We have more vacancy. It is great for startups and allows them to share and network. It is a good thing. Alix they take over the floor of a building and a parcel it into smaller offices and they rent them out to entrepreneurs. Does this make areas that we have not thought about good developments . And when going to see something am i going to see something . Bruce they will put something in spaces that are not necessarily the most popular spaces in the city. It is connection of the user to another user. They have everything from Legal Services available to health care available, food networking, computers backandforth. It is a Membership Organization and that is the key. Alix when you look at the marketing properties, what point do you say bubble . Bruce it is doing careful growth. It has a nice market cap. It is not excessive. Air b b, i do not know yet. It is catching on pretty fast. It may not be a bubble. It is real services. It is working. Maybe bubble in terms of price but as an idea, not a bubble at all. Alix do you see new businesses in this area . Bruce it is difficult. These are not easy businesses. They are services. You have to provide services. Look at hoover. It has issues of who the drivers are. It has to provide services to their members. These are more an amazon drive. More about execution. That is what i think is significant. It is a bit different. Alix when i drive down flat push, where are the prefab apartments . Bruce there you have it. We started modular a couple of years ago. It has not worked out. We had a difficult time with our partner. We have bought the factory back and we are back in business. We started manufacturing modular pieces that are putting up the building. It should finish in about a year and a half. When you do something new youre going to have falls and trips. Alix Hillary Clinton would you donate . Bruce i would donate. I think she will do well. I think it is good for the country. Alix bruce ratner, casting his vote for Hillary Clinton. Great to see you. Coming up, new data on personal income and spending. We will bring it to you as soon as it breaks. Samsung ups the ante. We will talk about it. Hes out there. Theres a guy out there whose making a name for himself in a sport where your name and maybe a number are what define you. Somewhere in that pack is a driver that can intimidate the intimidator. A guy that can take the king 7 and make it 8. Heck. Maybe even 9. Make no mistake about it. Theyre out there. I guarantee it. Welcome to the Nascar Xfinity series. Alix Warren Buffett and the person who will succeed him. The annual letter to investors was published over the weekend. Plenty of hints for buffet waters. The right person to take his place is already on Berkshire Hathaways board. Charlie monger added to the speculation. As we head towards the opening bell i want to get to scarlet fu. She has futures and focus. Scarlet gold looking to post fourth straight day of gains. This upswing has put gold at a twomonth high. With Central Banks easing Monetary Policy is 2015 the year for the gold . Here is chris, the director of portfolio management. Welcome to on the markets. Central banks are easing Monetary Policy, but i want to start with the technicals of gold. Chris it is a series of higher lows. We saw it hit 1155 and maintain that level that it held most of last year. On this pullback, a lot of these traders see them move up as a move higher. A lot of traders speculate if we see the vicks creep above 18 we will see the 1300 level in the next few months. Scarlet you talked about the relationship with the dollar. Chris it has broken down in the last two quarters. The fact is you had oil go down and the dollar continued to get stronger. Gold still held the level that i was talking about. The fact that it continues to hold, that means that relationship is a little off. A lot of traders are speculating shortening longing the gold index and shortening the dollar index. That puts us in a great position for a full run. Scarlet the fundamentals, we talked about Central Banks. There are a lot of there is a lot of sovereign debt. Almost one third of european sovereign debt has a. Chris there is no yield in gold. I do not want to make that mistake. It becomes more attractive if you are a bond investor. Negative yields do not look as good as taking a chance on gold. Especially since it maintains key levels. The 1500, 1600 level we have seen is going to come back to the table. Scarlet lets go to other factors such as india. India is making changes for reduction of tax on gold. What effect will that have . Chris lower the tax consumption will go up. China is making some moves to allow consumption to grow. India and china, being big gold buyers the appetite will come back to the market,. Scarlet can you quantify what that will mean for volume . Chris an increase of up to 25 . With that increase in consumption, you will see such an appetite hit the futures that 1300 level by next year is going to be a forgot number. Scarlet that would be a breakout. Thank you. Thank you for joining us. Alix lets look at our top stories this morning. John kerry will hold a highlevel meeting with Russian Foreign minister. The secretary of state is expected to discuss ukraine in the meeting with surgery lavrov. In geneva yesterday, kerry met with irans foreign minister looking for a deal that would shutdown Irans Nuclear program. The talks with iran are the focus of Benjamin Netanyahus trip to washington. The israeli Prime Minister will address a joint session of congress tomorrow. He wants any deal to be delayed, saying it would threaten israels security. He is speaking at the invitation of House Speaker john boehner, who did not consult the white house. Kerry says there is no problem between the United States and israel. Secretary kerry i speak to the Prime Minister regularly including yesterday. We dont want to see this turn into a political football. Obviously it was odd if not unique, that we learned of it from the speaker of the house and the administration was not included in the process. Alix kerry says the interface agrees that iran must not build nuclear weapons. The edge has a screen that extends on to the size of the phone. Both phones have Payment Software that is compatible with most part readers. Later today congress will hear from facebook founder mark zuckerberg. In moscow, tens of thousands marched for a murdered political activists. Boris nemtsov was gunned down friday night near the kremlin. He is a former deputy Prime Minister who opposed president vladimir putin. He reportedly been working on report about putins involvement in the ukraine conflict. Putin said he will oversee an investigation into the killing. Iraqi Security Forces are trying to retake the Northern City of tikrit. It includes allied sunni and shiite fighters. The next few weeks will be crucial for the career of citigroup ceo michael corbat. The Federal Reserve will announce whether it will accept the capital plan after rejecting it last year. Corbat said he should be held accountable and some analysts say he may lose his job if citi fails a second time. Breaking news on personal income and spending data. Lets go right to julie hyman for the numbers. Julie we did get these numbers a couple minutes delayed because of delayed openings in washington because of weather, but now we have the numbers and it looks like spending and income coming in worse than economists had predicted. Personal income rising only. 3 . We got a little bit of a hint of this from retail sales data, which already came out and came out lower than had been anticipated. Personal spending falling. 2 twice what economists had anticipated. Also we have the pce deflator, essentially a measure of inflation, one that the Federal Reserve pays a lot of attention to. That falling by half of 1 . Prices falling. If you look at that pce core, you see a bit of an increase up. 1 . The income and spending numbers coming in worse than estimated. Also want to mention other headlines. Hewlettpackard is buying aruba networks. This is something that bloomberg had heard was in the works last week. The price on this deal, 2467. It is about 34 higher than the aruba close on february 24 before the possibility, the possible news of this deal came out. Alix want to point out that aruba builds operating systems for wired and Wireless Network infrastructure. A 3 billion deal in equity. Falling crude prices have servicers leading cash. Which rig operators are feeling the most painted and are feeling the most pain. Alix we have got less than an hour until the start of trading. Lets go to our desk where scarlet fu has the movers. Scarlet im starting with the breaking news, hewlettpackard will be buying aruba networks. 24. 67 a share, 34 premium to the left for the news trickled out that hp was interested in this company. It is worth 3 billion in the company says it will close in the second half of this fiscal year. Hp adds that the deal will act to its earnings in the full year. Aruba networks is down because the price tag, 24. 67, there was speculation that this was in the cards. Plenty of m a to talk about. Cordis is a business that makes cardiology and endovascular devices. The price tag here, 1. 49 billion in cash. Cardinal health will be funding this purchase with cash and also 1 billion of new unsecured notes. Finally, lets go back to the tech sector, because nxp semiconductors, i guess company, will be acquiring Free Scale Semiconductor a dutch coming will be acquiring freescale semiconductors. They will get just over one third of each annexed the each nxp share that they hold as well. Stocks moving on m a monday. Alix m a monday, they call it that for a reason. Crude prices coming off another week of losses ending the steepest drop off in drilling on record. All of this means huge pain for oil services companies. Bloomberg News Reporter david wesley joins me now. David what is the first country that is going to go out of business . David hard to know what the first one will be, but h

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