Transcripts For BLOOMBERG In The Loop With Betty Liu 2015030

East and africa were disappointed. U. S. Saw the kleins of 4 u. S. Saw declines of 4 asia, middle east and africa saw declines of 4. 4 this read is not something investors would like to hear. If you look at the share price it is down by 1. 8 . Betty and it might go lower given these numbers. U. S. Sales down 4 . Incredible. Scarlet mcdonalds japans february same store sales fell 29 . A sense of the challenges mcdonalds faces. Mcdonalds had some issues in japan, particularly they could not sell french fries because of the port strike on the west coast. That gives you a sense of the difficulties in the asiapacific region. Betty and the difficulties for Steve Easterbrook as he takes the helm. Thank you, scarlet. Lets look at top stories. Europes central bank taking the first steps towards boosting price growth in the region. The ecb buying german and italian bonds. Those insecurities and french notes are being bought. A part of quantitative easing. Officials saying the new greek plan to avoid default does not measure up. Finance ministers are studying the plan to settle with creditors. The eurogroup chairman says reforms are far from complete. Without more eight, greece could one out of money without more aid, greece could run out of money. Chinas exports surged. Chinese imports dropped. Some republican senators jumping into the iran nuclear debate. They sent a letter saying any deal with the president will not hold up after hea leaves office. The president says the u. S. Will walk away if iran cannot prove it is not Building Nuclear bombs. President obama if there is no deal, we cannot verify they are not going to obtain a nuclear weapon, theres a breakout period so even if they cheated we would be able to have enough time to take action. If we do not have that kind of deal we are not going to take it. Betty negotiations are scheduled to resume next week. A moscow Court Indicts 5 men in the murder of an opposition leader. The suspects are all from chechnya. They are charged in the killing of Boris Nemtsov last month. Nemtsov was gunned down within sight of the kremlin. Visit your top headlines. Apple set to unveil its watch in california today. In 5 hours, can you wait . What we can expect to see from apple and will it proved to be as big of a hit to the companys bottom line as weve seen with the iphone . Im joined by bloomberg west editor at large cory johnson who is in San Francisco. Cory, the thing ive been hearing most about which is going to be the catch is the price point of this watch. Cory first of all, we do not have to wait to see it because we already saw it. This is a ran announcement. They unveiled the thing once. We know theres going to be a focus on a basic watch, a fitness watch or sport watch and what they call the edition the goldplated watch. The average selling price will reflect a weight on the more expensive watch they will sell fewer of. The sport watch, the edition is 18 caret gold. Who knows, 5,000 . Your midpoint price is probably going to be about 525. That will reflect the sport watch. Sport and fitness is going to be a big focus. One sources telling me countries that make apps one source is telling me companies that make apps will be featured. People map workouts and measure their intensity levels, imagine combining that with a heart monitor. I think that is the kind of thing the reannouncement will lean on. Betty lets get excited. It is bright and early. We want people to get excited. We do know how the smart watch market has performed. It has not really been that great. 5 million have been sold of other watches. The pedal watch, which was the first, has only sold about one million since 2013. How big is this market . Cory companies have been out this for a long time. I remember during the dot com bubble. Smart watches are nothing new. What weve seen apple do in the past, the iphone, they came into a crowded market with a product that initially looked different but not completely new. When they came out with their applet youve read or that they called the ipad. That thinks a lot about 7 million or 7. 5 Million Units in its first year. Our expectations, if we set down as low as the iphone and ipad the first year, the iphone sold fewer than 2 Million Units. Right now, the average is about 14 Million Units protected for the iwatch. That seems high to me. If they sell half of that they will have a decent business to go on. A lot of developers are going to wait this out and see what kind of installed go before they put effort into the new operating system. Betty thanks so much, cory johnson. The stakes are high for tim cook. Someone who knows about highstakes is my guest, aereo founder and chief executive officer chet kanojia who spent much of the last few years trying to change the weight you watch broadcast television with some antennas. Only to be sorted by only to be thwarted by the Supreme Court in a highprofile case. We are excited about the apple watch. What are you going to be listening for . Chet kanojia i think it is going to be fantastic. For running, bicycles, golf which is a passion of mine, the idea that it can tell me how my swing is doing is going to be incredible. Betty you need help with golf . Chet kanojia everyone does. The overlooked part of this that people are not talking about is going to create, it is a difficult problem. It is a new way of communicating from the device to humans. Betty because it is going to help propel the internet of things idea . Chet kanojia communications without having to take out your telephone, look at things. Which is the apple motto, make it simple and easy. Blend it to your life. The idea is a new frontier. Betty how far away are we from what people see as you walk in and you control everything either through your device or through your watch. Every single thing around you is going to be controlled by one. How far away are we . Chet kanojia it is already having me. Apple is a Great Company that looks at what is already developed and integrates. You look at keyless car entry. That is upon us. Every car i have you turn a now been off you go. Simplifying that, payments is another great area. It is already happening. Just my fingertip. Thursday are in the next 5, 7 or 10 years. Betty this is still a consumer facing product. What will be the biggest some blue block the biggest stumbling block . The price, the battery, how many apps . Chet kanojia if the focus is exclusively fitness it is not going to go far. Many americans, fitness is not on the top of the list. Im glad mcdonalds is coming down. I think it is going to be communication. Humans like to communicate. They will find novel ways to communicate. Betty does that mean using the smart watches the same way you use your phone. Having the right apps . Chet kanojia it as a platform where it can solve everybodys needs and slightly different ways. A cool factor, the luxury factor. Apple does a great job. Betty sounds like youre a buyer . Chet kanojia probably two. Betty aereo founder chet kanojia staying with me. Tech startups raising money as if there is no tomorrow. Are we in a tech bubble or Something Different . General motors avoids a battle within activist investor. Gm will return 25 billion some of its 25 billion cash to shareholders. Betty our top stories. General motors will buy back 5 billion of shares by the end of next year. Part of a deal with harry wilson. Wilson is giving up his request for a seat on gms board after striking a deal. Wilson works with 4 hedge funds that own more than 2 of gm shares. Officials investigating the landing at laguardia focusing on the brakes. Federal officials have talked to the pilots and checked flight recorders. The plane hit a fence and stopped shy of the icy bay. Scary. A year since Malaysian Air flight 370 disappeared. A report says the battery on the planes locator expired before the disappearance. That hurt efforts to find the plane after it went missing. Crews are searching for the missing aircraft. Islamic state militants reportedlyhave boko haram has pledged allegiance to islamic state. Boko haram is under pressure in africa and has been dislodged from towns by a multinational force. The pledge was made in arabic with english subtitles. In madison wisconsin, a vigil for an unarmed black teenager killed by a white Police Officer. Officials say the Police Officer shot the teenager after he was assaulted. Several days after the Justice Department said it would not press charges against an officer who shot a black teenager in ferguson. Before a selloff last week, the s p capped its sixth year of a bull run. Apple gained admission to the dow friday. Nasdaq topped 5000 for the first time in 15 years. Highflying tech stocks are igniting questions about bubbles. Do you remember the mark cuban quote . If we thought it was stupid to invest in public internet websites that had my chance of succeeding, it is worse today. The bubble comes from private investors. With us is aereo founder chet kanojia. Hes been Building Company since the dot com era. Chet, are you seeing signs of a bubble . Chet kanojia it feels like it. I think the difference being it is not public companies, which hopefully reduces exposure to large Financial Institutions and most retail investors. The numbers, the valuations are scary. Betty the valuations, you mean for uber or airbnb and others . Chet kanojia all the valuations are based on the promise of what is going to come. That is the nature of the beast. If you value on current value you are not going to get much. Betty youre not going to raise much money. Chet kanojia when Public Markets dry of the ability to raise capital goes away and execution suffers. Betty mark cuban made a great point about how this is private capital. The Angel Investors and crowdfunding. If they fail, if private companies fail, do we really care . It is private investors who get sacked. Is that going to affect the Public Markets . Chet kanojia i dont think it is that direct a correlation. Its not Angel Investors that are going to get hit. Most angels write a check betty its the vcs. Chet kanojia it is large funds coming out of University Endowments and things of that. Acis on that basis. Most endowments 1 or 2 goes towards vc. Im not sure thats going to have an impact. They are getting 12 returns on the equity market. The rebalance will happen. You are looking at probably a seven year or 10 year cycle. Most funds operate on a seven or 10 year horizon. Betty bring that screen up again. Chet, look at this. Just to remind viewers how much these companies are value. Those are the king now. Airbnb, it is a great service. Did you take uber . Chet kanojia i took the train. Betty airbnb, 20 billion. Snapchat, 19 billion. Pinterest, 11 billion. Some other companies on the public market. Gm is 60 billion. Theyre bigger but not much bigger. When you look at the companies you say . Chet kanojia i do not think any of us have a true view into what is going on but if a company is doing 10 billion of revenue and generating Free Cash Flow and growing at 20 , why not . The math makes a lot of sense. The question is how much do you get to growth. All the companies are in nascent stages. My only comment is raise as much as you can. I raised, my First Venture round in the two weeks after nasdaq crashed, i had no idea how bad it was going to get. I still thought it was going to be ok. A year later my board sat me down and said turn cash flow positive, that is the only way youre going to survive. Betty an interesting story. Youve been Building Company since then. You raised 100 million with aereo. What was the biggest difference between 1998, right before the dot com bubble and the crash to now . Chet kanojia theres not a lot of difference except the numbers have gotten bigger. Back then if you are building an Enterprise Software company you had to about a salesforce and all the stuff. Today, you do not do any of that. Its all in the cloud. Its the scaling costs that get you. The reason pinterest and Companies Need capital is because the scaling costs are high. You do not have to have 10,000 salesmen but you need 10,000 or one million servers and that costs money. Betty stay with you, aereo founder, chet kanojia. It was once the tallest building in america. Now a wall street firm is on the verge of buying it. Stocks coming off their worst day in two months. A 6year bull run, what is moving this morning, including mcdonalds. Betty you are watching in the loop. Streaming on mobile and bloomberg. Com. Todays big number, 1. 5 billion. That is what Blackstone Group is prepared to spend on the willis tower in chicago. It would be a record sale for the city. Blackstone has a preliminary agreement to buy the 110story skyscraper. The building once known as the sears tower, i still want to call it that. 1,450 feet tall. Once the tallest building in america until the one World Trade Center was built. 26 minutes past the hour bloomberg is on the markets. Scarlet fu . Scarlet futures in focus. Gold is rebounding from a threemonth low. With the u. S. Lower market showing strength and increasing prospects of a june Interest Rate increase, what kind of demand is therefore assets like gold . Todd horwitz joins me from the cme. Gold prices reflect the risk on risk of trade. Risk coming off on friday and the Federal Reserve increasing Interest Rates as soon as june. What is the prospect for a safe haven trade of gold versus treasuries . Todd when i look at gold i look at gold as a true commodity. It is a currency but i think it is a great spot and a great investment. As the fed has indicated, as the fed funds rate says, Interest Rates are going to go higher. It put pressure on gold. Because of the overall strength in the u. S. Dollar. The dollar is becoming too high, forcing commodity prices. Especially ones like gold. Gold itself is taking its best shot from the real strong u. S. Dollar. I cant see the dollar getting much stronger based on what is going on with the gold economy. Gold is in a sweet spot. It could past 11. 60 or 11. 40. A great spot to start buying gold. Scarlet what price range are you looking at gold to trade at within the next six months or a year . Todd i could see 1300 to 1400. I could only see it going down there 1120. Riskreward says gold is a good safe haven play. Money will start to come out of the equity market as the bull market gets long. Gold is a spot people will be trying to get into. Ill buy gold around 1170. 1160, no problem. Our target is 1220. We see a run back to 1300. Scarlet you would be a buyer of gold at 1172. You think gold futures are heading back to 1200 a move of 28. Youd be making a profit of 2800 dollars per contract on the straight. This trade. Weve got the fomc announcement do we expect gold will trade range bound independent of the dollar . Todd i think thats probably the case. Gold is very dependent on what the dollar is doing. But in my opinion, gold has taken a great shot. Like a boxer has been pounded down. Now the possible fed funds raising rates, which would put more pressure on gold. Its seen the lows. I think it does look to work higher. Range bound to hire would be my desktop. Scarlet lets get to the word of the week. We often hear spot. Can you explain that in the futures world versus cash world. Todd spot and cash commodity are the same thing. When a future expires it goes to what they call cash or spot. When you get a quote, if you go to your gold dealer and wants to buy physical gold they will give you a price based on spot gold. Which is the cash in which we have to buy it for. Not the future, futures usually trade at a premium to spot. When you are getting physical gold, you get the spot price plus the Commission Record charges. When every commodity or future settles, it settles to the spotter cash price. Scarlet todd horwitz from the cme. Ill be back with more morning Market Movers in a couple minutes. Betty thanks. A look at other top stories. Apple enters the fashion business. Tim cook unveiling the smart watch at an event in San Francisco at 1 00 p. M. Eastern. They will have a rectangle or touch screens. Prices reportedly starting at 349. Some analysts say apple could sell 14 Million Units in the next year. Far shy of what they sell and i cents. Europes central bank taking steps towards boosting price growth. The ecb buying german and italian bonds. A key part of the banks longrange quantitative easing plan. Some european Officials Saying greeces deal to avoid default may not add up. Finance ministers are studying the plan to settle with creditors. The eurogroup chairman says the reforms are far from complete. Without mark without grace could run out of cash later this month. Republican lawmakers make a scandal over Hillary Clintons email records. They say she has no email messages from the day that happened. It is sparking new criticism and president obama told cbs that he did not know about that until he heard the news report. President obama the policy is to include transparency and that is white my emails on the blackberry that i carry around all of those records are available and archived. Betty no private emails for the president. The major Credit Report agencies say they will make big changes to catch errors and improve accuracy. The companys reforms were demanded by the new york states attorney general. The agreement will help protect consumers nationwide. A top cycling organization admits turning a blind eye to Lance Armstrongs cheating areas it is from the new leaders of the Steve Easterbrook<\/a> as he takes the helm. Thank you, scarlet. Lets look at top stories. Europes central bank taking the first steps towards boosting price growth in the region. The ecb buying german and italian bonds. Those insecurities and french notes are being bought. A part of quantitative easing. Officials saying the new greek plan to avoid default does not measure up. Finance ministers are studying the plan to settle with creditors. The eurogroup chairman says reforms are far from complete. Without more eight, greece could one out of money without more aid, greece could run out of money. Chinas exports surged. Chinese imports dropped. Some republican senators jumping into the iran nuclear debate. They sent a letter saying any deal with the president will not hold up after hea leaves office. The president says the u. S. Will walk away if iran cannot prove it is not Building Nuclear<\/a> bombs. President obama if there is no deal, we cannot verify they are not going to obtain a nuclear weapon, theres a breakout period so even if they cheated we would be able to have enough time to take action. If we do not have that kind of deal we are not going to take it. Betty negotiations are scheduled to resume next week. A moscow Court Indicts<\/a> 5 men in the murder of an opposition leader. The suspects are all from chechnya. They are charged in the killing of Boris Nemtsov<\/a> last month. Nemtsov was gunned down within sight of the kremlin. Visit your top headlines. Apple set to unveil its watch in california today. In 5 hours, can you wait . What we can expect to see from apple and will it proved to be as big of a hit to the companys bottom line as weve seen with the iphone . Im joined by bloomberg west editor at large cory johnson who is in San Francisco<\/a>. Cory, the thing ive been hearing most about which is going to be the catch is the price point of this watch. Cory first of all, we do not have to wait to see it because we already saw it. This is a ran announcement. They unveiled the thing once. We know theres going to be a focus on a basic watch, a fitness watch or sport watch and what they call the edition the goldplated watch. The average selling price will reflect a weight on the more expensive watch they will sell fewer of. The sport watch, the edition is 18 caret gold. Who knows, 5,000 . Your midpoint price is probably going to be about 525. That will reflect the sport watch. Sport and fitness is going to be a big focus. One sources telling me countries that make apps one source is telling me companies that make apps will be featured. People map workouts and measure their intensity levels, imagine combining that with a heart monitor. I think that is the kind of thing the reannouncement will lean on. Betty lets get excited. It is bright and early. We want people to get excited. We do know how the smart watch market has performed. It has not really been that great. 5 million have been sold of other watches. The pedal watch, which was the first, has only sold about one million since 2013. How big is this market . Cory companies have been out this for a long time. I remember during the dot com bubble. Smart watches are nothing new. What weve seen apple do in the past, the iphone, they came into a crowded market with a product that initially looked different but not completely new. When they came out with their applet youve read or that they called the ipad. That thinks a lot about 7 million or 7. 5 Million Units<\/a> in its first year. Our expectations, if we set down as low as the iphone and ipad the first year, the iphone sold fewer than 2 Million Units<\/a>. Right now, the average is about 14 Million Units<\/a> protected for the iwatch. That seems high to me. If they sell half of that they will have a decent business to go on. A lot of developers are going to wait this out and see what kind of installed go before they put effort into the new operating system. Betty thanks so much, cory johnson. The stakes are high for tim cook. Someone who knows about highstakes is my guest, aereo founder and chief executive officer chet kanojia who spent much of the last few years trying to change the weight you watch broadcast television with some antennas. Only to be sorted by only to be thwarted by the Supreme Court<\/a> in a highprofile case. We are excited about the apple watch. What are you going to be listening for . Chet kanojia i think it is going to be fantastic. For running, bicycles, golf which is a passion of mine, the idea that it can tell me how my swing is doing is going to be incredible. Betty you need help with golf . Chet kanojia everyone does. The overlooked part of this that people are not talking about is going to create, it is a difficult problem. It is a new way of communicating from the device to humans. Betty because it is going to help propel the internet of things idea . Chet kanojia communications without having to take out your telephone, look at things. Which is the apple motto, make it simple and easy. Blend it to your life. The idea is a new frontier. Betty how far away are we from what people see as you walk in and you control everything either through your device or through your watch. Every single thing around you is going to be controlled by one. How far away are we . Chet kanojia it is already having me. Apple is a Great Company<\/a> that looks at what is already developed and integrates. You look at keyless car entry. That is upon us. Every car i have you turn a now been off you go. Simplifying that, payments is another great area. It is already happening. Just my fingertip. Thursday are in the next 5, 7 or 10 years. Betty this is still a consumer facing product. What will be the biggest some blue block the biggest stumbling block . The price, the battery, how many apps . Chet kanojia if the focus is exclusively fitness it is not going to go far. Many americans, fitness is not on the top of the list. Im glad mcdonalds is coming down. I think it is going to be communication. Humans like to communicate. They will find novel ways to communicate. Betty does that mean using the smart watches the same way you use your phone. Having the right apps . Chet kanojia it as a platform where it can solve everybodys needs and slightly different ways. A cool factor, the luxury factor. Apple does a great job. Betty sounds like youre a buyer . Chet kanojia probably two. Betty aereo founder chet kanojia staying with me. Tech startups raising money as if there is no tomorrow. Are we in a tech bubble or Something Different<\/a> . General motors avoids a battle within activist investor. Gm will return 25 billion some of its 25 billion cash to shareholders. Betty our top stories. General motors will buy back 5 billion of shares by the end of next year. Part of a deal with harry wilson. Wilson is giving up his request for a seat on gms board after striking a deal. Wilson works with 4 hedge funds that own more than 2 of gm shares. Officials investigating the landing at laguardia focusing on the brakes. Federal officials have talked to the pilots and checked flight recorders. The plane hit a fence and stopped shy of the icy bay. Scary. A year since Malaysian Air<\/a> flight 370 disappeared. A report says the battery on the planes locator expired before the disappearance. That hurt efforts to find the plane after it went missing. Crews are searching for the missing aircraft. Islamic state militants reportedlyhave boko haram has pledged allegiance to islamic state. Boko haram is under pressure in africa and has been dislodged from towns by a multinational force. The pledge was made in arabic with english subtitles. In madison wisconsin, a vigil for an unarmed black teenager killed by a white Police Officer<\/a>. Officials say the Police Officer<\/a> shot the teenager after he was assaulted. Several days after the Justice Department<\/a> said it would not press charges against an officer who shot a black teenager in ferguson. Before a selloff last week, the s p capped its sixth year of a bull run. Apple gained admission to the dow friday. Nasdaq topped 5000 for the first time in 15 years. Highflying tech stocks are igniting questions about bubbles. Do you remember the mark cuban quote . If we thought it was stupid to invest in public internet websites that had my chance of succeeding, it is worse today. The bubble comes from private investors. With us is aereo founder chet kanojia. Hes been Building Company<\/a> since the dot com era. Chet, are you seeing signs of a bubble . Chet kanojia it feels like it. I think the difference being it is not public companies, which hopefully reduces exposure to large Financial Institutions<\/a> and most retail investors. The numbers, the valuations are scary. Betty the valuations, you mean for uber or airbnb and others . Chet kanojia all the valuations are based on the promise of what is going to come. That is the nature of the beast. If you value on current value you are not going to get much. Betty youre not going to raise much money. Chet kanojia when Public Markets<\/a> dry of the ability to raise capital goes away and execution suffers. Betty mark cuban made a great point about how this is private capital. The Angel Investors<\/a> and crowdfunding. If they fail, if private companies fail, do we really care . It is private investors who get sacked. Is that going to affect the Public Markets<\/a> . Chet kanojia i dont think it is that direct a correlation. Its not Angel Investors<\/a> that are going to get hit. Most angels write a check betty its the vcs. Chet kanojia it is large funds coming out of University Endowments<\/a> and things of that. Acis on that basis. Most endowments 1 or 2 goes towards vc. Im not sure thats going to have an impact. They are getting 12 returns on the equity market. The rebalance will happen. You are looking at probably a seven year or 10 year cycle. Most funds operate on a seven or 10 year horizon. Betty bring that screen up again. Chet, look at this. Just to remind viewers how much these companies are value. Those are the king now. Airbnb, it is a great service. Did you take uber . Chet kanojia i took the train. Betty airbnb, 20 billion. Snapchat, 19 billion. Pinterest, 11 billion. Some other companies on the public market. Gm is 60 billion. Theyre bigger but not much bigger. When you look at the companies you say . Chet kanojia i do not think any of us have a true view into what is going on but if a company is doing 10 billion of revenue and generating Free Cash Flow<\/a> and growing at 20 , why not . The math makes a lot of sense. The question is how much do you get to growth. All the companies are in nascent stages. My only comment is raise as much as you can. I raised, my First Venture<\/a> round in the two weeks after nasdaq crashed, i had no idea how bad it was going to get. I still thought it was going to be ok. A year later my board sat me down and said turn cash flow positive, that is the only way youre going to survive. Betty an interesting story. Youve been Building Company<\/a> since then. You raised 100 million with aereo. What was the biggest difference between 1998, right before the dot com bubble and the crash to now . Chet kanojia theres not a lot of difference except the numbers have gotten bigger. Back then if you are building an Enterprise Software<\/a> company you had to about a salesforce and all the stuff. Today, you do not do any of that. Its all in the cloud. Its the scaling costs that get you. The reason pinterest and Companies Need<\/a> capital is because the scaling costs are high. You do not have to have 10,000 salesmen but you need 10,000 or one million servers and that costs money. Betty stay with you, aereo founder, chet kanojia. It was once the tallest building in america. Now a wall street firm is on the verge of buying it. Stocks coming off their worst day in two months. A 6year bull run, what is moving this morning, including mcdonalds. Betty you are watching in the loop. Streaming on mobile and bloomberg. Com. Todays big number, 1. 5 billion. That is what Blackstone Group<\/a> is prepared to spend on the willis tower in chicago. It would be a record sale for the city. Blackstone has a preliminary agreement to buy the 110story skyscraper. The building once known as the sears tower, i still want to call it that. 1,450 feet tall. Once the tallest building in america until the one World Trade Center<\/a> was built. 26 minutes past the hour bloomberg is on the markets. Scarlet fu . Scarlet futures in focus. Gold is rebounding from a threemonth low. With the u. S. Lower market showing strength and increasing prospects of a june Interest Rate<\/a> increase, what kind of demand is therefore assets like gold . Todd horwitz joins me from the cme. Gold prices reflect the risk on risk of trade. Risk coming off on friday and the Federal Reserve<\/a> increasing Interest Rate<\/a>s as soon as june. What is the prospect for a safe haven trade of gold versus treasuries . Todd when i look at gold i look at gold as a true commodity. It is a currency but i think it is a great spot and a great investment. As the fed has indicated, as the fed funds rate says, Interest Rate<\/a>s are going to go higher. It put pressure on gold. Because of the overall strength in the u. S. Dollar. The dollar is becoming too high, forcing commodity prices. Especially ones like gold. Gold itself is taking its best shot from the real strong u. S. Dollar. I cant see the dollar getting much stronger based on what is going on with the gold economy. Gold is in a sweet spot. It could past 11. 60 or 11. 40. A great spot to start buying gold. Scarlet what price range are you looking at gold to trade at within the next six months or a year . Todd i could see 1300 to 1400. I could only see it going down there 1120. Riskreward says gold is a good safe haven play. Money will start to come out of the equity market as the bull market gets long. Gold is a spot people will be trying to get into. Ill buy gold around 1170. 1160, no problem. Our target is 1220. We see a run back to 1300. Scarlet you would be a buyer of gold at 1172. You think gold futures are heading back to 1200 a move of 28. Youd be making a profit of 2800 dollars per contract on the straight. This trade. Weve got the fomc announcement do we expect gold will trade range bound independent of the dollar . Todd i think thats probably the case. Gold is very dependent on what the dollar is doing. But in my opinion, gold has taken a great shot. Like a boxer has been pounded down. Now the possible fed funds raising rates, which would put more pressure on gold. Its seen the lows. I think it does look to work higher. Range bound to hire would be my desktop. Scarlet lets get to the word of the week. We often hear spot. Can you explain that in the futures world versus cash world. Todd spot and cash commodity are the same thing. When a future expires it goes to what they call cash or spot. When you get a quote, if you go to your gold dealer and wants to buy physical gold they will give you a price based on spot gold. Which is the cash in which we have to buy it for. Not the future, futures usually trade at a premium to spot. When you are getting physical gold, you get the spot price plus the Commission Record<\/a> charges. When every commodity or future settles, it settles to the spotter cash price. Scarlet todd horwitz from the cme. Ill be back with more morning Market Movers<\/a> in a couple minutes. Betty thanks. A look at other top stories. Apple enters the fashion business. Tim cook unveiling the smart watch at an event in San Francisco<\/a> at 1 00 p. M. Eastern. They will have a rectangle or touch screens. Prices reportedly starting at 349. Some analysts say apple could sell 14 Million Units<\/a> in the next year. Far shy of what they sell and i cents. Europes central bank taking steps towards boosting price growth. The ecb buying german and italian bonds. A key part of the banks longrange quantitative easing plan. Some european Officials Say<\/a>ing greeces deal to avoid default may not add up. Finance ministers are studying the plan to settle with creditors. The eurogroup chairman says the reforms are far from complete. Without mark without grace could run out of cash later this month. Republican lawmakers make a scandal over Hillary Clintons<\/a> email records. They say she has no email messages from the day that happened. It is sparking new criticism and president obama told cbs that he did not know about that until he heard the news report. President obama the policy is to include transparency and that is white my emails on the blackberry that i carry around all of those records are available and archived. Betty no private emails for the president. The major Credit Report<\/a> agencies say they will make big changes to catch errors and improve accuracy. The companys reforms were demanded by the new york states attorney general. The agreement will help protect consumers nationwide. A top cycling organization admits turning a blind eye to Lance Armstrongs<\/a> cheating areas it is from the new leaders of the International Cycling<\/a> union areas they say they ignored hints of armstrongs doping because of his superstar stats. Those are your top headlines. Tivo aims to pick up where aereo left off. The bargain deal they got at the asset auction. The pilots of this airplane looking for a place in the history books. They hope to fly around the World Without<\/a> spending one dime on fuel. Betty even though the Supreme Court<\/a> powered down aereo, they still changed how tv is watched. They sold part of their assets for 2 billion, less than before the Company Expected<\/a> to raise. Tivo played paid to my dollars for their customer base. Rpx got their patent portfolio for 225,000. Also joining us is bloombergs alex sherman who covers the cable and Television Business<\/a> for us here at bloomberg. Are you slightly disappointed with the price. I think i was disappointed in june. Betty girl this is the cherry on top. Betty do you think the Supreme Court<\/a> case had a lot to do with weighing down the value . Absolutely and i think the courts had a lot to prevent the technology from succeeding. In hindsight, are you surprised . Higher member covering this and talking to broadcasters at the time and they said we will not let this thing succeed. They said it was dead in the water and it sort of played out how they said, are you surprised by that . Not necessarily it made it to the Supreme Court<\/a> in record time and at the end of the day it was 63. A couple of votes this way and it couldve been a different outcome. I think the foregone conclusion that the media had or the broadcasters had was not what the truth was. In circuit courts we went all the way to the Supreme Court<\/a> so it was pretty close. Betty what is your view of the broadcasters after this . It is inevitable that they have to be online and outside selling the product directly to the consumer and now you look at sling. The bundle is getting reformed without broadcast tv. It is a shame because this could have been a true opportunity to be in front of these consumers. Charley doing a fantastic job of accumulating his customers but what is missing is the network television. Either the demographic will be 65 and dead because nobody under the age of 25 that i know runs around and says i got a cable tv bundle. They are pick and choose and get an front as effectively as you can. Betty but the broadcasters would respond and say their content is high and and well produced and nobody is able to make that kind of content. I have 210yearold boys and i watch the content that they watch and i feel stupid because everything there watching is dumb. So i think the broadcasters have a case for highend content. The problem is that the word of good enough is an interesting evolution. In for the late 90s everyone was investing a great deal in voice over ip. They spent tens of millions of dollars with something called echo cancellation. Then came skype and the awful voice quality got hundreds of millions of users and nobody uses voip anymore. That is the problem, convenience wins over quality any day of the week. Did charlie and organ ever approach you and say this sling product and your product would work nicely . I cannot comment on private conversations but we thought of the world very similarly as the growing population of the world will not subscribe to products in a conventional way. The people who are used to that product will age out. It will be a 10 year or 30 year curve. There is a lot of money to be made in the curve so i dont begrudge People Holding<\/a> onto it but looking forward, you have hbo over the top now and sling overthetop, what is next . Betty have you feel about tivo grabbing your customer list . Good for them. They recognize the same thing that we did which is there are a bunch of people who want broadcast tv and want to be able to carve out netflix and other things overthetop and it makes a lot of sense. You feel like aereo was treated fairly . We on sit back and say fair or unfair we took a big shot and we were right on the merits. Im not a lawyer but i think Justice Scalias<\/a> dissent was absolutely correct was that this is so results driven and was not the law. If people felt the situation was unfair congress should have changed it. But technically speaking the dissent was dead right. Your fabricating going off of 1960s staffers memo of what the intent could have been is what the decision was based on. From a total legal analysis perspective, on merits it was incorrect. Betty we have to run here but quickly, what are you doing now . We started a new company and do not know the future yet. There are 25 of us and doing experiments is the best way to describe it. Betty in media . We will see you at the Supreme Court<\/a> again. I hope not it was an expensive ride. Betty thank you for joining us and great to see you. The founder of aereo and thanks to alex as well, alex sherman who covers the media. Less than an hour to the start of the markets. Get back to scarlet fu. Scarlett it is backed by 21 million worth of shares changing hands. Jim is joining the buyback bandwagon. Planning to scratches purchase 5 billion of shares by the end of 2015 and driving twice percent of returns on invested capital and will regularly update shareholders on the progress. The investor has the working with the hedge fund to push more cash to shareholders. He had wanted an 8 Million Buyback Program<\/a> but he is happy to give up his request for a board meeting. Gms shares opening higher in global trading. Also we told you help mcdonalds mobile scales fell 1. 7 more than anticipated and declines of more than 4 in u. S. And asia and the only right spot was europe where she shares rose 1. 7 . 1. 01 . Rti but International Metals<\/a> for 2. 4 billion which is about a 50 premium. You can see rti getting to almost 59 in the expanded market. About four months ago it but a u. K. Producer Specialty Metals<\/a> used in jet engines as it tried to get away from the commodity aluminum business. We also have some and a in the gaming industry. The price tag of there is about 36 a share so were seeing plenty of movement there getting a boost of 25 this morning gaming and leisure up by 5 . Betty speaking of metals, coming up would you wear an 18 karat gold apple watch . Betty lets take a look at our top stories. The u. S. Central bank taking the first that toward boosting price growth. Securities are also being bought the key part of the banks longrange quantitative easing plan and european officials are saying the new greek plan to avoid default and the measure of finance ministers are studying the plan to help creditors but the chairman says the proposal forms are far from complete. A milestone in selma, alabama over the weekend. President barack obama and former president george w. Bush were among those marching across the bridge marking the 50th anniversary of Voting Rights<\/a> for black americans. Democratic congress and john woo of georgia to hold suffered a fractured skull 50 years ago. A United States<\/a> senator asserts his innocence. The democratic senator Robert Menendez<\/a> says hes not leaving office even after the Justice Department<\/a> prepares corruption charges against him. Israelis will go to the polls in 10 days and our new indications that Prime Minister<\/a> Benjamin Netanyahu<\/a> is facing a tough fight. The polls show netanyahu and his opponent arnett and neck areas. Airline accidents increase last year even though there were fewer crashes. The Industry Group<\/a> is Airline Disasters<\/a> in 2014 killed 641 people but he doesnt count the malaysia air jet shot down over the ukraine because it is not considered an accident. Some news in the nfl su is about to become the highest paid player in football. Is about the signed with miami in a sixyear deal valued at 114 million to 60 million would be guerin teed. He has been fined eight times in the latest came after his check on the green bay quarterback aaron rodgers. And it is apple day, we will be getting more details on the longawaited watch which is expected to rake in 14 million in sales in the first year alone. The apple watch edition made with 18 caret goal and some reports say could have a serious impact on the precious metal market. Joining me now is bloombergs alec steele. Could it really be a catalyst in the gold market . If. It really depends how heavy this is and the patent is actually opaque. Is it goldplated or made of gold . The idea is it should be twice as hard as the regular Gold Standard<\/a> so there are a lot of questions and i will be looking at how heavy it will be. I give the crude math and broke it down for one gram and it turns out it is about 31 based on 1200 gold prices for 18 caret goal in so if there are 30 grams in one phone that cost could be about a thousand dollars if apple produces one million phones per month that would be 33 tons of gold and a lot of ifs when you talk about this. Piper jaffray says an average selling price could be 7,500. On the lower end of 5000. Betty what is the worry is there enough supply . The real question is will this be jewelry or electronics because electronics demand is falling and jewelry demand is the lifeblood of gold. It makes up 54 of demand. So how do you categorize it . On the margin experts are telling me probably not very mind production was 3000 tons last year and if apple ships a million phones per month that is 397 tons per year. So we totally have enough supply to absorb if we make one million of these phones. However frank combs says it is not about the supply, it is about the perception. The perception. Apple is saying gold is a luxury item and we want to sell it and he says that goes along way. China obviously an enormous market. China and india by the the biggest demand in china eats up 18 karat gold items, especially younger people. About 10 Million People<\/a> in china by a gram of gold each month. That is an enormous number. If that is the target back and be a mover in terms of actual demand and that goes a long way. What you buy if it is old . I dont know. Betty i will have to think about it. The automaker recalling 700,000 cars. We will be back. Betty in china the price of selling cars. And jeff bezos turns to elon musk. Announcer in the loop with betty lou is brought to you by tv a merit trade. Betty welcome back to in the loop. Where 30 days away 30 minutes away from the start of trade. Today is a key part of the banks longrange quantitative easing plan. Some european Officials Say<\/a> the new greek plan to avoid default may not i had up. Finance ministers have been studying the proposal to sell to creditors, however the euro zone of chairman says the proposals are far from complete and without more aid they could run out of cash later this month. Some republican senators are jumping into the base. The president says the u. S. Will walk away from the talks with iran because if they cannot prove they are not Building Nuclear<\/a> bomb. The major Credit Report<\/a>ing agencies say they are going to make it changes the catch jurors and improve accuracy. The companies are aqua fax, experience and trans union. The ap says the deal will help consumers nationwide and those are your top headlines. We are 30 minutes away from the start of trade and i will count you down. Bloombergs alix steel and matt miller joining the this morning. Lets start with number 10. We do this because matt is here. Chrysler doing a second recall a 7003000 minivans and suvs for a suspected ignition switch similar to the gm recall tied to dozens of debt. The cs takeover of chrysler led to a 61 jump in the share price , so again we have seen this before. The bad news of the recalls and the yet the stock price continues to rise because they are selling cars. This recall isnt nearly as bad. It hasnt been tied to any debt. This has only been tied to one accident. In some cases it is been done it three times already. Betty what is going on . They just cannot fix these problems. It seems like another record year of recalls are we going to see car prices go up . Eventually they will have to make better stuff. Will see more and more recalls. Let me just say that car sales are expected to go up the next few years. Betty g. M. Is our number nine a story. G. M. Will buyback 5 billion in shares by the end of 2016. The Share Buyback<\/a> comes after being pressured. Harriet will not give up his request for a board seat. I cannot get him on the phone. Initially he wanted g. M. To use some of its cash to buy that money and shares. He got most of what he wanted. He got most of what he wanted and he will get a big payout from this he gets a piece of the action of 4 of any stock moves up and a quarter of all the holdings and i own 30 miley 30 million shares. He has a 1 million steak an General Motors<\/a> himself. He said i will challenge you for a board seat and i will take a big piece of power unless you give me what i want which is entering a billion dollar Share Buyback<\/a>. Combine the Dividend Increase<\/a> it will be a 10 billion return to shareholders. What matt said because the bell. [laughter] now that we are done talking about cars betty were not done. Number eight is tesla. The carmaker said it may cut 180 of its 600 staff. Tesla entered the chinese car market last year. They said it could be the biggest yet. He did also say lost sales in china were being made up for by stronger sales in the u. S. And europe. Isnt this a problem of charging cars . That is always the problem. It has been a problem market they havent done as well as he forecast was a possibility. They still could do well and end up having 6000 people employed. The issue is that the resurgent middleclass hasnt yet materialized as a super strong base to move forward the economy. Sean and a trade data. Betty if there is any environment that needs electric cars it is china. Number seven, staying with elon musk, the battle of the billionaires. The issue is commercial space flights. A dispute over a patent awarded to the blue origin space company. Nasa astronaut scott kelly is about to go on a yearlong journey aboard iss so i spoke with him earlier this morning and he says the relationship is working with russia and he will be up there with the russian cosmonaut. Lets as far as our working relationship with the russians, not only to cause the not but the management the engineers the scientist and the instructors has only improved over time. Whatever the Political Climate<\/a> is that has been completely transparent to us the working level. The americans and russians can get a want white cat jeff bezos and elon musk and fair enough once a face. That has been the beauty of iss, we learn from every great science diction movie that a drunk russian cosmonaut who we think is insane is the hero of the movie. I think jeff bezos and elon musk could get along personally. Tech companies sue each other over patents all the time. If they can all agree on one thing they all agree that one day we will populate mars. Betty a solar powered airplane took off this morning from abu dhabi with ambitions to be the First Plaintiff<\/a> i run the World Without<\/a> any fossil fuel. Estimates say will take five months and 25 flight days. How cool is that . It is really inspiring. I think it weighs as much as a car. They have two pilots that will be trading on an off season get some sleep. This could have really big potential. They have 1300 pounds of database so as Battery Power<\/a> gets more and more condensed you will need less and less. I feel like 25 flight days over five months are they taking long vacations . Do you get four months off . They stopping to chill . My assumption is that it cannot go very fast. It is only solar power that is my assumption, but i think it would go relatively slowly. It is the 25 flight days betty in other words one of us will be taking this on our next flight. I dont think so. I would do it. It takes seven days to get over the atlantic. Seven days to be up there and it could get cloudy betty lets not jinx it. I will tell you why some are saying that apple watch will be a game changer for the tech industry. Stay in the loop. Betty we continue to count down to the opening bell. It is time for the deep dive at number five. Today we get the dl on the new apple watch. At 1 00 p. M. Eastern time the tech china will begin its first big event of the year and the wearable is in focus. How successful will it be for the company . My next guest believes it is a game changer and says the product could kickstart groundbreaking growth around wearables for numerous tech vendors. I bring you daniel eyes a managing director at the capital markets. This is the Silver Bullet<\/a> product, that technology has been waiting for. Apple is the Gold Standard<\/a> of technology. Theres a lot riding on it not just for apple at the overall industry. So the wearable market is really looking today to being a catalyst to propel the industry. Betty as we were saying before if apple cannot do it than what, forget about wearables . They are the modernday right brothers. Even samsung and microsoft and any Technology Company<\/a> and the ecosystem in terms of wearables they want apple watch to be successful because that can stimulate an ecosystem in the coming years. Betty how terrible if you are the ceo of samsung that you have to look to your competitors to invigorate the market. Because if you yourself have already gone out and sold wearables we know for a fact that the market was 5 million sold last year. Pebble, the infantile of the smart watch had sold only one million since 2013 so, how pathetic that you have to get your arrival to start the market. And look in the mirror and they have to recognize that the reality is apple is miles ahead in terms of World Technology<\/a> and they are the core leader in this market. So it is all related to wearables. If you think about this market 15 20 billion potential market on the road all starts today. Apple needs to open up that door for wearables and competitors need apple to be the trail blazer and to get consumers over the hot. Betty it is 350 going to get consumers over the hot . I think the jury is out a little. It is not about whether they sell 10 Million Units<\/a> are 30 million minutes it is used finally see where core apple consumers go to the watch i do start to move the needle. If that is successful it will on an ecosystem more Wearable Technology<\/a>, apps and apple as we have seen to the last decade plus it is hard to argue with what they have done and that is what a lot of people view this wearable event is of huge inflection white in the industry. Betty you mentioned the projections armor they can sell 10 to 15 million of these watches and apple itself is going into production for 5 million to 6 million. But all of that is nothing compared to 74. 6 million iphones they sold in the last quarter. Its not even the bread at the restaurant. Its not even all of what. That is white is not necessarily about moving the needle from a revenue perspective its about does this open a new category of technology. Yet if a broader than wearables. Its not just a watch is not going to the enterprise in terms of science and other Enterprise Applications<\/a> i think it is not necessarily this in terms of what it is doing for a revenue perspective. It is does it open enter opportunity years down the road. Betty i know it will work with the iphone but could it cannibalize the sales . Not really because you need your actual phone to work with the watch so i think that is something they already thought ahead in terms of cannibalization effect. When you look at some of the other technology there could be some capitalization but at this point for apple it would be more incremental for the industry in terms of Wearable Technology<\/a> and thats why it will really the key for the industry if it is successful and that is what a lot of investors are looking at. Betty so successful you would be that has a long battery life or apps to be loaded on it . First it is showing that the use case is as well as the actual technology, that consumers will line up and buy it. Then the success will be measured in terms of technology and really in terms of unit growth. You start to get that 10 million or 15 million and that is when you get to the point where there is some consumer adoption, betty in order to be a success what does it need to have . It has to do with integrating health and integrating more apps and technology that a consumer could look at a 350 price point and say i could rationalize buying that, it will help my life. Betty help health would be the bottom of my list. I would say if it made it easier for me to pay something or to talk then i would use it. That is apple pay and you start to think about where the technology could lead, eventually you have your watch and youre going to a deli and paying with your watch and your wearable, it will all open up this whole other paradigm shift in terms of consumers. They built the house will consumers come . Betty think you so much. The managing director at sbr capital markets. A lot more ahead including mcdonalds, more than a big mac needed to change sales. Betty lets get back to bringing you the most important stories before the bell. Number four just because the fed is about to raise rates dont count on your money getting returns. Those counting on higher rates to lift returns are being thwarted by higher regulations designed to make the system safer. The idea being that there is more demand in the market but also oversees where the yields look more like more attractive here than elsewhere so there is more demand and not a lot of some lie and jpmorgan at saint demand will jump as much as 900 and dollars in the next he could month. I think the regulation part of it is even more interesting, but as it ties into the next story that you read, i think it is a fascinating topic that would seem boring but to the people who are interested betty as the demand for the shortterm debt continues the bottom line is shorter supply. These are unintended consequences that youre seeing from unintended regulation and basel and the kind of qe programs that we operated. Betty how does all of this type to mcdonalds . He meant number two. Betty i was saying i wonder what matt is meeting about this. People have to eat at mcdonalds because they are not making any damn money. Betty we heard mcdonalds dropped 4 in the u. S. The challenge faced by the new ceo the mcdonalds better in who took over as ceo this month. You cannot blame him. Not at all that did you read the article in the New York Times<\/a> over the weekend, it was truly fascinating. I really deep dive into the logistics of where they go wrong and why the u. S. Markets are different than markets abroad. Case and point, analysts that i talked to say we like the customization of mcdonalds you can make your own burger but they put the cost of about 100,000 per store which is a lot of money for a franchisee and there is the battle. You are using the term burger very loosely. Im not sure what is in there all beef patty. It is a burger. It is not very good. Although the numbers have been shocking, this has been forecast for a long time people are going to places with higherquality food. Betty the story matt was referring to, europes centralbank and ecb is reportedly buying german and Italian Government<\/a> bonds. Meanwhile officials are saying the surprised may not add up. Didnt they work this out . The interesting part here is the greek government could hold a referendum if the Council Rejects<\/a> their terms. I think it is more interesting that the ecb is already buying debt in the few remaining markets that have positive yields. They are buying in germany. Germany is yielding 3 on the 10 year. Italy is yielding 1. 3 . I just tweeted out a great chart that jon ferro sent me showing how many countries in the court are showing negative yields. Betty as we near the opening bell futures are slightly higher. Betty welcome back to in the loop lets take a look at the most important stories you need to know before the ringing bell. Lets get to number one. A birthday to celebrate, happy birthday to the bull market. The u. S. Stock rally turns six years old today. The thing that kills bull markets is euphoria. That has yet to surface. He predicts it will climb to 2240 in the next three to six months. He is all in here. Talking to some economists, they say the result of lower rates across the world plus negative yields are really going to push a lot of money into u. S. Equities as well as treasuries over the next few years in an unprecedented way. We dont know at all what is going to happen. Ive been hearing this crop up. Certainly we help from the central bank and the zero interest policy but one thing to remember is that companies have been spending inordinate amounts of money buying back shares and driving the market. Last year the amount of money that company spent on Share Buyback<\/a>s was six times the amount of net deposits by customers. That money is very lopsided. The downside there is that companies have a bad track record of timing purchases. Speaking of a track record this will be a quarter in which we will see earnings fall again. Profits are actually expected to fall for two quarters in a row. Not earnings but profits. One strategist who believes this bull run will continue, i want to bring you someone who says we are set for a pullback. The global chief investment strategist joining us at the from citibank joining us. As we hear the opening bell. Guest this is the nearterm where markets and to get used to the fact that the fund rates will be above zero in the United States<\/a> and 16 at a seven policy makers expect tightening this year and the upside in the u. S. Is that pricing has become more difficult. It is a more volatile backdrop. Tightening will be very asymmetric we are not going to have asset cells sales and nearly 4 trillion to the Balance Sheet<\/a> and i dont think the American Economy<\/a> as a downturn for at least a couple more years. I think this is temporary and i would expect profits to rise not fall. Betty in the third or Fourth Quarter<\/a> . I think that is the sole source of downward movements is the price of oil. That is it in the Energy Sector<\/a>. What about areas like the Consumer Staples<\/a> sector . It will depend on how fast it is recycled into perspective spending for consumers. The other thing about the Energy Sector<\/a> is it is a source of demand, not just supply. There are a lot of victims but it is very complicated around the world and for the most part i think the World Economy<\/a> and the u. S. Are going to grow. You can see and markets how we starting to see markets with monetary easing outperform even intrau. S. Dollars after the affect of depreciation. Betty you look at europe for instance doubledigit percentage gains and yet we concerted into u. S. Dollars to those gains get cut in by two thirds or so. Is it a better time to look at european stocks giving the relative valuation . Guest it is a really good time. Theyre still depressed economies on the risk of entering upturn. You can talk about greece all day if you like. In terms of the broader backdrop, very low Interest Rate<\/a>s in the economies are growing with central bankers unsatisfied and some volatility introduced by different promises. For most of 2011 and 2014. Moving away from that it will give us more volatile that truck and this pullback has been nothing on the grand scale of things. I think in the end growth will matter and we will have a here too. The upper level is fairly proportional. Betty what did you make a fridays response to the job report. Bond yields went up and stocks went down the dollar gained. All emergency currencies got completely hammered there you guest it is very telling, were getting used to the fact that cash will be above zero and no one including Federal Reserve<\/a> voting members knew when roads rates would be going up and you have to live with the uncertainty. For some emerging markets, like brazil, these are places where it will be hard to absorb. Betty what other areas when you combine not only those hiking rates but also the oil price selloff, what countries are going to be in dire straits. Mexico had to sell hundreds of millions of dollars worth on writing to keep pesos low. Guest we have taken mexican equities delta neutral and this is a large growth hit to their economy that is otherwise growing. Eastern european emerging markets that and the overweights are mostly concentrated in asia but that takes time. You see much more policy flexibility in asia. Betty so we have vista versions and centralbank policy, what does that mean for the risk on risk off trade we have grown so accustomed to . What you saw friday was a. In which both stocks and bonds lost together. That was not the combination he saw in october. I dont think this is severe and i think there are real limits to this. If we are severely entrenched in risktaking it would be off the table. It is very clear that they want to be gentle here and that the that this is almost going to be a token tightening and what you talked about in the last segment where bond yields around the world are so substantially lower will provide some savings influence but sometimes it wont be into equities. Betty you think the fed is going to raise rates this year . Guest i think if 15 out of 17 say yes i think that is right. In the last four years we have been 210,000 per month. That is three times faster than labor markets have grown the Unemployment Rate<\/a> is falling 1 annually. Very unambiguous that the economy from illegal legal market effective is growing above trend. If you want to foster financial instability i think the fed is likely to way that against low inflation and theres very little changed about the low inflation rate. Betty great to see you this morning. Thank you to alley and scarlet fu for jumping in this morning. Were saying all over the markets this early monday morning and moments into the opening session. Chris christie, jed bush and ted cruz spent the weekend in iowa. We will tell you what these republican hopefuls are doing their. Betty in political news, nine gop hopeful president ial candidates went to take center stage at the iowa summit over the weekend. On the list includes former governor jeb bush, texas senator ted cruz and wisconsin senator scott walker. Candidates fielded questions about arming trade and ethanol and they suck to differentiate themselves as they start the president ial nominating process. Joining us to discuss a key moment is alan bjerga. Allen you are monitoring all of those events, did anyone come out a winner . The question was who was most impressive to the audience in iowa and nationwide. There is a lot of sentiment that jed bush was trying to create an aura of invincibility did a good job of seeing seeming fairly folksy and regular while being mindful of the National Stage<\/a> and that is important because while you have this event put together by iowa activists and republican donors they are taking a look at getting the agricultural constituency further ahead, these folks have to be mindful of their National Donors<\/a> and audiences as well. Take said crews ted cruz and what he had to say. Senator cruz when it comes to the Energy Business<\/a> i put this more broadly to corporate welfare. I have been an outspoken opponent. In texas we are the Number One Oil<\/a> producer in the state. I have been outspoken in allowing the Export Import Bank<\/a> to expire. It is another example of corporate welfare were taxpayer dollars are benefiting giant operations in an opaque we should be doing that. There you have texas senator ted cruz trying to be mindful of the National Audience<\/a> who may not be as and never as with ethanol as iowa might be. That is one of the challenges for jed bush. He has the legacy of his brothers administration weather was an attempt at Immigration Reform<\/a> that stalled. So jeb bush once again being friendly toward the iowa audience while at the same time being mindful of the constituency of republicans were very skeptical of any change to current immigration policy that isnt a tightening. Betty i am remiss in not finding out the answer to the question but he kept jimmy or the weekend which is why arent any democrats involved. They were all invited but bruce ultimately is a republican activist and well he has ties with both parties there wasnt the feeling among the democrats that this was a platform among which they wanted to be appearing. Betty so this agriculture issue, does it have a potential, after seeing what happened does it have a potential to become a swing issue for the president ial candidates . There is a group closely allied with this and they are trying to mobilize 50,000 pro ethanol people and i would be about one third a size of the 20 12th caucuses in general. For iowa it still remains very important. It is tied to one out of every six jobs in from the economy so they want to make this front and center. This is a case once again were iowa takes its unique status as a first in the nation caucus to make its own issues international issues. That gives the candidate an interesting balancing act where they have to play to iowa while at the same time try not to alienate so the more Natural National<\/a> constituencies that may not be on the same footing as iowa. Betty i notice that marco rubio and bobby jindal not present, do we read anything into that . You could maybe there are people who do not see this as an advantageous stage. Of course they may have better places to be in iowa than a cold auditorium that if they want to run for president to have to get used to that. Betty , thank you so much. Allen who covered the agricultural market for us here at loomer. Trading just underway and stockton looks to be in the green. Youre starting with some of the details on Simon Property<\/a> and acquisitions. This was announced about half an hour ago with Simon Property<\/a> ported to buy may rich. You can see the ship the shares are not dramatic but Mesa Ridge Macerich<\/a> has risen about 5 . Basic shareholders would get 50 cash and 50 simon shares. Speaking of m a, the Largest Oil Producer<\/a> in the shell formation is surging right now, up almost 10 . Bloomberg news is reporting the company has hired a bank to fill a potential spill. It has reached out to potential buyers including norways scott oil. We are going to stay with energy names because Goldman Sachs<\/a> made a big call on oil companies. The three main reasons here that goldman says their business fundamentals will improve this year are heil oil prices, increase production and improving global rough firing refining margins. Exxon mobil is staffing a sevenday slump and analysts rate that one a by but the other two are holds or neutral. We should mention that chevron holds the Analyst Meeting<\/a> and im sure that they will be all over that one. Finally pours trading at a 1. 5 year low right now. U. S. Comfortable sales may have slowed down further in february. The Online Business<\/a> isnt necessarily acting up the slack because the poors website had distribution problems because of a collapsed roof and that is according to the material risks for the company. Just a quick note because we are keeping a very close eye on shares of apple. The website will be back in different languages and you can see that apple shares arriving ahead of tim cook and company taking the stage at 1 00 p. M. Eastern time. They will be unveiling details on the apple watch. We will be providing live Coverage Later<\/a> on today. Still ahead, happy sixth birthday bull market. Will the rally continue . Some say no chance. More on the debate. Betty the u. S. Stock rally celebrating its sixth anniversary today. Some investors say it will keep gaining but others like milton berg are sure that the bull market is over. With me now to discuss is the Market Makers<\/a> anchor stephanie ruhle. How about putting rain on the parade . Thats what im here to do. Everyone seems so enthused about the bull run. There isnt answering ipo that everyone doesnt like. Even when you talk about Tech Companies<\/a> people say the value is so much better than we were. Milton berg is a technical analyst. He says dont look at the noise lockout the excitement and look at history. He is completely short stock and completely short bond. He says even if there is a modest amount of upside it is too risky because when the market turns it could go down 20 . He changed his call on march 4. The only thing he would be doing is sitting in cash, raising his money and waiting for the market to bottom out. Betty that is awfully dire what is that based on . Stephanie he is looking at overall data. If you look at it over i overtime it doesnt make sense. If you take out the fact that mario draghi has stepped in and the fed if you remove these extra factors the market looks bleak. This is a guy who can change his call on a dime. He never gets emotionally attached. There were moments when he hated tesla or didnt like the hot ipo over day and if you look over time he crushes it. Betty you are saying if he gets more data he could get and turn around and say i was wrong and the bull market will continue. Stephanie girl which is why stephanie which is why you say dont put yourself in sticky stocks. He is saying stay nimble right now. Betty and stay liquid as well. Stephanie indeed. Betty thank you so much. Still ahead in california, ski resorts are fighting to stay afloat. How they are using new technology to beat climate change. Betty Mother Nature<\/a> has been especially cruel this drought year for ski resorts in california. Last month was the driest on record. Tough skiing. Teenagers are piling more and more money into ski makers are piling more and more money into snowmaking systems. You have to get your ski in, the final week of the season so evelyn, what sort of impact have we seen and who will survive if the warm weather and drought continues . Guest i think the issue is that the big resorts, the asp ends and the bales will be able to survive, it is the smaller mom and pop ski hills that cannot make it. They dont have the hospitality infrastructure or money for capital improvements. They are relying on natural snow and cannot afford snowmaking. One or two seasons and they will be gone. Betty are you starting to see them close up . Guest in california there were two or three ski resorts that opened early on and had to close. One maybe opened again but had to close. Here in the Pacific Northwest<\/a> there are resorts have closed already. Betty it is incredible and we are looking at pictures patches of snow and dry grass, this is no way guest when i was at heavenly reporting on the story in southlake tahoe, it looked like summer. Betty that is exactly what it looks like. It is not just ski resorts that are being challenged. Guest the ski industry is actually very big and they estimate that in the u. S. There is probably a 67 billion economic impact. In california it is probably 12 billion or 13 billion. They estimate that in the last three years there has been a 27 decline in seasonal and parttime hiring and in the ski industry and is dropped several tenths of a percent because of this. When it is not snowing people dont go skiing, even the perception of a poor season can keep people from trying. Betty that is exactly right. They will go somewhere else. It was in your story about how home values are being affected as well. Guest they have done some analysis about this and they think that with a two degree rise in temperature the home value in places like tahoe have dropped to 2 or more 50 or more. And ski resorts are investing more money interest summer activities and a hoping to take advantage of the whole year but that is large ski resorts and large corporations, not these mom and pop hills. They cannot afford to build zip lines and spas and lazy rivers betty trying to turn it into enter a amusement place. Guest sort of. Yeah. And of that season or in a bad season or way down the line people will still go here to vacation with their families and they will not rely on snow. That is when snowmaking comes in, if you can manufacture winter for a while [laughter] betty until it runs out. Thank you so much. Evelyn spence of bloomberg news. That does it today for in the loop. Ceo Sean Matthews<\/a> has a big announcement in sports. Plus and my yous Scott Alloway<\/a> back on interesting theories on tech trends. You will not believe what he has to say on apple sex appeal. That is tomorrow. Stephanie happy birthday to the bull market. It began six years ago today. We will see how much longer can this bull run. Matt stephanie, do you want the internet on your wrist . Apple is counting on that. Hoping that the new apple watch is you must buy device. Stephanie and mary barra in the d","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia601309.us.archive.org\/14\/items\/BLOOMBERG_20150309_120000_In_the_Loop_With_Betty_Liu\/BLOOMBERG_20150309_120000_In_the_Loop_With_Betty_Liu.thumbs\/BLOOMBERG_20150309_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"}