Transcripts For BLOOMBERG In The Loop With Betty Liu 2015031

High. They dropped patience from their guidance. We anticipate it will be appropriate to raise the target range for the federal funds rate when the committee has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 objective over the mediumterm. Betty she is neither promising nor ruling out a rate increase in june. The president of the Swiss National bank is pledging to keep Interest Rates at record lows. Dropping his defense of the frank as to his countrys economic challenges. Officials will take currency controls steps if they need to. This morning, he thinks Market Forces will do the job. Im convinced markets will rally. The swiss franc is overvalued. That is not attractive at the moment. Betty the bank forecasts and inflation rate this year of 1. 1 . The weakest rate in 65 years. One of the gunman suspected of killing 22 people in tunisia was known to the countries tell intelligence services. Test countrys intelligence known to the countrys intelligence service. President obama is on the road sending a message back to washington. He slammed the republican budget plan. Hes as it offers a path to prosperity for those who already are prospering. He says budget slashing will only slow the economy down. At 12 00 p. M. Taking the worry out of driving one of their electric cars. The company is planning announcement about its model s line. Musk tweeted is ago that he has a solution to range anxiety. All that is known right now is it is a software adjustment. Those are your top headlines. Back to the aftermath of the federal decision, the stock markets loved it sending the s p up 1. 2 yesterday. The bonds market also loved it. Down below 2 the bloomberg dollars pot index spot index tumbled the most in 12 years but is now rebounding. Peter, lets focus on the dollar for a moment. Is that strength going to reduce the need for the fed to raise Interest Rates . Peter i think so. A great question. It was asked at the epilepsy press conference yesterday. When the dollar is strong it has the same effects as a rate increase. It was asked at the Fomc Press Conference yesterday. It tends to chill the economy a bit. A strong dollar means exports of america are more expensive abroad and imports are cheaper. They can suppress economic activity. Janet yellen someone a knowledge that. Somewhat acknowledged that but said it would not stop her. She said we could see an increase as early as june. Betty it doesnt mean we are impatient here. I want to bring up the dot plot. It was adjusted down. Explain to us, we have the dot plot here, explain to us what all of this means and why for some people like jim, it means that that will not raise at all this year. Peter to me, there was a lot of information. If you dont have time to digest it all, focus on the outlook for the Unemployment Rate. The longterm Unemployment Rate is now projected to be 55. 2 . That is their assessment that unemployment could get that low before it would have to worry about wages accelerating too much and inflation taking in. They call it the nehru. That is down from 5. 25. 5. The fed is saying Unemployment Rate can keep falling before we feel we have to crank up Interest Rates to cool the economy. Betty forget all those dots. Ive got it. Thank you so much. Moving and shaking this morning on other economic matters, targets ceo the discovery tell chain will raise employee pay to at least nine dollars an hour. Target going to make a change next month though no formal announcement will be made. This follows the footsteps of walmart. There was worry that target is standing up to a 10 million over that data breach. In just more than an hour, one of americas most beloved stocks will officially join the dow. Scarlet fu joins us now to break down the numbers and unveil what apples addition to the dow is going to mean. Scarlet it starts to look a more like what the real economy does. Apple is the heaviest weighted stock in the s p 500 and was not in the dow jones at all in terms of money, i was surprised because there is not as much money very little money benchmark to the dow when you compare it to the s p 500. Directly index money is 33 billion as of the end of 2012. Contrast that with the s p 500 1. 87 trillion benchmark to that index. The s p smallcap has 31 billion. Thats what we are comparing the dow with. According to eric they will probably by 500 million worth of apple shares. That is a drop in the bucket when you consider apples market cap. Betty starbucks is another company you are watching. Their campaign is getting a lot of controversy. They announced a stock split. Scarlet thats right. You have not seen a lot of stock splits over the last couple of years. Back in the 1990s, they were all the rage when companies wanted to increase their appeal. People like it when a stock is lowerpriced as it makes it more viable. If it is a big, big price tag like priceline, you might shy away from it. They care less about the actual price of the shares rather than individual investors. It wasnt stocks blitz stock splits that paved the way for apple to join the dow. Visa split its stocks 4 for 1. That opened the door to bring in apple which had split its stock last year. Betty thank you so much. Another stock in focus today looking at allie baba. The second day when many of the companys earliest investors can sell for the first time. Shares were little changed after allieibaba ended the lock they have fallen 30 since the november high. Paul sweeney joins us now with more. We were anticipating the lockup period there we go. Where does the stock go from here . Paul there is three times normal volume. The market was able to absorb it pretty well. One of the key issues for alibaba it is about the ipo price. What investors are they remain bullish longterm about the growth story of allie baba but near term, we need to see some numbers that get people excited again. The First Quarter they reported after going public was a bit of a disappointing one. This upcoming quarter will be important for the company to reignite some momentum. Betty people were selling. What about this upcoming quarter . What is going to help catalyze the stock . Paul one of the key issues for them is topline growth. Everybody recognizes there are some challenges as it relates to them dealing with some of the piracy issues on the website in terms of their ecommerce website. That might put a nearterm damper on Revenue Growth. Investors want to see continued growth in the goods and services traded on the alibaba platform across china. They want to get a sense of where some of the International Growth opportunities can come for alibaba. The company has been making investments have indicated they are willing to invest outside of china even though the majority of the growth story is in the Chinese Market. Investors want to get a better handle. Betty that is not going to excite foreign investors. Paul they need to be careful. The Chinese Market really is the growth story there. Alibaba is dominant in that marketplace. To the extent they choose to grow in north america, they are going to come into a much more competitive market with amazon and ebay. They want to make some International Investments and want to grow the platform but they need to be careful. Betty thank you so much. Coming up, the analysis by the fed. Jim joins us. What does he have to say about this . Betty heres a look at our top stories this morning. Raising hope for a potential merger it would create the worlds biggest cement company. Theyre closer to a preliminary agreement. Cox could drag on longer or fall apart entirely. Another showdown happening in brussels. European leaders want the greek Prime Minister to draw up a plan to fix the economy in exchange for emergency loans. Greece could run out of money in the next two weeks. Job cuts coming to yahoos china operations. The Company Closing at beijing office eliminating 200300 jobs. It had 12,000 Workers Worldwide at the end of 2014. Yahoo is currently under pressure from investors to trim their expenses. The companys Revenue Growth has stalled since 2008. Those are your top stories this morning. Coming up, we will be speaking to the former rnc Communications Director on the budget battle within the gop. Initial jobless claims out at a 30 a. M. 8 30 a. M. Mgm spinning off the real estate asset. Tuned. Lets return to the feds decision to drop the word patience from his guidance. What about june and september . Markets soared on that news. The nasdaq briefly surpassed 5000 again. Janet yellen did have a warning for fed watchers. Just because we remove the word patients from the statement doesnt mean we are going to be impatient. Betty i want to bring in jim caron now. I know when you are pricing assets, you have to price and what the fed is going to do. Your big take away from yesterday was what . Jim it is all about expectations. The way i thought about janet yellen and what she said is she started to change the debate. The debate was about is the fed falling behind the inflation curve. When his pentup wage deflation going to release its and should the fed act sooner . We got that message as she alluded to the performance of the dollar Lower Energy Prices thing is of that nature. The markets were thinking the fed needed to react to inflationary pressures and janet yellen is it saying not so fast we first have to take care of these this inflationary factors this inflationary factors disinflationary factors. From a Portfolio Managers perspective, we have to be able to out carry the pace of the rate rise. She has told us that the rate rise over the next few years will be a lot slower than what we thought. Betty i like the word out carry. Forget about june. Is that what you are saying . Maybe september . Jim september, october is the most likely time. There is a chance it might be later than that. Betty i want to bring up the dot plot again. Lets focus on whats in red. 0. 625. It was at 1. 125. Significant drop. With the fed funds projection is by the fed. People are dancing around saying maybe not even september. Maybe not until 2016. Jim that is correct. We could have one or two rate hikes this year. In the first it is a 50 basis points less than what we thought. It is lower in the out years. The longrun forecast has remained the medium 3. 75 . The fed has not changed their longterm objective. They have changed the path that which they are going to get there and they say it is a slower path to start with. Eventually, they will start to increase it. Betty that raises the problem. Could they then have to hike quickly . Jim they would probably have to start to do that after 2017. That would tell us that around the threeyear point of the curve right now could be the points most vulnerable for a rate rise. Betty where are you letting your money . Jim what we do is we try to build qualitative models around this pace of rising rates. We think the pace will be relatively slow. There is a lot of kerry to still be gotten in the market. Sectors like highyield investment grade, these are assets that will do very well. In an environment where Interest Rates may rise slowly. These would be the instruments we would construct a portfolio with two out carry the pace of the rate rise and produce excess return. Betty jim caron, Portfolio Manager and morgan stanley. Much more on the economy, including jobless claims out in a few minutes. We will be back. Betty you are watching in the loop live on bloomberg television. Just minutes before initial jobless claims we turn to the state of washington. House and Senate Republicans will use their budget plan this week. Both pledged to cut obama accused them of risking another government shutdown. Trickle down economics does not work and middle class economics does. That is what we should keep in mind. That is not a path where we slow down businesses by investments in the future. By slashing investments in the future. Betty more important than the president s opinion of the plan is the war going on within the gop, especially over military spending and entitlement cuts. Running us from washington is a republican operative doug, good to see you again. The house and Senate Republicans have waited on the line laid it on the line. How do we get this budget passed . Doug the most interesting thing is the disagreements we see over what our Foreign Policy in defense spending is going to be also mirrors the differences we see on president ial candidates moving forward in 2016. Its a discussions republicans discussion rob because are having this republicans are having. How can we get to when accommodation that satisfies a real budget hawks and our defense hawks who know the spending levels we need so we have a robust defense we need and we get to the two and 17 threshold we need in the house of representatives 217 threshold we need in the house of representatives . Betty it is fine to have this dialogue and i understand the conversation on cuts and spending and the gop is having this healthy debate. Are they killing themselves in the meantime and showing the world that they have a hard time governing if they cannot even agree on certain issues . Doug if we cannot pass a budget through the house or senate the Democratic Senate did not even consider budget. We will lose leveraging power lose negotiation power when we are dealing with white house. It is critical to have that leverage as we move over. Move forward. The president will offer a budget. When he has got had a budget in the past, it has gotten zero votes. Betty the bloomberg policy team desk Politics Team had a focus group in New Hampshire one of the first primary states in the election, and they asked democrats and Republican Voters what they think of the two leading contenders. For Hillary Clinton among the democratic voters, they were upset with how she handled the email debacle. What i thought was interesting was among Republican Voters they were cried critical of jeff bush. Jeb bush. They did not like his immigration policies. One of them voiced concern about whether he even has any chance at all of being president. If the primary im not a fan. I dont think the bush family is that people. Thats bad people. Betty some said a zero chance. Doug ultimately, that is the choice. One of the things bush needs to do and is doing and will do we all know the bush last name. We dont know jeb. You will see him talking about the issues he cares about and demonstrating that he is somebody who is married he speaks spanish. He can be a new face. Betty Bloomberg Politics took a look at who republican president ial candidates follow on twitter. Most of them follow jim demint. Only half of them follow mitt romney. More follow steve king then they follow steve king has the freedom summit. Who do you follow on twitter . Doug lets start with you. I follow you and stephanie ruhle. I think its important for voters to try to get a sense of information from the candidates and to look at those reporters and those activists who arent once he just talk about individual trees but look at forests. Mark halperin, paul cain and paul john bresnahan. Voters need to look at some of the activists, people playing roles for the candidates. Mike murphy with jeb bushs campaign. Todd harris, an old friend of mine. One of the key players for marco rubio. Betty lets stop plugging everybody. All of our friends, doug. To do seo. Good to see you. We have breaking news. 291,000 claims filed last week. Scarlet fu has more. Scarlet the second week we have had fewer than 300,000 americans filing for jobless claim benefits. The number is 290 1000, slightly lower than what economists had been looking for. 291,000. This data takes on additive importance because it coincides with this survey for the monthly jobs report. We have pretty much little change here and the prior week revised was also little changed. The 10 year yield state where it was. Staying where it was. 1. 95 . The dollar and 90 what im. 17 dollar at 99. 17. Betty here is a look at our top stories. Mobile markets showing investors like what they are hearing from the fed. Janet yellen said at central bank will move slowly on Interest Rates. Policymakers dropped patience from their guidance. We are seeing an economy growing above trend. The labor market is improving. Some of the headwinds that have long been holding the economy back are beginning to recede which is reason the committee wants to be able to evaluate incoming data and consider when it may be appropriate to finally raise rates. Betty she is neither promising or ruling out a rate increase in june. The president of the Swiss National bank pledging to keep Interest Rates at a record low. Dropping his defense of the swiss franc adds to his countrys economic challenges. An inflation rate of 1. 1 , the weakest rate in 65 years. He tells bloomberg this morning he sees an end to that problem ahead. In the shortterm, we have to accept the inflation rate at negative. With his big it will be back in positive territory early 2017. Betty right now, he believes Market Forces will do the job. Coming soon coming your favorite tv shows on your videogame console to sony is selling its Playstation Vue service, offering live and ondemand programs. Monthly price tag starting at 50. Hp taking the finalists for control of two units in china. Hp is down to a pair of bidders. In the loop returns with much more. Betty about an hour until the start of trading. Back to our breaking news desk where scarlet fu has what is on the move right now. Scarlet on the move this morning is the homebuilder Swiss National<\/a> bank is pledging to keep Interest Rates<\/a> at record lows. Dropping his defense of the frank as to his countrys economic challenges. Officials will take currency controls steps if they need to. This morning, he thinks Market Forces<\/a> will do the job. Im convinced markets will rally. The swiss franc is overvalued. That is not attractive at the moment. Betty the bank forecasts and inflation rate this year of 1. 1 . The weakest rate in 65 years. One of the gunman suspected of killing 22 people in tunisia was known to the countries tell intelligence services. Test countrys intelligence known to the countrys intelligence service. President obama is on the road sending a message back to washington. He slammed the republican budget plan. Hes as it offers a path to prosperity for those who already are prospering. He says budget slashing will only slow the economy down. At 12 00 p. M. Taking the worry out of driving one of their electric cars. The company is planning announcement about its model s line. Musk tweeted is ago that he has a solution to range anxiety. All that is known right now is it is a software adjustment. Those are your top headlines. Back to the aftermath of the federal decision, the stock markets loved it sending the s p up 1. 2 yesterday. The bonds market also loved it. Down below 2 the bloomberg dollars pot index spot index tumbled the most in 12 years but is now rebounding. Peter, lets focus on the dollar for a moment. Is that strength going to reduce the need for the fed to raise Interest Rates<\/a> . Peter i think so. A great question. It was asked at the epilepsy press conference yesterday. When the dollar is strong it has the same effects as a rate increase. It was asked at the Fomc Press Conference<\/a> yesterday. It tends to chill the economy a bit. A strong dollar means exports of america are more expensive abroad and imports are cheaper. They can suppress economic activity. Janet yellen someone a knowledge that. Somewhat acknowledged that but said it would not stop her. She said we could see an increase as early as june. Betty it doesnt mean we are impatient here. I want to bring up the dot plot. It was adjusted down. Explain to us, we have the dot plot here, explain to us what all of this means and why for some people like jim, it means that that will not raise at all this year. Peter to me, there was a lot of information. If you dont have time to digest it all, focus on the outlook for the Unemployment Rate<\/a>. The longterm Unemployment Rate<\/a> is now projected to be 55. 2 . That is their assessment that unemployment could get that low before it would have to worry about wages accelerating too much and inflation taking in. They call it the nehru. That is down from 5. 25. 5. The fed is saying Unemployment Rate<\/a> can keep falling before we feel we have to crank up Interest Rates<\/a> to cool the economy. Betty forget all those dots. Ive got it. Thank you so much. Moving and shaking this morning on other economic matters, targets ceo the discovery tell chain will raise employee pay to at least nine dollars an hour. Target going to make a change next month though no formal announcement will be made. This follows the footsteps of walmart. There was worry that target is standing up to a 10 million over that data breach. In just more than an hour, one of americas most beloved stocks will officially join the dow. Scarlet fu joins us now to break down the numbers and unveil what apples addition to the dow is going to mean. Scarlet it starts to look a more like what the real economy does. Apple is the heaviest weighted stock in the s p 500 and was not in the dow jones at all in terms of money, i was surprised because there is not as much money very little money benchmark to the dow when you compare it to the s p 500. Directly index money is 33 billion as of the end of 2012. Contrast that with the s p 500 1. 87 trillion benchmark to that index. The s p smallcap has 31 billion. Thats what we are comparing the dow with. According to eric they will probably by 500 million worth of apple shares. That is a drop in the bucket when you consider apples market cap. Betty starbucks is another company you are watching. Their campaign is getting a lot of controversy. They announced a stock split. Scarlet thats right. You have not seen a lot of stock splits over the last couple of years. Back in the 1990s, they were all the rage when companies wanted to increase their appeal. People like it when a stock is lowerpriced as it makes it more viable. If it is a big, big price tag like priceline, you might shy away from it. They care less about the actual price of the shares rather than individual investors. It wasnt stocks blitz stock splits that paved the way for apple to join the dow. Visa split its stocks 4 for 1. That opened the door to bring in apple which had split its stock last year. Betty thank you so much. Another stock in focus today looking at allie baba. The second day when many of the companys earliest investors can sell for the first time. Shares were little changed after allieibaba ended the lock they have fallen 30 since the november high. Paul sweeney joins us now with more. We were anticipating the lockup period there we go. Where does the stock go from here . Paul there is three times normal volume. The market was able to absorb it pretty well. One of the key issues for alibaba it is about the ipo price. What investors are they remain bullish longterm about the growth story of allie baba but near term, we need to see some numbers that get people excited again. The First Quarter<\/a> they reported after going public was a bit of a disappointing one. This upcoming quarter will be important for the company to reignite some momentum. Betty people were selling. What about this upcoming quarter . What is going to help catalyze the stock . Paul one of the key issues for them is topline growth. Everybody recognizes there are some challenges as it relates to them dealing with some of the piracy issues on the website in terms of their ecommerce website. That might put a nearterm damper on Revenue Growth<\/a>. Investors want to see continued growth in the goods and services traded on the alibaba platform across china. They want to get a sense of where some of the International Growth<\/a> opportunities can come for alibaba. The company has been making investments have indicated they are willing to invest outside of china even though the majority of the growth story is in the Chinese Market<\/a>. Investors want to get a better handle. Betty that is not going to excite foreign investors. Paul they need to be careful. The Chinese Market<\/a> really is the growth story there. Alibaba is dominant in that marketplace. To the extent they choose to grow in north america, they are going to come into a much more competitive market with amazon and ebay. They want to make some International Investments<\/a> and want to grow the platform but they need to be careful. Betty thank you so much. Coming up, the analysis by the fed. Jim joins us. What does he have to say about this . Betty heres a look at our top stories this morning. Raising hope for a potential merger it would create the worlds biggest cement company. Theyre closer to a preliminary agreement. Cox could drag on longer or fall apart entirely. Another showdown happening in brussels. European leaders want the greek Prime Minister<\/a> to draw up a plan to fix the economy in exchange for emergency loans. Greece could run out of money in the next two weeks. Job cuts coming to yahoos china operations. The Company Closing<\/a> at beijing office eliminating 200300 jobs. It had 12,000 Workers Worldwide<\/a> at the end of 2014. Yahoo is currently under pressure from investors to trim their expenses. The companys Revenue Growth<\/a> has stalled since 2008. Those are your top stories this morning. Coming up, we will be speaking to the former rnc Communications Director<\/a> on the budget battle within the gop. Initial jobless claims out at a 30 a. M. 8 30 a. M. Mgm spinning off the real estate asset. Tuned. Lets return to the feds decision to drop the word patience from his guidance. What about june and september . Markets soared on that news. The nasdaq briefly surpassed 5000 again. Janet yellen did have a warning for fed watchers. Just because we remove the word patients from the statement doesnt mean we are going to be impatient. Betty i want to bring in jim caron now. I know when you are pricing assets, you have to price and what the fed is going to do. Your big take away from yesterday was what . Jim it is all about expectations. The way i thought about janet yellen and what she said is she started to change the debate. The debate was about is the fed falling behind the inflation curve. When his pentup wage deflation going to release its and should the fed act sooner . We got that message as she alluded to the performance of the dollar Lower Energy Prices<\/a> thing is of that nature. The markets were thinking the fed needed to react to inflationary pressures and janet yellen is it saying not so fast we first have to take care of these this inflationary factors this inflationary factors disinflationary factors. From a Portfolio Managers<\/a> perspective, we have to be able to out carry the pace of the rate rise. She has told us that the rate rise over the next few years will be a lot slower than what we thought. Betty i like the word out carry. Forget about june. Is that what you are saying . Maybe september . Jim september, october is the most likely time. There is a chance it might be later than that. Betty i want to bring up the dot plot again. Lets focus on whats in red. 0. 625. It was at 1. 125. Significant drop. With the fed funds projection is by the fed. People are dancing around saying maybe not even september. Maybe not until 2016. Jim that is correct. We could have one or two rate hikes this year. In the first it is a 50 basis points less than what we thought. It is lower in the out years. The longrun forecast has remained the medium 3. 75 . The fed has not changed their longterm objective. They have changed the path that which they are going to get there and they say it is a slower path to start with. Eventually, they will start to increase it. Betty that raises the problem. Could they then have to hike quickly . Jim they would probably have to start to do that after 2017. That would tell us that around the threeyear point of the curve right now could be the points most vulnerable for a rate rise. Betty where are you letting your money . Jim what we do is we try to build qualitative models around this pace of rising rates. We think the pace will be relatively slow. There is a lot of kerry to still be gotten in the market. Sectors like highyield investment grade, these are assets that will do very well. In an environment where Interest Rates<\/a> may rise slowly. These would be the instruments we would construct a portfolio with two out carry the pace of the rate rise and produce excess return. Betty jim caron, Portfolio Manager<\/a> and morgan stanley. Much more on the economy, including jobless claims out in a few minutes. We will be back. Betty you are watching in the loop live on bloomberg television. Just minutes before initial jobless claims we turn to the state of washington. House and Senate Republicans<\/a> will use their budget plan this week. Both pledged to cut obama accused them of risking another government shutdown. Trickle down economics does not work and middle class economics does. That is what we should keep in mind. That is not a path where we slow down businesses by investments in the future. By slashing investments in the future. Betty more important than the president s opinion of the plan is the war going on within the gop, especially over military spending and entitlement cuts. Running us from washington is a republican operative doug, good to see you again. The house and Senate Republicans<\/a> have waited on the line laid it on the line. How do we get this budget passed . Doug the most interesting thing is the disagreements we see over what our Foreign Policy<\/a> in defense spending is going to be also mirrors the differences we see on president ial candidates moving forward in 2016. Its a discussions republicans discussion rob because are having this republicans are having. How can we get to when accommodation that satisfies a real budget hawks and our defense hawks who know the spending levels we need so we have a robust defense we need and we get to the two and 17 threshold we need in the house of representatives 217 threshold we need in the house of representatives . Betty it is fine to have this dialogue and i understand the conversation on cuts and spending and the gop is having this healthy debate. Are they killing themselves in the meantime and showing the world that they have a hard time governing if they cannot even agree on certain issues . Doug if we cannot pass a budget through the house or senate the Democratic Senate<\/a> did not even consider budget. We will lose leveraging power lose negotiation power when we are dealing with white house. It is critical to have that leverage as we move over. Move forward. The president will offer a budget. When he has got had a budget in the past, it has gotten zero votes. Betty the bloomberg policy team desk Politics Team<\/a> had a focus group in New Hampshire<\/a> one of the first primary states in the election, and they asked democrats and Republican Voters<\/a> what they think of the two leading contenders. For Hillary Clinton<\/a> among the democratic voters, they were upset with how she handled the email debacle. What i thought was interesting was among Republican Voters<\/a> they were cried critical of jeff bush. Jeb bush. They did not like his immigration policies. One of them voiced concern about whether he even has any chance at all of being president. If the primary im not a fan. I dont think the bush family is that people. Thats bad people. Betty some said a zero chance. Doug ultimately, that is the choice. One of the things bush needs to do and is doing and will do we all know the bush last name. We dont know jeb. You will see him talking about the issues he cares about and demonstrating that he is somebody who is married he speaks spanish. He can be a new face. Betty Bloomberg Politics<\/a> took a look at who republican president ial candidates follow on twitter. Most of them follow jim demint. Only half of them follow mitt romney. More follow steve king then they follow steve king has the freedom summit. Who do you follow on twitter . Doug lets start with you. I follow you and stephanie ruhle. I think its important for voters to try to get a sense of information from the candidates and to look at those reporters and those activists who arent once he just talk about individual trees but look at forests. Mark halperin, paul cain and paul john bresnahan. Voters need to look at some of the activists, people playing roles for the candidates. Mike murphy with jeb bushs campaign. Todd harris, an old friend of mine. One of the key players for marco rubio. Betty lets stop plugging everybody. All of our friends, doug. To do seo. Good to see you. We have breaking news. 291,000 claims filed last week. Scarlet fu has more. Scarlet the second week we have had fewer than 300,000 americans filing for jobless claim benefits. The number is 290 1000, slightly lower than what economists had been looking for. 291,000. This data takes on additive importance because it coincides with this survey for the monthly jobs report. We have pretty much little change here and the prior week revised was also little changed. The 10 year yield state where it was. Staying where it was. 1. 95 . The dollar and 90 what im. 17 dollar at 99. 17. Betty here is a look at our top stories. Mobile markets showing investors like what they are hearing from the fed. Janet yellen said at central bank will move slowly on Interest Rates<\/a>. Policymakers dropped patience from their guidance. We are seeing an economy growing above trend. The labor market is improving. Some of the headwinds that have long been holding the economy back are beginning to recede which is reason the committee wants to be able to evaluate incoming data and consider when it may be appropriate to finally raise rates. Betty she is neither promising or ruling out a rate increase in june. The president of the Swiss National<\/a> bank pledging to keep Interest Rates<\/a> at a record low. Dropping his defense of the swiss franc adds to his countrys economic challenges. An inflation rate of 1. 1 , the weakest rate in 65 years. He tells bloomberg this morning he sees an end to that problem ahead. In the shortterm, we have to accept the inflation rate at negative. With his big it will be back in positive territory early 2017. Betty right now, he believes Market Forces<\/a> will do the job. Coming soon coming your favorite tv shows on your videogame console to sony is selling its Playstation Vue<\/a> service, offering live and ondemand programs. Monthly price tag starting at 50. Hp taking the finalists for control of two units in china. Hp is down to a pair of bidders. In the loop returns with much more. Betty about an hour until the start of trading. Back to our breaking news desk where scarlet fu has what is on the move right now. Scarlet on the move this morning is the homebuilder Quarterly Earnings<\/a> per share that beat analyst estimates as new orders are up 18 . The ceo indicated early results from the spring selling season suggest the Housing Market<\/a> is improving. Some consumer names also reporting results. Guess sales fell 9 . The company does he a lot of headwinds because of the stronger dollar. It sells a lot in europe, 12 of its revenue from italy alone. Williamssonoma comparable sales missed estimates. Ebay is Google Wallet<\/a>, apple pay and facebook will weigh on paypal market share. He says it is possible google may be interested in acquiring paypal for its user base. Betty we shall see. Thank you. Another stock that has been on the move this week is mgm resorts. Shares on a terror after activist investors are pushing the casino giant to take a gamble on its real estate asset. Shares on a tear. Jonathan is the founder and cio who has been calling for this has held talks with mgms board. Great to have you here on the program. You just spoke with the mgm ceo. Jonathan we have been in pretty good dialogue. Betty how perceptive . Jonathan he seems to be very receptive. He will evaluate it. Betty do you think theyre going to do it . Jonathan as i have seen, it is a competent process and is doable complicated process and is doable. We think it is doable and it will unlock a substantial amount of value. Betty i know unlocking shareholder value is the reason but what made you think mgm is the right target to do this split . Jonathan there are several things that have come together in the last six months. Macau has been very weak in the last six months and that drove the share price down. Now, it is looking incredibly cheap. They should be trading at 15 times. That valuation dislocation created the opportunity. The company is going to be a taxpayer for the first time this year, which makes the urgency much more important. The company came out of the financial crisis with a huge pileup that. This is the first year when they convicted percent of their debt off when they can pay 50 of their debt off. Las vegas was dragging after the financial crisis. We saw a percent growth in revenues last year. Thats 8 growth in revenues last year. Betty now, vegas is coming back. This is not the first time you have gone after a Casino Company<\/a> and said they should split up because he tried to do this with las vegas sands. Jonathan back in 2012, we set two ways to make money in sans. Either do something strategic or the operations will come back. The operations came back in spades. Betty he is not doing it. Why would mgm want to sell any of their assets or go through this process . If they came through the financial crisis they did not have to sell any assets. Jonathan we are not talking about them selling assets. A small amount of asset sales the leverage comes down and that will allow the multiple to expand and they can develop the assets they want to develop. Betty it is a part of the equation. Jonathan he said he is open to selling some assets as well. Betty you have had a 40 annualized return on the five activist campaigns . You have a great track record. Jonathan thank you. Betty i know there is a couple of other companies you say you should be looking at in the real estate world. Diamond rock is one of them. Seecbre and kilroy realty. Jonathan each of them can generate a 25 return. Either through growth they will put up 20 cash flow growth or matilda are under material under evaluation. Betty thank you so much. The founder and cio of land and building. Much more ahead. What you want musk has to say about the car industry. Elon musk has to say about the car industry. Searching for a bottom as sales of crude reached record highs. Betty here is a look at our top stories this morning. President obama taking aim at House Republicans<\/a> and their new budget plans. He called the budget a path to prosperity for those who are already prospering. The authors of this budget were careful not to get too specific about what they propose. They imply that no matter who you are some of the else is going to bear the burden. It is the opposite of middle class economics. It doubles down on trickledown. Betty republicans have unveiled their own budget it will repeal obama care make cuts and welfare programs. The oil rally is not lasting long. Futures fell more than 3 today. West texas intermediate selling for under 43 a barrel. The Federal Reserve<\/a> cut it as s estimates for Interest Rates<\/a>. There is no choice but to leave production unchanged to maintain market share. China mobile launching its market value watching its market value he wrote after the Company Posted<\/a> its largest profit drop since 1999. Shares slumped 3. 1 , the most since september. China mobile is the worlds biggest carrier. Those are your top stories. Coming up, we will be discussing how Cereal Companies<\/a> are reacting to americans changing habits. What Richard Bransons<\/a> new bet is on. Nothing seems to rev up tech enthusiasts more than elon musk s tweets. The billionaire inventor tweeted Tesla Press Conference<\/a> about the end range anxiety. When he tweets the world appears. He has created an announcement anxiety. For more on what we can expected today, i want to bring in dean frankel from boston. Good to see you this morning. He is going to be holding a presser over the phone. What do you think hes going to say . Dean thank you for having me. I want to take a step back. And we talked about range anxiety, its something that will be hard to do via software. In has to be a combination of hardware and software. An indirect process in the automotive industry. It is going to be tough for them to solve it. It is worth asking if its an issue that can be solved. Betty thats the question right . He is going to solve it. You have said in your report that to eliminate or take care of a large majority of peoples range anxiety, you have to have a car that goes for an miles plus 400 miles plus. Dean we are talking about the base model s at 208. Range anxiety affects everyone differently. If we are talking about software alone, you need better battery sacells, more ubiquitous fast charging hardware. Better Software Management<\/a> and consumer education. Where could Software Fall<\/a> in that . From a battery perspective, if you manage them better maybe get 20 more out of it. Theres physical limits to how much you can get out of an energy cell. It is not going to get you to that 400 level. Betty when you say you could get in your 20 via software what do you mean . Dean every time you discharge your cell phone or tesla, there is some energy left. That is there so that you dont a road at of the battery. There is physical reasons in terms of the internal chemistry why there is some energy left between those lithium ions. No one has gone to a solution where you can really get all those lithium ions out. They are purposely leaving some of them in. That is 20 , not 100 . We will not change the battery chemistry via software alone. Betty what it could give you 20 more juice could get you to the next charging station. Dean that is true. One thing that could be interesting, maybe its an ultra power saving mode. Samsung introduced that partiality. Maybe tesla could do it for their vehicles. My Samsung Galaxy<\/a> s five has very limited function. Will Consumers Want<\/a> limited functions to survive . Betty every day, i go through battery anxiety. Thats with my iphone. I cannot imagine being in a vehicle and having that kind of anxiety. Dean to some extent, that is a hurdle. How much in the most energetic vehicle is worth asking. Does tesla need to do this right now . One thing i want to talk about is the potential for Better Energy<\/a> efficiency within the vehicle. Improved power electronics. If they can do that via software updates, that would be interesting. Talking about innovation beyond the battery cell is key. Betty thank you so much. Coming up, right on target, the ceo of the retail chain raising pay. Betty much more ahead. Starbucks gets back to what it knows best. The being. The bean. Announcing coffee delivery. Betty welcome backbetty . We are 30 minutes away from the opening bell and here is a look at our top stories. Futures indicate stocks will open lower despite a report that just came out showing stability in the label market. Jenna yelling that european stocks soared today after she said rates will not be raised sharply or soon. Yellen says markets should not look to the fed for all the answers. We cannot provide certainty and should not provide certainty because economic developments that will unfold are uncertain. What Market Participants<\/a> should be doing is looking at incoming data just as we are informing their expectations for where policy will be going and should be going just exactly as we will be doing by attempting to understand economic developments as they unfold. Betty yellen is neither promising or ruling out a rate increase in june. Shares of siemens are plummeting. The ceo tells investors that cheap oil and operational problems are hurting profit. Go daddy is shooting for a valuation of nearly 3 billion in its ipo. It is offering 22 million shares at 17 or 19 each. A market value of 2. 5 to 2. 8 billion. In less than three hours, promising to take the worry out of driving your electric car. The company is planning to add a model to its line. Iran muska tweeted he has a solution for range anxiety which is that batteries will run down and you will have nowhere to go. Those are your top headlines. We are under 30 minutes away from the start of traits i want to count you down to the open with the top tech headlines. Matt miller and Olivia Sterns<\/a> our dynamic duo is here. Let us start with the overseas and Swiss National<\/a> bank. 75 . The promise to keep Interest Rates<\/a> at record lows and spoke to john farrell earlier today about whitey frank is overvalued. The markets will realize the frank is not overvalued and that is not very attractive at the moment. Betty i feel sorry for tom jordan. Olivia thats a tough job. The forecast for inflation is 1. 1 . Its lowest since 1950. Matt he pledges to keep Interest Rates<\/a> at a low but what is that worth at this point . Last time they were pledging to keep their frank stealing and that did not work out well for a huge hit on that read i am sure a lot of people out there dont trust any of the words coming out of his mouth, not that he has any reason to raise them. Betty not only to you have tim cook coming out the apple watch to take your thunder. Number nine is staying overseas. Yahoo is shutting down its office in beijing, lemonade in 200300 jobs. They are trimming staff around the world. It is china and it is a big market for many of these companies. When you see job cuts there you wonder where is the growth. Matt not a big market for yahoo that i have a lot of advertising out of Chinese Companies<\/a> although they are responsible for a journalist going to jail for 10 years because they turned information over to the chinese government. Why wouldnt they have closed their office before getting this guy put in jail for 10 years . Olivia a lot of companies had trouble in china blaster. In china last year. Betty it is a difficult market. Olivia what is yahoo going to do now . Betty target raising wages to nine dollars an hour following the footsteps of walmart. What took target so long . They will make a change next month. Retailers are putting more money into paychecks in an effort to reduce turnover and cope with an increasingly Competitive Labor<\/a> market. They want to get these protesters off their backs. Matt and they want to compete better with walmart. That is the most important thing. Finally, walmart is doing a great job of incentivizing employees to stay for longer than a few months. Now i lot of employees now a lot of target employees are thinking why dont i go over there so target has to do this. Olivia this is not altruism. It is widely assumed that the National Minimum<\/a> wage is going up in a few years. They are getting ahead of it. Nine dollars an hour is so little. It is much more important that they promised more hours and give you two weeks notice to give you what your shift will be. When you are talking about wages that are the small that is more important than the actual some. Matt this is how markets work. The labor market is getting tighter. Betty families have to offer more. Companies have to offer more. Starbucks is known for treating its employees better. It will begin testing in new york and seattle with new york serving as its testing ground. The companys raised together initiative will make an extra effort to hire disadvantaged youth around the country. They have a program weather where they will hire veterans so they are putting their money where their mouth is. Matt i think it is a great thing. They have gotten pummeled by social media. If you have the conversation in a starbucks, it might not necessarily turn out very well. Betty you might get some coffee spilled on you. Matt i am excited to go to starbucks to see if they raise the cup there. Olivia i think it is wonderful. I applaud what they are doing. When i walk into starbucks, the last thing i want to do is have a conversation with anybody before i have a cup of coffee. Betty the only thing i get upset about in starbucks is the line. If they can find a way to get rid of their line, that would be great. Matt the lines can last 3. 5 minutes so i understand. Betty soda trying to shed its unhealthy reputation. Coke and pepsi shying away from using artificial sweeteners in diet beverages as critics have blamed the ingredient for weight gain. They are trying to find new and healthier sweeteners. They have been going to science to do this, but it has been a unicorn. They cannot find that secret ingredient that will make oak and pepsi taste good without the aftertaste. Olivia they try Different Things<\/a> but nothing has done the trick yet. I couldnt believe the decline in diet soda sales. 7 . Matt diet soda water is probably what you should drink if you want to be healthy. Are you not worry the art of personal are you not worried that these kind of things cause cancer . Olivia i will have a bacon double cheeseburger and a diet coke. Matt i am trying to watch my figure. Betty it is supposed to make you gain weight. The war over your breakfast plate and why frosted flakes and lucky charms are getting buried under a pile of and kicks. What that means for kelloggs and General Mills<\/a>. Betty we continue to count out to the opening bell and we are halfway through its means it is time for our deep dive. Number five is General Mills<\/a> the maker of cinnamon toast crunch, cheerios, tricks wheaties. Yesterday reported disappointing results, joining his competitor kelloggs. Americans are shedding their high carb breakfasts. Devin leonard recently wrote the cover story chronicling the serial industry and the challenges it faces. He joins us now. Are cereals becoming a relic . Devin these committees are closing serial factories and laying off employees because serial sales are shrinking. A lot dont think they will ever come back. That could be the equivalent of the apocalypse in cereals. Betty my kids eat a lot of serial although i worry about the health and if its the health benefits. What is driving the decline in serial sales . Devin this is still a huge market. People dont consider it to be as convenient or healthy anymore. That is a big problem if you are kelloggs or General Mills<\/a>. Betty who is getting hit the most . Devin kellogg, definitely. General mills were only down 3 kellogg was down 7 . Everybody is hurting. Betty what are they going to do about it . Kelloggs have froot loops and frosted flakes. What are they trying to do . Devin they are trying to introduce glutenfree breads. They have tried glutenfree cheerios but there are now gtmo free gmofree corn. They are trying to adapt. People want these seasonal breakfasts like egg and oatmeal and frozen waffles. What they dont want is breakfast out of a box with a cartoon character on it. That has been the Business Model<\/a> for these companies for years and years. Betty 1980s and 1990s, that was breakfast. Devin we can go back further than that. Betty even the 1970s. That was the way you ate your breakfast. What about General Mills<\/a> and what they are trying to do to turn this around . Devin they diversified out of cereals when they bought yoplait. That was a very smart thing. It is one of the reasons why they are doing better than kellogg. These guys can still sell serial. Cinnamon toast crunch was up last year. They were marketed up to adults to eat at night and stuff like that. Kellogg did something similar with fruit loops. This is not enough to offset the overall decline of the market. They need to make acquisitions. General mills seems to have done a better job. Kellogg bought pringles. They are buying processed food that consumers are pulling away from. They are not firing on all cylinders. Betty what about post . Devin they are a little different. Their sales were up 2 master 2 last year. That is something to log does not want to do yet which is rebrand. We will see what it does to them in the longterm. Betty i cant imagine big margins on this because when you say discounts that means sales on serial all the time. Devin there are still huge gross margins. They are coming down and they are not what they were. Someone will buy kellogg at some point. There is a lot of speculation about 3g buying them. Their Management Team<\/a> is having difficulties and General Mills<\/a> isnt. That is the one people say is the one to watch. Betty thank you so much for joining us. Much more ahead. Bloomberg mixes it up for march madness. We have the biggest names in business to fill out a bracket. Who did they pick . Was kentucky and a of the winners . Betty lets get back to bringing you the most supported headlines before the bell. Matt and olivia joining me. Number four is tesla. They are promising to take the worry out of driving your electric car. The company is planning an announcement about its model s line. Elon musk tweeted he has a solution for the fear of range and anxiety. Matt he has promised to end range anxiety. He will not change it or bring it down. He will end it. The only way he can do that is if you put the supercharger station literally everywhere or he gives your battery infinite power, both of which seem difficult. Olivia or you can carry a spare in the trunk. Matt there is somewhere that you will have range anxiety. Betty it is anxiety, but it is is it a real anxiety . We have yet to hear about drivers being stranded in the middle of nowhere. Matt George Clooney<\/a> was stranded out in the road. Betty and used to Pay Attention<\/a> to his gauge and figure it out. Matt i run out of gas a lot. Betty the dow gets a new member today. Apple. It is Goldman Sachs<\/a> that will have the biggest waiting with a 7. 1 share making it the first bank to hold the top spot since Jp Morgan Chase<\/a> in 2000. They have a stronger w eighting. Olivia i am not sure how relevant the dow is anymore of the american economy. Betty it isnt. Matt i wouldnt say that. You can say i heard scarlet saying only 33 billion in index funds are invested in the dow where it is 2 trillion in and i get that. The average person in america still looks to the doubt for a direction of the market. If that is not relevant i guess you can save the opinion of the majority of americans is not. Betty and is not representative of the economy but it is still relevant to the American People<\/a> because they have grown up with the dow. It is truly the s p that we should be focused on. If you open up a usa today on any given day, they talk about the dow. Matt everyone knows that, but it is weird that Goldman Sachs<\/a> is worth 110 but apple is more heavily weighted. Betty oil resumed its long its slump. Futures sell fell after stopping a sixday losing streak. All those that said the slump in oil will continue can dance here. Crude is down another 3 this morning. Olivia oil will go to 35 per barrel according to one. That is huge. Matt they think it will hit 20 at one point. We are still a long way away from 20. We havent reached 40. Olivia he says we are several weeks away from where refiners have to cut down production because theres nowhere left to store the oil. Betty thats true. He Still Believes<\/a> oil will go back up, right . There will be a dip but it will go back to the 60s. As we near the opening bell we get a check on where futures have settled and they have settled lower. Betty welcome back. Let us get back to bringing you the most supported stories before the bell. Joining me is Olivia Sterns<\/a> and matt miller. Our number one story is the Federal Reserve<\/a> of course. Come on matt. Get excited. Matt just lost patience as the janet yellen. Matt not many guns and roses references by the way. I have seen one in the last 24 hours. They immortalize patients. Betty you would be thinking about guns and roses when you think about patience. Matt i thought the best moment yesterday was when she was asked about the Ongoing Investigation<\/a> and they l concerned look she gave. You can bring it back to Monetary Policy<\/a> if you want but was it really exciting . We knew they were not going to change rates and they will not change rates next month. When we wait until later in the year to talk about this . Betty bond markets are now only pricing in a 10 likelihood that she will raise rates in june. Betty i think it was at 30 before the meeting. Matt the smartest people i talked to say they will never raise rates. Betty i want to bring in jim who is saying there will be at least no rate hike this year right . Jim thats right. It is Paradise City<\/a> for the market. Olivia so lame. Betty layout the reaction to the fed yesterday. Jim i had a different take on it. She defined the definition of patients for two meanings before she raised rates two meetings before she raised rates in december. Then she said patience does not mean what i said it meant. It wasnt about changing policy. It was about a correction of a mistake. Removing patience had no meaning. The lowering of the funds rate target pushed off the idea there will be a rate hike anytime soon. The takeaway is not what the New York Times<\/a> or wall street journal said. To take away is the fed pushed it off until the end of the year of 2016. That is why you saw the markets take off like they did. Matt the soundbite that betty played earlier was the best part of the conference where she says we watched the data. Rather than trying to figure out my definition of patience why dont you just watch the data and you can figure out as we figure it out. Is not better than a bunch of finance people sitting around and the patient and debating what patience means . Jim welsh he defined patience so thats where the trouble came in. The remember back 18 months ago or two years ago that it used to be when the Unemployment Rate<\/a> got under 7 they will move. That it was 6. 5. Then it was considerable time. Than it was haitians patience. Whatever data they can drag out to support their preconceived notions is why janet yellen keeps coming back to try to give us patients needs to meetings. Olivia to think full employment means 5. 2 but it is not measured by a topline number. What extent do you think the strength of the dollar will delay the right heart rate hike . Jim there are dozens of companies that said it is hurting earnings. The strength of the dollar probably took 19 billion out of u. S. Corporation earnings in just the fourth quarter. That is enough of a drag right there that if the fed is looking for a rate hike, they got it in terms of the strength of the dollar. Yesterday was a wild turnaround but the trend will still be up for the dollar. The fed should look at that and say that is no reason for a move. That is why i am sticking with 2016 or never. Betty are you pulling back from the never . Jim now. Never meant to me that they will only raise rates when zero is a problem. When they perceive that as a problem, that is when they will raise rates. There will be no reason for them to raise rates now. Olivia there are others that think it will not move until 2016. What might be more significant is how in january, janet yellen described the recovery a solid. She dropped that in february and now what she is saying is the recovery has moderated somewhat. It sounds like she is guiding lower. Jim it probably is. It will be hard for her to reverse that for a june rate hike. How can you go from solid and moderating and then say things got better but now we will hike rates in june . I think at the very minimum we are looking at the end of this year for a rate hike and probably 2016. Betty digit current any credibility with you after yesterdays conference . Jim yes because i think she got through it without making a mistake again. She is one of the best economists in the world and she is in the right job at the right time. As far as her public speaking, she goes too far. Remember she defined considerable time at six months last year. The pr machine spent all year saying she didnt mean that. Did it again with haitians patience and defining as to meetings. Leave them guessing a little bit because otherwise you box yourself in. College is way for you to drop the word at the meeting and then wait for the right hike. Matt she didnt go further with the investigation. She is not slipping information about that. She is not getting along well with congress. Jim the leak investigation is troublesome because it has gone on for many years. As far as congress goes, i have been watching the fed for a long time and people seem to forget the vitriol that congress had full vogler had for bulger. Congress and the fed will never have a good relationship. It will always be strained. That is part of the job as Federal Reserve<\/a> chairman is to go up there and take the bullets. Anyone remember marcy yelling at ben bernanke . This stuff goes on forever and ever between the congress and the fed and it will continue to do that. I didnt see what happened last month as being anything out of the ordinary. Betty thank you so much. Thanks to matt miller and Olivia Sterns<\/a>. We leave it there. Still to come, we are staying on the market. A big week for homebuilders. Janet yellen said she will change the rate hike sometime down the road. Interest rates are being kept at record lows. More on that interview next. Betty trading just underway so i want to get back to scarlet fu or a look at the early moving action. Scarlet homebuilders is on my list. It is trading at a twoweek high after lennar reported results beating estimates. New orders rose 18 . The ceo says early signals from the spring selling season indicate the Housing Market<\/a> is improving. You are seeing gains in d. R. Horton which is their bigger rival. Energy shares are the worst performers. The s p has dropped exports six points. To Oil Companies<\/a> pay selling pressure from a downgrade. Chesapeake is increasing to four times debt he beatebitda. The market will be oversupplied once again this summer. Ebay is moving lower in the early trade. It was downgraded and cut to 49. Competition from Google Wallet<\/a> and facebook and you name it caused this. We will end on an up note with the fourth day of gains for apple. Of 4 10 of 1 but it is now a part of the Dow Jones Industrial<\/a> average. Apple is now the fifth biggest component of the dow. I was talking to our etf analyst and he says the etf will have to buy apple shares about 500 million worth. That is fairly insignificant when you think about the market cap. Betty and heading to a trillion. Thank you so much. Back to switzerland. This was National Bank<\/a> president has pledged to keep rates at a record low to weaken the franc. We went very far with the 75 basis points. We are now going to see you what the impact is and determine if this is the right level. Betty the bank said it will continue to take account of the Exchange Bank<\/a> situation. It is not alone in worrying about rates. The Federal Reserve<\/a> has opened a door to a rate hike later this year, but janet yellen acknowledged the negative consequence of the dollars search. John, what else did jordan tell you about their Economic Situation<\/a> . We were saying that he has a tough job and we feel bad that he is in this place. John he has a tough job. This is a country dealing with the fallout of ending a threeyear policy to cap the swiss franc. A pillar of Monetary Policy<\/a>. Then they capitulated and it ripped through the market. We have never seen anything like it before and you are. Anywhere. They slashed their forecast of growth. If you want a swiss franc, they think it is too strong. This is what he said to me about the currency. Over time, i am convinced markets will realize the frank is overvalued and it is not attractive at the moment. John if the markets get the memo i dont think so. The swiss francs strength through much of the morning is evident because they have anymore. It will not come back anytime soon if you listen to these guys. Rates are already deep into the negative territory. It is with a little bit less after january 15. The market is not listening. To have to hope the swiss franc does weaken going forward. Betty we were saying earlier it is hard to believe his words now with what you just showed us testifying to that. What about jordan and looking at the movements after he talked about this amazing move . Does he have any regrets at all about the decision to end the cap . John i asked him that question and listen to him for about an hour and a half eating at a press conference about this as well. No regrets. If he did, he wasnt going to talk to me about them. He believes he maintained the most credibility to the central bank that he could. If they waited longer, they could have lost even more credibility. The biggest question here the Lessons Learned<\/a> are for the guys in the city of london and on wall street as well. They got comfortable over the last six years believing the Central Bank Pledge<\/a> that they will look after us and do whatever it takes. The warm hug of mario draghi and janet yellen. The example of january 15 is an example that the Central Banks<\/a> it really is out of their hands. Betty thank you very much. March madness is in full swing and so is the bloomberg racket. I will tell you which teams heavy hitters have winning the big dance. Betty it is the most wonderful time of the year for basketball fans. March madness is no joke. Bloomberg is betting big this year. We reached out to the biggest names in business and finance to be art of the bloomberg bracket showdown. They are putting 10,000 each in the name of philanthropy. Stephanie ruhle spoke with one of them. Stephanie one of them . All of them. 36 of us are in on this. That is 36,000. You have to be a huge College Hoops<\/a> fan. You might not follow basketball but there are so many games and teams. Luck is a huge part. 63 of our participants bet on kentucky. We have guys playing with other teams. We have one with the Boston Celtics<\/a> and one with the milwaukee bucks. They want to have their eye on kentucky players because they will be in the nba in no time. They could have these players three years from now as the stars of the nba. The biggest benefactor to the university of virginia is clearly weighing or uva clearly playing for uva. It will be really fun. Betty looking through the faces here. Tim armstrong for wisconsin. Stephanie wisconsin, duke, uva there are other schools. Kentucky is the odd favorite. People want 36,000 for their charity. I am playing for girls inc. Betty you picked kentucky. Stephanie of course. I do have duke going far and uva going far. And wisconsin and notre dame. A few years ago i bet against levite and it hurt me because they want lost. John just wants to win. He wants to dog on his opponents and went. We have people here who are not big basketball fans. I know very little about basketball but i think he should have had the team name bass ball because of the team, not the team name. Betty i know practically nothing about this. Stephanie we have someone from Neiman Marcus<\/a> was not a basketball woman but she is in. Betty i am in good company with you and eric. Stephanie ruhle and be sure to catch our coverage of the bracket starting at 11 00 a. M. This morning. And you not want to root for gas guzzling cars . There is a new thing called formula e. We will so you about that next tell you about that next. Betty formula one racing is now one of the most popular forms of racing but a new version is taking off. Formula e where the e stands for electric. One billionaires backing this new sport. Nothing fuels innovation like a little competition at least that is the idea driving formula e. When you have tens of millions of dollars being attached to the winner, new breakthroughs happen. Formula e is the worlds first fully electric racing. The combination of lift and green energy make this a natural fit for sir richard branson. I tracked him down in miami. Our whole aspiration for a new variety. I hope people will walk on the street with a car puffing out less black smoke. Formula e is a spin off of the most popular motorsport in the world, formula one. There are a few key differences. For starters, formulate you drivers do not just changed tires, they change cars. Speeds tap out at 100 miles per hour. You hear the screaming of the cars as they are coming. It is different. You dont have the roll. As people get used to these wonderful drivers vying for first place, the amount of people that watch have grown well. Bransons team is one of 10 teams competing in the inaugural season. They all use the same electric car but they will be behind their own Technology Next<\/a> year. Are you going to take some of this technology and put in some virgin rockets . We have virgin engineering on the sides of the cars we have people trying to develop some more. You never know. You may find virgin competing with tesla in the car business. We will see what happens. Betty Olivia Sterns<\/a> joining me now. Sounds like he is going the gauntlet down with elon musk here. Olivia doesnt it . That would be something if he decides to take on musk on the road. He is in investing money in this technology. A very sexy sport and the perfect location on the beach of miami. Betty did you get behind one of these . Olivia i asked, but of course i was not allowed to. I asked to wear the flag but i was not able to. The sound it was the big difference. It is a hiss. Everyone in the pit whistles so you know the car is coming. You have the deep roar as you do with formally one formula one. Betty thank you so much for bringing that for us. Thats it for today on in the loop. Meet the man that is called mr. China. One of the few silicon investors who understands how to do business there. He just invested in fab. Com. Blue mobile is giving up with the kardashians. The ceo joins us with how he will make millions or even billions off of them kardashian. That is tomorrow on in the loop. From bloomberg World Headquarters<\/a> in new york, this is in the loop with betty liu. This is Market Makers<\/a> stephanie one lawyer is calling foul. 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