It really needed a fashion enthusiast. I am shifting from radio to tv. I woke up this morning i said where the blue bowtie. You will be gorgeousity. Were going to ask a guy who knows best this is a story that broke before we set out. Carl icahn is declaring victory against our old. He has been pushing tim cook to buy back 50 billion worth of stock this year. No reasonhat we see to persist with our nonbinding proposal. The company is so close to fulfilling our requested target repurchase. It might also have to do within influential advisor recommending that they vote against this proposal. Lets ring in tom giles. Break it down for us. Not often see carl icahn back down from anything. He saw the writing on the wall. Said thatme out and we see no reason for them to be hamstrung in this way. We do not want them micromanaged. We do not want someone coming in and telling apple to do something beyond what it already does. They have already returned a great deal of their cash to shareholders. You also have to keep in mind how much of that money is held off of sure, as opposed to in the u. S. It is one thing to return cash that is already here. Who quieted carl icahn . Who is iss . This is a shareholder advisory firm. They give advice to shareholders on various proposals that are before the shareholding bodies. If i am running the rule fund, the rule value fund i have 147 holdings. I need them, dont i . They look to these firms for advice. There are a lot of proposals every year before every company. You are a fund manager and you want someone you can trust grid theres a belief that they are looking out for the little guy. Is this a move that pushes back against activist investing . There has been criticism saying activist investors are not there for the betterment of longterm shareholders. They are there to get out. I pointed him over and yahoo . Marissa mayer where is dan now . What does this say about activist investing . There is a backlash now. They are out for themselves and the quick buck. Carl icahn has upped his safety. He is really putting his money where his mouth is. That is why people love him. He is never all talk. 3. 6 billion the last time i checked. It is his own money. With get our head around this. He is not managing anybodys money but his own. 3. 6 billion. Chew on that. Day chart to show the on apple trading. Lower on this announcement. It comes right back. I look at them as 400 to 527. It puts the onus back on apple. Theres this big question about the rash of products they put out. It is nearing the end of its cycle. Everybody wants apple to do the next big thing. Younot going to bring will not do a lot in buyback. They cannot make a big acquisition. They have a lot of cash that they have to pour into new products. They can do another transaction. That worked out. Their timing was impeccable. Thank you for giving us the latest. Blue tie, blue bowtie. I got the Stephanie Ruhle memo. I wish the whole company got or downs at mcdonalds for a Third Straight month. Boeing 3. 3 in january, which was worse than forecast. Julie hyman is here. I did not get the memo. Mcdonalds continues to struggle as it has been. Another disappointment with that. 3. 3 sales decline domestically. They have been struggling to get the right mix. It has been expanding and experimenting with its menu. Particularly with the value side of the equation. Like you are saying with walmart, you are seeing the lowest end of the spectrum struggle. That is affecting places like walmart and mcdonalds. On the flipside, if you look at the overall comparable sales normal for last month, you saw a gain of 1. 2 . That was better than estimated. The growth is coming from international. They are up 16 for the last 10 years. The new research, are they a damaged wood chip . Or is this a tweak in the road . If you look at the timeline, it looks like a tweak in the road. Particularly if theyre going to get that growth from abroad. This weekend, they open their first store in southeast asia. In vietnam. The ceo, don thompson, says they want to expand africa. That is where the growth will come from. By the same token, one third of sales come from the United States. We do surveillance research. Lets see how many times Stephanie Ruhle eight at mcdonalds. I cannot say. My childrens have been there. They love it. Do you know why people eat their . It is tasty. It is what it is. Myi go with the idea number two value meal, i like. Mcdonalds, you have to be hooked into the greater economy. Not just about mcdonalds. That goes back to what i talked about with walmart. You are seeing these various businesses that rely in particular on americans who are making the least. Those seem to be the businesses. They are suffering the most. I cannot remember the last time i got anything mcdonalds. She is so tiny and healthy. You have to give it to julie hyman. The last time it with a lunch, it was not mcdonalds. It was the four seasons. Nobody loves that like this girl. When we come back, one of the biggest drugmakers is setting its sights. Is it too low . We will talk to the ceo of fo sonifi. And Mark Andreessen shots off on shareholders. He doesnt on twitter. He even tweeted me. This is market makers. You are watching bloomberg tv. We are streaming live on your phone, tablet, and bloomberg. Com. Good morning everyone. Stephanie ruhle and tom keene. The market is down negatively. In washington, forget about the debt ceiling for now. The Obama Administration is excited to release its newest Cyber Security strategy. Lb this week. U. S. Companies are getting hammered. You know about target and others. They will watch that release closely. , our to Phil Mattingly white house correspondent. He is looking at this. What is the to do list for the administration as they go to this announcement this week . What youre going to see as they are to lay out standards. These are based on executive orders released last year. Basically, this is what they have to do because they cannot get a legislative fix out of congress. They will lay out what companies provide critical services. Youre talking energy, water, financial services. What they should do to guard against cyber attacks. Rigorous put in a safeguards that force companies to do something but this one clue that. The government will give them a prescription. Will they give aid or partnership in terms of funding . That is the big missing piece. That is the piece that Congress Needs to fill. They have not come to an agreement yet. They have been lobbying for this. Boeing, ge, bank of america they have had private meetings. They need incentives to make this work. Any tax incentives to build the infrastructure. Else the protection from lawsuits. They are saying that if were going to share information with the government, we need to make sure we will not get sued for handing out that information. , i know the day is just starting in washington. With the crack of dawn, what is being done on the debt ceiling . I read a Washington Post article. It sounds like you accomplish nothing this weekend. You cannot expect lawmakers to work on weekends. Definitely not the month of august either. This is all part of the process. You know how this will work or in the process or the problem . They align here. Republicans need some kind of sweetener to get their members and some democrats to vote to move this forward. Keep an eye on a clean debt ceiling increase in the house. No republican wants to do it. They do not want to vote it back to their district. It might be the only option the john boehner has. One more switch gears. I know your encyclopedic. Texas willistrict in greet janet yellen tomorrow morning on capitol hill. Who is Jeb Hensarling and should janet yellen fear him . Absolutely. He is the chairman of the House Financial Services committee. A strong conservative from texas. Actually a staffer of phil gramm. Chairman of the banking committee. Anniversarytuted a investigation of the Federal Reserve grid on the 100th year in existence, the committee has pledged to spend the year digging into what the fed doesnt how they can change it. Janet yellen needs to be on guard. He is a very smart lawmaker. He can try to back witnesses into about spot. Thank you so much. And sterling studied economics at texas a m. What a surprise. I have no idea which way it will go. Michael mckee thinks he will be gentle on chairman ellen. I am not sure. Wall street is so excited. Lets see if he will be a puppeteer. When we come back, a game changer in the nfl. Were talking about pro football getting its first openly gay player. We will talk about it when we come back. Youre watching market makers. You can watch all of our interviews on apple tv. It ran new experience featuring live, streaming, ondemand videos. We are on apple. Good morning. Market makers this morning. The vix 15. 52 sonofi is a giant pharmaceutical company. They have their first profit increase in four years. Investors wanted to see more growth. Some say they are lowering expectations. Officerief executive spend most of dabo swinney Stephanie Ruhle. He joins us now on set. Your here with a visit from your president hollande. What i find amazing we have not seen a french president and america in 18 years. This stems pay. This is the first state visit. There are various types of visits. This is the highest level. Obviously, he has been here before, but not with all of the treatment of a state visit. I think most americans are unaware of the size of French Business in the United States. There is a substantial french investment in companies in the United States. There is. One of the things about being a European Company is that you outgrow your domestic market much quicker. Historically, European Companies have always moved outside of their home countries. The United States has been a logical place. Sanofi has been investing for years. A spent 20 billion to invest few years ago. We invested in my finances. I thought that was to give bruins tickets. [laughter] now youre in biotech. Is that the wave of the future . Access tot to have innovation and a wide range of resources. It is a Risky Business and you want to diversify your source of innovation. Doing the deal that we did recently, it is kind of a capital sparing way of having multiple harder ships. You could than 10 million to buy one thing or you could do 12 things for that. It seems like the right move. Are you frustrated . You forecasted your first increase in four years and investors are not saying it is enough. Do you feel like saying what gives . I have been in business a long time. Investors are always looking for more. I despair. What were trying to do is say it is not just about the guidance for 2014. We have constructed a company that grows. We have a strong pipeline. We have nine products to launch. 80 of them are in biologics. What i really want to see this company do is distinguish itself from the rest of the industry. On the basis of sustainability and innovation. Move much higher. Are investors unrealistic . The fact they could be disappointed last week our shareholders just expecting too much . , they were disappointed on thursday and happy on friday. The stock is up again on monday. What is important is that you have to run a company for the future. You cannot follow the market trends. We are 120,000 people worldwide. If you look at our investors, a lot have been in the company for 20 years. They have been in the company for 20 years. The rap on u. S. Investors they want to buy adrs in europe. Theres a big tone about return. You have had good performance recently. 10 total return. Do you see Continental Europe companies becoming more anglo . More american in focusing on use of cash and shareholder return . Actually, we have doubled the share price in the last three years. The last three years has been fined. It all depends when you bought and sold. I look at our investments, some of our top investors have been in for 20 years. Theyre not any different from a european. What you do have to do, if you are this size company, we have one third of our investors in the United States. You do have to make sure you have an investment pieces. I do not think that you have to change your corporate strategy. Sounds like a fidelity, a pimco investor. As a corporate ceo, how do you feel about activist investors . Are you hoping they do not figure out your phone number . Along andivist comes tries to create shareholder value. Are they . It keeps everybody honest. Does not apple and it look like iss agrees with carl icahn. It is not a bad thing that carl icahn put it on the table. What is important is that we are a longterm investment. It takes 10 years to create a product. I need to have a Shareholder Base that understands those longterm returns. We are necessarily competing for all of the investors. The market is you have to subsegment and figure out where to play. Where we have been as a company, i have been happy. When you look at sanofi, there are a lot of acquisitions. What is your to do list for 2014 . Is there a geography or industry that is front and center . Was very exciting here is that we have new products to launch. We have not had a lot of new products in the last 10 years. We have a pcs k9 that will take your cholesterol you have flea and tick repellent, from line . We love our cats and dogs. Fiercely. New products for rheumatoid arthritis. We will focus on new product launches. To me, the quiet ring about these companies is not the stuff that makes the headlines. The basic products what was turned down last year . Will you appeal . I have never appealed. Thatnk this is a product has been approved by 30 countries. We have seen people on phase two studies followup. They have been five years without a relapse. Of patient lot groups and like to have access to that product. We will have you filed the appeal . You have to consult the fda and then progressively move up the agency. What is the best practices versus other Drug Companies . What is the single distinction of your company . The biggest thing is that we have a Business Model that allows us to grow because we are in animal health. Were in emerging markets. Ishave an r d pipeline that one of the top five in industry. When you have a nicely growing business and you can bring some important new medicines, you have good leverage. We have a really strong Business Model. It is less risky, more diverse. How about keeping your teams engaged and happy . It seems like people do not want to business in france. How do you run a company and say this is the place to do it . Life in france is still very good read there are over 1000 years of history. Do not count france out. We are able to recruit the best in france. Were one of the biggest market caps in france. We can take the brightest and best out of france. We can also develop internationally. Thank you so much. Thank you so, so much. We will have more when we come back. You are watching market makers. Were talking with Mark Andreessen when we come back. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and Stephanie Ruhle. Welcome back. I am Stephanie Ruhle, joined by tom keene. All we can long, i was fixated by Mark Andreessens twitter. Almost like an op ed. He writes about a lot of things, like tech investors. I thought this was super interesting. I want to redo one that stood out. At any given time, the Shareholder Base consists entirely of one growth investors, value investors, or no one. Away, can these companies run, or are they under too much scrutiny from shareholders . We analyze every day every Single Company and ceo. Should we give them some space . I think it is a raging debate. At the bottom line is like argentina. They feel they have their own rulebook. The tech people in Silicon Valley people, really feel, that they get to play by a different rule book. Some sense is missing. Companies,tch tech whether ebay or aol, try to figure out their next move, investors do not want to wait. They want to invest in twitter or facebook that they have not seen turn a profit yet. That is true. We have seen a lot of shareholder return. Amazon is archetype of this. A huge revenue growth, huge promises. Very little profit. That is not much different from twitter, which arguably is different. Is that the new Business Model that we should follow . Look at the amazon model. That is what we should evaluate. If you look at the fortune 500 companies, they are paralyzed. They are afraid of shareholders. The ceo is afraid of the board. I think is an interesting mix. One thing that everyone can agree on is that this is a very different idea. This is a much more mature industry. They are bringing out the new companies, linkedin and twitter and such. They bring up their ipos is very short slowly. Should we give these companies more time to make acquisitions . As soon as you get in we have moaned and groaned about microsoft not announcing a ceo. The moment they do, the market response. Maybe we should give them slack. That is a debate that is out there. Mr. Andreessen was very visible. I missed most of these comments because i could not get to the fourth type of flappy birds. Who better to do this than matt miller . Isis an addictive game that soaring to the top of iphone and android app stores. It has disappeared. As tom mentioned, flappy birds worst name ever. Announced that he cannot take it anymore. He pulled the game without allowing any other publishers to buy it. I cannot explain this phenomenon. There is no room for flappy bird in my dojo. Matt miller understand that. Explain. Is from vietnam. He is an independent developer. This is an exciting story. Had one loner programmer who makes a game against a number one on the charts. This game has 50 million downloads. At one point, near the end, he made 50,