Im Erik Schatzker. Im scarlet fu in for stephanie ruhle. Airlines,al, malaysia we will try to make you forget about some of that stuff. In the meantime, newsfeed stories, and around the world. Consumer spending rose slightly in february. It again 0. 3 . Oft is the median forecast economists we polled at bloomberg. Americans are slowly shaking off the effects of the coldest winter in four years. Household spending on Services Including utilities rose 0. 2 in the month. Cbss billboard business has gone public and will start trading any minute now. Raising 560 million. It will still be 83 owned by cbs corporate but eventually cbs shareholders will own all. Chris christie says he is still baffled by decisions his formal former aides made in the George Washington bridge scandal. The new jersey governor made the comment in an interview with abc news anchor diane sawyer. When things were first reported i said, this cant possibly be true, because who would do Something Like that . Sometimes people do inexplicably stupid things. So that is what makes it so hard, as the guy in charge. None of it made any sense to me. To some extent, still does not. The interview coming on the same day a report that Christie Commission found he had no knowledge of the bridge closures. The final call for obama care. Americans have until monday to sign up for health care insurance. Though the deadline is a little soft, lets say. The big question are enough healthy people, the socalled young invincibles signing up . We have the president and ceo of Independence Blue Cross of philadelphia which has been very active in seeking out the uninsured. How successful have you been finding the socalled young invincibles . Good morning. As aendence blue cross blue cross plan, we have been committed to reform for the last four years, since the law was enacted. We realized in order to make this work, not only did we have to reach out to the subsidy eligible population, the older population, but we needed to get the young and traditionally healthier population into the mix. Its working. Over the last month, we have seen a downturn in our average of enrollees to well over and well over a year. We used twitter and facebook and were have got the people were young people are. We used what we called the independents express, a semi truck that folds out into the apple store. Youtubeonline contests, contests where people talk about the importance of enrolling and we have seen a significant number of young people coming to us as the clock moves toward march 21 march 31. You have five planes offer. Silver is right in the middle. Where are the young invincibles signing up . Silver as well . The majority are going for the silver plan. It seems to work in terms of theays and access to various networks, physicians and other specialties. That is where they are tending to fall. Overall we have enrollees of 180,000 in our pennsylvania market, our new jersey market. And we have seen a trend downward. The last two weeks weve seen about 20,000 young folks sign up. For 2000 young people. To what do you attribute that . To the things you were making mention on your us, for example, willing out, trying to broadcast the message, or do you attribute and the some of it to the quirky, lets call it, Campaign Tactics used by the Obama Administration like putting the president on with zach between two ferns . I think it is a combination of both. Number one, yes the Administration Made an effort, the Insurance Industry has made an effort to be to the young invincibles where they are. It is all working. I think it is really using social media in ways that we have not done in the past. Rybody predict it government, the president , and the industry predicted that young people would sign up later than the rest. It is about educating them in the way that they hear it and the way they understand the importance of enrolling. I have seen the latest figures from the Kaiser FamilyFoundation Poll, nonpartisan gives us a sense of how people feel about the Affordable Care act. Saidl 50 of people polled that they still have absolutely no plans whatsoever to enroll in obamacare. What is it going to mean for Companies Like yours which meet all of these enrollees to make it financially feasible . . Lets take a step back. The risk pool has to be right. , we made alan decision not to be political in implementation but out on the front line and enrolling people. We firmly believe that if we want to people are older people at Community Centers and churches, middleaged folks at ballgames and other Community Events him and the young invincibles through social media, that we would attract them. It remains to be seen how it will work out financially. Our first and foremost goal was to enroll as many people as we could. It is the law of the land. We have a responsibility to do that. So far, so good. So far 110,000 people have signed up for obamacare through you guys. What about the plans you had to drop . Who are they and what kind of plans did you have to drop . Realizede started, we that the first goal was to go out and educate people. We spent the first few months through the independent six arrests and social media and other means explaining what the new law means. The next couple of months we reached out to our existing customers who had plans that were not compliant with the Affordable Care act. Working with the administration and State Government here in pennsylvania, State Government in new jersey, recalls walked them to compliant plans. All in all, the vast majority, with the exception of a few thousand, we were able to move to new complaint plans. We had a great deal of success. I think it has been a mixed bag across the country but we were very pleased we were able to get to those individuals, get to their families and help them move across the compliant plans. Takew long is it going to before you and Independence Blue Cross know whether the Affordable Care act is good is this . Good business . And comes down to what you reference earlier, the case mix. We need to have enough of the younger, healthier individuals in the program to make it work. We believe that the first year, our goal is to enroll folks. We certainly try to price it at a level that was, a, affordable but, be, make it good from a business perspective. As we move forward we will have a sense of what we need to do and exactly how good it is from a business and financial perspective. What is your early read . As i said consistently it has been focusing on enrolling people. I understand that but if you look at at a segmentation of people you were able to sign up. You talk about the elderly, the middleaged, the young invincibles. You look at the folks you do have signed up, the 180,000 between pennsylvania and new jersey, does a look at though that segmentation will lend itself to Good Business or is this going to be less profitable for Independence Blue Cross than your previous business . You have to first take a step back and realize we are only talking about five percent to six percent of our overall business. Going into that we had very conservative Profit Margins built into our plans. I would say what we have seen to date is it is just about where we thought it was, maybe trending a little younger than we thought. We did not plan to make a lot of money on this business. I think we will end up exactly where we would end thought we would end up. Point, early indications are the demographics are about what we thought they would be. 246 a month. What if you dont sign up more young invincibles . What is the possible effect of policy premiums next year . I think it definitely will have an impact on premiums if the young people stay away. Coming ine and more in the final days. But it will impact the pricing. Heres the interesting thing, though. We are already working on our 2015 pricing and related data that we will have to put the prices in place by january, february, and march data. Again, it is going to be a bit. F a crapshoot going into 2015 but less people who are young who sign up, that certainly impacts the risk pool. Heard about the three rs risk carter, reinsurance or other means were somebody who gets a bad riskpool, other plants will compensate them for it or government will compensate. So what still remains to be seen how this whole thing will play out. But you are right, young people have to sign up to ultimately make this program work. And unofficially they have until march 31 to do it. Thank you so much. President and ceo of Independence Blue Cross of philadelphia. Shares of blackberry arising. Investors cheering an Earnings Report that showed a smaller than expected loss and revenue was also smaller than expected. What should you do take away . At hudsonrincipal Square Research and he has a sell rating on black berry blackberry with a five dollar price target. It looks like costcutting was a big beneficiary to blackberrys bottom line even with the loss. How much is left . They said consistently they expect to be cash flow positive by the Fourth Quarter. Thanhile the loss was less expected on the net line, cash flow from operations was. Egative 553 million they are burning through a substantial amount of cash. They have really net cash of 1. 5 billion and they burned it million in the quarter. Gross margins were better in part because they sold so few handsets. Right now they are losing money when they sell a handset. When they sell few of them ironically it is better for the net line. Only 1. 3 million blackberry from a quarter of there are over 250 million smartphones sold every quarter. Down 70 78 year over year. Great,ostcutting sounds but you can only cause cut so much when your sales are falling 78 yearoveryear. 43 yearevenue is down over year. It just seems like there is too much headwind in front of them. They have bit of a honeymoon with john chen who moved fast but now they are talking about different handsets. The core blackberry fan has always loved their handset. They did not need a bunch of different models. Sort of a handset spaghetti against the wall strategy. Promised ushn chen he was not going to do that blackberry would narrow the range of handsets . Yeah, he was going to bring that the keyboard but ultimately would try to build an Enterprise Business that was not consumer handset focus . Right. Is exactly to be honest, i cant keep track of the number of handsets they have been talking about since the congress in barcelona last month. Going to keep the company alive, if they can, is the overall platform. And consumers going to rely on blackberry for their go to mobile strategy . I will point to a big hole in the platform which is tablets. Most consumers today have both. I think yesterdays announcement of Office Coming to the ipad helps underscore that. , the predecessor, said tablets were a fad. With the ipad ensuring it will be a productivity tool percentages and it came in and blackberry does not have an offering. They are just losing subscribers. That is were all the prophets are coming from. And then they have a strategy, which sounds good on paper, being the Software Service provider to enterprise similar to what we see with Good Technology and mobile iron and these services. In the past, blackberry has never gotten a lot of money from enterprise. They get it from the carrier sprint the contractor going away. Being case of cautious or bearish about blackberry but what is it about john chen that has investors at least for now convinced they can make he can make a difference . When you have a new ceo, there is almost always i think we just lost dan. Maybe he was talking on a blackberry. I will tell you this, i use a blackberry but the phone works just line. But unfortunately dan must have been on an iphone. Or maybe his landline went out. Daniel ernst from hudson Square Research. Be speakingng will to the blackberry ceo. Something you do not want to miss. If you are optimistic about blackberry maybe john chen will give you more reason to be a true believer. Coming up, walmart is suing visa for allegedly fixing of transaction fees. What is this lawsuit boil down to . For profits. You heard all the Horror Stories from the high seas. And the cruise industry persuade you to come back . Or take a first cruise. You are watching market Bloomberg Television, streaming on your smart phone and tablet, all over digital bloomberg. Com, apple tv, we are everywhere. A big take a legal development. Walmart is suing visa for allegedly conspiring with thanks to fix transaction fees hear it and walmart wants 5 billion or more in damages. Julie hyman is following the story for us. What does this boil down to . An old argument between the companies. Various Credit Card Companies have been basically fighting with retailers for a long time. There was a lawsuit if that happened that was settled in the fall involving some of the same allegations but walmart opted out of that because it wanted the opportunity to sue on its own, which it is now doing. Essentially it says, yes, there is price fixing of the fees. Visa essentially has recommended rates and that it recommends for all types of retailers in different categories. And as a sort of the fee setting mechanism, that is the target of this. Iswhat walmart is saying there isnt a real competition between the credit card Payment Networks. I was talking to an analyst on how the discount swipe fee, where the money go and how does a breakdown . We just put it up. Lets bring it back. You have the interchange fee, the bulk of it. This is the fee that is at the heart of the argument here. That fee, by the way, goes back to the banks. Kept by visa and mastercard but visa is the target of this because it sets the rates. Of aonly about a 10th percent goes to visa or mastercard. Inquirerthe merchant acquirer, the processing company, its the remainder. That is the nittygritty. Overall fee is around 2 of that is the average. Walmart negotiates with ease. It is negotiate between the two parties. Because of the volume, the amount of transactions that go through walmart, it is likely that it is able to negotiate somewhat of a lower fee. Is tied to how much the fact that walmart has been trying to do Financial Services on its own as well . And not just on its own but also with other retailers. A form something called the mcx exchange, basically an attempt to form some sort of mobile Payment Network on its own. The other mobile Payment Networks that are out there. Basically walmart, and other retailers, they dont necessarily like to be beholden to the Credit Card Companies in this fashion. So that is where it goes back to. And of course, there was a fight over debit cards as well and you got the cap on debit card fees. A long and been contentious relationship and this is the latest in that. How successful this litigation will be and whether it will end up being settled. Visa and very least, mastercard has to pay everyone else to go away. Is interesting is the original settlement went from billionlion to 5. 5 because of this opted out, including the Minnesota Twins who brought their own sword. Brought their own suit. Coming back innovation in the cruise industry. Celebrity chefs, rock climbing walls. Cruisers as this industry attempt to move past the safety concerns. Approaching 26 minutes past the hour. Time for bloomberg Market Makers and we will give you a snapshot of major indices. The dow trading up 125 points. Income increased 0. 3 as well. Consumer confidence coming in a little shyer of what analysts were anticipating but ending the quarter on a little bit of a high note. Outdoorsention of cbs moving higher in their trading debut. The other forgotten ipo of the week. The billboard Business Owner i still 83 owned by cbs. We will be back in two minutes. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. This is Market Makers. Schatzker. Im scarlet fu in for stephanie ruhle. Tgif indeed. It has been long i had to do radio and you were recovering from last week. Lets move on and look ahead to more enjoyable times. For those going on vacation, the cruise industry is gaining customers in spite of several incidents last year. 2013. M how is Royal Caribbean making sure those travelers are sticking with them . Us Adam Goldstein is with right now. The holy grail for the cruise line industry is the first time her. Those who have never taken a cruise before and want to try. Can you give a breakdown of how many customers are firsttime travelers versus returnees . On average on our cruises, about 30 of the guests have never been on the cruise. The other 70 may have been with us before are not that they have been on a cruise. Do they spend more money . Is the idiot to bring them in for a lifetime . The lifetime value of the customer. Bringing more into the category. Bringing more into the cruise proposition at a young age. Three retirement. Has the cruise industry found itself having to spend more re the firsttime cruiser because of the highly fires