On this monday. Vine ist to say that lost on me but when you watch you cannot help but crack up. Theyre pretty awesome. Time now to get to business. The top business stories from around the world. Stocks are dropping around the globe today. A tech selloff is leading the way. The s and p, dow jones, and nasdaq all down across the board. Investors have been selling some of the bull market best performers. A management reorganization of charles how it is now copresident and will develop a new era of leaders. A total of 10 executives will have new roles. The vice chair told bloomberg tv this does not signal the ceo is preparing to step down. I can be very clear on this. I have spent time with larry. I have never seen an executive as committed, intense as lately. He is not going anywhere. In sports, kentucky is a 2. 5 the ncaaorite to win mens Basketball Championship tonight. Neither team is favored when the tournament started. Kentucky was seated eighth in the region. All five of kentucky starters are freshman. What does that mean . They are going to have a huge run. They have another three years. They have so many seniors on the team. Are you wearing Kentucky Blue . Maybe i am. Trouble. S in the nasdaq was the worst in two months and it continues this morning. You have heard this before. A correction may not be a bad thing for a frothy market. He is had at technology, Equity Research. Correction . Good thing . At thing . Bad thing . It is not surprising. More stocks in more speculative areas have been indicative of some excesses. We are seeing a lot of those last wrong off over the couple of days. We do not think it is that unhealthy. It is somewhat of an exaggeration to suggest there is a massive tech selloff going on. You look over the last month. We have seen declines in the market youre the ones in the Technology Sector are not that much more significant. Perhaps not yet. There are an awful lot of momentum players. What is the risk that this continues . I think the concerns at this become a just the fed little more proactive in some of the actions that could result in higher Interest Rates . People were thinking about earning season around the corner and wondering if Technology Companies are going to be able to deliver not only results but favorable guidance as well. Lets break this down. Lets say this is a minor correction. What Tech Companies are a buy for you . There are a number of Technology Names we like. We like bellwethers like emc and qualcomm. We think it makes sense to look at companies that are larger, Balance Sheet and are well positioned across a number of different categories. In the case of qualcomm mobile. How about things you do not like . Facebook, for example, sold off butst 20 in the past month is almost trading at 50 times forward earnings. 165on is trading at earnings after dropping 13 in the past month. We have not recommended amazon or facebook or twitter for some time at this stage. We have actually had sell recommendations on amazon and twitter within the last couple of weeks. We have become less negative on some of the names. Another name is webmd. We think it is a name that is overvalued. Another is adobe systems, more of a Traditional Software company that being valued as an ondemand Cloud Software company. We do not see that. Lets say i am a holder of twitter. I want to sell out to some of my positions . Them like wecall see them. In the case of twitter, we covered the week after the Company Became public with a sell opinion. We have that until a couple of weeks ago at most. We have a neutral opinion. We expect which are to perform in line with the s p 500 over the next 12 months. It means were are not positive. We are not saying sell but we are seeing neutral performance. Here we are. The market had a big move on friday. If you wanted to get investors a prescription, what should they be doing in tech . Evaluatingt thing is what they have and why. One of the aphorisms we use around here is this notion that when you are in the midst of a market storm you want to be on the bigger boats. Emc and qualcomm makes sense. It makes sense to come up with a wish list of names that you are interested in and might want to see certain prices on. Other names we like, by the way, include symantec and western union. Strong Balance Sheets. Ready substantial dividend as well. That is an increasing theme in the sector. Speaking of deep value, what about hewlettpackard or microsoft . Considerably this year and beating the market handedly and both trading at singledigit multiples. Opinions of both of these stocks. We did not see the turnaround coming in hp. We do like intel here. We have a buy opinion. We think the are a lot less levered to the pc category then people might think. That is another example of a name we like. Another name being hit right now and over the last couple of days is yahoo we upgraded that stock around 35 a share. It is trading below that. We think there is a lots of potential with the alibaba ipo. We see potential for reducing value related to a turnaround. What kind of moves . Some say alibaba is the only true value at yahoo and you take it out of the mix and what do they have . I would leadnow if with that exactly. I think it is fair to say you are right. Alibaba has been the driver of that stock train for the last couple of years. We continue to expect that to be the case. Also consider that they have a substantial stake in yahoo japan, which is a Market Leader as well. Last but not least, we think that people are assuming that yahoo in terms of the u. S. Business and International Reach are going to continue to decline. That might be the case. ToMarissa Mayers is able stabilize and improve metrics and operations, there is an opportunity. The company has a tremendous amount of allens sheet flexibility. There are a lot of options for yahoo at this point. Need to leave you there. Do you think Marissa Mayer has the ability to do that as a ceo . So far it is really too early to tell. A lot of people have been penalizing her because we have not seen the turn yet. She said from the get go that it will take years to turnaround yahoo we think within the next year or two we will know more about the progress they have made. Scott kessler, head of Equity Research at s p capital iq. The small selloff in tech. Three days worth almost good for 4 and the nasdaq. If you are ceo, you know things are not going well when you get skewered on saturday night live. That is just what happened to general motors. We will find what that means. Believers are gathering for a conference in new york. We will talk to one who invests in bitcoin startups. We are streaming on your smart phone, tablet, bloomberg. Com and on apple tv. Welcome back to market makers. No mercy for mary barra. Gm in theleaders put hot seat and so did the cast of saturday night live. The first rule of new gm is you never talk about old gm. Are you even familiar with the defective switch . Can you use it in a sentence . Are you attempting to roll away . I believe the floor is slanted. Are you attempting to roll away . Not a good thing when the crisis reaches punchlines that is. I want to bring in matt miller. In detroit we have jamie butters. I want to start with you. We are laughing about this year it it is serious. When saturday night live makes you their opening skit, that cannot be a good sunday morning. You are there. Hearingsthere for the and watch for two days. It was not amusing for mary barra. It was very difficult. It is a blue difficult for her. It was very amusing to see it replaced. She claimed to not know anything. Her i gmis itch of headquarters telling people to be quiet around her so that she does not accidentally absorb any knowledge. She went out of her way to know as little as possible. The great thing about satire is that it is basically true. How close did that come . Did not want to talk about anything related to the main problem at hand. She has had three months to figure it out. She said she found that in december. It is amazing that the head of manufacturing, engineering, product development, purchasing and supply does not know about this. Someone became ceo, told her about it. In the last threemonth she still has not figured out how we did not get to the top. It seemed a job that would take a matter of days. She does not want to hear anything else. Do we need to give her a break . She has no other option. I suspect the gm internal external counsel has her surrounded and said to put a muzzle on. She deferred repeatedly. It was, at times or painful at watching the hearings because people kept asking questions about things she probably does have a pretty good handle on but she does not want to get out ahead of the investigation. Not want to say it and itke this guy lied turns out Something Else happens. They want to spend their two month to really nail everything down. Not look really good sitting there in front of congress being asked questions and not answering them. Saturday night live would be on the thing she would not answer. That is what makes it funny. Shes not even know who her predecessor was in the skit. She did not even know who her predecessor was in the skit. They did a great job. They were very funny. What you think about the fact that she sent a statement out the day before saying she was going to be as transparent as possible and then she was not as all transparent. What is the point of practicing prefacing it s with transparency . She was being transparent that she was going to deferred to the belugas investigation and that she does not want to presuppose what the feinberg solution is going to the. Before the hearing she announced whosead hired feinberg specialty is making sure that people get paid and complicated situations. She did not want to commit to saying were going to pay people we do not legally have to. Shes waiting for the process. You can say shes not being transparent or is about what the process is. They have hired these guys, brought them in to do their things. When they do, they will proceed. We understand this. We follow this for a living. You and matt are very close to the situation. We know what mary barra said in the testimony. The rest of america is judging her leadership on the basis of a saturday night live skit. How much of a problem does that goes for gm . It is never great when youre out there. Stephanie said that in the opening. The four winds ceos of the detroit automakers went to see the bailout back in november of 2008. John stuart jumped in a little bit quicker than snl. They cannot resist the natural drama of having the worlds colliding, corporate world, gm ceo, coming to congress. There is a lot a good theater on both sides. It creates an image that people can hold onto. This is something we will clearly all keep watching. It but itghing about is not funny. 13 deaths have been linked to this. That is just what we know about so far. They are recalling 2. 6 million vehicles. People are still going to be driving them around until they get into the dealers. Is not even a safe situation going forward. Thank you matt miller and jamie butters joining us. Diving deepns are into digital. The technology they hope will help them reclaim the white house. Welcome back to market makers. The Republican Party was willing to admit they had major flaws in areas in the elections. The question was how they would try to fix it going or words. Went inside the gops retold data operation to take a look at their new and improved technology. It is the first in the series powerbrokers. The 2012 postelection headlines told the story about president obamas data teams victory. Officials and their donors wasted little time demanding the resources and talent to match tech savvy and avoid a repeat. Enter chuck. Is the team that they left. We have not only the people that work with our data, who aggregate it into the quality control, and we also have the scientists, the people building model off the data. He is overseeing a new model for Political Parties efforts to streamline the massive about of voter data. He is working with 70 million in a recruiting effort that has reached the top engineering schools in the country as well as facebook and linkedin. Were making the right investment to make sure they have the data they need, Predictive Analytics they need. A platform building designed to streamline the reams of voter information comin. He plans to utilize constantly evolving sets of apps. Meet the chief data officer. He point to republican david jolleys special election big tree as a positive direction. We are multiplying upon it. It served as a beta test for the rnc data platform. They have access to the Realtime Data collected or purchased from vendors including your home or car purchases. We can observe a lot of it passively. The rnc inc. They can match of the obama 2012 data Mining Systems and improve on them. How do you gauge numbers wise what you have done . To the question on the wall. Does this drive data and dollars . Is it helping us put them on a path to vote for candidates . Notepublicans are relieved to have to take obamas team had on this time around. No longer have the imperative of getting an incumbent president reelected sense ofa less urgency. We have a significant chance to win in 2014. Phil mattingly is here from d. C. What are democrats up to . When you talk to republicans and the folks over at the labs, if they think with president obama not at the top of the ticket this is where they are is a brain drain. It is basically cyclical. In 2004, republicans spearheaded public eating spearheaded this. They claim theyre getting all the obama for america information and they will use it for all their. A lot of skeptics. Why would there be skeptics . Why what an team obama want to successfully pass the ball . The rents is does the technology, is a dit dated . The technology is often made by the candidates. Candidate transfer that in whole and have the dnc use it for hill candidates . Phil mattingly, love the package. We have a lot more to cover. Coming up, private equity firms jacking up feed. Is monday here in new york city. I am Erik Schatzker. I am stephanie ruhle. Time to cover private equity. Private equity firms may be basing sanctions after the sec found a majority of them charge inflated fees and expenses. Cristina alesci has been following the story closely. Come as a surprise . If you look at how phenomenally they have done and how well they i know they have grown their business a lot. They have benefited from the financial crisis. There is a huge difference. Absolutely. I do not think this comes as a surprise to too many people in the business. There was and mandate to increase oversight and is very opaque area of finance. These contracts between theirors and the firm and Portfolio Companies are not really standard. Custom edge toa it. Because of that and the fact that investors were making so much money alongside the Steve Schwarzmans of the world, they fees andscrutinizing expenses. Now the dynamic has changed from the regulatory front because of this mandate to what your rule fees can be . If you look at the highyield market, you cannot make more than x. That is still the Market Making the decision. It is not an and forced to roll enforced rule. There are some industry standards. Exactly. Is are youoint disclosing to your investors exactly what you are targeting . That is where the sec does have authority to save i do not think so. We are in the second phase of this. Thepast two years have been get to know you phase. He have requested information to understand the business better. Now they are inside. Theyre in the weeds. They are trying to make heads or tails of this. They have found over 50 of the 400 firms they have analyzed were missed charging fees. They were either charging too much money, the investors too much money, were not disclosing it properly. This will become a take story at some point when one of the big firms get dragged into this. The firms obviously have a reputation and a standard. They will be more careful about doing these things. Once a big firm get dragged in, then you will see the headlines role. I know someone who can help us figure out what is right and you is wrong. He is cohead of the management group. As christina pointed out, it was inevitable that this would get a lot more scrutiny. Result, 50 of the firms not disclosing adequately to their limited art news, surprise you . It does not surprise me. The concept of disclosure are not the same. The sec looks for much more specific as closure. This is a clash of closures. We spoke earlier this morning. We spoke about the big firms getting dragged into this. You have your boots on the ground here. What do you think the potential is for this to be dried into an inquiry . It is hard to say what theyre going to do in terms of enforcement or action. This is across the board. Theyre looking at all kinds of companies. Tend to putompanies more dollars into compliance. Hard to knowis where the sec will come out in what they will find here it even if more dollars are coming decide the type of fees they are going to charge. What does the client have to do with this . Basu not decide themselves. The custom. Large institutions and what expenses get charged in which do not get charge. Institutional investors are taking a much closer look at that. Particularly with the bigger companies. Ofis it strictly a matter disclosure . I was under the impression that some people have problems with the kind of fees they are needing. It seems absurd, charging a per folio company for the pleasure of the acquisition. Easier time had an with it. Can you do this again . The two more conventional fees are the deal fees, charging a Portfolio Company for the pleasure of having been acquired by the private equity firms. Does this adequately explain it . Of what the sense sec has the biggest problem with . Have this with certain type of fees. Understand why Portfolio Companies are paying the fees. Here issdiction disclosure. It does not have jurisdiction to set fees. It does not have jurisdiction to save this kind is appropria