Why do i want to get to the news feed . Hours. A fun next two top is news stories from around the world. They will accept payment in bitcoins. Has 14 million survivors subscribers. Is this in response to at t buying its main rival . Lost . 17e fitch per share, less than analysts estimated. The decline in sales slowed. Shares of abercrombie are rising today. The countrys largest Warehouse Club reported profits of 3 . Amestore sales rose 6 it is a takeover battle for hillshire brands brands. Pilgrims pride has offered to billion. Hire for 5. 6 i want to bring in senior markets correspondent and sausage enthusiast julie hyman. Why does everybody care about hillshire . Hobbits. Ire, like they live in the shire. Shire . About a 50lking bid coming from tyson to compete with the 45 per share bid coming from the brazilian conglomerate. It is all about protein. It is also about breakfast. I thought it was interesting within the tyson release, saying tyson wants to capture opportunities in this attractive wherestgrowing market, tyson doesnt have a lot of exposure. Whether you are talking about taco bell and the waffle taco or tyson trying to capture the protein heavy breakfast, thats where it seems to be going. This is crazy. This was a 35 stocks 10 days ago. It is now trading above the offer price. I would assume the investors buying into hillshire assume that kbs jbs will come back with a higher offer. I have never eaten a jimmy dean sausage. But it is selling. I know that you love the state fair corndogs. I do love corndogs. I do love a good corndog. Ofthere have been a lot other businesses talked about besides tyson. Hormel was talked about. Wh, which is the new name of the Chinese Company that bought smith foods. There are other bidders that could be out there. Hillshire agreed to buy pinnacle foods, the maker of birdseye frozen vegetables, so that it wouldnt be acquired. Most of the shareholders who have been speaking out on this have said they dont want hillshire to buy pinnacle. That deal looks like it is doa at the moment. Wait for it. Are these bids getting beefed up or are they full of bologna . I love it seriously. You should be doing a routine in the borst belt. Thank you. I will see you in the catskills. Julie hyman with the latest on hillshire brands. She is here all week, try the veal. [laughter] shorta bull on tesla and just about everything else. He is most definitely a contrarian, an investor who has run three number one ranked mutual funds. He is the chief investment strategist at his own research firm. He is with us for the very first time. Such a treat. A pleasure to have you. Tell us why you have this contrarian view of the market. Stocks were up 30 last year. We seem to be hitting new records every day. Why this view . The market has been rallying for about five years. The s p is above its highs of 2000. The big caps are flat. Yesterdays at the same level as march 24, yesterdays c lose was at the same level as march 24, 2000. They estimated the typical stock may follow will gain 25 over the next three to five years. The last time they had this reading over 25 estimates was in january, 19 99, just before an 80 decline in the smallcap indices over six years. Point,raise a very good and that is the value of history. Is it your sense that most people who are investing today either worn around or arent paying attention to the kinds of things that happened in the past either werent around or arent paying attention to the kinds of things that happened in the past . The market moves based on what happened six months ago. Six months ago, you had the highest people leveraged people say the market is no longer high sentiment. The comment does not the markets dont have a long memory. What i track, unlike other analysts, is the markets memory. If i see an indicator that tells me something significant, maybe the market will react three months from now. I keep that in my database for three months. That seems to defy what most people would call the efficient market theory, that every piece of information is priced in immediately. Why is that the case . Many people would say the financial crisis taught us the efficient market theory is bunk anyway. In order for the markets to move, people must act. People dont act into instan taneously based on news. Even if they see fundamental changing in that stock, it takes time for them emotionally to change their mind and sell the stock. Decisions amongst people. Give us a prescription. Somebody is opening their portfolio tomorrow. What should they be doing . Very cautious be on the stock market and the bond market. Ift of us are assuming stocks are doing poorly, bonds will do well. Historically, that is what happens, but this time is different. The Federal Reserve has lost control of the Interest Rate market. Two tumbles and a jump. If the fed reduces Interest Rates twice, the market rallies. They reduced Interest Rates in august, 2007, and september, 2007. The market declined as of october, 2007. The problem with the bond market , the fed has lost control, in my opinion, but the market remembers there has been a downgrade of the u. S. Bonds. Whenever there is a downgrade of a bond, the yields of the bond should go up. They havent been going up. Once you see weakness in the stock market, people recognize weakness in the economy. We require a higher rate of interest. How is it possible that the fed and presumably other Central Banks as well have lost control of Interest Rates when the folks who make it their business to invest in bonds, like rick said it is almost impossible he happens to be doing well, by the way. It is so difficult to invest because the Central Banks have so much control the markets. Deflationaryajor force in the economy. Where would rates be without the feds . I believe it would be 0 . I dont think that is doing anything to the economy. Rates are based on longterm views of the economy. We are expecting the United States to be able to pay down their debt. As the perception changes, yields should rise. Why do you like tesla in here . We do market profiling, stock profiling. History een only a only a handful of great Growth Stocks in history. Kodak was one. Cisco was one. In 1990, cisco was trading at 11 times sales. In november of this year, tesla was trading at 11 times sales. Cisco, was trading at 1 billion market cap, and peaked nine years later at 26 times sales. Will not gomean it higher. Value investors will wait until they ought to wait 15 years and theyll miss the big runup. It is a great car. Running theenius company. The stock profile matches historys greatest Growth Stocks. I love it. He is awesome. I told you so. 90 short and makes a bold case for tesla. Great to have you. He is the chief investment strategist. Coming up, golf tries to rebuild the buzz. We have some of the sports most sports most powerful executives. Plus, a 15 per hour minimum wage . Seattle may make it happen today. You are watching Market Makers on bloomberg television. We are streaming on your tablet, laptop, amazon fire tv, apple tv. Welcome back to Market Makers. Woman golfers may be spending more time on the course next year. There is a new womens tournament beginning in 2015 with a 3. 5 million with grabs. Llinon up for 650,000 men dropped out. I want to bring in the commissioner. 650,000 guys dropping out of golf what gives . The best thing you said is we are bringing women into the game in a very significant way. Today we announced the dream team of womens golf. Awareness. Bout nbc is a tv partner. Millined almost 1. 5 from where million it was before. How much exposure do you have from womens golf . Think about the wnba. They are willing to take a loss to air their stuff. We think there is an audience and it is increasing. Nearly 100yearold organization, this is a major move for us in support of womens golf. We believe it is part of the critical future of the game. Womens pga championship will be a major golf championship. It will be a celebration of women on and off the course. Componentmoment is the leadership course. Who are the women taking of this game . It takes four to five hours and a ton of money. The game of golf is really changing. We are playing 6, 9 holes. You can post a usga handicap playing nine holes of golf. You are seeing more people come to the golf course and playing does not mean an entire round. On the lpga level, you are talking about the best in the world coming together and playing the game. More and more women are going to the golf course. Some of them playing six holes, nine holes, 18, 20 7 it doesnt matter. Enu are using losing more m than you are gaining women. That has to be a problem for the sport. I hardly play because of the Time Commitment required. We at the pga of america have a twopronged strategic approach to everything we do, to serve our 27,000 Members Around the country and to grow the game. We are dedicated to growing the game through traditional message methods, our get golf ready and pga junior programs, both of which have seen unprecedented growth in past two years, and also exploring nontraditional ways to grow the game. You dont have to play 18 holes. We have to give the golfing audience a 30 minute, 60 minute, 90 minute answer. What about a less expensive answer . It still cost you hundreds of thousands of dollars to be a true golfer and be a member of are really great club. The vast majority of golf rounds played in the United States are played on public golf courses. Even public off costs a heck of a lot more than buying a racket and going to my public tennis courts. But we feel that one of the mistakes in the industry is that golf is expensive. Granted, it can take time. It is a difficult sport. Professionals can help you get into the sport. In most instances, it is a very affordable activity. We need to do a better job as an industry in explaining that to our potential consumers. One of the things that might surprise you about the womens golf game, your expectation not to be think olympics. We have your expectation ought to be think olympics. There are 160 countries watching. In japan, the best female athlete in the world are playing on the lpga. In taiwan, china, korea, australia. Their best female athletes have gravitated to the lpga because they want to play against the best in the world and be the best in the world. When we have that event in 2015, it might feel like a local event , but the rest of the world will be paying attention because they are watching their heroes compete to be number one. What has changed in the womens game is it is no longer a tour that goes tour stop to stop. It is watched by millions of people around the world. Why cant we have more heroes whose names we know . Lets talk about mens golf, with the exception of tiger woods, arnold palmer, phil mickelson, it is hard for people to name golfers. You are playing into my hands. I have watched the last four or five years reporters ask american golfers how come american golfers arent doing better. There has been this incredible resurgence. Michelle wie, stacy lewis, paula creamer. The list of americans in the top 25 in the world, there are nine or 10 americans. That hasnt been the case for the last 10 or 15 years. There is a huge resurgence. They are creating heroes in the womens game. Women are watching and following the game. It is an exciting time for womens golf, especially as it relates to being an american golfer. Weve never had more strengths than weve had now. If you see the Corporate Support of this game, companies willing to make a sizable investment over a series of years in a broadcast partner like nbc is willing to step up to the plate and show the womens pga championship we see the potential, there is no question. But does golf need a kobe bryant or a lebron james, the role of tiger woods used to fill . Absolutely. International heroes are good for golf. You mentioned jack nicholas, arnold palmer, tiger woods, annika sorenstam. Great names. There are people who are emerging, people like jordan spieth, rory mcilroy. Rory is not sticking like tiger does. We had tiger since 1997 when he burst onto the spotlight. Rory mcilroy is 25. He is just Getting Started in golf. There is one last question we need to take a before we go. Are you really going to make the hole bigger . Part of our belief is we need to get as many people in golf as possible. If we need to try different formats to make the game more welcoming and more accessible to different people, we are going to try it. Are not trying to place replace what makes golf special, the rules and tradition of the game. Is in the game already different enough from what it used to be . Game already different enough from what it used to be . It is already a lot easier to play than it was 10 years ago. Every sport changes and develops. You could go to basketball, football, baseball, and look at how those games have developed. Golf should mean no different should be no different. Thank you both. We love having you on. Pete bevacqua. Up, workers around the country have demanded a 15 minimum wage, and they may be getting it in seattle. Born. Ing up, a star is the new formula, build a following on youtube, then signing a book contract . Plus, you can will talkme back, we about the city looking to raise the minimum wage to 15 per hour. It might actually happen today. This is Market Makers on bloomberg television. You are watching Market Makers. I am Erik Schatzker. Otherwise known as cranky carl. And i am stephanie ruhle. Can you believe i just said that . We are talking about the bond market rally that nobody predicted. Some of you predicted it. Can Central Banks keep stimulating Growth Without inflation . We have been following the trend in the sovereign market and in other bond markets. What explains this incredible rally . Everyone is looking for that one there is really no one explanation. There is a whole host of reasons that one explanation. There is really no won ask no one explanation. There is a whole host of reasons. In the u. S. , the economy shrank for the First Time Since 2011. Evidence the economy is accelerating like people thought it would. There is not the catalyst for rates to rise. 40 ons that justify 2. The 10year treasury . Lets put up a table that illustrates how big the move has been globally. Onjanuary, we were at 3 the treasury, 4 plus on everybody thought that yields would rise, wall street analysts pretty much universally thought that yields would rise substantially this year. They havent. They have all been wrong. People came in this year completely bearish. This is ever dense is evidence of a short squeeze. It is causing yields to go farther down. You have Central Banks holding a lot of treasuries. There isnt that much in circulation. Who is the seller . There are more buyers than there are sellers. You have the population getting older, people circulating into less risky assets. They want security. You have a lot of pressures. Can they stay this low for a long period of time . Can they go lower . Or are people going to get blown out by the end of the year . To me it is making me so upset i got sick. That is the main question for a lot of people. Is it potentially risky wager or is it betting on a new normal . Great to see you. It is a done deal. Apple has officially agreed to buy beats, the headphone and streaming company, for 3 billion. Business, ceoa tim cook is getting two of the music industrys top taste makers on staff. Lets bring in our senior west coast correspondent, jon erlichman. He is in l. A. With that story. To dr. Dre and jimmie going have apple id cards and swipe in at 8 30 . Maybe not 8 30, but they will have the id cards, for sure. There are two important parts of the story. He cultural fit if you think about why they started beats. Sound got the worst grade. Interpreted,ately when dr. Dre would talk about his kids listening through earbuds and not getting the experience that he would spend working on in the studio that that was a shot at apple. If you look at the comments they were making a few years back, they were saying apple was a company that was just as interested in sound because of their dominance with itunes. Jimmy i have been jimmy io vine was asked if he was moving to cupertino. He said, ive been going there 10 times the last 10 years. There are already strong ties between these companies. How might jimmy iovinea nd jimmy iovine and dr. Dre change things at apple . Ofl they have the same kind influence on apple that tim cook had for Different Reasons . I think the story that we watch from this point on is going to be the really interesting one. These are two people who, long ago, said people do not want to pay for music anymore. It is clear they would rather rip it off the internet. Even before they launched this is production the subscription program, they said that is where we are likely to be. You can market big names with less money. You start to think about how some of the ways apple is going to be marketing music through the different streaming options they have going forward. And then the unknown. They were thinking about the listening experience in your living room. We spoke to an apple executive who thinks there is something alreadyh are working on that we dont know about, which maybe will give us an aha in a few months. It is hard to say. Apple has so much cash, this is a bet they can afford to make. Im sure dr. Dre and jimmy will be throwing a fantastic celebratory party. You need to get yourself invited to it. Isntis a safe assumption, it . That they will be throwing a big bash . I think it is a safe it shou ld be a safe bet that he gets a ticket to it. I dont think there will be tickets. There will be a vip list. Jon, get on it. Seattle is making a bid to increase its minimum wage to 15. She is here with us and has the story. Hi, hi, erik. Seattle and a big day for the fast food worker strike. Seattle has a vote planned. They are considering a plan that would raise the sediment the city minimum wage up to 15 per hour to be phased in over seven years, at which point the wage would be inflation adjusted. The proposal is expected to pass almost unanimously. There isnt much mystery. In seattle, 102,000 workers, about 1 3 of the working population, makes 15 peor less. Proponents of the increase say that the increase would put about half 1 billion extra