Youre watching Market Makers. Its a wednesday in new york city. Wednesday around the world, too. Market maker im wearing pan. This is a much bigger deal than you might think. I could not find a skirt that fits. That is clearly the top story in business and finance. Here are a few others. Shares of target are rising this morning. Posting thirdquarter earnings that beat estimates. U. S. Sales better than the company itself expected. Expansion into canada is showing signs of improvement. The u. S. Is demanding that Chicago Corporation and sutomakers recall all car with these airbags. So far, only cars in states with high humidity have been recalled. Who needs taylor swift anyway . Spotify is expanding and will boost its workforce by one third. They will hire 500 more people while improving software. Artists such as taylor swift have criticized spotify for not paying them enough. Supporters of the Keystone Pipeline said the controversial project is down, but not out. The keystone came up one vote short in the senate last night. Advance. 60 votes to Mitch Mcconnell says the keystone supporters will win next time. This will be an early item on the agenda in the next congress. Im confident that senator hogans bill will succeed. All 45 republicans voted for the bill. Only 14 Senate Democrats did. The new Congress Comes in, maybe 50 republican senators. Vladimir putin has done something to shock his advisers. Hes planning to come out against corruption. , he will call for a crackdown on inspections and other his advisers have been urging such action for years. I will have to bite my tongue. That imit clear biting my tongue that putin is cracking down on corruption . There are various kinds of corruption. That is one kind of corruption. There are other kinds that might be ok. Lets move on to a place where we never see any. Washington, where president obama is set to announce a new plan tomorrow that would shield 5 Million Immigrants from deportation. It is sure to set up a major fight in d. C. That could end in another government shutdown. Lets bring in phil mattingly. Give us the details. What we know right now, as soon as tomorrow, the president is going to lay out his executive order, his unilateral action to try to shield 5 million undocumented immigrants in this country from deportation. Parents of u. S. Citizens, people on work permits, another interesting aspect, the Tech Community is going to get a win out of this. They will expand a Work Permit Program that is currently in place right now to apply to foreign graduates of u. S. Schools in those stem subjects. Tech, which has been fighting so hard for this. They will get a win out of this. Are they definitely going to get a win out of this . The president is winky face some pushback. Is going to face some pushback. Will he ram it through no matter what . He can. They have given republicans plenty of time to work through legislation on the hill. They dont have any faith that the house is going to move forward on that senate bill. They believe they can actually do this on their own. There is going to be massive pushback from the republican party. They do not need their approval and they will go ahead and move over with it. Forcet is the driving that is pushing the administration to want to push through tech visas . They are very close to silicon valley. The president has raised a ton of money from silicon valley. They have always tried to be with the Tech Industry and what they do. Has beencommunity push behindr of the immigration on capitol hill. Possibly theyre cognizant of the fact that these are people who try to help the m throughout this process. How many people are going to be effect by the expansion of visas . Its an interesting question. This is not the h1b visa program that is longerterm. Point, it impacts 100,000200,000 people. Theyre going to try to expand the program. The total size is up in the air. They want to go as big as they can on this program, as long as its within the law. Thank you so much for giving us the latest. Lets focus on the parts of this order that are of interest to the highTech Community. A serial entrepreneur of silicon ofley and the proponent diversity and shaking things up out in the valley. He joins us now on skype. What do you make of all this . I dont like it. Of studentsa number to stay wont solve the problem. There will be such an uproar, so much outrage about it. It will be the next obamacare. You will have have to country trying to kill something they dont understand. Valleyl problem silicon faces is the number of green cards. The problem is the number of the people stuck in limbo for decades. They need to become americans and so they can buy houses and. Articipate in the economy not fixing the problem. Why do you liken it to obamacare . Because its going to get everybody against it. You hear these emotional slogans about how the president is providing amnesty and all of these other things. It will be exaggerated. Remember the death camps these republicans talk about . Itwill be soundbites will damage the cause of immigration for a long time to come. Instead of demanding comprehensive, just break it into small pieces. Undocumented, providing them with temporary if you clean up we1b visa so what could have done everything we wanted if the democrats had not resisted had not insisted on all or nothing. Now they are poisoning the water with his executive order. What is the alternative . The democrats pushed for all or nothing and the president feels he is moving forward with his own plan in the absence of action from anybody else. Its not a plan, its a bandaid. What happens to the longterm problem . We are not getting more h1b visas were more green cards. This is a bandaid. It will not fix the problem. It is better than the nothing, but the president could have done this for years ago. This is something he should have done coming into office and then negotiate something more sensible. Why dont these hightech companies have the talent pool here in the United States . All the bright people we can get for innovation. Tech is booming right now. We are developing technology that can solve the worlds biggest problems. We need every smart person we can get. Bringing in more skilled immigrants is a good thing. We also need more manual labor. There arent americans we can educate to fill these positions . Im sure there are plenty in need of work. There are unemployed americans. Whenever we talk about immigration, we get flooded with messages that say employ us first. Most often, those skills are out of date. They happen to be in kentucky or idaho or some well somewhere where there are not tech companies. Here, there is a dire shortage of labor. Its a regional thing and a skill gap. Withannot take any person some computer training and say you can network for facebook. Its like thing anyone can be a broadcaster. Its not that simple. You have to have specific skills. Ts where this debate thank you for giving us your perspective. , tell the come back truth. How often do you use a low your own house zillow your own house . Amway ramps up manufacturing in this country. Whats behind its made in the usa plan. Welcome back to Market Makers. Top european investors are in london today. Fund managers are talking about some of their top picks and big bucks andin the funding goes to fighting pediatric cancer. Caledonia has more than 2 billion under management. He joins us from london to talk about his big idea, zillow. Why zillow . Thank you for having me. We have been the loudest investor in property pools like zillow globally for the last 10 years. Its a dominant market leader. You see a real network affected continuing to reinforce the market leaders. That is what we are seeing in the u. S. With zillow. Lots of people love zillow. It makes sense. What is so special . There are not too many against it. Its just a giant market we are talking about. U. S. Housing is 1. 3 trillion each year in transaction value. 73 billion in agent commissions. 10 billion of asian advertising. The company with 73 of the audience on mobile. The share of ad dollars to match up with the share of audience. 10 billion of agent advertising. Isnt zillow fully valued . They are investing away had the curve way had the curve. Way ahead of the curve. Most of the company globally went through a phase like this. Once the cost basis settle down, you see him committal margins. You normally seasick present normally. You see incremental margins. You normally see 60 normally. We see that coming through attracting and mentally. We think they will catch up with their audience share. Of iton in terms does not end at agents. Andes mortgage advertising 11. 3 billion. Rental properties and 2. 5 billion. New home builders. The list goes on and on. Is there an opportunity here for a pair trade . Long zillow and short Something Else that will be eaten by zillow . Not really. Currentlydvertising by agents. The thing that has changed in the u. S. Is mobile. It has been the complete game changer. People are flocking to zillow and we think the ads will follow. Whole category online how sensitive is zillow to real estate prices . What if the bottom falls out . Its a second derivative. You have agents advertising and agency commissions to advertise. The experience we have had in other countries is the structural growth is so substantial that it can really overwhelm any kind of moves you see in the market. Similar in will be the u. S. What is the biggest risk to your thesis . If thebiggest risk is audience moves. That is something we have studied in depth in most of the g20 countries. , thethe audience moves market leaders get stronger and stronger. In. Productivity loop kicks the 20 examples we have data for show the market getting stronger and stronger. There is no precedent for. Think you so much for joining us this morning and raising money for pediatric research. Thank you so much. The hottest new cars and the wheels of the future. They are all at the l. A. Auto show and you will hear from the ceo of volvo. Welcome back to Market Makers. Earlier today, we read you the top story. My pants. Now, we have to move on to something more important. Jerry seinfeld said at last week. He weighed in on a very specific piece of fashion. Men who wearink interesting socks are not working hard enough. Them. Tner wears these are the least interesting socks. What do you think about him saying work harder . Im not sure what he is implying. What does it say about men who wear uninteresting socks . It takes too much time. Dont think jerry works that hard . Thats not a joke. Its not funny. Dogging on erics fashion. Your joke was not funny to eric. I dont mind it. She teases me all the time and i enjoy. Are you saying my jokes are funnier than Jerry Seinfeld . There approaching 26 past hour. Time for bloomberg to take you on the markets. Paramount group started trading today after the biggest shares up 4. 25 . It has the stakes in some 12 office buildings. Getting a little upside. There you go. In the green. When we come back, amway getting back to its roots. The direct sales giant is in the midst of a huge expansion in the u. S. We will be speaking with their chairman. A new way to help homeowners underwater . Eminent domain . Really . Live from bloomberg headquarters in new york. Withs Market MakersErik Schatzker and Stephanie Ruhle. Welcome back. Amway has seems sales time to record highs. They are in the middle of a major manufacturing and r d expansion and most of that expansion is right here in the United States. We have with us the chairman of amway. Why are you asked handing in the United States when the majority of your sales are over these . The great thing is we have a Manufacturing Base here. We export all around the world. We continue to do that. Ok, but why does it not make sense to manufacture only locally, manufacturer american to meet american demand. You do not have to pay much in the way of shipping costs. You do incur significant shipping cost if you are selling to china, india, for example . We manufacture right here in the United States for United States. But our expansion is in five different places around the world. We have 10, 15 different manufacturing sites. 10 of those are in the United States. As you are going through this major overhaul, do you think you need to change the name or the brand of amway . Because it does not have the best reputation. Going for 50been years. When i was in the direct selling industry, i think the direct selling industry as a whole is agood position area good position. People are looking for more certainty in their life and i think the direct cell industry, including amway, can give them that certainty. Ftcow much does the investigation into herbalife hurts . Every industry has its critics. The critics are looking at the stock price rather than the business. Has 21,000usiness employees. Thousands more come in every year. Though atible the very least it is possible, is it probable that regulators will respond to criticisms that people have raised about herbalife and other direct telling models will put constraints on your business and make it harder to operate in this country . We go around the world and look for direct selling legislation around the world. I think the u. S. Has rate direct selling legislation. They have for a long time. The great thing about the Business Today is the opportunity i was just talking about. We have been releasing our amway global entrepreneurial reports in that looks at how people look at our industry around the world. It looks at how people look at Business Owners around the world and what is it like to be an on your an entrepreneur. I think it shows that people are very interested. How has this herbalife saga affected you . Are looking at stock price. That is different than looking at the business. But for you, all of these herbalife headlines have to have affected you . Recruiting, for example. Is it harder to recruit people because there is a stigma attached to direct selling or what someone call multilevel marketing . I look at the distributors we have. For the amway business, people are looking for more certainty in their life and the amway business gives them that certainty. They are able to take that business, set their own goals. They have the independence they are looking for. I think that really gives them what they are looking for in the future. Have you picked up distributors who were ,nthusiasts for direct selling who left because of herbalife, but believe in the model . Alle pick up people for kinds of reasons, but the real reason is they are looking at doing something for themselves. The report i was talking about, there are two. Reasons people go into business for themselves. Primarily it is because of independence. The ability to set their own goals and do their own thing. Those are the two primary reasons we see people come into the amway Business Today and i think those are the primary reasons why people all around the world are going into the direct selling business. Direct selling is a high hedge business. Does that make technology your friend or your foe . Think about it. Our business has been a social network for 50 years or it when you think of social networks, you think of it in the context of technology, but really the social network is connection people have with each other. What technology does, it really enables that communication are many able. We see technology as an enhanced rent an enhancement to our business. It helps that social network communicate. We are looking at ways to bring the amway business online, to make it mobile. How you bring it on line and still maintain the connection to the salesperson . The way amazon does it, i go to amazon and buy what i want. It seems that they usually lose money on that deal rid seems thats, it they usually lose money on that deal. Nevertheless, it is cheap for me. Product, yous should go try it. That touch, that connection is what makes a difference in our business as well. Those personal connections are the ones that really enhance really do the buying process and our business and the technology really helps that along. You mentioned earlier, you look at legislation that is direct selling friendly around the world rid what is growing a business in china like . Is a greatit business. It is unique. When you go into china, we spell chinese amway with two characters. When prospectors or customers look at our business, they think of it not necessarily as an amway business but as a chinese business. I think that has helped us as we have developed along the way. Regulatory standpoint, what jurisdiction around the world is most friendly to direct selling . Every country that has direct selling legislation they cant all be good. They are all different. I do not know if they are necessarily good or bad. If they understand the industry and set the industry out from some of those from some industries that claim to be arent, thatg, but is a great way to operate, to have a platform you anothert it to way. Where are you most eager to expand . When we look at the amway business, it is available to 70 of the world will population. We are everywhere except the mideast and north africa. I think eventually we will look at that. Sell the most off . Everyone knows the brand, what amway does. What are you most successful at selling . We are truly a Global Health and beauty company. We also have a water filter system. Those are the ones we really focus on and they do very well with us. If you think about the nutrition business, if you have someone to talk to about nutrition, you can say, here are the kinds of things that might work for you that are a great addition. Quick question. You are the chairman of the executive committee of the u. S. Chamber of commerce. There is a shift of power coming in congress. What do you want the republicans to make their legislative priority . What people around the country are looking for is certainty in the more certainty washington can create for them for their future, i think it is great. I am always looking at the future optimistically and i would look at the same thing there. Thank you so much for joining us. Great having you. We come b