He cannot get enough. The jabbing, the poking. We are going to take you to scarlet fu. She is in the newsroom. The index is out. She is in the newsroom with the head lines. Scarlet an unexpected increase in the nonmanufacturing part of the industry. 57. 8, it tops all the estimates in the survey. The consensus was for an increase of 56. 2 or i should say, a drop to 56. 2. It is an indication of the weakness of manufacturing. Economists had expected this part of the economy would outperforM Manufacturing in a strong dollar environment. You can see the divergence between the ice on nonmanufacturing in orange is M Manufacturing in orange. It is mired a little bit in moderation, as opposed to the isam nonmanufacturing. Im going to pull up how stocks are doing right now. They were lower. They are continuing to extend their declines. They are not large declines by any stretch of the imagination. Cory thank you. Good stuff. Disney at it again. It posted quarterly profits that were 10 better than a year ago. Results improved at theme parks and merchandising. Frozen is still a big moneymaker. How much did you buy . Stephanie none. You think my sons like frozen . Cory higher production costs at espn heard that division. Firstquarter profit almost doubled switzerland almost doubled at switzerlands largest bank. There are talks of the Justice Department about settling an investigation. Ubs could pay up to 1 billion in fines. The European Commission has raised its growth forecast for the eurozone. 1. 5 this year 1. 3 percent in february. A weaker euro helped exports. The organization slashded its growth estimate for greece. Zoetis he wants them to cut costs. They are going to cut down or sell. Ackman took a 10 hes on opportunity and took it. Rhetoric and debt threw two reagan puerto rican bonds have caused problems. Islamic state claimed is once ability for a shooting in texas. The official Radio Station threatened more attacks. Two gunmen opened fire outside of a competition cartoon competition featuring the prophet mohammed. Stephanie ciscos John Chambers is going away. What not to far. He is stepping down as ceo after 20 years, but he is moving to the chairmans suite. His placement, chuck robbins. John, i hope this means that you are going to guest anchor with me. John chambers thats the be fun to do and you always want to have a backup occupation. I will be busy as executive chairman. Stephanie what is your new role going to be . What is it going to be like day today. Day . John chambers in areas where the next ceo once me to focus on. Watching him grow to be a great ceo, which i think he will be. I will be his wing man in many areas. Focusing a lot on key strategic partnerships, key customer relationships. Chuck will be the ceo and i will become his wing man. It will be fun. Im excited and i had my best nights sleep in 20 years last night. Cory i can only imagine. There were a couple of people in the running for this job. What was it about chuck . Was it his sales expertise . Cisco has gone through changes. John chambers it is really exciting. The board picked chuck. My job was to get several candidates ready. Their job was to pick the person they wanted to run over the next decade and for me to be his advisor as we do that. What was so unique about chuck, lets look at the results over the last 20 years. We have our stock in terms of total shareholder returns over 1600 . You have earningspershare up 3300 . You look at what we have been able to accomplish in terms of our business momentum, it is because we have market transitions right. Chuck is worldclass in vision and strategy and executing it. He has done that in enterprise and channels. He is also really good about aligning resources in the collaborative style that allows them to move quickly. He builds great teams. He is a perfect cultural match and he is very technical, a math major by background. Stephanie what does he need to do to really help ciscos longterm growth. . You have been in the seat for 20 years. John chambers we are very pleased with our longterm growth. He is comfortable with the vision and strategy. We are winning in the market and our customers get that. Both chuck and i were there last week. He would say that he would make tweaks. I agree with him. He is an execution machine, getting these pieces to work better together, real lining sources for opportunities. Stephanie what is the biggest piece of Unfinished Business you are handing off to him that he will attack and execute from the getgo . John chambers what is going to be exciting is, we have a chance to replay the Information Age where ciscos leadership in the 1990s powered our growth and changed our country and every business. Youre going to see an instant replay. You either change, disrupt, or die. You get left behind. Chuck will do a great job on it. Cory i have watched you skillfully negotiate between republicans and democrats. I wonder, when you look at your feature, so many people in Silicon Valley look at the world of politics as an opportunity where they want to have an impact. Is that something that interests you . John chambers it does interest me, but you have a problem. Im a moderate republican who likes democrats. I like to work with both sides. Technology needs to be agnostic. What interests me and government is for our country to become a digital country. We are behind. It will power the next generation of job creation and economic wellbeing. I also like to teach and youll see me probably teach in a number of areas. And probably work with young companies, startups, etc. , helping them go public. That and tremendous attention to my family, well deserved after doing this for 20 years, is what is in my future. Stephanie carly if she were to be elected, would you consider her a Silicon Valley insider in washington . John chambers if we do our job right, we make each candidate technology savvy. Silicon valley has to be neutral in terms of one candidate or another. I think it is important for both republicans and democrats to focus on job creation and getting our nation on track. Whether a republican president or democrat president i think you will see them online with technology, much like president clinton did in the 1990s. Jobs created, gdp and Economic Growth over 50 , that was powered in part by the internet age. The digital age has the same opportunity. Our job is to make sure each of the government stephanie you seem to know a lot of answers that may be a political official would know . Cory there is a senate seat in california that might be open for he soon, right . Are you interested . John chambers candidly no. I like getting things done. I would be honored to be an advisor to whichever president wins. I enjoy very much interfacing with cats and republicans. Democrats and republicans. Stephanie im afraid if you like getting things done, a future in politics is not for you. Cory can we just say what a great job you have done getting things done the last 20 years . What a terrific job. Congratulations. Stephanie congratulations. Cisco is lucky to have you. John chambers, chairman of cisco. Cory investors are going to blame central banks. Stephanie we have David Einhorn. He does not just dislike frackers. He was calling them motherfr ackers. Stephanie welcome back. Im Stephanie Ruhle with my special partner cory johnson. It is time to bring you uptodate on the top stories. Firstquarter profits rose at europes top bank. Securities unit increased and its divisions for bad loans fell. It has been cutting costs to boost earnings. It may still move its headquarters overseas. British politicians have been pledging to raise taxes after thursdays elections. Amazon prime customers will be able to access movies, tv shows and music on jetblue planes. It gives amazon access to a captive audience of potential customers. Passengers who are not amazon prime customers can sign up on board for a free 30 day trial. And the highestpaid female executive in the United States is apples retail chief angela aaron. Bloomberg figured out that she has made a most 83 83 million almost 83 million including a sign on bonus. Cory there has been a lot of taxes. Bill grossman says the super cycle is at an end. Lets look at that with bonnie. Were also joined by lisa. Bonnie, what do you make of the end of the super cycle . Bonnie that is a tricky word in a distorted bond market. I think it is getting long in the tooth. However a lot of people have lost money banking on the end of the bull market. That being said, going out with a whimper is a very real possibility. The bow market was above 2 today. Fundamentally, there is no reason for that to be. There is no inflation. There are a lot of technical factors impacting the market and creating volatility. Stephanie i had a chance to ask the lachman what he thought. Bill ackman what he thought. Bill ackman the credit markets are pretty tight. The absolute yields you can earn, very low. It is hard to make a lot of money buying a bond with a 4. 5 coupon unless the credit improves. That is still a tough bet. I dont like fixed income as a category. Stephanie bill does not like fixed income and crawled does not like fixed income carl does not like fixed income. They have been wrong. It is a bond pickers market. You do not want to go wholesale. As jeffrey has pointed out stephanie i have never heard of him. He pointed out, rightly so, we have pushed out the maturity wall. It would normally occur about now. There is a little bit of time and there are still Good Companies in high bond land. The place that we are fearful of our Investment Grade corporatees are investmentgrade corporates. Stephanie were you crunching the numbers at the met . Lisa in the past two weeks, it lost 200 billion of market value. Why . Nothing happened. You have to wonder, is it going to keep going . Does it mean that retirees and everyone that has been piling and this year is going to get sunk . Bonnie i certainly would have to think that Global Deflation is going to put some sort of a level on that. In a low gdp growth environment it is hard to see the 10 year skyrocketing. Lisa you think that we are red risk for deflation we are at risk for deflation . People are saying that we are really going to see inflation. Bonnie i dont buy that one bit. One robin does not make it spring. They have good news in europe. It does not mean theyre going to scrap the program that they waited way too long to implement. Japan has been at it for even longer. Who is not to say that the course of your code europe could look like japan . Stephanie all right. Get green. What do you like . Bonnie if you are a u. S. Dollarbased investor, stay away from the euro, even though the dollar has taken some lumps. Longerterm, we see a strengthening dollar in the future. Lisa emerging markets, isnt that toxic when the u. S. Raises rates . Bonnie the last time, what got slammed was emerging markets denominated in local currencies. Stephanie we saw Jeff Gundlach speak yesterday. He seemed to like puerto rico. What do you think . Bonnie i like the accent. If youre looking for yield, try to look for yield in places that have relative value you can understand. The parallel is, if you want yields, thoughgo buy greece. It has gotten so emotionally charged. Pick the credits. We like the new government, we like the bonds but at least you can have a thesis. Cory interesting stuff. Lots of opportunity. Stephanie thank you so much for joining us. Always a treat. Lisa, i appreciate you crunching those numbers last night. Cory we have shake shack here. We dont have that in california. Stephanie you have innout cory stay with us. Stephanie it is a special day. We let corey in the building. Stephanie you are totally going to want to come back after the break. David einhorn slammed the shale industry and the market is responding. Plus, we talk me funds, where Digital Media competes for the ad dollars that used to belong to mainstream networks and cable channels. Sorry, longtime sitcom. That youtube stuff is really funny. Really funny. Funny or die, i like that. More than traditional stuff. Stay with us. Live from bloomberg headquarters in new york. This is Market Makers with Erik Schatzker and Stephanie Ruhle. Stephanie it is Tuesday Morning and we are in new york city and youre watching moneymakers. Im Stephanie Ruhle. These are the top business stories of the morning. Surprise and Service Industry a surprise in Service Industry. The sector unexpectedly grew at a faster pace last month. The isn nonmanufacturing index rose to its highest level since november. It is a sign that the u. S. Navy able to overcome the slowdown in manufacturing called caused by the dollar and slumping oil prices. Disney reported Quarterly Earnings that beat estimates. Bob iger can do no wrong. Give the credit to theme parks and merchandising. It helps offset disney sold nearly 1 billion worth of frozen merchandise. They are up again. A big surprise over at sprint. The wireless carrier posted earnings that beat estimates. It also gained subscribers for the Second Quarter in a row. It will hold on to its ranking as the Third LargestWireless Company, ahead of tmobile. The Justice Department is joining the investigation into a leak of information from the fed in 2012. The fed agreed to turn over the names of officials who met with Medley Global Advisors at year. Janet yellen says that she was one of them, but that the meeting happened months before the leak. Medley got access to details to a report before it was released. And a meeting between two lame ducks. President obama made his final appearance on the night with david federman. Letterman. The president told him that he knew that he was not the first choice when it comes to getting guest from the white house. President obama i know you like michelle a little bit more than me. She was here last week. President obama i know. I assure you, you are not alone. But i am not going to let her have all the fun. And mainly i came by to say goodbye to this and paul. Stephanie the president also told Esther Letterman when they leave their jobs, they can go to a local starbucks and swap stories. Who has Better Stories . Dave has more. President obama was a Community Leader not that many years ago. Dave has been in that seat way longer. Cory different kind of leader. Stephanie lets talk about David Einhorn. Cory flip talking about lets talk about fracking. Stephanie what the frack. Cory David Einhorn took a big swing. His biggest target, pioneer natural resources. Valdis dombrovskisDavid Einhorn pioneer has dramatically is dramatically overvalued. The problem is, oil fracking is high cost. Cory oil expert, alex. Alex i did not call myself an expert. Stephanie when David Einhorn is on the stage conducting his frack attack, were you having a, no you didnt . Alex does he have a leg to stand on in the Oil Community . Take a look at the stock reaction. Off the bat, all the stock continental, pioneer, they all fell. Stephanie that could also be daytraders. Alex take a look at the stock today. Some are up and some are down. However, the big issue in the community is, have the oil stocks ran too far run too far . Barclays is saying they are producing 95 oil in the curve. It would have to rerate by 50 if oil prices do not catch up to that number. That is significant and part of the issue. The other part is, why do you own the stocks . Cory you should own oil and gas stock. Out if you have to find it to do it, shale is capital induces. Cive. Do you own them for their future monetization . Stephanie what do you think of the argument David Einhorn made that wall street conducted their business, they were the ones who raised tons of money for these frackers. Their analysts should be looking and saying theyre not making. They were just paying attention when they are raising fees. Cory it is a very different world with todays current oil prices. It is a very different world in production. I think the amazement when the first horizontal drilling turned up oil, the saudi arabia of u. S. Oil. But the lifting costs were so high. Alex there are distinctions in the shale producer world that make them better than a few years ago. They are getting a 30 cost production. Stephanie better than what . Alex in terms of stock, i am not going to make that call. What are they making more for their money . Yes they are. Their productivity is going up. 26 up, year on year. They are making more and paying less to do that, which means eventually they can have more production for less the cash. That is something relatively unique to shale producers. In these high producers well hi you can hedge. That is something more quickly valuable than it would have been. Cory depreciation rates depletion rates will change when the rates rise. Stephanie you have a new haircut and got to talk about oil. I got to decide discuss Hedge Fund Managers. Cory coming up, the next big hit on tv may not be on your big tv. New media, the new front. And other places where people are consuming media. Stephanie stay with us. We have so much more to continue. Stephanie welcome back to Market Makers. I am Stephanie Ruhle. It seems like everybody is getting into the content game. There have been dozens of shows announced, not from nbc or fox but from yahoo . Just another sign that we are watching television in a different, different way. Jus