All that and more. Heading out to julie hyman. News that just came out in the last hour affecting the stock. That is a settlement over a cleanup related to companies in a choir. It is a 5. 2 billion dollars settlement. Looks like the stock is rising. The discount brokers today. E trade, ameritrade, Charles Schwab. Seems like they have been caught up and concerned rum highfrequency trading in the. Ake of the book Charles Schwab has called it a growing cancer. We are seeing those stocks pull back today. Finally, seaworld, which has though been troubled shares pulling back my nearly two percent. Thank you. The u. S. Chamber foundation is hosting its 13th annual aviation summit today in washington. The event is called navigating the true cost of client. David barger, taking part in todays summit. Great to have you here. The event really takes a look at the Critical Issues facing your industry. What was umber one on the list . One . Mber always great to be on. Thank you for having me. The true cost of flying. The number one issue was really about First Quarter weather. If i can sum it up, number one issue here today. Have you been able to update figures for the full impact of the Winter Weather we have had . We have not as of yet because the First Quarter of the books being closed. Mother nature was really tough on airlines, all of us in the United States the past year but certainly in the northeast. Was a 30we had million pretax impact. Then there was storm after storm after storm. For us, our airline headquartered in new york to train washington and boston, congested air case. The number in the First Quarter. Numbers. Eport we will report numbers. Start to take a look at easter and passover track it traffic. Snowbird still continuing to travel as well. Taking a look at the broader airline industry. In 2000 13 airlines took been almost 24 billion dollars in fees. That is double Airline Profit forecast. Just seems like that is the way you have to make money. What kind of fees is jet blue considering in the future . Because interesting here are the numbers. People get caught up in the numbers. You guys are so good at crunching numbers. 2013 tom a we also know in the bottomstates airlines, line is they profit for appointment of 2013. You look at the all a part fees and all in pricing and we are not about nickel and dime in but a Value Proposition. We will not charge you for the in seat assignment. We do not overbook. The predictability, transparency that is what is right for us. The loyalty has been about creating a better Value Proposition at a fair fare. I have you on record, saying you will not charge me for the live tv that you have. Where are you with that idea gekko on the record with the tv, we have not been charging customers for the tv. That is embedded in the satellite radar. What were looking at with the wifi product, true Broadband Internet into the aircraft, we will see what that looks like because we are pleased with how that rolled out across the fleet. Speaking of the premium experience, june 15 we started again. At the end of the day when we talk about pricing come i will not go too far except to say we will continue to be disruptive. And we look at what cost to fly across the country at a premium experience, you could be looking at 3000 oneway. We will be disruptive, and that is our plan. Using miles is pretty hard, too. Talk to me about the consolidation we are seeing in the industry. Compete onder to fares . Just flew in the entire industry. Jetblue and the entire industry. We like organic growth. The right partnerships. At the end of the day when you end up with bankruptcies and then mergers and acquisitions, rightsizing the capacity, we all benefit. That is difficult for those types of cities. Those are real tough situations. I like to do it without gouging the public. That is what we will continue to do. Went to ask you about the missing malaysia and jet. What has that done to make you rethink your safety operation . First of all, from a headline perspective, it is unacceptable in todays day and age to not know where an aircraft is. There is Technology Available today to know where airplanes are as they traverse the world. As we take a look into our safety program, there is always Lessons Learned from every event. We do not know what the causal factors were. We are still at the point where you start to reach out to those with members on the aircraft. Im there will be Lessons Learned i am sure. It might take a while to further embed into the safety program. No doubt Technology Innovation front and center in the debate. Ceo of jetblue, thank you for joining us. Coming up, we will be joined by bob reich, the former and sec chairman. Under his leadership the company more than quadrupled its revenue. We will find out what his passion is now. We will be joined by the king of the craft brew, boston beer founder. How he is celebrating 30 years of brewing some sam adams. Another nail in the coffin for discovery tv. Pairing up with hollywood form, as to launch new studio focused on producing online short. The latest challenge to the latest tv business model. In recent days amazon launched tv. Myney spent 500 million to to buy maker studios. Really goingevices fast. Joining me now to discuss rbc Capital Market is jon erlichman. An exclusive interview with ron howard himself. Thank you for being here. What kind of content are they looking to create . Short forms stuff. 510 minutes. I am glad you highlighted a few. Vents that is not like a billion dollar price tag. These kinds of deals are so important in talking about where we are going, whether it is the hollywood content providers like ron howard and brian grazer who could live in film and video for the rest of the life theyre like if they wanted to but also thinking about where the future is going to be and a company like discovery that is very profitable come about also seeing there is so much traffic tied tied to online video. Is not like the cable business or broadcast business where you are getting a license. Were taking advantage of the worldwide infrastructure. Whether it is on the web, ive had, cell phone. So we see ourselves on every one of these screens. The great thing is a great piece of content its pushed all around the world. Moving away from cable and tv and tv in making shows instead for the online forms out there. Movie, apollo 13. For the record, i loved apollo 13. Could but like the longest movie ever. What is the kind of upfront capital for discovery here . John has upfront discovery has thet upfront on discovery. We do not know the numbers yet but my sense is it is a pretty small lump pretty small number compared to this bigger ones. I think the key is like a call option. Represents ak it massive strategic shift. I think it is a call option. The amazon device is not about content but about distribution. Ecosystem itself is still anchored to gold in new and and Time Warner Cable channel 30. There is bloomberg tv. To needs tod stay intact for the companies to benefit of the new initiatives as they mature. We think it is a great time in media where we think you can take advantage of the small call options but the core business remains the focus. I am wondering if there will be a crossover from the short form asthe long firm an experimental venue to create programming. Did they say anything about that . One thing i ask is the and is to not just have ron brian grazer creating the content. Also the expectation they might bring others along to do it, too. I said, are those the kinds of people that will master this or the next generation that has been successful . I think there will be an intersection. Maybe that is what we can provide. The infrastructure that may where they are producing network and Cable Television and producing film and involved in creatively curious. Here is a place where you can explore and experiment and the place you can intersect with people that are committing careers are ready to the internet and their voice on it. David described it as a call option, and yet it is very clear he do not know where the road goes yet. I think that is why so many people are fascinated by it. One thing that really interested me was that the discovery franchise, to me, the greatest strength is in the docudrama, realitybased programming area. This initiative is like scripted. Hort form comedy one of the greatest scripted producers in the world right now. That, if anything, through me. Seems like an association with this company, while it may be us maybe a fantastic strategic moved it seemed a little in congress. We know that discovery went out and started building the business by acquiring provision three, which is different content than the kind you are talking about on the cable channels. Knows the scripted marketing is a smaller chunk. I think that was the thinking on that. Maybe not unlike what discovery did where they branched out from discovery and Animal Planet and dealt with a very known celebrity in Oprah Winfrey to create the opera network. That is where it is. If you can cover more territory, why not cover more territory . What kind of Earnings Growth do you expect from discovery over the next few years . The stock is trading at a high multiple. Discovery is a combination of two things. Probably the highest growth in the pure play media cable channel sector. The highest multiple but highest growth rate. Arguably consistent 20 plus Earnings Growth. The highest multiple in the group, the lowest nice to earnings ratio. Still looks relatively cheap with a nosebleed 20 times multiple with growth in excess of that. It is an odd thing. Really high multiple but could argue it is still cheap. Chinas largest Ecommerce Company is boosting u. S. Investments. We will talk about what is behind the push. Plus, boston beer celebrating 30 years of for winning. We will talk to the man who tastes every batch of sam adams beer, jim cook. Time for todays global outlook. This is the newest funding and round of u. S. Investments. The companies bolstering its presence here, investing in Companies Like shop runner. Sarah frier joins me now from the San Francisco bureau. Spree in theng u. S. Not aw . Alibaba household name in the u. S. But in china. Iants they are listing the stock soon. Preparing for an ipo in new york. I am wondering what the strategy is . If you break down the businesses they are investing in, messaging, ridesharing is there any cohesiveness here . To get a sense of why they might be doing this, it might be helpful to look at the home market in china. . 10 has been making move into ecommerce. Been making aas move into ecommerce. They also recently made it possible to hail a taxi through the app. That might be a reason. How does investing in u. S. Companies help them with competition in china . I think it helps them get a sense of how the markets will work. These companies have had international expansion. Asia is a huge market for messaging. A huge potential market for anyone making an app these days. There are giants out there that they would want to have some stake in. Have there been concerns among analysts or investors that they are diversifying a little too much away from the core product . I think we will hear a lot of that in the runup to i the oh. It is being valued at 200 billion, making it the second most viable Internet Company behind google. Google got their hands and lost the same. To compare. I think there will be concerned about diversifying the market. Competitors in china. They will be spreading into the u. S. Any word on what u. S. Alilators or lawmakers of baba making so many investments in u. S. Companies . These are very small venture capitalist investments. I do not think it is affecting the bottom line. Definitely a part of the Silicon Valley conversation. The pr continues. Where are we on the ipo . Where are we at . Road they are on the way. We will hear a lot more about it. Not sure what the data will be. We know they have picked bankers and expecting to list in new york. We should hear more about that very soon. Seems like every banker except for barclays. Thank you for joining us. Tofrom microbreweries microlending, joining us to talk about the 30th anniversary of sam adams brands. Much more after this. Boston beers mission is not just to brew craft beer but also to brew the American Dream. Also to celebrate the first the founder, jim cook. Welcome. A beer right on site. Well done. Just to give the viewer the sense of what it means, in it has meant 2008, 4000 entrepreneurs and provided 3 million in microfinancing to over 300 food, beverage, hospitality and craft brewing businesses nationwide. Truly amazing lending facility. The American Dream came out it in my kitchen 30 years ago. I have a lot of passion for beer but things i wish i had been able to get but did not get with loan money. Thats and bolts practical business advice. Program haseam microloans and coaching and counseling for Small Businesses. What has been one of your biggest Success Stories . What is the biggest success . We have had lots of really wonderful stories. Ewla. Something called br they make airy healthy ice pops. You go down the aisle in the Grocery Store where there is unhealthy stuff. Y make these rude pops brewed pops. Low calorie and low equivalent of an ice cream bar. A product that makes sense. They are very passionate about it. Yes. They are in about 120 stores right now. Last year they won the pitch room competition. Brewing the American Dream program. They have the best story and were able to present it in two minutes. One of the judges was the buyer for fairway. He put the product into the stores right away. What is the biggest mistake most people make . Think Small Business are very precarious. They often make a lot of mistakes. To me tom of the most important thing we look for in a business that we think will be successful is a great product, that is truly superior. A little business cannot be a little product. It has to taste better. If you couple that with a lot of passion, that is a pretty good combination. Talking specifically about boston beer in your business and product. You had to guide lower versus estimates for the full year. You blame that on advertising and promotion. What does that say about the huge competition that beer is having right now . Beer is going through a transformation. I think as people discover flavorful comer rich craft beers like sam adams, they are migrating away from the big, massproduced and mass marketed beers into something special. Last year we grew almost 25 . Seems like youre having to spend more on the advertising side to offset. Not only that, but we have to build up the buries. We have two foul by another tank, bottling line. Beer is capital intensive. What is the hardest part of the business right now . I am thinking it is hard to get aluminum when you try to buy it from the london metal exchange. What is the hardest thing . Or us, certainly one of the hardest is a very specialty commodity type of product called hops. They are an agricultural product. Right now, the success of craft beer has put pressure on some of the really interesting american hops. We have been struggling to get those. We also by german hops. Adams ishop in sam grown on literally a couple thousand acres in the entire world. We have to contract that out five years in advance. As the craft area beer is getting more competitive, is it getting harder . It is getting more exciting. Needing to plan in advance. You do pray for great weather in the upper midwest so that the barley crop comes in well. We buy natural gas that goes into beer where there is a spike with cold weather in the northeast. You always have those kinds of things. Luckily people drink beer every day and do not have to worry about that. The top five Beer Companies represent 48 of sales. What are you seeing . More than that when you look at the United States. 98 of the beer is made by just two big global brewing conglomerates. Then you come to my end of it, which is craft beer. There are 3000 in the United States. All 3000 of us have seven or eight percent market share. Sam adams a little over one percent. We can double. They cannot double. Here is the most important question i will ask you today, what is your most important labor . Still the original. You will find sam adams boston lager in my refrigerator. Still the best beer. Lex what are you working on next . Lots of others we are working on. We are working on things like a stout. Things on like a double ipa. On introducing other interesting flavors. Br like a shelfewers are brewers are like a chef. I can use rows for more chocolate or vanilla. I put all of those things into beer. Innovation is key. Such a pleasure to have you here. Thank you. Open up my beer form a right now . Never drink alone. No fun. Thank you for being here. I appreciate it. Founder of boston beer. Sam adams beer. A true legend joined five albright. We will see what he thinks of the time Warner Comcast merger and what has him speaking out right now. Growing up to be like your parents can be a really scary thing but almost a mathematical certainty. We will explain more when we return after this break. Breaking news. You will never do better than your parents. The conclusion of a new book. A social mobility which proves mathematically that social mobility across generations is a myth. We are reviewing this book. Particularly we thought sweden was a beacon of enlightenment, that there was good social mobility. Turns out, just as bad as the rest of us. Mobilityhe social actually mean . I am sure you have kids making more money. Generally it measures the ability