Orders looking flat. Consumer demand is measured. Capital goods coming out as a measure of corporate demand, looking up. I will bite you. [laughter] easy, easy. Dont do it, i will lose my contract with adidas. 9 45, pmi, purchasing Managers Index. A lot of earnings. Noble, General Mills, monsanto, bed bath and beyond. I need towels. Gopro is pricing tonight. 2123 . Begins trading tomorrow. President hosting shimon perez at the white house for lunch. Beyonce and jayz kicking off their first combined national tour. Not only are they married, seeking together. The summer concert series. They are not the two that went to florence. No. Kanye counts them as friends. Odds on how long that lasts . This is number three, kardashians. We look at the inner tame industry. Stocks, bonds, currencies, commodities ugly yesterday. 0 points. , down 10 yields have come in, 2. 6 to 2. 58. Nymex crude, 106. 56. 12 on under 11 to above the vix. Dow down. Two year yield gets my attention, creeping higher. Worth watching. Brent crude 115 to 113. 91. Matters,e charge that adam mentioned this earlier, the years. The nation 14 recession, ugly. It has been pretty good, pretty choppy. A further revision down here taking it off the queens visit to game of thrones, under winter has went. Old news. Labor related and problems with retail. We always say that 70 of the economy is consumer, a citigroup advisor pointed out that it is 56 and the other 13 is health care. It is only 56 . Wisdom from adam johnson. Lets get further wisdom from our front pages. Scarlet fu was up at 2 00 a. M. A couple primary election results. A defeat for the tea party in mississippi. Thad cochran nearly turning back his Tea Party ChallengerChris Mcdaniel and the gop primary runoff. He was backed by the chamber of commerce and health by blacks and other Democratic Party voters who crossed over to vote in republican primaries. A huge deal. This is an accountable this is incalculable. Chris silizza wrapped this up. It is important because of what happened with eric cantor in virginia. He was surprised and so many people were surprised he was defeated and that primary. 49 . to concede, hedid not suggested he might challenge the results. Mr. Rangel in harlem. Still counting votes a couple hours ago. Absentee ballots as well. I dont think we have a final determination on mr. Randall. The idea of the gop establishment taking on the tea party. What else . U. S. Taking a First Step Towards exporting u. S. Crude for the first time in almost four decades. Commerce Department Opening the door to exports if crude is lightly processed, schmitz could begin in august. Give us the back story here. Embargo was put in place in the 70s. Created a Strategic National resource. I want to point out two things. We figured out how to get oil out of the shale so we have a lot more oil. These exports are for a type of liquid natural gas, you can refine it very easily into gasoline and jet fuel. I used to trade oil. In theory, we can start exporting condensate. What is the why that we cant export oil . We thought we only had so much of it and opec was very powerful. Thegacy issue going back to 1970s, why would we give up something we need to import . Things have changed since the shale revolution. The government ruling applies to just two companies, pioneer and enterprise half ie. Aogle getting ready to unveil set top tv box. Trying to compete with apple and amazon, Digital Content at home as more and more people cut the cord. Did we vacuum the carpet . I want to control my living room. Resembleset to products like roku, it will carry another companys brand. Think about how samsung uses Android Software on his phone. I have zero interest in this story. Why . You watch plenty of content on television. It is a way of getting content in a different way. So you dont have to pay time warner or comcast. Do you watch espn . Of course. I watch biting. How much do you pay for your monthly cable bill . Next nothing. I pay 174 to time warner cable. Crazy. Day, adam johnson is going to get fed up if one of these setup boxes proves if google those are our front page stories. Futures flat, vix closing at 12. 13. Jonathan miller is with miller samuel. Moore at us is kate j. P. Morgan private bank, Senior Vice President of courage. What is your message to your investors, to have courage to stay in this market . We have looked at every single asset and said nothing is cheap at this point. We have told them they need to stay fully invested. If they do not at this stage of the cycle they will leave a lot of money on the table. There is a desire to take some profits, perhaps in equities or high yield, money into cash. But when you do the math and you think rates are going to rise or you think economy is going to improve, that is not a productive use of capital. That folds into your analysis of earnings. High single digits. Looking for 7 to 8 Earnings Growth in the u. S. 2 div yeaields. Not much more multiple expansion, we are at about 16 point forward. It is a well oiled machine, is not priced in . Some of it is priced in. If we got to july and had our 10 return for the year, we would have a different conversation. Theres a little more room to go. You said at this point in the cycle, when i hear that that suggests that we are nowhere near the blowout phase, that is when you really want to be things are turning by. Churning by. That is yet to come. Thee are midpoint of economic cycle. This is a long cycle, you have not in Capacity Utilization hits high levels or a we have not seen leverage pick up. We think we have some room to go th earnings and asset allocations. Been aousing, has there change from the emotion, i am never investing in the stock market again and im only going into real estate . Is that song and dance changing . Im not sure. Mixed messages about housing for the last six months. It has been gloom and doom and now we are getting some unusually high numbers of new home sales and confusing messages. I dont know if the consumer is really deciding what is better than the other. Housing last year, nobrainer. This year im not sure. Two people yesterday asked me the same question, how can manhattan housing be booming, orkeshiller shows new y numbers so lousy. How do we get 90 day statistics on new york metropolitan area. Threew the zaniness in blocks of the studio. The case schiller numbers of new york reflects the market in december, before the polar vortex or anything like that. There is a sixmonth lag. It has nothing to do with new york city, it does not include coops, condos, new development. All the things that are building. Theres the answer on bloomberg surveillance. Clarity from miller. And a lot of times we will show the camera shot on top of our building and there is this building going up next to us over on park avenue. A full floorhat one for 90 million cash . Tom lost the bid. Wheres the money coming from . Bethat building is going to 1400 feet high, 400 feet taller than the tallest building we have so far. I dont know where that specific transaction, but a lot of the deals are foreign buyers. I dont want to state that i dont want to overstate that, it is still in the new development space. Foreign buyers are accounting for about 50 . 55 . 50 of new development. Do foreign buyers include people from westchester . [laughter] jonathan miller, our guest host, along with kate moore of j. P. Morgan private bank. Gopro about to go public, is it a financially sustainable country. What is the most Disruptive Technology product on the market . Gopro cam . Your apple tv box . Tweet us bsurveillance. This is bloomberg surveillance, streaming on your tablet, smartphone, and bloomberg. Com. Good morning, everyone. Bloomberg surveillance. Coming up through the day. A conversation with the former president of the u. S. Bill clinton. He will join Market Makers from the Clinton Global Initiative america in denver. 11 00 eastern time. Tune in to Bloomberg Television all day for more exclusive america. S from cgi this is bloomberg surveillance from new york city. I am tom keene, with scarlet fu and adam johnson. As i put the thing up here the little camera on top of your head . You can put it on your shoulder, too. Anywhere. Gopro makes wearable cameras. They are expected to price their ipo tonight and begin trading tomorrow morning. Not everyone on wall street is sold on this company or its ipo strategy. Joins us now with a look at some of the biggest concerns. Here is the thing, gopro makes hd cameras. Is it a Hardware Company or a Media Company . They earned 1 billion in revenue, all their revenue came from the sale of hardware and accessories for the gopro product. Ipo they are their valuing themselves like a Media Company. This is how they are going to get growth moving forward. It is not such a far cry, one analyst said it is kind of like taking Nicole Richie and her twitter stream and turning that into a tv show. You have all this content and information and turning that into a media channel that people can watch. Are they making money as a Media Company . Not yet. They have partnerships with microsoft, version america, and youtube. They filter content and collect revenue from advertising based on that. That is not expected to be material revenue in 2014. I get dizzy as i watch these things. The video is so awesome. Any talk of partnerships with red bull, that seems obvious. They have sponsorships, they sponsor athletes. Their bread and butter is surfing. Competitionsthose and racecar competitions. They have some sponsorship interaction. As far as i know they do not collect revenue from that. It is mostly the sale of hardware. How has the roadshow gone, are they so arrogant they do not have a road shohow . I watched their retail roadshow video, which was produced by gopro. Very entertaining to watch. Exciting looking at ebitda, are they going to make any money or is it red bull videos . Guys doing crazy things. February of 2000, right . I would not say it is that extreme. These guys are profitable and have been for four years that they posted financials and their perspectives in their prospectus. Atnet income, Gross Margins not horrible for Media Companies going public. What i hear is that the roadshow is going well. People are impressed by tony bates, the former microsoft executive they brought on. Seen as the grownup in the room. Lets go to the grownup in the room. Richard bernstein. Former Merrill Lynch. He is the author of a book. Fabulous book on growth versus value. Investors manic for disruptor stocks. Market,re, twotiered disruptors on one hand and everything on the other . That is fair, people are looking for story stock at this point in the violation cycle. It is not that regular companies are unattractive. Or 16ou get to 15 times times forward earnings, Everyone Needs to feel like something is in a secular bull market, not just a cyclical bull market. General mills at 7 00 . Is that a story stock. A few decades ago. Youve are a, competitive skier, do you use at gopro camera. I have never, but many of my friends do. Watching some of these videos makes me dizzy after the fact. Use gopro do you cameras . I dont but my son is a fireman, he wears them on his helmet going into burning buildings. Why doesnt the camera mount . Im going to rip up the script, are you going skiing with Julian Robinson . No. Do you wear a helmet . Always helmet, i have worn a helmet for 20 years. Our twitter question of the day, what is the most Disruptive Tech addict on the market. On therouduct market. Tweet us bsurveillance. Leslie picker will be there to report on the pricing of the ipo. Coming up in the next hour, iorino is our guest host, the future of hp and women in the gop. Coming up on bloomberg surveillance in the 7 00 a. M. Hour. Good morning, bloomberg surveillance. I am tom keene with scarlet fu and adam johnson. Futures flat, up 1. Morning must read. Listen,orning must willow bay spoke with Penny Pritzker at the Clinton Global Initiative in denver. They were talking about the american export import bank. Penny pritzker made comments about its role in access to capital in the u. S. Take a listen. This is an important part of the credit spectrum that is offered. Particularly for small and mediumsize businesses. There is a real problem. When i talk to small and mediumsize businesses, access to capital for exporting is a challenge for them. Then, their only choice is export import bank. This is imperative that we reauthorize the export import bank. What do you need to do to make sure that happens . To beneed everybodys was heard, particularly the business leaders, small and mediumsize business leaders. So everyone understands the facts. Defeat, eric cantors he was a supporter of the export import bank. A lot of noise about how theyre not going to reauthorize funding for that. Kate, weigh in . You can expect Penny Pritzker to say it is important. Is it . It is important, not just about the export import bank, to make sure we are setting up mechanisms for small and mediumsized businesses to interact in the Global Economy. One of the things that will take the u. S. Economy to the next level is access to capital. Asterisk the banks are more thoughtful about how they are lending, we want to make sure we have institutions in place to provide that funding. It is going to be something important to watch. This is about d. C. And how they facilitate business. Not just after midterms but into the next election. Tune in to bloomberg all day long for exclusive interviews from the Clinton Global Initiative in denver, including a conversation with former u. S. President bill clinton, chelsea clinton, and former treasury secretary robert rubin. You know who was absent from that group . Hillary clinton. Shes a little busy. Woodbury comeback, the huge rise in new home sales. We will be right back. Good wednesday morning, bloomberg surveillance. Our twitter question of the day, what is the most Disruptive Technology product . Send us your response. Product Disruptive Tech on the market today. bsurveillance. This is Bloomberg Adam Johnson was hereby minutes ago and we will get the top headlines. The most happening word in the english language today. Here is the top news, a western was attacked by syrian warplanes. At least 50 people were killed. Serious trying to back the shiite government in the battle much ofthe rebels, but the country is conceded to insurgents and abacus want to defend the capital. A ceasefire in the ukraine appears to be just talk. Prorussian militants shot down a military helicopter and all nine servicemen aboard were killed. New sanctions by the west against russia may be delayed. Obama Administration Officials say they need to see positive signs from russian president vladimir putin. And politics turned upside down this is that the, thad member edged a tea party. Liberals voted for him because they feared his opponent. Those are the top headlines. Amazing election. A shout out to the Bloomberg News headline team and the syrian bombings in iraq. Said this wasrt u. S. Trends, and the military denied that, and the sequence of headlines was remarkable, how they had clarity there, within the chaos of all of these headlines. Equities and currencies commodities futures are here,ve one, 62 elevated and housing recently a little bit elevated. Housing is indeed elevated. Jumped the sales most and 82 years, but demand remains at record lows and with rates near record lows. The president and ceo of millersamuel, where is all this cash coming from . Newhome sale numbers, i think the spike is more of an anomaly, this is a onemonth blip. Permits are down and i would like to think that housing, we are seeing more new construction, but i think that that is a little bit, we go a couple of months with that kind of growth. U. S. It on the coastal is foreign buyers, with about one third of the market is investors coming in and looking for a way to park their money, especially on the redevelopment side. One of the other data points austin ande index, San Francisco are correctly back to where they were in 2008. What do you make of those numbers . Dallas and denver have exceeded their 2008 highs. 2006 highs. They are back but you have to remember the market with dallas, it did not fall very far and they have had a booming economy. The last time i was on, tom alluded to the legalization of marijuana having something to do with it. But it is interesting. Boston also is about four percent off of its alltime high. The alltime high is an credit, that is not something that we necessarily want to aspire to. Sales, andnewhome this is a regression. Those blurred lines down at the when you wake up in the morning, john miller, do you see newhome sales as a proxy that will get back to what, 2003 levels, 2006 levels, will they ever get back there . All of the above or one or three . I will take a different answer to that. Now, newhome sales are about 10 of total transactions. Historically business to be about 15 . I think that we dont normalize until we are at about 50 in terms of the volume that we are getting now. I think that this is jobs and credits. New household formation and simply, we are not making new houses because kids are living with their parents. Thetudent loan debt and plummet rate for people right out of college is 50 . That is a big number. Are 10 of alles transactions for most of the activity in the Housing Market and where this takes place. You like the release on existing home sales, what did you learn, about where we are in the