Transcripts For BLOOMBERG Taking Stock With Pimm Fox 2013121

BLOOMBERG Taking Stock With Pimm Fox December 12, 2013

Go to my colleague, Olivia Sterns todays headlines. Adobe systems forecast profits that will fall short of analyst estimates. Fewer fulllling versions of their desktop software. The income for the fiscal Fourth Quarter is 71 . Trading,e first day of the Largest Hotel operator raised 3. 5 billion with a record ipo for the hotel industry. The company and existing shareholders sold 117 million shares. The stock closed above 21. On the flip side, low lemon stock fell the most in six posting below analyst estimates. Had a slowdown in sales in the Third Quarter that has continued into this. This period. Theoments from now bipartisan budget deal faces its first test. The house is going to begin voting on the modest deal that permits another Government Shutdown for two years. But this has done little to address the longterm fiscal challenges of the nation. Peter cook is on capitol hill. Is there any doubt on the outcome of this agreement . There is no real doubt in the outcome. Top republicans and democrats have said that this will pass the house of representatives in a short amount of time and they are backing this bill despite continued criticism from conservative republicans that it does not do enough for the deficit and criticism from liberal democrats who say it is not do enough to help americans who are hurting, particularly those on unemployment right now. Notecember 20 that is part of the deal and there is no extension there. This does avoid the possibility of a Government Shutdown for the next two years and replaces some of the sequestration cuts that democrats and republicans dont want. And they will live to fight another day, this means there is no big fight over taxes and entitlement programs. Paul ryan, the Top Republican crafted this in the house, countered by chris van hollen, the democrat, who stepped up to support the bill. This bill is not what i would like and it is not near the breadth and scope of the budget we passed earlier, but that is how it works in divided government. In divided government you dont get everything that you want. But i think that this bill is a form firm step in the right direction. This agreement is far from perfect. This is not the budget agreement me or my colleagues would have written, but on balance and at the margins it represents a small but positive step forward. Hollen was late for the bill, we also heard from nancy pelosi, the top democrat in the house who says she does not like the bill that she will support this and most democrats will as well. We expected the majority of republicans to support this along with a great number of democrats as well. What about outside conservative groups . House speakerwith john boehner . This is the most fascinating part of the debate, the split between the conservative groups in the house because for the first time in these debates, the House Speaker criticizes those debates and opposing the bill before they read that, and this is what he says about the speaker. I take criticism from the right and the left, i call for a more accountable federal government and this budget agreement takes steps in the right direction. When groups come out to criticize an agreement that they have never seen, you begin to wonder how credible those actions are. Interesting words from john boehner. Very striking on capitol hill, how he has pushed back against people asking, will the challenge of these conservative groups and the tea party element Going Forward. Thank you very much, peter cook. Next i will bring in bill hoagland from the Bipartisan Party center, he worked 33 years in the federal government and was the federal budget staff director for 17 years and joins us from washington. What is different this time . Thank you very much for having me on. What is different this time is for the first time in the budget act over 40 years, we will have a budget agreement where the senate is under democratic control and the house is under republican control. Never in the history of the budget act have we been able to come together with that division. We have had budget resolutions in the past and 1986, the last time we had a bipartisan agreement when the senate was controlled by republicans and the house by democrats, this is a giant step, says mr. Van holland this is a step in the right direction to find Common Ground between the house and the senate moving forward. Has anything changed in the disposition between republicans and democrats since the Government Shutdown . When we went to the Government Shutdown, there was a clear recognition on the part of a number of republicans that this was not the best thing to have done. Maybe it had hurt them Going Forward in terms of the polls, the polls have have the congress at the lowest level this has been since people have kept polls on the congress, and i think there is a clear recognition that there is the need to get some form of working relationship between the house and the senate moving forward, to stop this bickering that has been going on and hurting the American Public. Going forward. What does this do for president obama . I work for republicans for those many years but i have to say that the president is rolely he can play some but not the role that one would have expected. Or that i would have expected with these negotiations. What do you mean by that . Past,id not see in the when i was involved in these negotiations like the shutdown in 1995, president clinton was actively involved, debating, part of this negotiation. I am not criticizing the administration. They put forth a budget back in the spring and some elements of what they put forward as it relates to the retirement programs for federal workers was a strong element of this. This was between chairman mary and chairman ryan. This is where we have to pass that legislation, and so i am not criticizing the president that thisly suggest is where the negotiation had to take place. This took place in congress. Is this consistent with the with what the administration has taken so far with the first and second term . What the president put forward, a budget that he worked strongly about. They reflected many of the president s requests coming forward. This was an effort on the part of, what we can get done, and show, working in the bowels of that capital up there, they can show the American Public that we can have republicans and democrats working together. I think that for the president we avoid another Government Shutdown, at the beginning here. The difficulty that i have to highlight, which i dont think thiseen highlighted, relates to the statutory debt limit, which we will still need in february. I dont think we will have a Government Shutdown if this will pass the senate later next week, probably, but we have not addressed this specific issue. They will still be against that in february and march. We are not completely out of the woods here, as it relates the fiscal situation next year, but we have made a major step in not having government, if this does pass through the house. We will see a real reduction in the difficulties that we went through with the Government Shutdown in october. Would passage of this budget bill hoagland, will this allow passage of other issues like Immigration Reform . This is part of the charged political environment we deal with, to deal with things on a bipartisan basis. We will have a bipartisan farm bill when we come back at the beginning of the new year. This shows that we can work together. Each individual piece of legislation faces its own problems and issues, i will not suggest that this necessarily makes everything easy, Going Forward on Immigration Reform and health care reform. I think we will still see those issues being debated, but on the fiscal front we have a small step forward in dealing with the Government Shutdown, a small effort in reducing the deficit out into the future. This is nothing to write home about, but this does show that we still have the opportunity to define the working relationships between republicans and democrats and this may be a small element of the opportunity to work on larger pieces of legislation. All right, ill hoagland bill hoagland. From small acorns to large oaks grow. What are the uses of those little buttons on your smart phone or computer, the mobile apps. Fore is a Marketplace Developers to find out what their applications are worth and how they can cash out. Archie manning and the heisman presentation is saturday, he will be here to talk about college sports. Recentlyple app store announced an inventory of milestone, one million titles. And 6 billion downloads all around the world. With numbers such as that, apps are big business and growing. My next guest has worked to bring App Developers to app buyers. Jonathan kay is the foudner of online marketplace for apps. How do you describe that to people who have no idea what these are, but know about those buttons on their smartphone . There is a developer behind each one and they need to make money. Some of them make less money. We have a market that provides an exit strategy for those developments. Facebook,is sold to and there are one million apps in the app store. There is a way to cash out. What happens is you find out that you put this into the app tooe, and you didnt do well and want to go on to the next thing. What do you do with that . You connect all the different accounts to us. Your ad Network Account you let us understand exactly how you make money. We have an investment page of one page we have tens of thousands of buyers. They constantly come to our website looking for opportunities. They know that we value all of this data about your app. We try to lower the barrier of entry to get into the app store. What kind of money are we talking about . 10,000, 50,000 . Andhey sell between 100000 200,000. The sweet spot is between 5000 and 7000. What can you get for that . The most popular ones are the casino apps. Slot machines and blackjack. What happens after you buy this app . You dont have any you dont have any expertise but you want to get in on the business. You are buying the code and the design and the assets. You are taking it out of one developer account and putting this into your development account. Of thismaking money off app, and we recommend that you look into improving monetization. Most developers are good at building apps, but not good at buying the apps. They may only show these to u. S. Customers and all the customers are coming in from spain. When someone buys an app, does the original creator get any residual rights, like an author or a musician . Under the completely standard agreement, they do not. Most developers dont want this. This is like their child. They will spend maybe one year with this and they want to move on and try something new, and dont want to deal with customers and the headaches, so the times that we see when shares in residuals is with the apps where they want to have a big part of the upside. You have mark cuban, who is a big backer of apptopia. He is the lead investor. Kiev. , new york, what is that boston, it is hard to start is a community that, we dont want to outsource you. We will give you equity in our company, we will treat you as well as anyone will treat you, and we built a team of completely devoted developers, that kind of lead bleed apptopia. Have you found an app coming to your store that you want to buy . There are many of them. What kind . He sold one for 41,000, called instalaker. On instagram you want people to like your photos. This essentially built a community that says, if you like my app, i like your app. You can get credits to get more likes for your app. These for get one of your anniversary and customize this yourself . Jonathan kay, chief operating officer of apptopia. Next, we have the gentleman behind the Architectural Design of the top Business Schools and microsoft is said to consider molencamp as a potential chief executive. We will have more on i am pimm fox. Taking stock. Do you remember the days when you squirmed around in class, if an uncomfortable chair that was attached to your desk . This was last century in this does not exist, courtesy of graham wyatt. He is a partner at robert a. M. Stern. He has revolutionized colleges around the country, the zoning 17 buildings for Business Schools, with Rice University and wake forest and now he joins o talk about how Design Architecture and learning. We know people can go to school to learn to be architects, but how has architecture and Design Change to accommodate this . The basic premise is the way in which one works in the Business World has changed. In order to be effective you have to learn in a different way in Business School to be prepared. That, what are some of the physical differences that exist for these cases . I have been in your office, which is entirely open, background noise and people collaborating, this is no longer sitsuation where everyone in a row and listens to a professor. This day is done. Is this already the day of the cluster . How does that fit into this conversation . The idea started at harvard Business School where they took the auditorium lecture hall and curved it around into a horseshoe, so the students could speak with each other during class. That is part of the harvard Business School case study, but the next step is to bring the class down to the sub groups so the individual teams of people will work on a project and then they will all report to their professor. That is what this new classroom facilitates. What is the biggest challenge in presenting this new Design Program for what is such a traditional campus outcome . There is a lot of conservativism in the educational field. People like the classroom they are familiar with and are nervous about a situation where they are not in control, so it takes a bit of overcoming that but the most effective way to do that is to take people to see a classroom where this is working. Give us an example you are proud of. The first one was at Rice University, this has become a Tourist Destination in the Business School world, people go down to look at these classrooms and they see how the teamwork that takes place in the classroom is different than it was in the old lecture style classroom. William mary . The big advantage there was having the full integration of whiteboards and projection boards so that you can see both at the same time and increasingly, professors work on tablets, so free agents are Walking Around the classroom. Expensive toy more do this kind of building . The technology is a bit more expensive but the classrooms have a big advantage because during the offhours, this kind of classroom is used. I want to thank you very much. Graham wyatt. A footballe manning, legend. Is taking stock, i am pimm fox. Lets go to mark crumpton. Onin mexico they have voted an end to government control of oil reserves, which will change mexicos charter to allow Companies Like exxon and chevron to develop in the area. According to a report by jpmorgan, this could improve benefits by 15 billion annually. General motors is selling their stake in a french automaker that they received last year as part of an alliance to find savings for both companies in the european market. According to someone familiar with the matter, they will sell at 10shares of peugot euros, to 10. 5 euros per share. Raising 725 million in rke companys ipo arama sold 32. 5 million shares at 25 each. By a groupcquired including Goldman Sachs and j. P. Morgan. The Winter Olympics are just a couple of weeks away. We will look at sponsorship for the Upcoming Games and the pressure from gay rights activists. I will be joined by the founder and executive director of an organization looking to end homophobia in sports. This is at 7 p. M. New york time. I hope to see you then. Mark crumpton, talking to us. Archie manning built a life in football, with 14 years in the nfl. Now he is the chairman of the National Football foundation, and was named the coach of the year in the fourth subdivision of ncaa football. I talked about what he learned as a rebel at the university of mississippi, and the perks of fatherhood, raising his sons, eli, peyton, and cooper manning. We just try to raise good kids, and somewhere around the line, they loved playing sports, with aa lot of sports, goal to play College Football. Peyton played at tennessee and eli at old miss, and they were able to play football. As a former player, and as a father, what about this whole field . F injuries on the tackling in football right now, i understand this. I have some good friends who have dealt with concussion issues, people who have been affected but i think in all aspects of football they try to address that and the nfl is doing everything they can to make things safer. I think that colleges are doing the same thing, with high schools and youth football, to make sure that we get back. I think football is a great game and there are a lot of life lessons there to play the game of football that the game has to be safe. In the highart schools, getting back to teaching the right way to tackle, not just missiles and spears and the headtohead thing. I

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