Transcripts For BLOOMBERG Taking Stock With Pimm Fox 2014030

BLOOMBERG Taking Stock With Pimm Fox March 6, 2014

Radio cohost carol massar. The coowner of the hotel reporting losses. Lazar has sent marketing documents for potential buyers. The team is not for sale. The ceo of Deutsche Telekom said he sees the sale of the tmobile unit is less likely. The executive appointed pointed to hurdles as to why the sale is less likely. Very constructive, that is how john kerry described talks today in paris in order to resolve the crisis and ukrainian crimea. Russian forces showed no signs of leaving crimea and congress is preparing to authorize sanctions. Peter cook has the latest. John kerry says progress was made that but risks remain. He was upbeat as he spoke in paris late this afternoon. The comments followed separate talks with not only russia plus foreign minister but ukraines foreign minister. He is talking as well with several of his european counterparts. All part of this effort to resolve the ukraine crisis. He suggested progress was made. We agreed today, both sides and the ukrainians also that where better served if this can be resolved through dialogue. That is important. On the ground in the ukraine, the special u. N. Envoy forced to cut short his visit after being threatened by 10 to 15 armed men and ordered to leave the region. He took refuge in a local coffee shop before he did head to the airport and leave the area. In washington, jack lew making the case to congress for 1 billion in loan guarantees for ukraine and immediate financial help. House republicans harnessing to do more than that. Theyre preparing to vote in the coming days on the loan guarantees for one but separately a nonbinding resolution. Imposing sanctions on russian individuals and banks. Were giving the administration the necessary tools it needs to tell mr. Prudent to stand down. A note of bipartisanship when it comes to ukraine. The senate is discussing similar legislation. Even elon musk was talking about russia. He played the russia card in washington. What did the head of tesla motors have to say about russia . The situation playing a role. Elon musk was on capitol hill testifying at a hearing on the bid to win more of the governments satellite launch business. Spacex is competing. It is a joint venture between lockheed and boeing. He pointed out after the hearing that united launches rockets using engines. We are contemplating sanctions. It does not make sense to reward russia with a huge multihundred Million Dollar contract for rocket engines. That would be inconsistent with policy and now the red thing to do. Sounds crazy to me. United monster line to dismiss mosque. They have blueprints to build their own if needed. Everyone is beating up on russia including elon musk. You can be sure that there are u. S. Companies and their thing playing out. Those that are doing business pretty nervous about what is being discussed in washington. It seems again ongoing diplomatic aim. Thank you to our washington correspondent peter cook. The risks and the rewards are different. Boyd gaming reporting that they had losses. Tell me about what is going on with boyd. What is up with them specifically . The results are in line with expectations. The take away is that las vegas continues to better their locals business as well as downtown. There is a pretty high margin flow and given some costcutting. That is a key driver for the company. Is everybody benefiting from the change in las vegas . Mgm is the biggest beneficiary of the trend. Vegas is Getting Better and we have low supply. Things are looking up. What about the pipeline, tell me where they are spending their money . It looks quite strong. That is a 2. 9 billion budget up from 2. 6 billion and macau. That is a huge catalyst. The company has won a couple of domestic opportunities. Secondly they will be out a stones throw 10 minutes from the capital. I have been hearing possibility that japan will be changing its gaming laws. That could mean growth for some of the players. Everybody has focused their attention. We think youre six months away from legislation passing. Your talking two years before they figure out who gets licenses. This is more likely in 2019 or the year 2020. A lot can happen. This is a key economic engine especially in front of the olympics. Tell me what is going on with las vegas. You have to look at what is going on and macau. They have had tremendous runs. Year to date the trends are very strong. Revenue is up 25 . We had a softer january and a very strong february that averaged out. There has been unabating growth in macau. We outperform on las vegas sands. We are cautious on valuation. You see a lot of largecap growth money pile into the stocks and that is what has been driving the more recently. They do not have that International Profile and macau. They went to their big transition and spun out there company. Penn is more under pressure. They did win a license new boston last week. The company is not bit of a transmission transition mode. We still like it, it isnt in the stance of stock. Its an inexpensive stock. What about the gaming industry will be a game changer if anything this year . Were focused right now on online gaming. We are turning our attention to california. It is potentially the next jurisdiction to legalize. You can look to them to find some kind of real money play online maybe this year. I do not follow them that closely. They can be one of the entrance in that market. If you look at the math it is a billiondollar poker market in california. A lot of interested parties and a lot of hands in the cookie jar. They have to wait until there some movement on online gaming. What about the companies that exist, do you get the sense that mgm or las vegas sands, they would be willing to get into this business . Some of the Largecap Companies are interested like mgm and you have other folks involved on the Technology Side Like International gaming technology. I would say they are wild card. He is looking to possibly craft legislation. Why is that . I am not sure what motivates his move. His bread is buttered and macau and broader asia. It is not really a game changer from their perspective. Can we describe the situation in las vegas as saying that things are back to normal . It is pretty good. The numbers were above the prior peak. Vegas is still very inexpensive. Hotel room rates are 18 . We want to thank you very much. The director at credit suisse. And risks in the yogurt business. We will be speaking with the founder of maia yogurt. And Benjamin Netanyahu at 6 p. M. Eastern. My guest has gone from the risky culture of wall street to the risky culture of yogurt. Hamilton colwell started a Company Called maia yogurt. Thanks for being here. You were doing structured derivatives at jpmorgan and what happened, did of old a Lightning Strike and he decided i have to go into the agribusiness, how did that happen . My cousin was pregnant and she was looking for a solution. This is before greek yogurt became cool so she challenged me to make her a better yogurt and that was it. It was thankless at times. You go into the overt business. Did you know how to make yogurt . Well, no. I learned really quickly. I had lots of bad batches. I started on my stove and we worked with some great gary labs and Cornell University and did what we needed to take this to the next level. This involves 100,000 cops are being made each week. 1500 Stores Selling maia yogurt. The projected growth is 1000 this year. Where does this all happened, where is yogurt central to maia . We manufacture north of harrisburg. We spend as much time in new york and connecticut as possible. How tough was this to get onto the shelves of major retailers, challenging . Very challenging. We are entering a new space and everyone is trying to get in there. We have been embraced by the great retailers. Fresh market, stop shop, giant among whole foods has been great. Is it important to know how many calories, how many cap grams of protein . Most important to me and to our customers is the lack of sugar. It is the less sweet greek and we pack it with probiotic so it is a healthier yogurt. We find that people come back to us for that taste because they trust us. What are probiotics . They are tiny bacteria that go into our intestines and make us feel good. This is for Intestinal Health and for the taste and the protein. Correct. What is the profile of the market right now in terms of who buys lowfat greek yogurt, is it everybody or is there a segment of the population . It is becoming popular. It is a great category. It is men, women, children. Everyone is embracing the new lowfat greek yogurt. What is next on the menu . You want to crank up the production in pennsylvania . We are trying every day. Have to get a people who are interested in the same product. How do you compete to get the right kind of milk to make the yogurt . That is tough to we have great farmers and great family farms that we source it from and we make a premium product. Isnt that different making yogurt and selling it to the public as it is structuring derivatives and trying to sell that to investors, which is more challenging . Yogurt. When i started by myself i did not know who to lean on. Just this little guy. How many employees . We are 10 fulltime and many parttimers who go out there and preach our message. One of the things i keep hearing about is it is less expensive to start a company than it was a quartercentury ago. What has been your experience . In tech certainly. When you are dealing with the product, a live product, it is not cheap. It requires help from everyone. From your family and friends and from your investors. You have to have that constant refrigeration. You have a particular flavor, what is so great about the flavor . We have eight flavors. It is less sweet and people love that. What is your favorite . It depends on the day. Several. He is the founder of maia yogurt. Looking to purchase the home a home . We will ask our next guest how do you get that deal . It is next on taking stock. Mortgage applications in the u. S. Increased. You can thank a drop in borrowing costs. Homes are more affordable and that means you can refinance your existing mortgage. They help shop for mortgages on line. Anthony hsieh is from loandepot. Great to have you with me. Explain for people that may not be familiar with loandepot, what is this online world of loandepot . We are a retail mortgage lender. We are an approved lender. We have been in business now a little over four years. What is the reach, you say 50 states but if you want to get a mortgage in one state you want to be looking at a variety of offers for that money. We have a hybrid approach. We have four fulfillment sites that handle all our online customers. We have more than 60 branches throughout the country under imortgage brand where we come to your home and give you that type of mortgage advice. If someone were to go to loandepot. Com, what would they find in the trends in Mortgage Interest Rate . The affordable index has shifted. It becomes more of a challenge these days. We did see mortgage index climb in the last week or so. Over the last quarter has been a little bit challenging. Inventory is tight and Interest Rates continue to increase. Do you expect that trend to continue, increasing cost for money . A think so. There is not a lot of inventory and were seeing multiple offers in certain markets and that becomes a little bit of a challenge. What about the investors . Of those people who have bought, is this the time they should be thinking of selling . You have mentioned there is tight inventory. We have seen historical low Interest Rates. Some of the homeowners out there are hanging on to a 30 year Interest Rate with a three percent handle. Many are reluctant to sell. We are starting to see a trend where there could be a situation where there is an accidental investor and homeowners are buying another home by keeping their existing one and renting it. You mentioned home affordability. I wanted to expand a little bit on that because i am wondering whether you will see if you think there are changes to supply that comes on the market. Real estate prices have held steady. We are seeing in certain hotter markets affirming up in the prices, inventory is fairly low and you have rising Interest Rates which means that if you borrow the same amount of money, your Monthly Payment would increase because of rising Interest Rates. When you add that to the fact that real estate prices are going up, not sharply, but they are firm enough, both of those add to a significant higher Monthly Payment. Does this mean that the Mortgage Loan business unless youre doing this online and doing this efficiently as possible, maybe it is not that half of will of business right now create the mortgage industry is looking at a down year. It will be down 35 . The industry is bracing for some challenges this year. To date. Thank you for it joining me. Anthony hsieh is the founder and chief executive of loandepot. Time for on the markets. The Dow Jones Industrial average loses 35 points. The nasdaq adds its points. Next, Muhsin Muhammad is one of three nfl players to score a touchdown in two different teams in the super bowl. His story next. This is taking stock on bloomberg. I am pimm fox. The College Board will make the sat test more optional and eliminate more esoteric words. The essay will be made optional. Kkr sought 1. 5 billion dollars last year. Honeywell has said it plans to more than double its spending on acquisitions over the next five years totaling over 10 million. Theyre looking to speed up their sales growth. That is a look at some of the headlines. Back over to you. My next guest is a former panther. The carolina panther and he is known to his friends and his fans as moose. He wants to serve you chicken. Allow me to explain. Former carolina panther Muhsin Muhammad, aka moose explains. Muhsin serves as a director for carolina partners. We were just talking about how wild wings has someone who is named moose in charge of it. You said it is because your the bull. You are the bowl. You got to be able and you got to be in charge. There is a bull and a panther, a moose, and a bear. You have scored a touchdown for two different teams in the super bowl. That is right. And i have a super bowl record. Now i am scoring touchdowns in business which is a bigger accomplishment. Very good. I like the way you did that. There is a lot of correlations between football and business. Was that transition like to go from the nfl to the world of business . I would like to say it was glamorous but there was a lot of hard work. A lot of ups and downs. Just like football, there is a lot of determination with that. We made it happen between my partner and i. We race defined and bought the business in 2012. A great business. Identified with ports, great food, great hanukkah offering offering and it is a great investment. Great investment but there are a lot of investments you can make. How did you decide that this was the risk reward choice that you felt comfortable taking . We did our it Due Diligence and at the time people were cold on restaurant businesses. You have to remember 2008, 2009, people were scared of the restaurant business. We made a decision taste on the core fundamentals of this product and great food. And differentiate the brand. You look at what Buffalo Wild Wings is doing and he the other sports bar businesses and we felt this was poised for growth and it was a great business. We did our Due Diligence and ran the process. That is what i am good at is getting the blue book and the playbook and running the process and we did that. We came to the realization that this was a great business. You make the realization this is a great business but now you have to execute. There are a lot of great ideas before lunchtime. Now it has to be put into place. Can you name some of the stories are the anecdotes that have changed the way you have created wild wings because it was founded back in 1990. It is a 20yearold business. We have built out what we want to see for potential acquisition. Wild wing cafe checked all the boxes. It was scalable and rod demographic appeal. Great food am a differentiated itself within the place and great volumes. Consistent stability and we love this brand. This is the perfect rent for people who want to go in and invest. Either make a business for themselves or a mom and pop organization to have a single unit. Did you want something that was also geographically nearby to where you were so you could check in on this on a regular basis rather than having a telephone call or Conference Call . I think that is important. We wanted to have something that was located in the southeast, something that we can touch and feel. You are in charlotte. We wanted something that was centralized in the southeast. We have 34 locations in seven different states. It was something that we could get our arms around fairly quickly and close on the deal. You played football not only pro, the panthers and the bears but also michigan state. That is correct. Is there a moment in an athletes life where they realize that speaking to the media, being out in front of the public can not only stand them in good stead while they are playing football and also they can use that same skill later on in life when the going to business . There are certain things that are corollaries from football to business and communication skills is one of them. And meeting people, learning how to know the team, learning how to put together a game plan and look at a Business Plan. Those things translate from football to business. To answer your question, yes. Guys do not go out there and make those connections. One day this game well and. That is a 100 statistic. One day football will and for all players. As part of the playbook, lets say you have a business and it has this thing called the next appoint in it. When you go through that Business Plan what would you say, maybe get rid of the extra point . I like extra points. Why do you like extra poin

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