Customer service, just a corridor away. I will introduce you to the robotic bellhop that is already transforming a hotel into a hightech haven. Fast casual dining. This is a category that has been dominating restaurant growth. We are going to meet to experts who want to transform your night out. First, lets get headlines from su keenan. We start with bank of america. Shares gained more than 4 , the largest increase since may of 2013, this after the company agreed to pay 245 million on s p allegations. And failed to disclose mortgage losses. That resolves part of the 16. 65 billion home depot has named its next ceo. The homeimprovement retailer says the new ceo will take over november 1. Craig has overseen the companys online businesses. Finally, old navy seems to be steering the gaia the sales shipped for cap. Gap. That is the latest. The s p 500 gained today on economic reports, as well as Federal Reserve minutes released for july. Janet yellen is going to give her firstever speech as Federal Reserve chief tomorrow at the jackson hole wyoming symposium, entitled economics reevaluating the labor market. Mike mckee is there, and he joins us now. Tell us what we can expect. This is sort of an academic conference. It isnt clear how much detail she will go into. It isnt clear whether she is going to talk about fed policy. She may outline the latest thinking on her dashboard, where we are with the Economic Indicators out there, but odds are she are she isnt going to say anything that will move the market. Todays Market Reaction after yesterdays hawkish minutes, also important. I was talking with the president of the kansas city fed, the host of the conference. She said they are keeping a close eye on Market Reaction to what they say to make sure that once they do Start Talking about raising rates, it doesnt throw markets off course. Here is what she had to say. It looks like so far between communication from the committee, the market has responded, and the fed has not reacted to the movements in data we have seen but kept a more longterm focus. So far, so good. When we move into the next phase of our stance of monetary policy, there could be some volatility. We have been at a low for a long time. It will be important to communicate and to be communicating how the path of Interest Rates will go. Of course, george dissented seven times last year when she was a voter, hoping to raise rates earlier. Now she says she is on board with consensus program, and she will wait to see what happens with the economy. Michael, are all of the Federal Reserve chiefs of their . Chiefs there . Are they all singing from the same hymn sheet . Charlie plosser was the dissenter at the last meeting, and he eggs the fed should move sooner that he thinks the fed should move sooner. Those who really matter, janet yellen, bill dudley, they are still mid2015 or later depending on how the economy develops. Drew matus made in important point on Bloomberg Television this morning. They are talking about why they think rates should be lower for longer right now. It next year and see where the economy is. Weve got 12 of the 17 members here. We will have no shortages of opinions. We will be following your coverage. Bloomberg economics editor, michael mckee. You can check out the latest economics data on bloomberg. Com and read more stories about the s p 500 rising to a record amid optimism that the Federal Reserve is committing to supporting a strengthening u. S. Economy. From the question of when the Federal Reserve will raise Interest Rates to wall streets own pay raises bank of america said it is going to boost salaries by 20 next year for junior staff and their trading and Investment Banking divisions. Goldman sachs is said to increase salaries for its junior staff. Paul sore barra is the president of alliance consulting. He has joined me to discuss this issue of pay raises. Why are wall street firms raising the pay of their junior employees . Its mostly about retention and being competitive. We side with Morgan Stanley last month for some midlevel bankers. Raising base salaries. Its also about cash flow. More bonuses are being deferred, even some of the junior level. Higher salaries allow these bankers to have a more predictable cash flow. You know, some kids coming out of college want to go into the tech world. Banks are trying to be competitive. Is this about competition or is it about the changing way in which people in the Banking Industry get paid . Its a little bit about competition, and i think its also a little bit about getting back to normal. For a number of years, the training programs, the analyst programs were either scrapped or greatly reduced, and therefore, the bench of talent and the people who have normally been recruited at the investment banks and banks, its not with the traditional levels were. The bench is much weaker now. They need to rebuild it and attract people. Is that because they have laid off many people as result of the 20072008 financial crisis . It is because of layoffs, and it is also because of not doing the campus recruiting in the same quantity as they did in the past. Michael, you mentioned competition for qualified individuals, particularly with from technology companies. With a typically pay a higher salary, or is it the luer of Stock Options and potential for outsized riches . I think it is the luer lure of the riches. Wall street trying to counteract that with a more stable steady salary. Is there a possibility that you are going to see an even greater increase in salaries from other banks . Everybody can just pay a dollar more, whether your bank of america or goldman sachs. Somebody else can come in and say, we will pay you 5 more. [laughter] i think there will be some race, but thanks for still under significant cost pressure. I dont think you will see its viral too far out of control. Also, the other factor is the buy side. Hedge funds and private equity firms have been very aggressive in pushing people from the banks. What is the buy side doing . They are hiring talent from the street. It is a great place for people to be trained, coming out of the university. They work for a few years for a great bank, and investment banks give great training. At that point, hedge funds, private equity firms, and to some extent, the tech world, people are lost by the banks. What kind of money are we talking about . It varies greatly among individuals. Im talking about entrylevel. Youre talking about a 20 pay increase on what kind of salary . I believe the salaries are in the 70,000 90,000 range. Is that what youve heard, michael . That is what we would say is typical for somebody coming into one of those positions. I want to thank you gentlemen very much. Thanks very much for your insight. You can checkout the latest Economic Data on bloomberg. Com. A reminder Janet Yellens first speech as fed chair at jackson hole, wyoming symposium will be tomorrow carried right here on bloomberg. Coming up, the gentleman known as the wolf of wall street will be joining me, and Jordan Belfort is working to repay millions of dollars that he defrauded from investors. Find out what he is doing now. Does Customer Service really need a human touch . Get ready. The robots are coming. To a hotel near you. The man known as the wolf of wall street says hes turning to repay investors he defrauded. Jordan belfort is embarking on a motivational speaking to her, and he says all the profits will be used to pay back his victims. Jordan belfort joins me in the studio, along with keri geiger. Just bring people up to date on what it is you are doing. For the last six years, ive been traveling the world and doing speaking, some motivational speaking. A lot of it is more about strategy for entrepreneurship, sales, venture capital, things like that. As you said, now im embarking on a massive u. S. Tour, about 5060 cities over the next 24 months. Im giving all of the profits back to investors who lost money 20 years ago. That is the story. Im really excited about that. A lot of discussion that weve been having today is, why over the last several years has there been no criminal prosecution for the top ceos on wall street . You went to jail for financial crimes, and obviously paid the price. What is your take on that . Banks are paying huge fines, multibilliondollar fines, but we are still not seeing criminal prosecution. I think that the problem is is that a lot of the laws that were broken are in the gray and difficult to prove. What happened, you have this incestuous relationship between the government and wall street. People on wall street went to the public sector. They changed the rules and allowed these loopholes that people on wall street jump through. While there was certainly a lot of illegal action, a lot of it was more taking advantage of loopholes. It was in the grave. There were crimes committed, for sure, but very difficult to prove. The government, rightfully so, has to pick their spots, and they dont want to fight losing cases. Should some people go to jail . Im sure. A lot of those cases are difficult to prove on a criminal level. The burden of proof on the civil case is much easier. You see bias towards bringing the civil cases with large fines, versus wasting resources on kernel cases. You spent 22 months in prison for your actions. You have spoken about reform. Im wondering if you could give us some thoughts as to what that was like, and what did you decide was a good way to reform yourself . My past was different from most. What happened, if you saw the movie or read the books, i had a massive drug addiction. I wouldnt say the drugs caused the activities that happened on wall street. I started off doing things right and then started breaking the law with stock manipulations. When i got sober, i kind of looked back in fridge out at some of the things i have done. I got indicted a year later. When i went to jail, that was certainly a point where you get to examine your past. Then i started writing a book. When you write, it is almost hyper therapy where you get to reexamine your actions from above and kill back the motivations and see what was driving you, the good, the bad, and the ugly. I was able to get a wholly different perspective on myself. When i emerged from jail and finish writing this book, i was to the point where i knew i would never do anything again that was in the gray. I was raised by a great family. I didnt go out into the world to commit crimes or fraud. It was easy for me to come back to the person that i originally was. Was there a Tipping Point . As you said, you didnt start out wanting to commit fraud, but was there a point that you can recall was the left turn to albuquerque . It started with one gigantic rationalization that it was ok to hide a trade that didnt make sense on paper. It was an older person who was around for many years. In my heart it was 28 years ago i knew it was wrong, and they shouldnt have done it. I said, i will never do it again. Once you take that first step over the ethical line, what happens is your line moves. The next time you step over, you step over a bit further. The next time, further. Before you know it, these tiny imperceptible steps, you are doing things you thought you would never do. You are associating with people you never thought you would associate with. There was a point when i realized that things have spiraled so far out of control, and at that point, it got away with me. The firm was massive. I left the firm in the end of 1993. I lost control of it. It doesnt mean im not responsible. Im the first person to take responsibility. You get so deep in something sometimes that the abnormal seems normal, and the normal seems like a distant memory. Can you stay with us . Sure. We are going to have more with Jordan Belfort and keri geiger. Coming up, we will talk about using the internet to help brands connect with celebrity endorsements. Youll meet the chief executive of the company and the recording artist kendall schmidt. Thats next. This is taking stock on bloomberg. Our guest is Jordan Belfort, the focus of the movie the wolf on wall street starring leonardo dicaprio. He spent 22 months in prison for defrauding investors. Joining me also, bloombergs own keri geiger. You have been able to see wall street as someone who ran a firm. You have been able to see it as somebody who was convicted and sentenced to prison. Youre now able to see wall street as somebody who has come out the other end. What is your description of how wall street operates today . I think things have changed fundamentally since the gsc. I have friends who work at some of the big firms, and i know there have been massive changes in the compensation plans. Places like goldman where they hold back a huge portion of commissions to make sure the trades end up working out over the fiveyear horizon. I think that is a really good thing. I think there is more work to do, but again, i think the danger is that in the beginning, when there is a cataclysm, everyone says, we are going to focus on ethics and retrain everybody. They slowly start to forget, and stepbystep how stepbystep, it is back to the way it was. There needs to be some vigilance. When i give these talks around the world, i say to people, what you hear every once in a while doesnt really make that much of an impact on you. When you hear every day, that makes a massive impact. Repetition, learning, focusing on ethics as well as making money they will always figure out how to make money focus on the ethics, and the balance will be in the good stuff. Wall street to set a trend over the last week. Up to 20 pay increases for midlevel and junior bankers. Obviously, people still go into banking because it is a great way to make money, something that attracted you to wall street. Now we see people, there is a lot of competition for talent a lot of these pay increases are related to people going to Silicon Valley and sexier industries to make just as much or more money. If you are entering the workforce today, would you be developing apps and trying to sell them to venture capitalist, or is that an industry that you think would attract you . It is hard to say. Anyone who was born after a certain date will never truly understand the internet. Im too old. My kids intuitively understand all of the apps. If i was that age, i probably would be looking at that internetawebsite driven businesses. The upside is so massive. Listen, i always think theres going to be amazing money made on wall street. There is nothing wrong with that. I dont think anybody in the u. S. , regular citizens, the grudge bankers making a lot of money, provided they create value. The problem is, they make money and they blow up the economy. As long as they are doing the right thing and creating value, there is no issue with brokers getting paid a lot. It is only when they are making money and not creating value. As long as the focus is on that, i think its ok. Cant avoid the idea of restitution and paying back. You are going to use the profits from your speaking tour to pay back the investors you defrauded. Where are you along in that . How long is this going to hang over you . I have paid back a lot, and i intend to pay back an awful lot over the next way for months. I hope to pay it all back. I wish i could project exactly how many people will show up to all of these talks you have already paid back millions of dollars . Tens of millions, 1213 million so far. The book and money and movie money is going to investors. I want all the money from the u. S. That is not part of it. The overseas is separate from the u. S. . Its a separate tour. I should live a good life and payback. I think that is what redemption is all about. I dont believe people should be with and flawed. I am thankful. Im grateful that ive been able to build a business to where it is not. I can do so much business in the u. S. And give the money back. I want to thank you very much for spending time with us. Jordan belfort as he begins his motivational tour. This is taking stock on bloomberg. This is taking stock. I am pimm fox. Lets go right to my colleague su keenan in the newsroom. Lets start with argentina, a plan by the president to exit default is getting some pushback. A u. S. Judge has ordered argentina not to take foreign bonds locally. An emergency hearing was held in manhattan today. What the judge would do to enforce the ruling is less clear. The country could simply refuse to pay. Stay tuned. Defense secretary chuck hagel says u. S. Airstrikes have helped iraq he and Kurdish Forces regain their footing in iraq, but he expects islamic militants will recruit and stage a new offensive. General Martin Dempsey says it is possible to contain the militants, but he says it cant be done permanently without going after the group in syria. Finally, both u. S. Health workers who were infected with ebola in liberia have been released from Emory University hospital in atlanta after fighting off the potentially deadly virus. One of the victims cant brand play called it a miraculous day. He said he is thrilled to be a live and be reunited with his family. Thanks very much, su keenan. Automation, efficiency, accuracy. Information Technology Infrastructures are run by automatic learning Technology Rather than by people. The idea comes from the founder and chief executive of ip soft. He joins me now. Thank you for being here. Give us an example of how learning technology can be applied to the world of business process outsourcing. That is very insightful. The fundamental question of that, when you are running your processes, they should be run by people. Outcomes should be provided by robotic, automated process processes. The entire platform for delivery of these processes is shifting. It is shifting from peoplebased delivery to cognitive, agentbased delivery, so much so that the infrastructure of tomorrow is going to be managed not by people but mostly by expert systems. Similarly for business processes, youre going to find cognitive agents are going to take a predominant role. Give an example for people who may not be familiar with business process outsourcing. I know youve got clients all over the world. Y