Emerging Invasion: Lunch Money (07/16)

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July 16 (Bloomberg) -- On today's "Lunch Money," super-charge the day, and devour all that's driving the markets: stocks, bonds, currencies, commodities, options. (Source: Bloomberg)

That does it for this hour on the markets.

"lunch money" is next.

Welcome to "lunch money" on bloomberg television.

I'm adam johnson.

We have the best business video anywhere.

Coca-cola and here around the world, other major brands are taking root in emerging markets.

It any thought it reveals the new datsun.

He and the jury is revealing how he this man is giving luxury houses a makeover.

Andsharknado takes over the world of treats.

And manned warehouse, will you still like the way you look?

We have an update on edward snowden.

He is still the trend that zone of the moscow airport trying to find a place to escape the long arm of the u.s. law.

He wants to stay in russia, but so far, his would-be hosts have not exactly rolled out the red carpet.

Initially, we told him you can stay if you want to buy you must stop your political activities.

We have certain relations with the united states and we do not want your activities to damage our relationship with the u.s. and he said note.

You're laughing.

I said, no, i'm serious.

His goal is to fight interference in private lives.

We said, do so, but without us.

A russian order advising the fugitive -- a russian lawyer advised hearing -- advising the fugitive has urged him to stop leaking documents.

That is, according to the lawyer speaking to bloomberg by phone.

His bid for asylum will be resolved within three months and he will have the option to renew it for one year.

There's another big international story, the masser spread of american brands and the rapid growth economies of the emerging markets.

Coca-cola indian market.

Mcdonald's in vietnam.

Imax theaters in south korea.

And now nissan wants in on the action with a new datsun in india.

A new middle class has more money to spend.

It let's start with coca-cola.

Profit is down, blaming bad weather and economic growth.

Last month, coke opened its first battle and -- bottling plant in the market in decades.

We will be for most intriguing new drinkers and winning the hearts and minds of myanmar consumers.

We are confident that we can retain and grow our leadership that we already have in this market today.

Coke's goal of putting a bottle and the hand of every person in myanmar, or on the planet for that matter, means they have had to come up with some unique flavors.

? ? fun stuff.

If you are in vietnam and you want a regular coke, you can soon have it, yes, with a big mac.

Mcdonald's will open its first restaurant with vietnam their next year.

-- with vietnam next year.

And mcdonald's is trying to challenge fast-food giants like kfc, pizza hut, burger king, and even starbucks.

They're all there in vietnam.

And the big screen experience is also part of the action.

Imax announced it will add 30 movie screens in china, and five in south korea.

The ceo is in a lot higher, especially in china.

We have a relationship with the major directors and studios in hollywood.

Many of the studios in china, and we have a network, which is about 118 theaters right now.

When we build it out, it will be about 270 theaters.

There are people trying to get into our business, but the closest competitor has something like 12 screens.

I don't think they're doing what we're doing, but they're trying to create a bit of a premium.

But no one but imax can really be imax.

You mentioned two hundred 75 screens.

Some have estimated that china is a market that could have 400 such screens.

Do you see imax having up to two-thirds of the market, would you say, once the full bill out has happened in china?

I think that the estimates for four hundred 50 screens is our estimate.

That is how many we will get in china.

We will achieve that level.

How the country grows is not a major concern to me.

We do not just but at china, but we are in 54 countries.

We have 55 films on a worldwide basis.

Our brand is recognizable to consumers everywhere.

A less premier product is not really the way we look at the world.

That was richard gelfand speaking to jon ehrlichman yesterday.

Make sure you watch those -- both editions of "bloomberg west" at 1:00 p.m. in the afternoon and again at 6:00 p.m. eastern.

It is the new and improved datsun.

That is next.

? we are streaming on your tablet, your phone, and over at bloomberg.com.

I'm adam johnson.

When nissan said they were reviving the dots and brand it raised a few eyebrows.

This is why.

You may remember this from your number days.

Now nissan is promising something new and improved.

Here is what he had to say at the launch in new delhi.

High-growth markets are asking for high-quality, top reliability products that will allow them to realize the dream of new car ownership.

We are responding to them with the return of datsun.

And there it is.

It measures a little over 12 ft.

Long and about 5 ft.


" we caught up with him on after the event.

This car market, which is already at 2.3 million cars per year should reach a minimum of four million in 2016 and then should be growing by 5% or 6% per year.

The slowdown that we are seeing now before us that he has a small parent is a small correction taking place in the market.

We believe in a much higher potential for the market.

That is why we have 10 new cars coming on to the nissan brand between now and 2016, and the new brand.

And we'll make sure that we have enough to contribute to this market.

And you leave considerable emphasis on a high-growth market.

What should we see from these on going ahead?

It is about china, india, brazil.

The it is about russia, but also indonesia, the southeast asia, north africa.

It is about africa.

We used to focus mainly on the united states, europe, japan.

Well, we added the brakes.

And now we are adding a lot of high-growth markets that are not part of the brakes.

Our strategy is to be everywhere.

Out -- we are a global brand.

We have to be present in the market and making sure we're making the cars that they want.

That is why datsun is coming back with a product that is tailored to the high-growth market.

We spent a lot of time analyzing what young rising indians want for a new car.

They want value, space, fuel efficiency.

The they want power.

And we put all of this and gave it a body.

That is why i am optimistic about the potential of this new brand.

And if it is successful in india, it will be successful in many high-growth markets in the world.

There they are.

The new datsun on the top, the old one on the bottom.

What do you think?

We want to hear from you.

From a car for the masses into a car for the thrill seekers, we have another car called the g t r. sam robards gets behind a wheel.

What does he get the fun stuff?

? correct carmakers have been making super cars for decades.

But have they tried sailing -- selling them as a daily drivers?

I wanted to check out this card, the gdr, and how it stack up in the real world.

In a car like this, you get a lot of conveniences'. it is all very comfortable in a car that goes from 0 to 60 in 2.9 seconds.

It is kind of ridiculous.

I don't know where you would use of that power.

If i lived in wyoming, but i doubt.

I live in new jersey.

It this model was easy performance, he did not have to be a highly skilled driver to take advantage of everything this car was able to offer you.

From music to running errands.

It is pretty good.

I cannot imagine i would actually owned this car and use it in that way.

It is a small fraction of the overall 5 million cars they make every year, and it makes about $500,000. why did they make a car like this?

It is a hit the car.

Maybe it persuade you to go for the ultimate instead of the honda accord -- to go for the altima instead of the honda accord.

It it has a really nice bose sound system.

It has navigation, weather alerts, back up camera if i want to see what is behind me, like i'm in a minivan.

No other car really have this kind of instrumentation.

As far as performance is concerned, it is every bit the equal and in some instances a superior to, let's say, a porsche 911 turbo.

In a weird way, this car is a bargain.

From the roadway to the runway, luxury designers go high-tech in marketing and training.

And while we are talking about high-fashion -- why does no one smiled in fashion magazines?

They have not eaten.


Do you smile in fashion?

I did it annually.

There is.

Very natural.

? luxury retailers are spending millions to figure out what customers want, not to talk to please them, but how to keep them.

Welcome to the bizarre world that is london's regent's street, one of the world's prime destination for shopping.

I might make an unlikely luxury shopper, but today we are going inside luxury retail with an exclusive invitation to the hugo boss store with the boss himself.

This is the chief executive.

The trick to the sale here, make it quick and convenient for the cash will shopper.

We're selling items and polo shirts.

The wall is extremely important.

We need to make sure that in terms of siding we do show the right sizes to be sure that customers always find their product here.

Hugo boss wonders how much sells weekly.

The more customers and body heat in one area, the writer the cameras are.

The areas with less traffic are blue.

We want to make sure that -- you want it all read.

But exactly, but we do not want to see red everywhere.

We want to give a special moment to the customer.

Once he comes down here, right you feel the difference.

You do not feel the business of the street anymore.

Not your sold on the visit, it could ease you into a suit, a much more expensive sale.

Hugo boss is moving from an affordable luxury to fall on luxury.

And -- full on luxury.

It is more than creating a sale.

It is how to create a customer.

It instantly becomes a loyal customer.

About 200,000 shoppers have been making their way through the door per month.

My wallet says i'll have to stick to the ground floor.

The the selling luxury, it is not just about technology.

It is also about the architect.

This guy is new york based leather clad -- let's call him daddy of luxury.

Peter marino is the go to designer.

Find out why.

Christo art work, golden walls, and a three-story venetian glass sculpture, just a few of the design elements used to lure in customers to the flagship chanel's store.

It is marketing that i do.

You walk into chanel, you notice chanel.

Do not need a sign.

Leather clutch peter marino is the architect of choice for luxury.

80 projects globally each year and more than half are $10 million or more i really look at the product and design it the the surrounded by the product.

He is not just an architect.

It he is a sensualist.

Peter has a remarkable command to create some chouettes environments -- some shorts and varmints that sell luxury goods.

Those sumptuous environments do not come cheap.

Most have the budget of $10 million or more.

These are site specific commissions works of art.

And he has a trick up his sleeve to keep customers.

You want easy circulation, easy flow, never dead and.

Open floor plan, dramatic lighting, and hidden cash registers in every move, -- in every room, he moves customers straight from the silk and cashmere to the register.

He knows how to design is to get money out of their pockets.

It is part of the success of what i do.

When customers come, they're very comfortable.

I can relax.

I wish my home looked like this.

For more on all things luxury, check out bloomberg's good life on bloomberg.com /luxury.

Coming up, exclusive interviews with two very different side of the fed story.

? it is time to get on the market.

It we are seeing some read on the screen.

The s&p is down for tens of 1%. but remember, we're coming off of an aide david st.

-- and eight days street.

We did have the inflation with consumer prices rising the most in four months.

We will hear from ben bernanke tomorrow in his testimony before congress.

Also, the earnings report.

We heard from goldmansachs.

Even though the company beat some of the individual components of the its earnings, disappointment is weighing on the market.

? we are streaming live under tablet and found.

I'm adam johnson.

We begin with the headlines and tear gas in the streets of cairo.

Supporters of ousted mahometan mercy caution with police.

At least seven are killed and many others injured.

It and another tense night in los angeles following the zimmerman verdict.

Chopper videocast demonstrators jumping on cars and breaking windows at liquor stores and fast-food outlets.

Some protesters ran through the streets attacking people, even reading a walmart.

Police made 13 arrests.

And check out this info.

It is believed to show missile related equipment heading from cuba to north korea.

Officials were looking for drugs when they found it.

The captain of the ship tried to commit suicide.

It will be a big day and an even bigger one for bernanke tomorrow.

Fed chairman bernanke is going to give his monetary policy to congress.

Mike mckee got us these exclusive interviews.

Let's start with charles plosser, president of the philadelphia fed.

He does not think q e is working in europe like to see capering soon.

I've said many times i do not believe qe3 or purchases are hoping mean streak growth.

I would give up sooner rather than later.

I don't want to do it all at once, but i think we should begin to taper very soon and hopefully end it by the end of this year if we can.

You want to get -- and tapering by the end of this year?


But that is a faster timetable than anyone else at the fed has expressed.

I think the financial markets will have volatility associated with them, but at the end of the day the general mainstream economy is falling to be fine.

-- main street economy is going to be fine.

At the end of the day of everyone is patient and everything is graduated, that would be wonderful.

I think risks are growing in the balance sheet and the length of time that we, the fed, has intervened in the federal -- in the financial markets, we have to allow them to normalize themselves in a way that is beneficial to the economy of the whole.

And for some time i've got the costs have outweighed the benefits.

And the president of the st.

Louis fed sees it differently.

He things the fed should continue to buy bonds.

In other words, no tapering.

One thing i've been concerned about is very low inflation in the u.s.. core inflation is heading right a wrong one%. -- right around 1%. that is a very low level.

Something like payrolls has been strong during the past six or nine months than it was, let's say, last summer.

In that sense to buy these you could say -- in that sense, i think it's a labor markets have improved over that time frame of the so-called qe3. i thought there was a slippage back to lower guidance.

To have it creep back and i found a little bit disturbing.

Here is one thing they do agree on.

Bernanke's press conferences.

The it is sometimes a bit unfortunate that the press conference schedule is now occurring on quarterly meetings.

Some people think that we can only make decisions will we have a press conference.

I don't think that is the right way to think about what we do or how we should think about it.

I hope we don't get into that pattern or expectations of that we can only make decisions based on that.

I'm concerned about this press conference issue.

I think it has made it so the committee on the talks and things in terms of major action with the press conference and the other meetings somehow become lesser.

I'd think that is a mistake.

For one thing, events can come up on you and you might have to make a major move.

If you all of a sudden scheduled a press conference, it is going to be all that much more alarming to everyone.

I think he would be better off thinking, at least thinking about having a press conference after every meeting so that every meeting has -- looks identical.

And if you or how much is it, the notes a much of the press conference.

That seems to be the way it works for the ecb and the bank of england.

I think it is a pretty good method.

It does make more work for the chair person, but maybe that is the way it has to be.

Will have full coverage of ben bernanke's testimony right here on bloomberg television.

And it is also bloomberg.com always.

-- always on bloomberg.com.

Up next, sharknado has taken by storm.

Can you guess our inspiration?

And you have got to see this , a car plant in fort lauderdale getting demolished.

Using the 50 lbs.

Of dynamite to take out this power plant.

Here is.

-- hear it is.

This is "lunch money" on bloomberg television and streaming live on your tablet, your phone, and at bloomberg.com.

Sharks, tornadoes, films, what do they all have in common, you guessed it, sharknado.

If you have not seen it, you're probably heard about it.

The sci-fi original horror flick about a megastore and that brings sharks on to the land where they become killing machines.

Check this out.

But yesterday i spoke with the makers of the film and have them as they were surprised by all the attention it has received.

It is amazing.

It is like a phenomenon.

We have no idea it was.

To get this big.

And that it was trending on twitter for three days.

It was like, what is going on?

Any sense of it in the social media space?

I am a horror genre fan.

You would not do that chainsaws seen a few men -- the chain saw the scene if you were going to play to a certain group.

Because of all of the summer's big blockbusters that maybe did not live up to expectations, people just watch this on their own.

You've got to realize that we are in the era of dvr and then watching it later.

We had a nationwide moviegoing experience on a computer where we were tweeting and engaging with the fans and making fun and they were having fun.

The fans clearly liked it.

Look at what we did with no money in 18 days.

Could you do with a bigger budget?

Yes, we could, but we do not have to have a million dollars.

It is not an impossible feat.

Everybody wants us to try to reach for the sky, and we reach for the sky and look what happened.

There is definitely more of an awareness for it.

We are a worldwide success and we did not really do much.

We just made a crazy movie.

The production company behind sharknado produces a low- budget, direct to video productions.

We spoke with the market makers team about the idea behind sharknado.

Recalling a chart storm at the time and we pitched it to the sci-fi channel.

Then the end they said they were working on the same idea, but we were calling it sharknado.

And we knew then that it had been made.

What is the common thread behind where you are producing?

The common thread is first of all, you should understand exactly what the movie is by the title alone.

It on how often do anything else and you know where you're going to see.

-- you do not have to know anything else and you know what you're going to see.

What happened?

You guys just sat around daydreaming about the craziest filmy could possibly come up with dr.. you invent the title and then just commission in -- commissions of one to write an edited script that you ever seen?

Actually, like most major studios, our ideas come from someone else.

In the case of the big creature movies, our japanese buyers come to us.

They came to us and asked if we could make a movie about a giant shark fighting in a giant octopus.

Up until now, that is probably our most popular film.

How much does this cost to make?

It is at a lower level, which is about two million dollars.

You got to feel good about sharknado.

But what does it translate into dollar-wise?

For you, or even for the actors, i don't know if there is in residuals for the actors.

There will always be residuals for the actors.

They don't have anything to worry about.

As far as we're concerned, already there has been a great effect.

We have received something from an original retailer was not going to take the film and they ended up ordering three times the number of dvd's than they were going to order.

This has to be your goal, to create enough does, even if you so far have not match up.

The everyone is talking today about the second screen in television.

I don't know what anyone -- i don't know that anyone knows what is going to be.

A couple of things of note is that the demographics for sharknado were a lot lower or younger than sci-fi usually sees.

The sci-fi network is happy about that, and we are, too.

But in terms of rock -- overall business, we don't know what to say.

It we have already seen ancillary effect and is just great to get bigger -- bigger.

How much of a business is there in making that movie?

How much money the phylum make?

Last year, about $60 million in revenue, tiny compared to any studio.

But what is unique about the asylum is that we have never lost money about -- on a film.

And the reason that is is because we do not make a film until we have a pretty good idea where we're going to make the movie -- the money back.

Never lost money on a film.

The the allowed traders which they could to that.

It is in the top grossing short films.

-- shark films.

? ? coming up, you'll love the way you look, or maybe you won't. when we come back, it is all about the new men's warehouse commercial.

Cracks and we loved robots on "lunch money" and this one is going by role.

-- of viral.

Gabby douglas, you have some fierce competition.

He sticks the landing.

Time now for wild card.

Remember the good old days of men's wear house and the trademark guaranteed?

The best part is not bad r taylor fitted perfectly, but that is by one, get one free.

You're going to like the way you look.

I guarantee it.

George zimmer, who founded men's wear house 40 years ago he is out of the corner office.

He cited concerns with the strategic direction.

Now here is the new commercial.

Correct bring a suit off your back to any men's wear house and we will give it back to man getting into the work force and you'll get 50% off of your next purchase.

Give a suit here.

Change a life.

I think i get it.

Another company taking heat for change, wendy's. not because they changed their burgers.

Do you see something different in the new logo?

Do you see the "mom"? it is spelled out in the collar.

Mom, we are here for you.

Wendy's said this was not intentional.

And he explored and 1950's shipwreck more than 100 ft.

Below the water.

? it is time now to be on the market.

Let's take a look at where stocks are trading.

It declined today after eight days of gains.

Earnings arm weighing on the major averages as was the inflation data that shows how the fed may have some runed to taper off its stimulus that we have seen thus far.

We are seeing some metal's decline, particularly after the metals exchange stockpiles rose by 1.2%. and we're watching yahoo!


That company is reporting after the close of trading.

The one-year anniversary of marissa meyer there as ceo.

For a look at how options traders are setting up for this, we're joined by on jewel.

A lot of hopes are being pinned on marissa mayer.

The think investors will get the payoff tonight?

I think their hopes are reasonably valid.

She is doing a decent job in terms of focusing the company in the right way.

It but i think the bigger means that yahoo!

Has is with companies like alibaba.

Yes, the results tonight will give an indication of how marissa meyer is performing.

But the bigger story is what happens in asia.

And in your opinion, the bigger catalyst for the stock potential as well, which would imply that maybe we will not see as much reaction in the stock after the numbers today?

Yes, one thing to keep in mind, we're not going to see how the asia business is performing.

Yes, options aren't lined by% more and everybody is listening to what marissa mayor has to say on the one-year university.

-- marissa meyer house to stay on the one-year university.

A little bit of a contrarian here.

How are you playing it in terms of the options?

Correct the 5% move in the options, i do not think any news will come out that will move the stock much.

I'm a seller of the move.

And the way i want to play that is by selling a july expiration . i want to sell july, which is expiring this friday for the

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