Will stephen if the economy starts to get better and if you start to get better earnings.
That is what is happening, but not because of the fed.
It's because of the fundamentals.
If that happens, that's ok and he said's book.
-- in the fed's book.
Very quickly, what is the next time we will hear from ben bernanke?
We will not hear from him for a while, but a do have a fed meeting at the end of the month.
Since there is no press conference, nobody is expecting anything.
Keep september on the tapering calendar.
Thanks a lot.
That does it for "on the market" right now.
We will be back in 30 minutes for you.
"money moves" starts right now.
? welcome to "money moves," where we focus on alternative assets.
Were going to show you what investors and entrepreneurs are doing as well as what is going on and hedge funds, private equity, real estate, and more.
One of the most active vc's in new york city will join us.
He is investing in companies that protect your personal information and keep the government from tracking your e- mail.
Plus, developing a 21st-century workforce, tapping talent from some of america's toughest neighborhoods.
We will introduce you to the leaders of an innovative program.
And google glass gamble -- we will tell you about google's high hopes for wearable technology.
All that is straight ahead on "money moves." in the meantime, not enough votes.
Dell's board postponing a key shareholder meeting until next week.
What this could mean in the meantime -- more fighting.
Michael dell and silverlake on one side.
Activist investor carl icon on the other.
Our reporter is at dell headquarters in round rock, texas.
What is one more week of fighting going to solve?
After a year of hard negotiating and watching a deal nearly fail, it's hard to believe that michael dell and silverlake are really going to do anything different in the next week or so.
Obviously, there are some shareholders still waiting to see some kind of an increase in the offer, hoping that may be the case for other shareholders.
However, they are holding out for something much more.
Make no mistake here -- michael dell is not trying to be nice and say he's going to help shareholders out.
He knows that two or three years down the road, he could probably sell this company for at least $25 a share.
That is his thought.
Clearly, there are some shareholders that want to participate in the upside that presumably michael dell and silverlake see in this deal.
Which big shareholders are lined up on what side?
We know dell/silver lake has 20% of shareholders, but it is not as a carl icon does not have any shareholders on his side.
One thing that is -- one thing that is encouraging to michael dell is that some might be changing their vote sometime soon.
We have already seen some slipping, which is important, obviously, but some very key shareholders are standing pat.
This is going to be a battle until the very bitter and -- end.
Thank you very much for joining us.
From dell's board moving the goalposts on a key vote to the u.s. government debating a similar move in a potential case . we have been following the investigation of alleged insider trading at the hedge fund since the very beginning.
We have assumed that prosecutors are bringing charges against sec capital and steve cohen, but it seems as though there may be some wiggle room, one more year?
It turns out that the dot- frank ale, which was passed in 2010 in response to the financial crisis -- the dodd- frank bill contains a provision that would seem to extend the statute of limitations for bringing security rod charges from five years to six.
We know comments were made recently saying that everyone thinks they only have five years and they actually have six, but there's tons of white-collar current -- attorneys that never even thought of this.
To your point, dodd-frank was only past three years ago, so can it apply to trades that happened five years ago?
Many lawyers are debating this issue right now.
Basically, this was a bit of a surprise yesterday.
It seemed to come as a bit of a shock to the cohen camp as well.
Some of the conduct prosecutors are looking at happened before it was passed.
Whether or not there is some sort of grandfather issue happen has to be taken into consideration, but basically there was a big bombshell dropped yesterday that they do not think they are done yet.
I'm pretty sure steve cohen's lawyers are going to jump on this.
It's always open to being challenged in court.
A couple of attorneys i spoke to yesterday said that is a risk a run, blowing past the five-your deadline, potentially exposing the government to challenges in this later timeframe.
Lawyers might ask if they do not have a case yet, when will they ever have a case yet for all right, something tells me we will be talking about this still for a while.
Thanks, as always.
From a big-name and hedge funds to a big name in technology, google earnings out later later today have us thinking about google glass.
I took them for a tight -- four a test drive.
Here's my photo in the newsroom.
Google cofounders say they will be widely available by the end of the year.
First of all, does the average person really want these?
There's a lot of complaints about the devices being invasive , and it is kind of different to where wearable technology on your wrist and on your face.
It's a different experience.
I have to admit, there's a lot of interest in it.
You talk to the average person, they want to try out this new gadget and see what it is like.
That's different from saying you want to buy it and use it long- term, but there is definitely an eye candy kind of thing -- no pun intended -- that they want to try this out.
We will see over the longer term if this works.
There's a lot of questions around if we want this device stuck to our had all the time.
Some folks who have tried it out have said, "i don't think so," or "maybe it is just not ready yet." hold that thought because i want to bring in our guest.
Bob, you are with suntrust.
You have a buy rating on google.
What does google glass mean to google's bottom line?
What do you think of a great -- whether you think it is a great piece of hardware or you do not like it at all, it is a prototype.
Think of gordon gekko on the beach making that call.
This is what it is.
What we try and do is think about where this can be in three years, four years, five years.
I think it will be much more seamless and much less noticeable.
We think the difference, much -- not much of the hardware, but the seamlessness.
You keep your first-person perspective.
I heard what you said.
This is the first round.
This is beta, but what about what we were just discussing?
How invasive is this to actually have it on your face?
Right now, it is new technology.
People do want to take a step back and wonder if they are being recorded.
Quite honestly, most people have embraced the technology.
They find it very cool and very interesting.
It's the first layer of augmented reality.
It seems like this product is going to be available to the rest of the market before years end.
What kind of apps might be available on it?
Already, there are a lot of apps, which is a key part of the platform, can it get these new tools that will make it more widely interesting to a lot of people?
Already, facebook, twitter, key social sites rolling out little, tiny, entry-level apps.
Obviously, it will need a lot more if it is going to see the adoption like an iphone or android smartphones.
You do have the glasses, so go ahead and put them on.
You have to model them.
It's part of the rule.
As far as some of google's other businesses, how it compares to some of their growth areas, how do you see it stacking up to what they are doing in biotech and nano tech?
Our research uncovered a couple of cheap, preeminent thought leaders in bioengineering, nano, stealth engineering.
Basically that means they are working on the next level of computers, and you can digest things like cancer chemicals, be able to communicate with things like commuters -- computers, cell phones.
There's a whole new level the cisco puts at about $14 trillion market size.
All of this is cool, fun, interesting.
What about google's core business?
Is all of this a distraction?
Google, the one thing they are all about -- data.
This is just more they can know about you, can serve you a better ad.
I'm glad you brought that point up.
I want to toss it back to you . how creepy is this with privacy concerns?
How much more information can these big companies have about us?
Google cannot get enough data . that is part of what it does, and that does bring up a lot of questions about privacy, about intrusion.
There have been questions from capitol hill itself asking what google glass really means.
So far, there are just a lot of questions out there and not a lot of answers, necessarily, on how this all will play out because this is a really new technology.
We thank you very much.
Thanks for bringing in the glasses, too.
We have a break to take.
When we come back, you have heard about disruptive education for adults, but perhaps not for kids.
We are going to introduce youth to a vc who is betting on big changes in k-12. plus, a startup for travelers that takes all the hassle out of moving your luggage around the world.
We will tell you you how that works straight ahead on "money moves." ? welcome back to "money moves " on bloomberg television and screaming all day long on your tablet, your phone, and that bloomberg.com.
Your personal data is worth a lot to tech giants such as google and facebook.
Your desire to keep it private is creating a lot of opportunity.
Our next guest is a venture capitalist and cofounder of first mark capital.
Rick thomas always glad to see you.
Thanks for coming in.
-- rick, always glad to see you.
You probably saw the analyst here with google glass.
It's not just google, but any big tech company.
Lex everyone wants to get a hold of your data, market to you, advertise.
The average website you go to has between 30 and 35 from collectors on it.
What most people want to know is just what is happening to that data, what it is being used for.
There are companies like disconnect.me, who are saying, "i will block that data and have completely discrete web browsing and searching." the data footprint a race?
I think they were the fastest- growing and they had the best teams.
These were guys out of doubleclick, out of google, who saw data from the other side who said there seems to be a lot of data.
Facebook was getting ready to go public.
This was about a year ago.
Facebook making a lot of money off someone else's data.
There has to be a backlash.
At some point, these were the best technical folks who went out and said, this is a product available and accessible to the consumer." do they have servers in switzerland, for example?
What are the nuts and bolts of how this works?
They do not keep their data and stored away.
They actually just delete it.
It is not even available to them.
Your search history, your browser history all caps the race.
You can choose who you share that data with.
Not only for you, also, you are seeing a huge market in the children's market and protecting kids.
How do they make money?
I pay a membership fee, or i sign up once?
Like any consumer software product.
Right now, it is pay what you want, so it is even better, and they can figure out how to value what they are creating for you.
They are just getting started, and they are seeing people who really care about their data and where it is going.
You are also investing with an idea of education being ripe for disruption.
What is the most exciting project?
What's the most exciting investment you are making in that context?
Probably is the most exciting is a company called newton.
A personalized education.
Everyone is used to be personalization of the consumer internet.
You go to amazon, you bought a book yesterday, and here is another book by the same author.
Is able to personalize education.
You are getting better at math.
You have all your addition and subtraction, and now here is multiplication.
Creating a path more interesting for the student and can set off logs if things are not going well and also accelerate if things are going well.
This product can be not only high school level but all the way through and beyond college.
They are partnering with the biggest publishers in the world to make it happen.
It sounds like it is skewing a little bit younger.
When you talk about high school, most of the disruptive education things i have seen have been clearly geared towards adults.
They have been, and they have been more interesting.
Newton is really focused on building core skills and getting credit for achieving more in either high school or college.
We have a quick break to take, but when we come back, more on innovative education platforms.
I will be speaking with the founder of a nonprofit training company.
Men and women from underserved communities are finding careers or at least opportunities in i.t. that is coming your way.
Also, blackstone's real estate empire lands to take a u.s. shopping center public.
We will be back to keep you updated on what is going on with the markets.
? we focus now on the biggest alt asset firms.
Blackstone more than tripling in the second quarter if you look at profit.
The firm announcing a big exit for its biggest position, real estate.
Jason kelly is with me now.
He is our p/e gruber -- guru.
Jason, first of all , we are now calling blackstone and alt asset firm, no longer a p/e firm, which i think is interesting.
Real estate is now their biggest business by asset.
They own hilton, motel 6, extended stay, making them the biggest hotel your -- hotelier as well.
$64 billion in real estate assets.
That almost as much as all of blackstone had when it went public.
We just showed the stock chart.
Obviously, it is moving higher.
The idea was the earnings were really solid, and there's also the idea of this ipo, and it seemed to be showing off the strength of some of these real estate assets, right?
That's right, and exits are the lifeblood of right at me or private equity style real estate.
You make the investment, and then you have to sell something in order to make those -- it turns out you are supposed to make money.
And investors expect you to make money.
A are and probably a -- they are in probably a two-year period of investing what they own and returning to investors.
How does blackstone compared to some of its other peers with how much a had or how aggressive the firm was in going into real estate -- compare to some of its other peers with how much ahead or how aggressive the firm was in going into real estate?
They hired an task and one with this idea of creating an affiliate.
He was a junior guy working for some senior people, creating this affiliate to try out the real estate is this.
Fast-forward to 2013, it's their biggest business.
He is on the board of directors and talked the new ceo.
It just reinforces the importance of real estate to blackstone.
Carlyle, kkr, what are some of the smaller shops doing in response?
They are continuing to invest heavily in real estate.
Carlyle has been an investment for a long time.
Kkr a couple of years ago hired a guy from goldman sachs.
Goldman sachs pumped up their real estate division.
Kelvin davis, a guy who helped start colony capital about 20 years ago is focusing a lot of his efforts on the real estate division at ppg.
This is a key area of interest, a big alt asset, as you mention.
What happens if rates go higher?
We have been talking a lot about the fed.
What does that change?
It changes how they structure their deals.
It changes what they can buy.
It may increase the amount of equity.
It may increase the amount that they have to pay.
Schwartzman was asked about that on the conference call this morning.
They do not seem overly worried.
They have a deal machine to put to work.
Thank you so much for joining us.
It is 26 minutes past the hour.
Time for bloomberg hoss "on the markets." we are seeing a surge in stocks today, the s&p 500 surpassing its previous intraday high.
The s&p and the dow both up .5%. the nasdaq lagging today.
We are also seeing a lot of records in the financials today.
The s&p 500 index, which tracks the financials as an etf, and the kbw bank index -- all of those at their highest since 2008. a lockout highs today.
Morgan stanley, lincoln national all leading.
? this is "money moves " where we focus on innovative alternative investments.
I'm deirdre bolton we want to bring you our top headlines this hour.
Adam johnson has them from the newsroom.
We begin with day two of ben bernanke's testimony on capitol hill.
He said gold prices well this year because investors see a be deuced need for disaster insurance.
He went on to say, "nobody really understands gold prices, and i do not pretend to really understand them, either." honest words from the fed chairman.
You got to respect that.
Shares of morgan stanley hitting the highest price in more than two years after the firm topped estimates for revenue in the second quarter.
Morgan stanley also announcing it will buy back i've hundred million dollars worth of stock.
And netflix making history.
Original series "house of cards" getting nine emmy nominations including best drama and best actor for star kevin spacey.
It's the first time an internet streaming service is competing for television stop honors -- television's top honors.
Stay tuned for "street smart." we will see you at 3:00. looking forward to it.
Thanks very much.
In the meantime, we talk about one of the worst parts of traveling, which is moving your gear.
Airlines moved more than 25 million bags a year.
One company has a solution, an international door-to-door luggage shipping service.
The founder is with me now.
He recently pitched his company on abc's "shark tank." was it fun or not?
I do not know if fun is the word.
It was memorable, we will go with that.
How did you come up with the idea ? -- how did you come up with the idea?
In 2000 702,008, we noticed a trend . in 2009, we noticed this was a great trend for us to get into . a door-to-door luggage shipping service.
The way it operates is quite simple.
We pick your luggage up from any home, hotel, or office anywhere in the u.s. we do it through major couriers and we also have local couriers in each town.
How do you control costs?
What do people have to pay?
$59 as a standard bag, and oversized dollars -- oversized is $99. is still cheaper than an airline.
On the second and third bag, absolutely.
Are you trying to raise money?
Do you want to raise money?
Did that experience show you you can do it yourselves?
It definitely helps just being on the show.
We have seen a huge increase, over 500% and revenue -- in revenue over the past year alone.
We are definitely open to investment if they can bring the right partnership to us.
Right now, you do have one firm based in boston.
You also have an investor from philadelphia.
So there is money in the company.
For real we have that covered.
We are definitely interested if anyone can help with the marketing.
You also have shiptos chool.com, boxmypet.com.
Our firm specializes in management solutions through those for consumer plans.
Did an airline lose your luggage, and this was supposed to be your best trip ever?
I really was just about seeing the seasonal college shipping business for so long, and eventually, as we got older, we realized we wanted to get into some businesses that could be scalable.
Once we saw that trend in 2008, we acknowledged that this was something we should definitely take advantage of.
In 2009, we launched it, and ever since, we have been increasing.
Thank you very much.
Rate to meet you.
The founder and brand manager of lugless joining us.
-- great to meet you.
When we come back, we will introduce you to an inventive hiring pipeline for some of the world's top banks.
Where back in two minutes.
? welcome back to "money moves " on bloomberg television and streaming all day long on your tablet, your phone, and bloomberg.com.
This week on "sportfolio," rick horrow welcomed the guests was developed a man who developed a new statistical feature.
In this post-steroid era, general managers are spending a lot of time worrying about their pictures.
You have devised a system for starting pitchers to go way beyond wins, losses, and earned run average.
Tell us about it.
I focused on a number of things pitchers have direct control over, but even beyond that, just for the context, things like the quality of the opposition they are facing, the ballparks they are pitching in, the ground ball fly ball mix -- we know ground balls cause a lot less damage than fly balls.
Most importantly, how deep does a pitcher pitch in the games because that means an awful lot for a starting pitcher.
It helps save his team possible pin.
Pretty sophisticated analysis.
Give us your top five and a surprise.
As we sit here with the all- star break, adam wainwright at the top of the list.
Six wins and eight losses, but again, chris has pitched in u.s. cellular field, which allows 8% more runs than they league average.
Real-life context to this.
Hypothetically, the phillies drop out of the race and start shopping cliff lee.
What is his value?
How do you analyze that?
He pitches deep in the games, he throws strikes, works very efficiently.
When you look at all those different factors -- and by the way, he does not tip up a lot of home runs in a homerun ballpark.
His value in the trade market is only a minute by the fact that he also carries a hefty contract.
Nonetheless, he still could be a trade chip.
"-- "sportfo lio" has moved to thursday nights.
We want to bring you some quick, breaking news.
You saw our deals reporter at dell headquarters in texas.
We just learned that the buyout group led by michael dell, the founder, is not seeking to sweeten the deal.
The offer for the company, the idea of taking a private, they are not seeking extra financing from microsoft or the banks that secure the deal.
This is according to people with knowledge of the situation.
We will, of course, keep you updated on any additional headlines.
Again, not looking at the moment to sweeten its bid, but we will keep you up-to-date.
In the meantime, there are not enough tech workers in the u.s.. 88 million u.s. residents do not have the credentials to participate in the information economy.
At the same time, though, employer demand for skilled workers is expected to create the .7 million new i.t. jobs before 2014. one company is creating an expertly trained workforce to fill that order, provide training for free, and there is help from corporate partners . joining me now is the ceo, and also a graduate of the program.
He now works for newberger berman.
Thank you, gentlemen, both for joining us.
Very glad to have you here.
How did you come up with this idea?
How did you realize that this mismatch between what is available in the workforce of what companies actually need can be addressed?
As a young boy, i grew up in the bronx and quickly realized that when my father was working, life was better and when he was not, life was not.
What we realized over time was i was thinking through this organization, can we provide individuals from distressed communities the skills they can use to succeed in the labor force?
And then moved on to talking to employers and i.t. to determine what their needs were and constructed our training program to meet those needs.
What we have been able to do is bridge the gap between what employers say they need and the production of talent to meet those needs.
When you say it now, it seems like it is the most common sense thing in the world, but yet, before it is created, i'm sure you had a lot of challenges.
Part of the issue is how you bridge the skills gap that exists for those individuals from distressed communities, understanding that they need to be developed and given the proper skills so that they can be successful as employees in i.t. companies.
How did you get involved?
How did you know this was a resource available to you?
We should point out you are a rockstar graduate of this program.
How is the outrage as somebody who participated in this program?
About two years ago, i was looking for a career, looking for an opportunity, when somebody -- my mother -- actually told me about this program.
She saw in the church, there was an event at they just fixed all their computers.
I thought this was interesting as a career, as this was something i liked.
I took the program.
They gave a certification, knowledge as far as how to keep a job and hold down a job, everything we would need to be able to just move on up.
You are at neuberger berman now, but does the program help with interviewing as well?
Does it help you with one -- the transition from wanting this type of work, the incapable of the type of work, to being able to hold a job?
The hardest part is having a job, keeping it, and moving up.
They taught us how to do hardware, software, all type of i.t. work, but the most important part for me was learning how to hold a job.
They had a class every week called life skills where they taught us interview skills, things that somebody would say, "this is easy to my" but you always learn something new.
I don't think it's easy for anybody, so that a strong part of the program.
How did you pick, as you just referenced, the hardware, the software, the life skills, interviewing, job search skills?
How did you pick the right balance of where to put focus for the people that you are reaching out to?
I think what sets us apart from other workforce development initiatives is we view the employer community as our primary client base, so we are constantly talking to them to understand what their needs are.
We sort of rely on them, and then we take that information to create a curriculum that allows us to produce talent that they need.
Are these banks lending you i.t. techs to help you teach?
We have a very robust volunteer program and look to grow that, but we rely on professionals from the industry to come in and provide training.
Not just around the technical skills, but also the life skills.
Mock interviews, for example, are a great piece of our program . we mentioned some pretty big names.
Bloomberg included, but jpmorgan, barclays.
How hard was the pitch when you reached out to the met first, or did everyone understand what you were trying to do?
I think everyone the mission of the organization and really wants to help.
The question for us is understanding that these corporations have a bottom line, and can we produce mollified workers that helped them meet their bottom line?
I think we do that very successfully.
Nice to me too.
Thanks very much for coming in.
Great to see you both.
-- nice to meet you.
When we come back, expanding your investment vocab with all's as word of the day -- bob's buzzword of the day.
? welcome back to "money moves ," and we are looking at beveridge curve, very much related to what is going on in the jobs market and jobs data.
Does not have anything to do with how much water is being consumed in new york city today.
This is named after an economist, and it is a very important piece of the analytical toolset for the economist.
What it does is it compares the vacancy rate of open jobs to the unemployment rate.
When the unemployment rate is high, the vacancy rate is low, and indeed, if you look at most charts -- let's pull it up so we can see it.
Normally, you will see a smooth curve there.
Here's the actual data that we have looked at over just the last couple of -- over the last decade or so.
This basic smooth curve is, in fact, present, but suddenly, there has been this shift to the upper right over the last few years.
What are economists saying about this?
This is really unusual behavior . 2010, 2011, 2012, we had this big shift.
What is going on here?
The market is inefficient for jobs.
They are economists.
Economists never agree on anything.
They are all arguing about what the causes are, but this three or four structural problems in the economy.
One we were just talking about is every month, there are millions of jobs that go on filled, and it's because, at least in theory, the american workforce is not qualified to do them.
They are mostly science jobs, i.t. jobs, tech, and engineering.
Yes, and that's exactly what you see on this chart.
There are other parts of it as well.
Some people think the extension of unemployment benefits disincentive people from going out and filling these jobs, so it kept the unemployment rate hike even though there were plenty of vacancies.
That's another idea, but it seems to me, the least likely, or less likely than people just not being qualified for what is out there.
Most people would agree with you, and there is a third explanation as well.
Employers understand they will need to fill these jobs, but there are no big hurries to do so because their -- their our worries about whether the recovery is real.
They are listing vacancies but not worrying about trying to fill them.
We are back in just two minutes with more on "money moves." ? . . tomorrow on "money moves" making new york city even more competitive in technology.
I will be joined by the founder of a mobile app.
In the meantime, it is 56 minutes past the hour, so we will bring you up to speed entry what is going on, on the markets.
Julie hyman has the latest.
The s&p 500 is surpassing its prior intra-day record.
Heading for a record close as well.
The bond market, we have seen push in yields there as well.
Taking a step back and looking at one indicator we can examine in the markets, it is called the so-called smart money indicator.
It i want to bring in paul hickey of the spoke investment group.
Basically, the indicator says it is a market axiom, the so-called smart.
In other words, institutional money does most of its trading at the end of the day, and the so-called dumb money, the retail money, does most of its trading at the beginning of the day.
What does this tell us?
Since the lows of the recovery in mid june, we have seen a lot of strength early on in the day and the rest of the gains are pretty mood -- muted.
Based on that indicator, that would be the so-called dominee, you say.
But what we are also seeing -- and some money, you say.
But what we're also seeing is money coming from overseas.
I would not necessarily be overly worried about it.
It is a sign of money coming back to the u.s. from overseas.
The and we have seen that in terms of mutual funds, where people are putting more money into equity.
The crux of the the dollars are doing better this year and the the -- the dollar is doing