Year, but toyota will call all of the stops to maintain a best- selling vehicle in america.
And that is it.
Electric powered car could be heading to a garage near you.
That wraps it up for on the markets.
Elon musk --"money moves" starts are now.
? welcome to "money moves" where we focus on alternative assets.
I'm deidre bolton.
We show you what investors and entrepreneurs are doing, as well as what is going on in hedge funds, private equity, realistic and more.
Investors are reacting as they are weighing taking action in syria.
We will bring you updates.
In an investing, the u.s. infrastructure is getting more attention from the ps/e community.
We will share why.
And whether -- and an investor with larry ellison back in the day will tell me where she sees the next big technology breakthrough.
In the meantime, the crisis in syria is where we began.
They will be presenting their findings to the un security council within days.
Later this afternoon in d.c., the obama administration will brief congressional leaders on evidence said to implicate the syrian government on the chemical assault on its debt.
-- in a chemical assault on its citizens.
Bloomberg's chief washington correspondent is with me now from d.c. what is the latest?
A lot of moving pieces this afternoon here in washington, new york, and of course, over in syria as well.
The international momentum toward a military strike has slowed somewhat as both the obama administration and its allies around the world have faced a push back, some justification questions about military action and the wind of military action at this time.
Here on capitol hill, the president's's team will be briefing congressional leaders.
They will be outlining the case against the syrian regime and the use of chemical weapons, the responsibility for the syrian regime, as well as potentially what the president might do in response.
The talk has been on some sort of military strike.
That comes as more than 100 members of congress, of the house, have asked the white house administration to ask for congressional vote before there is any use of force.
A virginia congressman was making the case for a congressional vote.
Correct these conversations taking place with senior leaders within the house and senate are helpful.
I applaud the president for initiating those, but they are not a substitute for engaging the institution itself, congress proper.
And then having as eventually vote on an up or down measure, a statutory authority for military action.
Just a brief time ago here at the white house, the spokesman for the president was asked whether or not the president would commit to a vote here in congress.
He declined to as that directly.
Here's some of what he had to stay.
When it comes to congress, the president believes robots -- believes strongly in robust action.
It is something we will continue.
In that briefing, which continues at this hour, the spokesman also declined to say whether the president will wait for the un security council to support the use of force.
Again, making a case for the fact that russia has been an obstacle.
A lot of moving parts here, but again, the president is facing some questions at this one house briefing about whether the u.s. knows definitively that the syrian government was responsible for that chemical weapons attack and when it might provide more information to the public and not just to congress for that intelligence.
The british prime minister david cameron is also facing some push back the fear is that no one wants this to become an iraq part to, right?
-- part two, right?
The white house is pushing back on that, as is the british parliament in the uk.
Facing questions about the justification for military action.
In the u.k., there was going to be a movement to authorize action quickly.
Now it looks like that vote, in at least parliament, will take a few days at the minimum.
The un may be more of a factor than we thought.
Correct peter cook with us -- peter cook from d.c., our chief washington correspondent.
And nasdaq is providing more details about its three-hour trading halt last week.
It is saying a flood of data received from the nyse-listed exposed a software flaw in its conduit for disseminating prices.
We do not have a full reaction yet from the new york stock exchange.
We will bring you that and more details as we get them.
It will bring focus back on what could be be biggest deal on telecom in decades.
According to people familiar with the matter, verizon is willing to pay $130 billion for a 45% stake that vodaphone currently owns in its wireless unit.
Cristina alesci is with me.
What are you hearing about negotiations with vodaphone?
What are the banks telling you?
How are your sources weighing in?
Everyone around this deal says it is nearing the finish line.
We could see a formal announcement as soon as september 2nd.
There are always complications, and the thorniest issues sometimes come up at the very end.
What is complicating this is the amount of debt that needs to be raised, $60 billion.
That is what verizon wants the banks to lend to execute this deal.
Every percentage point will obviously mean a $600 million cost to verizon.
They've got to the the time the market right.
That is also a complication.
And there are some tax issues that have to be worked out from the vodaphone side of things.
And of course, a history of these monster deals has not exactly been littered with these-what success the the.
Vodaphone did a deal itself that had years of write-downs.
It was -- and of course, the poster child for a big deal gone wrong, of time warner and a well.
-- and aol.
What about the timing?
This has been discussed for a very long time.
The prospects shooting up is probably a bit of a catalyst.
-- the prospects of interest rates shooting up is probably a bit of a catalyst.
This joint venture when it came together was worth $7 billion.
Today, it is worth $300 billion.
That is a phenomenal increase in valuation.
That could have been vodaphone taking a look and saying, look, we are not going to get much more out of this in terms of valuation.
It is a pretty rich price for verizon to be paying.
And when those stars aligned, and you can have the ceo's actually have a discussion, then you may have a deal.
Cristina alesci with the latest on this potential telecom deal.
Bloomberg 's european editor command as cranny is with us all week.
. mannus cranny is with us all week.
There is a huge portfolio in ireland and there are talks to find three prime property sites.
These assets are worth $288 million at the peak of the irish market.
That was the most expensive square-foot deal ever done in the history of ireland.
Blackrock, and there already.
It bought for $67 million last year.
What a shiny jan they just got.
Last year there was this insane property bubble and and it burst and now is back to it were.
. is the timing now for these p/e firms to get in?
Correct i think it is.
-- i think it is.
But there's another side to this story.
Have a look at this.
John malone, for personal interest is buying trinity hotel for $35 million.
Russia's richest woman is buying a morrison hotel for $30 million.
And michael is buying the k club.
Billionaires', golf clubs, and backs -- blackstone.
There you go, man as granny joining as with the latest on blocks down and some billionaire investors getting back into ireland.
When we come back, a private equity firm based in stockholm has its sights set on u.s. infrastructure.
We will tell you why.
And gene sullivan of stardust co invested with larry ellison.
She will tell us about that, her experience with him.
Also, where she is seeing the most ever charity in technology right now.
? we are following this breaking news for you on the nasdaq.
The nasdaq providing a few more details about that three-hour a trading halt last week, saying a flood of data exposed a software flaw the innate conduit for disseminating prices.
-- in its conduit for disseminating prices.
We will bring you all of the relevant details as soon as they come in.
What we have now is that statement from the nasdaq.
We want to turn the page on investing in the u.s. infrastructure.
It is becoming a bigger and bigger seen in a private equity community.
In fact, one northern european firm raised two $0.5 billion in january for this sole purpose.
So far, the fund has acquired either four companies, two in the u.s. and two in europe.
With me is glenn who heads the new york office.
What is so hot about the investing in the u.s. infrastructure right now?
For several decades there has been a big under investment in the infrastructure in the u.s. as well as europe.
We see this as an opportunity to help develop these companies in the u.s. to correct since january, u.s. acquired four companies, all two in the u.s., one in germany and one further north in europe.
And how dependent are you on the municipal spending year in the u.s.? a lot of cities are just broke, or they will not spend money on infrastructure projects right now.
For us, it is not about the new infrastructure, but the the the existing infrastructure.
With the erotic tension and expertise we could be more productive and more effective -- with the rights attention and expertise we could be more productive and effective.
If they just you go into these companies and fix things and get more value that way?
Many of them are essential services for the local community.
They have nice cash flows.
Very stable, very essential, and maybe the companies have not been very focused on bringing brass -- bringing best practices in.
We want to take these companies and build them and make an excellent companies.
What kinds of companies are you targeting?
We're looking at storage companies.
We just bought last week the company called center growth technologies, which is a residual growth technology company, the largest in the u.s. and i will look at power companies.
A whole shale gas revolution requires a lot of infrastructure in order to get the gas to market.
I mentioned the $2.5 billion dollar fund that you raised in january, but this is one of something like 15. you have been extraordinarily busy.
Where the demand in coming from?
Since 1954, we have focused on europe and the the in the u.s. as well as other parts of the world.
The demand for what we do is both on the private equity side as well as the infrastructure side.
It we're focused on building companies.
It we are focused on bringing expertise into where companies to make an excellent.
And receive investors attracted to that strategy.
They are coming to you from where?
Institutions, wealthy individuals?
Where is the breakdown?
It is pension fund, southern wealth fund, financial institutions.
We are seeing more interest from the u.s. pension funds, for examples.
We have about 22% of investors from our fund from north america.
Thank you for joining me.
Talking about why u.s. infrastructure is such a hot investment area right now.
We have a quick break to take.
When we come back, gene sullivan from stardust capital will be with us.
She is a pioneer in the cloud sector.
The the -- will find out how she is would be a hot area quite a few years ago and she began investing.
? collects a headline that we are falling for you at this hour, social media company for square, which lets users check in and show where they are, i said to be in talks with multiple large technology companies about potential the investment.
They may be looking to benefit from a new advertising approach that lets brands target users.
Earlier is the way that some the investors talk about their decisions.
But jean sullivan has spent over two decades in helping to grow technology companies and is one of the b.c.'s most influential -- one of the pc world's most influential voices.
I sat down with her about the cloud.
It is important to understand that either the cloud and the software as a service is, indeed, the future.
The crux what led you to know that, though?
It is one thing to know that, but another to act on it.
We started the lead cloud based company that has a financial services we at the core and enter fried -- enterprise referred planning, erp, and customer relations management come off crm, fully integrated.
We were the only institutional investors, me and lilly -- larry ellison, to invest.
What is happening in the cloud?
It was on the small and medium business market.
But today, they're selling to large, multilocation companies.
What has happened is workers who work at home or salespeople on the road are now using mobile devices and demand to be able to use these kind of enterprise applications from their mobile devices.
This whole area is called the consideration of the west.
-- consumerization of the web.
The the when you go to work, you expect the kind of the ease and interface that enterprise has behind the consumer.
You expect great innovation.
It is very interesting times.
You are working with many different businesses.
You are basically investing all around the country.
Where else besides new york and besides silicon valley to do you see demand for these kinds of products?
We have always looked anywhere in the u.s., looking for the best of breed companies.
And we have found many.
They're not just on the coast.
Such as austin, texas, such as chicago, which has become very innovative and entrepreneurial.
The southeast -- atlanta is producing a lot of good companies.
Are there any others that you are extremely excited about where you say, this is going to be a great company, a good return on investment for us and other companies?
We are seeing disruptions in several areas.
One is securities.
Security is back, more important than ever.
And there is a company that is knocking it out of the park they're one of the most promising software companies of on demand, application security companies.
And a disruption in human resources, the human capital management world.
They have been floundering for years.
Now terrific things are happening.
Because companies are realizing that it cost them money any time they have to lay people off and they have to retrain people.
Anywhere from 200 up to 1000 employees in a year are being laid off.
That is hard.
We have a company right here in new york with a diamond -- a dynamo woman ceo and she is doing a lot of hiring and doing many things that you have to do.
And there is a company called urban ballot.
And they're making the the the for relocation -- making it easy for relocation.
In essence, you're investing in companies that are tackling big problems.
Something that has not been done in this sector and now we are seeing a great many.
Correct jeanne sullivan -- jeanne sullivan.
It is 26 past the market -- the hour, so it is time for on the markets.
I want to show you where oil is trading.
Overall concern over syria is dissipating.
More money moves after the break.
? this is "money moves" where we focus on alternative investments.
Fidelity and guarantee filed for an ipo.
It would pay cash to harbinger with the idea of expanding operations.
It farrakhan reached a settlement with the sec this month that bars him from being a hedge fund in the industry.
Itcut the u.s. economy expanded more than estimated in the second quarter.
Gdp is rising at a two 0.5% annualized rate, up from an initial estimate of 1.7%. and a drop in initial jobless claims and unemployment benefits.
And obviously, both good news for the economy.
The probe into jpmorgan in asia has expanded.
They want to know if jpmorgan gave people jobs so family members could steer business to the bank.
According to those familiar with the matter, the probe has turned up internal document that means hiring to specific deals the bank was pursuing.
And even the new york will not challenge other states and recreational marijuana, instead, the u.s. will focus on distribution to minors and transporting it across state lines.
Growing, selling, and possessing marijuana under federal law thatis still illegal coming up, you may remember harold as the winner of the first season of top chefs.
We'll talk about the business of high end in cuisine.
Looking forward to that.
We will continue to let you know what is going on with the nasdaq.
A flood of data received from the nyse exposed a software flaw thein a conduit.
Julie hyman has more.
This is the outline of what we already knew occurred during the nasdaq outage, which took down the the trading of 3300 securities and brought trading beyond that nearly to a halt.
The nasdaq was saying a consistent failure caused by a flood of data coming to it from the nyse arc of platform- remember, not the trading securities, but the processor that lets those quotes go out into the broader public.
The in this flood of data vastly exceeded the capacity of that feat, known as the sip.
The nasdaq took part of the responsibility saying that part of the problem with the volume coming from the nyse, but also says a number of issues were within the control of the nasdaq ymax.
"we are responsible for them, regret them, and intend to take all steps necessary to enhance the functionality of the market its." that is a step further than what the ceo said when he talked about the outage that occurred.
It underlines the technology that underpins the market generally, and not just the nasdaq omx.
But also at the the nyse.
And some of the vulnerabilities that occur when the system is run electronically.
I heard you say the nasdaq is accepting responsibility.
Do we have any comment from nyse yet?
Not at this time.
"it doesn't sound like it is clearly placing the blame anywhere.
It says, really, we need market coordination among the different exchanges to prevent these things from happening.
As always, thanks, julie hyman.
We will keep you posted in any relevant headlines that cross.
In the meantime, you're probably familiar with crowd funding for technology companies.
But my next guest runs a kind of kick starter for philanthropy.
You can donate directly to more than 1 million on profits, or users can set up their own fund raising activities.
It it has raised more than one under $65 million to date.
Over 1 million charities or nonprofit organizations.
Lesley manfred is the ceo.
She is with us from san francisco.
Glad to have you with us.
Before we talk about rise to -- razoo and why you thought this was necessary for the marketplace, you were creating games before this.
I cannot imagine a different -- more different experience than what you're doing now.
What has it been like for you?
It has been amazing.
It has been wonderful to marry my technology experiences with my passion for philanthropy.
How can we leverage technology to disrupt philanthropy and democratize it?
I know one thing that people are often concerned about when they give money to a charity is how much money is getting to the charity and how much is being siphoned off for overhead, let's say, of the organization.
It seems that razoo solves this problem.
It is a wonderful opportunity for donors to give all of their giving on the -- razoo.
At the end of the year, we give you a charitable giving report, which is handy for you as well as the tax man.
People want to keep track of their contributions.
People give because they keep it -- a leading a cause, but it is also helpful to have that tax deduction.
Did people understand right away were you doing?
Or did it take some time?
From a nonprofit perspective, it has taken a little while for nonprofits to become comfortable with online fund raising and giving.
Technology seems a little scary.
But the wonderful thing with razoo is that there's already a page on razoo.
Is easy for them to come in and claim their page and use it very quickly for fund-raising.
The -- it has been easy to get them to give a try.
It is a win-win.
While you are serving and connecting individuals, nonprofits, razoo is for profit.
You are running a business.
I know there is a transaction fee.
What is that?
And at some point with you have to raise that and expand as you grow?
Iac 4.9% for nonprofit raising, 7.9% for individual raising.
The those prices include the credit card processing fee.
I work very hard to release a robust features that, and offer greater value for what is one of the most competitive prices in the marketplace.
Would you ever consider adding advertising to your revenue model?
We are constantly reviewing opportunities from a revenue standpoint.
At the present day, we are focused around transaction processing.
So glad to have you with us.
Thank you for joining us.
We are going to take a break, but when we come back, will introduce you to one of the founders of a fast-growing photo sharing app that allows you to order prints right from your phone.
? welcome back to "money moves" on bloomberg television streaming all day long on your phone and tablet and at bloomberg.com.
If you ever wanted to order a photo right from your phone and get it printed, my next guest's company is it for you.
And he is joining me from san francisco.
I know you came out ofy combinatior.
What was that like and how did they let you get to the next step?
It was a great experience for us.
After that, we went to our demo day and got funded.
How did you distinguish yourself?
How are you continuing to do it?
For example, there are other photo sharing sites, other ordering apps.
Shiller fly comes to mind.
-- shutterfly comes to mind.
We have a very good presence on the web, and as such, we are very divine -- designed focused.
Basically, you have your photo and then again and it is that simple.
It corrects -- you signed up and choose the story -- the store they want it sent to.
You spend 10 minutes and then you can go pick up your photos.
You can also have them meant either -- sent to you.
Workplaces like walgreen's, cbs, where they into it?
Correct they were definitely into it because they saw the advantage of taking photos and then just going out and picking them up.
And they have already invested into these photos centers at these different occasions.
It is good to have people use them.
And e.u. are integrating with social media side as well.
Facebook is just one of them.
The photos on facebook are usually what you want others to see.
Not those that you care deeply about.
Usually, facebook is where you posed photos that you want others to see.
With hours, you take the photos that you care deeply about and use and then to those that you care deeply about.
And then you can print them so your family members have them.
Correct how are you making money?
We make money by photo prints.
It will make money every time somebody sends an order to the retailer.
It seems like your business model is working here, but i know your expanding as well.
India is going to research.
Mexico and canada also.
This trend of wanting to share, wanting to print run away is worldwide.
Correct there are about 300 million people moving to smartphones.
The majority of them use it as their camera.
Itthey will want to take photos and share them and print them.
That is where we come in.
What is the next goal?
Right now, we're working on hard -- we're working hard on getting international support.
Which ones it?
Can you tell us?
Alright, we will not be back when you can.
-- we will have you back when you can't. when we come back, bob's buzzword of the day.
? welcome back.
It time for our daily buzzword -- buzz word, one investment term to improve your alternative vocabulary.
Bob rice is here.
Investors were considering commodities e.t.f.'s must know and master this concept.
What are the basics?
It is very important.
A lot of people assume that a commodity e.t.f. is best seen in the commodity.
It is a reasonable guess.
Especially, because gold does.
But most commodity e.t.f.'s gold.
They invest in futures contracts and not the actual physical spirited as a result, the e.t.f.'s can suffer some dramatic transaction costs, which can even cause losses.
But you're right about the underlying direction of the commodity.
Years ago, you could have people going crazy long and on oil e.t.f. the but it did not work out so well.
It was frustrating.
People would be saying, wait, i was right, how could i be going down?
The and it was the futures roll.
These contracts expire.
The futures have to keep rolling.
The expiration date is coming up and they don't exit want to take possession of a million barrels of oil.
They sell their old contract and take a new one.
The etf is taking a loss, even if the spot those in the correct direction could correct exactly.
If the spot doesn't move or doesn't go up enough, they will take a loss.
The next futures contract is more expensive.
Another thing that happened here a lot, which is a dirty little secret about this, is that when the e.t.f.'s gets very large, everybody knows what date they will have to roll their futures.
If you are a hedge fund manager and you have very nimble capital, you say, this is interesting, i know exactly what this huge player is going to have to do in the market.
And a trade against it.
And a lot of commodities traders baked -- make a living picking off a large commodity e.t.f.'s. if you're a regular person looking to get exposure to the commodity e.t.f. market, you just avoid this because it is so stacked against you?
I think anyone investing in futures contracts, it is not the right way to do it.
You can go to a professional manager who trade commodities and they can do a very good job for you, but assuming the e.t.f. is a magic bullet is probably not a good idea.
And we should point out the position that has seen the most volume -- you mentioned gold.
Silver is not far behind.
The most important thing about gold and silver is that they on the physical.
This is not a problem with the gold and silver e.t.f.'s. it sort of applies to all others.
Thank you very much, bob rights.
-- bob rice.
The to have a suggestion or question that you want bob to answer, go ahead and tweet it to him.
We're right to take a break and be right back . back ? tomorrow, will be joined by the jeff yang of thread.
-- geoff yang of redpiooint ventures.
It also, if you ever wanted to crack your own amazing grace or a scavenger hunt the the for your friend, we will introduce you to the creator 78 pp.
It is fun.
-- to the creators of an app.
It is fun.
It is time for on the markets.
Stocks are rising for a second day of the indices are up in the green.
Better than expected data out this morning to boost the markets.
The economy grew at an annualized at an2.5% in the second quarter.
One stock want to hunt -- highlight at this hour is jpmorgan.
The sec is expanding its investigation of its hiring practices and whether they violated bribery laws in china by hiring them members of government officials.
-- family members of government officials.
What is this spreadsheet in particular?
Is this really a smoking gun?
It possibly could be.
Jpmorgan is undergoing a bet -- an internal investigation and looking at some of the issues that the sec found problematic in its hiring practices in china.
It found an internal spreadsheet to hiring practices.
This is what the attorneys could say is the closest thing they could think of as a quid pro quo type of situation.
Someone tweeted last night that the spread sheets are not working out so well either -- before jpmorgan put no, you never want to leave those out.
What does this mean for them?
It is fair to good business to hire people who have very good connections.
The way it appears to be different is that -- the way it appears to be different is that jpmorgan was tracking this , whether or not it was actually paying off with actual deals.
That seems to be high the problematic.
That is something that their attorneys are probably focused on.
I'm not sure if other companies track it that closely.
Was in paying off?
Cut some of the deals were some of the princelings they hired in china.
They did get some of the business related to those tires.
There is just not enough evidence to say that they got the business because of those tires.
Bottom line, what does this mean for jpmorgan?
How high at this is the accountability go?
Did any of this ever across jpmorgan -- jamie dimon's desk?
We don't know yet.
The we could expect to see some reports on this later.
We just do not know yet.
We do know that it was concentrated mostly in the investment banks.