Just Googling: In The Loop (08/01)

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Aug. 1 (Bloomberg) -- On today's "In The Loop," Betty Liu takes you from the day's breaking headlines straight through to the opening bell, speaking with the most influential guests and asking the smartest questions. It's not noise, it's news. (Source: Bloomberg)

Just google it.

The tech giant and mola roto -- and motorola unveils a new product today.

Fed musical chairs.

Janet yellen, larry summers, and now a third possibility as president obama opens up the contest.

Inside the helmet -- the race to protect your head is filled with the regulatory hurdles.

We will talk to the founder of the guardian cap.

From bloomberg world headquarters in new york, this is "in the loop" with betty liu.

Good morning.

Thursday, august 1. live from bloomberg world headquarters.

I'm alix steel in for betty liu.

We have all the top stories covered for you.

Carlo fu is ready to break down the latest out of big oil -- scarlet fu is ready to break down the latest on big oil.

And alex sherman is here to talk about media and what has been happening outside the great war between cbs and time warner cable.

In your markets correspondent julie hyman is watching auto sales.

We will hear how the deep 3 did last month.

Sara eisen will tell us what to expect from ecb president mario draghi.

He speaks in three minutes.

The word is no news on europe's recovery may actually be good news.

First, let's start with exxon.

Earnings are out for the second quarter.

It looks like a miss, if it is comparable, making $1.55 a share and estimate was $1.90 a share.

Earnings-per-share, $1.55, the consensus was $1.89 or $1.90 . we have to dig deeper to see if they are comparable.

Also looking for the production numbers for the second quarter.

Waiting for the actual release.

I don't have it just yet.

The only number we have to work with is $1.55 but on analyst analyst looking for 4.0 5 million barrels a day.

Margins from processing crude oil into transportation fuels, refining really, that is likely narrowed by 12% in the second quarter.

You will see some pressure as a result.

We can also tell you that exxon had reduced its full-year capital products budget by about 4.5% to $38 billion.

Analysts will be looking about -- looking for any commentary about buyback.

Ubs expected to cut back quarterly pays to $3 billion in the third quarter versus or billion dollars a second quarter.

I will continue to keep my eye on the actual release.

The headline that we have, $1.55 earnings-per-share and the consensus was $1.89, and exxon mobil trading $93.20 a share which is down.

The stock is currently on a six- day losing streak.

Difficult for big oil when they cannot seem to make the money in the u.s. shale boom.

Automakers release among police they best sales data.

We just got numbers from chrysler.

U.s. vehicle -- sales up 11%. julie hyman choices.

It looks a bit like compared to estimate.

Analyst with for a gain of 16% and chrysler came out with 11%. but it is the 40th straight month chrysler has seen the sales gains in the united states and it is now working on a jeep suv that will really determine how it will do going forward.

Those are the numbers we are looking for in chrysler -- for chrysler in particular.

Same-store sales that's used to retail -- we will have all the auto sales numbers rolling out throughout the morning.

We are looking for a rate of 15 point -- 15.8 million, the consensus estimate.

That would keep the u.s. on track for the best year since 16.1 million vehicles were sold back in 2007. if you look at what is driving the sales growth, at least in part it has to do with leasing.

U.s. auto leasing at its highest levels in almost a decade.

The best year since 2000 seven.

Leasing share of u.s. new vehicle sales has been at least 22.5% every month this year, according to jp back -- jd power and associates.

Looks like that factor is still driving things weird -- things here.

Looking for the other news, picking up steam around 9:30 a.m., right around the opening bell.

, we will be looking for that.

And you so much senior markets correspondent julie hyman.

Turning back to earnings, time warner cable reported second- quarter profit that topped analyst estimates by adding 8000 more broadband customers.

Alex sherman tracks the cable world for us and joins us.

You said this week -- beat was not real.

I think the stock will fall off.

Yes, the 8000 number is an ad but time warner cable has been adding broadband prescribers for years and as far as the bloomberg data goes back, this is a lowest quarterly total of broadband addition time warner has had.

That is big because time warner cable loses many video subscribers every quarter and this one is no different.

About 190,000 video subscribers lost.

What do you take away from earning season?

Cbs and comcast doing really well.

Directv and time warner disappointing.

It depends on the company.

Each of these companies is a little different.

Comcast, the largest u.s. video provider, in general, they have done really well.

Operationally they added a lot of customers every quarter.

They limit the video subscribers.

Time warner cable's operations are not that good.

Some of it has to do with who are the competitors but for the most part they have the same competitors.

It really comes down to the operation.

Cbs is sort of on the other side . like nbc, part of comcast.

Those concert companies continue to do well and was earnings.

Is that mean tv is not dead?

Certainly not, especially from the network standpoint.

Doing very well.

On the video provider, you do see losses consistently.

Right now the leverage it seems to still be with the programmers and not operators in terms of boosting fees.

And of course, there is a dynamic between the content providers and operators, cbs and time warner cable.

I we going to get a retransmission agreement friday, the deadline?

You would think.

Whether so many extensions you would think they would be building up to a deal.

Still programming is on the air but it is a microcosm.

Time warner cable is taking a stand saying we can't keep accepting this big programming increases, the increases.

We need to say, no more.

We need to take a stand.

Cbs says we need to get paid with best for content.

If you look at their last quarterly results, they are getting paid.

Driver seat.

Appreciate it.

Alex sherman.

Moving and shaking this hour, secretary of state john kerry who is in pakistan.

He arrived last night in islamabad.

It is his first visit -- the first visit by a u.s. top officials and the prime minister was elected in may.

No crisis in the relationship right now but still the two countries disagree whether pakistan is doing enough to fight terror groups that operate there.

Pakistan is unhappy about u.s. drone strikes that have killed pakistani citizens.

Turning back to the markets, stock futures and bond yields are higher in economic optimism ahead of the isn and jobless claims report despite yesterday's fed statement which was a bit pessimistic.

In europe, ecb president mario draghi left a central -- benchmark rate unchanged.

The real deal on where we go stateside and sara eisen has the headlines from across the pond.

Mike, let's start with you.

Where do we go from here?

Vacation.

Right across the street, this will probably fill up because this was probably the least interesting fed meeting.

Fomc you in september.

Use all the drop in yield after the fed meeting yesterday.

Just three minor tweaks to the statement.

Growth another described as modest and set up moderate.

I guess you could call that a downgrade.

The fed also took note of the rise of mortgage rates, perhaps bracing for a slowdown in some home sales.

Finally, an acknowledgment that inflation can get too low.

Yesterday's gdp report showing core pce, the fed benchmark, up just 0.8% in the second quarter.

The committee recognizes that inflation consistently below two percent objective could pose risks to economic performance.

That warning brought -- bought them jim bowler's vote.

It raises a question, can the fed do anything in september?

Two pci reports before the september 19 meeting.

If inflation does not take up maybe you start thinking we get qe4 longer, which makes the markets happy.

The dreaded disinflation word.

Yesterday we had the positive adp report.

Certainly a possibility.

They have to brace for that.

They have been watching where jobs go.

The adp number leading economist to mark up their forecast aired the caveat, strong job growth usually means -- need to strong gdp growth to endure.

It doesn't set up an interesting meeting tomorrow.

-- it does set up an interesting meeting.

If every thing is in line, people go away for a month but if it is too high or too low you might have to stick around and trade some of the on the numbers between now and in -- and the next fed meeting, or at least labor day.

To europe, sara eisen has a breakdown of the ecb rate decision.

No change on interest rates from mario draghi.

Next is the 8:30 a.m. press conference, and no news from mario draghi may actually be a good thing.

Why?

It means he sees a light at the end of the tunnel.

No need to ramp up extra stimulus or emergency measures, something that has been expected lately as europe tries to work its way through the crisis and its longest recession ever.

And there is reason now for him to be singing singing better things for the european economy.

Manufacturing came in at a faster pace than economists were forecasting in july across the eurozone.

This is the first expansion for manufacturing there in two years.

Business confidence has improved for three months in a row.

He should note that your bank is not out of the road -- out of the woods by any means.

Bottom line, there is enough to be optimistic about four mario draghi to take more of a hands- off approach to the rate decision and the news conference.

It may give investors something to breathe a little bit easier about, that your bank is on the mend.

What do you think mario draghi is actually going to say about the press conference?

He has to be careful to acknowledge the fact europe is looking better.

Growth is not a given in europe.

And mario draghi has already given a bernanke-like forward guidance, saying rates will stay low for an extended period.

Maybe he will elaborate on the timing of that.

And on the overall idea of a communication tool, the forward guidance tools something we saw from the federal reserve as far back as 2003. we also learned the ecb is open to releasing minutes or notes from its council meetings.

That is also very much like the fed.

A signal toward more openness on the part of the central bank.

Perhaps mario draghi can talk about that.

One final thing -- always look for him to mention anything on the exchange rate.

The euro has been growing very strong the past few months.

Above $1.32 and it could hurt the recovery of export driven economies, so perhaps he will say something like that but don't count on it because it would be very market moving.

When it comes to these news conference, the less the market moves, potentially the better.

I know you will be monitoring that.

Fair isaac.

-- sara eisen.

We will see if google's chairman that his moneys worth by motorola's new mobilephone unit.

Russia's president vladimir putin that may be making it tougher for netflix to get a toehold in this country.

And a possible solution to the crisis over head injuries in football, but not everyone is happy about it.

We will talk to the founder of guardian cap.

They "in the loop year ago we are just getting started this thursday morning.

? a big day for google.

The search giant along with motorola mobility scooped up in 2011 has promised to redefine what smartphones can do.

In the last few years the google android has just taken off, surpassing apple's ios.

What you can't think android and not think the samsung.

Google is coming out swimming -- swinging this afternoon with its own phone.

The founder of harpervision already has his eyes on the new phone and jon erlichman is in new york today ready to attend the unveiling.

What can we expect?

This is a hugely important event for google and motorola.

The phone itself is not going to wow you -- is it going to wow you?

Our to say.

There are sensors that can detect where the phone is -- if you are driving, if you got it in your pocket.

It is important because these phones are getting smarter so if you are pulling it out to take a picture and it will predict you are going to do that, it is a very cool thing.

But there is obviously a very established market of people at the high end elected by iphones and galaxy devices.

The fact that motorola is focusing almost a singular focus on one device now, because of the new leadership that is coming from google, it really is changing the story of what motorola is and what motorola becomes.

You have an array of devices.

You have seen the phone, have not touched it.

Do you have any expectations or assumptions of what you might see?

I think we will see a middle-of-the-road phone.

Not a super high-end.

No revolution.

But i think we will see their interesting trends.

What jon erlichman was saying about the sensors third we will know whether it is in the pocket, it will know whether it is in the car.

How does it do that?

Motorola has been known for its battery management and this phone will have multiple processors on it.

It will have a processor running all the time.

Other phones go to sleep and i did.

This phone will always be active.

Much like google glass.

I wear google glass.

It is known and it is -- and it will get information even if it is not actually on right now.

Does look cool with it.

So cool.

One thing we have not talked about is price.

Rice becomes important.

Motorola, he even though it is owned by google, is a stand- alone company.

They've got to make a product they think they can sell well and make money from.

Doesn't mean a lower price point?

Google came ahead with the nexus devices -- look at what we can make an charge very little for?

And basically forced the competition to step up their game.

What motorola, you have a sense they have to price the device at least to start may be around $200, like some of the others, and i think that affects ultimately ultimately the sales.

Samsung sold 10,000 galaxy s4's the first month -- a big number.

If you look at the entire pie, yes, it is really big.

$293 billion , but how much more penetration can we really see?

Question is, why do i want to buy a new phone?

Because it is more fancy and it is customizable?

Does it have super specs?

Or is it something like battery life?

For example, one of the biggest issues is how long the battery lasts.

If they come out with a phone that actually improves on things and run longer on your battery, that would be a reason to upgrade.

Not because it is just fancy and shiny.

I think there is an opportunity in the u.s. but also the rest of the world because motorola is global and there will be another billion people connected to the network through cell phones in the next coming years.

So there is a huge market.

I do not think we have filled it up at all.

Who is going to carry it?

Any indication question mark that is an interesting question.

The buzz has been they want to make it a device a lot of carriers can often.

Motorola, when they were struggling to stay in the game -- and for a lot of its life, with tailored to one carrier.

Like the joy the phones for verizon.

It makes sense because you want to make every carrier happy.

The new motorola, again, focus on one or a couple of devices instead of a bunch of devices that you can make your quarterly numbers, that means that you are going for what you call a hero phone.

You are going for the kind of product that will get people excited to buy the product regardless of the store.

Not about seeing the product in a store window or being shown around verizon or at&t store and seeing something, but having something like the iphone where you say and know the phone i want and i am going to carry it.

It is very important not just for the manufacturers the carriers, too.

They did it with the razor -- razr, it was everywhere and at relatively moderate cost.

These phones all will cost -- they are all $600 500 dollars phones.

By the way, this phone is being made in the u.s. in the old nokia plant in texas -- assembled.

But it will allow to do customizations and things like that.

I think you will have a base phone and be able to add pieces to it.

But at the end of the day, i think i agree with you, there will be a moderately priced phone on multiple carriers.

They may release on one carrier for us but i think the objective is to it across all the carriers.

, we are almost out of time but i want to get your take on what happens next to google.

Where did they go, the spectrum?

Google has attained in a lot of pot.

It, whether tv or anywhere else.

Gregg harper from harpervision, appreciate you stopping by as well.

Second-quarter earnings were kind of blah.

After a year on the job at yahoo!

We will see if marissa mayer is any closer to turning the company around.

And the next generation a presidential helicopters, nothing is easy when it comes to buying military hardware.

We will tell you why the decision has taken years.

That is next on "in the loop." ? you are watching "in the loop " live on bloomberg television and streaming on your phone and bloomberg.com.

I'm alix steel.

Bloomberg television is on the markets.

U.s. stock futures are up this morning.

Will this be the day the s&p hits the $1700 psychological level?

The dow jones is up triple visit -- digit.

The nasdaq is up the most, 3106. some stocks we want to highlight for you in the free market is yelp after the company topped estimates and dreamworks was also up about five percent after the company reported profit jumped 75% last quarter.

We are on the market again in 30 minutes.

There's a look at our top headlines this morning.

No deal yet with cbs.

Time warner cable did report second-quarter profit that topped estimates by adding a thousand more broadband customers.

Weeks to the cable packaging and pricing during the quarter was more revenue per user.

Exxon mobil second-quarter profit fell for the first time in four years as crude oil prices declined along with concerns -- gasoline and oil refining business.

Major u.s. banks may lose business.

That is after the u.s. court ruled the federal reserve limits on debit card fees are just too high.

District judge richard leon i rolled the cap must go lower which would cut into the $15 billion of revenue which is the bank smut bess once read from the fees.

We are standing by to bring you the latest economic numbers, including initial jobless claims.

Economics editor mike mckee will have the real deal for what the numbers mean on the economy.

Chief washington correspondent peter cook is on deadline watching regarding one of the most prestigious defense contracts in the world, the president's new helicopter.

And sara eisen is tracking headlines out of europe where ecb president mario draghi is beginning to address this morning's rate decision.

Peter, let me start with you.

You would think there would be a long line of companies to compete for the job of the president helicopter, but maybe not.

Maybe not.

Anyone who has the contract gets a lot of bragging rights.

The ultimate flying billboard.

The has also been controversy tied to the contract over the past few years.

From the president's first days in office.

You recall the administration canceled the first ever to replace the marine one fleet after the cost ballooned to $13 million.

Here is the president talking about that way back in february 2009. the helicopter i have now seems perfectly adequate to me.

Of course, i never had a helicopter before.

But i think it is an example of the pre-permit process -- procurement process gone amok, and we will have to fix it.

The navy started over and asked for bids for a more modest president a helicopter but instead of the heated competition for this is the just 6.7 billion dollar the incumbent, united technologies sikorsky unit confirms it will bit today.

This is a rendering of the modified version of the s-92 chapter it is proposing to build.

Helicopter is already reduced around the world and the company says it is capable of meeting the unique demands of presidential travel.

Sikorsky, however, is not a lock.

The navy could decide it does not like the particular often there is always a possibility for a last-minute bid.

Why is that?

Nearly $7 billion is a juicy number.

A pretty big number.

Not the biggest defense contract by any means, but a big number and i high-profile contract did not all the bidders have said publicly why they are not bidding.

But generally considered the most likely competitor qwest and the openness of the competition, in a statement that there were fundamental proposal evaluation issues that we think and hit it our ability to submit a competitive offer.

The decision to withdraw was most difficult, as we believe we have the best, most suitable aircraft for the president.

But again, they are not bidding.

Thank you so much, peter cook.

Chief washington correspondent.

Adjust the last minute without the initial jobless claims for last week.

They unexpectedly fell to 326,000, and the estimate was 345,000. however, the real -- the week before was revised slightly higher, to 345,000. a minor reaction positive to the upside.

S&p adding another point to the rally, the futures rally.

The same thing for the dow.

The nasdaq holding pretty steady at about 23 points.

The more on the reaction i want to bring in mike mckee.

What do you make of this?

If you trade on something, might as well trade on good news.

But it comes with the usual caveat in july that these are based on the auto plant shutdowns.

The numbers can be very volatile.

We do not really know what they are actually telling us.

Although we are getting to the end of the time period.

It is very possible this could be more real than some of the earlier july numbers.

We did see a strong adp report yesterday.

Take it with a bit of a grain of salt.

Forward, it does not tell us a lot about what happens in july far as payroll, a later today we will get a number that might help us with that, the ism number.

Manufacturing as opposed to rebound.

Watch in that report the jobs number, employment number.

If it goes up, it would be good news.

Adp said manufacturing lost jobs.

If the ism number shows they gained jobs, it could give more confidence going into the payroll tomorrow.

Good news.

Not particularly meaningful but we will take what we can get.

We are off to mr., we'll take what we can yet.

We will keep jobs in focus when we get they all important unemployment report tomorrow.

Mohamed el-erian and bob benmosche, all starting tomorrow at 8:00 a.m. eastern on "in the loop." mario draghi is speaking at a news conference in frankfurt on the central-bank decision to keep the benchmark rate unchanged.

We will continue to monitor and bring you any headlines as they cross.

Coming up, the fight to save yahoo.

Is marissa mayer the right one for the job?

We will see how she has done after a year as ceo.

Also, netflix wants to expand overseas but russia may actually be a problem.

Vladimir putin may have skipped that may have tipped the scales in favor of some homegrown companies.

? it has been one year since ask google employee marissa mayer snagged the top spot at yahoo.

Her job, to turn around the tech company with a big push monetizing mobile.

Walk should be -- wall street cheered her on.

Stock is up 75% since the restructuring of the c suite.

Despite the investor confidence, is the internet giant it better off than a year ago?

Brad stone has your look at what has changed under her control.

It has been a year since marissa mayer (comfortable perch at google where she was one of the first engineers and joined yahoo, a company everyone at silicon valley basically counted out.

It for years had a talent problem where the best smartest employees were leaving and finding opportunity elsewhere in silicon valley.

The jury is still out on how marissa mayer has done at yahoo over the last year.

The stock is up, but partially off of people's enthusiasm for yahoo!'s stake in ali baba.

One thing orissa meyer is doing is refocusing it on mobile.

-- marissa mayer is refocusing on mobile.

Smartphone as one of the moments to scramble silicon valley higher and turn losers into winners.

She created a mobile group to create well-designed applications around the things that yahoo!

Does best and where it still has a big audience.

Things like yahoo mail and messaging and the flickr photo sharing and the primary news sites.

Yahoo faces a really uphill battle with mobile.

They do not have a lot of assets that a lot of companies like apple and google and amazon have.

They do not have hard well.

-- hardware.

People wonder why marissa mayer would have taken the job.

One of the story she tells is how she almost bought one year ago that she did not get the job.

She says on the night she was opposed to hear from the yahoo board, she had not heard from them.

It was an hour and a half after they were supposed to call.

She describes being disappointed at how she thought she was not going to be able to do some of the things see plan for yahoo.

It is really a sign of how much opportunity she saw in a company that a lot of people in silicon valley really counted out.

To look further at marissa mayer and what she has accomplished that yahoo and what is yet to be done, larry haverty, associate per fully a manager at gamco investors who owns about 2.5 million shares of yahoo stock.

You have owned these shares for a long time.

Why did you do the initial investment question mark we are big believers in ali baba.

The chinese government as a matter of policy want to increase consumption.

It is only 45% of gdp.

I probably need to go to 60% or 65% overtime.

E-commerce has an advantage in china because landline commerce has not developed and ali baba dominates.

I think when they go public early death later on in the year i expect over $100 billion of market cap and 10% more people per year of going on the internet.

It has a number of market share.

It is insanely profitable.

Jerry yang bought the position -- of course, chinese.

He invested about a billion dollars.

The shareholders will have made by the end of the day $35 billion.

Outside that, what do you like about yahoo?

What is going on now in media is very simple.

It is covered by the godzilla movies -- size matters.

John malone -- probably the smartest guy in the room in the media industry.

So that basically in the internet what you have are two monsters.

You have google and facebook.

If you look at how fast internet advertising is going to grow over the next 3-5 years, google and facebook are going to get all the incremental revenue.

Right now if you took the forecast on mobile an annualized what facebook reported in the second quarter, they have 80% share of the forecasted mobile revenue.

There is not a lot at the table for the other people.

Either marisa will figure out a way to get that, get a bigger part of the table, or else everybody else in the industry is going to consolidate.

Because the reality is, the only way to combat facebook and yahoo.

That was my question, can marissa mayer by her way out of this problem of no mobile at display?

She spent $3 billion.

If i were giving her a great, it will be an incomplete grade.

We have not seen revenue.

Apparently the talent situation has improved, as you report indicated.

Ken goldman, the ceo, maintaining the cost, they are in line.

There is plenty of free cash flow.

What we need is the revenue growth.

I am not expecting this and this quarter but by the time the fourth quarter comes around, the seasonably strong quarter, the first quarter -- she spent $3 billion, and i want to give her revenue.

You are giving her nine months?

Nine months from here.

By the internet moves at light speed, so you can make any money standing still, which is what yahoo has been doing for five, six years.

I think the market is going to figure out what is happening much before the nine months.

If it doesn't move on the top line, we are going to see consolidation activity.

Yahoo's cash flow is very -- where it is yahoo fit into the consolidation?

My bet is at the end of the day microsoft, aol, and yahoo are going to get together and become one entity.

I think that is the logical outcome.

Consolidation.

That is the word.

Really appreciated.

Larry haverty from gamco investors.

You can read the old story on marissa mayer's first year at the helm in the latest edition of "bloomberg businessweek" tomorrow.

Coming up, how to keep all players say from devastating hits.

One possible solution has been a bit controversial.

And the best known race in cycling may turn to women to help rescue the drug smeared reputation.

That story coming up.

? our bloomberg big number -- 83,000, how many people signed the petition for women to compete in a race that parallels the tour de france.

The elite race is finally turn to a destiny to women to gain credibility the doping scandal of lance armstrong.

Women have not had a race -- since 1989, but the entrance may boost the cycling industry which is already worth 46 billion dollars.

Another big number related to sports -- vendor bias?

Women racers earn as little as $16,000 a year, around 20 times less than the men.

So unfair.

Football related head injuries from the professional to peewee level has put new safety standards and focus, with more attention being paid on helmets.

One possible solution?

The guardian cap.

One-size-fits-all softshell cover design to fit over helmets and claims to reduce impacts to the head.

After testing the product in both laboratories and on the field, guardian found it absorbs up to 33% of the impact.

35 states currently have schools or leagues using 20 or more guardian caps, however, controversy over whether the caps on violate helmet certification standards is limiting some growth.

Let's bring in lee hanson, owner and founder of guardian cap for more.

First, explain how you got this to work.

It is a simple design.

Comes down to physics.

We are scientists.

We have had a materials science company for over 20 years and we have done work for major corporations.

It is pure physics.

You want to decrease the acceleration rate -- deceleration rate.

Same as automobiles.

Airbags on inside.

On the outside, a nice, soft bumper and crushed stone.

Football, airbags on the outside but a hard bumper on the outside.

Simple physics.

When i was reading the articles and looking at the controversy that maybe they violate helmet standard certifications, worried about next injuries, perhaps the shelves taken together would prevent safety.

How do you refute all of these claims?

Very simple.

We have tested for the last two years -- we presented to the organization our data which shows we meet or exceed the standards out there.

Unfortunately they have not returned our phone calls.

They have not talked to us about it.

And head injuries are so bad, within the industry be scrambling to find a solution that works?

I would certainly hope so.

Being a father myself and who has a son who plays football, i want to limit the liabilities and limit the risk out there.

And do whatever i can for my son.

So, i would think they would embrace innovation.

That is what i think it should be.

I wish that they would just open up and say, bring it on.

The nfl has this new study that they are trying to innovate, trying to get companies to come up with new products.

But then you have the nat se organization -- the statement would also limit putting face shields.

M a meaning it is too broad -- meaning it is too broad.

Any ancillary product that is not oem certified like ridell or rawlings, you cannot put it on.

You cannot put helmet sensors.

How do you grow?

You are in high school.

I know you are trying to diversify into colleges.

How do you get to the nfl and convince people a works?

The nfl is great.

We're interested in protecting children.

There are 5 million children out there playing football.

I am talking 22-year-old children.

There are coaches, athletic trainers, who are looking at this and analyzing it and seeing it and they are putting it on players and they are seeing the positive results.

Clint haggard from university of south carolina, jim broder from the university of massachusetts, andy lowery from columbine high school in colorado.

They see what it is doing.

The parents appreciate it.

And they are seeing the positive results.

Basically you get a few people going and then the risk will follow.

If you look at your results, 33% is not necessarily concussion proof, right?

Will there be whiplash issues in the neck because there are is so much padding in the head?

, let me say, we cannot defend concussion.

We can limit the risk and reduce the impact out there.

-- let me say, we cannot eliminate concussions.

We can limit the risk.

It is a soft shell -- it has a lower coefficient of friction then parlay carbonate shells.

It is only hoped on with the last dance.

It moves with the force and the helmet does not.

We have actually taken it all into account when designing it.

Thank you very much.

Lee hanson, owner and founder of guardian cap.

Coming up, he refused to negotiate or coming up with a deal.

Sounds like we are close to an announcement about the drug investigation of a-rod.

And they hit series "breaking bad" needed help to stay on the air about her couple of seasons.

The secret weapon.

That is next on "in the loop." ? time for this versus that.

Today russia policy -- russia's president trying to get companies and had started to netflix.

Q and signed a law making it harder for russian websites to host pirated copies of movies or tv shows.

The goal is to turn russia into the next hot market for online video.

And legal streaming services in russia may cash in.

That is netflix, which wants to be a global video provided.

It has has not announced plans for russia yet.

Last year russia generated only $75 million in revenue from streaming video, compared to more than 4 billion in the u.s.. the new russian law making companies they're a head start over netflix is netflix does not get in the game soon.

Meaningful -- meanwhile, if one's allies in may want to call the creator of "breaking bad" which is in its fifth and final season but vince gilligan said it would have not come this far if it had not been for netflix and other video services.

He spoke with jon erlichman.

Netflix has been crucial.

Netflix and itunes -- or the itunes store, any of these on- demand services that have allowed people to catch up with "breaking bad" which is a very hyper serialized show.

This video on demand technology really -- i don't think it is a stretch to say "breaking bad" might have been canceled if not for this vod technology that exists now that allows people to catch up third actually interested in watching "breaking bad" myself.

For the full interview with gilligan, had to bloomberg.com /tv and you can stream it on your tablet, phone, and any windows phone as well.

56 after the hour, which means bloomberg television is on the markets.

Futures are up in the premarket.

Jobless claims were out early this morning, hitting the lowest level in more than five years.

Some names we are watching in the premarket, cbs saw profit rise 11% on pay tv fees and streaming agreement.

Also moving, jp jet -- jcpenney, falling after a group says it is ending funding to some of the suppliers.

The company was cut by citi to a cell.

Eminem, facebook seems to have figured out mobile advertising.

Now mark zuckerberg wants to break tvs long-standing dominance over at budget.

You are watching "in the loop" live on bloomberg television, streaming on your tablet and bloomberg.com.

? 30 minutes to the opening bell.

Will come back.

You're in the loop.

Mario draghi is speaking right now after leaving the european central bank unchanged.

Exxon mobil second-quarter profits, oil prices declined.

Could there be a third horse in the race for chairman of the federal reserve?

Let's get our markets desk for the countdown.

Julie hyman will kick it off.

J.c. penney is on the move, rebounding on a report that lender cit group has stopped spending jcpenney's suppliers.

The chain says that report was false and says it has ample liquidity.

I have my eye on dreamworks, the independent film study -- studio.

Shares are up.

Shares of yelpers surging in premarket trades.

The company topping sales estimates thanks to strong growth.

Let's go over to washington, where everyone is on fed watch.

President obama has expanded the race for the next federal chairman.

Hans nichols has been tracking development.

How can we get this third name into the mix?

The president mentioned it in a meeting to congressional lawmakers.

We had two significant developments.

Obama defended summers from attacks coming from his own party.

He came out in defense of summers.

The emergence of: -- kohn.

Is he a serious candidate, or is he being talked about to take pressure off of the two-person race?

He was a bernanke advisor during the financial crisis.

Bank of england financial policy member, spent 40 years at the fed.

He was greenspan's right-hand man.

This could be more about creating space for obama to make a decision.

I assume what that means is the president advisers are doing what they should do, and that is give the president several options to consider.

It's a very important choice and you need to consider the options available.

That was laura tyson, talking about the internal dynamic inside the white house.

There is a sense that this is becoming a two-person race, and they wanted to stop that.

The president also said he's not going to make a decision until this fall, and he is weeks away.

There seems to be a sense that this is getting out of control, and it was larry summers v each nal and.

Now the president -- janet yellen.

Now the president may have some room.

New york yankees multibillion problem, alex rodriguez.

Major league baseball officials have warned the 37-year-old slugger they can ban him from baseball for life over his involvement with the florida clinic that supplied performance enhancing drugs according to espn.

A-rod's attorney says he push back against any suspension, knowing the yankees still owe a rod 114 million dollars over the next five years whether or not he returns to the field.

A big day for google, the search dialog.

Android is now synonymous with samsung.

Google wants to change that, unveiling its own phone, moto x. john, i want to break down what it means for google and what it means for motorola and who is more at stake here.

This is a hugely important event.

If you think about how the company has changed since google acquired this business, 12 and a half billion dollars, this company used to be watching all sorts of phones at the same time.

Here is a singular product it hopes will be used in the same breath as the iphone and samsung galaxy phone, what they call an industry hero phone.

I don't know if whistles are going to make it a hero phone that they hope it to be.

Sensors to detect where you are could be pretty cool.

But the marketing behind this phone, which has been reported at more than half $1 billion, they may change the four -- smartphone story.

It seems that google wants to keep eyeballs on their internet at all times.

For everything google is doing, it does come back to the google services they have and the advertising revenue they can make.

And also keeping the android partners on their toes, to be making phones that are great and represent the android brand using the most recent versions of android.

That is what motorola can be in a lot of ways to google.

Samsung has tested its own operating system, to.

That would be so cool and so on like everything else out there and totally revolutionary.

If he could tell me which teams are going to win sporting events -- i could make some good money from that.

I don't know if we're there just yet.

Not quite.

Staying intact for the third time, a charm for michael dell?

Shareholders will be back in texas this friday, potentially voting on michael dell's offered to buy the company.

His carl icahn licking his lips, as it looks like dell may become an easier target for him?

Joining me is cristina alesci.

Everyone wants to know what is next for dell.

What do you think will happen on friday?

Another 11th hour deal.

I'm going to head to austin to see what happens at the shareholder vote.

Michael dell and silver lake have to decide whether to accept the special counter committees proposal.

It resets the record date for shareholders for that extra $.10 . if they cannot reach an agreement, this goes to a vote and likely fails.

In the meantime, real question marks over the business.

We have seen pc shipments fall over the last six quarters, pretty brutal data there.

Carl icahn telling shareholders not to pay attention, and especially not to pay attention to dell's results because management has been slashing prices . he wants to fire michael dell and bring in new management that he thinks could propel the company forward.

Icanhn, is there any chance we see the special meeting at his demand?

An annual meeting has to take place 13 months after the last one according to the company's bylaws.

Silver lake ifsilver lake -- if silver lake and michael dell reach an 11th hour deal, they have to push the voting back.

That is when carl icahn can propose his slate of directors.

There is a real shot he can pull this off, which would be a tremendous coup for him.

I know you will be all over that story tomorrow.

Thanks so much.

More people are on facebook.

We are continuing to watch facebook.

Shares have risen more than 30%, fueled impressive second-quarter earnings and news that it planned to sell tv style commercials to advertisers for as much as $2.5 million a day.

A partner at the silva and phillips is joining us.

What do you make of this?

What is the potential revenue maker for facebook?

They cap 100 million viewers -- capture 100 million viewers.

Doesn't matter how long people are staying on their?

It's more what you tune into and the fact you are seeing it.

They want tv to be the president instead of cpm's, which is an enormous stride forward for video advertising online.

Can you give us a perspective on the billions you could make on a tv ad versus an internet ad for facebook?

Online spending is still a couple percent of the overall media buying that all the advertisers do versus the time spent online towards tv these days, especially in this prime teen audience, and especially during the daytime.

He can take the model of these branding-based ads and apply that to mobile desktop viewing, then they could escalate the online spending beyond tv and cable ever got.

Networks should be pretty nervous.

Yes, and it can solve a lot of their problems.

Doing some work along with facebook to reinforce the advertisements that are getting skipped is actually a great strategy for the networks, to think about is to screen strategy instead of putting all their exit in one basket.

The data you keep referring to is nielsen data, 51% of users are on facebook during those prime hours.

But nielsen will take that data and apply it to other companies, maybe twitter or social networking sites.

Facebook will be a lot of competition for those eyeballs.

Facebook is seeing competition from google and twitter, but facebook has this extraordinarily integrated understanding of its audience.

Its audience does not just go on and look at tweets.

Its audience communicates with its friends, its audience looks at news, friends, companies.

That is why facebook is a really big advantage over google, where people do disparate activities.

On twitter, they're doing mass communication but not integrating it into their daily lives.

Will we see an instance of streaming tv on facebook so you can watch tv while chatting with your friends?

I don't think they need to go in that direction.

They're looking at, how do we take our masses of data and the way people are consuming facebook is increasingly in mobile.

Mobile is not a sit and stare at your tv experience.

They're doing 15 second video ads in mobile, not longform entertainment.

Understanding the consumption pattern for facebook is different than that of entertainment tv is a really important insights for them.

If they can keep their eye on that they will be far ahead of the game.

What are the risks with facebook?

Very few.

They have untapped opportunities to compensate for flaws.

There are risks in terms of privacy.

There is precedent for leading sites to lose their audience.

Right now, 5% at news feeds is advertising.

It risky to go higher than that.

What about the fact we have seen zuckerberg push back the start of the commercials?

It is really about the untapped opportunities.

It has to happen at some point?

There's so much that has happened happened.

Mobile has gone from zero percent to 40% in one year.

He has to be careful to not alienate his audience.

That is a far bigger risk for him than delaying by a month and making sure he's got it right.

Thank you so much.

We appreciate it.

We have breaking news for you.

Vehicle sales for july, senior markets correspondent julie hyman joins us now.

It looks like a chrysler story.

Sales up 11%. ford sales up 11% last month for the u.s. that trails 17% analysts estimated here.

Chrysler, its sales of 11%, trailing the 16% estimate.

We will see how sales overall shakeout.

We've had two disappointments from two of the big automakers, notwithstanding that sales expected to come in at 15.8 million, which would put us on pace to have the nayar -- highest number of vehicle sales . the next one up would be general motors, which should happen around 10:00 a.m.. thank you, julie hyman.

We will be checking those sales as well.

We will be back in just teed up minutes.

? we are eight minutes from the opening bell.

Senior markets correspondent julie hyman is here.

Netflix will offer personalized profiles of its video streaming service.

Family members can catalog the shows they watch and receive recommendations.

This marks the latest effort by netflix to cement its subscriber base as competition in that market increases.

Investors are hungry for consumer oriented investment.

The farmers market priced its initial public offering above the marketed range.

The company and existing owners sold 18.5 million shares for $18 apiece.

American tower, and operate of cell phone antennas may be poised for share buybacks or mergers and acquisitions.

So says raymond james, who boosted that stock to a strong buy.

? welcome back.

I'm alix steel come in for betty liu.

Bloomberg television is on the market.

Olivia sterns has latest on futures.

Futures are trading right now.

The market got a bit of a boost after he got better than expected numbers on u.s. jobless claims coming out earlier this morning.

All of the benchmarks trading higher.

S&p gaining the most.

Those jobless claims numbers showing u.s. jobless claims at their lowest level in five years.

We saw a markets trading europe and asia overnight.

Better-than-expected data on manufacturing in both those regions.

The focus for investors is, we're expected to get our our own numbers on u.s. manufacturing at 10:00 a.m. let's count down to the open with the top 10, the trades you need to know about today.

Olivia stays with us and julie hyman joins in.

Let's start with barrick gold , took a major second quarter hit as gold prices fell.

The precious metal has seen its steepest decline in nine decades.

Dish broadcast satellite subscribers in 36 markets were blocked from watching some local channels.

After dish pasta retransmission agreement with raycom media expired, viewers will wait as the companies are still hammering out a deal.

Number eight, time warner cable.

The company reported second- quarter sales that missed analysts estimate.

Those shares have been declining.

The company boosted its share buyback program, but counterbalanced by that number.

Increased competition from organic food sellers caused the change to lower its annual sales forecast, whole foods.

You don't want to miss whole foods for 30 minutes on "market makers." yelp is number six.

Analysts are optimistic with at least three firms raising their ratings.

Number five is sandisk.

Returning cash back to investors, initiating a dividend of 22 and a half cents.

It boosted its stock buyback program by $2.5 billion.

So far this year, sandisk's market value is up by more than 25%. number four, sony.

Experts are benefiting from a weaker yen.

Number three, chesapeake energy.

Second-quarter profit fell from a year earlier but still came in ahead of estimates.

It is facing less pressure.

Exxon mobil, shares of the largest company in the world stumbling ahead of the opening bell after second-quarter profits fell for the first time in four years.

Number one stock of the day, google.

The internet behemoth unveiling its first smart phone.

Using its dominance of the software market to go head to head with samsung and apple, the current leaders to control nearly half of the smart phone market combined.

There is the opening bell.

Joining us from chicago, the owner of can i capital management.

Is this the day?

You are getting leadership from where you need to.

The nasdaq continues to surge.

There is something i want to give a moment of pause here.

I really don't like the action in treasuries.

When the fed talked about tapering, the bonds sold off, then the fed came out and said, everything is fine.

The bond market recovered, but now we are testing those lows that we saw when the first talk of tapering came out.

Investors need to be concerned here.

Treasuries are returned free risk.

Just to get a little more precise here, you think that the increase -- over the longer term , still presents a risk for stocks?

Sure.

It risks slowing the housing market down.

I've gotten very good contacts in the mortgage business who said this last spike in rates, applications pull back.

That is natural.

Potential house buyers might say, i will wait for rates to go back down before i enter the market.

They should not wait.

Watch the bond market.

If the bond market continues its weakness, the s&p, you may see a pullback that is a long time coming.

We appreciate that, owner of kenai capital management.

It's time for the call on the markets.

We will bring in pat dorsey.

He oversees $950 million in assets.

His call, growth is cheap.

Look for emerging markets like china for upside potential.

There is a lot of concern that china will miss at 7.5% growth target.

Where you convinced that she means good -- why are you convinced that she means good?

-- cheap means good?

There is no question emerging will grow slower over the last decade than it has in the past decade but it will grow 2% to three percent faster than developed markets.

A lot of this concern over china is a bit of a tempest in a teapot because even if they hit seven percent growth, that is faster than europe and the u.s. where in china would you be looking to buy?

I would not be looking at -- looking at emerging markets more generally.

China, for most investors, the better play or company to benefit from china, given the concerns of corporate governance, the issues of beijing often interfering with individual businesses and the fact that your biggest companies are the state owned entities.

I know you're looking at brookfield asset management.

Right.

It is canada's biggest manager of alternative assets.

The company recently raised for about four dollars to buy commercial real estate around the globe.

What you're looking at is a chart of brookfield, versus the s&p 500 real estate index.

An index of real estate.

It has outperformed the index for year to date.

It is about double what we have seen for real estate.

There is concern that higher rates are going to slow down returns we have seen for some of these real estate companies.

What do you think about that?

How does that affect the brookfield?

The most important thing to realize is brookfield is far more than real estate.

People know it because of its ownership of world financial center in new york city, but they're one of the largest owners of infrastructure globally.

Toll roads, ports, whole host of what we call real assets.

The key was brookfield right now is that at $37 per share, you're basically buying their own investment book of infrastructure around the globe at nav paying them nothing, and you are getting their asset management business, because they managed $24 billion of outside capital, for nothing.

For a business that has compounded over 40% -- 14%, that is a steal.

You are looking at apple.

It has been bleeding market share this past year, now has only 14% of the global market.

Its product range is aging.

Apple has not put out new versions of the iphone or ipad since last year.

That has taken a heavy toll on the stock, which is off 34% year to date, well off the high back in september.

There were some pretty negative stats there.

In terms of not having that revolutionary sexy products, where will that growth come from?

Growth is slowed.

But 10 times earnings, i don't think you are paying for a lot of growth.

You're getting a pretty good business with 40% returns on capital.

This analysis of lost market share -- a lot of new smartphone buyers are graduating towards the -- gravitating towards the android user system.

Paper are really not switching from the ios to android.

When you have that loyal user base you can value them as an annuity stream.

At 10 times earnings, you're buying the current user base at a reasonable multiple and getting future growth because china mobile does not sell the iphone yet.

That is likely to come in the next year.

I have two times more users than at&t and verizon combined, a pretty good option -- they have two times more users than at&t and verizon combined, a pretty good option.

Thanks so much for joining us.

We want to update you, the s&p historic move here, breaking above the 1700 level for the first time ever.

We closed a very powerful july for the s&p, up about 5%. now the s&p is up over 1700. it is a psychological level that many traders are watching.

Coming up, procter & gamble, fourth-quarter profit beat.

Does it mean that the ceo's turnaround plan is working?

Thousands of fast food workers across the country are striking for higher wages.

Don't miss exclusive comments from the ceo of mcdonald's. ? s markets correspondent julie hyman is here to break down the earnings and the company's strategy for procter & gamble.

If you look at how the stock is doing today -- let's talk about the numbers.

We haven't beat in all three categories, whether you are looking at sales.

Net income fell 48%. you still have earnings that beat estimates.

The company coming out with a profit growth forecast for all the full-year.

Lastly came back to the company in may, after tammy years since departing at -- bama -- four years since departing it.

Mcdonald's left at that time.

Some investors thought perhaps he was too timid with the direction he was taking in the company and they brought back in lasley, who is known for bolder moves.

Now we get these numbers that give lastly breathing room in terms of his future endeavors -- lafley breathing room in terms of his future endeavors.

What is in the options plate?

What he has done is streamlined png . if you talk to various investors and analysts, they say you could potentially see a spinoff.

You could see management changing.

It is not clear what is going to happen.

Our bloomberg news reporters talk to an analyst to track.

And he says, it is not seen a major recess in the numbers here.

It could mean lafley is confident in the direction the business is going, but it is too early being the other option.

The numbers today perhaps give him breathing room.

Senior markets correspondent julie hyman.

Last week betty liu took us inside mcdonald's for an exclusive look at the company.

An interview with ceo thanh -- don thompson.

Thousands of workers across the country have staged one-day strikes, calling attention to their demands for $15 an hour wage.

That is twice what many of them are making right now.

Some of the strikers may push city council to enact so-called living wages.

Here is what the ceo of mcdonald's told betty.

We have always provided opportunity.

For us at mcdonald's, whatever legislation comes, those will come, our franchisees, our system will abide by those legislations.

We're about providing opportunity.

Watch the entire interview at bloomberg.com/tv.

You can watch it on your tablet, your phone, and andy when he posed -- any windows phone.

Getting an mba from harvard is not what it used to be.

According to preliminary figures from the school, the median salary for 2013 graduates is about $5,000 lower than it was a year ago.

That is not to say harvard mbas are going through hard times.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change