This is mark crumpton, and this is "bottom line." tonight admitted leaker snowden says he wants asylum in russia.
An exclusive interview with hank greenberg.
We'll take you inside a high-tech parking garage run entirely by robots.
[captioning made possible by bloomberg television] to our viewers here in the united states and those of us from around the world, welcome.
We have full coverage of the stocks and stories making headlines tonight.
Su keenan wraps up the market week and focuses on bank earnings.
Olivia stearns has highlights of her exclusive interview with hank greenberg.
Phil is in washington with the latest on edward snowden and changes at the department of homeland security.
But first, breaking news on this friday night.
Let's look at billionaire investor carl icahn's bid for personal computermaker dell.
They are reviewing a fifth proposal from icon and they are still willing to talk to him icahn has been trying to scuttle a buyout from the chief executive dell and silver management on july 18. we will continue to follow this story and we will have more on monday, including a specialty focus on "street smart." now to our other top story.
Phil mattingly is in the washington bureau with late developments on n.s.a. leaker edward snowden.
Good evening, mark.
President barack obama tonight personally spoke with the russian president, putin, and one issue stuck out -- that issue is edward snowden.
Snowden today in moscow told human rights activists he planned on seeking temporary asylum in russia.
This has put more pressure on the administration that is already facing calls on capitol hill for changes to its intelligence collection programs.
This is something a senator told bloomberg's peter cook may happen in the weeks ahead -- i do think that it ought to be possible in the days ahead, particularly as we look at sensible reforms of the patriot act, i think they will be bipartisan.
And for example, we take steps to make changes in the bulk collection of phone records on millions and millions of americans who have nothing to do with terror.
Now, widen, in that interview that will air on sunday, made clear that he believed lawmakers, not snowden, should have been the ones to start this debate.
Now that it's out in the open he's pushing for changes.
Phil, how is the obama administration reacting to today's events?
Is there any hope at this point they'll figure out a way to return edward snowden to the united states?
Well, mark, officials from the state department, the white house, their rhetoric is becoming sharper and sharper by the day.
They're very, very frustrated with edward snowden.
Obviously there's a lot of pressure on the latin american countries that he's sought asylum from and from russia.
They're hoping law enforcement avenues can clear the way, but right now it's anybody's guess.
Phil, as the snowden situation continues, it's a thorn in the u.s. government's side.
President obama lost a key advisor today.
What more can you tell us about the resignation of janet napolitano?
That's right, mark.
She announced today -- she's been one of the key advisors on national security issues, immigration.
She announced she will be leaving the administration to join the university of california's university system.
She'll become their president.
This is a big loss for the obama administration.
She came in the day after obama was sworn in in 2009. shegs's known as one of his favorite advisors and has been at the core of all of the major debates.
She is expected to depart in september.
Phil mattingly joining us from washington tonight.
Phil, thank you.
Next week we'll have more on the changes at homeland security and on n.s.a. leaker edward snowden.
I'll be joined by tara, a research fellow in the national securities studies program at the new america foundation.
That's coming up monday on "bottom line." now to the global economy.
Fitch is now the latest agency to strip france of its top tier rating.
The agency cited concern over the country's lack of growth and a buildup of debt in europe's second largest economy.
While the outlook is stable, fitch says budget risks, quoting here, "lie mainly to the downside due to the ongoing eurozone crisis." for more, let's bring in bloomberg's olivia stearns.
She conducted an exclusive interview today.
You sat down with the former a.i.g. c.e.o. hank greenberg.
He started with china.
He knows the country well.
He's actually going to be there this weekend.
What did he have to say about this trip?
It was a really exciting interview.
We got a 30-minute exclusive sit-down interview here in manhattan.
There are few foreign businessmen who know china as well as greenberg.
He's been operating there since 1975. and few american executives really have the ear of the chinese leadership like hank greenberg does.
As he jets off to china this weekend 88 years old and still globetrotting, i began the interview by asking him how he thinks the chinese economy needs to be reformed.
China's got to become more of a consumer market, not an export market.
So how do you do that?
There are all kinds of plans.
They want to move the next decade about 600 million people from the countryside to the cities.
You have to build new cities.
That's going to take place over 10 or more years.
You have to create jobs for them so they create some free trade zones to attract foreign investment.
And these are dramatic changes you're talking about.
As you say, 600 million people moving into urban environments.
That's a lot of social impact.
Do the leaders you speak to express any concern that they might not have the political support to enact all these changes or that we're going to see social unrest in china?
Social unrest is the one thing that china is worried about more than anything else.
Worried about more than anything else?
Social stability is the highest priority.
So greenberg says that social instability is really what worries the chinese administration most, but, mark, he also expressed faith to me in the chinese leadership and he says he feels they recognize that the fastest route to instability is surely economic mismanagement.
What about the u.s., speaking of economic mismanagement, a lot of people say so.
What's his impression about the economic recovery?
The word he kept using with me was "soft." he thinks the u.s. economy is soft.
He thinks the recovery is soft.
He sees signs of improvement, but things could be going better.
He thinks unemployment is still too high.
He's happy to see a recovery in the housing market, but he says it is not broad-based.
He thinks it's spotty based from region to region.
He says he's also happy to see that some manufacturing is coming back to the united states.
One thing i found particularly interesting is that he thinks low rates are here to stay.
We've seen a rapid run-up in interest rates.
Last time i spoke with him was two weeks ago.
He thinks ben bernanke went a long way wednesday to clarify the situation, so he's happy to see the slight correction we've seen in the past couple of days.
You also spoke to him about health care.
What does he think that the united states should be doing right now to reform the healthcare system?
Well, perhaps not surprisingly he thinks government needs to get out of the way.
What we spoke about was this fundamental dilemma, really, in health care in the u.s. the u.s. is spending more money than any other country on health care, yet we are failing to produce the best outcome.
Here's what hank had to say about what he thinks should be done -- you can't have a government try to regulate health care.
They just create distortions.
Let the marketplace do it.
I mean, let competition do that . why we have government intruding in that -- so what are your thoughts?
Will obama care work?
I don't think association i do not think so.
It's going to cause more distortion.
We're going to weaken our healthcare system.
Do you think all americans should be entitled to free health care?
not all americans.
You know, mark, i also asked him as an insurance guy, he knows better than anyone what it takes for somebody to actually sign up to a new insurance policy.
Does he think these state health exchanges are going to work?
And he was pretty adamant they are going to be a failure, in his opinion.
Olivia, thanks so much.
Coming up, banks are raking in profits.
What do positive earnings from jpmorgan and wells fargo mean for the overall banking industry?
? welcome back.
This is bockline on bloomberg television.
Let's show you how the equity markets finished for friday, july 12, 2013. stocks rose for a seventh day, sending the s&p 500 to another record close, as person than estimated bank earnings overshadowed a reduced profit forecast from united parcel service.
The s&p 500 index was up five points.
The dow jones industrial was up three points and the nasdaq was up 21 points, .6 percent.
We go to bloomberg's su keenan for the details.
Bill rally in the regular session and excitements after the bell, as a deal comes together in the wireless industry.
We've seen a flurry of these deals of late, this one at&t, the second largest wireless carrier, agreeing to buy leap wireless for $15 a share, giving the company five million new customers, more airwaves and a piece of the pay-as-you-go market.
The real payoff comes for shareholders.
Check it out.
Leap has doubled in price on the news in extended trading, more than doubled.
And the biggest shareholder benefiting right now, m.r.h. fund with almost 30% stake.
Paulson and blackrock have close to a 10% stake each.
A group of media companies called off their sale of the video streaming service and instead investing $750 million in the company.
We believe that by attracting great people, continuing to attract great people, hulu has attracted great people, and make sure we have great technology, a user-friendly interface, this thing could really turn out to be something big.
Could turn out to be big.
Apparently they think the future is so bright for hulu they're deciding to keep the company, and iger sees aggressive growth ahead.
One of the stocks you might wished you owned today, revenue and profit will be higher than previously forecast.
U.p.s., we talked about that, down 6%, dropping the most since 2010. the world's biggest package delivery company cutting its 2013 earnings forecast.
Su, we mentioned the banking rally.
What's the story there?
All about earnings.
Wells fargo reported earnings that topped estimates and financial stocks became one of the biggest gaining groups of the day.
J.p. morgan chase a slightly different story.
Jamie dimon warns investors that it could lead to a dramatic reduction in the banks's profits.
Shares fell roughly 1/3 of a percent.
Citigroup earnings on monday, goldman on tuesday, so more ahead, mark?
Su keenan, thank you.
J.p. morgan chase and wells fargo kicked off earnings seasons for banks.
Second-quarter profits beat analysts' estimates.
What does it say about the health of the banking system?
I'm joined by a professor of finance and economics at stanford university's graduate school of business.
She's also the author of" banker's new clothes.
What's wrong with banking and what to do about it." welcome to "bottom line." thank you for joining us tonight.
Thank you, mark, for having me.
Recent appearance on bloomberg surveillance.
You were talking to my colleagues.
You said the bank being crisis is, in your words, very likely to repeat because the industry is, again your words, "unhealthy and inefficient." how so?
One of the things that's wrong with this industry that we explain a lot in the book is there is just too much risk that comes from too much borrowing, from too much leverage.
So this celebration of earnings -- one of the effects of leverage is that it magnifies.
A little return becomes very big, or big earnings per share, and that can really fool you, lull you into thinking everything is great, without remembering how much risk was taken to generate that.
So in 2006 they also looked good and the problem is what's the risk in there and are we going to discover it too late.
I'm sorry to kind of break in the party, but i am concerned about the banks, very concerned.
It's not just inefficient, it's dangerous, too.
Well, doctor, what do all the recent bank earnings, then, say about the banking industry as a whole?
It's ok for now.
That, you know, we are doing ok.
We are not in a crisis.
When you drive a car at 120 miles an hour, you also could be ok for a while.
Doctor, are banks corporations?
If so, what should their business model be?
Ah, excellent question you asked.
Sometimes it appears that their business is just to generate return.
Usually we teach in finance that just taking risk or just borrowing is not a business model.
You have to actually do something that other people couldn't do by themselves, which goes beyond extracting subsidies from the taxpayers and making returns on the backs of others.
So the business model should be to make, for example, business loans.
This is where we really can use banks.
Otherwise we can have lots of hedge funds doing trading and derivatives and other things.
There's no particular need for the same institutions to do all these things.
But the business model should be to provide services to depositors.
We do need an efficient banking system, credit and also payment system, and all of that is something the economy really, really needs very badly, and that should be the business model, credit worthiness especially.
What do you think of the new capital standards, the bank capital rules in the united states?
Do they go far enough?
Not at all.
They are all still missing a digit by my book of total -- against total assets.
Defined properly, of course, there's a whole issue about the details of how you measure the denominator.
But i don't like risk weight, as you know, an i think leverage is not at all in the right range.
So i'm happy that they go beyond the ridiculous and outrageously low 3%. there's absolutely no justification for it.
None at all.
Well, what would the u.s. and the e.u. have to do in the way of bank capital requirements to satisfy you?
Well, we're going to have to go to certainly multi-digit numbers of leverage, you know, instead of the 5% or 6%. i would go more like 15%. in our book we recommend 20% to 30%. i know it causes people to just freak out, but there's absolutely nothing wrong with it.
That's pretty normal for companies and it's not healthy to really operate in a different level.
There's absolutely nothing about banking that requires this kind of leverage.
They can do everything at the appropriate prices if they have much, much less speed, much less leverage.
Doctor, a bipartisan group of senators has introduced a bill that would re-create the act, the measure that separated commercial and investment banking.
Did the repeal of that contribute to the financial crisis, and would restructuring it be enough to drive a stake through the heart of too big to fail?
Not unless more is done for sure, because, look, in the history of banking there has been a lot of crises that were not about investment banks and derivatives.
Cypress and spain was not about that and the sangse h-savings and loan was not about that.
In addition, even outside the commercial bank, lehman brothers and bear stearns and a.i.g., none of them were deposit-taking institutions.
So the risk can come from non-deposit-taking institutions.
Deposit-taking institutions can take risks in mortgages and other places, that if they can't absorb they can all fail and cause a lot of damage.
So it's not going to be enough to split the functions, even though it could be useful to structure the regulation around it.
But it certainly is not going to solve the key problems if that's all that we do.
We have about 30 seconds left.
Why, in your opinion, have previous attempts to revive glass-stiegal failed?
Well, it's hard to do, actually, and that's probably the key reason.
There is a lot of interconnectedness that's hard to really address.
To make it work they have to oltalize.
We have to do something better we're already doing, so that's the beauty of that as well.
She's the professor of finance and economics at stanford university's graduate school of business joining us this evening on "bottom line." doctor, thank you so much for your time tonight.
It's been a pleasure.
Thank you very much for having me.
Up next -- the job market.
It's pretty tough, and finding the right job can be difficult.
Just ask former treasury secretary larry summers.
Is he looking to replace a certain fed chairman?
Find out after the break.
? there's a job opening coming up at the fed.
According to people familiar with the matter, former treasury secretary larry summers is signaling he's interested.
White house correspondent hans nichols broke the story.
He has the details from washington.
summers has expressed his interests in the job to some of the president's top wall street donors.
That's according to two people familiar with the matter.
At the same time he is staying in touch with senators who may or may not be voting on his confirmation.
Summers' outreach comes as the obama administration is starting to focus on just who will replace ben bernanke.
In addition to summers, the vice chair on the fed, roger ferguson, also a former vice chair, are in the mix there and being considered.
Obama and summers have a history.
The president knows the former treasury secretary first from his campaign and then even better after he picked summers to be his n.e.c. chairman.
Summers was also president of harvard, a position he resigned from amid controversy about comments he made about women and their ability at math and science.
The president will be looking for a candidate who will be confirmable by the senate, who can build consensus on the fomc and who can speak with clarity about current and future market conditions.
Summers at least meets the last criteria.
And while he may be able to find consensus on the committee , his confirmability is an open question, which is why it might be a good idea to drop in on those senators who may or may not be his allies.
Back to you.
This week on political capital with al hunt, congressman trey goudy of south carolina, the chairman of the immigration and border security subcommittee says he expects a house version of the immigration bill to reach the floor by august.
He voiced optimism a deal could be reached by the end of the year.
However, he says he's ready to walk away from a deal.
So i think we should do something.
I also think that we should be prepared to walk away at some point if our principles are not being honored and not being followed.
But i don't think you go into it assuming that, the worst-case scenario, therefore, i'm not going to even go to the dance.
You can see the entire interview with south carolina quongman trey gowdy tonight at 9:00 p.m. only on bloomberg.
We'll talk politics and the future of the republican party on monday.
We'll have highlights of my interview with former new jersey government christine todd whitman, now the co-share of the chase energy coalition, but offered up her opinions about what the republican party needs to do to move forward.
That interview monday night right here on "bottom line." up next -- we'll look at the relationship of the u.s. dollar and the price of oil in this week's "bloomberg u." later, we'll tale you about a made-for-tv flick that puts a capital b in b movies and turns out to be a disaster movie gone horribly right.
? l welcome back to the second half-hour of "bottom line" on bloomberg television.
I'm mark crumpton.
Thanks for staying with us.
Let's check with the markets finished today, as we hit the bottom of the hour on this friday, july 12, 2013. another record-setting day on wall street, but just barely.
After spending most of the day flat or down, stocks rallied at the last minutes and closed slightly higher.
The broader market s&p 500 index setting another record high, up 1/3 of a percent at 1680. new record for the dow jones industrial as well, finished at 15,464. and the nasdaq composite index rising as well.
It was up nearly 2/3 of a percent at 3600. a quick look at the charts for the week.
We also see that we have some numbers there ranging from 3% to 3.17%. breaking news now -- bloomberg news has learned that time warner cable is in talks to take a 25% stake in hulu.
Earlier today "bloomberg report"ed that hulu's owners, disney, fox and comcast, did an about-face and decided not to sell the online video service.
Let's get you a check of some of the top stories that we're following for you at this hour.
In san francisco a third person has died in the crash of asiana flight 214. the girl had been in critical condition since arriving at the hospital saturday.
Her identity is not being revealed at the request of her parents.
Meantime officials have confirmed a chinese teen killed in the crash was accidentally hit by a fire truck.
It's not clear if she was dead or still alive when she was hit.
Shares of boeing fell nearly 5% today.
That's after a fire broke out on a 787 dreamliner operated by ethiopian airlines.
The plane was parked at london's heathrow airport.
No one was onboard.
It's not known whether it was related to the battery problems that battery problems that grounded the plane earlier this year.
Police are asking residents of the surrounding communities to remain peaceful after a verdict is announced in the zimmerman cays.
Time now for the commodities report.
We go to the newsroom for the details.
It's hard to steal the spotlight away from oil.
It's been rising all week at 106. the gasoline futures certainly took some attention today, rallying to a three-month high, biggest gainer in commodities gasoline futures, posting gains on the week and the day.
It's the fourth day higher up 3%, and that gain you saw today really the biggest in eight months.
Thally has a lot to do with unplanned refinery outages.
Valero began shutting down its port arthur plant.
Two other companies also down.
One energy expert we saw a breakdown of major refineries all at once and that spooked the market.
Oil began the week with a low of 102 and ends near 106. if you look at the energy moves on the week, pretty substantial.
Bank of america boosting its four-year from 97 to 92. they are talking about how the game has suddenly changed.
What we do see is that the curve for w.t., the futures curve has moved in such a way that it's priced more expensively.
Normally that indicates scarcity of supply.
However, when you look at the numbers from the u.s. energy administration you do not find that.
You find elevated stocks and growing domestic production.
So the whole paradigm has shifted.
And we've got gas demand higher as well.
Take a look at the weekly moves from metals.
Gold fell today on the stronger dollar.
Cuts into its best week since 2011. mark?
Su, commodity bulls.
What's the latest there?
Well, all of a sudden we've got a lot of them.
Gold traders, the most bullish in five weeks.
This is interesting, because as you know, gold fell 23% last quarter.
Our latest survey sees higher prices this coming week.
19 analysts expect prices to rise.
When we talk about oil, it's an even split right now.
50% do expect this coming week to be higher, even though we've seen such a big run-up in oil.
As one of our guests said two weeks ago, oil has become the new gold, everyone looking for this to be the place in energy for now.
It's time now for our weekly feature, "bleering university." we take a look at a word or a phrase in the news and explain how it all came about and what it means to you.
Let's go to dominic chu in the data center with tonight's segment.
Well, mark, in today's "bloomberg u," we wanted to take a look at the relationship between the value of the u.s. dollar and the value of certain commodities.
Oftentimes you'll hear traders and investment managers talking about how the dollar's value affects the prices of things like gold, oil and wheat.
So here's the reason why -- dollars and commodities, because commodities, like crude oil, like gold futures, like certain agricultural commodities, are all priced in u.s. dollars.
So there's a link here between the two.
If you want to guy these instruments you need u.s. dollars to do it.
Now, here's the trade dynamic.
If you want to buy that barrel of oil or that bar of gold you need those u.s. dollars.
So the dollars are key.
You need those to buy oil.
Now what would happen if the value of the dollar goes up?
If the value of the dollar goes up, it takes a lot more other currencies to actually buy every u.s. dollar.
So the euro weakens versus the u.s. dollar as it strengthens.
The yen weakens.
The pound weakens.
It takes all of these different current sis -- it takes a lot more of them to buy every u.s. dollar, which you need to buy oil.
So as the value of the dollar increases, the value of these commodities goes down because people are less willing to get out all of their currency to buy that stronger dollar that you need to buy oil.
Now, this isn't the only dynamic that affects the way prices are in the commodity markets.
Remember, there are other big factors as well.
Think about things like the geopolitical environment that we're in.
That has a big effect on the price of oil.
Even safe haven investments like gold.
Also supply and demand.
What happens if there are shrinking supplies?
Maybe the price goes up because of something like that.
Or demand increases.
All of a sudden that has an effect on commodity prices as well.
And of course, you have unprecedented central bank intervention from the fed, the bank of japan, the european central bank.
All of that creates certain imbalances, certain pricing dynamics that are all part of the commodity trade.
But certainly the value of the dollar plays a part in the way these commodities are priced, and that's the reason why it's important.
That's why we're talking about it today.
Back over to you, mark.
Up next -- bloomberg l.p. senior economist joins us with the preview of the important economic numbers coming out next week.
A look at the week ahead is next.
? it's time for our friday feature, "the week ahead." we preview the week's economic data and analysis for the yum coming week with a senior commitment the charts are out today.
Joe is here to go through them with us.
Joe, fed chairman bernanke will give his testimony on the hill next week.
What are you expecting, and are mortgage rates going to frame the discussion?
Well, after that moment of clarity in cambridge earlier this week, where bernanke laid it on the line and said the economy hasn't recovered from the financial shock.
We've got elevated unemployment rate, low inflation and fiscal restrainlt.
Well, you know, he's trying to essentially walk this back.
What you're seeing here is 100-point basis spike in the 30-year fixed mortgage rate.
The housing market is in a very modest period of recovery.
It's not sufficient enough to completely with stand another round of hike on the mortgage rate, especially given the sort of restraint income growth we've seen.
Bernanke is going to continue to mildly push back in an attempt to reassert control of the narrative here in terms of what the fed's doing and how it's going to affect interest rates.
It seems that housing is finally making its way back to being one of the pillars of the economy, that it can at least do its part to try to drive up growth.
When we talk about housing, we need to separate it out.
We're seeing an increase in starts because there's a preference in terms of what people want to buy.
There's a significant decline in the existing home supply.
People want more new homes and that's increasing starts.
That's providing a 2% list to g.d.p. and that's below 6% that we saw below the crash.
We have a long ways to go before we see wealth restored in terms of price appreciation.
That's going to take years, not months.
We'll get to starts in just a moment.
You're expecting a fairly strong retail sales report for june.
How does that contrast with the chairman's outlook?
What we're going to see is the continued increase in demand for autos as we begin to repopulate the stock of autos.
We had a quarter of a million autos destroyed by hurricane sandy.
It's been about five years since americans have been in the mood to purchase things.
You're going to see a real nice, strong, top-line increase.
What you'll also see, though, is because they had a little pop in wage income, core retail sales, that's including autos, building and gas that should build increases.
We've had a bit of a run, improvement in the unemployment rate.
But that restrained wage growth will continue to keep overall spending down and, of course, on an adjusted basis of a year ago, spending is only up 1.8%. regional manufacturing coming out as well.
Are we going to see a rebound in production?
Yes, primarily for two reasons.
One is the increase in auto production and in civilian aircraft.
This is the untold story of the year.
Orders at borge are double what they were last -- boeing are double than what they were last year, despite all the problems and caused the dow to fall off in the afternoon.
This will offset the drag from the external sector.
Industrial production numbers are out.
You just spoke about aircraft.
Civilian aircraft activity and the auto sector as well.
Have they been enough to offset the slow pace?
They have been, exactly.
This is the manufacturing portion of the industrial production report.
And you can see we're starting to see a slow, secular rebound, and this is what we want to see.
Two things are going to determine growth the second half of 2013 through 2014. a rebound in the manufacturing sector and the household leveraging.
Geopolitical tensions in the middle east, particularly egypt.
What does that mean for overall inflation?
We're going to see the top line begin to move back up.
If you look at the numbers we're still well below 2%. we'll get to 2%. let's be blunt here -- inflation is no risk to the near term or medium-term economic outlook.
Over time we'll get plenty of inflation.
Look at it this way, in three to five years, you've got much bigger problems in this economy.
Joe, finally, we were talking about housing starts a moment ago, starts in permits out next week.
What can investors expect?
If you basically push forward for a bit, it's a good forward-looking indicator at starts.
We should see starts moving back towards 1 million annualized pace.
That's through june.
We really began to see rates rise, long-term rates rise up in mortgage rates, which you saw as our first slide, second half of june.
When we get the july and august numbers we'll get a test of the housing market and the true appetite of consumers and households to purchase new and existing homes.
This will be the big story when it gets very quiet here the next months and then in september.
We'll be talking about this more in the coming days.
He is our senior economist with a look at the week ahead.
Up next, robots can drive cars.
Now they want to park them for you, too.
The future could mean no dings and no tipping.
We'll have details when we come back.
? nsm ? for all of you movie fans there's a classic scene from the film "ferris bueller's day off," where the parking attendants take off with a hot roadster.
I want the car back right now.
Come on, let's go.
What's going to happen to it?
It's in the garage.
It could get wrecked, stolen, scratched, breathed on wrong.
You have nothing to worry about.
I'm a professional.
It could be a car owner's worst nightmare leaving your baby in the care of a strange parking attendant for hours on end.
Well, thanks to new technology from a company called boomerang systems, we may be close to saying goodbye to human valet.
? i'm chris, president of boomerang systems.
We are an innovator in automated parking, which is a business that uses machinery to more efficiently park cars.
We're unique in that we pioneered the concept of using automatic-guided vehicles to park cars.
These are robots that are free to drive, independent of a rack system.
They follow a wire guidance system in the floor.
Well, versus legacy systems out there, we call those rack and rail systems, that system has some inherent weaknesses and frankly, this robotic valet system was developed to address those inadequacies.
Because the a.g.v.'s are not on a rail or a track, they're able to drive in any direction anywhere in the garage.
They can move around each other, they can pick up the car from the front, from the back or from the site.
They can even drive underneath parked cars.
So it changes the dynamics of what can be done with automated parking.
You don't have to worry about door dings or anybody in your car.
We have our first major project implementation underway in miami.
It's a 46-story high-rise.
Our system will be 12 levels to come date 480 parking spaces.
We're able to give a developer back multiple floors in a building.
They thought they were going to need 10 floors.
We're able to park them in five.
I don't think anybody wants to get rid of backhoes to dig ditches.
There will still be people involved.
But it will be creating more technology jobs.
Owners and operators should like this, because they really have control over their operation, not just because they're saving space.
Up next -- the legend of "sharknado." plus encore, your guide to the biggest newsmakers of the week.
? there are bad movies that are destined straight to d.v.d. oblivion, and then there are bad movies that are so bad they become a cultural phenomenon.
Such is the case for syfy channel's made-for-tv movie "sharknado." the storm's coming and it's coming fast.
We need to destroy it before it gets to us.
A hurricane hits los angeles.
It spawns tornadoes that scoop up sharks, sending them flying in the air like missiles.
Tara reid, who you may have seen in "american pie," and "beverly hills, 90210" actor ian ziring star in the movie.
Yes, sharks and tornadoes, a perfect storm.
The low-budget movie was a hit on twitterverse and it goss the "kansas city star" to headline a story, "can it happen here?" it also grabbed at least a million viewers.
It is friday, so we bring you "encore," a look back at the most notable newsmakers from this past week on "bottom line." any consumer is being smarter, so they're looking at ways that they can get the best value for their dollar and certainly we've conveyed that at miraval in every way possible.
It's been difficult to claw back at hotel rates.
In terms of our growth, we're fortunate that the decisions we made seem to be the right ones.
It's really not about luxury, it's about taking care of yourself.
If you still had a 1% inflation rate as they measure it, a year and a half from now, and you graze 6.5% to 6.4%, 6.3%, that wouldn't necessarily force them to move.
If you had 6.5% and the inflation rate drafted up to 2.5%, then it could happen earlier than that.
So the inflation situation right now is very favorable for the fed having room to maneuver.
From the chinese side, growth has generally been seen , and keeping the environment clean is second.
Even china, leadership is realizing that growth is coming at a heavy price so.
They need to do something without cutting growth too much.
The question is whether the u.s. can help in this process.
The u.s. for its own part hasn't been doing a great deal in terms of clean energy.
The best thing would be for the u.s. to lead by example.
Summer demand is at an all-time high for gasoline.
Refrineries are cranking out 9 million barrels of gasoline, up from 8 million on average.
But the biggest thing is the crude input prices.
Oil surging on concerns of egypt and turmoil that may switch from egypt in a road into the middle east with north africa, where 1/3 of all the oil in the world comes from.
Those things are creating that geopolitical turmoil, that tail wind and headwind, if you will, is causing the market to react pretty violently.
A look back at the notable newsmakers from this past week of the get the latest headlines at the top of the hour and streaming on your tablet and on bloomberg.com.
That does it for this edition of "bottom line." i'm mark crumpton reporting from new york.
Thank so you very much for joining us.
Have a great weekend, everybody, i'll see you monday night.