Forget Wine, Whisky’s Where the Money Is

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Aug. 22 (Bloomberg) -- On today’s “The Roundup,” Bloomberg's Trish Regan, Olovia Sterns, Eric Chemi and Matt Miller wrap up the day’s top market stories on “Street Smart.” (Source: Bloomberg)

With me.

Talking about federal prosecutors investigating whether or not employees in gm's legal department hid evidence about a faulty ignition switch, possibly delaying a recall of the vehicles with the problem.

Gm says it is cooperating with the probe.

We have said all along, it is kind of amazing that this could happen and nobody was really talking about it in the company.

This could be the kind of thing that results in real trouble if somebody gets caught.

Like jail time.

Serious punishment.

Previously, they were concerned that gm lawyers had not alerted other managers to the fact they were getting lawsuits on one side and not telling the other side.

But this is actually alleging that they may have a really hidden evidence from regulators that could have shed light on the situation.

They are looking for criminal liability.

Are you surprised the general counsel might look into -- that the general counsel has kept his job?

I'm shocked.

So is congress.

They did the same tactic against toyota, to go against the lawyers because there was similar behavior, hiding from regulators.

It is an approach they have used before.

Gm -- 16 million cars from other companies get recall.

We forget how consistent the auto business is in terms of all the problems they have.

This will not be the only company where we see these problems.

Let's talk about citi.

Citigroup earned less from japan than its ceo michael corbat's salary.

This may explain why the company is thinking of selling it japanese consumer banks business.

Michael made $14.5 million last year.

Apparently the japanese business is not so good for them.

You know what is hard, you think about nomura.

Nomura has a pretty big presence over there.

You're an american bank trying to operate in japan.

Serious cultural divide.

Challenging market.

But the scale helps them.

Because citigroup's business is so small, they cannot and he.

Nomura has a better chance, given abenomics, that he has doubled the money supply.

Just means the spread between lending rates and borrowing rates is too thin.

The margin is 1.25%. japan is the worst possible business if you are a bank.

Citigroup only has 33 branches.

Not a big operation.

They have fewer branches in japan than within eyesight.

Look at the m&a environment.

They lost $1 billion in corporate m&a in japan.

This is just consumer bank branches that made $12 million.

Let's take a moment -- michael corbat only gets $14.5 million a year.

How can you afford a great place in the hamptons and a penthouse on central park west?

This is not columbus, ohio.

In america, 33% of our wealth is in the stock market.

In japan, it is only 9%. this is a very different type of country, where you are going to get customers -- it is a nation of savers, which is not very good right now.

Citigroup has been pulling back because of the spread between the lending rate and deposit rate is so small.

These days, there are apps for just about everything.

Dating, hailing cabs -- now there seems to be an app for matching companies for takeovers.

They are attracting investment bankers and private equity guys looking for deals here.

Who needs a banker when you have an app?

The bankers are using the apps to find deals, but there is a stigma because they don't want to tell investors, i found this company on an app.

Just like how dating had a stigma if you find someone online, this is still happening.

Like we see with any market, it gets more and more liquid.

It is going to drive fees down.

If the information is that available and you can run a search and find it like that, then what is the banker bringing?

Like trading bonds on a bloomberg terminal.

That is an app for trading.

Same thing.

The flipside is that there is a personal connection.

If you are buying a company and making an investment, you are looking for guidance through all that.

So you may be able to find a company on an app, but who will tell you all the metrics?

Just like dating.

Just like dating.

And one is for mergers,, not acquisitions.

It will bring a merger of equals together.

I am sure there are different flavors.

My point is, there is no such thing as a merger.

Just like you could change the setting to blond or red head -- i am looking for a spanish midsize company.

[laughter] 500 employees minimum.

Investors are falling over themselves to grab iconic single-mulled scotches, like rare japanese whiskeys.

The top 100 single malts delivered and average return of 433% over 10 years.

So who knew?

We should have just bought booze.

The wine index up only 2% in that.

. -- in that period.

We hear so much about chinese buyers buying up wine.

Wine sales were down 15% in 2013 from a year before.

Wine is not where it is happening anymore.

It is a small market.

Like collecting cars or baseball cards, autographed sports memorabilia.

It is not like this is a big driver of the economy.

When you have -- i'm not sure about single malt scotch, but in the car market if you have a ferrari that costs $40 million, there are not a lot of people that are going to be on hand when you feel like selling it.

It is only worth what someone is willing to pay for it at auction.

So i am sure how much a really expensive single malt scotch can be.

In the story, 12,000 pounds.

There are a lot of chinese buyers for that.

Today like koch -- do they like scotch?

What they say about the chinese buyers, unlike european buyers, they actually drink it.

They buy two bottles.

I'm glad to hear that.

Can they hold their liquor?

I will move on here.

A former google engineer has been hired, the same person who flew into washington to save

As you can see from this video, while he now works for the government, he has been able to keep his silicon valley at higher -- attire.

He was dressed well compared to what i saw him wearing earlier in a story online.

A science teacher.

Now he is actually wearing a collared shirt, even if it looks wrinkled.

From 2002 to 2007, business casual was up.

In the last five years, we have seen business casual getting killed again.

Because the economy has not been so great.

When the economy is great, going gangbusters, you can wear whatever you want to work.

When it does not do as well, look at you two.

On a friday afternoon in august.

It depends on what you do.

Most people here in the bloomberg offices are wearing a coat and tie on a regular basis.

The coders, the programmers, you go down to their floor, they are wearing sweats they have not washed in four weeks and a t-shirt.

They do not dress up for anybody.

The owner of the company could walk on that floor and they would not put a tie on.

They do put on a tie when they have to meet the president.

That is the only time.

Good work if you can get it.

Thanks, matt, olivia, and erik.

We will look at the ranks.

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


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