tv Taking Stock With Pimm Fox Bloomberg December 10, 2013 5:00pm-6:01pm EST
>> this is "taking stock" for tuesday, december 10, 2013. i'm pimm fox. i'm going to focus on people and businesses hitting the right note. general motors is hiring its a centuryle ceo after of global automaking. and helping artists hit the rightnow when it comes to music and sales. and strawberry fields forever, not only one of the greatest eagles song of all time, but the
name of the group that pays tribute to john, paul, ringo, and george. all that and more over the next hour. but first, let me give you some headlines. mastercard is that with some big news as the markets close. the second-biggest payments network saying the board raise the firm's dividend 83%, and also approved a 10 for one stock split. the company raising its quarterly dividend to $1.10 per share and also authorizing the repurchasing as much as $1.3 billion worth of stock. h&r block reported earnings. the second quarter loss was wider than expected. and shares of starbucks falling the most in almost a year. the coffee company's sales
growth in the americas may be slowing. until today, starbucks stock had gained nearly 50% so far this year. those are the top headlines. my radio cohost and bloomberg chief national correspondent carol massar is currently in louisville, kentucky. she got behind the scenes and took a look at ups during one of of year fortimes the company. tell us more. time ofitely a busy year for ubs. in fact, last year at this time, a peak season, 4 million packages in one day. they're getting ready for their busiest day of the year. that will come on monday. i spoke earlier with the companies president and ceo. certainly, through black friday, cyber monday and getting closer to christmas it is a busy time
of year. and after the holidays, a lot of shopping going on. -- ups is impacted because of all of that. >> what kind of technological did scott davis actually tell you about? >> in the last week or two, there has been a lot of interest about drones for delivering packages. we heard all about it from amazon's jeff a dose. bezos. i put the question to the company's cfo and the ceo as to whether ups would be involved in that kind of technology. here's what he had to say. >> we have been looking at drones technology for about four years now. many companies experiment with
drones. in china in the last year, experimenting with the one package type drone that amazon talked about last week. we will pay attention to drone technology. the technology is not that far away. i think they'll regulation is years and years away. -- i think the regulation is years and years away. regulating drones is a challenge. >> are you thinking about five years out? >> i would say more like 10 years. this is a technology company. it is the backbone of what ups does. they spend about $1 billion a year on technology and most of that is looking at what could be down the road. interesting to hear what they had to say about drones.
certainly, nothing is just around the corner here at ups. turning to ubs and the world of health care, what did the chief executive -- turning to ups and the world of health care, what did the chief executive have to say about their role in delivering products and services? >> i had no idea how much they are involved in health care. they have several buildings just devoted to health care here. and you know, fulfillment, and logistics, and just taking care of other companies. here is what scott davis had to say about health care companies specifically related to ups. many companies need to spend their time and efforts on development. they turn to companies like ups. we have a global network that goes absolutely everywhere. are experts in
compliance. it is going to be a fast growing industry with demographics the way they are. not the bulk of their revenue and profits in terms of fulfillment. but it is certainly one of the growing and strategic areas for ups. back to you. >> angst very much, carol massar , my radio cohost and chief national correspondent. from the ups headquarters in louisville, kentucky. coming up, u.s. head -- u.s. regulators approve the volcker rule. will it make the financial system safer? we have a panel to answer the question. and later on, john, paul, george, and ringo -- well, they sort of joined me. we will talk to the members of strawberry fields about the
x after years of debate among the volcker rule was approved by all five u.s. regulators. allows some exemptions for hedging and market making. it also limits hedge funds and private equity investments. and to to discuss this find out whether this will make our financials any safer, donald linson, and joining us from washington dc parts of thensform legislation.
with its effects on wall street, daniel alpert. atounding managing partner lamson capital. rule?s in the volcker what is it all about? >> you have a very nice summary. thank you for having me. things.two it tries to restrict proprietary trading and investments in hedge funds, and it takes 950 pages to do it. >> if it takes 950 pages to do it, can you explain exactly why it takes so many pages to put ofether the details something donald just described in a sentence? sadly, there are still some ambiguity in the rules as to how banks determine what is proprietary trading versus a
connection with market making and client related services. developres that banks policies and procedures, test them, and maintain them to force compliance with the volcker rule. it does not apply to chief executives to test whether they are in compliance in entirety with the volcker rule. >> policies and procedures. do policies and procedures mean more expenses? >> i'm sure it will be more expensive. when you actually look at what the law actually says, those policies and procedures are pretty detailed, more so than i thought they would be. i agree that potentially, this could have been a more restrictive role. at the end of the day, i think it really does get down to brass tacks. at the level of detail. >> is this things like, you are
not allowed to do this kind of trading or -- >> right, and if, and if, and if. three different maters -- layers. is that somehow this legislation is going to restrict the ability of banks to ask the conduct their primary function, which is capital formation. one thing i can say after having at least taken -- taking a look concludedmary, i have that this will not be the outcome. a lot of the screaming and shouting we have heard from the industry is just that, screaming and shouting. at the end of the day, there is ample room in the markets, ample room to make sure the flow of capital and investment is maintained to banking institutions. and quite frankly, the big issue it is trying to attack is not taking on more risk, and not creating infection between one institute and another. >> do you agree? >> i wish i could take as optimistic a view on that.
in reality, i think you will find wider bid a spread. i think there will be greater fines imposed on the market as a whole. when you are restricting bank prop trading, as the rule is doing, that means you are shifting supply and demand. it is just a way of the world. >> i would wonder if we will see more of that occurring outside the bank's purview. many banks have already shut down or have reduced their prop trading desk. we have seen others go on to other firms. >> that other form does not come with an fdic -- >>) doesn't come with a guaranteed capital. you have the taxpayers at large, and only the government agencies having a stake in these banks.
because they are not only giving them deposit insurance, but access to the discount window, and national charter, and all kinds of other things. go to the second layer of all of this and look at the ask spreads he was talking about a few minutes ago. the rule says, you've got to live off of the small spreads. you have to live off of commissions and other fees. , whatould be, in fact volker really asks for, which is to make herschel -- commercial banking boring again. when dodd frank was promulgated, that was the intent. the intent was to basically stop this layer of casino gambling and go back to making sure the their principal. >> while it may be boring again to be a bank, will it still be as profitable? and will the banks still be as big as they are today?
phrase "er i hear the casino atmosphere" been used, i try to hold onto my wallet. that means earnings are less diversified. the risks --asing you are increasing the risks that banks are taking in lending, which was not a profitable business anyway in the run up to dodd frank. commercial lending was unprofitable and for most of the losses incurred, congress could not stop banks from engaging in commercial lending. as a result, they aimed at prop trading, which was an area where banks had made money for a long time and had helped to diversify the funding stream. we have not even talk about covered funds yet. >> thank you. i will leave that for another time. my thanks to you all. motorsup, general
held by women in fortune 500 companies. women have held only about 17% of all board seats. how do female executives feel about all of this echo i have turned to the experts. -- feel about all of this? i have turned to the experts. holdgay and the rain leadership positions -- and lorraine hold leadership positions. what was your reaction when you heard that was going to be the first chief executive of gm -- that mary barra was going to be the first chief executive of gm? pre-k's it was about time. -- >> it is about time. much the media making too
of the fact that this is the first woman to run a major automobile company anywhere in the world? or is this appropriate? should we be highlighting its? >> i wish we did not have to speak about the fact that she is a woman. i think it would be better to say she is the most qualified individual to take that position. and an outgoing ceos that had the courage to appoint the right person to the job, who just happen to be a woman. that has happened in the past and i think women have been available, but the board did not have the courage to appoint them. we are delighted because she is the best person for the job. >> you sit on the board for frontier can occasions. what are some of the conversations like, not necessarily at frontier, but at the board level, to create this kind of courage that you described. we have had many women on the board and in addition, i sit on
the board of directors in california. commission,e ribbon it says, of the thousands of member companies, please take a look at your board and make sure there is diversity. is this the right time for its? it is probably overdue. and the numbers are actually there. better return on sales for companies that have over three and 112% on investor capital. it is not just a good thing to do from an investor standpoint, from a business standpoint. >> when you make presentations for an advertising business, typically, are your counterparts at the executive level of that business, do they recognize or make a distinction of whether
someone happens to be female or male in a particular role? >> actually, they always hire us because they think we can do the best job. >> was that always the case? >> no, it was not. i have had to prove that through the years. i have had to make our work exemplary and wonderful. and attract the kind of fortune 100 clients that we do. your work is always as good as the last thing you did. there were times when i was trying to grow my company where i'm sure they thought, where is this other lady coming in and what do they know about the ad business? we are competing against other large corporations. >> were there moments that you can recall that you were able to break through and be recognized just for your ability? >> yes, and very often, i found being a woman was an advantage. and i became gender-neutral myself. from the look at it
point of view of being a woman. i was ceo of an aeronautical distribution company and also health services company. it was just, i get the job done and do a good job. >> but you did not start at those levels. >> no, but i am an entrepreneur. on a committee of 200, more than 50% are founding members and our existing members are entrepreneurs. and more than half of those run companies over $100 million in revenue. there is over $1 trillion collectively in the companies that we run. buts not just ceo's, something globally. recall in the world of advertising, if you could go back and do something differently knowing what you
know now about the true jet or he of current board -- the trajectory of current board, what would you do? >> i would have tried early on to get involved with a corporate board. but now that i'm going to be 100, i will be on a corporate board. really, it is the resources there. any company watching your program tonight saying, we do need to get more women on our we have added some of the strongest and most financially capable women in the world. there are great resources there for board potential. >> thank you both. it is 26 minutes past the hour. that means it's time for "on the markets." drops 0.3%.
i'm pimm fox. backed day --rst today said markets and investment banking will probably fall short when comparing with the final month of 2012. the firm reported 926 million dollars in revenue from investment making in last year's fourth quarter. the ceo of cardinal health will start a venture that will be the .iggest source of medicines it will seek to find savings in the medical system. happen astity will soon as july 1. marking the life of nelson to him, paying tribute in a township south west of johannesburg. president obama spoke about what
mandela meant to him. >> over 30 years ago, while student, i learned of nelson mandela and the struggle taking place in this beautiful land. and it stirred something in me. it woke me up from -- to my to others and to myself and set me on an improbable journey that find me here today. >> at least 5000 people are expected to attend mandela's funeral on december 15. tonight on bottom line, i will be speaking with deborah gillis, catalyst to get her perspective on women in leadership. "bottom line" tonight at 7 p.m. new york time. hope to see you then. >> this week, president obama
signed an extension of america's 10 year plastic gun ban after being reauthorized by congress. that took place yesterday. the original ban was set to expire and had gained attention saying that plastic guns could get past airport security. cory johnson has been following this issue. also, the chief executive of valencia design group and the grandson of a designer. to develop aology .ariety of products gentlemen, thanks for being here. >> is that orange juice? i thought that was a tequila bottle. the only reason i came on this segment. >> must be serious for a moment. 3-d printing technology and guns made for this kind of thing. >> i think we are in the midst
of this really interesting -- i don't want to use the word bubble, but i don't have a better word. this notion of excitement about new technologies. they are nascent and interesting and look like they have the potential for growth. company called x one, a few years ago, they had a few 3-d printers that they sold. technologies really do capture the mind. -- idea of a laser printer think they will be able to make some cool things that they have not made before. a 3-d printer works is that you have some kind of drawing or some kind of visual representation on a screen somewhere. >> this is the important part of the story. you've got to have the drawing. >> you've got to have the ability to render things on your computer in 3-d and understand how to draw the insides and the
outsides. most 3-d printers are about the costof a refrigerator and andwhere between $250,000 $500,000. and they just spit out these layers and they snap together. >> you have the heated resin and then you are able to create the actual models. tell us about what you have done using 3-d technology for peaceful purposes. >> i think it is technology that will change the world in the way that penicillin did. the idea that implications are extremely profound. when you have something that can be produced locally and there is no fuel cost to transport it, looking out 10 years, 20 years -- >> and it is also being used for prosthetic devices.
you see many 3-d printers turning out hands and arms. >> you can use them for any number of things. this is german brush. -- dharma brush. knobs toreat tool for actually see in real time. to see something that we render on the computer, what it's going to look like and feel like. we went from 3-d computer models to order typing and now production models. what kind of printer is this made on? >> we have a proprietary printer. called stereogy lithic, which is the oldest form of 3-d printing. but it is still the high- definition and best quality. avenuereason why organic
, the reason why soul cycle -- tell us why those particular organizations and how you fit into their plans. >> the way we work is we solve problems. we are a turnkey solution to a design problem, which is, if someone wants a new glass bottle forbeverages, a new bike soul cycle, we are told we need 100,000 minimum. what we are great -- really good at is creating value. they know we can deliver. >> negotiators seem to have reached some kind of deals on the u.s. budget and may be easing some of the cut. staying with washington for a moment, the passage of the prohibition on plastic guns, it was because they could get through security, correct get the >> a terrifying idea --
correct? >> a terrifying idea. there were some plans on the internet that showed how to make such a device with a printer. and again, you could not make this on a desktop. you need a fairly extensive and sophisticated printer to make this stuff. but interesting and terrifying at the same moment. >> you don't want one of those replicators, maybe for the holidays. >> it gets back to the 3-d design again. it is exciting to think our kids will learn code and will learn to design in three dimensions. theyat the designs that were showing off. these are not simple designs. >> thank you very much.
all under one roof, and stadium red. joining me now is the chief executive and founder. what is stadiumread? a musicum red is entertainment company. it started as a recording studio. like many other kid, i wanted to be a rockstar. fortunately or unfortunately, i decided that was no longer the direction i wanted to go. i pursued the idea that i wanted to help build a place to help musicians make the music they love to make, and do it in this modern-day music industry that we love to work in. dohow many recording studios you have yucca >> there are five studios. >> how many recording studios do you have? >> there are five studios. as a partner with artist to help them meet record labels, booking agencies, everything
.hey have to get and then we have our lifestyle musicians toe pair help the brand get paired with up-and-coming musicians. >> it is the lifecycle of a musician. >> absolutely. >> is it expensive yucca >> we have to make a living like everyone else. the guys that are coming to us making music with big labels all the way down to people with disposable income who are trying career music. at i we have different entry points and levels. >> who are some of the artists that you have playing at your studios? >> it ranges. over the years, we have been associated with a few grammy nominated and grammy
winning projects. we just found out that a project on has twot worked grammy nominations. grammy nominations and 11 wins in the past five years. we work with everybody. famous all the way down to aspiring musicians. >> but it is also brands. connectuch as bmw, you these musicians who may not have those connections with the brands. >> right. music can next to more people around the world than anything. -- music connects to more people around the world more than anything. we work with the brands and help them align with the right artists, the right musicians.
ways toe all kinds of create that win-win scenario. >> why stadium read? why the name yucca >> -- why the name? -- to do to do's do something totally different. my brother was helping me start the company and paint the walls. we found this color called "stadium red." we thought it was a cool name. >> we have to leave it there. the business of being a tribute band, but not just any tribute band.y how about the beatles tribute band? ♪
>> the senate has just confirmed congressman mel watt as the u.s.'s top housing regulator. once again, he is being named as the top housing regulator and his confirmation battle lasted quite a few rounds between senate republicans and the democrats. that's right. the democrats were proposing that mel watt he come the housing regulator and the senate has finally confirmed that. .n to the beatles iconic, influential, unique. who would be bold and brave enough to re-create them? insert strawberry fields, the beatles tribute band. they have performed at bb kings in new york as a showcase. they have been there for 14 years. they join me now.
my goodness. let's start off. how did you begin this tribute band? not really choose this band because it was the greatest music and the most iconic for guys who wrote the music. it was all about her favorites. we all loved the beatles and we chose to do beatles music because we loved it. >> you chose to do it because you love it and you are still playing it. >> yes, bb kings is an incredible venue for us and we are there every week and we have audiences all over the world. >> what is it that makes the beatles special? tracks all ages. ares special to kids that 60 -- that -- to kids that are six to people that are 70. i went to see paul play with my daughter and there were people
there of all ages. it is fun music. george, -- george, rather. i get confused looking at you. what role do you play in this idea of creating this mess -- myth almost? >> i do my best to .lay the music as written it's not just playing the notes. it's re-creating the feel and the excitement that they were all about. you as the drummer, you were the last one to join the band. do you have to channel what it is like to be in the band? sullivan one i was a 3, 4-year-old kid. that changed my life.
>> probably all of us. >> it was an epiphany. i decided this is what i wanted to do and i became a drummer. i was playing in a band with two of the guys in the original broadway production of beatlemania. they looked over at me and said, this guy is the perfect ringo. and then i went on the road with them in the 1990s and started playing with them. it isemotional, because great music. i cannot imagine doing anything else now, honestly. aboutant to ask you tribute bands. how do you define that? it is not just imitating, but trying to re-create something. >> the first one or two songs, people are looking at us on stage and they are going, they kind of look like the beatles. they kind of have the mannerisms. that after that for -- that fourth or fifth song in that verse half hour, they are buying thatthe show and -- in
first half hour, they are buying into the show. we have to pull this off every night. people know the beatles music more than anything else and it has to be a spot on. for the 24 years we have been doing this, we have enjoyed it. think about it, every week for 24 years. 24 years. >> since 1991. >> i did my first show with tony in 1991. >> you have been doing this longer than the beatles were a band. >> we have our wheelchairs in the back. >> what is the reaction from sir paul mccartney, from ringo starr ? what is their reaction to the band? were selected to re-create the beatles at a stadium. we did a concert on the field. were there.d ringo they announced us.
we had a lot of things going for us that day. >> ringo? >> i had a chance to meet ringo. i have a modest pop art collection and window has done some pop art. we purchased a piece as a gallery and we were having a showing and ringo was there. i had a chance to chat with him. >> it's like looking in a mirror. did not really mention that i was doing this because they asked us to talk about the art and not the beatles. but i did tell him that he changed my life and i told him that you are the reason i'm a drummer now. >> what about the fans all over the world? x as billy said, we keep getting new fans, young people -- >> as billy said, we keep getting young fans, new fans.
and then there are older people. it is the classics, just like cole porter. sing a song like "all my love and" or "ticket to ride" and you look at these kids that are seven years old and they are singing with you. it gets back to the music. the music is a special thing. it has made people happy. we look at every weekend at bb kings as a celebration with fellow music fans. >> we will leave it there. thank you very much. strawberry fields. bb kings blues club in new york city. is 56 minutes past the hour. that means it is time for "on the market" on bloomberg.
♪ >> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on technology and the future of business. let's get straight to the rundown. move over google glass. getting into wearable tech, ma