tv Lunch Money BLOOMBERG January 10, 2014 12:00pm-1:01pm EST
money."me to "lunch we have a lot coming up, the best stories, interviews, and video in business news. looking at the menu, and politics, bridgegate. orthe scandal helping hurting chris christie? in media, the original, content creators at ces. in property, escape from new york. leading the big city in search of greener pastures. in sports, ambassador mark messier, a distinctly non- pro harvard-yell game at
madison square garden. some fancy footwork. ts for the super bowl, not born on the football field. jobs,ortant day for economists and investors at the edge of their sheets, -- of their seats. 197,000 jobs. then the clock strikes 8:30. >> 74,000 jobs added, but the unemployment rate dropped 6.7%. new jobs in december. economists were expecting 200,000. >> it is very surprising. somewhere between puzzling and worrisome. >> i am intrigued, mr. el-erian. such aling because it is strange number. 74,000 jobs that were created. revisionsu add in
from last month, you are at half of what consensus was, it is inconsistent with other data. it is worrisome, remember that. if you look within the report, you get pretty worrisome things in terms of what is happening to labor participation. sinceo levels february 19 78. long-term unemployment 38%. what is the impact of the weather, how much of this is temporary? it is a shock. >> shocking, yes. mohammed el-erian mentioned the labor force dissipation rate, 62.8%. -- labor force dissipation rate, 60's it -- labor force participation rate, 62.8%, the last time it was the flow, 1978. jr big lome has been the
economic medicine back down, these days, it is a little bit more obligated. the obama administration is trying to be positive. >> 2.2 million private-sector jobs added over the last 12 months, this is a recovery. there will be volatility for months, there is an economy that is overall strengthening. tothe white house looking the bright side, life is about to get more, located for the incoming fed chief janet yellen. unemployment rate drops to 6.7%, the fed said they would start thinking about raising interest rates when we got to 6.5%. >> a little bit of a conundrum. what does this actually mean for the fed? >> first, they told us the unemployment rate, 6.7%, does not capture the extent of labor market issues. second, they reminded us to look also at the price data. look at the inflation data, which is still too low.
do not assess about unemployment numbers, third. they reminded us that there are other issues that are financial soundness. put all this together, this number does not change the expectation that they will continue to taper and exit qe by the end of 2014. it does suggest you will not see a way titles my 16 -- a wage hike until 2016. >> the white house is ready with an announcement. the president will nominate stanley fischer, former governor of the bank of israel, as well to the federald, reserve board. also, read nominating jerome powell to continue serving on the board of governors of the federal reserve. >> people were expecting these, but now chairman to the yellen has have people in place. good luck.
bloomberg television, streaming live on bloomberg.com, your tablet, and your smart phone. bridgegate, the scandal that made a new jersey governor chris christie apologize. >> i believe that all of the people who were affected by this conduct deserve this apology. that is why i am giving it to them. i also need to apologize to them for my failure as the governor understand the true nature of this problem sooner than i did. see receipt began in september when a massive weeklong traffic jam happened in fort lee, new jersey. this was caused by close access lanes ordered by the port authority on grounds it was conducting a traffic study.
there was no study. it had been orchestrated by top officials of christie's staff. retaliation against the mayor of fort lee for not supporting his reelection campaign. >> i am embarrassed and humiliated by the conduct of some of the people on my team. there is no doubt in my mind that the conduct that they exhibited is completely acceptable and showed the lack of respect for their role of government. >> we get it, governor, you are sorry. but did you know about it? noi had knowledge -- i had knowledge of this. the planning, execution, or anything about it. i first found out after it was over. even then, what i was told, was that it was a traffic study. there was no evidence to the contrary until yesterday. >> here's the thing, when there is a study, there are people
conducting it. and authorizing it, not to mention the results. in december, when he shrugged off questions, no study had been produced. two port authority officials had resigned. >> he did not know that this was happening, in december, he had close people resigned from the port authority. this is his deputy chief of staff, not someone in an agency, his inner circle. what do you know when he did the press conference, what was he told? it is not just about a lane closure time, what did he know in december, after that. these investigations will get to the bottom of all that. >> let's give governor christie the benefit of the doubt. >> very believable he did not know, i have worked for a number of politicians, you have these offices where they have to do a lot, especially governors offices and presidents that have a lot to do. there are many times that staff nubbers do things on their own. when it comes time to fess up,
as the governor try to ask a month ago, it is not surprising that somebody who had a secret, they know what is about to happen, they hope it goes away on its own. it is very believable. the question is whether the environment and the office of seeking rich mission became commonplace. actf we assume the staff without his consent, there is a deeper issue. arehief executives responsible for the culture they create. he had people who thought if they did this it would be with his approval and that was consistent -- they clearly thought that. in retrospect, maybe not, he clearly allow that culture. scandal will hurt chris christie's possible bid for the white house? the jury is divided. >> having worked in politics, it is hard for me to imagine, and the environment he is going to be dealing with in the
republican party, this is going to make it very hard. >> 45 minutes of national airtime trying to pin the governor on bridgegate. presidential,ked he looked contrite, he apologized and fired people. he talked without a teleprompter, he had a political windfall. >> what comes next? >> the u.s. attorney in new jersey has opened a preliminary probe into these lane closures. chris christie used to be the u.s. attorney of new jersey, knows office well, knows what they're doing. preliminary inquiry, i think the point that has been made, if you are chris christie, a very smart and savvy political operator, to come out and make these points, so dead set that he knew nothing about it. he better be darn sure, i imagine he is there is no paper, no way this could be tracked back to him. not only for his political future, but when you get federal
prosecutors involved, particularly the current u.s. attorney in new jersey, a veteran of the clinton justice department, he is not going to put himself in a position where what he is saying today can be used against him. >> governor christie apologized to mayor sokolich for the actions of his staff, including racial slurs. but there -- mayor sokolich accepted the apology. content was king at this year's consumer electronics show. hearing from some of the leaders in content and ovation. not all tech innovation happens within the walls of ces. taking you to the tarmac. take a look at these shots of niagara falls. the frigid air from the polar vortex that caused ice formations around niagara falls. according to a tourism website, sometimes it gets so cold that both sides of the falls will freeze, creating an ice bridge. mind-boggling. ♪
>> in media, today is the final day of the consumer electronics show in las vegas. aside from the usual gadgets, content was king. battle that in the between old-school media broadcasters and newcomers like netflix, amazon, and aereo. we spoke with the ceo of dish network. we got his take on this. still in a saturated,
mature market even with directv and dish. wireless is a growth market, that is our objective going forward. >> what about who? -- about hulu? >> the service that does not have as many commercials? we would be interested in taking a look. anything that can improve the experience of our customers. u is making shows of its own. here's the company's head of new development. >> it is a little different, we serve many different audiences as opposed to a hearing to a 18-year-old 240 nine-year-old demographic. our service gets to look at different projects and consider who is it for, are they using hulu now or can we bring them onto hulu? >> how do you determine if a show is a hit? what is the way to decide? >> is a qualitative and
quantitative judgment, it is popular and people watch it. we are curious about how it is received by the press and the creative community. >> what is the process of green lighting a show for hulu? , weeks, could it be faster than that? >> anywhere from weeks to months. we try to make it as painless and quick as possible for folks involved, it is a bit of a negotiation once you decide to move forward, there are financial parameters to define as well as rules of the road in terms of creative collaboration. especially with covert action with bbc or lions gate -- production with co- with companies like bbc or lions gate so expectations are managed. >> when it comes to budget and what you are willing to put into a show, what is that process like? do you have to weigh pros and cons?
>> we think about how large the audience of the show and how much do you need for greater production value. a variety of factors in the equation, you think about if we want this level of talent and this type of writing and this type of audience appeal, how much is it going to cost to do that right? it inwe take that and put the context of your above shows, how does that play out for 2014 -- in your new lineup of shows, how does that play out for 2014? >> we spent more than we ever helped usroduction raise the bar, we could share the risk and leverage experience in creative relationships. >> hedge fund investor ryan kavanaugh things hulu is on the right track. >> it is a really good time to be in the content creation world, amazon, netflix, hulu,
google, at&t and verizon and now cnn. from everywhere you look, whether it be traditional suppliers, over-the-top suppliers, digital suppliers, nondigital, there is a content frenzy. it is really creating an opportunity where we can give the content the consumer wants over the platform they want at the cost they want. other studios are still stuck in the legacy of putting this out in one way. a little bit more fighting, potentially. >> what is the deciding factor on whether you go to a new platform first? you have tons of television content, a company like netflix, maybe we can try original movies. you have lots of options on where you can put your film and television first. how do you decide? no first, we really
come our model is giving the consumer what they want. it sounds funny, not everybody's model, the joe keitel is our is funny, it is not everybody's model. the joe keitel, you have guys who are 50 years old who run a studio and they have guys who are 40 years old who developed the concept. when they are done spending money, they test it with 18-year-olds. then they say we do not like it, then they spent $30 million trying to fix it. our model has been to do the reverse. use every medium available to the consumer's voice into our films. being exclusive is tough and means we are not giving the consumer what they want, we are giving it away, we are forcing them to have it. >> innovation finding its way into cockpits, airlines replacing flight bags with
tablets. america lot on fuel, has gone with the ipad, delta with the surface. >> captain ruth has been lugging a briefcase for 30 years. inside, mass and operation manuals, all the essentials for every flight. now, a tablet that weighs barely two pounds is about to lighten her load. >> the tablet is one of the biggest steps. it is going to make everybody's life easier. >> here's the catch, other airlines have started using ipads. delta chose the microsoft surface. that's right, the surface. >> you guys did not get ipads? >> when you see this thing, it is sleek, it has a gorgeous -- you can flip the screen. >> delta plans to roll out tablets to all pilots by may, years behind other airlines, but
still a major shift at is estimated to save $13 million worth of fuel costs each year. >> how much have you saved? >> now i do not have to have this all over the place, i can look at it on my tablet instead of a blocking my view. i have it right here. is a piece of technology, there could always be a risk. >> technology overall has been a huge safety improvement. but, there are times when this new technology can confuse pilots or create safety issues. >> do you think it will be less safe when you make a switch to tablet? >> no, it is just like flying, there are two pilots. some routes, there are four. if my tablet failed, i have three more. >> you know how to fly the plane manually. >> absolutely, it's all the
technology went. we just use our piloting skills. get this bird down safe. all departures, the pros and cons of moving your business and family out of the city. we have the numbers for you. call him mr. ambassador, mark messier, a great rivalry on ice in sports. ♪ >> 26 after the hour, bloomberg is "on the markets." let's get you caught up. stocks are lower, not by much. perhaps not what you would expect after the disappointing jobs report. we saw the labor department report showed that the u.s. added only 74,000 jobs in the month of december, a sharp drop-off from two readings in prior months of over 200,000.
money" on "lunch bloomberg television, streaming on bloomberg.com. today's moving picture, the video is the story. fidel castro turned up at the opening of an art gallery in havana, his first public appearance in nine months. he was accompanied by his wife and his physician. he walks with the help of a cane and even greeted people. french president francois hollande he may sue a magazine after it exposed an alleged relationship with axis drilling -- with actress julie gayet.
," hadgazine "closer allegedly going to her apartment. he is not married but is in a relationship. this single engine plane in new zealand, the pilot admitted his pride was a little bruised. the plane had to make an emergency landing on the beach due to engine trouble. do you ever feel like the city is too crowded? matt miller thinks so, a lot of companies agree. companies are in secondary cities or what we refer to as flyover country. you will see microsoft, up there in washington. it has been there forever. the same is true of bank of america, down in charlotte. companies that are moving out were growing big in their secondary offices, goldman is in salt lake city,
that is a fantastic place if you love to ski. a lot of cities in america that are growing because of a trend that we call x organization -- exurbanization. people moving out of cities, denver is one of the big booming cities. much more are affordable. there is a very diverse talent pool. there is accessible mass transit now. they have a downtown area that has a vibrant cultural scene. here in new york, you are -- $515,000 -- that is a lot of money for a home in middle america. here, if you're very lucky, you get a two-bedroom apartment. that is very unlikely. in san francisco, the same is true, maybe you get a house. 500 $15,000, go out to denver, for less than $300,000, you can
get a five bedroom house with five bathrooms and 5000 square feet. it is a very different story out there. sees it adin different way. >> i happen to disagree. trees in new york city. ason new york city. the growth in demand, ibm is moving from westminster not far from our project in the east village to open their watson computing center for cloud computing. just anyou say -- even example of what i just mentioned with greenwich village and the amount of demand. some peopleside, might say this is why i am worried about moving to manhattan or being in new york. i might get squeezed out by everybody who has more money than me. beauty of this
city. what the mayor has done in the last 12 years and the new mayor will focus on in the future, creating opportunities in other boroughs. look at brooklyn. took over 2000 feet for manufacturing. the power of this city is diverse marketplace. you have the high-end, medium and, and the low-cost alternatives for companies. a company that has grown to almost one million feet of space with shared workspace for entrepreneurs. that is the dynamics in the city. >> there are many competitive cities. we have had many entrepreneurs on who are all trying to lure companies into their own cities. we had jim on a few weeks ago who wants to make st. louis a new type -- a new tech hub. so many people, michael dell in
texas. >> we have to be competitive and continue to grow our city, find opportunities and investment infrastructure and transportation. you saw governor cuomo announced the other day tax cuts focusing on getting computers to schoolchildren to uphold state, creating startup new york, a very innovative tax-free zone connected to universities. to are got -- we are going continue to be competitive and attract companies. see continued announcements of companies growing and coming to new york city. >> mark messier has one reason he should be in new york this reason. the harvard-yale showdown at madison square garden. that is coming up in sports. you need warm clothes for the super bowl in new york. nike has you covered.
bloomberg television, streaming live on bloomberg.com. i am adam johnson. mark messier was an idol to many theyorkers growing up in 1990's, captain of the new york rangers' stanley cup championship team and was inducted into the hall of fame in 1997. he is taking on the role of brand ambassador for the harvard-yale game taking place at madison square garden this weekend. >> it is one of the best forms of amateur hockey we have in the u.s. a rivals amateur leagues in canada, many great players are being drafted into the nh;. there is a long -- into the nhl. a long history of rivalry in the ivy league schools, i have a lot of cousins who have gone to harvard and yale. >> you have a nephew on the
harvard team, how are you going to stay neutral? to be hard, kingsbridge has become a sponsor, that is part of our mission, make sure we have a game of hockey in this area. what a better way to do it in providing these two teams with the opportunity. >> college hockey is the subject of some debate for young kids, do you go to college to play hockey, or if you are a talented 18 year old, to you do what johnny football is doing, leave college early? no right answer, everybody is different and matures at different ages. some kids are ready at 18 years old, other kids can take this for years and build up their bodies and are more ready to join professional leagues. the idea nowadays, everything is so scouted, it does not matter where you play, you will get
seen and make it there. there's not a better choice, is just an individual preference about what you are emotionally and physically ready for. thehe nhl has decided to up amount of games played outside on the ice. hasn't gone too far with a game at dodgers stadium and la -- in los angeles? eventstarted off as an once a year, a super bowl of ice hockey. regional markets one one as well. if they are willing to sell tickets and create great events in independent markets, why not? >> did the novelty factor wear off? will, the think it novelty factor is not because it is not in their towns, dodgers stadium, here yankee stadium. country, the market is saying there is a need for this. they are selling tickets at the
day they go on sale, this is good news for hockey. the one in michigan between detroit and toronto was an incredible experience. talk about a hockey spectacle. to sell the sport, it was a home run. >> that was an awesome game. can -- 10 hockey players have filed a lawsuit saying the game is too violent and may have led to head injuries/ . >> it is something nobody feels good about. the nhl and the nhlpa were together every day to make games better, safer, more exciting. everything you can think about. there is not a day goes by that that is not on the front burner -- >> if you make it too safe, how do you get spectators? >> first, there is no easy answer, there is no correct answer. i think over time, answers will start to develop. we know a lot more now than we
did 10 years ago or 20 years ago when i first started. >> violence in hockey is an issue that in flames a lot of passion. can dragon, the greatest goalie -- ken dryden, the greatest goalie, he said all the traditional rationales for fighting are gone. do you agree? >> to a point. it was meant to ensure that incidents were taken out of the game. the game is very simple, i need a certain area to score, your job is not to let me get to that area. there is going to be instances where tempers flare. that does not have anything to do with conflict on the ice is not good for the game. >> from skates to cleats, the information -- the inspiration for nike's football spikes will
speed symposium in new york city. the line is designed specifically for the super bowl, that will take place right across the river outdoors in new jersey. >> new innovations we can deliver, it was a factor. we have to look at it could be 5 degrees or 50 degrees. of optionshe array for the athletes expands our breadth. from an innovator standpoint, it gave us tools to be able to play with to deliver those needs. this is the first outdoor super bowl in a long time. being in new york and having it be potentially really cold is actually very exciting for us. >> nfl stars ray rice and lesean mccoy helped take the cover off of the new foot wear. gearke always has the best for the players.
they find ways, if you want to be warm, don't bundle up in all these clothing, he can still play in a fast level. cleats that are faster with enough protection. they find ways to do that. you are happy to be part of it as a player. like a true spokesperson. the inspiration for the new cleats came from the track thanks to olympic gold medal sprinter michael jackson. >> i don't know anything about football, i know about speed. they said tell me everything you know, every athlete -- you will not find any athlete in any sport who does not want speed. >> that goes for car racing, too. you would not think footwear matters in formula one racing. tom gibson caught up with the formula one legend. master, he has
been making driving shoes in sicily for over 50 years. his customers included world champion miki lowder. >> race shoes did not exist, i had to invent them. i got a phone call from ferrari race team, i was dumbstruck. it was the best of the best. inbig sponsorship deals formula one pushed him out. that has not stopped hollywood knocking on his door. the glamour of 1970's racing it moralize last year on the silver broughtn "rush" business back. director ron howard asked him to make a copy of the shoes he made for lowder. >> being part of the movie was such a bonus. i can die a happy man. >> at 78 years old, he still makes handmade shoes for
-- payrolls gained only 74,000 in the past month, follows two months of two hundred thousand readings. more action in the bond markets, treasury's rallying on the back of that report. about nine down basis points. from stocks to alternative assets, looking at real estate. many companies moving to the suburbs and secondary cities, drawing a frugal crowd. matt miller has been looking into this. >> not just the frugal route. >> you have shown that the city. why do people want to leave new york city? >> at the time i left new york city to move to westchester, i could only find one better muck apartments for $1 million. i started thinking that is -- forbetter and apartments
$1 million. most people who did not grow up in new york would think that is insane. a lot of companies are doing the same thing. some countries already had headquarters in other cities. think of america has been in charlotte. they resisted the urge to move. lewis, he was running bank of america, there was pressure to move to new york. he resisted that, the executives at bank of america are all thankful he did. goldman sachs, one of their biggest current offices in the country, the biggest office in the country, salt lake city, utah. i, you would be happy, it costs a lot less to live out their. one of the biggest trending cities to move to from the coast has been denver. looking at real estate prices, it makes sense. >> what can you get for your
money? $1 million in new york versus denver. >> someone was looking through the new york times real estate page yesterday and said for $500,000, what can we get in new york. they found a place in new york city, a two bedroom townhome for $500,000, i find that hard to believe. >> very hard to believe. about $500,000 in san francisco is only going to get you a two-bedroom home. in denver it gets you a five bedroom home with 5000 square feet. that is unattainable for the average person in new york city or san francisco, is a huge difference and you save a lot of money. it is a lot cheaper there. people are moving in from the coast to flavor country. -- fly over country. word.nization is a
>> they are moving from the coast to the suburbs. there is a bubble in real estate in san francisco. big, coastal cities are not losing popularity enough to lower real estate prices. new york city and san francisco are always going to be popular. a popular valley is place to live as facebook creates condominiums for employees. >> someone recently suggested silicon valley should be its own city. >> thank you for joining us, that is it for "on the markets." "bloomberg west" is up next. ♪
>> live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the technology companies that are reshaping our world. i am emily chang. let's get to the rundown. target reveals that the security breaches far bigger than originally thought. 70 million customers may be af