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tv   Street Smart with Trish Regan and Adam Johnson  Bloomberg  January 21, 2014 3:00pm-5:01pm EST

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>> baby it's cold outside. hello run new york. i am trish regan. >> i am mark crumpton. onome to "street smart"
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this tuesday. it is cold, windy, and nasty. here the live look outside. >> talk about traffic. that is 3rd avenue in midtown manhattan. snow blanketing the east coast. forecast calling for for more -- for more than six inches of snow . federal offices in washington closed. the storm warning in effect from north carolina mountains to the massachusetts coast. >> things basically shut down in washington on the d.c., right now. havee thrilled to alongside for the entire hour, jonathan weil. you are staying warm. you a sweater on. ofthe news, -- comes out 1:00, federal offices closed. storm yesterday was coming.
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why is it at 1:00 -- no one believes the weatherman. here do not know how to deal with snow. i went to college and folder. they know how to deal with snow there. >> here you need to feet of snow to cancel school. >> welcome to new york. >> 14 inches in new york city. day. should take a powder talk about. lot to big news on bloomberg television this morning and an exclusive andrview michael bloomberg bill gates, betty liu sat down with them. mr. gates out with his annual letter talking about his foundation and what he would like to see.
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there were some pretty big names -- themes discussed. one of which, poor countries are not doomed to stay poor. we can change that. >> he said it is overly pessimistic to believe the paradigm cannot be changed. that people can move forward and try to deal with this on a more humane level. he spoke about that today with york.rmer may your of new let's listen into some of what mr. gates had to say. >> the backs are on the side of the optimist. i think it is dangerous people are focusing on the bad news and not seeing the progress you have made. they do not look at best practices.
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most people are middle income countries right now. .here is more to be done the track record of success, if you do not see that, you will not participate in what we need to do. >> he said by 2035 we will have no more poor countries, which is incredible. it is not that far away. a lot can be done. >> i am skeptical that we will not have any more poor countries. i look at the notion of poor countries, and i did not believe that. foreign aid is a big waste. i do not believe that. use thatof politicians as an excuse. instances where you have conservative lawmakers
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holding up $600,000 foreign aid package. his quote was it is dangerous that people are focusing on the bad news and not seeing the progress we have made. get in troublee for reporting just the bad news. everyone should be focusing more anytime we see progress. another point he made is that saving lives lead to overpopulation is another big myth. >> that was my reaction. it comes down to kids. we are talking about children and saving their lives. with the right investment, changes in policy, he said every country will have
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child mortality rates that are as low as the rates in the u.s. or u.k. were in 1980. >> things are changing. there are a lot of stereotypes. brazil for example. i have spent a lot of time reporting their. there was a thinking that hunger was a problem in brazil. certainly in cities like rio de janeiro. back the mayor instituted a program to institute -- to help with obesity. >> that also involves changing a mindset. >> it surprised me. you think of a poor country and poor country like brazil, and you would think they would have
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the problem of still be suffering with hunger. fortunately, things are getting better. >> a country like somalia would not have abject poverty. and aimave ambitions for the stars. economy has gotten on stable footing. the question, is cynicism holding people back. it is not that we do not want to get our hopes up too high, but when someone says this will happen by 2035, is the reason to think -- it does not mean we have to accept that as a
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prediction. >> certainly cool to think about, and we all hope it does. >> mark crumpton, good to sit next to you. i have a twitter request. we are going to work on that. mark ronson, an hour to get him on twitter. we want to know if you think -- this is linked to your call him, whether or not you think wall street has changed since the 1980s and 1990s? to the wolves still run wall street? send me a tweet. we will see you right back here. ♪
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>> welcome back to "street smart." a live at snow, snow, and more snow.
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a live shot of 2nd avenue between 58 and 59th street. it is 3rd avenue? >> that looks like 3rd avenue. i recognize the mcdonald's. >> our director said i would not like to you. heard avenue going north. >> chris christie sworn in for a second term. going to be a day of celebration but the governor was juxtaposed against revelations of political intrigue. this is all about ridge gate, the u.s. attorney involved. all about the lieutenant governor and mayor of hoboken. >> i live in hoboken. i have had long talks over the years. hoboken has a big corruption
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problem. always has. the man she replaced went to the pokey for taking bribes. i cannot imagine knowing her she is making this up. that is on a very personal level. the allegation that this is what the lieutenant general told her, that you need to do this out -- need to do this deal from the land developers or you will not get any money. have only gotten a few hundred thousand dollars for relief. i have a difficult time thinking she made this stuff up. >> it makes you wonder if we might see more people come forward. >> is christie oh is had a reputation as a bully. -- chris christie has always had a reputation as a bully. if this is true, he is not a bully, but a slug. there is a big difference between the two.
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there is another level beyond being just a bully. it should be a big concern. did not even mention it, by the way. he completely left that one by the side. put it he wants to behind him. i do not know how you can at this point. powers legislative sending out demands for documents from the u.s. attorney's office. those investigation are what drive this. >> he did not bring it up because he feels he has a mandate from the people of new jersey. by 22t his opponent percentage points. he said that as a mandate. people did not want to talk about this stuff, they want to get it done. it speaks to the issue, and you mentioned that allegations.
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there is really no other word for it, bully or thugs. to think about from a management standpoint. one am ceo of a company and of my employees does this, what does this say about the tone i am setting? >> wheelies here about the tone, the tone the ceo that is set for employees down the line. it works in politics, to. does this encourage bad behavior, but also undermines the credibility of the leader. she makes me wonder then what tone is coming down that they think she can do this. he also compared himself to
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a banker. this is what he told another news organization. said i think it is fairly safe that jamie dimon do not know and when people lied about it he did not know they were lying. the immediate attack saying that don zimmer is making this stuff up. the real idea what have been governor christie does not know what is happening here. >> it was not a big deal.
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internal controls are fine, and they were not. >> you have to be careful what you said. if you are ceo or governor of a state, because for what you said . >> all right. jonathan weil staying with us for the hour. always good to see you. we will be back in just a moment. ♪
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>> welcome back on the snow we tuesday afternoon. i am here with mark crumpton. bloombergeil, the deal columnist. >> time for global outlook today. we are focusing on so she,
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russia. today they pick in security sweeps in an effort to choke off new terrorist threats in the region. a few days ago there was a video released threatening the winter games. former adviser to the uk's ministry of good to see you again. what are we to make of this? thousands of troops and police are being deployed. a lot of that not far from sochi. what do we make of this deployment? >> there are a lot of things. the first is i think sochi has always been a risk-on location. the area, the north quarters has been plagued by islamic extremism for the past 20 years. q's so they knew this before the games were even announced? >> absolutely.
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5000 russian soldiers were killed. , andt that in perspective a decade of fighting, you have 2000 300 troops. this area has been plagued. and also by the connection to syria. there has been a declaration. is now a caucasian emirate. for me, there will always be security problems. not a surprise. think about the entire reputation, the lives and safety, all of these people come of the reputation. has not helped himself. he has seen the domestic holidays he has made recently in terms of the anti-gay policy and everything else. this problem is not a russian or putin problem.
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let's rewind back. u.k. had to mobilize 13,000 troops into london. it is the biggest mobilization of security militarization since world war ii. there was an aircraft carrier to point. this is the new world order. we live in a world where there is global terrorism, jihadist. a decision to know they are not doing what they should be doing. >> there are two key threats. the first one is improvised explosive device him a which has been plaguing forces in afghanistan. the second is a suicide bomber. jets, warships and fast are not encountered to this insurgent threat. >> he had the same unit, atlanta, even the most secure
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venue, you have the rest. is there anything specifically we know that they are not doing that they should be doing? >> they have not changed any of the security procedures. they said we are covered and have this well underway. have not made drastic changes to the plans. is a great question. i think it is hard to get an answer to. they have a ring of steel around the sochi olympic. when it comes to a threat of a aack widow, a woman with blemish wearing a burqa is probably one of the most difficult things to defend against for any country. >> anti-terrorism efforts, how do they impact economies in terms of dollars spent? >> another great question. i think for me the real question is if you look at america who
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spent 700 million on defense, the problem is the timeline. the nature of the contemporary threat is changing so drastically. keeping upcy not with the market. fiscal policy could not heat up with the changing nature of the threat. the technologyo required to discover ied's hidden under the rocks, technology required to ascertain whether someone has a suicide vest strapped to them, it is incredibly hard to do. the timelines take years. a problemhink it is that is necessarily associated with putin. go toyou were planning to russia and attend, would it affect your decision? >> no, it would not. i think these were being asked in the lead up to the london olympics. were quiteple
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relieved when london passed without any terrorist activity happening. it certainly would not affect my decision of the wing. the biggest counter to these public, threats are the keeping an eye open. if you see something, say something. it is the biggest assistance to the authorities. >> mikey k joining us to talk about the associate games. good to see you. minutes past the hour. time to check the markets. alix steel joining us as we close -- head towards the closing bell. >> not as bad as we saw earlier in the day. still by almost three points. the nasdaq up by 21 points. overall propped up by european stocks. also, china pumping more money into the system helping. women -- one stock we want to
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highlight is dow chemicals. the chemical unit. on the markets again in 30 minutes. ♪
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>> welcome back.
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nerdy minutes from the closing bell. >> earlier in the show we asked you about the wolf of wall street and whether or not you thought the culture still might exist on wall street. i didn't ask you all to send tweets. fort of april are saying constant, are you going to join twitter? we are working on that. street, reallyl fascinating, provocative. thate asking, how much of
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culture really exist today? wall street culture, mainstream culture. a subset of this. boiler room wall street culture. that is what they made the movie about. think the it you bucket shop, boiler room culture has gone away, some story pops up that reminds us it never really goes away. some are on notice now. term, cockroach egg? >> there is a term that people -- jump from job one fraud shop to another. >> use a fraud shop. when youtly is classify it as a fraud shop? >> highfield sales pitches on
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the phone of widows and orphans, getting them to buy stocks, taking companies public that have no business going public. there? is still out >> absolutely. you do not see companies going public like they used to, >> christopher beal gets pitched by the state of massachusetts. accused out by low was of turning some elderly custom- built to the tune of 800 thousand dollars in markup and commissions. this is his 17th firm since he left back in the mid-1990s. -- one ofy gets me
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the firms he was at was john thomas financial. what i wanted to be able to do is go onto the website, the financial regulatory authority. they have a broker check feature where you can look at the background of a given individual firm. he what you cannot do is say i want to look up every broker in the country and look for john thomas. >> let me share with you some of these tweets. something we are going to work on. lehman brothers is the clearest example. else is the culture has never changed, given that there is not enough human teacher recognition.
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tweet and lete a me know your thoughts as to whether or not the culture is still rampant. they were at firms that got kicked out of the industry. what is amazing to me send theseis very slow to stop types of problems. >> why? this is a self-regulatory body. the sec.ot this is not the real regulator in the sense the primary mission is to protect investors. self-ou have an inventory regulating a big chunk of the industry, it has to be bigger than the industry. they are small fines when people do get them. we do not have the same level of
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enforcement that i think you would get if we had government in control. >> earlier you brought this up, a term you were talking about. you said there is cockroach going on in the industry. walk us through that. firms, a bunch of lynch had gone down. storywas a fantastic about it where they profile it. they profile -- profile of tele that is the moment 10 firms in 20 years. most of them had been shut down at one point or another for fraud by regulators. he himself finally got pinched for fraud. roach there are usually more. >> let me ask you something a little less serious. >> you look at the lifestyle
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there. maybe i am a married woman with three kids who knows a lot of people on the streets. most of whom are married with two kids. they lived ready normal lives. not quite like the size. >> i am asking whether or not that happened then. have people changed at all? you could go in throw down your work plastic card and that was acceptable. there is not a bank in the world right now that will let you spend something like that. you think about the change and dynamic. is it fair to say there is an exception? >> i think banks are more akin to appearances. take client scores
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nowadays, there is a good chance someone will pop out a cell phone or tweet about it and you have a lot more risk. last and grade for money and other things will never change. >> week talked about chris christie. we talked about leadership that that will start from the top down. we want to bew portrayed in the public eye. we do not want shareholders to think we are about this. >> of course. but when you still pay wall street traders to take big risks and a lot of single guys running around with tons of money, you are never going to get rid of that culture. >> all right. we will have more with you coming up in just a few moments. a lot more to talk about. a lot more. the weather outside, we were talking about that earlier.
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it is nasty in the northeast. a lot of snow and wind. it just got a lot worse. >> i have a really good start. snow blanket in the east coast. snowflake inning the nation's capital. expecting 8-12 inches in the northeast. a live shot of the white house looking pretty blanketed in snow. we will be right back. ♪
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>> welcome back to "street smart.z" ." i am mark crumpton. we are going to talk about health care. they say things are still not perfect, but saying things are up and running. remember, april the target for
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enrollment is 7 million. they are not going to hit that come are they? >> are we still talking about obamacare? rex you an interesting angle. one of the points you made is that we have effectively outsourced this website to that is headquartered overseas for tax season. we outsourced to an outsourcer. do not have really strong feelings, but i was surprised that no one made it an issue so i brought it up. they had an ipo somewhere around 12 years ago. what is surprising to me is this is a company for ages that has been criticized for incorporating overseas. a few years ago they were incorporated in ireland. lex now they are benefiting from
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our tax dollars. >> ireland is a major tax shelter for u.s. companies. >> it brings this in another direction, which is whether or not we have the budget -- best tax policy. a secondealth care for . we probably are going to still be talking about it in the future. do you think we will get enough people enrolled to make economic sense? >> it does not look like they are on pace to hit the target. i am not sure where this thing is. i get a sense it will be with us for quite some time. ,> at the very least again there is the leadership question about the rollout. the president said the book -- stops with him.
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kathleen sebelius was questioned by a number of committees when it failed to rollout in october. at some point does this start to die down about the rollout and the conversation shifts to how iny people are enrolling? >> have not seen any real accountability except for the company that screwed this up in the first place. have some serious problems. >> the idea that 20 years from now everything will be fine and will have a good program in place i think will probably be pretty rocky. >> i like to keep changing topics in provocative ways. now to marijuana. the president was quoted in the new yorker. fantastic interview actually. one of the points he made was about marijuana. he said he did not see it as any more dangerous than alcohol.
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the president of the united states saying marijuana is no more dangerous than alcohol. he admitted in much in the article, two. the new gay way becoming president of the united states. bill clinton. barack obama. >> washington state versus colorado. b is going to be the bong owl. >> it is interesting when you look at what is going on in the health-care industry in the billions of dollars in the pain prescription management industry , big pharma has a lot at stake. if you are in colorado, you do not necessarily have to go and get prescription.
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>> it is very helpful for people with severe pain. cancer. that is actually not true. drugs5 there were two under development in the pharmaceutical industry that replacing this. by 2004 it had increased or did increase to 27 under development. andt now there is one draws it is and canada. it is in israel. think they look at it as it opportunity. >> would they rolled this out as long as marijuana is classified the way that it is? >> they would, right?
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there is an economic incentive. as long as the federal law exists, they are incentivized. a supply and demand issue if i ever heard one. jonathan weil staying with us for the hour. stick to assess. stick with us.
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>> the player is airing tonight. guy who in the span of three months goes in and wins $15 million from the biggest names in the casino business lady in black check. he did not cheat and says he did not count cards. how exactly did he do it? what do you think? >> it is possible. i would think they would have enough surveillance equipment. newe will always be innovations by people who want to cheat, but if they had eyes on this guy for days at a time, i cannot imagine they would not figure out he was counting cards. there are basic rules. >> there are a whole bunch of
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different rules and advantages he puts into place. the other thing is he negotiates discounts with the casino. when i said to him, you could use -- lose a million dollars, he said i did not have one million dollars to lose. >> how do you win $15 million? what did he start with? >> he is batting 100 grand her hand. >> you have to be aggressive in your bet. pre-k's the casinos had no idea how good he was. a fascinating story. how great it was to have you here today? everyone should check out his column. his column is really good stuff. going beforeo get you get snowed in. >> i think i will be ok. we will continue in just a moment.
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>> i am trish regan. earnings disappointments overshadowing global news as we head into the close on this very snowy tuesday afternoon. look at that. a mess outside. >> it is. i am already terrified for my drive back to westchester. >> i think there is going to be some traffic problem's. johnson & johnson weigh in on the dow here. rate to have you here for the next hour. >> a pleasure to be with you. adam was up at the crack of
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dawn to do surveillance. he will trudge back home. top 10 right now? >> verizon down despite fourth-quarter profits that beat estimates. less than the record 2.1 million earlier. 3 million more than analysts surveyed by bloomberg had anticipated. the phone company reaching a deal to buy an internet tv service. we have an idea what it means for you going forward. >> who knew? ibm dropping nearly one full percent. the company is due to report fourth-quarter results in just a few minutes. analysts surveyed looking for earnings per share of six dollars flat on revenue of about 28 billion. keep it here. julie will break down the results for you as soon as they cross. >> number eight, expedia. lost 25% ofhas
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visibility on google. they believeows they are trying to gain algorithms to rank higher in search results. >> number seven, all collapse. jpmorgan raises the rating on the aluminum producer. -- number seven, alcoa. >> i love it, too. because they make sale him and him or the new ford f1 50. >> d climbing three percent. quarter profith- that beat analysts estimates. -- benefited from increased holiday travel in the work you all costs. >> number five um under armour gaming three percent after announcing a new partnership with notre dame. they will exclusively design and provide apparel for a equipment and game day apparel for the fighting irish. >> nice.
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hold my tongueto when i talk about notre dame because i am not a fan. >> i love my workout gear. it protects me in the seven degree weather when i am running . >> i think it is admirable and interesting they have made such a push in an area that is so dominated by nike. and it is really cool. >> a push, take effort towards getting the best, coolest, new technology. >> nike has been doing it for decades. they are disrupting. >> can we say that under armour is a startup? >> it was. >> number four, target down after the rating is low word. the firm says target may have to suspend the stock i back program
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in the aftermath of a massive data breach. >> this happens every time you are here. >> i think we can go through the top 10 stocks without worrying. fax number three, johnson & johnson down more johnson & johnson down after they trailed estimates. some say they will not be able to sustain their growth rate. >> new patch is up seven percent. they are looking for a higher bid. can we have that bell again? >> a drumroll would be good here. >> blackberry surging nearly 10% after the department of defense says that the smartphone accounts for 90% of the devices. they are counting on loyalty from customers like in the u.s. government.
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>> basically what happened is the very last holdout guaranteed the customer is still going to use the product. >> they did commit. do say that it has a terrific keyboard. get to -- 's >> i am seeing a headline that a resignation from pimco. it is interesting that it would call from alley ons. let's think about the challenges in the fixed income market. this past year has been such a difficult one. >> would you expect bill gross or with this kind of thing pimco itself to release a letter to investors as opposed to having its parent company do it?
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ok. --will he be endowed posts will he be in davos? will he just stay there and ski? i guess he will because he is not with pimco. i think he will probably land on his feet. he is a very smart guy. before pimco, he was running the harvard endowment. a lot of people were very disappointed with his departure. >> was a 2006 that he went to pimco? or 2007? >> we saw in recent years that it has been more challenging. there had been a big move into
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fixed income. the equity markets are on such a care has been tough. >> i have a few more details. it looks like he will stay on in at least some capacity. >> they always say that. they are tell me what saying. he will advise the board of economict on global and policy issues. he will directly report to the ceo. >> rather than being under the structure. >> there is a shift in its possibilities. >> and means basically nothing. what did he say before that? he is going to be advising on
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global macro issues. all of this is effective in mid-march. it is not immediate. one would think that if it was some sort of acrimonious split that it would be more immediate than him staying on for another couple of months. >> it is interesting that they doing anythingim with pimco anymore. >> we will continue to monitor these headlines and make sure -- tom keene is remain with him. i think it is quite plausible. had a sweet and he is crashing there. >> these are the stories we are tracking. bill and melinda gates are out with their newsletter outlining their philanthropic agenda for the year. mr. gates along with the former
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mayor of new york, the founder of bloomberg lp sitting down with betty liu expose really this morning. bill gates pointed out that a lot of people don't understand philanthropy and foreign aid right now. .> cynicism is holding us back people think a lot of this is corruption. a lot of this is the budget. if you ask people, they will 10%.5% or certainly above >> he is right. there are fewer people starving, fewer people sleeping without a roof on their head. , thingsational measure are better. that does not mean every place and every person and there'll always be a bottom 20%. all of the foreign aid and the moneys at the bill
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and melinda gates foundation and lots of other generous people have invested, it is not true at all. >> i thought one of the coolest things was the idea that by 2035 we might not have any. we will not have any actual poor countries, struggling countries. the level of poverty that we see a thing ofg to be the past. >> it depends on what you consider as poverty. released a study on the world's poor. 50% of the population was making less than a dollar 25 a day. ine than half of the people the whole world. today, it is less than 20% make less than $1.25.
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poverty has been reduced substantially. >> there is cynicism that this will not work, it is a drop in the bucket. it is very difficult. the column was written about this because it is the 50th anniversary of the war on poverty. he says people were skeptical of it and said it has not worked, it has been a failure. he cited one study that said 27 million people have been listed out of poverty because of government programs, various forms. >> that brings us to the next point. he says that it is important to dispel the myth that government aid doesn't work. it does. that might be a crutch for some politicians who don't want to deal with the government. that youoes not mean throw the baby out with the bathwater. there was still be some good. >> it is key that you have billionaires like bill gates
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and warren buffett and mike bloomberg and a lot of others giving money to direct charity. a lot of people have mistrusted government spending and central planning. smartguys are able to do things with the money. >> ibm is out with earnings. eps coming in ahead of estimates. revenue cells by about five percent. .evenue missing estimates here this is what we have seen shifting out of technology. bloomberg reported that lenovo was said to be in discussions to server through lower and business. they have been in discussions before. apparently they are in
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discussions once again. little overs for a 10% of the company sales overall. nonetheless, this is something that ibm has been trying to shift away from. they are saying that this ups will be at least $18. it looks like there is a little -- >> you're trying to shift one into the other and focusing on margins. it is sort of a slippery slope. not been able to get there. they have been having trouble. >> it is one more of the companies that we are seeing missing estimates and under promising for the year. on ibm.that thought peter cook joining us with the development on the former governor of virginia. >> his name was being mentioned as a potential republican
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presidential candidate, certainly a vice presidential possibility. now he and his wife, just a few days out of office face 14 felony counts of excepting gifts, loans, and other illegal contributions. richmond areaa businessman. there has been controversy surrounding governor mcdonnell and his final year in office and now the u.s. attorney has filed these charges against bob mcdonnell. it is a stunning turn of events for someone who is mentioned in the top crop of governors around the country. a former attorney general in the commonwealth of virginia and now he is staring at 14 counts from the federal government. he has maintained his innocence all along and he acknowledged making mistakes in accepting gifts from johnny williams.
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according to the washington post repeating he is emphatically that he did nothing illegal in exchange for those gifts, what he thought were personal gifts to him from johnny williams. he is pledging to fight this in court. latest turn of events in a high profile political scandal in the commonwealth of virginia. he just gave up the job on january 11. he is a new governor, one of the first things that terry mcauliffe did was to announce changes on gifts that members of his administration and future demonstrations could receive there in the state of virginia. >> what are we talking about, a bottle of champagne, golf clubs, a for ari? >> it is interesting that you mention a for ari because at one point bob mcdonald allegedly borrowed johnny williams for ari for a return trip home from a
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resort area back to the governor's mansion but it is a long list of things and it began as soon as he became governor. right around the time of the inauguration. his wife requested help in paying for her dress for the inauguration and she was able to go on a roughly 16 17,000 shopping spree in new york on johnny williams dine according to the indictment and again, since that time, bob mcdonnell has repaid this money but the question is was inappropriate in the first place? the defendants participated in a scheme to use the official position as a governor to enrich the defendants and their family members by soliciting and obtaining payments, loans, gifts and other things of value from star scientific in exchange for robert mcdonald and the office of virginia performing official actions on an as a lot more to come
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out of this investigation. >> a lot of questions. thank you very much. power to enrich himself? you learn something new every day? , this iscumentary airing tonight. i will give you a sneak peek on how to beat the house. it actually can be done. 15 million. we will have more after the break.
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>> the year of the stock picker. here it is, correlation in the s&p 500 is down. 2008 and then to
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2011, correlation spiked back up. improved, allhas of a sudden that comes down. that means that individual stocks actually matter. that means when the negative to positive preannouncement ratio is 8-1. we need to find those that are positive. did today.t we we look at the s&p 1500. at least five analysts have raised estimates over the last four weeks. where the 2014 earnings forecast is expected already at least to be 20%. just those two criteria. out of 1500 stocks, it turns out only 16 made the list. a lot of names you know. i am posting all of these for you. the reason we care, look at that, the proof is in the pudding. this group of 16 is up 4.1%
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earnings growth is really simple >> coming up, how did don $15 million from six different casinos?
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>> we have some updated breaking news. el-erian resigning. his resignation effective in mid-march. it sounds like he might remain allianz,apacity at
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but that is not clear. he was running this. at harvard was book ended by his time at pimco. most recently, he was serving as the coo at pimco. so, a veteran of the company. he will be taking over as ceo. not clear if he will be taking over as cio of the company. it sounds like he would just be taking on the chief executive role for now. >> can you really beat the house? don johnson is a blackjack player who stunned the gaming industry by winning $16 million from six different casinos. he said he did not cheat or count cards. how did he do it?
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>> every gambler knows when you play at the casino, the odds are not in your favor. the house always wins, the rules are set in stone. >> if you play the big six wheel, that we always stick right in the front of the casino, you don't have much of a chance. >> this is the ceo of mgm. you will spend about a thousand dollars. $200etically, we will win from you. >> on average, you will lose 20% of the money you play. what if you could change the rules and twist the odds? >> we will negotiate with high- end players. one $15 million in atlantic city in a single street. >> i beat them big.
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>> he knows exactly what to negotiate before he stepped into the casino. for starters, he will wants a big bet. >> they were letting me play 25,000 at hand. not that hard is to win $4 million. >> the odds are that you would lose $4 million. $4 million toave lose. rebate on his0% losses. once he secured those advantages, he turned his attention to the rules of the game. walk me through the rules that were advantageous to you. >> standing on top. .he dealer gets an 8-6 he has to stand instead of taking another card. two cards. any >> doubling your pets. some have rules that will not
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allow you to do that. splitting hands up beforehand. >> even with his rules, the discount, and the big bets, house still had a tiny advantage. >> there is a house edge built into it. >> not satisfied with those odds, he figured out how to tip of the game in his favor. >> you need to be better than the dealer. >> if you can't beat the dealer, you can't beat the house. >> there are not a lot of players that they will deal 100,000 dollars a hand. they are nervous. intimidate them or distract them? >> there are all kinds of distractions. with me.y i've had 5, 6, 7 girls that would poses a girlfriend. just too distracted dealer? >> of course.
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the more looks like a party, the better it is for my side of the table. what's the worst that can happen? i get a free bed. >> you know when they make a mistake. >> i think i caught every mistake that they made that were not in my favor. >> that is how he took on the casino industry in atlantic city and $150 million and became the legendary gambler who beat the house. won $15 million and became the legendary gambler. >> will we get to play a little? what's we will play a little blackjack because i learned a lot here. we will do more of it. stand on soft 17. >> can i split this? >> yes, if you could.
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, i am assuming that you want me to hit you again. we will be back with more after this.
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i i don't know about you and definitely don't know about you, but i never have enough time. i have three kids, a crazy job. i am constantly trolling for anything in the world that can make my life easier and i imagine that you are too. linkedin has some ideas for all of us. , executivel roth editor joins us with some of the highlights. >> thank you for for adding me. >> what are some of the people saying? what's we asked some of the most successful people in business to tell us how they are more reductive. we asked them to rate how productive they were and almost
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all of the influencers said that they were insanely productive. only one said not reductive at all. .here are a couple you have guys like t boone pickens and diego rodriguez who is a partner. they said to use your people wisely. t boone walks around every -- have youwith got anything? he hears tips, he hears ideas. he can be much more reductive. >> i find when i stop and talk to people, i become that much less productive. >> if you are stephen cohen and you walk into someone's office, that might be helpful. >> some good old-fashioned conversation. >> rodriguez says a similar thing, and he says that you never stand when you could be
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sitting. he says, never e-mail when you could be having a phone call, never have a phone call when you can video chat. he only uses e-mail when he has to. >> i agree with that. i don't know about the video chat thing because i am not fully embrace that. >> i think -- >> it is much better than e- mail. you get that contact and that direct connection. there are people, you have people like trish, you said you are a big fan of using the airline applications. what that they done for you in terms of making your flights? can i make my flight? >> yes, you don't check any bags. >> i never check a bag. i learned the hard way when i was on my way to the canadian sub arctic and i had very special weather gear and the airline lost it.
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that's it. i will never check a bag again and i have it. i married in italy. wedding dress, everything went into one carry-on. >> wasn't made of some kind of special material? say that she is different. think about what it done. cam use this app called card. .nat that scans the card it increases the productivity so much. previous contacts that would end up in the bottom of my desk, i am using them to do business. >> another example of people using them in an opposite way is turning their machines. you have a guy who was an unproductive writer who said app to had to put ian
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shut him down. he was writing a book and you need to focus on his writing. he said, how can i do that. he cannot connect to the internet unless he puts his computer off and then back on. >> this is interesting. if you are doing something like a book, you cannot be getting interrupted. >> adderall works. >> nobody suggested that. her ownto think about internal clocks. she gets up at 4 a.m.. >> does it make it more productive? >> richard branson only wears one contact lens. -- sed his glasses as a way
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he started using just one contact lens so he does not have to wear glasses at all, he discloses one eye and he can read. he opens the other so that he look far. think about, timely saves -- think about how much time he saves. there was a good one. maynard webb said that he will not take coffee with people. a lot of people say, what if we just went and get coffee. you cannot have coffee with him unless you give him an e-mail explaining everything you want to talk about. >> he does not feel like socializing. >> he thinks they are a waste of time. >> arnie sorenson is saying make every meeting count. he is right. how many do you go to?
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>> if you are being more productive and the way you answer is no dillydallying, that makes sense. >> this starts every day. can only last seven minutes. that is the way they do this. >> like a tv segment. seven minutes you are done. thank you very much. we appreciate it. you can connect with me on linkedin. that is an old screenshot. thanks to your influence. a lot of fun to do. i want to know, what are your productivity suggestions? i also like to do a electric razor. i can do that while i do other stuff in the morning. it works.
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-- ng up >> verizon announced that it is tackling pay-tv with their acquisition.
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with somelie hyman breaking news on blackberry. they are exploring the sale of the majority of its canadian real estate holdings. at the same time, the ceo says that the company is committed to staying with its headquarters in waterloo in ontario, canada. they will be raising some money through the sale of these .oldings blackberry not commenting on how much it might raise in this sale but it looks like investors are happy about it. the shares rising in the after-
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hours, actually above $10 a share share for the first time since last september. it has all ready gotten a leg up in today's session on news of the government, on a department of defense contract. that is giving no shares another leg up on the news they will be trying to raise some capital on the sale of real estate. >> let's move on to our big story. .erizon and the future of tv the company reported first- quarter profits that beat analyst estimates and announced they added 1.6 million subscribers. less than last year. one .3 million forecast. -- one point 3 million forecast. they agreed to acquire an intel internet tv startup. they will have programming over a high-speed internet connection making it a three to cable companies that use dedicated lines.
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for more on how this could take up the pay-tv market. and ourjon erlichman television editor. how competitive could this actually make verizon? atit is really fun to look the chess pieces in the world but his pay television. absolutely could make verizon more competitive. right now we are talking about the potential consolidation in the cable world. if you are verizon and you have your files service, how do you compete? became a service that available because intel threw in the towel and said, this really isn't our business. content rights for offering a service like this. verizon already has the content rights.
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there are about 20 or so and big ones like new york, philadelphia, los angeles. serviceckly, with a like this you can get into a whole bunch of other markets and maybe with some fancy new technology. >> how did intel get started? intel was looking across the technology landscape. this video is a place where they can make the mark and get in with some technology that we have been working on anyway. all we have to do is reinvent the cable industry. we would like to have the rights to distribute through the internet instead of through a cable tv system like verizon and comcast. that turned out to be the challenge. it turned out to be really hard to get viacom to sign up for this kind of service because they have a great business model right now. they are charging higher prices every month.
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>> rather than sign up for service, they got someone to buy it. >> they look at the numbers and said this is too much for us to get into. >> when you think about what your phone is capable of, versus what your cable system is capable of, i think about my parents, for example. they kind of bypass them rock band connection. they are watching everything on their phones. this is like unlimited data. home to new hampshire and it is quite annoying because i cannot get that wireless connection. i have to do it on my phone. is that potentially the future? might people be choosing to get content through their ipad, their phone, or even their television system but not in the the actual types ground? >> that is what intel is trying
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to get to. they were trying to rethink the set top box. channel.hange the they're looking at video online. they cannot get to that will point. this technology will give them maybe a year, maybe even more advance on what they were working on internally. >> do you hear a lot of people in media talking about rock band over the air, broadband coming down from satellite rather than three lines in the ground? >> i think people get frustrated with that old- fashioned cable grid. take with you even though they are trying to make it easy. that opens the door assuming there are good internet connections. we will be talking a lot about netflix tomorrow. they have a pretty good dvd business.
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there are some parts that it is frustrating to be reliant on your internet. if apple will jump into this business. you hold the phone, you have the apps, why shouldn't of the tv people the same way? >> how great would it be to not have to actually walk the physical equipment back to the cable company? >> or call the cable guy at all. >> yes. that is progress. if we can get beyond that, that is progress. >> but not for the cable guy. he will be hanging out with the maytag repair man. isare looking at what coming up next. "taking stock" we will be talking about a crisis in syria and the region. refugees from the civil war. there is a peace conference in
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geneva. if it does not reach piece, what will he do for the refugees? i will be speaking to the head of the international rescue committee. find out what he is doing to alleviate their suffering. that is coming up.
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>> it is time to bring you the business behind the media, entertainment, and pop culture. "philomena" doesn't look like it would be a good movie, boring.
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but it does look like it appeals audiences.h older jon erlichman caught up with the producer. coogan. >> it was put out in wide release in late november. the weinstein company only has one film in the best film category. you will see a big marketing push. steve coogan read an article about a journalist who helps an older woman figure out what happened to her young son who had cheered given up for adoption years ago. not exactly the story that everyone will greenlight in hollywood hollywood. here is what he had to say. in hollywoodn that they are all obsessed with
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the 18-24-year-old market because that is where the big money is. othermetimes hear that people don't go to the cinema. maybe it is because he don't make films for them. maybe if you make it for a wider audience, they would show up. i think that this is an example of that because the box office is doing very well indeed. >> there you go, he's feeling a little bit of vindication. >> have you seen "the trip?" >> no. but it is very funny. lex i have -- >> i have a movie that you need to watch tonight. the secrets of the las vegas whale. give matt miller a few blackjack tips. you can see -- >> i lost. 17th.tood on the i learned. >> you have to.
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>> you will learn tonight.
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>> bloomberg television is on the markets. let's get you caught up on where stocks ended the day. overall, it was a relatively mixed day. on the one hand, you had the imf upgrading the global growth forecast. on the other, disappointing earnings results. some earnings coming out after the closing bell. it was a mixed bag. fourth quarter operating earnings were a beat but revenue came in just under 28
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billion. gross margins falling slightly as the 2013 outlook fell short of estimates. one name we are watching is blackberry. the company is divesting the majority of its real estate holdings. for more on this, we are joined by hugo miller joining us in toronto. what is the price tagged in your estimation? >> we are trying to get an actual sense of this. is butt know what this it is about 3 million square feet. blackberry says they're getting rid of more than three feet. guess that this will be many hundreds of millions. it would be perhaps more than a billion.
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to our add this coverage. but the stock is rising on this news and after hours. what kind of confidence is it in the ceo? voteis will be yet another of confidence. the stocks are up. what he has done since he took over is talking to investors and much plainer language, not sugar coating the that blackberry has. he has a plain speaking with a series of concrete steps. that is what investors wanted. they finally want someone that can start to make real change and bring in people that they have confidence in. >> the u.s. defense department named the company as its primary
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device that will be used on the new network. we are talking 80,000 blackberries, put this into perspective. >> there was little confusion. the pentagon was suddenly ordering 80,000 blackberries. essentially what is happening is that they are very dominant. this is with the pentagon crowd. the dod is launching its new network on january 31. 98% they are hooked up to our blackberries. blackberry is gone. in government circles, they are the dominant force. >> thank you so much for putting blackberry into perspective. we want to keep you updated on after the closing
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bell. he will be leaving in mid-march. he will be taking a position at allianz. .
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>> this is "taking stock" for tuesday, anywhere 21st, 2014. i am been fox. -- pimm fox. one of the largest ski resorts in new england. we will hear from how the snow is benefiting the ski industry. we discussed the music moguls behind music. it is a new streaming service that debuted today. small pizzathe owner who hopes to


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