Skip to main content

tv   Lunch Money  Bloomberg  January 24, 2014 7:00pm-8:01pm EST

7:00 pm
>> welcome to "lunch money" where we tie together the best stories and news. let's take a look at the menu in davos. what is better than a bunch of suits in the swiss alps? dancing suits in the swiss alps. the biggest wake up calls. netflix goes behind the scenes of the romney campaign. how do you sell the best corner in the game after a rant like that? pop stars set sail with new content.
7:01 pm
pirates are on board. today is a big day in the history of business. the mac computer turns 30 years old. steve jobs unveiled the first macintosh computer on this day in 1984. it essentially began the modern era of the pc, which is going through a bit of a crisis right now. it is knows the price apple's growth comes mostly from mobile devices. it is worth a few seconds of your time to look back at our old friend mac. >> ? >> today, for the first time, i would like to show you macintosh in person. >> hello. i am macintosh. [applause] >> that is what a computer is to me, the equivalent of a bicycle for our minds.
7:02 pm
♪ >> you saw the first sales drop in 10 years for the mac. 10 years ago, it made up nearly 60% of apple revenue. today, 12%.
7:03 pm
that might play as much to the fact that a lot of people by iphones and ipads as much as it does to fewer people buying pc's. global pc shipments fell 10% last year. that is one reason why lenovo decided to buy the ibm server unit to expand into other businesses. >> from a commercial perspective, we are number one in commercial. a lot of our customers have asked us to expand our portfolio. this gives the customers we are targeting the opportunity to have a bigger portfolio. >> no string to the shifting computer market. he just took his company private to get away from the scrutinizing eye of the
7:04 pm
investor. >> the hardware part is still an important part. value is shifting to new areas like services and software. these are areas where we have invested tremendously. we have done 30 acquisitions in five years. we have built a $21 billion enterprise business in these areas. as a private company, we are intending to focus more on those areas. >> not surprising, dell says the death of the pc has been greatly exaggerated. >> the death of the pc has been talked about a lot. it turns out there are still one million of these devices sold every day. >> are you kidding? >> this has been hugely successful in india. how do you differentiate? what is the distinction of this product versus a more high-end apple or microsoft? >> our tablet business is taking off in 2013.
7:05 pm
it doubled from the second to third quarter. it doubled again second and third, third to fourth tripled. there is differentiation in product and services. the real issue is how to integrate this securely into a company's operations. make it work. not just about the product. it is about software and services and understanding how it works within a company to make people more productive. >> part of being private, you will try to shift the lions share of your revenue to software services or will you still be thought of primarily as a hardware company in five years? >> we would love to see our other businesses grow that fast. we still have a substantial business in hardware. i will tell you, it is a good business for us. it is a great foundation for us to build relationships with customers. it is an entree into systems management and security. we are entering the data economy. >> microsoft appears to be doing something right. it posted record sales in the final quarter of 2013. people are scooping up xbox one and cloud software. windows for the pc is used on most office computers on the planet. the cfo says the pc market is
7:06 pm
stabilizing. apple is still cranking out mac pros. the company released this cool video to showcase its production in the usa. times have changed a lot since 1984. steve jobs and apple are a big reason why. we will be right back. ♪
7:07 pm
7:08 pm
7:09 pm
7:10 pm
>> the world economic forum annual meeting is all about business, especially when it involves booze an strobe lights. this was the rage are at the
7:11 pm
epicenter of partying. mckenzie holds the party every year. people look like they are having a lot of fun. last night, jon stewart called what happens at davos self- congratulatory excess. if anyone got skewered the most, it is the banks. people blame the big financial institutions for the financial crisis. the people in charge know that. here is their side of the story. >> we will be in the penalty box. why not? it was a big trauma. there were a lot of causes. one has to be poor risk judgments made by certain banks. to the extent banks were getting a lot of benefits from their good risk management, and it turned out to be flawed, it is fair you pay some price and reputation when it does not go
7:12 pm
well. >> this is the most damaging financial crisis since the depression and maybe before that. with all the home foreclosures, bank failures, and the impact it had on the global economy, it was devastating. it will take a long time to recover their trust. it is not surprising. >> it is a slow recovery. consumption is in low gear. it would be hard to expect this recovery to look like any other. it will be more slow. >> the purpose of a financial institution is to help customers and clients live their lives. we have done everything we can to narrow the framework of the business. as we continue the compliance and risk infrastructure we have been building on, a think you will not find those things repeat. we are still in the process of cleaning it up.
7:13 pm
>> we can make all the technocratic changes you like, but we have to change the culture in banking institutions. that is what we are very focused on at barclays. culture change takes a long time. what i require of the organization is steady progress in building the right culture and rebuilding trust in the institution. >> we have gone three significant transformation of our company taking it back to its roots of being a global bank and the things that come with that and what we can do on behalf of our customers and clients. the exit of the asset management business. we shed citi holdings that did not fit with who we are and who we want to be. >> outside the corporate world, there is a parade of political leaders. christine lagarde sat down with francine lacqua. she had advice for ceo's. >> ring women to the table and celebrate them and encourage them. mentor and help them. you will do good to your company's. wherever you can incentivize innovation and create jobs, go for it.
7:14 pm
>> is there something in our dna that has changed because of the crisis? >> for the better. i'm thinking of the old greek principles of balance, measure, fighting against excesses, eliminating abuses. if we have not learned that on the occasion of the crisis, it is a pity. >> have we learned something? >> the future will tell. we had better have. i think we have. >> british prime minister david cameron also making the rounds. he is there for the same reason iran's leader is there. it is because he wants people to give him money. >> it is hugely important.
7:15 pm
in the first six month of last year, britain was the most popular destination for foreign investment anywhere in the world. one of britain's great advantages is we are not embarrassed we have chinese investment. we are not embarrassed indian capital is building up the company. we're proud of that. i have been meeting with business leaders looking at written and bringing jobs and investment and will to our country. having a country that says we
7:16 pm
welcome your investment into our infrastructure gives britain a great competitive advantage. >> after business is done, it is time to unplug. hans nichols spent the cocktail hour with a network or to learn the finer points of working a room. >> i'm david jones, the cofounder of one young world. up until two weeks ago, i was the only british ceo. the main reason i come here is you can see in one day more people you would love to get to see a cross a year. nobody feels like we have to do half an hour of polite conversation. we make no apologies about the fact that in a 15-minute meeting you can both get what you want. you can spend half of your life in queues. do not bother checking your coat. i can tweak it and she will not be fazed by that. other people are less comfortable. it is about knowing people. it is nonstop events and parties. a lot of work during the day.
7:17 pm
everyone stays up too late, has too much to drink, and has to get up early the following morning. >> it is not all partying in davos. goldie hawn invites you to take time out. she is hosting yoga classes for stressed executives. we asked executives for the best tips on managing stress. ♪ >> do you have any tips for stressed managers? >> just having fun. >> you are engaged with great people. there is opportunity. it is interesting. it is stimulating. it is worth the slight stress for the positive experience of having the privilege of running these large businesses.
7:18 pm
>> do what you like. if you do what you like, you will do fine. spend time with the family and people you love. ♪ >> sometimes i feel stressed. it seems a bit of an indulgence when you realize how lucky you are. >> you have got to have things outside of work. the work cannot consume every minute of your life. you see it when you come to work with a healthy attitude, when you have other interests, when you get exercise, it clears your head.
7:19 pm
>> back at home, we are tapping ceo's for wisdom. like what surprised them when they made it to the top. richard sherman's agent tells us how he is handling a viral and lucrative situation next in sports. before break, it is the world's best chess player versus the world's richest man. in this clip comes to us from our friends at nrk television. the match did not take long. here it is in the raw.
7:20 pm
7:21 pm
7:22 pm
7:23 pm
>> we are focused on leadership. betty liu is out with a new book on what ceo's say you need to know on what how to get ahead. this week, the biggest names in business answer different question each day. today, what surprised them most when they became ceo. >> how much wasted time there is being a public company. it is easier when you are
7:24 pm
private. >> how many constituents you have got. you have to adapt to different levels of sophistication and at the same time, present morgan stanley so each constituency understands our role in what we are doing to help our clients. >> every move is scrutinized. you have to be on all the time. >> another ceo transformed a hotdog cart into a global fast food chain. what surprised him about becoming a ceo? >> i think the biggest surprise is it started with a hotdog cart in madison square garden with no intention of being more than that. the fact that we opened our 41st restaurant in boston a few weeks ago, the scale we have been able to achieve, the way people associate with it has been a blessing and surprise. >> the biggest thing you have learned? >> stay true to what started this thing. the bigger we get, the smaller we need to act as a company. that means looking back and saying, would we make the same
7:25 pm
decision today we had when we had one? if we do, that will guarantee our success. >> the biggest mistake you made and how did you recover? >> one of the biggest is early on, we started to grow fast and go to some communities before we were ready. early on in new york, we went to a community and learned that community was not ready for the lines and big building of shake shack to be there. we pulled out of the deal. it was an early mistake that taught us about the way we connect with our communities through charitable efforts. >> you can watch all of betty
7:26 pm
liu's interviews with global leaders on how to get ahead on house speaker john boehner gets a few laughs on late-night t.v. we will hear what is so funny about partisan politics next. starz is getting michael bay for the new pirate show. we will will hear about what makes content cell. ♪
7:27 pm
7:28 pm
7:29 pm
7:30 pm
>> this is "lunch money." on bloomberg television, streaming on your phone, your tablet, and you can also see is on your tablet and smartphone area i am matt miller. the video is the story -- a break in the lufthansa heist more than 30 years after a hooded gunman pulled $6 million airport heist dramatized in the movie "good fellas." an elderly man was arrested at his home in connection with the crimes. vincent asarro entry of the defendants were charged with murder, robbery, extortion, arson and other crimes from this late 1960s through late last year.
7:31 pm
they were famous mobsters to begin with. antigovernment protesters stormed a key government building in the city of turhiphill ukraine. protesters in ukraine have occupied the offices of key government buildings in five western cities. the demonstrations began two months ago after yanukovich ditch and association agreement with the eu in favor of a bailout loan from russia. rafa nadal beats roger fedor in the australian open to advance to the final. he will face another swiss surprise finalist and number eight seed. in sunday's final. d in politics, let's go back toavos where majority leader eric cantor discussed what leaders there are expecting from washington, d.c. >> can america get its fiscal situation straight? we know we've got to do
7:32 pm
something about the fiscal situation. the democrats six days the demographics on the health care structure is you have to change the entitlements. >> is it realistic to do that? >> administration demonstrated that a want to do that. >> what is your game plan? >> we all want to grow the economy. we grow it and that means more jobs and upward mobility. there are things that we have in common with the president like skills. he has talked about the need to close the opportunity gap. we passed the skills act. that is something he should embrace. there are plenty of things we can work on together like regulatory relief. we are asking for some cost- benefit analysis and the way that washington promulgates regulations. that is a good thing for growth.
7:33 pm
>> house speakerjohn behner talked bipartisanship. >> speaker of the house, john boehner. [applause] >> this gop infighting, is this the worst you have ever seen it? >>no, maybe it is. [laughter] it's bad. the funny thing about the so- called infighting is that we agree on all the goals. we think obama care is bad for the country, we think we should not spend more than what we bring in, we think the president is ignoring the loss.
7:34 pm
it's all a fight over tactics, it's not over what our goals are. >> mitt romney, the documentary "mitt" premieres on netflix tonight. it follows him and his family from his primary bid to his 2012 residential loss. >> what would you say in a concession speech? >> i will read what i have here. i wish all of them well. thanks to the first lady and her daughters. i hope they will be successful in guiding the nation. should i slice that? >> viewers are likely to learn a lot about the otherwise private mr. romeny. here's what else -- >> can this documentary -- you saw this more human side of him. you also saw a little bit of his reticence in terms of his wanting to be a candidate. because the staff was eliminated from this documentary film, you got to see the candidate and his family. i think you got to like him a little bit more but i'm not sure he really felt he wanted this. it look like this is something he was driving for or has pushed. >> you are running the opposition campaign at the time
7:35 pm
-- did you know there was a different met romney out there that you might have been afraid of had he been able to committee k to the public that personality? >> i think it was his positions that cost him the presidency and middle-class voters thought president obama was more in line with their thinking. you are in a political war fighting to the death to win. you have respect for the other side because a presidential campaign is a grueling thing. that moment you just showed is what you driven a campaign, calling your opponent to concede. you got to tip your hat to him because you know what they went through. there are obstacle courses and you feel for them because these are tough things, tough on your family. i will watch it with great interest. i doubt there will be a mitt '16 bandwagon. >> the 20 16th republican contenders were handicapped and
7:36 pm
mitt romney was listed as number 10. he says the movie could provide a catalyst. there is a sense he could turn some key states he narrowly lost last time around. he can raise a lot of money very quickly. >> we get swept up in these moments. a few months from now, i don't think anyone will be talking about mitt romney. he has said himself he has run his last race and i think he means it. these things are hard to do twice in a row. >> the documentary is now available for streaming on netflix. managing a viral video, the richard sherman manager tells us about his future. floss, the super bowl of squash is being played in grand central terminal. the number one ranked player tells us about committing -- competing of that iconic building next in sports. m germany'saria holthreis won the world cup in italy. she was overall champion in 2011 at sets the pace for the blistering time of one minute, 17.84 seconds. ♪
7:37 pm
7:38 pm
7:39 pm
7:40 pm
>> this is "lunch money," on bloomberg television, streaming on your phone, your tablet, and and available on your tablet and smartphone. in sports, after the seattle seahawks beat the san francisco 49ers to advance to the super bowl, sunday, the seahawks cornerback richard sherman went on a fiery rant about his rivalry with the 49ers wide receivable -- wide receiver
7:41 pm
michael crabtree. >> [inaudible] that's the result you're going to get. don't you ever talk about me. >> how is this being received and will it impact the potential sponsorships? we asked his marketing manager. >> the perception immediately following the game was that there is was a bad -- there was a lot of outcry from the public. people have to understand the switch that it takes a lot of these players to play at such a high level. it is a championship level to put your team the super bowl is not something that is a late blips on and off. there is a reason why the league usually has a 15-30 minute cool off. before there is an immediate interview. when you look at the timeline -- if crabtree does not shove him in the face, do we get that reaction? that set him off more. it led to emotions taking over. >> how do you market an athlete in the middle of a storm like this? >> we have been telling that story all season long. you look at richard's body of work -- >> it is a great success story? >> it's amazing what he has been able to a compass from a diversity standpoint. you look at some of the greatest athletes to play this game like
7:42 pm
ray lewis for it he was a beast on the field but off the field, he is an incredible guide. there is a switch that goes on and off for these players to play. brands are loving this right now. the feedback i'm getting -- i have a couple of brands that were questionable they have come around and are realizing that he is trending in poland, come on. >> what about in the case of a tiger woods where people are not responding so positively? he lost the nike deal after his scandal. dennis rodman always seems to have a challenge getting sponsors and now he is in rehab. scandal and at least does not necessarily work well together in terms of ad dollars,. >> everyone of those contracts is language that allows them to
7:43 pm
get out of an agreement. the most common conversation among brand managers is that they will put millions of dollars behind this athlete and i don't know if they will cheat on their wife or raped some girl or killed dogs and that is real talk. >> that's also the biggest tie knot i have ever seen. we will move on to the super bowl of squash where people dress more conservatively. the jpmorgan turman of champions, it brings the best squash players together to compete in the grand central terminal in new york and we sat down with a three-time world champion, nick matthew, who spoke about how he got big-name sponsors. >> i think the venue speaks for itself. you see squash tournament around the world that have grass courts in front of the pier mids in cairo or on the harbor in hong kong or grand central station in new york and they are iconic venues. it is something amazing the jpmorgan is getting behind it.
7:44 pm
>> you can also make some money. >> i have seen you working out. you know how tough it is, the training behind the scenes. it is top so it's a privilege to play in these venues on that sort of stage and at the platform. >> when did you start? >> i started at eight years old and i'm now 33 years old. >> you got a few more years. you did discrete squash, a program where you take it to the inner city and give them tutors and teach them how to play squash and get them to college. >> it's a great program. they've got street squash, city squash an amazing open programs around the country. america is leading the world in terms of getting underprivileged kids into sports and squash is amazing. the kids are so inspired to see the game. >> what do you tell these kids? >> i tell him get to grand central and be inspired and hopefully they can go on that court themselves.
7:45 pm
>> street squash is an amazing program in harlem. definitely check it out. nick was knocked out of the turman at -- out of the turman on tuesday. the final round is held tonight at grand central right here in new york city. starz is set to start a new program this weekend and a bigwig movie maker, michael bay, maybe he will do well here. we will get a behind the scenes look at the new show " black sales" next. ?
7:46 pm
7:47 pm
7:48 pm
>> a big weekend coming up for your television screen. if politics is not your thing," i, frankenstein" comes out tonight. aaron eckhart plays frankenstein. starz is premiering a new show called "black sails." michael bay is behind that in the two top actors stop by us to talk about it. >> it feels more like a western. >> we are looking at the historical context in getting back to what the real-life pirate lifestyle would have been
7:49 pm
like. >> also, the economic mechanism. once you attack a merchant ship, you get the booty and what do you do to make money out of that? >> that's where you come in. >> tell us about the overall story. >> it's a prequel to "treasure island." we are looking at the island and the town of nassau. my character takes and pirate goods and sells it back to merchant ships. it looks at the way in which piracy worked as an economy and looking at how colonialization and piracy were running alongside each other.
7:50 pm
>> hbo and amc are changing the way we watch stuff with interviewing and stories told over eight one-hour episodes. >> enacting terms it is fantastic because you get to take a character and go on this enormous journey with them. in movies, you have a short. of time to tell a story. you have very stereotypical characters like good guys and bad guys and love interest where in this come you can tell these incredibly complex stories through complex characters. >> know when is a hero and no one is a villain, everyone is in a gray area. you quite often fall in love of the character and you realize they have to be despicable to
7:51 pm
survive. it's an interesting story and i think it will challenge viewers. >> you will be able to watch this andstarz is announcing lebron james and curtis jackson. s here is thetarz ceo >> on the collaboration. >>it was an idea of his that he developed. he developed it with an african woman writer, the first black female writer for mainstream television that came with a great idea. we have been edited and something in that world but it is a universal story in the sense that it is about be careful what you wish for, you create a life for yourself and you get what you think what you want and you realize it is not what you want and you try to re- create yourself as something else and it's not so easy. the people you think of the right ones for you to be totally the wrong ones for you. it is a starcrossed love story. there is a lot of action. >> what about lebron james getting into comedy? you guys are working on a show. >> he partnered himself with some pretty impressive people. i thought i was not that interested in comedy but i would
7:52 pm
sit down and made this guy. i listen to the idea and i thought we will do this. we developed it and it's based on -- loosely based on their own experience of coming out of the neighborhood -- the projects -- and finding success and at the same time feeling like you want to give back and having a lot of people who are trying to come along and hitch themselves to your wagon. yet, realizing your worst nightmare is to find yourself falling back there and knowing you have to protect your future. >> if you're not going to watch frankenstein or black sails, at least you got the super bowl coming up. at least one point 25 billion chicken wings -- 1.20 5 billion chicken wings will be consumed super bowl weekend.
7:53 pm
7:54 pm
7:55 pm
>> it is 56 past the hour in a means bloomberg television is hour in a means bloomberg television is "on the markets" you have the s&p off by the radiating points, below 1800
7:56 pm
points. below the 50 day moving average. the nasdaq, the biggest loser of the day off i over 2%. it was really a slow ryan lower all day. is the sharpest decline in the s&p since june. it was a very ugly day. was of a pullback. was it a correction. that is what they were asking going forward. the dow jones reporting walmart will lay off 2300 sam's club employees. that is numeral two percent of the workforce. it is the biggest layoff for walmart since 2010. the goal is to reduce middle managers. i am joined here by jeremy.
7:57 pm
a it a selloff or is it correction? particular had no relevance. -- likewise, i do not inc. anything is different about that. what triggered this? here in the finance world we are triggering it to the weaker markets. a huge decline in the 10 year treasury-year-old as well. if you take a step back and look at all the data, we sa actually had decent ones out of your. there's kind of a real fear over this. i think we shifted to a market and balance. they've gotten ready to dance with paper. we are being made to buggy.
7:58 pm
still in control. >> you think this is more about still digesting the fed taper. >> you're pointing to emerging markets. there are a lot of nonperforming loans. a lot of inflation. a lot of political stability. people last year made a lot of money in the stock market. their thinking maybe i should have a look at the environment. i am not in favor of calling today a panic. there's a lot of discriminate selling. more lower. you're looking into the weekends. opportunity,uying the pullback they had been waiting for? >> a lot of this is noise. the more global and thematic
7:59 pm
issues tend to end in pricing issues that we can take advantage of. isarly next week's statement the big girl in the room. taper and more selloff. is that what you are looking for? >> if you are in the bond market, we have not seen that the end of last year. i think i would be pretty nervous about holding onto rates. heading into the smo see meeting -- fomc meeting. ♪
8:00 pm


info Stream Only

Uploaded by TV Archive on