tv Money Moves With Deirdre Bolton Bloomberg January 29, 2014 2:00pm-3:01pm EST
the s&p 500 down 6/10 of one percent. index isq composite down nearly three quarters of one percent. >> the taper continues. the fed is reducing its bond buying from the current $75 billion to 55 billion dollars a month at the final meeting of head chairman ben bernanke. the forward guidance remains the same. much of the language remains the same. there is some news comments with regard to the economy. perhaps the most important section within the statement itself. it says -- and it's a repeat of the last statement -- if income information broadly supports expectation of ongoing improvement in labor market and inflation moving back toward its longer run objective that the meeting will likely reduce the asset fund objective, but asset
purchases are not on a preset course. contingentill remain on the committee outlook for the labor market and inflation for the success of the likely efficacy and cost of such purchases. with regard to the economy, some new language here since the last meeting. there are indications of growth and economic activity picking up in recent quarters. labor market indicators showing further improvement. the unemployment rate declined but remains elevated. household spending and business investments advanced more quickly in recent months while the recovery in the housing sector slowed somewhat. market is having become more nearly balance, and then finally, i want to read you another section here. the same language we saw previously, maintaining that stance of the record low rates and highly accommodative stance of monetary policy. the committee continues to anticipate that it likely will be appropriate to maintain the
current target range for the federal ones rate well past the time that unemployment rate --lines below 6.i've percent 6.5%. the brodeur was unanimous, and new voters this time around, everyone in support of this statement, the first time we have seen that since june 2011. two additional statements are being released at this time. one is a technical note explaining how the asset purchases will proceed going forward. a second note also with regard to the fed testing and overnight reverse repo facility in anticipation of moves down the road. that exercise will continue for one more year. the terms have also been modified somewhat. the fed getting ready to make additional moves in the future, reporting some additional pieces in place to be able to make some moves down the road. the bottom line -- the final meeting for an bernanke as ed chairman -- the final meeting
for ben bernanke as fed chairman. >> thank you so much. let's get a quick check on the market reaction. we did see a bit of a spike, but right now, the average is still lower. dow jones industrials down 100 41 points. the s&p 500 and the nasdaq composite index art down .75% -- are down .75%. let's get some reaction to the head and announcement -- the fed announcement. >> the fed state away from any kind of controversy. they noted that the economy was showing mixed signals in january, but "on balance" was the term they kept using, in general, the economy continues to improve, but they kept everything pretty much the same. they continued with the taper as forecasted. they are going to keep an eye on
it. did not put any new threshold in or change the forward titans. looks like then bernanke -- looks like bernanke decided he would just punch it over to janet yellen. if anything comes, it will be on her watch. >> not a surprise. it is important that they kept their inflation mandate in tact, and i think it is important they will be doing the reverse repo operations. one of the things that has happened with this new reverse repo facility is that during times that tank talents sheets sheetsct -- bank balance contract, it's important to keep interest rates above zero. close toey rates of so zero that one balance sheets contract, interest rates go down. better than interest on reserves have. i think it is a very important tool. >> i wonder if that is a technical move, the fed's
authority expired at the end of the year. they had to renew it, and they wanted to keep at facility in place. there was concern from some people on the fed that if they announced a would make it permanent, people would read that as a monetary policy move, and they are not ready for that yet. >> that might be. one of the things the reverse repo operation does is become keeping parcel to monetary policy kind of stable during a time when they are buying a lot of bonds. at the same time, you have cuts to things like t-bills because we have better deficits than we have had in the past, and the federal reserve introduced just this morning a new floating rate note row gram, which went very well. that is going to mean that the treasury department is going to wind up cutting bills even further. with liquidity building up and more demand for it, the fed is a little bit worried -- what happens if t-bills and the repurchase agreement market wind up trading at zero and
potentially negative? they would like to avoid that. wanted toook, you jump in? >> with regard to the reverse repo facility, the fed went out of its way to make clear this is not a change in stance. there is a paragraph about earlier operational revenue that says, "this work is a matter of prudent advanced landing by the fed. these operations do not represent a chance -- do not represent a change in stance." there are changes to modifications of the program. the allotment size. the cap has moved up to $5 billion, i believe it is, from $3 billion. the fixed rate continues to be authorized between zero and five basis points. current operations will be maintained at .03%. all current operations will remain the same. they are being smart here, getting ready for the future, but this does not mean something is happening. --bernanke's last meeting
who ran this meeting? >> bernanke likely ran the meeting. in january, the chairmanship of the open market committee, the people who vote on interest rates, is not necessarily automatic. they vote on who should have that job. it is always given to the chairman. last time when alan greenspan was leaving, his last meeting was january, they voted him chairman for the day. bernanke probably voted chairman for three days until his term is up. they noted that they would hold an e-mail ballot and elect the next chairman, who was the next -- and elect the next chairman. bernanke, we saw, voted much the same as alan greenspan did. for many fed governors, their last meeting, by tradition, they do not. >> markets still trending lower. what did wall street here or not hear? >> trending lower, but as we discussed, not a lot of surprises or shocks in the market. that is what analysts were writing about this morning. i have one note from an analyst who says theties
fed does not want to create any disruptions, and that is basically what i'm looking at. the yield on the 10-year note coming down a little boy -- a little bit, maybe two basis points. we are seeing continued pressure on the equity markets, but again, that looks like a lot on the earnings forecast, and we are seeing gold taper a little bit on the back of this fed decision, but a lot of that looks like fear trade money coming out of the merging markets and into the safe havens of u.s. treasuries. >> before we wrap this up, i guess we would be remiss if we did not talk about bernanke's legacy. >> i think he was the right man for the right time. the fact is we went through a terrible financial crisis. guided that bernanke things just well enough that we really avoided a worst-case scenario. i think perhaps in some quarters he is not given enough credit for that, and maybe he kept
things too easy for too long, some will wind up saying. i disagree with that, but i think his legacy really is we can make sure that crises are manageable. >> your thoughts? >> i think ira fits on a good point. when we had the great depression, and bernanke was a scholar of the great depression, the fed did not know what to do, and the fed has managed to contain the crisis and keep the u.s. economy on its feet through all of this and keep the financial system operating. it does show we have learned a lot and he may have been the right person at the right time, whatever is there. the long-term view of bernanke will depend on the exit strategy, how well they get out of this, but he leaves with people giving him generally high marks. >> great roundtable following that fed decision. i want to thank everyone for joining us. when we return, i will be joined
by a partner from bessemer business partners, which has invested in over 100 30 companies worldwide. we will tell you which areas of tech they see the most opportunity in, but first, a live shot -- president obama speaking in pennsylvania. the president talking about retirement planning. mr. obama hitting the road just less than 24 hours after his state of the union address. we'll be back after a quick rate. >> because too many americans are working harder than ever just to get by, let alone get ahead. they still have the scars of the recession, but the truth is, the middle-class has been taking it on the chin since way before the financial crisis hit. you know that. the economy now has been growing for four years. corporate profits -- ♪
" where is "money moves we focus on innovative alternative investments. we turn our focus now to venture capital. my next guest has been spending a lot of time focusing on internet-based software for small companies. he's a partner at the summer venture partners, which has over $4 billion invested in over 130 companies worldwide -- partner at bessemer venture partners. you spent a lot of time looking software forased small business. how is that going? >> we are seeing a new generation of internet-based software models catering to small businesses. small businesses have historically not had access to software. it has been hard to sell for them. they do not have internal i.t. resources, and internet now makes it possible to sell to them. >> do they need i.t. resources now, or is it because things
have gotten so technologically advanced, they do not need it? >> that's exactly right. software has gotten so advanced that you no longer need someone on site to manage it. we have a client called shopify, and it allows a retailer to set up an online store, and they no longer have to ask for someone to maintain it. it is entirely maintained by shopify. they also now offer point-of-sale ftware. if you have an online store and physical store, you can use it. >> why has it been growing? >> it has been doubling revenues every year since we had invested. it has been a rocket ship. arst of all, anyone who has small brand or retailer needs to be online, needs to be selling online. second, because of this internet-based software delivery model, they have been able to constantly innovate and release new products, which business owners love. >> it caters to small businesses, and i noticed that
they must love this. does this level the playing field somewhat? >> absolutely. another example of a company we have in our portfolio is a company called mindbody. spas,ell to gyms, salons. before, they used to do everything with pencil and paper. they can run their business from the comfort of their own home on their living room couch. >> what does this mean for their salesforce? doesn't mean there is not one now? do they need a sales force because all of this is now done through the new technology? do they need people out there on the street doing this, or can they just host webinars? >> that's a great observation. a lot of the sales force is now moving internally, through a .elephone-based sales model you no longer need as many feet on the street to sell software or to sell anything online.
>> you were going to mention yoga.dy >> and allows any sort of small business owner to set up a small website for their yoga studio or fitness center or salon or spa, and much like shopify, it's deliberate entirely through the internet, which means you do not need an i.t. guy. you constantly benefit from new updates, and you can access through any internet that the device from the comfort of your home. internet-connected device from the comfort of your home. >> why does this seem to be blowing up all of a sudden? >> mid last year, apple announced a new protocol which basically allows your smartphone to him in a signal. sensors can then pick up on that signal to know exactly who you are and where you are. the possibilities become pretty exciting. you could walk into a retail store and have a minority report -- "minority report"-like experience up on the display
screen. you could walk up to the front door of your house or your car, and it would automatically unlock. you could use google maps to , an airportoors terminal or shopping mall. it is still early innings, but the possibilities are pretty extraordinary. >> what does 2014 look like? >> a lot of innovation around this ecosystem. a lot of innovation around wearable computing and internet-connected hardware devices. >> angst for joining us here in the studio. pleasure to meet you. appreciate it. when we return, we will look at the upside and the risks of deflation. what investors need to know when we come back.
to thes return our focus federal reserve. concerned starting to ship from getting the job market restarted to the threat of disinflation or even deflation -- concern starting to shift. why is the inflation risk falling? >> isn't that a great question? an even better question is how come the head and doj and ecb are not explaining why it is anding -- the ed -- the fed doj and ecb are not explaining why it is falling? >> inflation falling, not rising. what is their focus?
they have the jobs target. they have the inflation target. now janet yellen will be taking the helm. will they have to change their strategy? >> i think this is really prudent, the big elephant in the living room. the fed comes out today, and everybody saying there's no real surprises. there are no surprises, maybe, but there is an elephant, which is deflation. you need to see more conversation about this. they are saying exclusively, "even if we get that job target we were telling you about, we are going to keep this super accommodative monetary policy in place longer until we pick up inflation." even this repo facility that you spoke about just a few moments ago, one of the reasons they have to put that in is because they do not want interest rates to go below zero. when you start to worry about the fed having to do crazy things to keep interest rates below zero, that is something you have to pay attention to.
>> is there an official explanation for this? >> there really is not. i have my own explanations. i think the tremendous amounts of debt that are out there in the global economy, the demographics, which are really unfavorable, especially in europe and japan -- i think technology is having a profound deflationary impact as it makes society more efficient. it's great that it's more efficient, but it's bad that it is creating deflation. i think what a lot of professionals are concerned about is why isn't the fed even talking about the reasons? >> if you are an investor, how do you play this? >> if you are concerned about deflation, you have to completely reset. the first thing is you do not want to have any debt outstanding because your asset values will all, but the amount of principal that you owe will stay in place, as all of our homeowners learned in 2008. the very interesting point here -- i just checked the statistics
-- we still have 20% of homes with mortgages in this country -- 25% underwater. that is an example of what happens if you have a debt during a deflationary period. >> bonds are risky. how do you play that? >> a lot of people are moving to things that are not ons, but like royalties. that's very interesting because they have a chance to grow over time. the big secret is that one of the things you can really have in deflationary times is developable real estate because the cost of development falls even faster than the general rates of inflation and the economy, makes it cheap to have ilk once the rates come back. >> what's the answer, quickly? -- makes it cheap to have built once the rates come back. >> what's the answer, quickly? >> producing income today, and also real assets, which will inflate its inflation comes back. >> bob rice joining us in studio .
thanks. 26 past the hour. bloomberg is on the markets. the studio.ns is in >> let's start with equities. equities picked up a little bit of momentum off the back of the news that the head was going to maintain the pace of its taper and continue to reduce the pace -- on the news that the head -- fed was going to maintain the pace of its taper and continue to reduce the pace of its buying a bond. we are seeing some action in the treasury market. treasury markets appearing to be holding onto their gains, yields coming down a little bit. the 10-year yield trading -- look at that -- below two point seven percent. it was nearly 2.9% when the fed first announced it was going to taper. we are seeing the u.s. dollar gaining against the euro, against the yen, and against the south african ren, but that's another story. these broader rallies we have seen throughout the day, we are
>> this is "money moves" where we focus on alternative investments. thanks for staying with us. we have more bloomberg top headlines. the federal reserve says it will expand its monthly bond buying program by another $10 billion in february. the head said labor market indicators are mixed but on balance show further improvement in the economy -- the fed said. this meeting was the last four
chairman bernanke before janet yellen takes over as head of the central bank. moments ago, president obama signed a memorandum directing treasuries to create the retirement program he spoke about in last night's state of the union address. the president also called for extending unemployment benefits -- unemployment benefits, raising the minimum wage, and making college more affordable. mr. obama said average wages have barely budged while corporate profits have never been higher. the republican-led house of representatives has passed the much delayed farm bill that set agricultural policy for the next five years. the measure now goes to the senate where passage could happen as early as next week. the bill was held up by fights over farm subsidies and food stamps. let's get more analysis from washington. in june, eight current version of this bill failed before the house -- a different version of this bill failed before the house. against thens voted
bill, but it still passed. what changed? >> what changed was democratic support. when you had the bill come to the house of representatives, after it failed, they passed a republican-only house farm bill. once the negotiations with the senate and a new bill was brought to the floor, it was cut to $8 billion, and they did not change who was eligible to food stamps. there was a change in exemptions that gave extra eligibility, but people are not thrown off the program by the still be way they were before, which made it palatable to more democrats. another thing that happened was the republican shop is a little different than it was. john boehner is much more concerned about keeping his caucus together and passing bills than having overwhelming support from her publicans. since the government shutdown, that is not so much the case, and that played out today. tohow much did they stand lose? >> these cuts are still real dollars for real families that
live in about 16 states. by changing the threshold at which a family getting home energy assistance through a federal program from one dollar of aid to $20 of aid -- that is going to cut some families off from, say, another $90 a month in benefits. this is going to affect those households. >> farm subsidies declined, but not as much as farm groups had feared. tell us about that. >> what you saw from the farm lobby on this bill was a defense of strategy, knowing there would be some cuts in the fiscal environment, but seeing what they could keep and restore. you had a $50 billion over 10 years program that was eliminated in this program. it was not politically palatable. instead, they got more insurance-based programs more targeted at times when farmers may need the money. there have been reports saying that farmers have had record money for years and there should be a reserve, but most of the
cut funding was restored to farm groups in this bill, and right now, most of them are pretty happy. >> why did meet and poultry groups vote against this meat and poultry groups. >> one of the issues that was going to be dealt with potentially in this bill was something called country of origin labeling in which u.s. meat products have to be labeled by what country and animal was born, raised, and process. meatpackers hate this because it screws up their livestock operations. they have to change their production line by country. a lot of groups like it. they prevailed in this bill, but this could be a wto fight. >> were there issues not resolved in this legislation? >> country of origin labeling will be a big one coming up. there will be continued calls for more austerity on the food stamp program. the subsidy debates are not over. in 20 15, crop insurance will be renegotiated, and there will be reauthorization for that, so there is still a lot to be taken care of.
>> tech companies -- tech companies around the world are gathering in israel for the country's first annual conference on cyber security. our correspondent spoke with one of the participants, a pioneer in the space. >> the main vulnerability is that many systems were designed years ago in such a way that there's not enough security for the systems. they are old. they are insecure, and they are everywhere.
it's everywhere, and it's very dangerous. >> there has been a lot said about what countries are best prepared and which are least prepared. israel comes out pretty much near the top in terms of preparedness for cyber attacks. what is your take? >> i'm afraid there are two sides of the coin. on one side, you are better prepared, but on the other side, they are the best victim. i hate to say that. example, otheror countries, are they keeping ahead of the pack in the way they need to be? >> i'm afraid there are many morens that need to bring attention to their cybersecurity and that there's a lot of work to do. i'm afraid that huge resources must be delegated to fix the issues. >> in the world of cyber crime, where does the major threat come from? china? russia? >> we do not see crime in terms of nations, but we can see the language, and the most spoken languages in the cyberspace --
the malicious cyberspace are chinese, spanish, portuguese, and, i'm sorry, russian. but i don't say russia because .t could be ukraine >> antivirus and cybersecurity companies like yours change the game both in terms of the attack and in terms of the defense. how? >> unfortunately, with social media, they are used by time,als, but at the same i am afraid of scenarios where toial media can be used police people. i'm afraid this will be the case. >> what do you think are the most exciting developments in this area right now in terms of cybersecurity, antivirus defense against malware? >> this is the most important step for i.t. security companies and for governments at the
moment. >> your company is privately held. any thoughts about an initial public offering, going public one day? >> not at the moment because the company is private and profitable. i am happy with the situation of the company. no.i never say maybe in the future. >> what about acquisitions or being acquired? do you get approached by companies wanting to buy you, for example? >> from time to time, we see such opportunities, but for now, just one company, which was bought about 10 years ago. are comfortable at that. we would prefer to develop from scratch, but again, i do not say no. never say never. save the world with antivirus, with private security software? >> i believe in that. can redesign businesses and applications to make the systems much more reliable, much more secure and
to save the cyberspace, save the world. >> we wish you the best of luck in that endeavor. for that, on what was a pretty big week for cybersecurity here in israel. i'm sure you are thinking about checkpoints with some very good results. back to you. happens.e return, hat high-profile activists involved in one of the world's most storied art houses. we will explain after the break. ♪
tobring in the super bowl the new york region has been a decade-long effort for the new york giants co-owner, who started pitching the idea to the nfl and local politicians after 9/11 as a way to jumpstart stuttering economy, but it was not until the new metlife stadium was built in 2010 that the idea caught on. in just a few days, metlife will
play host to one of the biggest games of the year -- the super bowl. theillions of people around world will be watching super bowl xlviii, but perhaps no fan your staff is better prepared for an event like this. 20 times a season, metlife undergoes a total transformation . a staff of about 20 takes two days to change from one team to the other from jets green to giants blue or vice versa, and that includes the removable end zones. the turf from one team is rolled up and stored in the stands, and the other team' is rolled out. special end zones will be unveiled for the broncos and seahawks. that is about all the nfl is saying for the big game. >> that will be one of the cosmetic changes. >> you will find out some of the cosmetic changes when i find out. >> you don't know what the stadium will look like? >> i know we are standing on the 50 yard line. that is not moving. i know at 6:28 on february 2, there will be a coin toss right here.
is thethan tisch cochairman of the super bowl post committee, which means making sure the stadium gets ready for the big day. it's a lot of responsibility here and what keeps you up at night on this? >> power is a big issue. remember, there was a blackout at the mercedes superdome. >> can you guarantee no power failure? >> so much work has gone into ensuring that there will not be -- there arere backups, contingency plans. there will be generators on-site. >> another problem -- mother nature. the stadium has a team of 1000 at the ready to clear snow from the stands, using a network of shoots. the vice president of facilities at metlife stadium says they are ready for the snow. have a 600-pound snow melt or we can use out in the parking lot. they have a jet engine inside, thesee heat produced from
jet engines is what melts the snow. >> it is a very big operation. >> tisch says no matter what the weather, it's going to be a great day. >> some of the greatest games in the history of the nfl have been played here. it may snow, it may rain, but it may also be 45 degrees and gorgeous. super bowl xlviii at metlife stadium is going to be very exciting. we want to make sure people know the super bowl has been here. >> is going to be cold. be sure to watch the half-hour special "titans at the table" ath jonathan tisch tonight 9:30 eastern time here on bloomberg. you might think having a private jet might save you from worrying about parking at the super bowl, but again. this is one headache that even the 1% cannot avoid. a ticket for the super bowl, congratulations.
if you are flying in for the big game on a private jet, double congratulations. if you are vying for the other -- with the other 1200 aircraft you may be out of luck. teterboro airport in new jersey is about two miles from metlife stadium, which makes it the destination for football fans and corporate hurt junkies alike -- corporate perk junkies alike. they have actually hired an air boss to oversee logistics of the event. be confused not to with his brother wade boggs, is airofessional choreographer. he says the real chaos is not an arrival. it's the departures that could be a mess. while planes trickle in over the week, everybody wants to leave right after the game. after the super bowl in 2008 in
arizona, planes were delayed for more than six hours, but that will not happen this year if wayne has anything to say about it. teterboro is offering up to 600 reservation spots, and according to private aircraft company meridian, their slots were filled up before christmas. jetters,eter's -- beware. a reservation does not guarantee a timely departure. if you are not ready when it is your time to go, you could get trumped and wind up waiting hours for another departure spot, and at that point, you might as well be flying commercial. >> big changes at so these -- sotheby's. they announced they will pay a $300 million dividend and may also sell real estate to put more cash in the hands of investors. activism case of paying off? >> pretty much. this has been called the year of the activist investor.
it was just five months ago they fromved a scathing letter to big boys in the activist world, and they own a combined share of about 15%. had to unlock value, and it appeared to play a big role in what happened today. >> what is the biggest change here? applauding the art house for making structural and philosophical changes that reward the shareholder. specifically, sotheby's is going to pay out a special dividend and initiate a share buyback, taking on more debt, and it will also initiate real estate options. they have pricey real estate options in london and new york and may consider selling their new york headquarters. the ceo says, "we are returning meaningful capital to shareholders, and we are establishing a framework to put the art house in a better position competitively."
the question -- is there more to come? the biggest shareholders is calling for sotheby's ceo to step down, criticizing his pay --kage as well as businesses as well as business practices. >> quickly, any word from activists? >> they are saying good for steps, but they can clearly do more. toy're calling on sotheby's unlock $1 billion total in value and urging other shareholders to keep the pressure on. the downgrade was considered a close just because they took on more credit. we are seeing the stock lowering now, but analysts said this is really a function of what is going on in the market right now. they all seem to view this as positive. >> thanks so much. next, an update on the markets after the break. ♪
>> deirdre bolton is back tomorrow with a new york city investor whose noteworthy projects include the manhattan club. 56 past the hour, and that means bloomberg television is on the markets. our markets correspondent is in the newsroom with more. >> thanks so much. let's get you caught up on the markets. u.s. equities are falling. they picked up a little bit of momentum after we got the fomc decision. reducee continuing to
the monthly bond buying program. you see stocks are lower. the dow is down by about 170 points, but we are off session lows. at one point, the s&p index was below its lowest closing level since november. for more on the said -- fed decision to continue tapering, i'm here with the fixed income strategist at gmc securities. it looks like bernanke stuck to the script and did what markets widely expected him to do. what about the statement. any surprises in the statement for you? >> not at all. he pretty much said what we expected. the economy is improving. the labor market showing mixed signals, referring to the december nonfarm payroll, but overall, showing improvement, and that provided the cover he needed or the fomc needed to announce the additional cut. at this point, i think they are pretty much on path to a $10 billion cut per meeting, and that's pretty much what they are going to try to do. it would require something pretty drastic to move them off
that mark. >> how drastic? you said earlier it would require a large hurdle for janet yellen, whose decision it will now be to change the course of the pace. further route in emerging market currencies? selloff in domestic equities? >> it would have to be some kind of suggestion that the u.s. economy is not doing as well as we thought. it might be slowing. it could possibly stall. >> another jobs number under 100,000? >> the last one was weather-related. maybe there could be another incident in january. you have to have sufficient evidence to say, "we need to slow down a bit." i don't see that happening, but it could happen, even on the emerging market front. if it becomes evident that this is a bigger problem, that would be a reason. >> we definitely have to talk about what is happening in the emerging markets. your reaction to what is happening in the treasury market.
does that surprise you? >> yes and no. even though it is incorporating what is happening in the e.m. world, based on the fed statement, everything is focusing on it. you are seeing a flight to quality because of emerging markets. people are dumping the whole emerging market as a whole as opposed to differentiating what they think they need to. within the community, there are better countries than other countries, but at this point, the market is not differentiating. it is just taking the whole sector down. that is what you are seeing. as a result, you are seeing moving to save haven destinations. huge moves. turkey overnight be surprised central bank meeting, raising their rates. south africa following suit, raising their rate. both the rand and the lira following the differentiation. where are you seeing strength in emerging markets? >> that's a good question. at this point, there's very little strength in emerging markets. they have taken it all down
formally. perhaps the market gave too much credit to the central bank moves . even though turkey made a tremendous move higher and rates, which then caught the market by surprise, which is pretty positive initially, but they said there is still more to be done, and that's right. this was not meant to be a cure-all, but i guess the market indicating this should solve at all. >> thank you so much for joining us here at bernanke's last meeting at the fomc. we'll be back on the ♪ ♪ >> that we are live from bloomberg world headquarters in new york. welcome to "street smart." >> i'm cory johnson. bruce ratner, one of the countries top real estate developers, the force behind mark layste