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tv   In the Loop With Betty Liu  Bloomberg  March 30, 2015 8:00am-10:01am EDT

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break headquarters. this is monday morning and minutes away from the opening bell. we have a great show for you this morning. one economist says not since the 1960's have wages been this important for economic future. tom joins me as we wait for income numbers out in a half hour. it billionaire joins me to talk about group products, hair care and alcohol. he is well known. 2 billion-dollar brands. plus, mission to the space station. nasa begins. it could mean a trip to mars is not too far into the future. elon musk saying over the weekend in 10 years, we will beheaded there. a former astronaut is with us a
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little later. here's a look at the top story this morning. iran nuclear talks are entering and crucial phage today -- crucial phase today. tomorrow is a self-imposed deadline for a deal to stop iran from building atomic weapons. the white house said it is time for iran to bend if it wants stations listed. >> we have been negotiated -- for over a year. time for them to decide whether or not to make the serious decision required. betty: the ultimate deadline is the end of june. airstrikes are targeting shiite rebels. iran is backing the rebels.
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the apple ceo tim cook is denouncing the indiana law. he says the law is biased and dangerous and it would let businesses refused to serve gays on business grounds. indiana governor mike pence says the law is to stop government overreach. mike pence: it is very simply to empower individuals when they believe that actions of government in page on their constitutional first amendment freedom of religion. betty: the law is already prompting reaction from angie's left, stopping expansion of its indianapolis headquarters.
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australia is now the latest company to require tedious people in the cockpit. regulators adopted the new rule after investigators revealed last week that the german wing copilot lots to the captain out of the cockpit heard the crash killed all 150 people on board. a race to the gop presidential nomination. marco rubio plans a talk -- to toss his hat into the ring. ted cruz became the first major official last week and kentucky senator rand paul plans to announce on april 7. those are your top headlines this morning. facing a tuesday deadline to reach a framework negotiation, lake geneva. peter cook is tracking the latest for us.
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are we any closer to an agreement? peter: it depends on who you are hearing from you at optimism, pessimism. there are clearly still differences. some talks of a deal on sunday. that obviously did not happen. you have secretary of state john kerry not to come back for an event in massachusetts. at the same time, you have the russian foreign minister the talks today to go back to moscow for a previously arranged meeting of his own. he is prepared to go back should a deal emerge in the next few hours. betty: the biggest sticking points are what? peter: first of all, the pace of any sanctions relief. iranians say if there is a deal
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they want economic sanctions lifted as quickly as possible some suggesting immediately. that is not going to happen. the question is the pace after that it also, going forward on the nuclear side. how much ability will they have to work in the nuclear area for medical research. another sticking point that has emerged remains what will happen to their enriched uranium. will it go to a third-party country to be monitored or will be iranians be allowed to keep it in some fashion so it can not be used as a weapon? betty: what about the question of another extension? peter: it seems clear there is no interest in an extension at this point. there also has not been an effort to slam the door shut. members of congress talked about perhaps an extension because of their own concerns about the
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administration being too eager for a deal. it has not been ruled out. betty: thank you so much, peter cook. you are right now looking at live pictures. we are following a news conference on the german wing's crash. we will follow any headlines that come out from the news conference here on the german wing's disaster. greece has until today to submit its latest form proposals. the prime minister will produce another letter of detailed lists of economic changes. hans nichols joins us now from berlin. what will we likely see in this letter from greece? >> we do not quite know. we need specifics. it is clear there will be about
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3 million in new revenue that greece will claim they will raise. some of that will come through this drop pretty tax. the property tax is significant because mr. tsipras campaigned against it. they also want to increase the tax for the islands. some things will be probably be -- probably satisfactory to creditors. there is nothing on labor market reform or pension reform care to reform the labor markets and reform the pension system, it is not likely they will have any movement from creditors during if you fundamentally change the order in the structure of the bailout package, you will need another vote in parliament and that would be no, sure thing. betty: what about economic assumptions building to greece passes plan? hans: greece is talking about
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have a 1.4% growth this year. that gets them to 1.5%. they have already brought that down a little bit. it will be interesting to see with so much political uncertainty and you have had capital outflows, more than 50 billion euros leave the company. clearly under stress. you have had uncertainty and banks under pressure. before we can get to the political level, they need to agree on a common set of factors. the clock is ticking. he addresses later tonight. betty: greece's par mr. will address parliament later today
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at 8:00 p.m. athens time for early will follow those headlines. moving and shaking this morning, the dreamworks ceo jeffrey katzenberg. it is a hit. the animated film "home" was a surprise success, raking in $54 million over the weekend. the film is there only this weekend. -- it is no secret the studio going through a deep restructuring following job cuts in a bid to improve the quality of their movies. someone who covers the company very closely calls this a brush of fresh air. we were all wrong. critics said it is another dead. look what happened.
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classic goes to show you the hit or miss nature of the hollywood movie business. dreamworks had been on a great run for six or seven years. over the last two ears, they have had a hard time p or four out of six movies were not successful and they had to take write-downs for them. they were not used to that. the pressure was on the company to finally create a hidden have a new franchise. it looks like this movie might be a turnaround a little bit at least four 2015. betty: franchises from shrek and kung fu panda, well-known ones. is it because just cap -- jeff katzenberg took his eye off the ball? >> i think soap it what happened is jeffrey katzenberg has tried to diversify his company away from prussia. maybe get into television production, live events, more
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globally. that all is potentially longer-term for the company. i think he is trying to emulate a little bit of what disney has done in diversifying its business from theatrical. it is a long-term process and the risk is in the near term you take the eye off the ball of the core business, which is making movies. he has since then said, i will renew my focus to production more hands-on. this might -- might be the first tangible evidence of a turnaround. he is really a true mobile -- mogul. he has talent, classic and you can see the strengths and weaknesses in movies all throughout the process. he had a good track record at disney and dreamworks.
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is it a standalone company or is it perhaps part of something bigger? we will perhaps have to see. betty: thank you. coming up, why your paycheck is more important ever before are we talk about the labor report this week. sales in china could use a jolt. elon musk is there to do just that. ♪
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betty: the rubble of three new york city buildings. the buildings crumbled yesterday after an explosion. people were hurt and they said the gas line may have been illegally tapped. it is officially campaign season. prime minister david cameron paid a visit to queen elizabeth.
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the week leading -- leading up to the general election offered -- opposition labor party. polling indicates neither is to govern alone. speculation there may be even more government stimulus. central banks to do more to support economic growth. analysts expect china would cut. thanks reserve ratios. elon musk is in china explaining why sales of electric cars have slumped. he has said speculators caused a backlog of unsold vehicles. they ordered the cars but never actually went through to buy them. they're adding more things to attract them. still to come, he builds billion-dollar businesses from the ground up.
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everything from the industry of hair care to tequila. and we are now in march madness with the final four. who is leading our bloomberg charity bracket? we will tell you coming up. all this week, we are focused on jobs ahead of the government report friday. personal income and spending numbers will also be out as well. it leads us to this quandary -- why are wages so if you -- so important to the future of the economy? we have not seen wages this critical since the 1960's. to answer why, i want you to take a look at this chart, which shows americans are spending only as much as they earn. they are no longer tapping their homes or credit cards to spend more. you can see it is high between spending and earnings.
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for more, i want to bring in tom porcelli. tell us, what is behind the tight link now? tom: the reason the link is so tight from really what was going on early in the cup -- in the recovery, whether it was banks not giving credit what ultimately had to happen was consumers actually had to rely on wages. that is light is so tight today north of 90%, closer to 60%. one thing i would actually highlight is that is a missing piece to i economic activity is not approaching north of 3% particularly early on in recovery. you are missing the incremental juice provided. betty: why aren't people tapping
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their homes or their credit cards as much as before? >> people do not necessarily have a lot of equity at this point. the process, when that typically happens, you do not see a lot of demand for credit. it is starting to loosen up to some extent and you can see it in auto sales. a huge portion of auto sales is obviously very credit driven. years ago when autos started picking up, you see some lending taking place again in the auto space. it has been more balanced as of late. at the end of the day, we think it was the leveraging process that stumped that process to some extent. betty: i have not heard any economists tell me there will be a huge breakout in wages. if we do not see that happening, it does that mean we will be subpar 3% for a while here?
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tom: one economists on uh's are breaking out to some extent, not in a material way, i am not talking about the pernicious style wage inflation, that will lead to actual cpi inflation and what we're saying is if you look at wages properly measured, and i've talked about this many times, when you actually see there has been a turn in the wage pie, now north of 5% at this point, it is sort of a nice little story to tell. here is a great way of thinking about wages in general. if you look at aggregate wages, it is running around 2.5%. if you actually look at wages that exist in job openings, not a hard thing to construct. we know what the wages are. if you construct a weighted average wage for job openings
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it is running at a 3.5% pace right now. that is astounding. it is not enough to say there is actually waste -- wage pressure in the pipeline. there is actually wage pressure. job openings have more wage pressure than actual jobs. it is pretty amazing. >> that is amazing and a good predictor. so i found the economists who does see wages raking out this year. great to see this morning tom the chief u.s. economist at rbc capital market. coming up ahead, an obvious bargain. we'll tie about a big acquisition. plus, we have not seen tiger was on the golf course recently. another place he cannot be found. we will be back. ♪
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betty: six met -- 56 mets past
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the hour which means bloomberg television is on the markets. spending numbers. the meantime, i want to get to scarlet fu, who has got much more at the breaking news desk. scarlet: oil prices are starting the week in the red. traders placing bets on whether iran and six world powers will be able to reach a deal which is already in oversupplied market. coming off its second straight week in gains. joining me now from the cme to discuss is the director of strategy at bell curve capital. chris, yemen prices post -- pushed oil last week. do we retake those highs? chris: i do not believe any time soon. the level friday was a key support and now is an area of resistance right now. scarlet: ali back to the inverse
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court -- relation with the u.s. dollar? chris: currency strength, dollar strength overnight against the euro and the pound, we have seen that selloff. >> you are looking at big swings going forward even as the dollar limits movement. you are looking for 5% swings for a 10% range. the upside or the downside? chris: that dollar once again flirting with that one of five euro, and breaking below toward one dollar. to the high side i believe this crisis in yemen, those things list above 52. to lift above 55, i think you will see any sort of talks of negotiations between the iran and the u.s., though sanctions possibly not being listed as fit
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-- as quickly as we think. also, the potential of more conflict in the middle east will cost 155. we will need weakening in the currency to see a push past 155 per barrel. we would have to see the fed push off the forecast of raising rates to september at the minimum, possibly to the fourth quarter. then you will see the 65 dollars per barrel oil. scarlet: what about the weekly energy supply report we get from the u.s. government? to what extent is that pushing oil? chris: i think you have a slowdown in the shutdown and this has done not much. between strong dollar and u.s. oil is all people are concerned
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about. looking at the key levels of 105 at the euro versus the slowdown in recount. oil production and inventories seem to be at a maximum p are we continue to hit record levels. it will be the 13th week on the trading floor. scarlet: what about hedge fund managers position on oil? chris: i think hedge funds have really helped take it to that level. from all my discussions with my parties and to my guy at my desk, we think 46 to 56 will be a wage bound scenario until we see currencies rake either to the downside, or yellen come out and extended that forecast for increasing rates. everything is looking to the fed right now as far as currency is concerned. therefore, the hedge funds are really just playing the range bound 46 to 56 for the upcoming week. scarlet: how would you trade oil
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right now? chris: considering the average trade is 21 minutes long on our desk, we're in and out. considering the volatility that has been fantastic, we are a volatility fund. therefore, this volatility, you mention 5% volatility. we are looking for that. that is happened in 11 out of 15 trade sessions. scarlet: thank you for joining us, chris. betty? betty: stay with me, scarlet. we are getting economic numbers now. personal income coming in a little above economist estimates , up by 4/10 of 1%. economists had estimated a gain of 0.1 3%. spending by the undershot estimate. scarlet, i know you have been studying these numbers. scarlet: the core numbers are the numbers i have been looking at.
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on a month over month basis, we have rising 1/10 of 1%. it pretty much is as anticipated. a year-over-year basis, 1.4% is slightly faster than what economists were looking for. anticipated an increase of 1.3%. getting back to headline numbers you mentioned, personal income rose 4/10 of 1% in the previous number was also upgraded to 4/10 of 1%. a little more of a pickup in income. spending was a little bit disappointing. only 1/10 of 1% versus the expected 2/10 of 1%. it would appear to be that people are saving the money that they are making. while wages went up a little bit, the income number increased a bit. consumers, or americans, are saving the money they are making up their for now. that is not necessarily what the federal reserve wants to see when it comes to inflation to get the economy going. betty: that is right.
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you are seeing equity futures top lightly on this. this is a little bit of a mixed report here. thank you so much, scarlet at the breaking news desk. personal income coming in a little above estimated. iranian nuclear talks are entering a crucial phase today. the u.s. and five other world powers are back on the table with iran and switzerland tomorrow. a deadline self-imposed with a deal with iran for building weapons. it is time for iran to bend if it wants the sanctions lifted. >> we have been negotiating for more than a year and it is time for the iranians to send a clear signal to the community about whether or not they are willing to make a serious commitment required. and basically live up to the rhetoric that they are not trying to work -- to acquire a nuclear weapon. if they can make those commitments, they should do so. betty: saudi arabia and regional
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allies bombed yemen's capital. iran is backing the rebels with the saudi coalition not ruling out an invasion. the deal is widening in the race for gop nomination. marco rubio plans to toss his hat into the ring on april 13. ted cruz became the first major candidate last week. not to be outdone rand paul expects to announce his plans april 7. golf fans, the worst ranking in 19 years for tiger woods. he is no longer among the top 100 players. the last time he was lifted the slowest before 1996 down and down.
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this new movie brings in $64 million on its opening weekend. dreamworks constructing four of its last six movies. a hit for home. comedy central just out with a new host for its daily show. the new york times reporting that trevor know it will take over from john stewart. noah is a correspondent john stewart announced earlier this year that he is leaving, causing many to cry. john stewart no longer at the helm. those are your top headlines for the morning. coming up come everything from hair care to tequila. we will be back. ♪
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betty: personal income and spending data just reported moments ago. kind of a less conventional way you may want to look at alcohol sales, hair so line. that hair salon. billionaire entrepreneur john paul dejoria who started the paul mitchell haircare product. $700 and three products, i love his products. he now owns a line of products just for dogs as well. he recently entered the wireless market. great to see you this morning. i know we will talk about other products, but let's talk about haircare. what are recession proof products? you hear warren buffett. he's always like people eat mac & cheese, drink coca-cola, and chew gum.
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john: during the tough times, it is not that people stopped going to salons. instead of every four weeks maybe come every seven weeks. they still entertain themselves. the hair industry is still a good barometer. the economy is getting better if they come back more often. they are coming back more often. betty: your latest haircare product. john: revolution. it is handpicked. it is a lawn -- a long process by hand. we employed lester 4000 people in zimbabwe to actually pick the fruit, hand press it. it is a long process. we now employs 7000 people.
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we may go to 20,000 people this year. it is pretty expensive. these are people who need jobs. now they get jobs with fair wages peace love and happiness t-shirts. what the product does, it is only available in salons. it is a special process where, believe it or not, we had an independent laboratory status, it rebuilds and repairs split ends up to 80%. more than 50% antioxidants than any oil ever brought out and it is good for hair and skin. betty: you have had this company for decades and you have a huge passion tequila. you are about to launch the next
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company. what is it? john: here's how it is packaged and here's what was like. the majority of our planet has cold sores, canker sores, inks of this nature. if you feel it coming on, you put it on once every hour. in nine out of 10 people, it will not popout. if you missed it, the majority of people come it goes away in a day or two. plants only sell for $100. betty: i look at that and i say, you are in luxury products. how is that sitting in the portfolio? john: a scientist gave me this a few years ago and said shingles, cold sores, my secretary pulled it out a couple of weeks later and gave it to
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people in the office and said this stuff really works. i said, i will fund this with whatever it takes to do research and that is. so everyone can afford it. it is $39. that is retail for it. $39. $39, that is it paired everyone can afford it. it does not cost several hundred dollars. then there is no competition. the reason i did it is because mankind on a multimillion personal level. i want to take profits and go to all these little places where girls are saved from prostitution, and give it to them free of charge. betty: it is not life-threatening, but it is a
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nuisance. stay with me for a moment and we will talk more. in the meantime, 45 minutes from the start of trade. back to the news desk, scarlet fu with some of the movers to watch. a lot of m&a. scarlet: that is $25 billion worth of deals announced around the world today. 18 billion of which took place in the united states. let's start with pharmaceuticals. the chart maker for 3.5 billion dollars in cash. a tender offer at 101 per share, a 42% premium. horizon agreed to buy hyperion so they could screen drug that for metabolic diseases. $46 in cash, about a 7.6 dollar premium. 78% through last friday because
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of all the takeover speculation. a provider of drug benefits business and price tag there, about $12.8 billion in total. betty: thank you so much with some of those movers on and the day monday. moving and shaking, almost busted. every bracket including mine. we will take a look at the bloomberg bracket contest. who is on top? we will find out. ♪
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betty: a look at our top stories this morning, waiting results. the party claims the results were rate. the president is running for
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reelection as the democratic party has governed nigeria since the army relinquished power in 1999. more on the journaling's disaster, australian is the latest country to adopt the role after investigators realized the copilot lost the captain out of the cockpit. the crash killed all 150 people on board. volvo is planning to build half $1 billion factory in the u.s. the automaker tells the last in general the company wants a north american facility so it can be closer to one of its prime markets. is considering a handful of states and will announce its decision in months. required corporation for about 12.8 billion dollars, the largest ever, and it gives the company more negotiating power in talks.
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united health will pay 6150 a share for the manager, financing a deal with cash and debt. president obama traveling to boston today. the president stumbled after landing at the air force base but he made a quick recovery. a dedication of edward kennedy institute. those are your top headlines this morning. coming up at the 9:00 hour, nasa begins its one year in space mission. clay anderson is joining me in a few moments. with a likely launch of a presidential campaign around the corner, hillary clinton will speak on how she will approach policy debates. during a speech in washington, she sounded off on how two big
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economic themes will play out. wage stagnation. hillary clinton: a lot of our city -- cities are truly divided they have inequality that is only gotten worse. they have some of the most dynamic, well educated, affluent people in the world and people trapped in poverty whose skills are not keeping up with what the jobs of today and tomorrow demand. betty: still with us is billionaire john paul dejoria. also the academy of the american dream. america still works. then you hear from others who say, look, let's stop giving handouts to americans. they have got to work harder. someone says, you the academy of someone who works very hard to get to the top.
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john: i think independent business people can do more to help. we're taking homeless off the streets, and giving them a home. we created work to do so they could pay for the little house we gave them to live in and become part of society and make it out of being homeless and actually doing something. those who have challenges mentally, we also provide for them in the garden to work so they can do various things to contribute. we know there are things you can do. betty: even if there are things you can do income is widening. what do you do about the overall problem? is it attacking billionaires like you and say you need to pair -- pay more of your taxes? john: actually not.
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we the people are all of us together working with one another. what they should do is say, here is the incentive. people have tightened their belts is 2008. they do not bring it up in the news anymore. because these has fewer jobs than less pay so they can survive, we are all coming out of it right now. there will be more job opportunities. that is the thing people fail to talk about. 7000 jobs today. there is all this work available and known to fill the jobs. betty: they do pay well. you can make good income as a plumber. either a plumber or go to harvard, i do not know who goes out on top.
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john: a segment of america was missing for the last 10 years. not the basic job site pay really good. the lower portion would have artie been county today. a lot of jobs out there people cannot fill. they are not qualified. betty: great to see you. we will be back in 10 minutes. ♪
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betty: before we had to break, i want to give you an update on the final four is set. duke, wisconsin, and kentucky. still plenty of drama for our bracket. jerry of goldman sachs, 144 points. still alive in his choice to win it all. dan has surged into second place at 139 points. if he wins, he will donate. four out of 36 players lost ♪
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betty: futures indicate stocks will head upward at the open. the chinese government said it could do more to stimulate and support growth. meanwhile, the iran nuclear talks are edging a phase and five of the road powers are back at the table for iran in switzerland and tomorrow is a self-imposed deadline for a deal to stop the deadline for building an atomic weapon. the white house says it is time for iran to bend if it wants those sanctions lifted. >> we have been negotiating for more than a year and it is time for iranians to send a clear signal to the international
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community about whether or not they are making -- willing to make a serious commitment -- commitments required. if they can make commitments, they can do so by the end of march. eddie: the deadline is the end of june. saudi arabia regional allies -- they just bombed yemen overnight. most of the country in september, iran is backing the rebels. australia we mentioned is now the latest country to require tito's people in the cockpit. regulators in new zealand after investigators revealed last week the german wings copilot locked the captain out of the cockpit in a crash that killed all 150 people on board. the deals widening in a race for the gop nomination or marco rubio plans to toss hat into the ring on april 13. ted cruz announced last week and
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kentucky senator rand paul is expected to announce his plan april 7. that is going to be a raft of people clouding the republican race. here we are at the start of the trade. can you down to the headlines. alex and joe joining me this morning. let's start with number 10. did you go to the movies over the weekend? alex: i did not. betty: i saw insurgents. let me talk about what we are supposed to discuss, a surprise run for dreamworks. raking in $54 million in sales. the children's movie has rihanna and j. lo voicing roles.
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>> four out of six they really needed a win. good for them this beat expectations a little bit. expectations were low but it is good. joe: i do not have real insight into the movie market, but it is well known dreamworks has really not been able to get it together and it has not been able to get -- which is nice. alex: they have not had a winner since 2012. the biggest thing in three years. betty: number nine, children's television is nothing new, but what about baby first tv? going after babies as young as six months after making deals
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with time warner cable. about 50 million they say when they launch. alice: she starts swiping and does not understand why it works. it makes sense with the smartphone. to leave it on during the day. joe: i agree it makes a ton of sense. i think it is a great idea. betty: forget about it i know there are controversies educational content for babies that is not what it is. it is just a babysitter. thank goodness i got 40 minutes. joe: people always said tvs are babysitters and now they are making it explicit. betty: back in china trying to explain why sales in an
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interview with state media they said there is a backlog of unsold teslas in china. speculators ordered cars and never brought them to do not know they were speculators or people who had buyers are more. joe: who knows, but it is a pattern where they get very excited about something and then they get details that matchup to what they said. china is still probably a big opportunity, but this is still the latest in a series. alex: they called the salesforce brain-dead for not really fixing preconceived notions about ranges are you not being able to charge car, and having fears about electric cars in your home . maybe a little bit of user error there convincing that market that electric vehicles are thing of the future from china. betty: you hear that a lot.
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one must is a great salesman who has been able to sell his cars one of the best out there. but you get it and say, wait a minute, how will i take a 5 hour rd trip or would not? alex: one of the things he has got going for him, the chinese market is asking things like local music services or different software is in cars. he conservative for the market. some possible changes to come. price number seven, chinese stocks rallied and other stocks as well around the world on speculation there be more government stimulus. the growth rate has tumbled a bit too much -- a bit too much and policymakers -- china slowed further in the first quarter. >> we saw them cutting loner requirements for mortgages. more spending will be key here. the government has been pushing for writ to be the big winners
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and moving away from heavy manufacturing and higher-paying jobs. getting their population base to spend more seems like number one. joe: it seems like it is hard to see the long-term strategy with the latest moves. it is well-known there are fears about the real estate bubble and all that stuff. now your move is to make it easier for people to buy the second home. it is a short-term boost for the economy and real estate. it does not exactly seem like it is the long-term direction. betty: speaking of strategy, volvo is making their investment in the u.s. the swedish carmaker planning to invest $500 million in its first auto factory here. volvo is hoping to revise sales, which slowed over the past decade. the plan will open in 2018. it is an suv plant. alex: when you look at competitors that might be
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following you up you have mercedes in alabama, and maybe we have seen other points in this health for another suv maker. and where these luxury carmakers have found success in terms of finding the right labor force and then building out these bigger vehicles for the u.s. audience. joe: i had kind of forgotten about volvo as a brand. i guess it makes sense for them to invest in the u.s. it is exciting for the u.s. at least. betty: i agree with you. it is a brand you think about that your parents trophy. not exactly a car, with you want to be young and hip, you will not go after a volvo. alex: sales in the u.s. have been disappointing for them. betty: much more ahead. regulators producing cancer
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treatment at a regular pace. what that means for drug companies. we will be back in just a moment. ♪
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betty: it is time for the deep dive to number five, cancer drug. the medical history has seen more more promising returns. shares of the companies developing these treatments whether it is a skin cancer drug, or a drug to treat best cancer. drug treatments are getting the green lights at a expedited rate or at we have seen 10 already this year. last year'total of 41, an 18 year high causing, as you can see there, drug stops to rally and rally big. true joins us now. great to see you this morning. what is behind the boom?
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there are a couple of things going on. >> one, and fda has gotten much more aggressive, working with companies and trying to get new treatments to market. they created a couple of new mechanisms to work hand-in-hand with the drug industry to say, hey, we want to give us this data hand-in-hand. this is what a trellis is like to be robust as possible. that is one thing. they're are trying to really work with the drug industry to get this to patients and we are seeing the fruits of a lot of scientific work done in the last two decades really all the sudden turning into actual products. when we began sequencing the genome in the 1990's a little better understanding of cancer biology. all this stuff is finally coming to bear and turning it into new drugs. a lot of cancer medicines, this
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is a relatively new field in a lot of ways. the war on cancer was declared in 1953 and we were using chemotherapy and things like that really up until the 1990's. a lot of the more advanced things we're seeing now have really come out in the last decade and a half or so. betty: we now see the fruition of this. what are some of the more promising treatments out there? >> immune system-based treatments. you have to understand little more about exactly how cancer functions. cancer is a cell that has gone haywire. a mutation in the cell cause it to all the sudden grow in x -- at a next financial a lot of times, the body passes immune system goes in there and kills them and says, this is not supposed to be there, and it goes away. when you get a cancer that turns
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into a tumor, he finds a way to evade the system. the new drugs eventually turn off the cancer cells cloaking device that keeps it from being attacked by the immune system. it is not a drug that goes in and kills the cancer. it is rather a drug that allows the body to do what it would naturally do if things were functioning right. i would not necessarily think of it as a boost, but an enhancement that helps attack of the cells that have gone wrong and that the body does kill off in the normal course of business. >> we mentioned companies working on these. there is a variety of cancer and it is hard to pin down but are there some that are farther along and are really benefiting from these treatments? >> yes, a company bristol-myers, has put most of their best on this. they sold to ashes in a cup.
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they will be a cap focused company. they have one of the deepest pipelines in the industry right now are they have a drug out there that costs $150,000 a year. one of the first immune system-based therapies approved. an earlier immune system-based therapy they are combining with that drug. mark also has some stuff out there. after zeneca is trying to get into this race. a lot of companies see the signs moving forward and the fda being willing to work with them and they say, we will put a lot of money in the cancer space. it is good for patients. it seems to be doing very well for companies and that is why we see all this attention right now. betty: you have got can burns who has a documentary out this week on cancer. we saw the hbo special, killing cancer. is there any downside, at all, to this much focus and this much money being poured into cancer?
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>> one of the things right now is we're seeing tension between the price of some of the drugs the system path's ability to pay, the amazing science. we are one right at the very high point where $150,000 here, we have seen more drugs approved that cost more than $5,000 per month than it any time in history. it was something like close to a dozen new drugs. 30 cancer drugs between 2010 and 2014, it costs more than $5,000 a month. that is a lot of money. a question is not necessarily so much, is a life worth that. if you have a deadly disease, you want it. but is the system path's ability to pay for it, or where can we find ways to pay for the sort of things. it is a lot of money and a health care system is trying to figure out how to grapple with that right now. betty: thank you so much for joining me. coming up get ready for another
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republican senator to enter the presidential race. marco rubio will be the next to declare in a few days. and that religious freedom law announced in indiana, we'll show you how a company's protesting. we will be back. ♪
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betty: there is a german news conference going on in the crash in decile doors. -- decile door -- duesseldorf. >> what we found out in our investigation stands as it is right now. there still is no evidence that
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the copilots -- that healed to what we have to assume was done and we have not found a letter or anything like that that contends a concession of that. added to that, we have not found anything in the surrounding -- personal, or family, or professional surroundings. that is giving us any hints that enable us to say anything about his motivation. we have found medical documentation that show no
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organic medical illness. the copilot before he got his pilot's license had been in psychotherapy -- >> has not been in psychotherapy -- in contact with a doctor about that. he had at that time been in treatment of a psychotherapist because of what is documented as being suicidal. at that time. in the following time right
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until he took the plane, there has been several visits of medical doctors, and we have found, as we already communicated, evidence that his doctors documented him to be unable to work, but these documents don't show any hint of being suicidal or being aggressive against other people. that is what we have and what we can say right now. >> we do not have any hints about organic illness. betty: you are hearing the german public prosecutor there giving more details or lack of
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details, about the german copilot's condition saying they did see the medical notes and it did not indicate any organic illness, but he had been in psychotherapy, and also, no evidence of any type of suicide note or any idea what the motivation was for him to fly the plane into the mount side. we will continue to follow this story and his comments here at the press conference. let's get back to bring you other important stories we are following before the bell. bloomberg's market managing editor staying with me. let's go on to number four. republican senator marco rubio of florida planning to jump into the presidential race. he will announce he is a candidate in two weeks, making him one of the youngest in the field. next to senator cruz and rand
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paul is coming out in a few days. classes seems like marco rubio might have an opportunity to be a top-tier candidate. he is conservative enough for the base potentially, but also a very fresh face that could do well with the broader electorate and does not seem to polarizing. this will be interesting to watch. quite he is very eloquent and that seemed to communicate well with voters. he is the third, to announce. the former hp chief set -- she is 90% sure she will run. those little factors might be important for the wide swath of gop candidates. >> is important to keep in mind there are so many candidates -- you could win with a small amount and get a little edge with the others. scott walker early on was a flirtation but that may fade a
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little bit. seems like an opportunity. classic does or this number three story may be a reason why some republicans are turning off the voters. angie's list joining apple and yelp in denouncing and indiana law that lets is is is refused to serve gays on religious grounds. the website saying they will stop a $40 billion expansion of indianapolis headquarters days before it plans to break ground. you have tim cook of apple all coming out and announcing this. and piling on his angie's list. mike pence, the governor, had also flirted with the idea of potentially running. at this point, you have to think of the tech industry coming out against him and saying, what are you doing here? you are discriminating against a wide group of people. >> what is remarkable is the
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narrative in the u.s. in the last few years that has swung so much from one direction to now another direction, which is that there are plenty of supporters now for gay-rights and gay marriage that something like this seems antiquated now. joe: i think the reaction we're seeing from tech companies is a warning to other states who might adopt it. it is not worth it, it is not good business. gay-rights is strongly in silicon valley, part of the values there. it is pretty risky to alienate this industry. betty: number two high-frequency traders, also the target of critics who say they are exploiting other investors. it turns out they may be making pr as in profits. research down in atlanta shows income from event driven training has shrunk because there is more competition. when you stack up how high-speed traders do versus others they do not do much better than the
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average. >> i am not really surprised. there is an arms race of investors building up the best tech who immediately rack up the data. that does not last too long once they have it. >> i was a little surprised. it has been a while since i covered macro markets while go. i cover tech now. 24,000 per event with the spider etf, that was a little surprising to me. $100 million, moving in the markets on these events, it really is not that much. betty: with the arms race, it makes the firm's wonder, what is the cost really of getting faster and faster when the returns are peanuts, it seems. number one, the great premise or will greet lawmakers in athens over the weekend with international creditors on reforms to avoid collapse.
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set to dominate global markets this week. here we are again. when will we hear from greece? >> you have seen this interesting him backing off of the platform he came through in terms of restructuring and bouncing debt. he had to do that to get the februarynow we are seeing his allies in greece turning against him. the hemming and high, in the end, not good for investor sentiment overall. >> that is the problem. it is one thing for them to go to germany and come to an agreement with partners. it is another to maintain the coalition of radical leftist that maintain the core of his bid to. it may not be possible for him to come to an agreement that satisfies the outset creditors. >> which is a bad thing. >> a difficult situation. betty: indeed but it seems like
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the markets are interested ties to much of what happens in greece right now. >> so far there is no indication that anything in greece is affecting anyone else. betty: as we kick off the trading week, i want to bring in john manley from wells fargo. he says, you say, john actually, that the recent pullback that we have seen -- and it was kind of getting ugly last week. john: scary. betty: scary is a good word. john: that is not how bear markets start, historically. to go down a lot you have to end with deeply embedded pessimism. starting with deeply embedded optimism. i may be going backwards -- betty: you need deeply embedded optimism at the top. what does that mean? spell out deeply embedded optimism. john: going back to the 66 bear
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markets, they went down to an average of 66%, to 5% of the high 22 weeks after the peak. four and half months. it takes a while to wind it away. it is not that it goes down and never comes back again, that is extremely unusual. 87 was a fluke. bear markets usually take a while to develop. going back to the last couple of years, these nasty, brutish short, shallow corrections are very typical. it means we are still scared and all it takes is a couple of points to go down. after a while i set i was bullish but i didn't mean it and i'm scared to death. it is a good thing. >> what would make you change her mind and think that this is the real deal? john: i think you needed to go sideways for a long while. i think that this has been driven by the federal reserve into a degree what earnings have been doing.
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anything more than just a cyclical tort does of what happened with energy. if i see the fed about to tighten, not raising rates, but really trying to slow the economy down. until i see the fed start to do that, i will stay positive. i have never seen the american consumer just pack up and go home. you have to do something. >> a 4.2% estimate falling in the third quarter, where is the lack of concern? at what point do those levels fall to the point where you do feel that visceral reaction? john: that is a positive surprise. you have low expectations already. the other thing is that earnings are not that important.
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it is where we look. sometimes it looks out 3, 6, 12 months, and this is as bad as it is going to get. if that is what i suspect, the street has a tendency to look beyond that. that helps europe europe gets stronger. oil is down an awful lot, you get all the problems of the first six months and the benefits of the second six months. if this is the worst the street can sort of swing it's focused out a few months -- it's focused out a few months, a few quarters. betty: you have what, three investment teams? one is by integrated oil, big oil. number two is by bio techs. on weakness. undervalued by attacks. john: well, there is no such thing. betty: sure, they are all overvalued. john: they are very highly
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valued and i would like to see the puff come out of them. i cannot think of a time when pure value can -- pure value collections did not end well. if they can do what they think that they can do then i will pay more for it down the road. >> really? john: it is like falling on an up escalator. you will not tumble, it rises up to meet you to cushion the blow. i think the fundamentals are sound. the timing of the research that was done 10, 15, 20 years ago we are starting to see the results. i think that that sort of valuation puff goes away at some point. betty: the third one is what, europe? john: europe is a different story. betty: great, great to see you, john manley. also, joe, alex, thank you for staying with me through the open. coming up, one giant leap to
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mars, an american spending a year away from earth. not to mars yet. on the international space station. but what does a one-year spaceflight mean for this new era of space exploration? we will be back. ♪ >> and lift off, the year in space starts now. ♪
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betty: well, trading is just underway. stocks look to be higher right now. our chief market correspondent scarlet fu has the action. pretty big rally going on? scarlet: nine out of 10 of the industry groups are rising. seven out of 10 of the dow industry groups advancing. tracking chinese stocks, getting a boost right now by 2.7% dovish comments from a chinese
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central banker, with quantitative measures he says the government can do more to support more interest rate cuts. here to the united states, they were upgraded to outperform one of the highest companies. oracle getting a boost with a more competent view on its cloud base tivo getting an outperform rating from the quarry, saying that the video platform had a process for international study. betty: i know that you like talking about movies. tell me about the weekend box office hit. scarlet: i know you probably did not go to see this movie because it is probably too young for your boys, but "holes" was a surprise hit for dreamworks.
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four of their last six movies lost money, but here "home brought in a lot of money topping "get hard." rhianna and j. lo did the voice of the movie. something about aliens? not my kind of thing. betty: they are too old, i am too old for this now. thank you so much, scarlet fu at the breaking news desk. over the weekend this happened. >> separating from the tower in 15 seconds with engines igniting. we are ramping up. lift off. the year in space starts now. betty: lift off.
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they said goodbye to earth and hello to the international space station. they will spend nearly one year aboard the iss, twice as long as the standard mission. it is nasa's first attempt to study the effects of long missions. one day we may want to go to mars. here's how scott described the mission to us a few weeks ago. >> some of it is how to improve life on earth. this kind of off the earth for the earth philosophy, where we do research for improving life on earth but also the exploration-based research, how to go further beyond earth orbit , that is really what this one your mission is about. betty: joining us now from houston, former master -- a former nasa astronaut clayton anderson. author of an upcoming book, "ordinary spaceman." it is about the ordinary things you do in space.
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like taking out the trash. first off, what is scott kelly experiencing right now? clayton: he is in the first quarter of a football game that will last for one year. it he is excited, adapting to the crewmates. even though he has been there before there is a bit of an orientation since he was last there. he is on a pretty good high right now. betty: but that high will inevitably get lower and lower the longer you spend on the iss. you spent a good several months there yourself. what happened, clayton, when you past the six month mark? what are we trying to learn beyond six to eight months on the iss? clayton: most people believe that we all want to go to mars some day and in order to do that the distance and the travel that it will take is long enough that one year in space for scott kelly and mikhail kearny ecole will provide more
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information on how the human body can adapt and survive. we worry about the human body, heart blood pressure. the longer they stay in space the more data we get, the smarter we will become when we do decide to go to mars. betty: what is the most unusual thing that happens to you, physically after being there for so long? clayton: most folks coming back from a long duration spaceflight, you are very heavy and methodical in what you do simply because you are pretty much exhausted and your muscles have not done what they have done on earth for a long time. what i thought was normal though it was a three-week rehabilitation process for me to be able to run the same speed and amount that i did before i left the planet. betty: clayton, there is a
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fascination with going to mars. you are puzzled by why we want to go? clayton: i'm not necessarily puzzled by why, i'm puzzled by the steps we are taking to get there. i am a believer in going to the moon first and establishing a lunar base. if we really want to live off the land on mars like a lot of the theorists tell us that we can, we need to learn the techniques and learned the design and mechanisms of the actual pieces of equipment we will need to do those things. to do that for three days on the moon is a great way for us to learn and adapt and overcome our deficiencies before we enable ourselves to go on a six to nine month journey to the red planet. betty: so, why are we not doing that? why are we not back on the moon? clayton: that is apparently
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above my pay grade. i think that we should consider the lunar base the first step in going to mars. a lot of people say that we have done that. we have visited the lunar surface but we did not really do a lot there. i would like to prove and have these pieces of equipment that can get water from the lunar surface to create the oxygen, hydrogen, or whatever it is that we believe is there for us to use. we need to go there to begin to develop mechanisms that will allow us to do that and then apply that month -- that knowledge to mars. betty: over the weekend elon musk -- do we have that soundbite, guys? he's said that he believes we will go to mars over the next decade. -- in the next decade. is that possible? clayton: with enough money invested, anything is
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impossible. one of the things that people need to keep in mind with scott kelly and those guys on the station if you were to ask me to go to mars i would want my spaceship to be at least the size of three space station modules to make that journey. that's just clayton talking, but most people think that that is the proper design for these small capsules that might go to mars. but that they will be attached to something bigger and i don't think we know what that is yet. betty: clayton, thank you so much. thank you for joining us. we will be right back in two minutes on "in the loop." ♪
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betty:betty: well, it is a big week for ford presenting the new lincoln continental sedan along with three more models at the new york international auto show. they are looking to reverse decades of decline.
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will their $2.5 billion investment a off? joining me now is matt miller, who will be sitting down with the company's president and ceo for the next -- in the next hour. a lot riding on the lincoln? matt: i'm super excited to ask mark a number of questions, lincoln has been dragging for so long, they've never made the comeback that everyone hoped. remember this is the one brand that they cap when alan mulally this huge turnaround. they sold off their other brands , like jaguar and land rover. it hurt a little bit. i always recommend that they by aston martin back but we will talk about this tomorrow. i have the ceo of aston martin on tomorrow. we are going to see why they kept lincoln. i think that this car is the reason we have all been waiting for and i just hope that i can convince him to put some side doors on the thing. suicide doors.
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they open the opposite way, like a worldwide. for you know the intro to like entourage, where the kids get in and the doors go backwards? that was one of the coolest features ever on the lincoln car. i want him to bring that back and put a big engine in their with a real will -- rearwheel drive platform. betty: what is the demand like? matt: that is another good question. is this another big luxury? is this going to be a halo car? something that they produce that is, of course, aimed pretty squarely at the chinese. betty: what are you looking at me for? matt: because you're the anchor of the show. and chinese, of course. [laughter] betty: matt miller, be sure to
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catch mats interview with the ceo of ford. [laughter] ♪
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betty: well, do commodity product hits the market today. trading in storage futures. alix steel joins us now with more. tell us, why is this contract happening now? alix: it comes down to the idea
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that we are producing more oil than we can store in the u.s.. it getting worse. overall last week we had in enormous guilt of crude with the biggest increase in the midwest. cushing is right now 80% filled the main hub in the u.s.. there are two issues going on here. one of them is financial. it is more profitable to sell crude in the future. why not by now, sell in-store later? the other part is really fundamental, going into maintenance right now they are going to make your gasoline for the summer driving season, so the refiners tend to use less crude, leading to a stock build, which means that the storage is in high demand and whether is demand you know that someone is going to make a financial product. there are three players involved in this contract. they actually trade their futures. then they're all -- then there are neil markets where you can purchase a stored certificate.
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then there is loop, which stores the oil for you. every first tuesday of every month you go and they are going to auction off 7 million barrels of storage. you can buy it and turn it into storage right then and put your oil in the storage there or move it to the cme that converts it into a futures contract. and then you hold the contract and then you can trade it or do whatever you want with it. you just have to be an eligible commercial participant. betty: what does that mean for physical storage of oil, then? alix: the biggest thing is transparency. this is all kind of under the table. this creates a very transparent way to see what storage is actually worth here in the u.s. and it creates a way for companies to hedge. if you lock it in one way, $50 for a year worth of oil storage
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making that number up, you can go ahead on the exchange, which is different from anything we have seen in the past. betty: total storage capacity in the u.s. is what? alix: it is hard to pick out. as of november it was 439 million barrels but that has probably increased as a certain extra capacity has come on mine but we are definitely getting somewhat close to hitting the level as opposed to say, the gulf coast. there is a lot of storage down there. that is where loop is, in the gulf coast. one copy out i want to mention for this contract, it only stores our crude. all of the oil that is wrapped up and 80% full, are we going to hit that? it literally cannot be stored from the contract of the cme. the reason we care about this, why do we care this has the potential to push oil prices lower. citigroup has warned that oil
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could hit 20. betty: alix steel, thank you so much. that does it for today on "in the loop." the man called one of the most influential storage advisers of his -- of the century. and pulling back the curtain on the world of overproduced, fabricated reality television. does that surprise you? ♪
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erik: deal or no deal. one more day before the deadline for an iranian nuclear agreement. you should topple not expect that happen until the last second. f me: ford, bringing back one of their big names from the 60's the lincoln continental. >> talk about the tough act to follow, we will talk about the guy who is going to replace john stuart on "the j -- the daily show." this is a busy week, autoshow


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