tv Taking Stock With Pimm Fox Bloomberg December 11, 2013 5:00pm-6:01pm EST
>> this is taking stock. the theme today is high in the sky that comes down to earth. a budget deal before the new year as congress pushes partisanship aside. we'll hear from the lawmaker who's going to drum up those votes. peopleearly 3 billion cook with primitive methods him ad one colorado company makes
more efficient cook stove and transforms their lives. don't have time for a manicure after work? why not get one at work? manicube, making the impossible possible. for a look at the individual companies making headlines today, let's go to my cohost him a carol massar. >> a record initial public offering for a lodging company. they sold shares at $20 each. pandora shares falling more than seven percent today after spotify announced it will offer free me the -- free music service on mobile devices. froman now get groceries amazon.com if you live in san francisco. the amazon fresh website offering same day delivery on $35 orders.
they rolled it out in seattle back in 2007 and in los angeles this june. the flavor this year is pecan pie. they are offered for a limited time only. i think i would go for the pecan pie. what do you think? >> who knew? thank you very much, carol massar. on capital hill, a rare moment of bipartisanship. the houses voting moral on a new budget deal. it would avoid another government shutdown, at least for the next two years, while replacing automatic budget cuts with other savings. it does steer clear of any difficult decisions over taxes and entitlement programs. house speaker john boehner defended the deal against criticism from outside conservative groups. >> they are using our members and using the american people
for their own goals. this is ridiculous. listen, if you are for a more deficit reduction, you are for this agreement. >> the white house backed the compromise today, but not everyone in washington is on board. wherehead to capitol hill peter cook is standing by with a member of the house republicans leadership, the chief deputy whip peter. >> he will be one of those republicans trying to count votes on this budget deal. thanks for joining us, i appreciate it. we heard the speaker defending the deal. what is your sense about support for this package among house republicans? >> i think there is strong support, for a number of reasons. it is an incremental step in the right direction. offers deficit reduction and doesn't raise taxes. probably most importantly, it breaks into the idea of dealing with mandatory spending. that is the real driver.
from a republican point of view, those are very attractive features. i think a lot of our members are looking at it and are favorably disposed for it. >> i heard a small number saying this is not a good enough deal. it does not do enough in terms of driving down the deficit. some consider the user fees the equivalent of tax increases. >> user fees are not tax increases. we have user fees in the ryan budget that every one of those members voted for. that needs to be jettisoned. it doesn't make sense. this is a small step. had republicans in the white house and did not have divided government, you would see a very different fiscal approach. the reality is, we don't. we have to deal with this reality rather than a pipe dream. the reality says it's time to take a step in the right direction in divided government. the only way to do that is to
find common ground where you are not asking anybody to violate core principles. there are not cap decisions on entitlement programs or taxes. is this deal worth it, if that is the case? >> it is clearly worth it. you get two years of stability. there's no percentage for anybody in having to wonder about countdown clocks and all kinds of drama that can come out of this town. there is a premium to be paid for stability. of course by definition if you are working with people with whom you disagree, you always start on the easy things. is to over characterize it and say it is a remedy for everything. it is not. we still have very difficult things to deal with, but of course you would deal with the easy things first. it is a confidence building exercise as well.
>> on the democratic side we are hearing criticism over what is not included in the deal as well. they say it is not the right time to be pulling back. are you opening -- open to moving something like that along? >> the president needs to propose a solution here. he has not set up a proposal that is paid for. the white house is sleeping at the switch. there are a lot of things that are not in this bill. all kinds of things that are not in this will. we are concentrating on what is in the bill, the prospect of keeping the government open and manageable for two years, deficit reduction, not raising taxes, and finally breaking into the mandatory entitlement spending of this equation. we could look back and say this was the pivotal point for our nation when we started to move forward, albeit with tiny steps.
>> is there any doubt about the outcome? >> i have nothing but confidence that as congress will pass this with strong votes on both sides. >> one issue that is not dealt with is the debt ceiling. are we looking at that again next year? >> there'll always be a fight around the debt ceiling. i'm confident that when it comes down to it, we will make sure that the bills are paid at the federal government has incurred, and hopefully we will get a better trend and use the debt ceiling as another point to pivot to make some changes. fewer countdown clocks and 2014 is what i hear you saying. >> you can quote me on that. >> thanks very much, peter cook, our chief washington correspondent on capitol hill. coming up, i will tell you about some of the most exclusive and houses in america and how one of them set a sales record.
>> this is "taking stock" on bloomberg. i am pimm fox. mortgage index increased about one percent on an increase in applications that happen last week. i want to focus on another part of the market. the world's most exclusive penthouse listings in miami beach. to discuss the world of high- priced ellis day, i'm joined by the president and chief executive of douglas elliman development marketing. you handle a portfolio of current and future developments worth about $15 billion. susan, thank you so much for coming in.
let's start off talking about the market in south florida. is it different than the market in the rest of the country? >> absolutely. if you think the miami heat is hot, the south florida market is hotter. have seen the prices go up exponentially in the last year and recognized an incredible record but -- record-breaking sale. robust realg a very estate market in south florida. >> where is all this money coming from? around therywhere world, but in particular, a lot from new york city. at $3000 a square foot, that is a bargain. >> what has changed in the market in south florida? there are booms and busts, national as well as local. what has changed to make this so
attractive? become a very internationally diverse city. it has become a very cultural capital, which is one reason why we participated this past weekend so we could net with our global clientele. purchases from russia, from india, south america, all over europe. it has become a very diverse not ation and it is seasonal community anymore, it is year round. a lot of fine restaurants and just wonderful weather. >> let's talk about, for example, the residences at miami beach edition. tell us about the project. 26 one-of-series of a-kind residences and it's nothing like miami has ever seen in terms of the level of design and sophistication. not seen thisas degree of architecture and
design, which is increasingly becoming more prevalent in south florida. >> what are some of the amenities, some of the scale we are talking about? how many square feet? >> anywhere from 2000 square feet up to 7000 square feet. there is a demand for very large residences in south florida. any people bring their families for vacation and it has become the hot spot in america. >> what about the other areas of the country, for example, new york city? that also has a reputation for high-priced real estate. >> new york city and london continue to run neck and neck in terms of being the top most desirable locations for people to own homes. in soho is quite extraordinary, because we only have 61-of-a-kind penthouses with barrel vaulted brick ceilings. you have these authentic
theures with all contemporary amenities and conveniences that a buyer looks for today. master bedrooms have wood- burning fireplaces. are very unique, custom homes. >> how much does it cost? >> a cool $21 million, up to $60 million. for $60 million, you get 7000 square feet of interior space and over 5000 square feet of exterior space. gem. really a rarefied >> is this an all cash market? >> indeed it is. in south florida and new york. >> another project you are working on -- >> it is truly a unique proposition.
we are developing a new district and 35thbetween 32nd street on collins avenue. the building is designed by foster and partners. only 44 condominium residences, and what is truly amazing is that it is indoor and outdoor living. you have continuous balconies that goes around every single residence. it allo $50 million, and can be yours. thank you very much, the chief ellimane of douglas marketing. >> cocoa prices hitting up recent high. how is it affecting the bottom line? we will talk to achieve executive, next. coming up, nearly 3 billion people cook using primitive methods, but we will introduce you to an innovative new cook stove. that is next. ♪
>> some breaking news from bloomberg. facebook is set to join the s&p 500 and the s&p 100, going to replace teradyne. once again, facebook joining the s&p 500 index. on to sweet treats for everyone, chocolate. max brenner is a global restaurant whose honorary ingredient is chocolate. they hope to change the culture of the cocoa confection. joining me is the chief executive, thanks for coming in. tell people about max brenner. there really isn't a max brenner, it is a combination of the names of the founders.
in 1996arted in israel and is currently owned by the strauss group. we have about 50 locations globally, 40 of them are chocolate bars and 10 of them are chocolate bar restaurants. >> hatted you become attracted to max brenner? you have all your hair. max brenner is supposed to be the bald guy that does chocolate. i was looking to develop my skills and apply them to a creative brand. a brand that really attracted me. i like working with the strauss group. they are a great group of executives that manage and organize the parent company. >> how do you describe a chocolate bar, and i don't mean the kind that you'd eat? what makes a chocolate bar in actual bar, a destination? --it is literally of our
literally a bar. milkshakesixture of and chocolate bar. you can sit there and watch all those things be created, and it's really a lot of fun. >> who names all these things? you have chocolate syringes, chocolate pizza. >> we have a very creative group of people at max brenner. we have one person, our creative , a very sharp person within the chocolate industry. >> do you get to taste everything before it is produced to the public? >> every single item. some days it is tough when you are doing it two or three times. >> have you ever turn something down? >> yes, i have. there were couple of dishes where i thought the combination of items, the flavor profile was
just not something our customers would get today. we put it in our recipe box and keep it and you may see it two years from now. >> what about expansion plans? i think you are on target to do boston. >> we are in boston, york,elphia, new bethesda, maryland. we just opened in japan, very successfully in tokyo. we will be opening in moscow in march and here in the new york area we will open garden state plasma probably the -- gordon state plasma. >> were some of the top sellers? >> the chocolate pizza. >> is it because of the name, or they are just surprised when they get it? >> they are not surprised. it's pretty obvious you're getting marshmallows and chocolate on top of dough. to it aend to gravitate
lot. >> how do you deal with the competition? is it having those retail locations? >> it is a combination of the indulgence we want people to experience. we want you to engage in a different way than just picking it out of a glass box. pact -- packaging is also key. that has been the driver of many different brands. how did you come up with the packaging? a creativee have group in israel that does most of our graphics. it is a mixture of how we feel about the chocolate, how we feel about the industry and the consumer. put all that together in a colorful package and that works for us. >> what happened to the bald man? >> it is still our logo. , we keptiginal founder that logo.
next in each ends that max brenner is going to be using online opportunities -- >> any chance max brenner will be using online opportunities? >> we will have a more functional site in january. we are getting a lot of traffic in that area. >> how about sourcing the actual cocoa, the ingredients? have farms in the western african region. we have our finished products factory in israel. >> you mentioned having african sourced cocoa. how important is it to be able to trace the working conditions and the conditions on those plantations for the end customer? >> it is very important. we participate in a program with one of our vendors that is in theabout fair trade
certifications necessary to make sure those conditions don't exist for chocolate producers used for max brenner. >> what about the actual cost versus what ends up showing up for the consumer? >> if you're looking at the farm , you are seeing a bit of a jump in cocoa prices. is about a three percent industry demand worldwide. we try to maintain our prices for consumers despite that rise. is there a lot of chocolate in your household? >> there is a lot in my household. >> takes for joining us, chief executive of max brenner. time for on the markets on bloomberg. points,jones loses 129
clark's this is "taking stock." let's go to mark crumpton. >> facebook after our shares are up about 4.0%. the s&p is set to join 100 and the s&p 500. jpmorgan chase says that they want to move past allegations that they have failed to alert authorities about concerns that bernie made off was operating a ponzi scheme. >> we have a lot of litigation.
you read about made off in the papers. we need to do our job. that is our job. i want to get it behind us. the theydimon express are fighting the allegations in court, but a settlement would be the better option for the future of jpmorgan. stanley fischer is said to be president obama's leading candidate to become vice chairman of the federal reserve. the former bank of israel governor would replace janet yellen as she succeeds ben bernanke as fed chairman. coming up tonight on "online," line," we will discuss the implication of the house -- health care law. that is coming up in about 90 minutes you're on bloomberg tv. hope to see you then.
>> thank you very much mark crumpton. it is a shocking statistic. millions of people died from the smoke that is caused by cooking on open fires inside their homes. envirofit, this is a company that is trying to change all of that. they make small stoves that burn fuel more efficiently. they reduce toxic emissions by up to 80%. joining me from washington, d.c. is the chief executive of envirofit, ron bills. tell us about this else. >> thank you for having me. s arenvirofit stove designed around a combustion chamber that improves a -- efficiency by over 50% reduction in fuel use and 80% reduction in toxic emissions. >> how did you come to make this cook stove, but also how did you know about this problem? a 10-year-olds
social enterprise. it was founded under the ideals of creating products that improve energy efficiency, reduce pollution, and provide health and economic payback. the original design of the snow was conceived in about 2007. it was conceived in conjunction with the shell foundation in developing products that reduce indoor air pollution. we piloted this program in india. today we have sold about 700,000 goats. we have factories in india, africa, latin america, and china. >> what does this cost people in those regions? aroundstove costs are $15-20 five dollars, depending on the location and the delivery duties and tariffs. what is the perception that
you have received from local governments? >> government reception has been very strong. of example, africa, 90% deforestation is a result of cooking. when we look at the troubles around indoor air pollution and finding wood, charcoal, and the purchasing of that, in many places, families spend up to 40% of their incomes on buying cooking tools. have you heard from individuals directly, receiving letters or messages? is there a story that has particularly touched you? >> i was in kenya about two months ago and they visited a family that had a cook stove for over a year. they save the family -- the money that they were spending on fuel and they applied it towards their children's education. they were able to send their oldest son to high school. >> i wanted thank you very much
for joining us. ron bills, the ceo of envirofit, the cook stove. let's turn to making business success in a different way. nearlyms has drawn 90,000 to over cartoons since it began in 1999. his cynical take on office management has appeared in newspapers across the country. now he is revealing that the key to his success is failure. to fail at everything and big" in bed -- still win is the new book by scott adams. >> it is a template. i do not believe in advice. what works for me may not work for someone else. i thought it would be useful because before you start to do anything important, the first
thing used -- the first thing you do is you ask someone was tried that thing and wonder how it turns out. >> how did you start with dilbert? what did that teach you? dover was a long process in which i accidentally developed a number of skills that my case are fairly average skills. my artistic talent is fairly mediocre. my writings gills, i am not be best writer. i am not the funniest person in the room. but i have a little bit of business skills. you put it together, those average skills, and they become very valuable. oddsed from a place of low to a place of better odds through a system. exit is part of this system, you have guidelines on how to figure out whether people are telling the truth. i was a hypnotist for a while. i actually took courses on hypnosis. i have a little bit of insight on how to know when people are
lying. there are more expert on this than i am. it made a good chapter in the book. for example, if you say, did you kill someone last night? -- a liar would say, what makes you think that? an honest person would say, what are you talking about? you can usually tell by the choice of words. but the choice of words can also be used when you are thinking about a particular career. you have to enlist other people. you make a point in the book of jerk. don't be a >> i tried to outline a number of behaviors that you want to avoid. if you ask me to list them, i will probably forget the mall because i am on camera. but it seems like 20% of the world is being a jerk and may not even know it. i thought it would be useful to list the ways that they may be being jerks.
>> what about the massive success? >> the math of success is about combining average talent. like tocase would be, i use this as an example, ryan seacrest. he is estimated at $65 million next year. if you look at his looks, he is good enough to be on tv. he is not the funniest, the best at anything. average whole bunch of skills, maybe a little better than average, that put together are hugely valuable. that is the map. >> what about timing and how that plays a role? >> timing is just a righty of luck. you will not find anyone he -- anybody who is successful without lock. the biggest piece of luck in my career was went over launch, it wasn't in a lot of news acres. i could not sell it on the west coast at all. the reason was that the salesman who handled that territory did not like my comic.
happened, he died. he dropped dead. he was replaced by a guy who said that dilbert is the best comic out there. i will sell it like crazy people's and he did. he sold it to every market in the west coast. that's what are some of your spectacular failures? >> i had a food company for a wild. a vegetarian frozen burrito. i had to restaurants. but there out great, was an incredible stroke of bad luck. the second restaurant, i opened it on 9/11. that was bad timing. nothing of but restaurants open next to it. i had never even heard of a mall of nothing but restaurants. >> i wanted thank you very much. scott adams, the creator of dilbert.
coming up, i will introduce you to an artist was made greeting cards that are based on rupert murdoch's tweets. it might make you a follower. also, who says you cannot have some glamour at the office? i will introduce you to two entrepreneurs were taking the business of beauty in a new direction. the trend is re: catching on here in the newsroom. ♪
pre-k's my next guest says that rupert murdoch is amazing at twitter. she was so inspired that she used his tweets to make reading cards. i want to welcome the artist michelle vaughan. let's talk about the connection between twitter and greeting cards. how did you get connected with the world of online exposition
and turn it into the world of greeting cards? >> i began with a project called 100 tweets. it was a major project where i handset 100 different tweets that i chose and exhibited them 4 paper.1 it was a huge exhibit. from there, i moved onto greeting cards. 'sfelt that rupert murdoch tweeting lends itself to greeting cards. >> he has been a prolific twitter follower. but step back. your background as an artist. how did you come to this of using twitter as a original material for some of your expressions? >> i am a twitter addict. i love following journalists. i follow artists and writers. when i was evicted and going , i thoughttter often
this would be an interesting marriage. it is very high-tech and tweets disappear in the feed. this was a way that i could take the tweets and make it permanent. it is very low-tech way. >> it takes hours and hours. what is the scale? you cannot just flip the switch and create hundreds of thousands. tell us about the scale of the business right now. the project has been very successful so far. when i launched an online, i had 30,000 hits. that is amazing for an artist. that was exciting. i have sold quite a few already. now they are in a gallery space downtown. >> this has moved from online to the off-line world.
>> now we are back into analog. [laughter] >> how did that happen? >> someone was interested in taking the project and showing exclusively in a store. >> where some of your influences as an artist? this, iomething like look to artists like william hog gart, and 18th-century british artist. >> also a cartoonist in some ways. >> a cartoonist. he was extremely talented. he looked around at society and politics and make art about it. >> what do you want to do next? >> i am planning on continuing with the perhaps more murdoch tweets -- i am very interested in murdoch as a figure. i will probably continue. what has he contacted you are purchased any of the cards? are not necessarily
controversial tweets. they come directly from him. if you have not contacted me. he is more than welcome to. >> i want to thank you very much. the shelf lawn, an artist used in new york. , an artist vaughan based in new york. mania up next, manager has taken over the bloomberg newsroom. to theintroduce you individuals behind a cutting business. that is next. ♪
elizabeth whitman, and chief executive, katina mountanos. we are joined by carol massar. >> i have to say that this is a great idea. i never feel like i have enough time to run out. what was the original idea? >> or sure. we went to harvard business school together but we did not know each other in school. we met years later working in the manager industry. there are two things that underlie the idea. we were identifying a need. we were running around and meeting executives. they cannot go to meetings of chips nails. we were working long hours. ducking out during lunch for an hour was not an option. it was a game of trying to make it home before the nail salon closed. one of us was pathetically begging at the windows to no
avail. we knew there was a better way. katina worked in the industry before business school. we saw a lot in office services targeted at men. you mentioned the shoeshine guy or barbering. there were no services for women. >> how hard was it to get started? was it easy to sign on corporate clients? >> we build a business model that did not require a lot up front capital to test the concept. we knew that we were onto something. people get very excited as soon as we talk about this concept. people say it is the most awesome idea ever. from customers and clients to date has been incredible. it gets as excited. we get e-mails all the time. thank you for saving me an hour that i can now spend with my family on the weekend. thank you for bringing this back
into my life. >> it is an idea of the scale of the operation? cities rightltiple now. what kind of demand easy? >> we are in new york and boston right now. we have 60 clients across those markets. the companies that we serve very across sector and company size. we serve people in advertising and retail. we go to consulting firms, accounting firms, law firms. >> you go to the human resource departments? not actually serve individual customers one-on-one. we go through hr departments. we set up recurring weekly visits. we take him to bloomberg every monday from 9 a.m. to four clock p.m. -- 4 p.m. full it is faster then waiting your turn.
>> i'm curious about the business model. 20 dollars per manicure. are you profitable? >> we do really well. we are pleased with that. we have found a way to create a model that mimics the council salon without the larger cost. there is no overhead. we are a mobile salon. allows us to charge really affordable prices for what are comparable to what you would pay at the corner so on. >> what about men? i can understand women want that sort of service, and they demand it and use it. can you give us some idea of the demographics? -- eight percent-five percent of our customers are men. not our main are demographic. we are trying to make working women's lives easier.
but if we can make a man's life easier in the process, that is great too. >> what is next. >> thinking about expansion gets as excited. we think about expansion in terms of three phases. we think the geographic expansion of our nail services to other cities like chicago, los angeles, san francisco, dallas. in the medium-term, what we hope to do is offer services on demand, through customer smartphones. a manicure or pedicure in your home or office. third mission is offering it at affordable prices. >> carol does mention that it is competitive with those in salon services currently. is it really just because of the fixed overhead that disappears? it att allows us to offer such competitive prices. we serve many people throughout the day.
we do not the one on one just yet. going one-on-one could become more defensive, but we are working on how to do that of orderly. our long-term expansion plans are where we get really excited. it goes back to our mission of making the working woman's life easier. she has her children, her spouse, her beauty routine. in addition to offering other services, we will think about how we can simplify her life. could we source or groceries, or a home-cooked meal for family? >> i am ready for something like this. >> you want someone to do this. maybe they can help out. >> i waiting for that. if i want to thank you very much. my thanks also to both of you. how do you like that? >> i love it. >> my radio cohost, carol massar.
live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm emily chang. our focus is on innovation, technology, and the future of business. let's get to the rundown. >> should you be able to make cell phone calls in flight? federal regulators take up the issue tomorrow in what could be the first step to turning the friendly skies into the chatting skies. spotify get the lead out.