Skip to main content

tv   Taking Stock With Pimm Fox  Bloomberg  December 13, 2013 5:00pm-6:01pm EST

5:00 pm
♪ >> in is taking stock for friday, december 13, 2013. i'm pimm fox. we're going to focus on revival. the t is looking to have ultimate revival. plus, gold medalist scott west scott, the olympic snowboarder. he'll tell us how he'll bounce back from his injuries in order to reach the podium once again at the winter olympics in russia. the company overcame prohibition
5:01 pm
and bankrupty to become one of the nation's top lick or brands. first, headlines from olivia. >> thanks. steve moll cough is going nowhere. one day after he was considered of microsoft, qualcomm names him as c.e.o. verizon will probably demand about $3 billion for the spectrum. and finally, visa and master card won approval for a $5: billion settlement. the lawsuit settled on allegations that the credit card swipe fees are improperly focused -- fixed. those are the top headlines. >> thank you very much.
5:02 pm
more news, a potential cable consolidation. charter is said to be offering a letter to buy time warner cable. this according to a person who's familiar with the matter and this comes after earlier this week when a person said that scoir communications was discussing a possible build for scripts -- scripps networks interactive. i'm joined by u.s. cable networks head of i.h.s., eric brandon. he joins us from san francisco. good to have you both with us. there are a lot of moving parts. what's going on? let's start with charter communications. >> it's run by tom rell itch. he comes from cable vix, which was time warner cable before that liberty -- charter is looking to make a build for time warner cable. there's an offer letter next
5:03 pm
week. after months and months of back and forth speculation. >> why would they want to take over this cable network? why more consolidation now? >> well, as we all know, cable is facing many challenges, specifically from the likes of at&t and fios. i believe that consolidation would be advantageous for the future company. first, it would provide them some room from which they can innovate. secondly, it would private -- provide them cost efficiencies. in theory, it is plausible that the combined company would be able to negotiate significantly more advantageous carriage deals with their programming partners, so overall i think that it would be a good move for both
5:04 pm
companies. >> is this going to give more power to already entrenched players? you think of time warner cable or any cable system. it's not as if you have a menu of 30 options. you may have one, a dominant player in the market or make one or two or at the most three players to choose from. >> that's a good point. cable basically virginia has had mononormallies but right now cable companies are suffering. people are going to competitors or satellite companies so they've been losing subscribers. meanwhile, the programmer guides like discovery and cbs, they're asking for more money. so the logic is they team up, they get bigger, have more leverage in negotiations with programmers and maybe more operating efficiencies when you have a bigger foot print. that's in theory the reason.
5:05 pm
>> isn't there an argument to be made whether they make profits or not it doesn't have to be slated so that individuals or companies would have to bear the burden of whether this is a profitable industry. no one props thank you horse and buggy whip. >> good point. hether it's consolidation or confederation authority, they need to compete against the netflixes and cbs and discover. they're -- discovery. theye getting it from all angles. that's the reason that john himself has said we can make a deal happen. let's go after it. >> what about those that deliver their content via satellite, whether it be dish network, for example? >> our projections indicate that cable is primarily losing iptvribers to the likes of
5:06 pm
players. ultimately i think the number of people that have converted to satellite will remain fairly constant so i don't really see this having a tremendous effect either positive or negative subscriber growth of satellite. >> scripps network. what's going to happen there? >> they're a relatively small cable network group. discovery has similar kinds of programming. low cost programming in a way. on the programming side, they could have better leverage in terms of negotiating with the distributors. look, we now have 10, 20 channels that you guys could carry so we want higher fees. i think with discovery and scrips it's still early days. but scripps could be an attractive target for another company. >> have the cable companies been
5:07 pm
technology innovators through this cycle? >> that's a great point and another reason why malone has backed consolidation. comcast, which is the biggest cable company, they have a lot of technology that competes directly with next fix or amazon, for that matter. so i think that side favors technological advancement in the industry. time warner cable doesn't quite have it. charter and a lot of the other exabe -- cable guys don't have it. >> thank you very much. you have it. you have all the details. >> try to. >> and my thanks also to eric of i.h.s. my theme is survival. next we'll focus on detroit and how one particular automobile factory is giving home hope to the entire city. this is "taking stock" on bloomberg.
5:08 pm
5:09 pm
5:10 pm
5:11 pm
zpwriverbings years ago gh and chrysler took a combined $80 billion worth of borrowed money. u.s. s a story of how the auto industry came back. i'll sayabsolutely and not the nicest area of detroit. i want to take a picture every day on my way home from work and then create a nice coffee table book at the end of the year and reflect on the things i see. today was the only time in my 20-year career that i got up in
5:12 pm
the money and there was this incredible sense of uncertainty. i didn't know if i was going to have a job the next day. >> we went from one shift down from three so we knew things were getting pretty bad. i was fortunate to only be laid off for a couple of weeks where others i worked with were laid off -- pretty devastating. >> we did absolutely wait took to survive. we cut a lot of different areas. one thing you may not think about is somebody has to cut the grass. so those of us that stayed behind, we had to do something. there are 283 acres here on this facility. there were some areas that were above my knee. >> we were out there actually cutting the lawn. that was interesting. i don't do yard work but wiffs my union brothers and sisters. i was with management. we all worked as a team.
5:13 pm
>> no one should be lower tiered. i learned to manage what i earned and compliment -- complement it with what i actually do on the outside. i rarely see my family and when i do it's not just the work that we do. it's the sacrifices made. >> i got the email right after christmas. thank you, jesus. that's all i can remember saying. >> there's not that many jobs out here paying what chrysler is paying right now. it gets my kids through school.
5:14 pm
it pays the meals. >> we are manufacturing the jeep grand cherokee, the most awarded s.u.v. ever and we're doing it right here in the city of detroit with detroit employees. this isn't the prime location to be manufacturing but we're doing it and we have a puck -- product that everybody wants. a going through almost near-death experience, there's a great sense of pride being involved in this. >> me being there for 20 years, it's just hope. back. lways want to come >> here for more on detroit and its future, bloomberg news' keith naughten. he spent six months working on
5:15 pm
his jefferson plan story. and also with me, the founder of p-3 g.m. he's currently working on a light project for the city of detroit. kight, if you could just describe the beginnings of this story and how you personally saw this change take place. >> it's pretty fascinating and aren't those workers just amazing? they have so much dignity. i love watching them talk and it was great to interact with them. it was a company and factory that had been laid low. it was unclear whether it would have any future whatsoever. people had lost their jobs and today it's one of the most profittable auto cities in -- zriss in the world. he turn-round is remarkable. >> the turn around in this city,
5:16 pm
sergio, that's still under discussion. it's in bankruptcy. it has been able to continue to survive but not under the normal circumstances. for example, 40% of the city's streetlights don't work. >> exactly. > so where does something like p-3 g.m. come into this >> we look at something as simple as turning the lights on. bringing in smart bulbs, using l.e.d. as well as now adding technology that allows it the -- us to create an interconnected network. then you can start to use that for the future internet of things as well as wi-fi and cellular offload. >> where does the money come from to do this? >> we create a private -- private-public partnership. we create a 20, 30-year deal
5:17 pm
structure and by virtue of creating a network, we are creating a new platform so that we can create revenues from media and/or wireless and/or wi-fi. >> keith, you heard about private and public partnerships. is that is template for the future of detroit? >> it certainly could be one way out and the city needs some help. it need lighting. it's hard for those who don't live here to understand what a huge problem that has. there are entire swapts of the city that are just dark and in a city that is already pretty crime infested, when you turn the lights off it only gets worse. >> can you tell us about the role the auto industry makes in detroit and surrounding areas? this factory, this plant, north
5:18 pm
jefferson, it's in the city of detroit. >> right. it's the last auto factory entirely in the city of detroit. all the others have movemented out into the suburbs or moved to other states where it was in some cases cheaper and in other cases a bigger tract of land. motown doesn't have system mo in it but the industry is still a huge scours -- source of employment for the region, for the city, obviously a huge sense of pride. as goes that industry so goes detroit. which is why there's a huge dichotomy between the fortunes of the industry which have come back and the fortune of the city, which have plummetted. >> what do you propose? >> to use a certain section of the city to show the value of interconnectivety as well as
5:19 pm
turning the light back on. using that metaphor to use smart infrastructure opportunities and let detroit lead the way for america. >> thank you very much. keep us up to day. -- date. sergio, and my thanks also to ith naughton the author of "reckoning to revival." coming up, i'll speak with the distillery michter's about their brand and later, does the nfl legend archie manning have any desire to put on a headset and roam the nfl sidelines as a coach? find out on "taking stock" ♪
5:20 pm
5:21 pm
5:22 pm
5:23 pm
>> sales of super premium whiskey in the united states are up 94% over the last decade. ccording to by stilled spirits counsel. michter spirits of louisville, kentucky is leading the market. it's product is called celebration sour mash and it sells for about $4,000 a barrel. no, a bottle. all right, i was thinking of a discount. union joining me is the president of michter's, joe. thank you for being here. i thought $4,000 a barrel would sound more likely. how does a bottle of sour mash end up costing four grand? >> well, there's actually a wonderful wine store in california called wally's and there's a $50,000 cognac on the same page that has offering.
5:24 pm
cognacs and scotches have offered some wonderful releases for many years at the thousands of bottle level but our team is very proud because this is the very first time an american company has successfully released an american whiskey at that time of pricing. >> so what makes it worth $4,000? i'm just going to open it up. >> please. >> what makes it worth $4,000? >> it's just extraordinary whiskey, we believe and really rare whiskey. we're blessed at michter's with some of the best and oldest whiskey stocks. for this whiskey, our mash distiller willie pratt and i went through our barrel inventory and we picked our very, very favorite barrels. some as old as 30 years old. some 20 years old and others we thought has matured superbly. hand selected barrels.
5:25 pm
whiskeys over 30 years old in it and i think it's an extraordinary whiskey experience for someone that really enjoys good whiskey. >> must have been a really horrible experience. >> it's quite arduous. >> i bet. tell us about the history of michter's. >> it was founded in 1753 by a swiss menen night farmer, jon shenk. they did a coin commemorating general george washington's visit to the distillery during the revolutionary war. unfortunately the whiskey industry in the 1970's and 19 80's went through a virtual depression for american whiskey and in 1999, the company went bankrupt. it was a pennsylvania company. in the 1990's i was working with an televisor who had been president of austin nichol's wild turkey and we decided to
5:26 pm
resurrect the branlt. we thought michter's was a great tradition. we set up shop in kentucky, which has the greatest american distillries, in my opinion. it's a great place to operate. >> if you can't go to louisville to taste the whiskey, what places can you go to to sample it? >> woorling places and i'm really -- wonderful places and i'm really glad because someone can get a shot for a few hundred bucks. montage resort in luna beach. a cafe in new york. one of the best bars in the country in chicago. wonderful places. >> there might be people who don't want to spend $4,000 for a lot -- bottle of whiskey. >> and that's why we have other offersings. our u.s. one line retails for
5:27 pm
about $40 a bottle. we will not release anything unless we really believe it's excellent. >> we have to leave it there. my thanks to the president of michter's. coming up next, archie manning on football and kids. ♪
5:28 pm
5:29 pm
5:30 pm
>> this is "taking stock" on bloomberg. i'm pimm fox. for a look at today's market moving headlines, to mark. >> thank you. nasa announced today that elan has won the rights to lease and use the kennedy launch center space pad. sk was in competition with amazon.com's blue origin for the lease. both have won nasa funding to develop vehicles capable of sending astronauts into space. simon property group announced
5:31 pm
plans to put its smaller enclosed malls and strip mall business into a larger u.s. trust. it focuses on redeveloping his malls, outlet centers and overseas investments to boost growth. it's expected to generate more than $400 million in its first year. houston by well has authorized a buyback plan. the iii -- 3 billion share from 2011 is nearing its end. coming up on with the bottom line" at 7:00 p.m. new york time, greg bell area of potomac search will join me. we'll discuss the budget vote, the winners and losers and it's impact on the u.s. economy. that's tonight on "bottom line" in about 90 minutes.
5:32 pm
pimm, back to you. >> thank you very much. i had a chance to sit down with archie manning. despite his calm demeanor the college hall of famer spoke candidly about the pressures of life in college and pro football and why their coaches often advise their children not to follow in their footsteps. >> i've been through playing football for almost 30 years now. probably the only reason medium -- people remember i played is that two of my sons played in college and two still in the national football league. i went to the university of mississippi, ole miss. played football there and went to school, graduated and met my wife there. i really enjoyed that. love the experience. we had good teams in college and i was fortunate enough to get drafted to play professional football by the new orleans saints and i played there for 12 years. we weren't very good. we didn't win a lot of games but
5:33 pm
its there and then wound up getting traded to the houston oilers and minnesota vikings, where i retired. >> the coach's role in building the team? what are some of the characteristics both positive and negative that you've experienced in your career? >> i love coaches and i love and i appreciate -- i know sometimes when we talk about coaches we talk about the real successful guys out there in college and pro ball. but i think the junior high coaches, the high school coaches. i've always said we're fortunate to have a father that has a good influence on us but other than that, people that play athletics, coaches have more influence and more impact especially on young men say in the game of football then anyone else. >> what about your future as a coach, any chance? >> no, i didn't decide to go down that path. i think i might have if i hadn't layed so long but i played pro
5:34 pm
ball until i was 36. >> why is that? >> i think at that point i didn't want -- if you're going to be a successful coach you have to be ready to move. you to have move and at 36 i was kind of positioned there in new orleans and had a young family and i didn't want to start moving them around. i just didn't -- you know, coaches are great and most coaches will tell you don't get into coaching. they tell their sons don't get into coaching. it's because of that nomad life but a lot of their sons do get into coaching and most turn out to be good ones. >> is that an under appreciated aspect of the players? the moving around, uprooting. talk about what that does to a person's life. >> i've had coaches -- in new orleans, as i said, we weren't very good so we changed coaches a lot. the head coach changes, 12, 15
5:35 pm
assistant coaches change too. i had coaches that had moved 15 and 18 times over a 25, 30-year period. you think about moving your kids and family. we think about military families. >> and players too when they get traded. >> and players -- >> does that have an affect on them? >> i played 12 years before i got traded and it never was quite the same. i mean, i wanted to be successful. i wanted to kind of finish strong. i think players have a hard time giving up the game. i think a lot of times you have a hard time -- you know, you're kind of the last guy to know that you don't have enough gas in your tank anymore to be as good as you need to be. but to me, i wasn't at home kind of in new orleans when i played somewhere else. i was somewhere else. it kind of made it easier to say it's time to move on and do something else.
5:36 pm
i think the main thing that's underappreciated about coaches is the hours they put in i think anyone successful -- not many successful people just work eight hours a day. we talk about eight-hour days, 40-hour weeks. people have no idea the hours that coaches put in. some of them 18 and 20 to the point of exhaustion because preparation, preparation and every game is so important. and they work extremely hard and they're families suffer there. they don't see that much of their families, especially during football season. >> in fact, two held coaches had heart attacks this year. >> it's scary. a lot of stress. a lot of pressure to win at every level and i think we need to be careful as fans and meeta. you know, don't -- try not to be part of all that pressure. it's an entertaining game. players, they are going to go out there on saturday, sunday,
5:37 pm
friday night, play as hard, do the best they can but somebody is going to win and somebody is going to lose. i don't like dealing with off that pressure. >> thank you very much. >> thanks for having me. >> archie manning, you still have a lot of gas left in your tank. appreciate it. >> thank you. >> coming up next, we move from football to the olympic halfpipe. i'm going to tell you what it means with our two-time olympic wescott. ist seth he tells us why russia may not be the best location. this is "taking stock" on bloomberg. ♪
5:38 pm
5:39 pm
5:40 pm
>> for what's going on let's go to olivia. >> nelson mandela's funeral take place in the country's eastern
5:41 pm
province. in the u.s. on monday, the senate is expected to vote on the bipartisan budget agreement. the agreement would reduce the budget deficit by $23 billion and ease spending cuts over yo two years. on wednesday, the policy statement will be released. after the payroll rose more than projected in november, pushing the unemployment rate down to 7% and bernie lo noing will also give a news conference in washington, d.c. for more, head to bloombergbrief.com. pimm? >> thank you very much. u.s. has brought home two gold medals in snowboard cross and he cioci ing up for
5:42 pm
following knee surgery is russia ready for him? i asked seth wescott about his take on russia being the home of the olympic games and some off the slope political policies. >> i'd been alpine skiing. i saw snowboarding for the first time in 198 and it instantly, because of my love for skateboarding, just became something i was fascinated and fixated on and i basically stopped my ski racing career almost immediately and took to spending all my free hours chasing snow around. >> so you're chasing know but -- snow but you ended up chasing gold. tell us about some of the awards that you've won. >> i've been fortunate to have great success over the years. 2006, old in torino in came back to vancouver and became the first american man to defend a gold medal in a snow
5:43 pm
sport. >> successfully. >> stressfully. nine x game podeyems over the years and have been very fortunate to have traveled and competed and to gotten to experience the world in a lot of ways through a sport like snowboarding. >> but you've also experienced it through injury, right? tell us about the physicality of the sport. >> the physicality is tough, or difficult. >> just give us a little bit of a list. >> a.c.l. in both knees, broken tibial plateau in that one. i have 13 screws and a plate in that one and two years ago i tore the pectoral off the humaners are bone, plus, sprains, concussions, all the typical -- >> and you're still snowboarding with passion. >> absolutely. >> are you getting ready for the olympic games in sochi? >> i am. this recent surgery, i had
5:44 pm
surgery april 24 to repair the left knee so this whole summer has been time spent with the u.s. team at our headquarters and trying to rebuild myself physically and get ready. but i'm really close now. i've been back on know the -- snow the last two and a half weeks and had great progression and just trying to be ready to go over and compete in russia. >> do you recovery as quickly now as you did four or eight years ago from injury? >> relatively. i didn't notice a huge lag this time and i just think part of it is -- i've had a lifetime of dedication to being physically active. and when you get injured, you have to make sure your habits are good, eating well, resting well. my physical therapy game a -- became a full-time job. five hours a week, five days a week. and look at it as your work.
5:45 pm
>> let's go to sochi with the snow and then talk about the politics. what about the snow? is it ready? >> not yet. we were looking at some weather forecasts this morning. >> you've been there before? >> we were there last year. i do have to commend them, the idea they came up with and how they were harvesting snow last year and transporting it to the higher elevations into cooling systems. what we experienced last year, the conditions were really tough. pouring rain most of the days of training and competition. the year before that they'd had great test runs. the alpine events the year before they'd had a cold month of february. the weather is going to do whatever the weather is going to do. my fingers are crossed that we'll have a cold month and the venues can be great. as an athlete, to wait for years for an opportunity to shine on a stage like that and have weather be a deterrent is problematic.
5:46 pm
you just hope that everything will be up to par so that the athletic performances can be what they have the potential to be. >> have certain comments by vladimir putin, the president of russia, made it problematic for you to go and compete in sochi? particularly his comments discriminating against gay people? >> i started addressing this earlier in the summer and for me, we in the snowboard community have a number of lesbians. i have lesbian teammates that compete and i think the stance that i've gone to now is that, you know, what he's doing is speaking out -- in speaking out in that way is breaking the sixth rule of the olympic charter. it would be my hope that in the future that the i.o.c. looks at where host nationes are going to be and makes sure that the --
5:47 pm
you know, the ideals of those nations are in line with what the rules of the olympic charter are. and no athlete should be discriminated against for any reason when they go to compete on an international stage like that. >> that is number six? >> number six. my hope is that -- >> they're going to be protests and people speak out on there. -- this. >> yep, there will. i spoke up earlier in the summer as the elder statesman of the u.s. snowboard team in the fact that i don't believe my teammates should deal with discrimination when they're trying to represent their country and their home areas. it has nothing to do with athletic performance and it's sad that people choose to discriminate for any reason in this world. >> my thanks to olympic gold medalist seth wescott.
5:48 pm
opening ceremonies february 6. seth will compete on the 18th. coming up, you'll meet someone who took their winnings from the show "who wants to be a millionaire," and started a company aimed at helping you win. the company is called lumber fire. find out how nick was in the right place at the right time. that's next. ♪
5:49 pm
5:50 pm
5:51 pm
>> this is "taking stock" on bloomberg. i am pimm fox. time for our segment "right place, right time." people in business who are in the right place and right time to make their business is and careers happen. today's guest is nick, the c.e.o. of number fire, about helping consumers with their fantasy sports leagues teams. nick, it's a pleasure. thanks for coming in. >> thank you. >> you go from carnegie mellon
5:52 pm
into pittsburgh, computer science who winning $100,000 on "who wants to be a millionaire." >> yeah, i was reading in the local newspaper that they were auditioning to be on the show so its ok, i'll go ahead and see if i can make it on. i passed through all the tests, got on the show and ended up winning $100,000. i thought ok, i can guy -- buy a house or something and then i thought, noic use this money to start a company. i had an idea all my life. >> so what's the idea? >> some people talk about sports as if it's this random set of occurrences when it's not. you can go into it and analyze and chop it up and gain really cool insights. what you won't get from your ex-jocks. you look at it at a deeper
5:53 pm
level. in the same way bloomberg looks at stocks in a deeper level. >> how do you use the old statistics to arrive at a less than best situation compared to using the allege rhythms that you've created? >> one thing we do is create our own statistics. an old way of doing things was passing yards as a way to rank quarterbacks. so passing yards are just counting statistics. all they do is count up, you know, how many games and how many throws you have for how many yards. >> it's quantity vs. quality. >> right. so you're not taking into account the situation of the game, the quality of the opponents, things like that so passing yards may be very misleading. you can have someone who has 5,000 passing yards but it came really late in the game and didn't really matter and therefore that player didn't on his rofound effect
5:54 pm
team's chances. if you use other statistics, you take into account the opponent, the weather, etc. >> so you created numberfire, design told help medium who like to play fantasy football games. >> it's designed for that and a lot of people. people who play fantasy football. someone who wants to know who's better between the red sox or yankees. someone who wants to know who's going to win the ncaa tournament or why is alabama ranked number three in the b.c.s. instead of number two. 's design told give people a wholey yaunt at a timive opinion on statistics. >> this sounds like it would be very good information for the teams themselves to have. >> what we do is very similar to the movie "money ball." where people used statistics, in
5:55 pm
this case the oakland a's but they kept it just within the organization. we do it whether it's teams, the high school back in pittsburgh, the college in montana state or the average person playing fantasy football. we want to open it up to as many people as possible. we've had conversations with different teams. i can't name any names but there is a movement afoot across all teams to get smarter about sports, to use advanced statistics and analytics and numbers to make better decisions! , and they have the proprietary data because they can tell you how much the players weigh and how they felt -- >> there's more data generated than ever before. in finance, sports, evening. this is really cool, i'm going to make up cool stuff or create
5:56 pm
a new statistic or a new way of looking at things. when you have all that data that's when the real innovation happens. >> what about partnerships? espn, for example? >> we work with espn quite a bit. obviously the worldwide leader. we work with media companies helping their writers write smarter articles. >> how about people that place bets on sports events? >> we have some people who do that we try to separate ourselves from oh, we're a gambling company. we're a data company. if you want to use it for this purpose, that purpose, that purpose, that's fine. >> what if you could use to it figure out who's going to win the super bowl? >> you can definitely do that i believe our system things as of right now it's going to be denver and seattle. my personal opinion is denver is going to win but the data says seattle. >> nik, thank you very much.
5:57 pm
thanks for "taking stock." i'm pimm fox. good night. ♪ .
5:58 pm
5:59 pm
6:00 pm
>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west" where we cover all 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 straight to the rundown. microsoft has said it wants to name a new ceo by the end of the year. one of its top candidates is now out of the writing. having just being promoted. hopes for the internet tv

105 Views

info Stream Only

Uploaded by TV Archive on