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tv   Bloomberg West  Bloomberg  December 18, 2013 1:00pm-2:01pm EST

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>> live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. china mobile beijing website is taking orders for a mysterious 4g smartphone that looks exactly chinahe iphone 5s, but mobile says as no deal with apple just yet. game in town for
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celebrity agents in a deal worth almost $2.5 billion. william morrison deller -- endeavor is buying img. holograms reviving concert biz? revived from the dead, sort of, but are these holograms enough to revive the concert industry? digitaltoday in the remix. first, to the lead, turns out apple and china mobile, the world's largest wireless carrier to my do not yet have a deal to announce. china mobile's chairman said that the company events today that's no deal has been reached and that talks are ongoing to add the iphone to china mobile network. this comes after earlier reports that 80 deal was done in that china mobile would make the announcement today. a deal with china mobile which has over 750 million customers could mean billions in added revenue for apple. -- more, i want to bring in
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you also help set up google's operations in china, hong kong, and korea. we all know the chinese government can be difficult to work with, but why is it taking so long? >> certainly there has been a technology factor, which it turns out 4g is actually not available in china until very recently. >> but they just got a license. >> which allows the users to take full man -- advantage of the iphone services. speculation is that china mobile is the world's largest carrier, the largest carrier in china by far. might have been or have more difficult to deal with, and apple is certainly dominant in its segment. you have a clash of two titans trying to reach an agreement. you can only imagine how difficult the discussions might have been cared greg they just got a 4g license. i thought i was the last thing they needed.
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>> which is why we think the deal will happen. details?re the >> is unclear. i think it has to do with the economics. we as a china mobile doing deals with other handset with others.h 4g >> you helped set up google in china, when it comes to a u.s.- corporation, how does this work? >> there are a couple of things that are interesting about china. everybody is fascinated by the size, but we have to remember that china is so large that it is an ecosystem within itself, so certainly the government has a set of policies and practices that to a non-chinese business would seem much different, maybe much like japan was in the 1980's. having done business there, you have to appreciate that china
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has its own ecosystem. you have a different set of partnerships, a different set of protocols, a different set of integration do you have to do. you cannot just walk into it, shut up salt -- set up shop and expected to sell. >> other carriers do already sell the iphone. this is a beijing website for china mobile. it is taking orders for a phone, a four g phone, and there are pictures of this phone on the website, and it looks exactly like the iphone 5s, and the three colors at the iphone 5s comes in, there is a golden apple, what are they doing? >> it is really a tease, isn't it? silhouette, like a before the performer comes on stage. if you look at the name, the brighte means a star, or star. what they're saying, i think, if we have a star that is about to be unveiled, here is the silhouettes, place your orders
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now. >> it seems a little dangerous of the deal have not been done. >> which is why most people think it was going to be announced earlier today. >> so what is the timeframe? is this just a matter of when, not if? have information on that. most people, and i just talk to our china colleague, everybody believes it is imminent. from us, certainly we think a pickup, evenof without china mobile pairing with the iphone, certainly sales have gone up in the last month or so because the other two carriers are carrying it o. point of view, we are excited. this will stimulate apple's iphone sales in china and globally toured >> if or when this will happen, how does it mi,ect samsung, xio others? includes -- android
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enjoys a huge market share in china. we have to remember that china mobile is the largest carrier in the world and the largest carrier in china by far, 65% market share in mobile, just to give you a idea of how big they are. analysts would say that doing this deal would give apple 17 year,n new users next which is a drop in the bucket compared to 750 million that china mobile has. the entire country has about 19 million smartphone users. 70 million is almost like adding a country to apples ecosystem -- 17 million is the most like adding a country to apple's ecosystem. >> we will be watching. ,anaging director for inmobi thank you for joining us here on "bloomberg west."
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william morris endeavor and silver lake management have agreed to buy the sports agency, img, that represents models and athletes including peyton manning and gisele bunch and -- gisele bundchen. cory johnson has more. based in losrris angeles and already represents some of hollywood's best-known names, matt damon, ben affleck, others. as far as taylor swift, doesn't emily. also a big -- and justin timberlake. also a big jt fan. what does it mean for hollywood? >> this is reshuffle the deck in hollywood. we had two majors duking it out for about 10 years, and we have had some murders going on in the
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last five, the most recent with william morris and endeavor on caa, whichake has been a giant here in town for a long time. what this deal does is it makes william morris endeavor's the biggest a talent agency in the world, and to get them reach not just in film and television were they already dominate but it now puts them squarely in an arena with sports, like you mentioned, and it also gives them greater reach with music and really lucrative areas that they are not in now like naming rights for stadiums. >> i think be sports aspect of this is really interesting because it seems like it is a very steady business in that athletes seem to be getting paid more as tv rights go up and athletes share in some of that, but at that to the duration of contracts, a very steady cash flow for the agent. >> that is absolutely right. also what you have going on here right now is the film industry is contracting, studios are
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putting out fewer and fewer movies and fewer and fewer lock busters, and they are paying less for the actors, the directors, and the writers who provide those scripts for these films. you have one area where they dominate but it is contracting, and they look over nac sports, and networks are paying a fortune for these sports rights, nfl, mlb, nba, and college, these are huge contracts the networks continuing to pay higher and higher rates for the great is a smart move. >> are there real synergies in these different agencies or are they just imaginary? peyton manning at papa john's is interesting, but will it work to get more money for these kind of deals? the synergies -- there are some there, especially with fashion and films and athletes. i think there definitely are synergies and, certainly when it comes to -- in that space, certainly when it comes to naming rights and marketing deals that img advises for
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college athletics. there certainly are some synergies there. most of those are probably in the back office and not necessarily in the frontline of these businesses. really this is a complementary deal. img supplements william morris' existing businesses and extends them internationally where there is a lot more growth. >> all right, bloomberg news, andy fixemer, to every much. >> thank you, cory. google is taking heat after raising prices. a debate is coming up next on "bloomberg west." you can also watch us streaming on your phone, tablet, and at bloomberg.com. ♪
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>> welcome back to "bloomberg west."
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i am emily chang. boomer is taking a lot of heat -- uber is taking a lot of heat for the snow for -- snowstorm. this is because of uber's search pricing where users pay more when demand is higher. uber tells "bloomberg west" search pricing gets more cars on the road quickly, helping to guarantee the uber reliability users countered users are clearly notified of and mustard knowledge the elevated pricing within the app before they can request a car. thes uber's pricing market correct model? a man who is the author of the "one percent windfall." cory johnson also with us from new york. cory and i had a conversation with an uber investor yesterday, and i have never seen so much
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the enemy and -- so much the him ently outragedem twitter responses. ricedo you think of uber's policy and is it fair? central question is for a non-central service, in america, where you set the -- the market sets the right, should there really be a constraint to price when there is high demand? many industries do this, for instance, airline, hotel, car most major league baseball teams are doing this, so i see no problem with uber setting price according to the market, and what is one of the most important things is that this is a nonessential service, it is not like everyone is entitled to a black car. customers have a lot of next best alternatives. bus, they canthe
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try to hail a taxi, they can actually wait because uber's search goes up and down, almost by the minute, or they could simply walk. i have a new problem with a for profit company said it price equivalent to what the market will pay. quite a number of ventures -- >> toky ganesan compared uber a life-saving cancer drug. >> $200,000 a year for recovery. is that fair, or the more important to make sure the $200,000 is there seeking get better? compare is it fair to uber to a life-saving cancer drug? >> i disagree with venky. life-saving cancer drugs, there are not very many alternatives. for a pricey car, there are a lot of alternatives.
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uber is a for-profit business. i do not think anybody will die if they do not get an uber ride during a snowstorm on new year's eve. >> $35 a mile, doesn't that undermine trust that customers have in uber? their statement is that the they want people to think of them as reliable. availability is one thing, but some say price-cutting is another thing. >> right. first of all, i think it is important to emphasize that once again a type of -- -- ofatives, it is a fair next best alternative, it is a fair price. from a trust standpoint, automatic it is a problem. uber's is not about being a low cost leader, it is not a walmart. it is the contrary -- we offer efficient, good service, and for that, when times -- when there's too much demand we cannot offer
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that at a low price, we will increase price. i think from a trust standpoint, it is important to empathize that in many cities, for instance in boston, uberx has come out and that we will be 30% below your taxi service, so there is a trust factor. i think it is aborted that uber taken time -- it is important that uber taken time to plaintiff policy to customers. last weekend, it was clear that it was not clear to customers, there was a big uproar, and you probably have the same problem on new year's eve. >> let's like cory get in on this action. what do you think of rafi's argument compared to venky's. >> the notion of being nonexistent -- not extensional passionate to the business application. it is not just about back medication, but uber has made a choice, and when you compare to airline that is interesting
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because airlines are despised by their customers for the most part, and uber is making a choice to leave the issue of costs up to the moment, and that could ultimately really damage this business, but it is also something that was not technologically possible to truly skilled man at the moment and scale prices at the moment based on demand. it is the thing you would see more at the stock market then you would see the providing of a service or a good. it is interesting that this is possible, but we have never really seen businesses that can do this and wrote time and look to what the effect will be on customer loyalty and on customers who care about this service. this shows a passion of uber users but it also shows how uber screwed this up and really hurt that trust that they are trying to build of a new service out in this world. facesi, do you think uber a risk of damaging their business? >> it comes down to what is uber 's brand, and it is you will offer something community, you
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can trust on uber to get you in a reasonable time. >> no. your book is about the one thing --cent -- ultimately -- 1% ultimately they want to write service to everybody, not just the 1%. that is al gouge you, much smaller market than the bigger market of people who want transportation at a affordable cost. >> i wouldn't agree with the word -- i would disagree with the word out. --- word gouge. price is something the use of a mechanism. customers have the right to stand on the street and try to hail a taxi. it isis not about rights, about building a business. if they're going to limit the ability to row their business if they take off a lot of people. if they do not tick off anyone, they will build a bigger presence -- business. >> it is a good question, and it is really important that they take the time to explain this pricing strategy so people fully understand it will stop a great
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example of a company that did not explain its pricing strategy is netflix a couple of years ago . they all the sudden increase the price of their streaming service by 40% and within three months, netflix stock went from $271 to $75. >> rafi, we will see what time what uber decides to do here, but i spoke with the ceo of uber a few weeks ago, he said they basically take a 20% cut. why not just take a smaller cut on the rare days when demand is so high and supply is so low that they need to raise the price three times, four times, why not pay their drivers a little more to get more drivers on the road for the benefit of their customers and for the purpose of building trust and reliability? >> certainly when there is a search price, the drivers certainly get 80% of that. theyou saying that perhaps
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should search prices in this instance? wi-fi nothing they should search prices on the days when it is 1.5, two times, but on the days , it is is up to 35 dangerous come everybody needs a ride, why not knows where it's is is make an exception and take a smaller cut? >> i do not see the reason to do that because once again there are people out there paying that price, and this is that are -- is their business model. i should not see a reason why they would have to do it, and i do not think they should be apologetic for this rising strategy. that is what they are doing. they did not do a great job of conveying a, now it is their job to convey it to customers, and like any sort of luxury, high- end product, sometimes you can afford and other times you cannot. >> all right, well, let's see
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how this lays out. med, to every much for sharing your opinion with us here on "bloomberg west," and cory is welker and we will have much more after this quick break. ♪
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>> welcome back. i am emily chang. it is time now for on the market, a look at what is happening on the market that 26 and 56 after. julie hyman is an new york. emily, thank you. we had the fed decision, and any insight whether tapering is going to happen now or later, we are not think that much activity in the market because investors are waiting for that information. that said, there was a downward bias to the markets, all bolling's -- all bolling slightly, just six points. treasuries not much change, but we are seeing a bit of a bump up
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in yield as you might expect. we will be bringing you all of the market reaction once we do get that information from the federal reserve. we will be back on the markets in 30 minute that we will be back with that fed decision as well. ♪
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>> welcome to the early edition of "bloomberg west." i am emily chang. you can also watch at our later time, 3:00 pacific, 6:00 p.m. eastern. india is cutting security outside the u.s. and the sea in new delhi and has removed transit privileges for american diplomats. the move comes after a female wasan diplomat said she subject to a strip search after she was arrested in new york. homebig gains in a new instruction. the commerce department said the number of housing starts rose
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nearly 23% last month, hitting its highest level in more than five years. as investors wait to hear whether the fed will stop tapering -- start tapering its bond services. that announcement coming up in half an hour. and movie theater chain amc entertainment is up about 70% today at the goes public. amc is controlled by china's's second richest man who bought the movie chain for $2.6 billion last year. his group will retain 80% amc, making them the largest movie owner in the world. ipo's have taken advantage of filing -- sigrid secret filing provision under the jobs act. well more companies follow suit in 2014, and what can be done to create a better trading environment for smaller technology companies? a managing partner at injuries on horowitz -- at andreessen or
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orowitz joins us. let's talk a little bit about how it has worked so far, you guys are an investor in twitter, they filed secretly. how do you think the ipo process went for them? >> i think it has gone really well. i think confidential instead of secret on the things are the jobs act has allowed these companies to ease their way to being a public company, so things like confidential filings, things like the testing the waters provision that allows talking to institutional investors before they get on the road, those are net profit -- net positive. water had a good ipo this year. we are on track to do when hundred 25 ipo's this year, which is up significantly from where we have been the last 5, 10 years. >> how many more companies are going to file confidentially and take advantage of the protections of the jobs act?
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think this has become the standard course now for most companies, and if you think about it, it is a really good thing for them because in the absence of this continental filing, what has happened is they are out there with a public filing for maybe 3, 6, 9 months, and they are in this quiet mandates, sohe sec it is hard for them to respond to criticism of their business or to operate their business in a way that makes sense. for the benefit of the confidential filing is it still gives investors plenty of time to see these numbers and the financials before they go on the road but make sure the companies are not sitting ducks for a long is goinge the sec through the review process. >> is there any reason a company would not file confidentially if they're technically allowed to? >> i cannot think of a good reason to do so. you pour yourself in a really big competitiveness advantage and you file publicly because of i said you got all of your competitors who can poke holes in various things, and you are severely restricted in your ability to respond to those things.
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i cannot ask -- imagine why committee would choose to do so. >> what else needs to be done to make the environment friendlier or more efficient for smaller companies, as you say? you think about what the jobs act to did, it really improved what we would think of as the on ramp to an ipo, so it made it easier for people to get onto the ipo freeway toured the big areas we think are problems are what is the capital market look like once these companies actually go public? if you look particularly at small cap companies, $750 million market cap companies and below, we think there are a lot of potholes in the market, and that is where we would see -- like to see the sec and others take action. >> the sec did vote 5-0 to plan for a higher limit for small stock deals under the jobs deals, 10 times higher in fact. this is too easy fundraising issues. is that a step in the right direction? >> this is a fantastic step. if you look at the report we put together, we had to proposal.
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one was exactly this, kind of make it a reality for companies, and that is what they have done today, basically make sure that those rules can go into effect so that yes, to your point of a company cannot raise $50 million in essentially a slightly lighter registration process than a full ipo. step in the right direction. the second pieces around the capital markets trading of these stocks, the fundamental challenge you have today if there is not a lot of liquidity for small-cap stocks because of decimalization. fractions of a penny. what would like to see is for the sec to increase the trading dynamics there so that we can and should bring liquidity and volume back to the small-cap market. >> would've is the benefit of this for the public? -- what is the benefit of this for the public? is jobs.and foremost if you look at all the research that has been done on ipo's, companies that go public
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increase their hiring by about 150% post-ipo. so if we care about jobs, which we all do in this country, it is a huge benefit. if you think more generally about the capital markets, because companies are staying private longer and therefore going public at a much more mature size, all of that appreciation in into the stock prices accruing from the benefit of the private market investor, so these are high net worth individuals, these are in the two should to can afford to invest in venture capital firms or otherwise. 96% of americans in this country invest their 401(k) in the market, so we think it is important to have more that appreciation accrue to the benefit of the broad public investor. >> all right, we will be watching to see how the companies take advantage of the jobs act. scott kupor, managing partner at andreessen horowitz, to every much. cc has started f the process for allowing in-
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flight conversations that is coming in next on "bloomberg west." ♪
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>> welcome back to "bloomberg west." i am emily chang. we have breaking news. the white house is going to today, the panel report heating up a relief that was supposed to happen next month. i want to get to white house correspondent phil mattingly. this is a review of a panel that the president would together, looking at the nsa surveillance policy over the last few months. this is quite a surprise to see this report is early, right? >> that is right, emily. we expected it in january along the time the president himself was opposed to announce what he planned to do, the changes he plans to implement regarding the intelligence collection methods. the review we know for a fact has 46 recommendations in it. it was put together by a five- member panel which included ex cia acting director mike morel. we're told it is very lengthy, but we all expected it in january for the press secretary
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jay carney said today that largely because the white house feels there has been some inaccuracies in the reporting of what is in this report, they are going to release a redacted or at least readable version of it today. everybody is kind of waiting with bated bets to see -- bated breath to see what these regulations are. >> we know that a number of ceo's, apple ceo tim cook, yahoo!'s orissa myrick, costello, twitter were all meeting with the -- yahoo!'s marissa mayer, others were all meeting with the president, do you think this has influenced to release this report now? >> jay carney was asked about that and he said no, this had been in the works for a couple of days. but you look at that meeting, you look at the federal judge that said the nsa's collection programs were likely unconstitutional, both of these meetings, the meeting yesterday, which i was told was not a positive meeting, plus this federal judge, two very problematic days for the white house.
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they have figured out that they need to get something out now, and this report is how they're going to do it, emily. >> we will be watching to see what this report says. i know you will keep us updated on that throughout the day, phil mattingly. another hot button issue is whether to allow in-flight phone calls. the sec voted 3-2 last week in favor of considering new rules that would allow such calls. the issue, however, has faced growing criticism from politicians in congress, the department of transportation, just today d became one of the first airlines to say it would not allow in-flight voice calls, so as we await the next steps, what is the reaction from 15,000 business clients who are getting on planes everyday? our cory johnson is back from new york with more. concur is an interesting business, very hot right now, 500 billion in a travel entertainment expenses, including my own, 15 million
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users online. i am joined by the ceo steve. you guys are growing by leaps and bounds. what is going on with you guys through this travel season? >> we're seeing great growth in our business, both from a transactional perspective, business travel tends to trend up, it as well as frankly new crestor growth >> -- new customer growth. >> what are you doing to drive the customer growth? >> more and more customers are saying you know what, i need to , and the areas to drive cost down is your travel expense, and we are benefiting from that focus on driving caused down. >> in terms of adding customers, isn't happening at a faster pace than it was last quarter? give me some sort of guide. i want to know how it is going. >> i do not know if i would give it as granule in a different quarter, but if you look at the
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last three years, our rate of growth has been going up. the fiscal year we just finished, the new customer additions was faster than the rate of customer additions in the prior fiscal year. >> what about adding airlines? i know it has been an important part of your revenue. what success have you had adding new airlines to that tv channel? >> we actually integrate with literally every airline that hotel, every rail, downtown transportation providers, all of that content to our customers today. our focus is entirely on how do we drive new customer growth, as we just discussed, and growing wonderfully. >> the new issue of in-flight calls, what is your take on that and how is it going to work for your business if that is approved? >> it is interesting, cory. you will get opinions from all sides on this topic. there is always going to be -- we did a survey of our customers, a very informal survey, but what we found is
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customers actually loved us. you were always going to get the person on the plane who has voice control challenges -- >> you should see the people i work with. my god, they are so loud on their phones, it is crazy. you guys know who i am talking about. [laughter] >> i think the reality is for everyone of those individuals, there is a plane full of people that benefit from this. i got a couple of different apples around that. one is -- examples around that. one is the customer trying to drive customer growth. when you are on a plane, look around the plane and see how many people have an expense receipt laying around on their tray tables, and a now you can literally take out your cell phone, start taking pictures, have it be and 35,000 feet, and your expensive reports -- your expense report is filled out for you automatically. you'll also see innovation coming out of this. there is a real need for ha eadsets that you can speak softly into and be crystal
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clear. >> regulation will review this, but politicians will get a lot of attention by standing up loudly and opposing rude talk. >> i am sure. you will see a lot of sales of noise canceling headsets. >> indeed. you guys are based in seattle, and i'm wondering what benefits are to your company being based in seattle instead of silicon valley? >> seattle is a gorgeous city. if you are outdoors, it is a wonderful place to call home. we have a german this account pool in seattle, a fantastic university, the university of washington, as well is a great tech community, so is a fantastic place to build a business. singh,ur ceo steve thank you very much. >> thank you, cory did i do not sit next to you and listen to your loud phone calls. how are rappers keeping up with the changes in the music business? we talked to bone thugs-n-
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harmony about resurrecting their music titles on stage next. ♪
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>> welcome back. i am emily. the recording industry is undergoing massive change, often makingng profit, performers turned to the stage to make the big butts, and turning to technology to make that happen. cory johnson is back with our special series, the digital remix. rexam and logical changes are crushing the music industry as we know it. it is changing the concert business trying to pick some of those problems, but some of those changes are just an illusion. dirty bastard young again, live again. a hologram wrapper of odb hits the concert scene this summer, but the hologram scene started
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the with two boxer core last shakur atith tupac coachella last year. his album sales ran 500%. it revived the sales of hologram provider digital demand, which grew 75% in just two weeks. so why set the stage with a hologram? with digital music to strike the old business model, life concerts have become the industry's bread-and-butter. >> it is the most vital side of the business. >> rappers bone thugs-n-harmony are using the hologram technology to create an interactive performance with their long dead mentor easzy e. >> we bring the live element with the avatar and re-create the whole existence of e.g. -- e and his life. >> truth is -- this technology
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is an old trick. here is how it works, the image of the artist performing is projected, any nearer reflexive reflects it to an angled, transparent scene that explains -- that expands the west at -- s pans the width of the stage. >> ♪ house on fire, i will smoke you ♪ thisey have been busy with stuff, lots of other customers as well, but resurrection was not enough to thrive in this digital age. the rock the bells concert, cancel half of its tour. 40 hours before big shows in the exciting competition and high ticket prices for their week sales. -- weak sales. the truth of hologram sales may continue to remain an illusion. >> cory johnson come our editor at large, thank you. coming up on the late edition of "bloomberg west," how good your coffee maker or your fitbit make
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e-commerce easier? do not miss our interview with three clocko at p.m. eastern. we want to get to coverage of the federal reserve open market committee decision. will they start tapering as one of ben bernanke's final acts of chairman? for that, we turn to tom keene in new york. >> emily, thank you so much. good afternoon, everyone heard a special edition of "bloomberg surveillance" from our world headquarters in new york. 's final press conference at 2:30. he is smarter than me, our chief economic correspondent michael mckee joins, peter cook will join us in a moment from washington, in the 2:00 p.m. announcement, jeffrey rosenberg is at the blackrock trading for. jersey -- now, i read ira jersey.
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ira is our esteemed guest. is this another meeting as usual yo? i have heard taper, taper, tapered. my audience is tired of this word. >> we are, too. whetherndifferent to the fed does it today or january or even march. the bloomberg survey showing that about 30% of the economist think they're going to taper it's probably about right, but basically 100% of economists think the fed is going to go over the next couple of meetings. the markets more or less price for this and we think we will see very little movement in the treasury market in particular if the fed does taper toured >> the market is priced for this, yet i have a regulation -- yet i have a recollection of august. that was ugly. what is a chance of a repeat of september? >> not any sense that nobody
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really knows what is going to happen. the market is not all leaning one way as they were back in september. word,l not mention the "t" but i will show you why. one is we have seen a big increase in employment or job growth has picked up in the last couple of months, and that is really important. we have also seen some strength in the economy with retail sales higher. at the same time, you step back and job growth is really only where it was in the spring, and over the last couple of years, about the same average level. same thing is true of retail sales growth and the same thing is true of gdp, so we are getting up to a certain range, we are not breaking out of it. do you think we're going to end 2014? then you might be betting on a tape or now. if you are not sure, you hold off. >> what is a special edition of "bloomberg surveillance" without a killer chart? ben bernanke -- this is the real interest rate. ira jersey, this is the way prose like you look. maybe i look at the 10 year
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yield. he's a zero percent there right on the left side, and the -- you there on the right -- on the left side. rice you had real rape that were negative -- >> and they have gone over positive >> you had real rates that were negative. >> and they have gone over positive -- >> they have guided us to an eventual tapering, 10 year bond in particular. whether they taper in september or march does not make a lot of difference. >> is there too much medication, -- much communication? >> to enable talking with to many different views. >> here we are all talking. >> they are trying to communicate what they are doing, they think that is a good idea, but so far they have not figured out a way to get it across in a way that does not have volatility.
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>> bring me up the first panel of our data check. this is what i do, folks. i write down what some of the key indicators are doing before the meeting, and then we will do that, we will look at that, see the reaction. dow up 16, 10 year yield has done nothing, 2.88. euro-dollar is quiet. old elevated, not much movement heard a quiet mocha. ira, the markets moved on. what is i gaining for next year, even if they start, 30% chance of start taper? >> they do not want to be in the asset business, and i think that is right. they do not want to be part -- perpetually buying. two m posey point, if growth is steady and stable and able to be -- to mike's point, if growth is steady and stable, why not do it? we think with the taper you will get strong forward guidance, get this idea that we are not going to be hiking until when we say
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we will hike. >> another thing important will come out at 2:00 as well, and that aside as a decision but their forecast for the next couple of years, and nara forecast-based institution. >> are they any good? >> no. they're working on their own forecast. if they change when they think they will get to their 6.5% level or therefore that women of gdp level, that might cause the market to change -- >> i think if you look at it, i am a huge fan of the stock short, it is something we will concentrate again today because we do but those questions with the -- >> i want to stop your. i was on the economic level for lunch in new york, they're sitting there with michael mckee, paul rocher and presumably the new vice chairman stanley fischer. fromvolcker who took us
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high inflation down to low inflation, and stan fischer with that wonderful work in 1998. what that will those two giants see next year? minute lefty got a before the decision, but when they're thinking about what they're going to do, they're going to be binding the next fed to a policy. any kind of taper today as a start of a process, not to state one off event. they will have a new chairman, do vice chairman, a new member governors,d of change in the fed bank president, you will have a whole new fed less the new voting members will come in. do they want to tell them what they are going to be doing? >> a list to the dow, up 17. we are about 30 seconds away from the important meeting. last one of the year. in fed meeting is later january, and of course that is after the december jobs report
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heard a lot of economic data as well. again, ira jersey with us from credit suisse. thrilled to have with us michael mckee, our chief economic correspondent as well. again, the dow up 38 points this fomc day. >> the >> the taper has begun. the fed is reducing its bond buying starting in january. reducing purchases from -- to $35 billion from the current $40 billion. we also have new forward guidance language as well. they will continue to reinvest principal payment. they are staying in their fame -- their payment in light of the cumulative progress it is modestly dilute -- reducing bond buying. forward,atement going incoming information of ongoing improvement in labor market conditions and inflation moving back towards as longer run objective

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