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tv   Bloomberg Bottom Line  Bloomberg  October 24, 2014 2:00pm-3:01pm EDT

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>> from bloomberg world headquarters in new york, i'm mark upton. ."is is "bottom line -- i'm mark crumpton. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this friday. julie hyman is monitoring the volatility in friday's training session. campaigningthe wire in brazil's presidential runoff election.
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we begin with shall be holiday at bellevue hospital in new york city. shelby.l b >> we are here at bellevue hospital where the patient was brought and put in isolation when it were hours ago. he tested positive for ebola last night here in new york city. that he doesrms have ebola. this patient has a fiance who was staying at the hospital. she is also in quarantine. it does go others are being monitored closely because they were in close contact with this -- craig emf drilled for quite a while knowing they might come when
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they have to receive a patient with ebola. the process played out exactly as the protocol dictated yesterday. the teams were drilled, they executed exactly correctly. dallas bill de blasio. he told new yorkers to not be alarmed. there is no reason to change daily life. go about your day, go to work, go to school. everybody should be living like normally. the only people who have to be concerned are the people at the hospital taking care of the patient. a lot of conversation in the past 24 hours has been about how new york city officials responded to this. between the differences the response here in new york and the response for the late mr. duncan in dallas?
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the people here in new york have the benefit of watching what unfolded in dallas and learning from it. patient was diagnosed immediately. from the beginning, they treated it as if it was a case of ebola. saw in dallas, thomas eric duncan's family was quarantined inside of his apartment. the cdc dispatching special ebola teams immediately, even before we saw the positive result of the ebola test. they came here to new york to -- it was confirmed ebola this is a case of and there are a lot of different health officials and government agencies monitoring the situation. you.ank members of congress today raised new questions about the obama administrations ebola response.
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peter cook is on capitol hill with that part of the story. it's both republicans and democrats asking the tough questions today. >> it was pretty bipartisan. republican certainly were allowed or the house oversight committee hearing today. the publicuestioning statement made by the cdc and the policy choices made by the obama administration. especially in light of what we have seen in new york. it was the chairman of the panel leading the charge right at the beginning. take a listen. >> it would be a major mistake to underestimate what ebola could do two populations around the world. misstepser fumbles or or relying on postulate certainties told by us by people who cannot defend how that
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certainty came to be and when it fails to be correct how they could have been so wrong can no longer be tolerated. >> over the course of the four hours, lawmakers questioned how members willice be protected against ebola in west africa. 4000 will be over there. some of the nation's pandemic supplies may be outdated. a union leader asked lawmakers for more training equip meant for the nation's nurses. >> we are your first line of defense. no nation would ever contemplate sending soldiers into the battlefield without armor and weapons. give us the tools we need. all we ask from president obama and congress is not one more infected nurse. came throughout the course of the hearing. there was one issue that came up a lot. why isn't to the administration
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moving forward with a quarantine for anyone coming back to the united states from the west african countries hit hardest by ebola? >> any chance of that happening? questions again they're looking at a whole host of popular -- possibilities here. cook joining us live from the hill. thank you so much. a nurse who caught ebola while caring for the patient diagnosed in dallas was released from the hospital free of the virus. she felt fortunate and blessed to be standing here today. she met with president obama at the white house about half an hour ago. let's get you to the other top stories we are following on this friday. a jobs communique shows 25
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lenders in the european central bank fiscal health check are set to fail. 10 will still face capital shortfalls they need to plug. that figure is likely to change as talks continue. 105 are shown a passing the review. russia's credit rating was affirmed by standard & poor's today. removing concerned that a downgrade would result in the selloff of the ruble. profits at ford fell short of this year's profit goal here to rising sales in china have helped make up some of the difference. we spoke to the ceo. >> we do expect next year as we already have a much stronger your, topline is going to grow, volume, revenue. andhink the profitability
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margins of this are going to improve substantially as well. >> ford has suspended production of the f1 50 pickup while it prepares to roll out an aluminum body model. up, how life sports events could be paid at tvs friend. -- paid tv's friend. ♪
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>> if you are a big sports fan, chances are you have no paying $200 a month your cable bill. we've been looking at cord cutting. we focus on how sports programming could be paid tv's savior.
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thank you all so much for joining us. you've been following this story , this sea change we are seeing in the cable tv industry. you can any evidence see that viewers are cutting the cord and ending cable subscriptions in large numbers? >> not yet. that may change now that hbo is finally going to disaggregate from cable and allow people to get hbo go without buying any sort of cable bundle. numbers, we have not seen it. if you look over the past four or five quarters, the cable companies have been losing subscribers. they've been losing subscribers for years. they've gone to other pay-tv services, verizon fires, at&t universe. flat.neral world is some of that has been cord cutting.
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our viewers want live, in the moment sports action. how will sports impact the cable model? >> sports right now is the savior of the cable model. the reason why nobody will cut the cord is because of sports. they can't get major sports anywhere else. will that continue as the pressure mounts? hbo and cbs and consumption habits change. we will see. the music industry did not think it would happen to them. the newspaper industry did not think it would happen to them. something is happening in sports needs to pay attention. >> sports divisions of cable companies, had they been preparing for this? >> sort of. most of the divisions have moved
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very slowly. you sought in the most recent deal where both turner sports and espn re-upped the rights to the nba. espn said it would offer an over-the-top service for collect -- select games. they would be games in small markets or games you can't watch on national television. they are experimenting with different possibilities. nobody is talking about putting the premier games available online only. let's go back to the cable companies and how they might be evil to make up the lost revenue because of what we are seeing. to make up the lost revenue because of what we are seeing. >> consumers would want a world where they can cherry pick certain sports networks and have takehing where they can one or two and not have to bend on all these cable channels they don't watch.
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the method made sense for espn2 disaggregate itself. hbo is already a premium channel you had to buy a look at. standards with the package. it's getting six dollars a month for every single pay-tv provider out there and these other espn networks that come bundled with it and the advertising money it gets because it's in everyone's cable bundle. if they disaggregated, they would have to charge too much money so it would not become a viable product. >> that's right. you can talk to any of the heads of the sports networks. have done the math. they can't get more money from people who would subscribe a la carte as they would get for all the people in one distribution area who must subscribe.
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that is the model. they are less concerned if people are watching, that they are subscribers to the distributor. it's all about the money the distributor has to pay. that's where the networks are making the money. future looks something like where people pay more for something they really want. if you see what's happening online with the fragmentation of viewing, everyone pursued their particular interest and are willing to pay to get what they want from that. with something like hbo, most people assume the hbo online only service will cost more than traditional hbo. espn is wary of going online only because, at the moment, they would not make as much money. there is a chance for them to charge more for that core customer who really wants espn and can't live without it.
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look.s is a short-term if we change right now, yes, we would lose money. they have to start looking down that dark, scary tunnel of where the rest of the world is going. what the market will bear for the things consumers want. that is the world we are living in. >> lucas joining us from los angeles. alex sherman joining me here in new york. think you so much. -- thank you so much. more of our roundtable when "bottom line" continues in a moment. ♪
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>> more of our focus on sports and cord cutting.
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joining us now on the phone from san francisco, john west, ceo of the whistle. thank you so much. the sports marketing arms of tose cable companies, talk us about the additional expenses they are going to incur for promoting this new venture. >> i don't know if it will be so theyadditional in terms of have the on-air platform, they can begin to communicate to their already addicted populace what they are going to be offering. if i like sports, i'm watching already. tell me where to go, where to get it, how much it costs and that's what i'm going. >> regardless of the cost? >> you have to invest in the new
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horizon. "marketingould read myopia." how the industry for 100 years was the main transportation industry in america. airplane travel began to develop and they thought they could compete. they thought they were in the railroad business. they are in the transportation business and they got left behind. >> y will live sports on cable never go away? >> great question. there is certainly no replacement for the life sports. we focus on the younger generation. our audience is young millenials. they have very different media consumption patterns. we are seeing some interesting trends. they're watching less live sports on tv.
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i don't think that never goes away. iss younger demographic going to transform the sports media industry. >> how much are they going to transform it? >> they will transform it completely. is different than any other programming. you can't watch it at another time. the people who like life sports want the immediate experience of watching it. afterwards, it has no value. what the new generation is going to say is i don't want to pay for something that does not give me choice or a consumption habit sitting down watching in front of the television. what strategies can cable companies used to engage with the cord cutting generation? >> i think what's interesting is the young millenials -- older
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adults see media through a tv first filter. social and digital come next. the new generation sees the media world through social and digital first and then tv comes after that. it is inverted, the way they like to engage with media. the cable companies need to continue to focus on that kind of content. >> there are two different things going on at once. reachis, how do we 20-30-year-olds? we have different consumption habits. going on hisng life sports. the value of life sports will not change. sports hasf live driven up the cable bill that
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everybody gets by 41% since 1995. it used to be you would pay a dollar as part of the package. now it's like $16. sports --ence is life live sports still maintain their value. it's not in the delivery business. it's in owning the content. >> the next generation of sports fans, what are their options? >> they are telling us they want their sports media on whatever platform they are on. our digital network is growing by 150,000 subscribers each week. video, howhort-term to videos, a digital platform integrated socially. >> john west, the ceo of the
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whistle. thank you both so much. we have to go to our market check. it is 26 past the hour. julie hyman is standing by. >> good afternoon. let's look at where stocks are trading at this hour. we have had a couple of days of rally here. part of it driven by earnings, part of it by the ounce back from last week's klein. last week's decline. the company reported earnings that beat analyst estimates by $.10. abercrombie & fitch is trading at a new 52-week low. downgrading shares. haspace of the recovery been slower than forecast.
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remaining under pressure for the time being. more on the markets in 30 minutes. ♪
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>> we have breaking news at this hour. we are hearing reports of a school shooting. please responding to north of seattle. two people are being airlifted to a hospital. you are looking at live pictures from the scene of the shooting. students being evacuated from near everett. the agency has personnel on the way to the scene to help authorities with the investigation. the latest school shooting in the region happened at seattle pacific university where a gunman killed one student and wounded two others on june 5.
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we'll continue to follow this developing story and bring you more information estimates we get it. for more on the u.s. response to the ebola crisis, i'm joined by shannon. thank you for your time today. what do we know right now? as i was begin with my team preparing this show, there is a difference between trying to get a sense of urgency to the public and try not to create a panic in the public. , it is only spread through direct contact with bodily fluid. people are not contagious until they begin showing symptoms. we know this patient did not have a fever until the morning when he was isolated in the hospital.
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theoretically, there should be no risk to anyone in the public. >> what about this talk we are hearing that doctors returning from the affected areas in west africa, whether or not they should be quarantined? >> members of congress have been calling for a quarantine before this. say it wouldroups be harder to get people to volunteer to go over there if on spendreturn they have to three weeks and quarantine or house arrest. you are already struggling to have doctors volunteered to work in these difficult conditions of their lives on the line. they say that is not necessary because they do not believe people can be infected -- infectious until they show symptoms. borderswhat doctors not
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and the cdc are saying. there is an eight organization called us americans first. aid organization first appearedns they do quarantine all of their workers who are returning. they are near a hospital that can handle ebola patients. say the risk of not doing it outweighs the inconvenience. >> what about new york city's response? what are we hearing about how new york city handled this from the time the 911 call was made to the hospital to the time the patient actually arrived at the facility? >> they seem to be doing everything they can not to repeat the mistakes that happened in dallas. not letting this patient mix with the regular patients in the emergency room. making sure health care workers know the guidelines.
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cdc beingople at the in new york ready to go. haveovernor, the mayor said we learned from the mistakes of dallas. they were doing drills in preparation before the dallas patient and afterwards but they really ramped things up. they had a training session to make sure everyone in the committee was aware of what to do. >> the member of the nurses union speaking on the hill today joined us on bottom line a couple of weeks ago. she said the messages they want to send is not one more nurse to be infected. they are caring for a patient. the protocols to protect your self when you are actually caring for someone with ebola, is anything being done to make those protocols more stringent? is working on that
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now. they are in the process of providing guidelines. has not been a lot of transparency about what those guidelines are going to be like. they are working hard to address those things now. >> shannon joining us with an update on ebola. the doctor who contracted ebola is in bellevue hospital here in new york city. up next, we look at the latin america report with the election in brazil just a few days away. behind the scenes of the push for the presidency. ♪
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>> welcome back. it's time for today's latin america report. brazil's elections are just a couple of days away. the two candidates are campaigning all over latin america's largest country at a frantic pace. that is also true with the biggest city where willem marx has been examining what it takes to compete in brazil's presidential politics. >> the largest city. -- jose has worked at six banks. it's been six months since he last had a job. he is campaigning for a new brazilian president. years, thanks need to change.
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-- things need to change. the workers party dominated congress and is led by dilma rousseff. she has been ahead in most national polls. during the first round of voting, aecio neves beat her comfortably in sao paulo. he knows how important sao paulo is. people from sao paulo are satisfied about that. is no name recognition guarantee that a candidate's message will travel successfully to the far reaches of the amazon rain forest. it's very difficult to ensure people know who we us. -- who he is. it is fair to say brazil is gigantic. >> that is why national
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television time takes center stage. >> you can't run a presidential or run a campaign like that. the candidates may end up spending more than $100 million on 140 million voters. during the last u.s. presidential election, around $1 billion was spent on tv ads. in brazil, it won't push up the campaign price tag. because you don't buy tv ads. you get it for free. financial focus is on hiring the hottest talent from the country's media to produce seriously lavish tv spots. >> it's like a soap opera. -- will do a lot of
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>> in brazil's big cities, old-fashioned door-to-door campaigning does it still matter. that's because there is no electoral college system here. every vote carries equal weight. , it couldity ultimately count. willem marx joins me now. how successful is president rousseff? >> she has a man working for her who has won six elections across latin america. , mastere karl rove strategist. she has done well given her party has been in power for 20 years. she is someone who will also change, also offer a new direction. there have been difficult
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circumstances. >> what will both candidates be doing for the next 40 hours? >> there will be a few more large public events. they will both be try to sell brazil on the idea that they to get the one brazilians into better paid jobs. it will be interesting to see how they perform on the national stage of television. >> willem marx, thanks. for more on the elections in brazil, i'm joined by trish regan. one of the biggest problems this country has is that it has been somewhat isolationist. it has not embraced the global economy as it could and as it should. you see all these tariffs. i can remember being in sao paulo running out of lipstick
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and going into a department store and trying to buy cliniqu e and the price tag on this was so significant, you can buy for nine dollars in new york. you would pay roughly $40 in brazil. sellu.s. company tries to there, they will get hit by a much higher price tag. businessesee enough moving back-and-forth across the borders. they tend to just try to operate on their own. that has not worked. >> we have a story on see a bigger credit downgrade. >> brazil is a country with so much hope.
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everybody is excited about the consumer class there because it's a western class culturally, very similar to us. a fairly educated population growing in terms of the education. they always seem to be this country of hope, but have not realized you have to climb the ladder along the way. at some point, investor's patients starts to run out. >> we are continuing our coverage all day long about cutting the cord. street smart coming up at the top of the hour. >> i'm in the middle of a move . i'm about to cut the cord myself. we will talk all about the transitions we are seeing in the media -- in media right now. >> thank you so much. coming up, a look ahead to yet
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another big week of earnings and the latest from the federal reserve. ♪
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>> welcome back. updating the breaking news. please are responding to a high school north of seattle following reports of a shooting. two people were being airlifted to 20 hospital. the seattle times reports as many as seven people were shot. the shooter is believed to be a student, shot and killed himself. the high school is currently in lockdown due to the emergency situation. police and emergency services have responded to the scene. we will continue to follow this developing story. let's get you the bottom line of what's happening next week. yang yang is in washington with a preview. us. big week ahead for
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on monday, u.s. health officials will begin monitoring travelers from the west african nation of liberia, guinea and sierra leone. they come into the country from five major airports. keeping the virus from spreading . travelers will be monitored for 21 days and will have to check in with health officials daily and get their temperature taken twice a day. twitter, buffalo wild wings, merck kicking off yet another big week of earnings releases. the monday release i'm most excited for, taylor swift's new album. she has called a plate and pop. .- blatant pop on tuesday, basketball fans can rejoice for the return of the nba. the next will play the cleveland cavaliers in lebron james's once again home.
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we will get earnings from facebook, pfizer, burger king and bp. on wednesday, the end of qe3. the federal open market committee will meet in washington where policymakers had they intend to cut monthly by $15 billion. the central bank sixpack to delete the benchmark interest rate near zero. bank metlife and allied posting profits. on thursday, the united states will report its over and version -- own version of earnings. expanding at a 3% annualized rate in the third quarter. pace in from the 1.2% the first six months of the year. mastercard, starbucks and conoco phillips reporting thursday.
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exxon mobil, chevron and hilton release earnings on friday. u.s. personal spending will likely show a slump in september while incomes are projected to have shown an increase for that month. that is your look at the week ahead. >> thank you so much. stay with bloomberg this weekend. stephanie ruhle sat down with carl icahn. they spoke at the robin hood investors conference here in new york this week. the entire interview this weekend. with the spirit we will have another checkup the market movers on the other side of the break. -- stay with us. ♪
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>> get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and on that does it for this edition of "bottom line." mark crumpton reporting from new york. on the markets is next. have a great weekend. i will see you on monday. ♪ >> it is 56 past the hour.
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bloomberg television's on the markets. we have one hour until the closing bell. we are seeing stocks rally for the second straight session. health care come utilities helping lead from the gain. some of those companies are helping lead the gains we are seeing today. you can look at the dollar. it is down slightly today. 6% over the last month. the dollar is the place to be. joining me with a look at which etf benefits the most from dollar strength is eric, who comes to us every week to talk to us about the hot etf's. she said there is relatively broad consensus the dollar is going to continue to go up. you want to find a way to capitalize on that.
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>> we don't talk about the dollar often, but there are ways to play. there are 39 currency etf's out there. they are a speck on the etf map. there are two that go along the dollar. bullets --rshift this goes along the dollar -- long the dollar. very heavy in euro and yen. you have to be pretty committed to the euro. it's a good trade because the euro is one of the worst performing. it is performing very well. ,ou have the wisdom tree bloomberg u.s. dollar etf. this includes emerging markets. modern view.a emerging market currencies are not doing quite as bad versus the dollar. you have your pick here versus
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you want to go heavy -- those are the countries that are weakening. emerging markets yield more. they are not as good to short. >> there is idea of doing it through equities. buying non-multinationals, company centered in the u.s.. >> this is a big growth space in etf's. the wisdom tree european hedged etf goes long eurozone stock and shorts the currency for you. this etf is up 1% this year. is downhedged version 8%. that 9% is just your foreign exchange. >> they short the euro? >> they go into contracts. it's the same thing as shorting
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out the currency. that's how they do it. this etf is taken -- has taken in $2.5 billion this year. investors are starting to notice that i'm going to start to play this and invest alongside central banks. that was a big play last year. throw in the fact that the dollar is going up. these etf's also benefit from that. >> thank you so much. our weekly etf check. "street smart" is next. ♪
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>> welcome to the most important hour of the session. we have 60 minutes to go until the close. we have stocks higher right now, up triple digits things to better than expected earnings. extending its best weekly rally since january of 2013. the hour,st host for leo hindery, we will talk about the move from cable to internet only services. the red tape involved in all of it. smart" starts ♪


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