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tv   Taking Stock With Pimm Fox  Bloomberg  December 9, 2013 5:00pm-6:01pm EST

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this is "taking stock." everything. american airline relaunches itself on the nasdaq. it has a new ticker symbol. what it means for passengers and shareholders. is the time right for luxury i items?-- guess tonight to mystery guest. will my producers stump me?
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only time will tell. of individualook companies making headlines, let's go to sue keenan. >> shares a twitter jet ix percent, the most since their initial public offering -- 12%, the most since an initial public offering. cisco shares rose more than 10%. this is the largest food distributor in eight years in north america and expense to include dessert. airline, they began trading under nasdaq. on fleshing out the reservation system. i am sure we are going to hear
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more on that from you. >> thank you. what this means for the industries and for passengers. by an independent aviation analyst. harry is a travel analyst. we want to start with you. the combination of american airlines and us airways. what kind of carrier does it make? >> it makes airline possible for you to get more single airline anywhere to anywhere flights bs and threeaced hug very strong global competitors out of the u.s. >> you said this was a celebratory moment. why? >> when i got out of graduate school my first job was with american airlines. i thought it would take about 12 years for the industry to yell
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out to a few major competitors. it took over 30 years. we are here now. are making it very attractive for investors. >> do you agree? will it be more like a consumer durable category of the market? >> i began my career working on american airlines as advertising. be less of awill tragedy more of a business. >> a business focused business. does this mean this is what american airlines is going to be going after or is it an expanded room structure? >> there've always been focused itthe business structure but has always been a bunch of bad
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things doing bad things badly. change ase seen that well. >> the business traveler is important. that is where they're going to make their money. people running the airline today are different breeds and we had before which was marketing oriented. today you have financial types. they're looking for investors. they want the right generating ability. kind of revenue generating ability does american airlines now have that they are combining with u.s. airways? >> very strong. this is not a marriage made in heaven. >> and now have more than 100 people that will be in the combined advantage.
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american will remain on its technology system which is more advance and will help them fine sell travelers. >> it seems you will have three. you have american and delta with a combination of northwest and then united airlines with a combination that they put together with continental. these things do not always go smoothly. u.s. airways did have a hard time with america west when they merged. you have more than enough competition with three big carriers. niche carriers and you have a lot of competition in the industry rationalize where they can charge the right price for their project. to benefiting
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pilots? we know they are going to have a very large equity position. aside from the equity asition, what this means is more stable business. you pretty much marry your carrier for life when you are in airline employee. a stable carrier grows and means better job security and when they can buy newer airplanes. pilots love that. routes for working purposes and the ability to travel. >> speak about the transatlantic market. >> it is a very competitive market. america faces competition for international carriers. all the older carriers face a major competitor. are growing their hugs very
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rapidly and have a lot of cash behind them. speak if you can about the frequent flyer programs. he mentioned having that 100 million members of the advantage is still thee delta program, skype team, as well as united airlines. can and do change amongst airlines. that is why it'll be very important for american to offer not only good fares but good on- time performance and other amenities that the travelers like and will pay for. i believe they are in a position to win. airways back on u.s. and continental united to see what things they should avoid repeating. continues atger
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pace, it is expected that by these frequent-flier systems between u.s. airways in american will come together. what about the actual aircraft. when does the aircraft come together and be new and refurbished? >> i am more skeptical. it will be a little more difficult than the northwest delta.ntal it was pretty much done before the merger happened. united did not have problems with continental. he goes to the different corporate cultures. from hisrker learned previous mergers. it may be more difficult than we are assuming right now. it may get dumped it will take longer. >> what about the combination when it comes to pilots and flight attendants? >> i have gone through mergers before. it will take an 18-24 months to
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put this together fully. part is integrating the various work groups and all of the different things it will take the time to standardize the airline. we will not see changes tomorrow. within two years, hopefully the majority of what is needed to be done will get done. we should start to see business improvements and synergies year if notin a even sooner. >> i want to thank you very much. henry joining us from hudson crossing. my thanks also to ray, independent aviation analyst. ising up, american airlines one of eight airlines that trades on the nasdaq owen max. you typically would mean technology stocks. we're going to find out what it mccooey.h bob
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my mystery guest could be considered the nsa of fine dining. ♪
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ofwe have a very large base consumers who buy our product every day. this is house in a former children's cinema. begin trading, it was ranked the top performer in the world. they hope it will continue when
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new laws come into effect allowing dual listings. is to open updea the idea for foreign capital. >> one is oscar mendoza. was one of the hot spots for economic development. he has open a mexican restaurant in the heart .
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>> i want to bring in nasdaq senior vice president bob on the who joins is telephone and video from dallas, texas. thank you very much for making it through the snow and bad weather to make it to the studio. much appreciated. you have something to celebrate. how did you manage to get american airline group on the nasdaq? what we did was use the
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opportunity of these two companies coming together to and to speak to them about the opportunity of becoming part of the nasdaq family. we think we have a very strong proposition. we spoke to them about what we have been doing to enhance this experience for our companies. world has changed very dramatically. we wanted them to get the great benefits of the nasdaq listing. they were open to that opportunity. and allowed us to come in talk about the value proposition. we were able to be victorious. >> i know they love you. i am sure they just sign on the dotted line after the first meeting. give us some details about the program you had to put together to show companies that listings good forsdaq omx is their business.
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you have several other airlines that are on the nasdaq. >> it really is about the support we give to our companies, about the long-term partnership we are able to create with them. we think we have the most innovative, growth oriented companies in the world. some of the worlds greatest brands associated with us. leader ine industry terms of trading, technology. we have some great branding opportunities including a seven in japan -- time square. we're the leader in corporate solutions. it helps them be the best public company they can be. earlier this year we bought the pr of quarters. 96% of the s&p 500 are using our services.
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a whole program we lay out in front of companies. lowerp all of those with fees. our fees are significantly less. americans thought they were able to pay a lot less if they had joined our competitors market. >> how do you present any response to the idea that there had been computer glitches? there have been trading issues. all exchanges have been but noticeably in the recent times, nasdaq seems to have at least some yet to be resolved. resolved.ave been i thing the past 18 months have not been good to the industry in general. other exchanges having a very similar outage in early september. august was a time when it was
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highlighted in a slower market. it did focus on the need to make sure our industry is sound. that is why the sec invited all of the exchanges to go down for a roundtable in september. there are new fixes in place to make sure we are supporting all investors and issuers across all markets. we are talking about it openly. there are the changes we make to our market to make sure in the ever each and every company. >> i want to thank you very much. he is the vice president joining us.
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a watchmaker that is based out of detroit. they use the wright brothers for inspiration for keeping time ola. the title of -- shiniol
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isa watchmaker named shinola proving that manufacturing is alive and well in detroit. luxuryke handcrafted timepieces as well as leather goods. they are introducing their wright brothers limited-edition merchandise. the executivels, joins us from detroit. much for being with us. tell us a little bit about making watches in detroit. how did that happen?
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when all is said and done, we believe it is a fantastic idea? we have been planning this for some time. been assemblies for the last six or seven months. at the moment, demand far supply.our ability to it has been a very successful entry into the market. >> explain to us the process of making the watches you sale and their various price points. >> the price points are all $450 and $850.en what we do is we have swiss we assemble in our factory. we occupy 60,000 square feet in college's studies here in detroit. we will assemble about 40,000 or 50,000 this year.
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two stores. one is in tribeca. one is in midtown. we are also selling our watches on our website. we're also watching the american series. the series,tch in every year there will be somebody who we will commemorate. this year it is the right brothers. next are it will be henry ford. >> the wright brothers limited- edition is estimated at $1000. what about the wright brothers made them the want you are going to honor? talk about a group of fellows who made an incredible impression not only on the united states in the world. we thought this was a wonderful way to commemorate their 110th anniversary of the first flight. when thousand of these watches. we have a very limited supply.
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after tonight's reception, i havet that we will perhaps 400 or 500 available on our website. the last time we did something like this we launched the ranch .n march or april with between 500 limited edition on the market slowdown and eight-10 days. we may have underestimated the demand. we think we will go through all of them in the next four or five days. in the watcheen industry for about a decade. when he learned about the idea theminola and assembling into choi, what was your first reaction? -- in detroit, what was your first reaction? >> when you think about the combination of a city like detroit with the incredible history that it brings to the onket, it is history based
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design, manufacturing, craftsmanship, worth ethic -- work ethic. not for one moment can you diminish the issues and challenges that lie ahead for the city. for us to come here and base our manufacturing facility here combined with great design, wonderful value and equality watch made was swift parts that is assembled using swiss equipment, we thing we have done something very compelling. .his is the actual watch this is what i was talking about a few minutes ago. to my right, you can probably see the limited edition. in celebration of the wright brothers who are steeped in bike manufacturing, we produced a 25 bicycles.on
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they retail for $2950. fantastic bike. what is next? you said henry ford is the icon that will be ordered -- honored next year. what can we expect to see? >> you will see a very limited edition iconic watch. i'll will be part of what we have lunch, a foundry. is a very broad concept. we had to get a 100 year old brand and really turned it into a modern brand based on heritage. not only do we have bikes and watches but leather goods, journals, etc.. the henry ford watch will be an extension through the foundry which is a club that one belongs to want one buys one of these watches. we do this every year and honor
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the great american series. >> thank you very much. we have more next on "taking stock." ♪
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>> this is "taking stock" on
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bloomberg. let's go to mark crampton. >> thank you. new data for american homeowners. household wealth rose 2.6% as improvement in the home and equity markets boosted american balance sheets. worth rose by 1.9 trillion dollars from july to september. new york city make it three inches of snow tuesday from a storm that dropped eight inches of storm on philadelphia. it left thousands without power in virginia. today the treasury department has a full exit, ending nearly five years of government ownership. the government had invested $49.4 billion to gain a 60% stake. jack lew said with the final sale of gm stock, this important
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chapter in our nation's history is now closed. tonight, we will discuss the major league baseball winter meetings that kicked off today. we will discuss the trade in the transactions to watch and its affect on the economy. that is coming up tonight. hope to see you then. by midnight tonight, members of congress need to enroll in the health care plan under the affordable care act. or they risk losing their government subsidy. us now fromly joins washington. lawmakers, are they having any problems signing up for health care? like every day, they are facing technical glitches. some sticker shock as well as they plan to drop their federal health care plan and sign up for
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the obama health care law. they have to beat some of their own cooking. they have to experience what their constituents are dealing with. the reality is, they have more options. 112 gold level planned by four different insurers. the government picks up about 75% of their premiums. the onlineet to use exchange, not the troubled john bane are signed up for an individual plan. his office that it took them several hours and he does not really like the end result. a new $800 a month premium went to factor in his wife's medicare. arey health and premiums going to double. m lopez tripled. i am thrilled to death as you can tell. tripled.pays i am thrilled to death as you can tell.
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>> do they lawmakers actually have to enroll? >> they don't. they can opt out but there is a possibility it would end up costing them more money. one is mark. he is facing a tough reelection fight. no government subsidy. his premium is nearly $600 a month. lawmakers do not need to enroll. they're covered by other insurance. one of the lawmakers is covered by the spouses plan. the wife works at goldman sachs. this is valued at about $20,000. democrats are not hesitating to make this a big issue. >> thanks very much. phil mattingly, our white house correspondent.
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for more insight, i am joined by john, the founder and chief executive of the company that serves about four out of every five hospitals in the united states. you have a background. you founded in 1999. >> start us off. is the system that much worth 1999?an it was in >> it is predictably much more expensive. we built a cost-based assisted in 1965 with medicare. in 1967, the house ways and means estimated it would grow six times. he grew 61 times. in part because of the
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incentives. you cannot get paid in this country by the federal government unless he created a unless you provided some service that cost money. where is this in the terms of the cable to pay for this? >> the private sector's largest cost has been premium increases. been a remarkable amount of disposable income. in addition, medicare has become the greatest risk to federal entitlement cost increases. this is a result of how the structure payment was incentive. >> you are a veteran of the industry. you have witnessed this. you're trying to work with
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hospitals for profits. what are some of the prescriptions? we build 5000 different hospitals across this country. these are differently priced and costs. there's no way consumers can tell the differences. today isr economy driven by consumers who are very intelligent. 18% as health care. >> if you look in the one state, are those hospitals are allowed to share information with each groupso there can be one that is great at heart surgery and another that is great at emt procedures rather than duplicating? >> that is a great question. largely that is built.
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antitrust rules keep hospitals from sharing girls -- information competitively. they cannot share cost information with one another. at one cannot get good thing. they are flying blind. >> they are. >> they served their jurisdictions of the public interest. ceos are often caught between a rock and a hard place trying to provide services that they demand. shift there been a because of the affordable care act that many hospitals now have to talk about them produce evidence of the quality of health care? >> going forward, is not just the measurement of quality.
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>> we are providing as much care as possible. the keys people in the communities healthy. have a final word in terms of what happens next? are signing up for it. some people are not. >> we know that all providers are trying to cut costs. predict howg to they're going to manage care in care.onship to the >> no one has that crystal ball. >> thank you very much. gardenup, madison square has set up in in game experience thing to a three-year billion- dollar renovation. i'll introduce you to the company that has made much of
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the experience interactive. it is monday. time for mr. grass number two -- mystery guest number two. ♪
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>> while the new york knicks have not been all that pretty to watch this season, they certainly play an aesthetically pleasing arena. they completed a one billion- dollar renovation that included a new scoreboard directly above the arena floor. interactive video walls and kiosks. the company behind this interactive aspect is called " metroclick." it is great to have you both with us. have a background in technology and developments. how did you get involved?
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>> about eight years ago i did this transforming the experience of taking any person that goes to the dr. and taking the paper area. the we went from prescriptions to screens. i figure there is something in the industry that can trap the consumer more than what is existing right now. about two years ago we formed metroclick. >> how do you fit in? my background is in printing. we merged together. we formed some kind of medium that would put the two together. came a way to form an interactive platform for new medians. >> if i go to madison square
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garden and a walk around, before i even get into the arena, i can do what? i can go up to these big interactive screens? it is thertain area, north and south terrorists of madison square garden. it will let you control a larger video wall. we did a second video wall on the other side. it is anyway way that you can things from the larger video wall to the individual content from the kiosk. >> what kind of content is it? content a brand related -- >> advertising. >> advertising, user acquisition . the user is already there. they are in the medium of looking into the product and brand. toko -- lexus is using that engage the user to get more
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information. >> they are there at the garden. they get to stop by and logged in. what happens? does the information get collected? >> they come in. they play around with the system. they can enter a sweepstakes that lexis has. they can fill out information they want to be contacted by the dealer using the touchscreen speared the system collects information and can follow an e- mail. what we see from past month and a half of the system being used that kids and adults, everyone is entertaining the system. they want to come to the car. a game. it is here's the information. here's what we can do. >> you got lexis at the garden. what are some of the other brands? >> we have worked with american
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express. ,e have done milk fashion week hercules laundry systems. we are working with a lot in new companies coming up as well, trying to write a presence for different brands. >> are these expensive things to put up? cost.e an estimate of the >> every medium and media campaign is different. we sometimes partner with different brands. we help with the actual costs. something the consumer at home would say i want one of those because i want my living room, it is more for the brand. larger exposure. this is something they have in their marketing plans. this is where the feature is going. >> i want to thank you both very much. thank you very much for joining me. thank you very much. >> coming up, my ministry guess
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is going to be revealed. time for the third and final clue. he built an empire strip by strip. ♪
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>> let's review the clues. they could be considered the nsa of fine dining. he helps restaurants go from fizzle to sizzle and he built an empire strip by strip. let's find out our mystery guest. >> hi, how are you. >> you look very familiar. had ever been on the food network? >> a little bit lately. do you happen to own restaurants? >> do you dine at restaurants other than your own? >> yes. own steak
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restaurants? do you have a program that looks behind the scenes? >> yes. >> he make sure they are very clean. chain run a restaurant steakhouse. jack's ie -- i got to say. [applause] you are very recognizable. thank you for being here. you are very recognizable when you go into these restaurants. anybody know that it is you? >> they do once i am in there for the revealing part. that is when you see it on their face. they are all nervous. they're wondering what will happen. >> i do not blame them. >> people adapt.
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start changing. >> explain. what happened question you go from restaurant tour to restaurants by? >> there were different producers interested in doing a show. they found me in a craigslist. >> on craigslist? >> for a tough boss. 100 people put in names. i was mentioned five names. everyone else was mentioned once. >> you are the tough boss. >> that is what people say. i feel like i'm really fair. i have a huge heart. i'm going to be demanding. i'm going to make sure you love what you do every day. otherwise you could not be on the mission. >> tell us about the business of uncle jack's steakhouse. bring -- breakto out. i didn't want to do franchising.
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that may have four or five locations. that i can come in with me and my corporate team, open up an uncle jack's in the we do a joint venture. we open you up. the baby it. make sure we are executing it the same way. >> how did you get started in the business? >> i was a baby of four boys. to go newspaper routes through catholic school. our parents taught us how to work hard. moref my brothers, i was of a risk taker. i was not scared of failing. outways thought if i failed of a class that i did not like it got an a and when i'll like that was ok. i really did not like that class. would hold all my skills until it's on my vision. when i really liked to do. heer on, that has really
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lpe >> talkd to us.about the project part of your business. uncley first opened jack's, silly people had steak sauces. i didn't like them. was almost like a cocktail dressing. i made my own batch of steak sauce with all natural, organic materials before anybody did. it was costing me so much money. i try to go superhigh end. if i can go the best then i can live with that. but if i go cheap and cheesy infield, i'm never slipping again. the reaction?en >> the product is in many locations. distribution is tough. you got the shelf space. even if you give the shelf space and you spend all that money, how are you going to get the customer to change their habits? to is that person who comes the supermarket, what is going to make them change their mind
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and by your project? tastings.o set up get them to taste your project and understand why it is better and why they should take it home. >> what should you tell people about what really goes on behind the scenes at a restaurant. what kind of advice do you often get people? >> the restaurant business is a tough business. i started from the bottom. he can never forget who the workers are. you build the army from your dish up. as au're going to come in guess, a five dollar tip will get you better table. the little things are going to help you as a customer. >> i want to thank you very much. of uncle jack's steakhouse. we appreciate it. it is time for on the markets. we tell you about the dow jones industrial average at five.
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the s&p gains three. the nasdaq ahead by six. ♪ .
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>> live from pier 3 in san -- new york. we are covering the global technology and media companies that are reshaping our world. i am cory johnson. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. a coding lesson from mark zuckerberg. his video is one of many for children entered the encoding. an initiative that wants an hour of your tit


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