>> good morning. it's good back to work. i stayed up for six hours playing bejeweled games last night. >> i wish i could stay up doing that. >> it was a holiday. i was getting ready for the new arctic vortex. , mike bloomberg, going to be joining us. only are you doing this, but you're going to be moderating the conversation between bill gates and michael bloomberg. were you trying to think of questions and how to do all this? come a scenario like this you just say, it is a conversation. >> yeah, right. >> with some pretty big figures. we've been waiting 12 years for this to see the mayor back on.

it will be great to see him back on tv. >> people want to hear what bill gates has to say about microsoft. too.ll gates, i forgot about him. let me give you some of the news pouring in this morning. correiaal going on in -- korea for beer. anheuser-busch buying brewery --ean they sold it for one third of the price. they're buying it now for three times what they sold it for just 2-3 years ago. it is a vote of confidence for the korean your market. it wraps up deals for liquor companies as we all talk about pot and marijuana. liquor companies are big money.

bigger than all of last year. >> how did you get the story he ? -- we have as here polar vortex. it is coming. a new polar vortex is set to hit the east coast on tuesday. about six inches of snow predicted for manhattan. a foot of snow predicted for long island. hit.ll be hard temperatures will plunge to about five degrees. the conversation about what would happen if it snows during the super bowl. >> when i was a kid, that was normal. didn't we see it snowy football games? play super bowls outdoors in the cold. they haven't for 20 years. >> i think they're talking about

the fans, not the players. eating everybody to and from the game. >> my back is hurting from the shoveling. getting everybody to and from the game. it is an earnings season winter. go ahead. >> we're going to continue on headingd weather theme, for airlines. delta is delivering a fresh batch of earnings. julie hyman has a rundown of the earnings numbers. >> despite the winter weather we has donead, delta pretty well. earnings just about doubled. they beat analyst estimates coming in at $558 million. people had trouble getting where they were going. higher fares -- a lot of the airlines have raised their prices. lower fuel costs -- delta will

be the first of the major carriers to report its numbers. report $1.2 billion -- theyg to have been more disciplined on their capacity. rison is also ahead of analyst estimates. they had fewer customer additions than a year earlier, but the bills went up. i'm looking at my bill, it has gone down, but i am the exception here. the company also said it added 1.6 million monthly subscribers, lower than the 2.1 million a year earlier, but higher than analysts estimated. johnson & johnson out a few minutes ago -- that company also

beating estimates. -- if you a share look at its individual drug sales, coming out ahead of estimates. >> thank you very much. most arry rising the month after the defense department said 98% of its devices will be made up of the y's smartphone. is it just a government contractor he echo i want to bring in the head of research. you have an ipad. >> i was the original blackberry owner all through the years. i always had a blackberry. it was on my hips for many years. >> do you member the first blackberry that you owned? >> the first one. you had a slide wheel and you just got e-mail. >> that was revolutionary. now the story is that blackberry

has become so marginalized as a consumer brand that it is just going to be a government contractor like lockheed martin. >> i'm not sure we will go that far. it is certainly an enterprise product right now as opposed to a consumer product. -- a business product. main selling points is always been a security. we know now that the nsa can get into anything. >> they're putting their stamp of approval on it by stepping up and making blackberry their mobile device. >> people not blackberry, but you have the diehard fans who say that they like that keyboard . they liked the feel of it. they bringing the keyboard back. early to talko about the death of the company. >> i think so. they are still a brand value in the marketplace. they have a new management team. certainly the support of at&t. >> what are the numbers here?

small.market share is they have lost a tremendous amount. the stock market has written this company off. >> this knock is nine dollars a share. the attitude is, how much cash is on the balance sheet? what are the contracts worth? other than that, in terms of the actual product, you don't hear anybody talk about the product. >> not anymore. >> they got more people to spend more money. you don't have to have more subscribers. story difference is the with blackberry. there are people who still like to listen to vinyl records on a phonograph machine. there is a high-end value for that. you have phones like -- to your point, are you going to do anything other than?

>> bloomberg industries is not using blackberry. corporate america still uses it to some extent, but is going to be a washington, d.c. thing -- but it is going to be a washington, d.c. thing. >> maybe a business that is timegoing a lot of change, warner cable up for grabs. and charter communications has made its formal bid. we are all wondering if anybody is going to join charter. >> the marketplace is telling up --hat stock is trading the marketplace is saying, time warner, that is the deal that charter is coming in. the management has come back and said, no, we are worth so much more. we are worth 60. do question is, can charter it by itself?

the answer is come yes, they have the backing of liberty media and john malone. they will be happy to finance this transaction. for --potential >> charter is very small relative to time warner cable. >> why don't they just do the deal? >> if the time warner cable shareholders demand more cash in the deal and less stock, then charter might need some help here it help could come in the form of comcast coming in right at the last minute, participating in the deal, injecting some cash to improve the terms of the deal. part ofost interesting all this is john malone. he is now reentering cable. >> maybe he can pay for this with the bitcoin. he might actually use bitcoin as his currency of choice. it is not a currency in finland, apparently. i judge in finland has ruled

that bitcoin is a commodity rather than a currency. >> explain what a bitcoin is. the example you give us, the serial number, the number that is printed on a dollar bill, for example. >> bitcoin is a piece of duplicatedat can be and can't be spent in two places at once. officiallyrency, but , by the rules of finland and a number of other countries, it is not a currency. one of the reasons these for that is that they can't concerted legally a method of payment unless it is issued by a central authority. is that itf bitcoin is decentralized. there is no central bank. that one of the prerequisites? why does it have to be issued by any -- >> it is considered in many countries a commodity.

, it wasng time illegal. >> there are a finite number of bitcoins. completely done mining them yet. a oner 2140, we will have million bitcoins. right now we have 12 million. even if you can't pay for things in bitcoin, you can still pay for a lot of things. you can get tickets to the king. i bought plane tickets. i got john mayer tickets. i bought a lot of things. i lived on bitcoin for two weeks. >> i don't think you can buy pot yet with bitcoin. >> you can, actually. there is a dispensary that -- i only know this because -- >> let's move on. that is a perfect transition

over to president obama's remarks where he talked about the effects of pot and said it was less harmful -- he admitted it was less harmful than alcohol. he made perhaps some of the most -- >> he smokes pot. not in a bill clinton way -- >> he made some of the most liberal comments you could make on legalizing marijuana. he did note that the fact that it has been illegal has been a theon why -- part of disparity you see between users of pot. the ones who are white middle-class kids who don't get less than the are poor in the united states who are caught with pot and are prosecuted and thrown in jail. the numbers are way more than when you go into the more affluent neighborhoods. >> that will change, now.

assuming they buy from illegal distributor. colorado and washington. who are the two teams that are playing in the super bowl? >> it is the super bowl. the broncos and the seahawks. " is a term that is used for a marijuana pipe. not everybody knows that. it is the " super bowl." who watched the game this weekend t? ratings because the patriots played and the 49ers played. these are massive markets. -- the ratings are up 20% year-over-year. they were up big. this validates the huge prices that these networks are paying to get sports rights. sports is one of the things that

continues to work huge on television. >> thursday nights. thursday night this post be the night of championship football. >> there are some games on the nfl network. that is a fledgling network that the owner started several years ago. some of the recent news -- the owners recognize that it can make more money by taking some of those games off of the nfl network, which is not fully distributed, and selling them to the highest bidder. we're probably going to see more games on thursday nights on broadcast networks. >> nfl network is struggling right now? million are about 100 tv households and they're not distributed in this household. it is a good business, but they have to recognize that if we get onto a broadcast network on a thursday night, that is where we can make money. nfl football is by far the ratings leader across television year in and year out. i am predicting gangbuster

ratings for the super bowl, despite the fact that san francisco is not in it. >> a lot of people that own nfl teams are billionaires. one of the perks of being a the nfl is a- nonprofit organization. and the growing perks of being a billionaire, owning an nfl team. but also, giving back and helping with p is becoming huge . income inequality his talked about more and more. ♪

>> as we know, the world's wealthiest people gather this weekend. a big focus is going to be income inequality. a widening gap between the rich and the poor. an interesting statistic came

out from the organization -- the international organization releasing a port that 85 of the wealthiest people in this world have about as much wealth as the poorest half of the world population. it is incredible. scott galloway is joining us. scott, by the way, as invested over $1 billion in consumer and media companies. you studied this issue as well. you have also talked about this widening gap. you say nowadays, it is easier for people to become billionaires that it is for themselves to actually get out of poverty. >> that is a term i used in my class. i teach 130 kids on monday night. the majority of us did pretty well coming out of school. now, the term is, it is never easier to be a billionaire. they're getting on the right technology trend.

there is a decent chance we will have a billionaire among those kids in the next 10 years. they're not going to get onto theright job path, get right skills, have student debt that will get in the way. tohas never been heartene hardr be a millionaire, but never easier to be a billionaire. have fewertrue? we millionaires than ever before? >> we have fewer millionaire households. i'm talking about kids who have tremendous momentum. you have this velocity effect where you need to get into the right airstream and just rip up or you struggle. it is really difficult in the u.s.. we talked about the war on poverty. slowly but surely, we have declared war on the poor. if you look at a monetary policy, we could have given

$50,000 to each person and they spend that money. >> when you mention your own students in your class, these aren't poor students. they've all been able to go to a very prestigious university. what is that? the system is failed them? what is it? river whencry me a you're talking about mba students. that is not the real issue. what is hurting them is student debt. the cost of education has skyrocketed. issuesve some structural , which makes us vulnerable to upstarts. the real issue is among people in the poor. 90% of kids will go to school. the poorest, 10% will go to college. orly is not that smart

motivated. he's going to college. you go to a poor household and you see a kid studying hard, chances are he or she is not going college. it remains the lubricant for upper nobility in our society. >> you think the ultra-wealthy have a huge responsibility to fix this income gap? who is responsible? >> the pope had this interesting rely on then we'll generosity of the riches, does not work out. -- richest, it does not work out. government and societies have to have a need those around being more generous or loving the poor. look at the narrative. when we talk about giving money -- giving money to the poor -- >> he's staying with us. more next. ♪

>> you're watching in the loop, live on bloomberg television and streaming on your phone and on bloomberg.com. coast for the hour, bloomberg industries paul sweeney. an hour, bill gates and michael bloomberg, who is in-house anyway -- they will be in our studio talking about philanthropy. bill gates just came out with the annual letter. one of the main objectives of this letter for him was to debunk some myths about helping the poor in the world. it'll be a great conversation. >> the kind of thing you don't miss, regardless of what industry, you have to tune in

and watch this. bloomberg television is on the market. let's take a look here at s&p futures. dow jones up .5%. markets aree the going to open well this morning. even as we await another polar federal buildings are closing in anticipation of snow? >> schools are closing in anticipation. >> and federal buildings. they need to stay home because it may snow. >> i hope that's wrong. vortex, orr temperatures will drop to about five degrees. it begins tuesday in the northeast, particularly along the coastal areas. 6-12 inches.

vortex, itolar bolt t is company by snow. >> ever since the weather channel started naming snowstorms as a marketing ploy, all of a sudden you make a huge deal in the media when it snows in the winter. it is in the normal when it snows? it is january 21. is it headline news that it snows six inches in new york city? >> the airlines, flight delays, my kids are hardly in school these days because every other day the schools are closed. you wonder how it will affect the numbers when they come out. >> yet, futures are up. and you believe the optimism in this market? online gambling.

online gambling is what we're going to be talking about here. gambling in general is what we will be talking about here over the next half hour. most people when they go to the casinos lose money. the house wins. you are giving the money for entertainment value. but we have a story of one guy who actually wins when he plays these games. stay with us. ♪

>> be sure to stay tuned to in the loop because in about an hour, i will be sitting down exclusively with microsoft founder bill gates and bloomberg lp founder michael bloomberg. we will have a great conversation about philanthropy and the latest causes that both ise championing in th world. >> this year, promoters at the new nightclub in the bellagio

will blow all the others way. the table is worth $250,000 a night. here is why it is worth every penny. mgm possible loggia casino at the exclusive nightclub, one of the most expensive tables in the world. wow, i like this table. >> absolutely gorgeous. >> part of its value -- the view. spring robots. ountain -- $40 million. inside the club, the fountains are made of champagne. it is the most profitable club in vegas. the average table here costs $8,000 a night. this one, $250,000. what makes the difference? this red button.

here we go. it sets up these fountains. it costs $10,000 to set them off. >> i want to keep hitting the button. street smart trish regan joins us now. we have paul sweeney of bloomberg industries. he is our coast for the hour. that seems like a fun piece to do. >> what you did not see in that piece just now is a legendary gambler. he won $15 million playing blackjack in a span of just a few months in atlantic city. he did not cheat. he did not count cards. how did he do it? this documentary looks at the ther ability -- vulnerability and the industry that exists today and how you can exploit them.

things like this table. are giving way perks. he negotiated things that are far better. give gamblersg to his tips tonight. you're going to show people how -- how he has $118 million. >> do they want to keep them out ? >> he could walk in off the street like anyone of us and play a normal game of blackjack. what he has managed to do is even out the odds for himself. whalese desperate to get like him in the door. >> they're willing to make some concessions on smoke the rules -- some of the rules. almost like the casinos themselves are addicted to

gambling. it is their business. they have to keep the money moving around. toas long as we continue keep them playing, we will eventually win. that is what he said. >> it is very unusual. the trend is that gambling revenues going down. in atlantic city -- >> in vegas. >> yes, to a degree. atlantic city is declining. >> a very competitive market in the tri-state area. it is an awful place to go. that might be why. >> i was going to mention the borgata.oor go they are hoping that online gambling will offset some of the declines they are seeing in their physical casino. we interviewed him last week. this is what he said about online gambling. >> this is a business that has

to build awareness. it has been illegal in the u.s. for years and years. there are a lot of credit card processors that don't process online gaming and actions. that is slowly changing. >> they don't do that because they are worried about money laundering. they're worried about the loophole. gata -- you the bor have to have a physical presence in new jersey. a casino that operates there can get into the online business. it absolutely is an opportunity. you think about -- >> what an antiquated law. they donated enough money to congressman's campaigns to get that on the book. >> it really is an opportunity for them right now. about all the casinos

-- i joke that it is a little bit like marijuana. everybody is legalizing online gaming because they want the opportunity for revenue. it is going to make it more and more competitive. >> it is not as likely to make you porous gambling. do people ever talk about the moral concern? as we discuss income inequality, ly aously gambling is most tax on the poor. they waste their weekly or monthly income. there are mutual funds that cannot own gaming stocks for that issue. in general.zard it has become a global business. >> it is going to hurt the poor. >> if you go to some of these local, regional casinos and you see people standing in line spending their entire weekly paychecks on slot machines come

it is really depressing. >> what about the lottery? >> the same thing with the lottery. absolutely. >> so states are taking advantage -- >> do you not think that is the case? >> so you outlawed altogether? >> when a state run the lottery, they are taxing the poor for the benefit of -- >> for school programs -- >> what you think about taxing the poor? it is their choice. they're choosing to play the lottery and go to the casino. >> they're choosing to go on silk road. they're choosing to do whatever they want to do. we're seeing state after state -- >> the freedom fighter. i'm just pointing out what it does. you can't look at these things from the benefit of the casino owner. you can't look at it only from the benefit of the state lottery. you have to look at it and see what they do to the people that waste all their money with the

addictive habit of gambling. >> so you are advocating a nanny state. >> people of gambling addictions. is less likely that you have a marijuana addiction. we are worried about marijuana. nobody seems that worried about gambling. >> i would only point out that to a lot of people, it is a form of fun. they enjoy it and might find a way to do it regardless of whether or not it is legal or not. it is an opportunity for states to make a little bit of money on it. hopefully giving it back to the poor. you do sound an awful lot like sheldon these days. >> legalize it. paul sweeney is going to stay with us. trish is not. she will be back at 3:00 for street smart. don't miss her special tonight. .t is fantastic are tonight at 9:00, we have been

waiting for eight weeks -- for it for weeks. ♪

tuned for0 a.m., stay my conversation with mike bloomberg and bill gates on philanthropy. we will be speaking about both of the billionaires'extensive efforts, including the letter that was released this morning. ceo,be talking to the harold hamm, who is joining in. and also morton zuckerman, will as will be joining us well. speaking about giving and taking and whether that works wonders for your own career, my new book with ceo saying what you need to know to get ahead, ask some of the top leaders in the business world come including the aig ceo . what were the biggest qualities

that led to their success? here of the beste advice they were ever given. you have to work hard. there is no getting away from that. you have to prepare like crazy. this sounds counterintuitive to the first and maybe the second, but family has to come first. the easy switch, but the guy who went to harvard or princeton, but those in the balance of understanding what it takes to win. saweing a math major, i i was dyslexic, so school was very hard for me. it taught me persistent. >> it gives you some more creativity about how you look at problems and how you think about problems. you think about problems much

differently. having the courage to do things differently. kids. had four we just go forward. that was the biggest attribute my success. operations -- a lot of interest in marketing and sales. very cool stuff. the book is out. i have not gotten a copy. >> you bought one? >> i bought mine. will buy great -- i one from you if you will sign it for me. orgine a job without titles without traditional hierarchy. it is a utopia.

no bots. boos. ss. zappos is one of the biggest companies to implement the structure. early adopters are gushing about its benefits. julie hyman joins us for more. an interesting concept. i can imagine how it would work effectively. >> i had a hard time understanding it. it is actually quite a complex system. it is governed by a lot of rules. it takes a long time to implement it and learn a new way of doing things. wholey it works is, in a lot per see, everybody's job is role-based rather than being given a title by a manager with a specific set of duties. the roles involved in your job are decided upon together i committee through a set government ross s.

there are tensions though they talk about. havetalk>> in the military, you to fill. they're dedicated to specific duties and functions that have to be maintained or executed. as a result, it is about how many you have and you find people with the best skills to fill those. and you launch them and they get a career and make things happen themselves. >> exactly. >> in the military, they've been doing that for years. a but they do have hierarchy in the military. >> there is a chain of command and you have to follow responsibility. >> the ceos of these companies, because they are not spending their time managing people, it frees them up to do more creative work and more of the work of the organization or the company. >> how do they keep a handle on

what is going on? >> there are two kinds of meetings. governance meetings and tactical meetings. ancehe govern meetings, you talk about who is in the roles. meetings comeal you talk about the work that is going on. is something preventing you from executing one of your roles properly? what can you do to make it happen? the people i spoke to at the various company said that it is a much more efficient process. weekly.et done the meetings are so efficient that they don't waste time. matt? would this work for >> i got a feeling that it would not work for you. >> would you like a company with this infrastructure? >> i'm trying to think of a smaller company -- >> the u.s. army is not too

small. thank you very much. cracy hyman, our wholo expert. trying to do and who they are trying to take money from his next. ♪ -- is next. ♪

\ with razor market thin margins. has entered the digital music space. our resident dj and training has been tracking the company's move. can beats compete with spotify and pandora? >> they like to think so. they have an all-star cast of people behind this, running it. music executives come arguably some of the most successful music tickets out there. they would say that they are the

music industry and can negotiate with artists better because of that. keep in mind, it has been phenomenally successful with their headphones. that brand could translate into more users for the service. let's put all that aside. >> what is this business? what is the model? forou pay a lot of money content. that is what makes it so expensive to run this business. then you sell it for a subscription service, like what spotify charges. you get to stream music as you would over a radio. ideally, these services would result in you discovering more artists, discovering more john racz, that kind of thing. >> i think there are too many of these services already. what distinguishes beats is

actually not about what they are talking about today in the news, it is the fact they have a very different model. miums not the free model. you get them hooked. it they are saying they're going to be a premium service provider. we are going to partner with corporations. this is ingenious. they're going to partner with at&t. he may not mind subsidizing some of the streaming and data because it is to associate itself with a cool brand and people are going to use more data on at&t. >> we saw the rise in numbers this morning. zon numbers this morning. >> there is a lot of competition. you look at traditional radio, the amount of listening is falling slightly. people are spending more time with media. they're spending more time with online music.

there is a market. it is getting very competitive. there is always apple out there. everybody in this market has to be concerned with apple. >> they have a huge library. they will be the force to b be reckoned with. >> dr dre was at the patriots game. so was bon jovi. and i have aeats competitor. >> i was in the airport when i bought those. is on thetelevision markets. let's take a look at future is here. just a half hour, .5% across-the-board. at 9:30 a.m., our conversation with bill gates and michael bloomberg. be sure to stay in the loop.

♪

>> welcome back. we are 30 minutes away from the opening bell. new york city mayor michael bloomberg and chairman bill gates. we will be speaking about both of the billionaires expensive efforts in philanthropy, including a letter that just came out this morning. an exclusive conversation you will only see right here on bloomberg television. stay with me throughout the hour. we are also talking to other well-known philanthropists and businessmen. with thee speaking continental resources ceo, a

self-made billionaire who joined the pledge that gates and warren buffett put together several years ago. not been this upbeat about the economy in almost five years. that is what a bloomberg poll is showing. 30% say it is stable and only -- they believe the global economy is deteriorating. industrialf the nation led by the united states. i want to bring in peter cook. my guest hosts in this hour those polls seem to be pretty optimistic. >> pretty optimistic. sunshine shining on the world economic forum.

announced to emerging economies and gross ross s due to developed economies, advanced economies, particularly the united states. the poll really suggests there is confidence not only in the united states among investors but also around the world. the idea the u.s. is the best market opportunity, 46% of the european union). we were not seen these numbers a few years ago. confidence in the u.s. in particular at a time when there are still a lot of country who are not feeling good about the economy. there is a disconnect. bloomberg subscribers versus the average american. a poll showed 70% think the u.s. economy is in relatively poor shape. investors think they are right in terms of what is driving this . >> it depends on how big your

stock portfolio got last year. >> and whether you are unemployed. >> stay with me. i want to bring more into this conversation. are you as optimistic? i am not. i have been saying the difference between an optimist and a pessimist is an optimist thinks this is the best of all possible worlds and the pessimist fears he might be right. that is my problem. i see a lot of very fundamental problems in the american economy as we sit here today. jobs is one. very low levels. the lowest level of reinvestment by american business as a percentage of sales profits we had in years. american companies are not really expanding. they know their own markets. what they see is not enough to inspire a lot of expansion. i also see a bad disc version of income. what you see with respect to increases in stock rises, for

example, is a reflection of what the federal government is doing in keeping money so free and loose. >> without having the benefit of knowing all of the details of this poll, would you suggest those who are very optimistic are perhaps deluding themselves by looking at stock market gains? >> s. i'm focusing on the economy. employment and investment numbers are weak. profit markets are -- margins are very good but that is at the cost of something. who is paying the cost? the level of wages is improving at a slow pace. about theworried macro economy and i'm not saying it is going into a major rejection, but i just do not see that kind of optimism being justified by what i see in the economy. >> let me just jump in. in the last couple of years, there has been a lot of talk that -- that washington was

holding him back. ready to invest because of concerns about the budget battle. some of those issues are on pause. what is holding corporate >> withholding the american corporate world back is they do not see the kind of energy in the economy. sales are up modestly. the kind of energy you normally see in the economy is just not there. what is artificial about the economy is what is being promoted by and pushed by very loose money and low interest rates. that is a very different thing from the major economy. employment numbers are weak. output numbers are modest, not weak or strong. what really disturbs me the most is american corporate investment is very weak. could be ayou think catalyst for change? >> a very good question. we have been in a relatively weak condition as an economy for

three or four years now, if very for the economy to grow at flow rates. i do not know exactly what the answer is. we have a chance over time to rebuild savings and confidence, but i have to say neither the manynment in washington or of local state governments are inspiring that kind of confidence. everybody sees huge deficits that will face us as far as the eye can see. this will have a real costs on the economy at large. -- bloombergup global poll, there are reasons people have given more for being a little pessimistic about the economy. what were they echo >> it is interesting what was selected. the top of that list is the slowing economy in china. it seems the biggest threat to the rosy outlook in the broader poll. it fed has mentioned as well

is number three on the list. the fed's tapering of bond purchases, 14% say that was the biggest threat to the global outlook knowing forward. not the the radar but concern out there that others had anticipated. >> let me add one other thing. look at the way people are being paid in america today. the percentage of people working who are making relatively lower amounts of income, that part is growing. itis true at the very top, is growing. middle-class jobs in america are the ones that have been evaporating slowly. lower income jobs that of increase and the very wealthy. that, to my mind, is not enough for a strong and growing economy. >> you are similarly disturbed about the growing income inequality. >> i am. i do believe i do not quite subscribe to everything he , but that is a major

issue facing the country. it will have a real political consequence at some point. it at the white house, democrats in this midterm election year, they believe the issue can dominate the thanssion in a way more so robbins with healthcare.gov and the health care debate. they think that issue will help and will bepolls something that resonates with president obama the president is going to europe. one of his visits with pope francis where you can be sure inequalityf income will be higher on the agenda. >> he has spoken out on that. peter, thank you. staying with me throughout this program. we will take a quick look at company news this morning. to acquire ad service in a move that will extend offerings of internet- based services.

the acquisition of intel media and its employees will accelerate the availability of next generosity of services. financial details will not be closed on this. a company about to confront new challenges, all aluminum. the company will likely deal with higher insurance rates and mechanics picked. it has long been the metal of choice for the car industry. alumina makes lighter trucks. the accelerating growth in emerging markets and stagnant will continue after quarterly sales provided some respite for investors. the maker of ice cream and riseoo, says sales will around 3-5%. so ahead, we will talk with a pioneer in america's energy the debt boom. carroll will be joining us.

stay with us for a rare and exclusive conversation with il gates and michael bloomberg coming up just after the opening bell. watch it live here or streaming live for free. you can watch it anywhere. ♪

>> you are watching "in the loop" live. the former gas station attendant who has become one of the richest people in the world, harold, at the forefront of the u.s. energy boom. credit for given

discovering the shale formation in north dakota, the biggest oil find in the country since the 1960's. continental resources was the first to profit from fracking those oil wells. harold is with us now. joining me with my cohost, flacco and chairman of boston properties. i would normally want to talk to both the -- both of you about your businesses. i would like to talk about your philanthropic efforts. we have not in many ways drove down into what it really means when people like you give away millions and sometimes billions of dollars. as i understand it, you signed onto bill gates and warren buffett, they're given -- giving pledge. what was your biggest motivation? >> there is opportunity to solve some of the problems andst lockup polio across the country, that is a huge thing. making a lot of very good progress.

billnot say enough about and what they are doing with polio and malaria and other thee health issues in country. >> is that where interests are for you? what do you want the money to solve? >> certainly, i plan toe lines, help them in that regard, as warren buffett has done. there is also very unpopular diseases in the country and here in oklahoma and one of the most prevalent is diabetes. certainly, it is not popular and it is very costly. not a lot of people were involved. >> you have not signed onto the pledge, but you give hundreds of millions of dollars away. first off, why have you not signed up with the pledge? >> it is not because i do not agree with the pledge. involved in philanthropy on an individual

basis and am very active and i funded the research institute. i like to focus on particular areas of medicine. sure i will try to approach the wonderful third -- philanthropy of the people you just identified. just focused on certain individual areas of medicine i found interesting. >> of interest to you and your .onations, let's not understate $200 million at columbia university for brain research. how did you pick that issue and put that much money behind it? , athere is a genius man nobel laureate and probably the and medicalentist researcher on the brain. i had a chance to meet with him one day. what he said was riveting to me. we now have a different level of technology in science that

enables us to understand what is going on in the brain. we tried different kinds of treatments for different ailments in the brain, we could figure out which ones do and do not work. he said there would be an enormous acceleration of dealing with all the issues of the brain . with an older population, a lot of fuel in a 70's and 80's, dealing with issues like alzheimer's and dementia, parkinson's, all of these diseases will get totally different kinds of focus and accelerated levels of treatment. >> what you heard is we are on discoveryf a major and you wanted to put your money into accelerate that. >> yes. and help launch the whole school. that is exactly what happened. i am thrilled about ringing an additional researchers and other acclaimed physicians and experts in this world and creating a great center where a lot of this ink can be accelerated advance.

>> one of the biggest questions is,ve for people like you how do you measure success and know the money you are putting aside for these causes is really working? >> i could go first on that. our diabetes center in oklahoma city, great things come out of cure,volving possibly a in clinical trials. we are also seeing a lot of other good things. maybe tied to genetics for the first time ever. the research is everything in regards to curing a disease like this. certainly, you could see good things almost immediately. very fertile field. it is working. >> do you face reality and say, i know perhaps a portion of the money i am giving away might be

wasted, and the reality is there areas where the money will be used and efficiently. are you factor that in? >> yes. that is true in life. you accept that as a given. where will the largest portion of the money produce the best results? i funded a research center and i believe they have got the greatest concert -- concentration of outstanding researchers in the whole world of cancer. research a lot of the does not produce the kinds of results you would like your a lot of it does. now in thistrue innovative feel people are focusing on, neuroscience. it will not happen overnight that we will find solutions to these things. group of people together working long enough with the resources to test out all sorts of different theories, and you have to believe sooner or later, we will make a lot of progress. >> how do you measure year-by-

year that your money is being used right? class i do not hear it i trust the people i have been fortunate enough to be involved with. there is a three-man group running the columbia institute for the mind and brain. each one of them i is a genius. two of them are noble laureates and the third is the smartest of the three of them. what do you say? you cannot do any better. if you will do anything, and i'm sure it is true of all of my compatriots here, you find people who are really talented and are serious researchers, and you make your bets in that way. they are the people who understand the field and you have to hope you do the right thing and in any event, you will advance it to a greater or lesser degree. it is just the way it seems to me to do it. more focus on philanthropy because there has been a focus on income

inequality. the rich are getting richer and the poor are getting poor. you feel you could have become a self-made millionaire and you could become one now versus when you first started? i think people can. for me, education is what got me out of the cyclone of poverty. that, combined with hard work. two.ill takes those you have to make yourself aware and then were -- worked very hard. it is possible today. certainly. lot of self-made people. >> the average american was at that and says, all the wealth is getting more concentrated among the richest people in the world. what about them? know.o not i think i can follow. was not anted off, i american. i was a canadian. was $7,850.salary harvard lawto the

school. that was it. i had a six-year-old chevy. you start off. but i was lucky. and found worked hard a field where i was able to do well. a lot of fields are open to a lot of people of talent who are willing to work hard. i think everyone of the people you will talk to has done. just have to hope we expand those possibilities and we're doing that. i do not happen to agree with the way the mont -- the monetary policy is inflating certain assets, but that is another issue. by and large, we have the best economy in the world and the biggest chance for success. >> all right. stay with me. we have got to run, but thank you so much for joining us. the chairman and ceo of continental resources. you will stay with me throughout the opening bell. we will talk more about this with bill gates. he released his annual letter and will be joined by michael

bloomberg. coming up in a few moments. stay "in the loop." ♪

>> welcome back. we're back with my cohost. bring you conversations with michael bloomberg and bill gates in a few moments. 26 minutes past the hour, bloomberg television is on the markets. more on futures. >> futures are looking to a stronger open. the s&p climbing higher, up about nine points. the dow jones up over half of one percent of the nasdaq, 21 points. the central bank, $42 billion worth of money into the financial system, extending the loans facility, helping the optimism in the market. we will be back in 30 minutes.

>> thank you. we are back with -- mort zuckerman, the chairman of boston properties, the editor- in-chief of u.s. news, and just for a moment, let's quickly talk about the markets. some of your peers have theycted in these markets, will continue to rally. that we are still headed higher. >>you share that confidence? here is what i do believe in. i have never tried to predict the markets because i have been wrong much more often than i have been right. as long as the feds will pour as much money into the financial world as they are, we will have low interest rates and a much stronger stock market because it is a direct election of low interest rates and that seems to me will be a lot -- around for a while. i see the basic economy is still weak and the fed will do whatever they can to make sure it does not have a real downturn. it seems to me that will

continue for a while. willnk financial markets be very strong. >> it sounds like congress will be a nonfactor for now. >> you can never tell. you could never imagine how many things congress can strew -- screw up. large, they should be on the sidelines. the real problem you will have is congress will also push these too far in the wrong direction, too far towards stimulating the economy, too far towards taking additional expenditure programs that will be a huge problem in a year or two. that is right. then we will be stuck again. a very difficult fiscal situation. >> let's talk about the intersection of politics and business. we have talked especially during elections about president obama and how you supported him initially and how he disappointed you. andhave also been speaking pretty optimistic about chris christie. the new jersey governor. >> based on the fact i

represented the state of new york in negotiation with the state of new jersey and i had a lot of dealings several years ago on the matter, i found him to be very impressive. he was easy to deal with even when he disagreed with you. he did not alienate you. >> none of the bullying you here now. class i did not see any of that. class it would be hard to bully you. >> may be. it would be hard to bully him, too, and i tried. i was astonished about what came up. it has done him immense damage. i do not know he would be able to recover from this. if anybody can, he can. a natural politician. >> enough to detail his 2016 bit? >> it certainly hurt him. his prominence may be due to the flatness of the ground around him as we say. he is a talented politician, but he has been badly damaged and badly identified with this kind

of lousy politics. the country is really sick of it . i do not know if he could pull himself out of this. i think he will survive in new jersey, but i do not know if he could flourish nationally. class he will deliver his inaugural a dress in a few hours. is there anything you believe he could say or hear that could limit the damage? the do not know what all facts are. the problem we all have is one or two fax, one e-mail derailed his first claim. now you have somebody who has kept a diary of what she wrote at the time. helpful to him in anyway. he has got to find a way to deal with it. his best conference was handled quite well. we will see how he does. --ther or not he can cover recover nationally given the press has really gone after him because he seems to be one of

the highflying kites and they pulled him down, i just do not know if he could recover from that. >> you were talking earlier about eating self-made, a self- made billionaire. talking about ingredients to success. extent do you try to encourage other entrepreneurs? how involved are you in helping other people start their businesses? not know if i am directly involved in that kind of support. i support a lot of scholarship programs at business schools, where i think you have a chance to find entrepreneurs. what i like about america, and it has not gone away and is not going away, is that this is a country open to energy and talent. as long as we keep that openness and the upward mobility, there will be people who want to take do ittage of that and they have to fear the idea of being an entrepreneur is a mysterious process. somebody just

capable. it is somebody comfortable with risk, somebody who has confidence in his or her own judgment. that is produced in many different ways and in many different forms. more in this country than by far in other countries. most people want to be in on sugar nor? very few actually take the risk. off, and youtart your colleger education or at least have the minimal income coming out of it, it takes a while before you are willing to take a risk before you have a family to worry about. a lot depends on the general upbeat of the economy, or the downbeat of the economy that will give people this kind of confidence to take chances. there are people who just have it in them, who want to succeed and be successful who are willing to take risks and they will take risks even with small amounts of money and build it up. no country is more open to that than the united states.

quest for you right now, the causes you want to support, as we mentioned, speaking about brain research, are there other areas you are now looking at more that you would like to put your resources into? >> yes, but i am committed to this whole idea of brain research that i will really continue to pour a lot of resources into that growth. and olderth an older population, it will be a huge national issue. if there is a way of making a contribution toward the issues, as we spoke before, dementia, alzheimer's, any of those, i would like to be able to participate. >> hang on. julie hyman, our senior markets correspondent, she has got breaking news. >> it has to do with the global forecast coming to us from the international monetary fund. it is raising its forecast for global growth this year. we have seen a lot of different economists doing this already. ims is looking at expansions in the u.s. and eu cake

celebrating. at the same time, it is urging advanced economies to maintain their monetary combinations to strengthen the recovery. the new numbers, the global will grow 3.7% this year. that is only 1/10 of one percentage point higher than the previous estimate, but it still is giving these provisions to the world economic outlook. 2.8%.s. gdp will extend by , japan will be up 1.7%, and the u.k. will be up 2.4%. expressing more optimism here on the global economic recovery, the imf is saying the chinese economy, that that will decelerate, at least a little bit with a growth of 7.5% this year. class i look at the numbers, and i do not want to be pessimistic, because i'm glad it is going in the right direction, but if you previous recession in the united states, there are approximately eight of them, in the four years coming out of the recession, the four years of growth, the average rate of

growth until this recession has been 4.1%. you see a number of 2.8%. >> why are we cheering over their? >> yes. it is much lower. this worries me. we are still in troubled waters. i think we will come out of it, but i do not want to overstate my enthusiasm. >> it is a reality check you are giving us their thank you for joining me this hour. it was great to have you. up, just stay with me for a moment. in the meantime, the microsoft founder and chairman bill gates and michael bloomberg join us for a rare conversation. bloombergus or watch television streaming live for free on your smart phone tablet. stay with us. ♪

>> the ceo will replace his entire currency with a locker see, getting rid of job titles. in theory, employees will have a lot more saying. they will be happier and want to stay at the company and be more creative. that is the theory. is digging into whole locker see. -- wholeocr see is acy. a process. essentially, how it works is,

everyone's job is role-based, versus being defined by a title that management is does upon them. you have a set number of roles and there are government meetings and tactical meetings about how the organization is structured. reallyomething you are excited about. class i think there is another role to play, the role of leadership.

just two names to pick them out of the air, try bill gates and mike bloomberg. really kind ofst leadership building a great company, it is not an accident. it is a combination of not only leadership, but also the ability to convey values and a certain kind of approach to whatever the particular businesses. have great confidence in leadership. when it is not there, let's ring in a vast array of people. class we all want to feel like we are contributing to the company and it is all teamwork. sometimesedible to me to see how much influence one on andual could have organization for good or bad. i had someone say to me, we have is person on our team who

distracted. it was incredible to see how one person could destroy an entire corporate culture. that is the underside. the great, most of american corporations have reflected the kind of leadership and creativity of either one man or a couple of people, and i'm not saying that is the only business model that works, but on the basis of saying, we will all hold hands and sing whom i out. --there are not that many most of them are small and have started characteristics if they are not actual start of spirit it is not necessarily going by bai ya.e biodel -- kum liberated by having to do the daily grind of managing and of trying to make sure everyone else is doing what they're supposed to do. on more they can focus

creativity and more things back into the company. an area ofn technology and rapidly changing technology, where one person cannot manage it all, and you have to have much more coming from the bottom up. goes in the direction it.ew approach to i have seen so many major institutions that can either be abused by the wrong kind of leadership. leadership is critical. there are differences and you could say we have a congress and everything like that. the executive branch, the most critical factor in the way the country moves. that is changing because you're

getting much more from the bottom up. technology and education. >> thank you. great to see you. that was the boston properties chairman. coming up, the microsoft founder and chairman bill gates, michael bloomberg, right here on set with me, joining us for a rare conversation. stay with us. watch it live as well as streaming for free on your smart phone, tablet, and bloomberg.com. ♪

>> good morning. entrepreneur,an technology visionary, and global philanthropist. he is now -- now, he wants to admit busters to the list. he wants to destroy the myth that poverty and disease cannot be eradicated.

the gates foundation can out with the annual letter this morning. be almost no will court nation left in the world. that is his perdition. bill gates is joining us this morning along with the founder and majority stakeholder of bloomberg lp. for joining us. good morning. bill, i read to your letter over the weekend. that you in the tone are very optimistic. you say, we are better off than we were decades ago. where does the optimism come from? >> i am naturally optimistic. i believe the facts are on the side of the optimistic. it is dangerous. they do not look at best practices. it makes them less generous. we are raising. most people in middle income companies now, there is more to be done on health and

agriculture. if you do not see that, you will needissipate in what you to do. >> you say there will be none by the time we reach 2035. >> almost none. , it will beountries less than 10. when i was born, almost all countries were born. we are down to about a quarter of them. on it, we could make it really exceptional. >> you mentioned in your letter that not everyone should have won the warren buffett was talking about. you donated last year about $100 million to the bill gates foundation to eradicate polio from the world. do you share the same optimism? >> yes. i could not be more in agreement. is of the things people miss

advocates seldom want to acknowledge success. they always want to have more to do and be more important. right. 100% there are fewer people starving and fewer people sleeping without a roof, fewer people who are not literate. by any rational measure, things are better. placeoes not mean every where every person. there will always be a bottom 20% and we will always redefine what that 20% means. to say all the foreign aid and the bill and melinda gates foundation or a lot of people have invested, that is just not true at all. tony is a doctor in africa who is trying to get numbers and find out what people are dying from because if you cannot measure it, you cannot manage or fix it. you look at birth certificates and it will say, "act of god."

that does not tell you where you put your money to save people's lives. the le monde are working on polio. it is the chance of eradicating the disease like smallpox. or malaria were vitamin a deficiency. awful lot of new science and new ways of distributing product that's progress. >> why do you think people do not want to admit there is that success? >> we always see a few people. you have to put it in context. we are talking about eradicating or changing something when 6 , 25ion people on the planet people you interact with during the course of the day is hardly representative. believes you are wasting your money with this and that and that is not true. bill melinda never shied away from taking on the impossible tasks. complex problems do

not have simple answers. they are not unsolvable. >> will be the catalyst to change peoples minds? you want to debug -- dee bunk -- you want to debunk these myths. what will be the catalyst to change perceptions fundamentally? >> we want people to spread the word. should feel great about the time but feel that we are not doing more. you.ines mislead bad news is a headline. gradual improvement is not. when do we celebrate these deaths and gdp growth? we almost have to take a letter like this and speak out and say, wait, despite how bad we feel weut what is not yet done,

have approaches that work, and the cynicism is holding us back. people think eight is a big heart of the budget. less than one percent. above will say 25% or five percent. isone of the perceptions that so much aid goes to government in africa and may waste that aid and it gives awaypt -- corrupt regimes to not do it they say they will do. >> during the cold war, there was friendship money. lives expected the human would improve dramatically. now, we do not have that agenda. we can go in and say, what will this do for nutrition and kids

to fully develop physically and mentally? so many have graduated from aid in mexico and brazil that we are now focusing on the tough cases. vaccines andt plants coming in with their is like mentality that mike and i have, every year, we will be smarter about how we do it. >> you have big problems and you say you sell them. does not mean you have 100% of them. we brought smoking down in a good part of this world dramatically. that will save an enormous amount of lives. there are places where the smoking industry will get for people who do not know it is bad for their health to increase smoking. should you walk away from it, not at all. .e worked to gather smoking will kill one billion

people this century. we made progress and you have to admit that and look at what works. if you are not willing to it knowledge that, you will not be able to go and help others. surprised you been about the turnaround on issues like smoking and obesity? marijuana and how rapidly people's perceptions have changed? >> we still have a long way to go. take a look of the companies like the tobacco companies, they target those who do not know and do not have the information or infrastructure or history or doctors who can give them advice as to how to extend their lives. so much of the tragedy in this world is self to death self- inflicted. there are wars and genocide -- genocide and starvation, but most people die before they should because of their own behavior and we have to work on educating them and giving them

tools and explaining and counteracting special interests and money, and doing things dangerous to themselves. >> what about cities and their role? >> federal government and state elements tend to move moneys around. cities are where you pick up the garbage and educate the kids and bring down crime and enact health measures you can see, what you can buy, where you can use it, and those kinds of things. most, take a look at climate change is all done at the city level. even in this country when we are fighting guns and obesity and trying to improve the school system and bring down crime, those are not down at the federal and state level. they are done at the city level. >> i always wanted to know this from you. both of you have a huge arsenal. how do you pick the causes you

get behind? >> the inequity is help or children do not get to grow up and achieve their potential. they die or do not get enough food that their brain develops. -- developed. money goes to that cause. there are things like new vaccine that will help those kids and avoid them getting sick. we are seeing the progress. five percent of kids died before the age of five. we can get that down. because it is injustice and a lot of these things were not being done at the level they should be, once you pick an area, you develop expertise and see people and that will be our lifeline. >> did someone trigger you to

think about the area, or was it something lifelong echo -- ifelong? >> maternal health, we have been doing a number of things under her guidance to try to advance the cause of getting the kids so they can get born and survived the first couple of days and the next five years. there are a lot of it ideas. you cannot do everything. you have to decide what you want do. they administer funds. in other cases, they give funds. we probably do more donating funds, but we have a big group working on public health issues. >> when you are mayor, you had you canmetrics by which measure your success. when you give money, how do you measure success. less you have to have patience.

number two, if you do something in the scientific world and it itns out to be a failure, was a success because you do not have to go down that path again. where i came from, it is all a waste of your money. that is not the case the way science works. knowing what you're doing and measuring it, there are a lot of to applyound trying metrics. in some cases you can in some cases you have to take on faith. i know this will help and i'm willing to make the that. that -- that that -- the baded -- the backed -- the bet.he ba