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tv   Lunch Money  Bloomberg  May 1, 2014 12:00pm-1:01pm EDT

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>> welcome. i'm adam johnson. look at today's menu. this is an exclusive look. nobody else has got this. out, she jumped in for maybe a bit on buying the basketball opportunity. win.musk scores a meanwhile, companies small to big confront the growth challenge for kids.
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we have a dish for you. as we been says of ice cream. that is all ahead on much money. -- on "lunch money." >> effective july 1, alan elected to retire. as president and ceo and member of our board. our board of directors met and elected mark to fill those same shoes. >> applause all around for employees. at the company for 25 years and is young for a ceo at a major carmaker. collects the first order of business is to have a great transition over the next couple of months. continues to stay relentlessly focused on our plan
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and bringing more great products and innovations were talk -- top quality. any not plan to make changes because it is the strongest team and we will continue to grow in the same direction, and it is very excitingexciting to grow a busid everyone is energized around that area -- that. >> he led ford through a tumultuous. -- tumultuous time. money-losing company and then he lost another $34 million. mulally eventually returned for
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profitability over the past five years. >> mark and this team have created this for that we know and love. profitability over the past five years. i am so confident in ford going forward, i will be there best cheerleader and i cannot wait to see profitable growth going forward. i think you know the story. qwest the ford chairman says there were always other people in the running. he spoke to us about the changes. qwest one of the things we have to do is a company is to always look around the globe and say where is the best talent. so we looked around the world and look that executives inside to outside but we came back the fact we thought mark was the best candidate. that is why i feel so good about this transition. better wee did, the
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felt about mark. qwest the defining moment, was oure a time we knew this is guy? there were so many stories about how well he did a mazda. there is a famous story of him catching on to alan's strategy in the is ms. planning for you. was very moment where you said ok, it is him. class there was never an ha ha moment. we started talking about on the first day i met alan eight years ago at my house, we talked about having a great transition but also a good management development process. there was not really an ha ha moment. for me, the job market in north america was really defining. that was a huge job and it started before alan got here. mark came up with a way forward plan. tooks a tough job and he
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slings and arrows internally and ask internally early on. he grew and persevered. by the end, he had gained admiration and respect of the men and women of ford around the world. that was very telling. a lot of people back then, if remember, they thought he would not stick it out. it was a tough job. they underestimated how much you loved the company and the industry and also have a fee is. -- tough he is. >> we're talking about yum! brands. the head of the taco bell chain will replace david at the end of the year. he will also join the board. stephen novak will become executive chairman. the changes will take effect january 1 in 2015.
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the own brand trying to regain momentum in china and reward customers at home. in addition to taco bell, the young brandt owns kfc pizza hut. we are going inside texaco. we will show you how they get flavor into the chest. an exclusive interview with the chairman and ceo and she will tell us what she thinks about investor plans to break up the company. president obama, insync fan? posted on his facebook timberlake.d justin it is a reference to his is.ear-old song .
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>> we're going inside pepsico today. we take you in behind the scenes's companies. nelson wants the company to spin off the investment business. they sat down with the pepsico an exclusiveis interview. class anytime a shareholder anybody has an idea. i personally on $20,000 in pepsico stock. we take it seriously and our board does. all that we have received, we studied care. a strategic advantage. we have always known it was a
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strategic advantage and we went back ends that he did and are even more convinced pepsico is about complementary products that work better together. the access, the importance of retailers placed on the pepsico partnership is spectacular. >> walk me through that. you are even more convinced this is the right strategy for pepsi go, what gives you the further indication? qwest person was buried. i was being invited to talk at top meetings for european retailers. it has never happened before, to the extent it was happening now. >> walk me through that. i am saying to myself, there must be a reason they are inviting me. it is because staff and we weres individually, maybe the 35th or 32nd player. we started to put the two together and talk about how to
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drive it jointly. class that elevated you. class totally. idea, beverages have turns about 80. they pay us net 30. look at us and see, you have high velocity categories that can drive traffic and you have consumer insights that allow me to bring people into the store. pepsico is a must partner with company. asking for more top to top joint business, they are seeking us so that they can truly drive ticket sizes, the only groll -- goal of retailers. if you are going to craft a snack and beverage or food in business, you would go to pepsico. what is the strategy for
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staying ahead of the competition, which keeps activist shareholders happy? question today's his world, research and development will define a successful company from a company that is not. what is different from today than 10 years ago, in the past, there were so many tailwinds in the category. flavor extensions and somehow managed to deliver the growth. in the last six or seven years with the slowing down of categories, with the internet pervading every country around the world and innovation flowing freely around the world, it is vertically important you spend enough money to develop a friend shaded products and differentiated platforms that could give you real increment tally in terms of volume and revenue and profit. class how different can you make snacks? talk about snacks and beverages. when we talk research and
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development, we talk across the food and beverage portfolio. with all of our products, we have to extensions, new flavors, new package format. that almost like we breathe every day, just to keep the core flat. to deliver the growth. we deliver somewhere between three to $4 billion in growth every year. in order to deliver the growth, we have to do a couple of things. we have to look at differentiated innovation. different shades of animation newd be new form functions, consumer needs we have not seen before. going after competitive products that really did not meet the consumer need. we look at each of these competitive spaces and we emanate against that differentiated products so consumers can come into our industries. class how to get those rods from a concept into your grocery cart?
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it all starts with flavor. the definition is literally the blending of culinary arts with technology. the chefs crafting the execution are briefed to mimic what is out there and then create ultimate upon their current -- culinary creativity. when those get evaluated, it is a cross functional team of marketing, our executives, and we will bring the consumers in and have them face what we identified as the gold standard. class explain exactly what gold tendered is. >> it is what you want the final execution to be. the final mass-produced product should match this flavor. this is a perfect transition to the cheesy garlic red. >> parmesan? >> this is all about layering flavor.
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mozzarella, cheddar, and smote guida. we have a raw garlic, sweet purée garlic, some black pepper in there, and that is the gold standard execution that became the final earrings for cheesy garlic red. >> one edition leaves your kitchen, what happens? >> scientist start working with their tools to re-create the experience. us andy come back to evaluate it as a group. >> how do you know if you have got it? >> you will find the flavors are identical but the experience and the emotions they evoke are also identical. we do not want to just sell you potato chips with seasoning on it. read different types of garlic and clutter different types of cheese. has the right element to give you a dynamic and multi-flavored experience but at the same time, let you feel like
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you are eating the comfort that is cheesy garlic bread. >> i will try the chip. very similar. >> i hope so. >> that looks really good. it is not just top chefs helping to make products. betty also visited the lab where they put athletes in there trying to make it read better. mission is to really help athletes customize their through research and education. with thelosely different parts, including product development. what we do here is really get the insights in the athlete to drive innovation and the future. fuel so we can put the fuel back into the body. >> keep it up. airnhaling and all the
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exhaling is all measured from that when you calculate how much oxygen being used. we can compare him to other athletes who do the same thing so we can see where he is. us estimate where he could get there. >> pushing rope. >> every athletes let's differently. we apply this to capture it. measureat practice, we weight again. during the practice, we measure the bottles and how much they drank. we put all the information together and we know exactly how replace.e know what to
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>> what does this measure? >> your ability to respond to the signal. >> do i dare try? 43205. 2528. >> what we do globally is very coordinated. all comesn we collect together in this central database. from there, we start to do the patternssee and trends we are seeing. we are listening to athletes and trying to understand what their needs are. we also have ideas and there are scientific insights that help us develop contacts. -- develop products.
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>> an interesting stat, has to go is actually the largest food and beverage company in the u.s. , russia, and the middle east. inside right here and bloomberg television and online as well as your mobile device. what do you wear when you go to the office? a el gives us his personal debt for how to pick your wardrobe. that is coming up. in sports, the latest in the l.a. clippers controversy. there is now a new celebrity interested who's potentially buying the team. ♪
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>> in sports, the clippers
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controversy. the next steps in removing donald sterling in the league area the meeting comes to doug's days after the commissioner and the l.a. clippers owner for life finest early $2.5 million for making those infamous racist comments. he urges them -- of high-profile people already voicing opinions, including oprah winfrey. the oracle ceo larry ellison and the former music executive. there is also a certainly night comedian trying to talk his way into the deal. qwest you probably heard a big rumor today, that a group of investors led by over enemy are planning to buy this. any information you see in the media is speculation and nothing more but i would like to set things over and i would be great team owners. how does the idea of a halftime bookclub get you? >> jimmy kimmel and opera, etc..
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they're not alone. there is a boxer. qwest yes, we want to buy the clippers. we would keep the clippers right where they are at. because when i am also not boxing, i am at the games all the time. i walk right over to the game, to the clicker -- clippers game and lakers game every day. to callyweather went on sterling a great guy, adding he was always letting him come to as many games as he wanted. , it is. let's remember not just the nba. the kings won the decisive game set last night after being down three games to nothing. who now join only three
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other teams in pro hockey and one in majorly based, which have loaned it to nothing lead in the playoffs. goinghere is where we are next. money making cupcakes. we will go inside one company whose ceo says his recipe for success was a lot of worrying. ♪ minutes asked the hour. bloomberg tv is on the market. i'm cristina alesci. let's get you caught up on where markets are trading. broad markets are fluctuating after the dow hit a record high yesterday and the s&p closed out april with a .6% gain over the month. eric consecutive monthly rise. it showed an unexpected rise in the amount americans who file for unemployment last week. a stronger than estimated growth
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in the industry over the last month yard a couple of individual stocks we are keeping an eye on. first, the pharma company planning to sleep ms. $100 billion bid according to people familiar with the matter. the deal would be more than $84 a share and would come as early as next week. ♪
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>> we are fully digital, online and apple tv. i am adam johnson. rain soaked u.s. east coast from maryland to florida. hundreds of flights canceled. the 10th radius they in history. instead of trying to put out the fire, officials decided to let dash on.e on my
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there were no reported injuries. investigators are being sent on the scene. the first day of the month is hastraditional holiday but -- thousands of protesters marched in favor of greater pay for women. theer also revived for first time since the fall of the soviet union. in world today, the spacex chairman wins temporary victory in its fight to stop rocket engines. a federal judge issued a temporary injunction in a short venture moving ahead in plans to move back o for the in march, this is where the u.s. was threatening sanctions against russia in the conflict against the ukraine. qwest and make sense to award russia right now with a multi-hundred million dollar for
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rocket engines. i can be completely inconsistent for policy. crazy for me. qwest this is just one argument russia used challenging that over the pentagon. venture isthe joint the only venture certified to operate within the program. you l.a. uses 81 rocket engines in its atlas five rocket. those are supplied by a russian company controlled by the deputy prime minister, who just happens to be on the u.s. sanctions list. we contracted -- contacted the air force for comment. you l.a. got that those with a name it saying, "you and it -- you l.a. strongly disagrees -- the u.s. in the meantime is warning of even more sanctions against russia. haveussian separatist
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expanded their takeover of government buildings. the u.s. and europe accused russia of stoking the turmoil, which just won an international approval for a 17 billion are alone. qwest we believe the ukraine has an opportunity to seize the moment, to break away from previous practices come both from a fiscal, a monetary, and from a governance point of view. qwest what is the next move in this global and diplomatic chess match we are witnessing? this is on surveillance. qwest logic tells us if russia actually crosses the border, all bets are off and we're talking economic warfare. class wanted with -- one institution told me there is 16 to 70% probability of further military action in the seven days. >> i will say if i had
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investments on russia, if i were companies, we. know the white house and state department are briefing bondholders. seems to be growing. a russian president vladimir putin today demanded ukraine .ith raw the military putin also called for a broad national dialogue about reforms to the ukraine constitution. the ceo of lenovo tells us what he struggles with your personal series, what i wear to work. it wants you to spend 20 bucks. break, thead to railway, has been completed running at an altitude of two miles and forge a 24 yards. -- tunnel will provide
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>> here is one company making your kid look cool. aviators for your baby. spend you get parents to $20 on a pair of kids sunglasses? the company's cofounder told us how. this week's small to big. ♪
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they are safe and silent -- and stylus sunglasses for kids. bend, twist, straighten, and returned to their natural shape their it we came up with the idea. and ie out on the runway notice all the adults had sunglasses on and the kids were squinting in the sun trying to see their moms and dads and the planes air. we watched these sitting in our respective tables. we surveyed our friends, who are parents. their biggest complaint is that they get lost. we started toying around and that is how we came up with the guarantee. we are the only random the world
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that does this. i get a lot of reactions like, how do you stay in business and how do you stay profitable? in the three years of selling these sunglasses, we have gone from one million to 2 million to $4 million in else. but thosehose people are the most in syria -- enthusiastic band. then he might have sold four or five more because of that one free pair. your debts about a year working into them, the first winter we have them, i lost -- my partners and i all realized we wanted to expand into different products. why not make a hat. all these things get lost and should be replaced for free and that is what we are doing. small to big will focus on tough martyr. course thatobstacle
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gets you messy. as for staying clean and looking sharp, andy lee dreamed of better fitting pants for guys so he started when oboes. in his own words, no more khaki diaper but but you can be the judge. it is our latest installment of what i wear to work." christ we cannot walk around naked. we have to wear clothes. i think our clothing is an expression of who we are to some extent. i am in the business of making men feel awesome about what they wear. historically, my style has been to overdo it a little bit. i had to physically restrain myself this morning to only wear a pink shirt and a crazy pair of sneakers. finding the right balance is key. that did not work on these shoes and i was not able to really it in. as long as i wear a little more formally up top, thomas of it would make for good balance. it is an open the question as to whether or not that was achieved.
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these genes. you want a clean pair that fits well and are dark. that is the staple of how i think about denim. boston and i found a vintage rolex. i was debating whether to get it and it was 1979, which happens to be the year i was born. probably my own confirmation bias but i went for it. a lot of how human beings operate is first impression until we get to know someone, we make judgments quickly. the way you carry yourself is important and the way you dress is important to. too.portant, >> we would hear from 16 candles ceo i what makes his better -- his frozen yogurt better. some things never go out of fashion. a little ice cream cake, anyone? ♪
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>> we will start with america's first retail ice cream franchise. it is turning 80. it is adding 20 stores and changing the look. qwest the biggest thing is the -- we do. and ice cream shops. way ofhave a different selling your ice cream. where do you do that? >> they are ideal for nontraditional locations. air force, travel used. you dealing with cultural change? what works for you in terms of moving culture? >> we have franchises in the
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system, 30-6 years. spent time out and with franchise partners. we have integrated that into the strategy. thexample is tom coined precious ice cream back in 1978. we brought that back as our advertising campaign. qwest you have 400. we also have internal national operations as well. qwest the biggest thing we're doing with streamlining. qwest we call it our core market. that is the new york area and surrounding states and southern florida, which is where we have a strong brand presence. go in these locations, they really work anywhere nationally.
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>> may be frozen yogurt is more your thing. you will love 16 candles, new york's first self-serve frozen yogurt place. qwest today, people are focused on finding something that is not but peopleernative, are a lot more concerned about what they're putting into their bodies. think that is why people are gravitating toward the frozen yogurt rocks. -- >> it really peaked and then dropped off. qwest at that point, it was alternative. qwest it was a non-ice cream. >> it was ice cream's stepbrother. >> 16 handles i thought was a liquor store. how did you come up with the name for the frozen yogurt chain? class i loved 31 flavors baskin-robbins. i understood the impact as a
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of numbers. one of my favorite movies as a child was "16 candles." >> there are sugared up and high calorie choices as well. >> frozen yogurt your way. our motto is to find your flavor. -- flaunt your flavor. >> pink berry, one of the --ginators of the trend >> 5-7 dollars, didn't that it is a book? >> she said it was $12 but it -- be
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outt may -- let's round here. this is courtesy of error london-based and edwards. she paid a visit to the hummingbird bakery. it is an old-school place. >> the 1950 american bacon -- cupcake hummingbirds to revive the love -- maybe not in this case anymore. >> there is virtually no baking at all in my own home growing up. it is not something my mother did. made brownies and cupcakes, with her friends. >> 10 years later, six in london . not the most rapid of expansions, but did he want to
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go any faster? faster, buted a lot i feel it really would have affected the quality of our product. we baked on site freshly every day. it does not take well to a very rapid expansion. qwest one-way hummingbird has branched out has been with cookery books. they sold 800,000 copies worldwide. is encouraging home baking good or bad for business he -- business? >> i love people who bacon home and some people who have never been to our shops have our book and bake our stuff and might make a specialty detour when they come to london. >> what worries a businessman like yourself? do you worry about anything to do with the business? >> read why begin? i have a whole list of worries to worry about. i do not know what is normal for my sector. tens ofve not taken
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thousands that we usually do, i will panic. but then i will hear from someone else and they will be like, that famous restaurant that everyone goes to take this much per week and i'm thinking, we take more than that your this is just cupcakes. everyone worries the customers are happy. isis that what your business about? worrying about things? >> yes for me. i am sure some people never worry about things but i'm glad i worry because i make sure i can at least solve any issue that happens. that brings us to today's mystery meat. how about a little bamboo to wash down the sugar? check this out. another day in the office. .his giant panda he has been working hard. he needs cap who -- he needs bamboo. ♪
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>> let's get you caught up on stocks and equities are mostly flat after the dow closed at a record high yesterday. the s&p is trading within 10
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points of a record closing high. the nasdaq is the biggest gainer in today's session. the nasdaq 100 index is climbing as internet stocks rally on earnings. bonds, treasuries gain on mixed economic data as investment -- investors look at investments. the tenure falls to a two-week low following reports manufacturing picked up in april. jobless claims climb to two a nine week high. the u.s. economic data is not the only thing moving up the markets. adam johnson has a look at the other big influence. he joins us now. as it turns out china may be having a much bigger impact on u.s. companies and you realize. time for a little insight and action. let's get the headlines over the past ever base or week or so that we have heard from companies. pepsi, china sales up double-digit. the u.s. declines. meanwhile, gm china sales rival
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u.s. sales and apple computer, we learned in their earnings report about two weeks ago, china sales are up 13% and natural that huge earnings beat that sent apple shares up about eight percent in the after hours that day. we spoke earlier today with martin sirrah, the man who founded the largest ad agency in the world. here is what he told us. look at to china for a lot of the technological developments. 73% of smartphone applications -- you can sell into china and can also back door your way into china. that is his point. what we decided to do was take all of this under consideration in figure out how to we quantify china exposure for u.s. investors. here is what we did. we start with the s&p 1500. 1500 stocks. we found 82 of the companies are them, itn china and of turns out 45 are expanding the
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businesses over the last couple of years in china. we narrowed the list further. 22 companies are expanding by at least 10% double-digit is in china. here are the top five. semiconductors. boeing by 54%. boeing gets 12% of its business out of china. alliance one, caricom, 22 names. i have posted all of them on twitter. go check it out. u.s. companies selling and growing in china. >> thank you. now we will want to highlight a couple of movers and today's session. first, international shares of the heart pump maker are surging by the most in the last six months. the company reported better than estimated first-quarter revenue. shares are up. the boston beer company shares are falling. the brand reported a 35% increase year-over-year net revenue. earnings per share missed
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analyst estimates by six cents. mastercard reported first-quarter earnings that beat analyst estimates on increased consumer spending. the second-biggest payment net worth admitted to having some challenges in russia and european payment industry regulation. cardompany said it step a in latin america, asia, and the u.s., we are on the markets again in 30 minutes. "bloomberg west" is up next. ♪
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>> live from pier three in san francisco, welcome to "bloomberg ." t-mobile adds more subscribers in the first order than verizon and at&t combined. i will speak with the ceo of the carrier about how his company made such a huge turnaround and whether a merger with sprint may be coming. facebook plans to buy oculus rift -- it may not become a reality anytime soon. a company out of maryland is now claiming rights to the virtual-reality headset paired we will dig into this brewing legal battle. there could be another


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