tv Lunch Money Bloomberg May 2, 2014 7:00pm-8:01pm EDT
>> welcome to "lunch money." i am adam johnson. steve wynn bets big on macao and talks trash about actors. in technology, conspiracy, the story silicon valley does not want you to hear. with today's investor adam warren buffett's big batch, we will introduce you to one of his biggest fans. hank azaria's love-hate relationship with social media.
let's kick it up with what everyone is talking about and what else could be -- on the first friday of the month? >> a big upside surprise, 288,000 jobs traded last month and the unemployment rate drops to 6.3%, the lowest since september of 2008. >> impressive, those are good numbers. the most new jobs added to payrolls since january of 2012. is that good news? >> the headline number is good but the details are not quite as good. that's why we see the markets back off a little bit from their initial excitement. it is a tale of two surveys. the establishment survey is very good, to went 80,000 jobs -- this is the weather, it's over and we are coming back on that but then you look at the household survey, it measures how many people were employed.
we lost jobs, 73,000 jobs in the household survey. which one is correct? 700,000 people or more leave the labor force which drives the on employment rate down. the discouraged workers would feel better about things. we did not see a rise in earnings. >> exactly right. there are hundreds of thousands of americans who are not eating counted. it is skewing the numbers. participation in the labor force is at the lowest level since 1978. the trend is not getting any better. >> apart from that, not only the headline numbers, how many jobs were created and the unemployment rate but importantly, the elements that speak to the most vulnerable segment of the population. if you look at long-term unemployment, that came down to under 3.5 million. we have not seen that level for a while. if you look at teenage unemployment, that came down to under 20%. it is good to see the strong headline numbers and good to see unemployment rate come down and it's even better to see the most
vulnerable segments of the population doing better. we need to do earnings and that's the next issue in this progression of healing. >> the lack of wage growth is part of the washington debate over potentially raising the minimum wage. >> if you look at the studies, it's hard to claim that a higher minimum wage will lower employment. what it will do is it will help on the consumption side because that segment of the population has the highest propensity to consume and will help on the inequality side. i think it would be a win-win -- for a vulnerable segment of the occupation and the economy as a whole. >> online job network -- link in sales is below animals estimates. -- analyst estimates for users are not signing up at the pace they used to pushing lincoln into its sixth straight quarter of decelerating growth.
how does linkedin make money anyway? >> how does linked in the work? the recent quarterly earnings topped $473 million up from $25 million five years ago. the 11-year-old company claims more than 300 million members worldwide and 1/3 of them are in the u.s.. it makes money in three different ways. jobseekers upgrade to premium subscriptions. unlike other social networks, people pay for special access. subscribers cough up $20-$50 per month to contact recruiters directly about job they are interested in and make sure there resumes rise to the top of pile. they see 44,000 job applications every day. this advantage may help candidates stand out. companies selling other companies and to users. the linkedin information allows for marketing campaigns. at cells brought in $326 million last year.
it accounted for more than 1/5 of their 2013 revenue. recruiters by access to member data and paying for their firm to get noticed. equipment professionals pay thousands of dollars each month to access the database. once upon a time, only job seekers posted resumes online. these days through linked in, top, that can access suitable candidates may not even be looking for a new job. this business area known as talent solution is the company's golden goose bringing in more than half of their revenue. it's no surprise that the company hopes to employ the rest of the 3 billion professionals to connect so they can be found online. >> in fairness, linkedin users is no small number, 300 million is about the population of united states print the warren buffett annual bash is kicking off this weekend and what we can expect to hear from the oracle out in omaha. casino mogul steve wynn and
george clooney, they got together over a bottle of vodka. another actor has a new gig, kevin spacey is in the trailer for the new "call of duty at advance warfare" game. >> we should be tolerant of those who worship a different god than us. a journalist should be able to disagree with the president. people need a leader who can give them both the score and the constraint to keep chaos at bay. >> you give them that and they will follow. and that's where i come in. ♪
>> angela merkel is in washington, d.c. to speak with president obama. they are coming out now to make a statement in the rose garden. let's listen in. >> the opportunity is so terrific that it makes other things look less than terrific. yes, it's true we are primarily a chinese company. that will probably look even more so as the third hotel is next 18mpleted in the months. there will come a time when the ratio of domestic to chinese earnings is even greater. >> do you worry you're going to saturate the market and a time
when the economy is slowing? last three or quattro years, our hotel, wynn and wynn macao have been .teadily increasing in earnings the seven expensive and well thought-out project. at market has been expanding a rate that has allowed the market to add supply because demand has exceeded it. everyone is experiencing growth year-over-year in spite of the that the amount of enterprise has increased. >> is the government easier to work with in macau? >> it is more predictable.
the federal government in united states is much more unpredictable and unfriendly to business than they are to china. , as counterintuitive as it may be, it is absolutely true. you can ask any american businessman that is in both places. his problems are not just about predictability but paying more to ensure employees. the affordable care act came into b one year ago with myldren up to 26 years old, insurance costs for nonunion employees increased 43%.
they will increase by another 43%. it is because the government has impetuously without thought and research plopped into this area of extremely technical information. everybody that is a healthcare provider, and i have been won, could be happy to explain how we lower healthcare costs and the government could be help full. none of it was ever asked for or given. instead begun 700 pages of the worst in the piece of legislation in my lifetime. he will still have to deal with the legislation. he has some very definite ideas
about who will be the next commander-in-chief. willthink hillary clinton run and she will be an interesting candidate. there are some republican governors who have done great. scott walker, chris christie, jeb bush. i think the republican governors have shown that you can take care of your citizens, be compassionate, be fairer to your state wiselyun the so that the future is not jeopardized or impaired. the great french political 1909 theer said around american system of democracy will prosper until that moment when the politicians discover that they can bribe the electorate with their own money.
it is a path to destruction. it will not help working people. it will not make for a better future. steve wynn violated that one with george clooney. there may have been some tequila involved, expletives exchanged. nn, wanted to tell us all about it. live in a and doctors very strange bubble of their own. ed, highlyollycoddl privileged like george, barbra streisand, successful performing artists live in a relatively small world. they are very solicitous and caring for them. that is, a worldview
therefore, everything should be given to everybody because everything has been given to them. , if youun a business are responsible for a lot of people, you come to grips with the reality that you have to have discipline. you have to protect the enterprise in order to protect the employees. therefore, you can not be wasteful. you cannot squander things or jeopardize other people. gives you abusiness sense of compassion defined in different terms. the real benefits, the real passion for the working people of america will only take place as long as america is healthy. healthy means we cannot oh $20
trillion because that will cause all the working people in america to suffer. is victim to crowd their own prejudice. being in vegas all my life, we know about the hollywood people and we love them anyway. george clooney is fun to be with. you just have to watch or timing. i did not call the president an [expletive]. he was a little into the tequila. he's fun to be with. he's a good storyteller. >> glad we cleared that up. there are t dub others who left struck. >> my job was to fly them to atlantic city and bring them night, deanunday
martin and frank sinatra. for three years, they were my guests and my stars in my 500-seat showroom cutting up and raising hell. >> would you say they are the t dub coolest guys you never met? >> yes. they were absolutely unbelievable together. they have noncompetitive personalities. a he's a tough talker with soft spot for the rat pack. it's understandable. tough talking of his own. look out, netflix.
don't leave a paper trail. some tech ceos are learning this lesson the hard way. is go for launch again. the private space exploration muskny founded by elon just released this view of the falcon 9 rocket. you see the landing legs remaining out at all times but they hope they will soon have a rocket launch where they are stowed for aerodynamics and reemerge when it's time to land. this thing is incredible. ♪
lunch money" on bloomberg television. we are streaming live on every device. im adam johnson. look at some of silicon valley's largest names and you will find the same themes. this is part of an alleged made 64,000hat programmers very angry it is the cover story of the latest edition of "bloomberg businessweek peer co--- businessweek." settingwere accused of up a series of bilateral agreements among the companies bowing not to recruit from each other's forces. this would have the effect of keeping these high-level employees and place in the
further effect would be to suppress the wages. if you don't have an offer from across the street, you cannot say, give me a race. click this is blatantly illegal. click david admitted that it's alegal but they agreed to settlement with the justice department that had its own investigation. >> inside competition. >> it is classic, improper antitrust behavior. that surfaced, you have the ceos of these companies kind of acknowledging, i know what we're doing isn't right so much just keep this between you and me. they were doing that in e-mail. as usual, that comes to the surface. >> anything you put in an e-mail could end up on the front page. intel ceo, hel of handshake noe a
recruit between eric schmidt and myself." it is startling just how blatant it is. speaks to the unique hubris of silicon valley. in a very short time, they have become billionaires and i think it's fair to say they don't think the ordinary rules, whether it is the rules of antitrust or financial gravity, applied to them. this is perhaps the best illustration we've had so far. they wouldwould say pay just to have the opportunity -- theart of the reason why very talented workforce puts up with that condition is because the jobs are so sought after. a lot of these people are making well into six figures. it's not like anyone year was having trouble putting dinner on the table but it does not mean they should be exploited. >> you can read the full story
>> this is "lunch money" on bloomberg television. we are fully mobile on apple tv, amazon fire. you name it and we are there. a sinkhole swallowed several cars in maryland. lucky for us, it was caught on camera. the heavy rains that drenched most of the country, it was about a block along and luckily no one was hurt. a roadblock outside the city moving across pro-russian militants. they have denied vladimir
putin's demands to pull back. this is the latest and largest attempt by ukraine to retake the ground from as many as 1000. in memphis, tennessee, they got a royal visit last night. they popped into one of the many barbecue joints. the 29-year-old recently broke up with his girlfriend and apparently he just needed to have a night on the town. we wish them well. we're looking at one of the biggest investors, warren buffett. berkshire hathaway is expanding agreeing to buy one of canada's largest transmission companies, $2.9 million in cash. this is coming just ahead of berkshire hathaway's annual meeting in omaha. he hinted there was something in the pipeline. this was a conversation with betty liu. >> we are working on some things. >> you said that last time. >> we are working on more things than last time.
but are not very huge, there's enough going on that i would hope, maybe one or two that would materialize. we will find out. already in omaha for the meeting and he spoke with betty about some of the things we can expect when mr. buffett talks the stage -- takes the stage. he will be answering questions in front of thousands for five hours. >> there are a lot of people who have looked to buffett as their moral compass for how ceos and investors should behave. a lot of people i've been speaking with here in omaha thinks that there are some real inconsistencies about what he has said and what happened with that. i expect he will try to address that very soon. wintergreenters, advisers, out with another statement this morning saying
they want coca-cola to change their equity plan. the other notable thing about the meeting this year is that buffett could not find a bear to sit on stage to ask him questions. wonder if that has been given any type of chatter so far in omaha. of a curiosity than anything. lots of the people who show up at this meeting are obviously shareholders and part of the debate. they really believe in berkshire and what they are doing. i mean, you can speak with some people and they say, why would anyone put themselves up to that challenge. the as a company where shares are close to hitting $21,000. there are a lot of things going right. they're havinged trouble to find someone to fill
the seat. clicks what happens if you are not a berkshire shareholder yet you ask to attend the annual meeting? you can actually get invited. i'm a resource specialist with los angeles unified school district. my name.le don't know they just call me gutsy. i love what they stand for. diversified companies they have invested in. i set a goal to become a shareholder by the time i was 40 years old. the morning,00 in i just decided i was going to write warren buffett and asked if he would ever admit non-shareholders to the meeting. i just thought at first, it was junk mail. i was screaming because i almost tore it in half. oh my god. this is it. then i opened it and he actually wrote me back almost immediately. he said to contact his
assistant, debbie. we were going to meet at a mutual lace. he comes over to me and i said, thank you so much for allowing me to be here. amazing experience. he said, i just hope you get what you are coming for. it's all about meeting great people just like yourself. he was paying me a complement. they were there from all of the subsidiaries that he owns. were and bill gates playing bridge. i call my stockbroker and said i need to become a shareholder. just buy me whatever i can right now until i get home. respectedde me feel like i was worthy to be there as
well as worthy to be acknowledged and educated. to me, that is just awesome. buffett has a lot of fans. you can hear the story of ryan morris and how buffett changed his life. you can check it out on any of our mobile apps. embracing newboth media and holding onto the old. a love-hatezaria as relationship with social media. that's next. ♪
comcast-time warner. clicks we have long-term deals with both and we expect to be in business with them. our job is to create packages with great value. >> could you see yourself doing some sort of deal with aereo? >> i don't think so. what netflixook at has done from an outsider perspective, what do you think? ande have a better product it is our job to tell the story that it makes the best possible .ay they built the product on the infrastructure that the issue bidders built in the content that they created. more and more subscribers are offering for it net delivered video and basically cord
cutting. there's a lot of value in the bundle. they choose it is the first option for entertainment. behink it will continue to 100 million people and we think it is the best option for us. >> they are charging you more and more. live sports are more valuable and we negotiate to pay fair and so far that has worked very well for us. when you think about how high it is right now, do you start to others and say, something has to give here? >> we don't think of it in those terms.
what we can afford to pay, how and we just sort of don't think of it. i don't like to think about the word bubble. >> how do you protect your turf? digital, social, things are changing. we protect turf by creating the best possible product we can. we want to be indispensable to them. we protect it by having the national college football -- layoffs. we want to make sure that our fans can watch on every device. hulu said they now have 6 million users up from 4 million
last year. the company made the announcement that the upfront presentation to advertisers. >> calling the event and upfront is really all about the tactic. we are competing for television dollars. content from providers and make great originals. we are conventional longform television competing with .elevision we go and take marketing dollars. zaria is embracing it and we caught up with him in new york. >> it's changing every day and it's turned the television business on its ear.
i know that on the one hand, it's created many more for my series, for example. i had an idea and i found an outlet. it's harder and harder not to monetize all about and how we will get paid as a result. it's a brave new world. it will all work out. i'm sure it will be interesting. >> promotion, fatherhood, i know it plays a big role. >> i just turned 50. somebody tell me. then a young person comes and they say it's like this.
i love the internet. big sports fan. i love the access to any possible thing to keep track of, but as far as all social media -- of the impact of the donald sterling thing, everybody knew about it. azaria was at a charity event for the fifth annual impact awards. determined to succeed, a foundation he cofounded to help low income middle school students with education. 6, 7,g a rubik's cube in 8, 9 seconds one handed. i don't know how he doesn't.
>> this is "lunch money" on bloomberg television and every device imaginable. 40 years for the best-selling puzzle toy, rubik's cube. new jersey liberty science center is throwing a little ,arty, a $5 million party showcasing its appeal and the skill needed to actually solve it. foxe's the ceo with pimm with one of the fastest. >> i actually learned the secret six years ago. it was based on a youtube video
and at that point i kept practicing and now six years later i can solve in about eight seconds on average. >> >> i can do it faster. >> he is smarter. what has it meant to you in your life? but at dates me scientific editor, i worked at the first cover story where it appeared on the magazine and it's amazing. robotics.pired early on, they wanted robots to solve the cube but they needed to solve computer vision programs and manual dexterity. it solves it and then it does a victory dance. it's cool. like the celebration. for example, you are able to solve this in under eight
seconds. i fastest time in competition is six point 93 seconds, the north american record. >> is there a future for a speed rubik's cuber? what happens with this talent typically? thee tend to stick to competitions. r and residents. it's a great career opportunity. >> you can guide people and show them how to improve their ability. >> the exhibition is fantastic. i will be there engaging guests and i can give people tips on how to solve it. >> while they were talking, he solved it in like 10 seconds while answering questions. how did he do that? >> there are three quick things
unemployment data, there were reservations about some portions includingort stagnated wages. they did not want to be long going into the weekend given the still delicate situation in ukraine. deepest for the dow jones industrial average ending the day down 0.25%. loop,"rning on "in the asking why the market did not have a bigger reaction to >> thisjobs report area may have an impact on the fed. that is what the market is worried about. fed support might not be there. if all you thought is that they were just pursuing one objective of the dual mandate, unemployment, with an unemployment rate of 6.3%, you
get worried that they start tightening. the fed is pursuing to dub object gives -- is pursuing two objectives. click now it is time for adam johnson's insight and action. and we are following the money. the fed may be tapering the bond buying program but not the rest of america. time for a little insight and action. we are talking about corporate qe. they joined us talking about it earlier this week, distributing cash during buyback and dividend seo can support stock and asset prices. case, it is corporate america trying to inflate stock prices. you're also substituting away
thatinvestment but the way the fed might be crowding out some investments. this is still going strong. what we decided to do was look at companies that are engaging .n this corporate qe if it's working and it has, it will continue. dividend yield of at least 2%, dividend growth of at least 15%, and buybacks announced in the last year. these are all forms of corporate prices.g to push up apple, international paper, lockheed martin, starwood hotels. and they are names up over 23% over the past year versus the s&p 500 up about 17%. --it's working. >> let's look at bonds.
we did not see a big movement in treasuries. we did see a little bit of buying and treasuries towards the end of the session with the .ield falling to 2.59% in the commodity market, a down week for oil but it looks like it ended the week higher. there had been an expansion and supplies. julien the markets," i'm hyman. ♪