tv Bloomberg Surveillance Bloomberg April 22, 2015 6:00am-8:01am EDT
trail of america's flash crash of may 2010. it leads to a modest home in heathrow. and collecting the ever so rare, we consider these czar's faberge eggs. good morning, everybody. this is "bloomberg surveillance." it is wednesday, february 20 second. i'm tom. i've always, olivia sterns and brendan greeley. here is olivia. olivia: $45 billion mega merger with time warner cable. six u.s. senators, led by elizabeth warren, are asking regulators to stop the deal. a saving merger of the largest u.s. cable companies will mean fewer choices for american consumers. the justice department is urged for the deal to be blocked. and the so-called flash crash of 2010, it seems a smalltime british traitor now faces the
next tradition hearing after being arrested on tuesday. he is accused of helping cindy dow don jones us industrial average on a wild ride. he used an illegal technique known as spooking to fix prices. he is accused of manipulating markets over a four-year period and making $3 billion in profits. and the deadly attack in benghazi, libya may stretch into the 2016 election cycle. a spokesman now tells bloomberg news even if the probe were completed in 2015, the panel would need more time to analyze information and write a word. republicans have tried more than two years -- or have set for more than two years that clinton, who was secretary of state them, failed to bolster
security before the attack. democrats point out there have been several congressional inquiries. brendan: in baltimore, more protests over the death of a black man after he was arrested by police. freddy gray -- fereddie gray suffered a severed spinal cord injury. meanwhile, in tulsa, the volunteer sheriff deputy is off to the bahamas for vacation. robert bates has pleaded not guilty to a manslaughter charge because he shot eric harris with a handgun by mistake thinking it was a mistake. bates' lawyer says he is taking a previously planned vacation. in national arguing is trying to get a front of new technology, but it is not easy. the nhl playoffs have been using periscope and meerkat. now the league seven has to stop and violates the nhl broadcast rules. tom: this is people in the stands. brendan: people in the stands, reporters, fans. tom: reporters is different, but
people like me? brendan: here is the real kicker, tom, the nhl has its own periscope channel. olivia: say you're sitting next to the guy in the penalty and your streaming it live, you cannot. brendan: yes. tom: i cannot afford those seats. only a superstar like you gets to set next to the penalty box. olivia: tom, when was the last time you pay for your own hockey tickets? tom: oh! brendan: morning break -- stearns for the win. boeing and coca-cola -- tom: nobody cares. actually, they do. brendan: nobody breathing cares. at 7:58, earnings from mcdonald's. tom: three big blue chips the stocks. scarlet fu giving us wisdom through the day on bloomberg television on earnings. equities, bonds, currencies, commodities. i almost canceled this today. that is how dead it is out there. socgen knows this morning it is
quiet, quiet, we meandered down seven points. go onto the next screen. we will short because we do what we do here at "surveillance." there is the crude pair -- nymex crude in america $56.23. will we really get back below $40 a barrel? dollar canada doing well, $1.28 to $1.22. stronger loonie. we go big, we go wide we go transatlantic, brendan. the u.s. unemployment rate cyclical. the eu started in 1999. everybody is miserable and 2009 and i do not realize this, this device says it all. america getting it done right and explain to me why this sector in europe is so ugly. brendan: i have to say i am much more surprised by this distance right here. tom: a permanent distance. brendan: right.
and i'm sitting here trying to figure out what exactly drives it. i have never seen those two numbers graphed together. going back to the mid-1990's, it was different. we had a lower natural rate of unemployment. olivia: there is a higher average on employment rate in the eurozone. that is a given. this is a jobless recovery and that is why you're seeing such political opposition. and cutbacks on benefits. maybe spain has some fiscal reform, but unemployment is in double digits. tom: before we move on to peter cook, i want to say this is a little wonky. a lot of academics argue over which series is better for the institution for either way, it is a cool chart. did we do ok on that? olivia: i like it. brendan: you see the rare vision of tom being cowed after olivia -- tom: she crushed me.
peter cook pays to see the washington capitals win in overtime. the justice department will meet today with comcast, before he $5 billion meeting of time warner cable. there is a rumble that justice may block the merger. it is a big deal for the industry and our peter cook -- the backstory to me, peter cook is this behavioral remedies. what is the behavioral remedy and what are the comcast people going to do over lunch with justice? peter: if they really want to cut a deal, they should go to the catsps game tonight here in washington post of i'm not sure that will happen. they will meet at the justice department, tom, and it will be like a prize fight were the two sides are getting a measure of each other. the comcast/time warner folks are going to go there to listen to what the government's concerns are, and the government at the same time wants to hear what it is comcast might be willing to offer to try and
again addressed the concerns that this is anti-competitive, particularly in the broadband spaced. . so again it is a meeting that is important, and they will get a sense of where the other side stands. tom: well mr. roberts be at this meeting? peter: the excitation is that he will not be at this meeting, but it is not clear who exactly will show up. there will be members of the legal team including outside counsel for time warner and comcast, but i would not expect mr. roberts there. we will be looking to see who exactly shows up in whether or not we actually get a clean view of them entering the justice department is another question as well. olivia: peter, is a very exciting deal, there are plenty of secondary deals that may be contingent upon this. charter, comcast, what possible concessions might brian roberts actually make to satisfy regulators? peter: there is a list of possibilities, and none of them really all that palatable to comcast.
they like the deal on the table or else they would not have signed up but the big one up front is the sheer number of people that will have with the combined companies in terms of their broadband subscriptions. 57% of the country -- it is a big number in the eyes of the federal government. 29 percent of cable subscribers. it is less the cable, more the broadband. part of new york, los angeles chicago -- hard to imagine comcast would accept that. other aspects of this that they could again tweak as well could be some of the changes with regard to offering a standalone broadband cable option to americans. is that enough to satisfy the government? brendan: peter, there is a wrinkle in this that caught my eye, and it is a piece from paul sweeney basically pointing out the concentration is going to be much higher for one simple fact -- we have changed the way we define broadband. we now think of broadband, 25 megabits up and down as opposed to four, and that has complicated the intense action
to make this merger go through. peter: that is right this was a decision by the sec that came in january, edited change the playing field. it did not help time warner and comcast's case. that will be a factor normally the justice department's review but also in the fcc's as well, which is also ongoing. tom: there is another buzz going on today brendan: as well. -- today as well. brendan: peter, you're talking to paul ryan, there is an op-ed he wrote in the "wall street journal" about trade. he is on a sweetheart tour to talk about trade right now, is that right? peter: he is feeling good about chances for trade promotion authority in the trade deals to get through. this is someone who stood in opposition of the president, and whole host of issues part of this ticket back in 2012 now, this president and paul ryan are shoulder to shoulder on trade, and the president needspaul
ry paul ryan's help. things are looking good, but there are questions about whether or not there will be republican defections, and whether or not democrats will stand in the way of their own president. tom: peter cook, thank you so much. his conversation with paul ryan, we will look for that later today across bloomberg media and bloomberg television in the 8:00 hour. this is really fun -- joseph plumeri has a career of doing, not talking. the title is vice-chairman of first data's board of directors. that barely describes his career. we will talk about his new book "the power of being yourself," i will not give you the surprise -- just yet out there and do something. right now, joe on the future of his wall street. i remember you yelling and screaming about creating revenue -- is that a day from another
time and place, or can the new wall street be your wall street? joe: i think the old wall street is the same as the new wall street. i think it is different from the quantity of how we make money, but i think wall street's connection to society and what it does to society is the same. tom: one of the great conversations is can the guy from william and mary in history come out and is on the a finance, or do you have to because from imperial in london? can a guy like you still do it? joe: i think they can do it as long as they get from behind the computer and you go and engage in c people. tom: actually talked to people? it is a "surveillance" breaksclusive -- actually talk to people. olivia: how much different with your job he today because of new regulation? joe: i think it would be much more difficult because my ability to do things would to
promote the bank would be different, and athe spreads were different. we made a lot of money from just deposits. we had a spread by just a checking account, so i promoted checking accounts. the number of branches equaled the number of revenues we generated. today it is different because it is this much in terms of spread and you have to find other ways to make money -- tom: are there too many banks? joe: no i do not think there are too many banks. i think if the banks do what they did before, which is to take money, deposit money, lend money to people, give mortgages -- olivia: that is not profitable with rates like this. joe: no it is not profitable, but over time if you stay in it rates will rise and you will get back where you should be. tom: joe plumeri with us, "the power of being yourself," about the most overused question in the lexicon, "passion." olivia: with the justice marvin
tom: good morning, everyone. "bloomberg surveillance." i am tom keene. and olivia sterns with us today. brendan: on the bloomberg terminal, saudi arabia stopping airstrikes in yemen. he targeted attack targeted shiite rebels. they will now try to revive political talks. verizon's plan to break the bundle is meeting more resistance. fox force and nbc universal are
joining espn is a become a's smaller, pay for tv packages by late contracts. verizon says they think they are acting within their rights. companies like netflix draw viewers away from costly pay-tv bundles. and gem experts say it is "perfect." for $22 million, it should be. that is what an unnamed bidder pay for a 100 carat diamond. how do you even where that? good lord. olivia: you figure it out. [laughter] tom: this is fun. if you say the word plastics, you know what i'm talking about. that is the word dustin hoffman said in the classic film "the graduate," more accurate passionless. jobe plumeri carved a career
on wall street amid it to the clinical -- and made it to the pinnacle of wall street society. the trenton thunder hosts the new hampshire fisher cats. plumeri has written on our passionless society. chapter six, play in traffic, get out there and mix. i cannot do that. i'm on twitter and facebook. joe: i think that is the big problem. the society celebrates authenticity yet everything gets filtered through 183 billion e-mails per day, text -- people hide behind it, at the end of the day, you not know what is true or false because everything is being filtered. you do not want to be there when people are reading an e-mail, what people are reading a text and as a result, nobody is going out and engaging and we are losing a little bit of ourselves. tom: that speaks to davos and other meetings. there is no substitute. brendan: joe i do not mean to
call you old, but you have been out this for a while. what do you say to someone who is years old who only knows when things are bad? joe: the first thing you have to do is understand our cycles, that things go up and down. brendan: we can understand in an abstract way that cycles exist but if we only know the bad cycles. joe: i knew bad cycles when i was on wall street. i started in 1968, and it was not all straight up. i went through 1987 -- it was a different kind of a crash -- tom: yeah but 1974, 1975 was ugly. joe: i went through that. there are stages you go through, every generation goes through it like i did, but you have got to hang in there. i do not think people talk enough about doing that as people. get out and engage with people and talk about what you need to do to be able to survive. olivia: joe, the message to a lot of young people is actually "rein it in," be wary of your
facebook profile, do not post photos of the keg stands in acapulco? tom: did you see mine? brendan: tom does not do cakekeg stands. olivia: how to you be yourself and also guard your profile on social media? joe: that is the problem -- you are so disconnected to who you are. i got on wall street by mistake. i was going to law school, and i wanted to find a job with a wall street law firm, and i thought law firm has three names so i went to carter, berlin, and wyle. it turned out to be sandy wyle's firm. tom: every graduation speech says passion this, passion that. what is the plumeri distinction about passion versus the bladder we hear about it every may and june? joe: the difference between
passion and blather is if you do not have a purpose or emotion, which needs to be married or you do not get passion, and people forget the purpose in life. tom: you undersell yourself and the brainpower to do with it. joe plumeri with us. we will continue the discussion into e-mails, i promise we will talk minorly based off. in our next hour, abby joseph cohen senior investment strategist at goldman sachs, a lot to talk about including your disbelief in this bull market. this is "bloomberg surveillance." coast-to-coast, worldwide. stay with us. ♪
for the heathrow now. and now he is on the scotland yard beat, ryan chilcote a modest home. after the flash crash of may 2010, all fingers pointed to kansas city and mutual fund manager waddell read. now u.k. authorities look to one solitary trader. now, ryan, help me with this, this gentleman was unknown right? ryan: that is right. it is quite an extraordinary story. his name is navender saroa. he is 30 years old, he lived right under the flight path to heathrow airport his whole life and it is from right here that u.s. prosecutors say this day trader effectively almost single-handedly was a significant factor in that flash crash, the collapse of the market on may 6, 2010.
tom: what will be the drama today in court? does this guy come to the united states the? ryan: you know, that is what the united states wants. today is day one. he was arrested yesterday, he gets to the court, probably have to talk to his lawyers. the judge is likely to talk to the court that his lawyers are going to need time to prepare a defense. it has been a long time. clearly the prosecutors have had time to prepare their charges considering this happened in 2010 but there is a real human drama here. he lives with his parents. his parents have been in and out of the house today. they said they do not have anything to say about this. he is a good boy, all the neighbors say. really this point is coming down to that the british judge and how long he wants to give the defense a chance to respond to
this extradition request. tom: ryan chilcote, thank you so much, and on bloomberg television's of a we will follow the path to the westminster magistrate's court. brendan: the thing i'm trying to figure out is if this guy is a miscreant or a miscreant genius? olivia: out-swinger question of the day -- should the justice department prevent time warner cable and comcast from merging? we would love to hear your thoughts. please tweet us @bsurveillance. this is "bloomberg surveillance."] on tv and radio. we will be right back. ♪
tom: good morning, everyone. "bloomberg surveillance." a non-day in the market. it is comfortable to have that. what we do not have the fireworks in greece. let's get to our top headlines. olivia: the strategy for today's meeting with today's justice department -- comcast says the strategy for today's meeting with the justice department -- lawyers from a two companies plan to listen to officials and will not offer concessions until further down the road. the merger is urged to be blocked. six u.s. senators want the same thing, arguing that the deal
will provide fewer choices for consumers. and changing the narrative of what caused the so-called flash crash five years ago. a smalltime british trader has been arrested and accused of helping cindy dow on a 1008 wild ride. prosecutors say navinder sarao use artificial techniques known as spooking. he was as possible for one out of five sell orders during the frenzy. press users argue it was caused by a mutual fund company that caused billions of dollars in contract. and hillary clinton will not be able to put benghazi behind her in 2016. a republican-controlled committee investigating her response on the attack there and hope to have an end to the pro this year, but a spokesman says even if the probe is completed by 2015, the panel will need more time to write a report. at the time of the attack clinton was secretary of state.
they are trying to prove she failed to bolster security. democrats point out the republicans have now launched several inquiries into benghazi. seven to be exact. brendan: president obama is accusing fellow democrats of playing politics when it comes to trade deals. on msnbc, the president says democrats have been wrong and misleading in their criticism. the presidents of the new trade you was needed because american companies are being left behind. president obama: the status quo is not working for us. you think about japanese cars being driven here in the united states you go to tokyo, there is not an american car in sight. why would we want to keep that status quo as opposed to have a new deal in which japan has to open up its markets? brendan: some democrats say the new trade deal will hurt workers and depress wages and the only big companies in other countries would benefit. and authorities in kentucky say a big bourbon heist was an inside job -- thank you for giving me this brief.
nine people have been indicted in connection with stealing whiskey valued at around 100,000 dollars. it was 20-year-old pappy van winkle. tom: do you pick these news stories? brendan: no somebody picks them for me. bless you, whoever made this decision. tom: the bourbon that disappears in the greeley kitchen. brendan: i prefer to drink at the dining room table. tom: the dining room table. [laughs] that is very good. olivia: the u.k., the latest poll shows the two parties are tied. francine lacqua is our european editor at large and joins us from our bureau in london. what is going on here? the economy in britain is doing relatively very well if you look around the continent. why isn't david cameron, the incumbent, the torre, more popular?
francine: the million-dollar question, victoria. -- olivia. this economy is doing very well however, it is a problem of inequality, and that is why we are cb polls so that net. it is very clear at this right. it is unlikely we will get a clear majority and it is all about the deal. it is 16 days to the u.k. election, so i would be looking at the industries that have the most to lose or win, and i would put banks, insurance, and real estate on those. brendan: francine, there is a fine thing going on in the u.k. which i do not understand, you have a lot of regional parties making eyes at ed miliband and labor, and he is not yet saying yes, i want to join a coalition. when will that unrequited love turn into something? francine: "the unrequited love."
i like that, brendan. a lot of the parties you're talking about are considered white dangerous. for example, the national party is a separatist movement really, they're looking at devolution, so it is very dangerous for the labour party right now to say yes i am thinking of going on a date with you or possibly get married to you. [laughter] olivia: i love the metaphor. the big corporate story going out of u.k. today, for the americans who do not know, this is the third biggest retailer in the world behind walmart. shares are up? what is going on. francine: this is basically our walmart here in the u.k., as you were saying, olivia. they have been trying to regain customer confidence after a big accounting scandal last year. yes, we were expecting a big loss, and we have the biggest loss of any u.k. retailer, but when used week to or listen to what the ceo
has been saying, he does not have a strategy that gets him out of this mess.he wants to spin off stocks he seems to have a strategy, but there has been frustration and share pricing. olivia: i know tesco's model is every little helps, but it seems they will need a little help. gazprom being accused of antitrust. can you give us the latest? francine: i am actually passionate about the story because this is a story of geopolitics, not so much gazprom. europe takes so much of its gas from gazprom, but they have been waiting to basically investigate. they have an waiting to investigate on gazprom because of the standoff with ukraine. today, you can say they have the guts of actually telling gazprom you are raising prices, this is unfair, but it will pay off vladimir putin with the eu, the eu saying look, this is not a
political decision, we have taken this because we look at this the same way as if it were a european company for sub vladimir putin i answer seeing this in a very different light. olivia: i am sure indeed. and again this news coming from the european competition commissioner, who is having a very busy few weeks. francine, thank you. look forward to seeing you tomorrow. brendan: coming up hard-hitting investigative covers about bourbon heist. no, sadly that is not coming up, but what we will talk about is dropped in california and more broadly how that compares to who has got what water where. but water is important for making bourbon. that is what we will discuss today on "bloomberg surveillance ." ♪
tom: good morning, everyone. "bloomberg surveillance." time for a most refreshing single best chart. here is brendan. brendan: it is earth day today. president obama will be in the everglades talking about the cost of climate change in florida, but at the time of exceptional drought in brazil and california, water is the subject of our single best chart, freshwater specifically. abby joseph cohen will be on the next hour, of goldman sachs. she compiled this. freshwater distribution by company -- excuse me by country
per capita. we were stars when we looked at this yesterday. look how much farther ahead canada is than any other country. let's bring it up on the mac monitor here. if we divide this up by coffee fans, these are the canadiens ' water, if the policies of the future is the politics of water the countries are going to be powerful, but we have not yet really thought about it. brazil is having this drought. it is still -- because of the amazon rain forest -- a tremendous source of fresh water. look at here, all of middle eastern north africa is barely even a blip. tom: but can you move this water over to hear? brendan: you cannot. olivia: transferring water is totally cost effective. it is a problem of supply or demand? when you look at california, is it the issue that people are spending too much time in the shower or is it the weather and that the snowpack this year was not -- it was the lowest on record? brendan: the issue is demand,
but it is not about showers, it is about agriculture and water. when you look at brazil, it is refreshing, not to use tom's pumn the reason são paulo does not have water is not because of a lack of water but because of terrible management and corruption. these absolutes here are, as you point out, affected by distribution and not just supplied. tom: joe plumeri with us in support of his book, "the power of being yourself" and part of yourself is than micro economics will stop you have got to be aware of the system you are in. the water system is totally broken. pricing and water means nothing. joe: i lived in california and a 1970's. this is nothing new. for three years, we had to put a break in the toilet to make sure we conserve water. olivia: that is disgusting. brendan: the upper chamber, not the lower chamber, olivia. joe: it was so we would preserve water, and we would only take showers for a couple of minutes
because we do not have enough rain. you have got water all over -- i lived in san francisco -- tom: did you beat children to take long showers? olivia: it is not the kids summative the almond milk. joe: there is water all over san francisco bay. brendan: the economics of vaginal workout. i love that idea, too, but it is still way -- the economics of that do not work out. i love the idea, too but it is way too expensive. we have a single best chart about water use all over the world, and it is much, much lower in germany and the u.k., and that is not because they are better people than we are, it is because they get charged by the cubic meter for water, so they use less of it. this is tom's point about microeconomics. tom: ok, let's do photos. that was interesting. i would never guess i'll strung you have that much water. photos. olivia: one of my favorite
comedians, amy schumer. no, she did not fall, she pretended to trip in front of ki m and kanye on the red carpet but they were not amused and walked past her. both kim and kanye were named at the time 100 of course. tom: why did she -- i do not get it. olivia: it is a joke. brendan: because it is funny. and look at kanye, stone cold returning to the herd, leaving her to die on the savanna. olivia: because of the sense that they walk above the rest of the welcome of it will not stop and pick up amy schumer. brendan: the reason i love this gag is this is a completely arbitrary marketing strategy, "time 100." tom: norm pearlstein, the hand of norm pearlstein. olivia: it is a comedy, to fall
in front of cam and kanye. number two in new york, a quadruple rainbow was spotted in front of a train station. amanda curtis tweeted the photo. tom: the trenton thunder -- brendan: no we worked this out, tom, we looked through the geography of this, this is in glencoe cove looking north, i'm guessing, which means the pot of gold is in greenwich connecticut. it makes sense! tom: where was this again? olivia: in new york. brendan: it was taken from the glen cove rail stop. olivia: the number one foot of the day because you know i love weird animal photos -- tom: everyday we have to have a cute animal. brendan: aw. olivia: our number one photo of the day, a lamb was born with a new deformity developing a fifth leg. the good news is lamb is ok.
jake does not have usage of his fifth leg. he appears to be healthy and playful. tom: do they do surgery? olivia: good question. i do not know. it is adorable. still to come, faberge eggs. we will meet with the world expert. spoiler alert -- he is also the great, great-grandson of the austrian emperor. this is "bloomberg surveillance."" on bloomberg television, and also streaming on your tablet, your phone, and bloomberg.com. ♪ good morning. ♪
a russian banker tells bloomberg reports the country's debts are greatly exaggerated. they say they are turning the owner after sanctions and falling oil prices crushed the ruble. >> for the moment, oil prices and ruble rates will rise, it makes the situation much better. i am the one who was saying we do not have a crisis in russia. we probably have negative economic growth here, probably around 3% or 4%, but our forecast from the system, it is about 2.5%. brendan: the rebound of the ruble was the biggest currency rally this year. and amazon is closer to getting pro football as fans outside cheered. lawmakers ok'd a construction plan to help lure the raiders
from san diego. ellie has not had an nfl team in 20 years. those are your top headlines -- and delay has not had an nfl team in 20 years was up those your top headlines. -0-- l.a. has not had an nfl team in 20 years. those are your top headlines full stop tom:. tom: abby joseph cohen is coming up. and then the meetings about greece, and then banking, a huge theme at davos this year -- mobile cellphone banking. we will look at that in the hour this well, something americans are not know much about but they should be aware of, olivia. olivia: tom, amidst the fabulous wealth of the russians cz ars, there was perhaps no more prized possession than a faberge egg. if you want to get your hands on one, you have to pay up. one such egg the winter egg, was sold for $9.5 million.
it was first sold as other brands -- at sotheby's in 1949 for just $5,000. see why so much for joining us this morning. we will get to the jewelry which the house a faberge is now making today, but let's start with the eggs. you talk about alternative assets, if you actually want to invest in a fabergé egg, how difficult is it to buy one? guest: you can't. there are none available. olivia: victor vexlebourg and the kremlin have them all? guest: queen of england has three, princess of michael has one, there are about 13 and american museums full they do become available when the forbes magazine collection was sold to victor, we have some -- the
coach eg was estimated betweeng $18 million and $24 million. this was 2004. since then, the prices have gone up astronomically. olivia: what makes them so special? guest: they are unique, one of the kind. if you break them down intrinsically, they have no great value because the value of stones and gold used is minimal basically. brendan: i am still trying to figure out why we are so fascinated with these, and i am wondering is it because you had to have been a czar to create these? the amount of wealth and power you had to have to command something like this -- does it really exist anymore? mr. von habsburg: yes, of
course. czars were not the richest people in that time. there were oligarchs already. tom: i want to talk about a company you are involved isn, these beautiful eggs, the top story for our audience, i am constantly talking about mining and rubies, if i go to tiffany's at fifth avenue there are no rubies, yet you have rubies because you are careful where they come from. discussed that. von habsburg our: our parent company gem fields ownes the greatest gem mine in zambia, and in mozambique, it covers a vast territory, i think 33,000 hectares, the greatest source of rubies today as rubies in the far east are disappearing, so
this is a major source. we pride ourselves, the source of the rubies ethically. meaning there is no hanky-panky involved. tom: what do these run? how much is it going to set olivia sterns back for her egg? von habsburg: if we speak of the ruby egg, that is 28 thousand dollars, $30,000, for instance. it opens up, it is delightful. tom: and the $20,000 bill is inside. [laughter] olivia: the new russian money. tom: who is the comedian who fell down? amy schumer is the customer for this. olivia: who is the customer? von habsburg: all over the world. we have a bluetooth here boutique
here on madison. people walk in from the far east, the middle east. it is quite astonishing that people from the middle east actually are very keen on some of the eggs. tom: there are a good. i have never had to shift from faberge eggs to minor-league baseball, but i will do it right now. some people talk, and others do. you and your father did. trenton was flat on his back, and what did you do, start the minor league baseball team? joe: it was my father's love for trenton and revitalization of trent and i made him want to have a baseball team in trenton. my grandfather owned the trenton giants, willie mays played for them, and my father wanted to do something for trenton. it was not fashionable 21 years ago to do it. he got the freeholders to build stadium. he got a team, he did it by himself. at the end of the day, i joined them. trenton has now been rejuvenated because of minor-league baseball. there is an arena there. tom: the armand hammer arena.
' e -- volatility, the trail of the flash crash into an intently to a modest home near heathrow. good morning, everyone. this is "bloomberg surveillance" live from our world headquarters in new york this wednesday april 22. here is olivia. olivia: the meeting of the justice department may help save that billion dollars merger with time warner cable. according to the two companies the government will listen to concession, but not offer any deal. six u.s. senators are arguing that a merger between the two big cable companies will mean
fewer choices for american consumers. and a stunning development in the investigation of the so-called flash crash of 2010. if all time british trader faces in a tradition hearing this morning after being arrested -- a smalltime trader faces extradition this morning after being arrested. prosecutors said navinder singh sarao artificially moved prices. he is accused of manipulating markets over a four-year timeframe and making $40 million in profits. and republicans say they are not playing profit -- playing politics, but need more time to investigate hillary clinton's response in the deadly attack on the embassy in benghazi. the full report will not come out until 2016. republicans blamed democrats for dragging their feet. some democrats believe it is a
maneuver to hurt clinton's presidential chances. brendan: in baltimore, a man's death after arrest by police. freddie gray's spine was severely injured. meanwhile until sigma volunteer deputy who is accused -- meanwhile in tolls, a volunteer deputy who was accused of killing a black man is off to the bahamas on vacation. and the national hockey league is cracking down. reporters covering nhl playoffs have been using periscopes to stream live before and after the game. the league says it has to stop dreaming. it violates the nhl broadcast rules. besides now nhl has its own
bears go channel. tom: i'm speechless we are showing -- for those of you on bloomberg radio, we have the audacity to show the vancouver canucks. this is a major bloomberg radio issue. we've got to get capitals video. only capitals video in this hour. brendan: and the numbers will be watching today, earnings reports from boeing and coca-cola. at 7:58 a.m. eastern, earnings from mcdonald's. tom: it is right in the spirit of the economy to see what coke and mcdonald's are doing. futures are negative six. the euro 100 772. -- 1.0772.
between the transaction between time warner cable and comcast, the rumbling is that justice will speak. we have seen this with ibm, microsoft, and others over the years. what is different this time versus other big company mergers? peter: i think what is different is what is that take for the technology industry and the media industry as a whole. the government opposition at this point, we are told, is not based on the fact that these companies are inside competitive when it comes to their basic business of cable. they do not overlap that much. that would be new ground for the justice department. they stand in the way for other reasons. what they are worried about is broadband and the future and his company would have 57% of the broadband market. that is one reason we are being told the antitrust attorneys are prepared, all right list thinking about -- or are at
least thinking about recommending against it. olivia: what are the things they could offer yet out peter: the most obvious would be to scale back subscribers. could they give up geographic areas like new york, l.a. chicago? that would be a very tough pill for comcast to swallow -- swallow. that is one thing they could do. they could take more steps with regard to offering a freestanding broadband opportunity for americans. and could they do something on the column -- content side with regard to the nbc universal entities, the assets they have there. that would satisfy government that they do not have the kind
of dominance that others fear they do have. brendan: i'm thinking of the justice department before the fcc turned on the at&t mobile merger. is this a pattern? are they skeptical of mergers now? peter: many have been waiting to see how the obama administration would be treating antitrust. would this be a legacy issue? if they stand the way here, it could send a message not only to the media business, but companies written large. -- writ large. tom: your conversation with paul ryan this morning, what is your first question? peter: my first question is, how in the world that you get on the same page as barack obama on trade? they do not agree on much, but
they agree on this. we will talk to him about that and what could blow up trade promotion authority on capitol hill. tom: peter, thank you so much. let's move on to abby joseph cohen one. her piece is a stunner. abby joseph cohen recalibrate for the rest of the year for the equity markets. are you bullish or are raining -- or are you reading it in -- raining it in a little bit? abby: the resumption is that if the economy continues to grow, and we think it will and corporate profits continue to in greece -- increased, you could still see moderate gains in share prices at this level. is it moderate -- tom: is it
moderate times or passive investment? what a raging debate. abby: it is a raging debate. i think it will get resolved. towards active management. with all of the ats and indexes and approaches and so on, -- the etf's and indexes and approaches and so on, those with active management will be in position to take advantage of those. tom: with all of this distortion are refusing love of the market that everyone knew years ago that everyone was addicted you on friday night? are we losing that? abby: i think we are, but that is not as is nearly a that idea. many people thought they could do their own research and they were often not very good at it. what can certainly is that the professionals -- what concerns me is that the specials who are good at it are not being, shall we sake of rewarded properly in the marketplace.
-- shall we say, rewarded properly in the marketplace. i think there is a pent-up reserve for opportunities. olivia: speaking of valuation distortions, there's a pretty big one going on in negative yields. we had bill gross on yesterday and he said the opportunity, the trade of the century, is to short the boomed -- the bund. bill: 200 basis points lower in germany, what does that say echo is said u.s. treasury's are a -- what does that say echo it says u.s. treasury's are a will of a buy, or if you want to hedge, the best bet is to sell the bund as opposed to the treasury. olivia: abby, do you agree with that? abby: there was distortion in fixed income in general.
when you look at 10 year government bonds around the world, there is not a single one that offers good value right now. in some cases, the yields are negative. in other cases, they are very close to zero. when we try to do valuation on bonds the same way we do our own stocks, we cannot find any that offer value. what that means is that many investors are going for much lower quality fixed income securities. that is a bit worrisome. they are lower quality and there are risks of default and so on. olivia: or maybe at 1.9%, the u.s. 10 year is a whale of a bond. as to her twitter question of the day, should the justice department prevent time warner cable and comcast from merging? ♪
lenders lose money and that has always been the case. tom: i'm going to jump in and i know abby joseph cohen cannot comment on it. the derivative trading of years ago, somebody bought that step. we forget that the demand for that paper was outrageous. olivia: and all the people who value -- who bought that stuff valued greek debt. brendan: if you get a return on the debt that you buy, you are taking on some kind of risk. the german culture points to their own savings, and certainly they do save as a society. those savings go somewhere. it goes into their savings account and a lot of it went to greece. tom: it's a great article. what else did it say? olivia: that the greeks would actually repay and that greece has done nothing. tom: any thoughts on greece? at the: i think -- abby: i think
we have situation where the other members of the result concerned about what happens in unchartered territory -- of the eurozone are concerned about what happens in unchartered territory. and i think it is true that it is a mispricing of lower quality debt. and this is true not just in the sovereign bond market, but also some corporate. by the way, i have a favorite breed of the day as well. tom: please. abby: it has to do with the chinese in desperate need of protein. what we have to recognize on earth day that this is a litter issue. -- it is a water issue. olivia: the chinese are growing alfalfa in water starved areas and sending it to feed their cows. abby: that is right, the protein are -- is much more inefficient than are the grains. it is virtual water. but china is also importing from
us. keep in mind a couple of years ago, the chinese purchased smithfield which is the largest producer of cork in the united states -- pork in the united states. and most of the demand in china is for pork and chicken. brendan: i would say one of the best writers on this right now is one of a libya's morning must reads from a while ago, mark bittman stop -- olivia's morning must reads from a while ago, mark bittman. olivia: don't go away. ♪
tom: good morning, everyone. i'm tom keene. features at negative five. let's get to the top headlines. olivia: french officials are saying islamic extremists came close to attacking churchgoers. an algerian man was arrested sunday in paris. the french interior minister said a self-inflicted wound led to the suspect captured.
>> on sunday morning in paris in the 13th district, the police found in the vehicle and at the home of an individual with gunshot wounds and arsenal of weapons any nation, bulletproof jacket, and hardware showing without a doubt the suspect was planning an imminent attack against one or two churches. olivia: the man is also suspected in the death of a woman who was visiting paris. officials say there is no evidence linking him to terrorist groups. according to the "wall street journal" this morning, customers are expected to have to pay for a new google phone service today. it unveiled the new nexus phone. an unnamed bidder paid millions
for an uncut diamond. tom: i'm trying to think of the guy that missed in this process. abby joseph cohen has written a story -- a stunning report on stem on engineering and mathematics. and then we go through how to navigate through a correction. and mcdonald's, coca-cola, and ministry, -- the mystery of what mcdonald's does with its menu will be after the it :00 hour as well. brendan: the world bank has updated its massive report on financial inclusion, that is, the billions of people without bank accounts. this is huge. the number of people who now have a cap has jumped 22% since last report. one thing driving this is mobile payments. joining us is author leora
clapper. we have been used to writing about money as a kenya story. these are services that we were familiar with, but it has now moved on. tanzania, botswana. has this been adopted globally now gekko -- globally now? leora: you mentioned this database that influences how people save, make payments, borrow, manage risks. the number of banks that don't have dropped. it has been/from -- it has been cut from 2 billion to 1.5 billion worldwide. it matters. it affects how you pay rails, operate business, how you save. less than 2% of adults have a
mobile money account on your phone. in sub-saharan africa about 12% of adults are using it. in five countries in africa more people have an account on a number -- a mobile phone than with a bank or institution. brendan: do you worry about this? if you have this account, you are not just someone's banker -- someone's phone account, but their banker as well. leora: although there may not be a bank branch in your rural village, there's likely to be a local phone merchant. these are the mom-and-pop's we see in every village. they give them a place to save their money and a safe and easy way to make payments. tom: dr. clapper, gonzalez, the
trend is that developed nations have a lot to learn over struggles in banking in pakistan or kenya. what does this mean in america? leora: in the u.s., we are finding that people are harnessing the convenience of their mobile phones to make payments from their accounts. about one quarter of account holders in the u.s. report using an act, whether paypal or a big gap, to make payment -- or a bank app, to make payments to wait from their phone. brendan: are we seeing this replace more cultural forms of saving? leora: absolutely. previously, people were saving under their mattress or in some other unsafe way. increasingly, people are saving
with an institution. although there may not be a bank branch in the village, there may be a mom-and-pop merchant that is acting as an agent on behalf of the bank. for example, in africa i met a woman who saved in five of these communities and had rotating savings groups. they expect the poor to steal their money. rather than having it saved in their community, they are moving it to a safer place. brendan: this is a huge story, leora: klapper thank you for bringing it to us. abby joseph cohen this is beyond the horizon of what we can see from new york. abby: it is, and it says mobile technology has created in our mess technologies and opportunities beyond what we can think of.
the united states made in the -- bathe in the good sport of hockey. this is the bloomberg terminal. this is a cool chart. the idea that u.s. unemployment is cyclical, and up and down we go. and then something happens in 2009. we do better and europe does worse. abby joseph cohen, i spoke to you at reagan airport off the record and -- i spoke to jan off the record at the airport, but he has been positive as far as cyclical structures. can you say about -- the same about europe? abby: unfortunately, no. they have not recovered yet from the crisis of the recession, and then of course all of those underlying problems that preceded the crisis. the youth unemployment is not just double-digit, but above 20%. and think of this, the birth rate in most countries in europe
as well below. people are not even replacing the population. the nominal gdp number, we think, could be 1.5% in europe, but much of that is germany. if you take a look at some of the other nations, does not look nearly that good. tom: you are telling me germany had 0% nominal gdp? i'm trying to make news here. abby: i'm not going to make news on that particular thing. germany is doing well because of its strong export machine and what it depends on is its trade partners, including the u.s. tom: it is earnings time. olivia: 7:30 a.m. on the nose. coca-cola reporting shares at $.48, ahead of estimates at the two cents. it looks like a bit of a beat. we want to know what happened. tom: organic revenue of 8% which is actually pretty good number given where nominal gdp
is. olivia: let's go to our expert in our offices in new jersey. ken what is the back story and what is going on at coke? ken: good morning. it sounds like from you are saying that they beat their numbers and i think what all of the investors will be looking at is how solid volume it. the key market are europe and the u.s. obviously, but also china and brazil will be in focus. i think the company will have to convince investors today that the topline volume growth can be sustained at the 2% to 3% level at least. tom: what is it about coke zero g? brendan: i don't know. we drink water at the creamy house. ken, you just pointed out that they just made in a position of a chinese energy beverage
company. if coke managing this transition well? ken: hi, brendan. i think they are. i think it is a fair criticism to say maybe they are moving too slowly. but i think they are putting the strength of the dollar to work with this acquisition in china. but it will have to do more to drive the topline. coke is the for two -- the first to admit that if it is going to drive topline to growth 60% operating margins will not bring much more savings out of it. tom: you have any percent currency had when. -- 8% currency headwind. abby: like the new york city household, tapwater that is high-quality we love it. in china, more than half of the water is not safe. olivia: abby joseph cohen, one
of your charts this morning says that coke will buy back some shares. how is the composition in the stock market changing? abby: what we are seeing is because of active share repurchases, we are seeing shrinkage in numbers of shares. that is helpful for equity and so on what matters is whether we see some of that corporate cash being shifted into capital spending, research and develop and so on, because that is the best vote for competence in the future. tom: i want to remind everyone that making carbonated beverages is profitable. coca-cola brings $.19 to the bottom line, which is an extraordinary number. kenneth shea, they give very much. -- thank you very much. let's get a data check right now as our churning market futures are negative five. back and forth, looking for
greece news, maybe some central bank and american economic news as well. the euro in a bit of a bid this morning. and crude oil what a change. 56.12 per barrel. olivia: i'm olivia sterns and here with tom keene and brendan greeley. brendan: science, technology, engineering, and math represent 1.7 percent of jobs -- 7.1% of the jobs in the economy. abby joseph cohen brought this to our attention. we were surprised at how small this number is. why are we making noise about a? abby: because many of these jobs pay well, number one, but never to come out there can be considerable -- but number two there can be considerable growth. we need to prepare our young
people not just at the college level, but k-12. in the public school systems in the u.s. we are lagging behind. we often talk about literacy and we often need to talk about numeracy and scientific literacy. we are falling behind other countries in that regard. brendan: in your note to investors i saw the one dollar euro and ok ok, and then i hit on this. why is this in your investors notes? abby: because there is incredible divergence in how people in this country are doing. those that are doing ok have had median income rises. those with lower income households have really been hurt with the types of jobs -- the loss of the types of jobs that
do not have required skills. olivia: what is your opinion on what is causing this shift? at he: one is a shift in education. -- abby: one is a shift in education. we have quite a few jobs that do not pay quite so well. there has been lots of job creation in lower health care types of positions that do not pay well, for example. tom: i looked this week at whatever this common core colombians. there were two questions completely in greek. -- common core baloney. there were two questions completely in greek. are we going to fritter stand away s --tem away? abby: one of the reasons for common core, which was moved by
the federal government, was to encourage state and federal -- state and local governments to provide at least a baseline. brendan: it sounds like we are leaning toward a very uncomfortable political conclusion, which is the way to address this is to subsidize it across districts. abby: it is happening in this data of new jersey because of a court case for many years. one of the things we have to decide is what our priorities are. are we spending enough getting kids ready to even enter the k-12 programs? because there are so many kids who are already pretty far behind before they get into the kindergarten and first grade levels. brendan: this is the pre-k argument. i want to turn the corner on something else that caught my eye. we have been talking about investment in kids. you also talk in your note about investments that companies are making and that what they are focusing on right now is dividend and buybacks.
why did you choose to focus on that in your note? abby: we have been looking at this for several years because it is important for investors to know how that cash is. when cash was being -- how cash is being used. when cash was being used after the financial crisis for dividends and purchases, it was a way to give back to shareholders quickly. by the way, the government has also cut back very substantially in this regard. keep in mind that during the discussions on the fiscal crisis and second restriction and so on , among the areas of government spending that got walloped we are spending on nih and sciences. olivia: once the way to deal with this -- what is the way to deal with this? abby: the number one way is not to capacity, but where company say, i really do need to buy more women or build a new factory.
we have a little bit of a higher yield. it is "bloomberg surveillance." olivia, get us started in china. olivia: china has a 20 billion dollar problem. i cannot speak this morning. according to mckinsey and company, its debt load is according to 282% of the country's total economic output. this is one of the many topics betty liu will be talking about on the loop. fascinating talk about default. are you surprised that the chinese government let these companies default? that he: -- thatbetty: we are talking about a $10 trillion economy. what do they need to do? they need to overhaul their
finances and recapitalize their banks, but they also need to remove these guarantees that have been placed the year and he's on corporate harrowing. -- these implicit guarantees on corporate borrowing. allowing some of these companies like the power supply company in solar energy that made a lot of risky bets, allowing a state owned company like that to default is just part of the efforts to do leverage china. yesterday, we had a panel here on chinese business and some of the real estate delivers that were on the panel that i was moderating said, look, this is run-of-the-mill. they made some bad bets. the real estate developer was allowed to default because they made some bad bets. if this happened in the u.s., no one would be writing headlines about whether this is becoming lehman crisis in china.
olivia: at the -- abby joseph cohen, are you surprised the is this a seachange? abby: i think the syndication that they want more credibility and action by government officials and companies and so on. and we also need to be looking at what they allow to happen in the housing area where there has been a new gem out of borrowing -- a huge amount of borrowing by individuals and households well beyond their means in some cases and some of that money has gone to the equity markets as well. brendan: but isn't the lion share of the risk not only in the companies we are talking about, but the local entities can of the local governments that are indebted up to the hilt. is that the shoe waiting to drop? betty: it is somewhat. it's a great point, because while the beijing government is bent on deleveraging and reforming, local governments
around china are not exactly on the same page. how do they weigh those risks? how do they push that reform on the local front, and while at the same time maintain growth of about 7%? like i say, this is a country that has grown at 10% or more. a lot of risk to balance. tom: betty liu at 8:00 a.m. this morning. stay with us, abby joseph cohen went on the market. ♪
olivia: this is -- scarlet: this is bloomberg surveillance. we are waiting for mcdonald's to report in about 10 minutes. analysts are looking for a fifth straight quarter of falling earnings per share, and revenue is slated to come in below a billion dollars for the first time since 2010. is beef to the challenges that easterbrook and his team faces. first quarter comparable sales in the u.s. with europe, which gives you the scope of the challenges. in africa a 6.5% drop in
comparable sales in the first quarter. we know this is a company that has already cut it spending from $2.8 billion to $2 billion, the lowest capital budget in five years. steve easterbrook has his work cut out for him. tom: scarlet, thanks. looking back, i was taken aback by boeing's idea in the manufacture of 5000 airplanes. let's get to the top headline. brendan: death penalty opponents are demonstrating at the courthouse where jurors are deciding dzhokhar tsarnaev's fate. prosecutors claim he is not sorry for what he did. they showed jurors a picture of him defiantly making and it seemed just or while in jail. another partisan battle could be sparked in washington. michelle leonard step down after eight years as dea chief. she faced criticism over a
scandal involving agents and prostitutes. president obama named loretta lynch to succeed eric holder five months ago. she would be the first african-american woman in the top law enforcement job. as fans outside cheered lawmakers ok'd a city in construction plan. they hope to lure the oakland chargers to san diego. tom: let's look forward. what an interesting story. this is in london and west of london in near heathrow. a flash crash trader is under arrest and hoping not to come to the united states. ryan chilcote is on the story. mcdonald's estimates out here in a bid, as we said. and in washington, the ballet
today between the justice department and a listening comcast incorporated. that will be part of our 8:00 hour as well. it is without question the strangest and most unloved bull market of a lifetime. six years in and some are in cash and are worried and have downright fear. you must keep your eye on yellen. i loved your device to vice chair fisher and -- your advice to vice chair fisher and all that. are we out of control? abby: i think we are focused on the fed because they are the only game in town. fiscal policy has been broken really, for the last several years. and with the central bankers are doing has been critical not just for monetary policy, but for the
regulatory aspect of the financial system. tom: we just had interesting speeches that needed translation with greenspan. are you having an easier time with greenspan than now? abby: i'm a former fed economist, so i speak the language. tom: someone say that you are on the payroll of the fed. we get fan mail like that. abby: i'm not sure about that, but chair yellen has made a point of being transparent will stop basically, following the -- being transparent basically following the army method, i'm going to tell you what i'm going to tell you and then i'm going to tell you. in some cases, there is too much information when it is overanalyzed and misinterpreted. but in terms of what they are sending out, they are doing a good job. whether analysts are doing a good job interpreting is another question. brendan: i sent a reluctance on the part of investors listening
clearly to what she is saying clearly. she will say, i will make a decision when the time comes and they say, wait, when you see the word "decision p about we are -- "decision." we are probably all nostalgic about the greenspan era and interpreting. abby: i think we are spending an awful lot of time worrying about tiny changes and nuances. i believe this is a fad that is watching the data. they told us the next big change will be raising rates and they will tell us when they get to that point. they are not there yet. olivia: do you think the bull market has run i i do not. i think we will have moderately good profit growth this year and next, and even if the p/e ratio stays verdict, we could have -- olivia: when do we get another 10% injection? abby: i'm not a political
analyst. you never know. it could be an economic event or rather a gop -- geo profit event. investors should always be focused on intermediate to long-term economic growth and value. tom: we have to move on. quickly, it can percent correction is an opportunity event for abby joseph cohen, right? abby: that would be exact in the point, correct. tom: let's move on to analysis at hjc. how about the islanders last night, beating the capitals. for those of you on bloomberg radio, all you know is a team and white. the capitals beat washington in overtime. can they go all the way? abby: i believe so, because they are really playing as a team. the coach is great and the
goaltender is doing a wonderful job. tom: the goalie is critical. can he will -- go up against crist and do well -- lundquist and do well? abby: i think he can. he is doing a fabulous job. brendan: abby, i missed something, is this in your research note? [laughter] tom: we had quite a few twitter question that responses to the quidditch rested -- quite a few responses to the twitter question. olivia: i was surprised. here is the first answer. the second answer, if they can innovate more. brendan find this funny. third answer, yes, it would be like merging with darth vader and it would be bad for everybody. that is the tune that netflix is
singing, saying that it will give cable companies more power. brendan: i think there has been a real change in the way justice and the fac sees -- the sec sees these murders. visit -- these mergers. this is my dog whistle. for a long time, all of the cable companies and telecom companies said "we will do the following if you let us merge," and the deals went through. i think the justice department and the sec is taking a look back. what we are finding out is that they did not really in terms of investing in their own expansion and leaning more fiber down. in looking at the last 18 years of regulatory policy deal has not worked. tom: we have a new radio game of thrones. that would work out as well. my agenda, facebook this afternoon, 4:00 p.m. this will be most interesting.
it is a revenue juggernaut unlike twitter. it will be interesting to see the dynamics we see from facebook. olivia: in just minutes time, we will get first-quarter earnings results from mcdonald's. we are expecting them to come in at about $ 1.06 and we are looking to see what impact that will have on the bottom line. scarlet said earlier that europe is going to be the best market for mcdonald's. a lot of challenges for steve easterbrook. the last i heard they were rolling out sirloin burgers. tom: i think it will be most interesting the earnings and conference call and all of that. olivia: it is very competitive growth space. member, they also made a big push for -- remember, they also made a big push for the pumpkin spice latte. tom: abby joseph cohen, thank you so much. olivia: i know you have to get
to radio where you will continue bloomberg surveillance for radio. betty liu has an interview with paul ryan. you do not want to miss it. stay tuned for much more throughout the morning and continued earnings with scarlet fu. now for the breaking result from mcdonald's, let's get to scarlet fu. scarlet: the numbers just crossed. $5.96 billion, which is pretty much what analysts were looking for. they were anticipating $5.95 billion. the first quarter eps is $.84 and am not sure if that is comparing like with like because there are a lot of first quarter charges here, including the fx negative affect from the strong dollar and nine cents and charges at $.19. i'm not sure that clubbers -- covers as well. global numbers were a steeper decline than what analysts were looking for.
and mcdonald's also giving an indication at april sales methane they were expecting to be negative. first quarter comparable sales here in the u.s. down 2.6%, steeper than the decline analysts were looking for. they were looking for a drop of 2.1%. according to barclays mcdonald's faces a gap to his other quick serve restaurants in its field, widening in the u.s., and it failed to return to comparable numbers. i'd we are seeing negative numbers in europe as well, a drop of 610 of 1%, when it is estimated to be down to 10th of 1%. and in asia, a drop of 3.1%. sales were worse than what analysts have been looking for. $1.01 earnings-per-share versus a contested estimate of $1.06.
this is a disappointing earnings report certainly for the new ceo steve easterbrook, who just became ceo to set aside for what he plans in terms of turning around the company and creating some growth on the top line but some value for sure holders -- for shareholders. has met with analysts and is laying out that he is possible and open to different options but he hasn't committed to a strategy just yet. even the leverage is a possibility it is something they are not shying away from necessarily and they will not commit to any kind of strategy immediately which meets in the meantime mcdonald's needs to gear this gigantic ship around and turned the negative sub sales into something that stops falling and is something positive.