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tv   Bloomberg Surveillance  Bloomberg  March 10, 2015 6:00am-8:01am EDT

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" remedial civics lesson." american brady dugan exits and will be replaced by tidjane thiam of ivory coast. good morning, everyone. this is bloomberg "surveillance," live from new york. i'm tom keene. joining me olivia sterns. brendan greeley on hiatus. olivia: and administration exposed when accused gop lawmakers are trying to establish a back channel with iran to scuttle the nuclear talks. president obama said the republican move will not stop negotiations. >> i think it is somewhat ironic to see some members of congress wanting to make and cause with
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the hardliners of iran. it is an unusual coalition. olivia: vice president joe biden called the letter beneath the dignity of the senate and sends a signal that the president cannot deliver on americans' commitment. oil shares up 9% after a shakeup of the top -- at the top of bank american. brady dugan will be replaced by prudential's tidjane thiam. he is one of the few leaders of a global banks to have survived the financial crisis and the many scandals that followed. brady dougan -- european finance ministers are warning that time is once again running out for greece. they want the greeks to open their books and follow through with their pledges to reform the economy. greece is in danger of running out of cash this month.
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the leaders do not want to give greeks more money unless they deliver on promises made two weeks ago. apple bets their first new gadget in five years will get customers rushing to stores. they finally released full details for its new apple watch. it offers health and fitness apps, e-mail, plus -- plus a bunch of other things. tim cook says it can even receive phone calls. it will cost anywhere from $249 for a basic version, to over $1000 for a high-end model. tom: anybody there? olivia: the u.s. ambassador to south korea has left the hospital. five days after he was slashed in the face by a north korean sympathizer, r clippard told -- mark lippert needed 80 stitches to close the wound in his face.
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he needs rehab work on his hand. one of the creative forces behind "the simpsons" has died. sam simon helps turn it into a hit and walked away after the fourth season. he said his arrangement with the show paid him tens of millions of dollars a year long after he left he spent the rest of his life giving that money away. he set up a foundation to train dogs to help disabled veterans. he was 59 years old. tom: ambassador lippert, we spoke with joseph knight of harvard. he has is distinguished academic career. this is one of our frontline diplomats who was grievously injured. olivia: a terrifying thing that happens to him getting slashed in the face by that north korean dissident. tom: with a track record. there it is. ambassador lippert with hand surgery. let's do a data check. markets are really on the move this morning.
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futures have deteriorated, negative seven down to -11. the euro is the story. for an exchange at 107 .48 on continued weakness in euro in yen. a fragile 49.55. lots of people writing up oil prices. there was a 130 handle on euro-yen now 130 .1. gold crushed three days in a row. we are $10 away from key support on gold. many gold types suggesting 900 is the next level to give you the fragility on gold. let's go to the bloomberg terminal. this charge -- it is not a chart. it is fancy. olivia: this is more like a
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lated's magic carpet. tom: this about the bet on the future of the euro. you have a modest smirk here. a bet on the euro right now, weaker. here is the weaker -- the weakness in the euro, the red part. it is a massive one way bet. olivia: it is. the euro obviously trading at the weakest level against the dollar in 11 years. good news for our summer vacations but this is a story more and more of dollar strength rather than weakness around the world. tom: one of our themes on "bloomberg surveillance" this morning. the headlines again within the litmus paper of the system, the foreign exchange market in a surging u.s. dollar, and our guest this morning -- previous guest -- let's call it the jack
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lew dollar. how does it play into equity earnings and revenues? monica descends oh is head of -- monica descends oh -- monica, let me to be in with you. you have written about this. if i have equities in my retirement plan and i know these are multinationals that i own how are they affected by dollar strength? >> the impact with a drag on revenues. longer-term, i don't think you want to drastically change the way you are positioned, but over the next two -- over the next 12 to 24 months, there will be -- >> did you ever learn about currency hedging yak of i think i flunked that three times. are these companies hedged? is coca-cola hedged? is mcdonald's? >> apple in particular seems to be doing --
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many do it will be varied by company. you can read the filings and the commentary on -- tom: i agree. it is sort of opaque. depending on your met -- monica: depending on the manufacturer, it will be a drag. it is the long-term story that is very much intact. olivia: a huge run-up in the 10 year, the strongest five-week move in over 10 years on the u.s. 10-year yield. lisa, what is the strength of the u.s. dollar doing in the treasury market? lisa: why is the u.s. dollar strengthening? it is because of the weakening of currencies elsewhere. the hike rates would in turn lead to higher treasury yields. that said, because the dollar is strengthening so much, it is attracting investors from europe to come into the u.s. to capture the higher yields and the growth stories that is keeping a lid on
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-- tom: are we having a bond tantrum right now? are we in a mini tantrum? lisa: to the extent that there is a selloff in yields? analysts are seeing the treasury yields will be end-of-year higher than they are now. there are a lot of people saying that is just not true, there is no way that could happen given the negative yield environment. tom: this is the arch debate right now, the idea that yields are going to go higher. olivia: also the fed -- have they lost control of the treasury market? there is a wall of money coming in from europe. monica: that is what is happening. what if the fed hikes rates and yields stay where they are or go lower? the president's pressure of money coming in overseas. tom: let's move to the credits we story.
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the changing of the guard after perceived underperformance. mr. dougan is out, mr. thiam is in. hans nichols, i do not want to spend more on the post mortal of -- the postmortem of mr. dougan. hans co. he survived a lot of the worst of it, right yak of the big calls for him were to step down in 2013, 2014. this is not about the litigation exposure, which is real, it is about the strategy of credit squeeze. are they going to continue to try to make money in debt? tom: is this a board action? mr. ciampa is known for -- this guy lights up insurance businesses. is that the mandate from the board? hans: it is a light of -- is it
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lighting up better stock returns? i would imagine. tidjane thiam has spent a lot of time there. it really gets down to what is credit suisse going to do? are they going to be a bank to private wealthy investors and private individuals, kind of like the track ubs has taken, or will they -- brady dougan split the difference and has pared back some of the debt trading, but not all the way. it is a strategy question that may be for the board, for the new ceo, but they need to make a decision on which direction they will head. olivia: that would be my second question. tidjane thiam has risk management in his dna. the question is whether or not credit suisse will follow the model of ubs and get out of the risk your trading businesses and pursuit more of his wealthy client businesses. hans: that is the long-term strategy of ubs. you have seen most of the major european banks do that.
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deutsche bank is an outlier. they are waiting for fixed incomes and commodities to come back. if it does, their theory of the cases they will be in a strong position. their theory -- their theory of the case is that they will be in a strong position. the ones that have recalibrated have seen an uptick. at least short-term, it does not appear their strategy is working. tom: hans nichols, thank you so much. monica, the basic idea of management change within the financial sector -- how do you handle that as a strategist or as a research analyst? monica : you look at who is coming in, who is going out, and look at the strategy from there. tom: he has a sterling track record, out of mckenzie -- monica: he is a well-respected ceo. my question for you, you are overweight on financials.
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brady dougan did not know how much capital he had to raise and the regulators were changing the rules on him so quickly. what makes you want to bet on banks? monica: look at how the stocks are reacting today. they are excited for something different, and we see that a lot across the board. financials are a sector that remain very unloved. when i talk about clients investors, i see people underweight. what happens remains to be seen. they could raise rates by the end of the year. tom: we will touch on that in a bit. olivia? olivia: coming up, apple has just unveiled its first entirely new product since the ipad. that brings us to our twitter question of the day -- will
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you buy an apple watch? tom keene will buy that $17,000 gold one. tom: can i get a chicken parm? please. ♪
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tom: good morning, everyone. it is a dollars story, dollar strength, and we have major yen week this, now 121.88. let's get to our top headlines. here is olivia sterns. olivia: we begin the latest -- we can begin the latest on the nuclear talks with iran. president obama is sharply criticizing republican leaders for sending a letter to iran's leadership. the president accused the gop of
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making common cause with iran's hardliners. joe biden said the letter is beneath the dignity of the senate. shares of credit suisse are up 7% in european trading right now following an executive shakeup. brady dougan will leave at the end of june and be replaced by prudential's tidjane thiam. he has spent the last decade running insurance businesses in the u.k. also, never before seen video of the 2013 boston marathon bombing has been shown to jurors. it shows dzhokhar tsarnaev and his brother before and after the explosions at the race finish line. the fbi compiled it with surveillance video from nearby stores. more fallout from the skating justice department report on ferguson, missouri. the report said lax in ferguson are unfairly treated by the city possibly -- said blacks in
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ferguson are unfairly treated by the city's police force. fellow democrats are urging hillary clinton to speak out, and they are willing to predict she will. a person familiar with the matter says she might hold a news conference within days. working is cutting sodas from kids meals. instead of soft drinks, kids meals will include apple juice milk, or low-fat chocolate milk. tom is devastated. tom: i think the size thing is dead on. give them 16 ounces, 32 ounces? you are kidding. olivia: that is kind of the idea. tom: thank you. olivia: the clock is ticking until april 24 when apple starts shipping its new apple watch. tim cook so far analyst
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reaction has been mixed. >> at the most basic level, it takes for an out of how you use your phone. a typical teenager gets about 6000 text messages per month. checking this text messages or receiving a phone call or using your phone for payments having it on your wrist. the same reason why the pocket watch was displaced by the wristwatch. olivia: brian white at canter says it will go down as the best-selling new product category in apple's history. what is the real value to apple? what you have to keep in mind is the enormous scale of apple. sherri scribner at deutsche bank saying it will come in at $17.6 million. even if it adds 4% to earnings, a lot of people thinks that is already built into the price.
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tom: let's go around the table. lisa abramowicz are you getting an apple watch? lisa: i had a flip phone up until about 10 years ago. tom: will jamie dimon buy you one? monica co. i cannot think -- i cannot say whether he would buy me one. a little bit tricky to your point at these levels. i certainly think it makes a story more compelling. a phone to a laptop to a new advice -- a new device. tom: i go back to the ipod which i was totally wrong on. i cannot convey to you how wrong i was about the ipod. what did you learn in your research about what monica said? she doesn't wear a watch.
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lisa: many are excited about the apple watch in the future of digital watches because it will get people putting something back on their wrists but it is the convenience of it. it is taking the friction out of it. it is something you heard from "the financial times" about the benefits of it. think about how often you take your phone out of your pocket. i heard jean munster also say that teenagers spend -- send about 6000 text messages back and forth every month. lisa: do they have $17,000 to spend on it? olivia: this is a nice continuation to our twitter question of the day. will you buy the apple watch? will you pay $10,000 for the gold what? please tweet us @bsurveillance. we are streaming on your tablet, your phone, and bloomberg.com. ♪
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tom: good morning, everyone. "bloomberg surveillance." dow futures are now -119. -- -1.19. ugly in terms of dollar strength. the euro, news out of greece as well, 107.52. morning must read -- a smart note on the shortage of pilots. this is not just the u.s., but asia as well. last year boeing estimated between 2014 and 20 or so years out, the asia-pacific region will need 216,000 new pilots. the region is capable of training only 5000 year. western manufacturers need to offer their support.
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this is where a movable object overcomes all events. monica, you have seen this with your work at jpmorgan. private bank, we can be as cute as we want, but there are these foundational forces that change the dialogue. monica: that is very true. with oil prices falling from an investment standpoint. tom: you remember when airlines were cyclical and you stayed out of the way of them. can you say that the cash flows are more of a normal stock? monica: when you look at the church rectory in and a couple of years, it certainly looks positive from a capacity standpoint. u.s. airlines -- add that to the fact that input costs are down drastically, down a third. you cannot discount that. tom: we go to olivia sterns.
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where are you going this weekend? olivia: i'm going to jackson hole in two weeks. a lot of schools are in the west. it costs 75 pounds to 100,000 pounds. no way a pilot from thailand can afford it. tom: how come i cannot -- olivia: coming up next, stock versus bonds. we will discuss where investors should be looking. this is "bloomberg surveillance ." back in just a moment. ♪
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tom: good morning, everyone. "bloomberg surveillance." markets are on the move right now. futures -15, dow futures -121. a lot of action with a stronger dollar. let's go to top headlines. olivia: the white house is calling out republican centers -- republican senators, who sent a letter to iranian leaders. president obama says the republican move will not stop negotiations. >> it is ironic to see some members of congress wanting to make common cause with the hardliners in iran. it is an unusual coalition.
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i think we will focus on actually seeing whether we can get a deal or not. once we do, then we -- if we do we will make the case to the american people. olivia: 47 republican senators signed that letter to iran. a shakeup i credit squeeze. shares rose as much as 9% in early trading after news that brady dugan, the ceo, will leave. he will be replaced by prudential's tidjane thiam, who spent the last decade running insurance companies. profits have suffered accredits wiese's private -- at credit suisse's private banking business. and pressure ungreased today telling them they need to open their -- and pressure on greece today. european lenders may not come through with more aid, and the greeks could run out of cash soon.
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time is running out. >> we agreed today that there is no further time for discussions between the greek authorities and the institution must and will start as of wednesday, the day after tomorrow. with a few to achieve a speedy conclusion. olivia: france plus finance minister says it greece wants more money, it needs to come out with its budget deal and a better picture of the country's financial situation. the university of oklahoma has shut down a fraternity after members were caught on video making a racist chant. oklahoma possible players decided to protest rather than practice, and the coach joined them. we are spending more money on prescription drugs. u.s. drug spending grew last year the fastest taste -- u.s. drug spending grew last year at the fastest pace.
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americans spent 21% more on cancer drugs, and the cost of hepatitis see treatments sword. -- starting at 4:00 p.m. eastern time nfl teams are allowed to sign free-agent and make trades. one of the free agents expected to draw a lot of interest darrelle revis. there is speculation that he could end up back with his old team, the new york jets. those are your top headlines. tom: the nfl tomorrow will have a signing of names most mispronounced by tom keene and olivia sterns. we set a record for that yesterday. thanks to all of those on twitter on on dome ago sue. olivia: that is what we're here for. tom: we enjoyed our phone call with you yesterday.
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it is spring. we have sprung forward into daylight savings time. it is time to recalibrate yield retirement accounts, or maybe do not touch a thing. the s&p 500 has green on the screen. we open trading this morning, up 11%. monica dicenso lisa abramowicz visits from bloomberg news. let's have a classic equity bonds tagteam raffle. terry schilling was on the said yesterday. prices higher, yields lower like the german 10 year right now. lisa: it very well could be the truth. you look at the differential between what is going on in europe, the german you -- the german 10 year versus the u.s. 10 year -- it is the widest gap. the biggest gap for more than 20 years. tom: mediation falls right into
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equity markets. how do equities adapt and adjust to the loony bond market we are in? lisa: it reflects -- monica: we have dividends in the u.s. that are increasing by back. people like that. probably the same story in europe. people will look to equities and in europe in particular you can get yields of 3%, 4%, or 5%. olivia: lisa, do people want to get more into fixed income? monica: i haven't felt that. generally, people understand in this environment from a rate perspective, there are not that many compelling opportunities. when you look at equities and the u.s. economy feels very good today and people are starting to get over the hump they had a few years ago so he feels better to buy equities. offshore, the investors are a bit different. a lot of our clients look to the u.s. as a relatively safe haven.
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olivia: they hate yields this low, year after year, but this is the same old story. everyone has been waiting for yields to rise and they have not. gary shilling is right that realistically there is a lot of pressure coming from overseas that want to buy the dollar, that want to buy the dollar bond. this will be pressure on yields for the dollar to go lower. tom: will there be a jump condition shock to, or will equity construction fade with all of these coming down the road? monica: i think the market will be skittish. people are anticipating that. people are trading sideways here and there, waiting for something else. when rates start to move, people will feel better, but over -- but overhang has been weighing on people's sentiments. tom: this is the lisa abramowicz factor. this is lisa abramowicz jiving
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the -- lisa: thank you. one third of all sovereign debt in europe is negative. tom: lisa, help me. the japan yield is here, but the u.s. -- olivia: for those of you, the viewers, tom is 6'6". tom: is schilling right that this yield goes down? i just pulled a muscle. if i have the watch, it wouldn't have happened. lisa: in london, it was talking about bank of america, david wu who was saying that the strong dollar is actually going to offset the effect of a weaker euro. that basically the deflationary pressure of the stronger dollar will undermine the inflationary pressure that a lower euro will
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exert. the concern is that really this will all compress the lower yields all around, and frankly that signifies deflation, which is a big concern for a lot of people. olivia: coming up, we all know college is a major expense, but which schools are worth their price tag? that will be another heated debate. we will show you today's single best chart. tom's alma mater is not on it. we will be back. ♪
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tom: hold on. right, ok. we are doing an xl spreadsheet. are you kidding me? it is "bloomberg surveillance" from new york city. a little ugly this morning, -15 on the equity -- i am going to do snap chat on my apple watch. olivia: $30,000 is the average debt level for college graduates in the u.s. it is an investment of time and money. how do you know if it is going to pay off? according to a new report, in purely financial terms, you will get more for your money if you go to harvey mudd college than to an ivy league school.
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tom: this is a great list including princeton and m.i.t. right? olivia: this list excludes anyone who got a postgraduate degree. it excludes anyone who had financial aid. tom: when i was doing my blog i wrote three times about harvey mudd, a special school on the west coast. it is a way cool school. olivia: engineering schools dominated the pay scale ranking, and the college -- the colorado college -- this is calculated by taking the net year -- the 20-net year return on a school. tom: "the economist" magazine shows the reality of that stem education. you need to go to georgetown to synthesize all of this. monica dicenso coming out of georgetown. you have the beautiful cathedral
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. i was there a couple of months ago. there is just something about east coast versus west coast for education. monica: you are asking someone from boston. lisa: the return on the weather is just tremendous. i went to chicago and it was literally night and day. it was rainy and freezing and my bar other -- my brother was back in 70 degree weather. tom: we went into the "surveillance" archives and dug out this important photo -- no not of me. i was in school before film was invented. are you kidding me, olivia? olivia: 2006. i looked so much younger and happier, tom. tom: did you drink shavers -- schafer's?
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it was pennsylvania beer. it made utica club look good. olivia: you want to talk about inflation? we used to have $.50 drink tuesdays. i'm not kidding. tom: let's get to our photos today. olivia: fukushima is still dealing with radioactive waste. this week is the anniversary of the earthquake that triggered a new their meltdown in the city. it will take 30 years for the debris to decontaminate. our number two photo -- a pilot finishes his first day flying in the solar impulse. the plane took off from dubai yesterday and will continue traveling around the world making occasional pitstops for rest and maintenance. it has a 236 foot wingspan
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larger than a boeing 747. tom: it is like the smithsonian air and space museum stuff. and branson is not involved with this? this is not his baby. that is very cool. olivia: in new zealand, michael taveras begins his second day living in a 500-year-old tree that was scheduled to be chops down to make way for new houses in auckland. michael says he will do whatever it takes for a quick resolution. more than 100 local protesters gathered to support saving the tree. that is what tom keene does on the weekend. go save a tree. tom: what i do -- in central park south, i have the push mower. i do my push mower. julian robinson bought it for me. olivia: tom is the good samaritan spring thing salt on the sidewalks.
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coming up, someone who is doing good things of the world. we will hear from melinda gates on her efforts for global gender equality. this is "bloomberg surveillance ." happy tuesday. ♪
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tom: the gorgeousity of new york. it is beautiful. still snow in the treats. i saw some snow by carnegie hall yesterday, olivia sterns. a little bit of ice still out there. let's get to top headlines. olivia? olivia: president obama is upset about the letter republican senators sent to iran has leadership, warning that any new detail that any new deal with president obama could be reversed with -- could be reversed once he leaves office. joe biden said the letter is beneath the dignity of the senate. shares of credit squeeze her up as much as 9% in early trading following the shakeup at the top. brady duougan will leave, replaced by tidjane thiam.
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10 people are dead after a midair collision of those cohead copters -- after the midair collision of two helicopters. the conductor and 54 others are recovering after an amtrak train accident with a tractor-trailer. the train was bound for new york when it collided with the truck in north carolina. it was the third serious commuter crash and less than two months. the u.s. secret service is trying to learn how to interfere with road drones, or not them out of the sky, after one drone crashed into the ground at the white house in january. agents are conducting classified middle of the night drone flights over parts of washington. the secret service is said to be seeking ways such as signal jamming to visualize the potential threat of civilian drones. a number of americans living in a home with at least one gun reaches an all-time low. under one third of americans now own a firearm or live with someone who does. that is down from the late
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1980's, when about half of all of u.s. homes had at least one firearm. those are your top headlines. despite the progress women have made over the decades, there is a long way to go before we can say gender equality has been achieved. that is where the clinton foundation's full participation report begins. gaps still remain. hillary clinton, and melinda gates were in new york yesterday when the report was released. stephanie ruhle joins us onset. she was there are great to see you in the morning. what jumped out at you? stephanie co first of all, what an honor to sit down with melinda gates, one of the most extraordinary philanthropists on the planet. the report took a snapshot, home deking a massive amount of data of where women and girls progress over the last 20 years. if you look at the developing countries, women have made huge strides simply because the rule
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of law has changed. vaccinations, clean water, and the right to go to school. but if you turn the table and look at the united states, when melinda gates went to duke, 36% of the students were women. now only 18%. so on many levels we were are moving -- so on many levels we are moving backwards. you look at the study today -- are you really going to move the needle tomorrow? take a look. i don't think we are there yet in terms of really empowering women in all types of work throughout the various sectors. until we have lots of different styles of women and far more women as ceo's and far more women in congress, i don't think we are even close to where we need to be. stephanie: she has partnered with hillary clinton in the initiative, and i asked her if hillary were to run -- would you support her, and would that be a game changer if we had a woman as president?
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she is basically saying no. she says what we need is critical mass across all injury -- across all industries. companies need to change family leave practices have to change. they have to stay in business and rise up. right now there is just not enough. one woman on a corporate board -- put her up their banker that has got to change. olivia: there are more ceo's at companies than there are women. having melinda gates there put it in perspective. tom: you put a lot of work into this. is this in any way bipartisan? is all the advocacy of the last week or 10 days mostly from democrats? are there republican voices in this? stephanie: this does not have to
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do with being a democrat or a republican. it has to do with those who want change. we love to talk about women's empowerment. unless you find great women train them, keep them in their jobs, and promote them, you will not change anything. nothing disappointed me more than after the financial crisis. it was an opportunity to see a woman run an investment bank. but guess what happens -- jobs were lost, and the boys club only grew tighter and still we do not see a woman running a major investment bank. the fact that we bring up sallie krawcheck's name as the most senior woman in banking, she is extraordinary, but she has not worked in a bank in years. olivia: you do see women making progress and getting into the sea sweet, but they are the chief diversity officer, the chief -- stephanie: one of the things is are we comfortable yet for men to stay home? we love to say that we are, but
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when you go to a cocktail party, tom, and she says i go to work and he says i stay home, a couple that you meet, sometimes the most progressive woman out there -- he stays home? we are not there yet as a society. once the kids get to school age somebody has to stay home somebody has to be comfortable doing it, and that is the woman. olivia: it does not focus on how long the man will take off. stephanie: when i had my kids, it did not matter if my husband was coming home. i needed to be home. olivia: tom keene did not take too much fraternity leave. what are the solutions of what melinda gates is working on? i think rwanda is one of the only countries when you have more work -- where you have more women than men in the government and that is because it was mandated by law.
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stephanie: if you think about the nordic countries, public companies need to have a certain amount of women on their boards. that is where we are seeing change. in the united states, we are not seeing much change yet. if you ran a small business and you had to give your employees one year's worth of eternity leave, that is really complicated. so the idea that everyone needs to address it and rules need to be changed, companies need to be doing it. olivia: we are looking forward to that interview. that is coming up on "market makers" at 10:00 a.m. tom: we have some real moves on dollar strength and euro weakness. this has become a huge deal, the major distinction of the last 24 hours is we finally have significant yen week this. 119 through 120, 122 print this morning.
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monica dicenso, thank you so much. lisa, as always -- lisa, get back to work. write a bond story. we have futures, negative 13. dow futures, -106. ♪ . .
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>> this is "bloomberg surveillance." tom: the vice president is
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scathing and criticism of senate republicans. they advised iran's on president obama's negotiations in an "media civics lesson." credit squeeze brady dougan exits. 11 review with tejon the him -- tidjane thiam in minutes. good morning. this is "bloomberg surveillance." live from our world headquarters in new york. we will go to francine look london here in a bit on the new head of credit squeeze. let's get to our top headlines this morning. let's get started with olivia sterns. olivia: the white house has harsh words for the republicans who wrote the letter to iran's leaders. they warned that any deal made with president obama could be reversed as soon as he leaves office. the white house accuses gop leaders of trying to scuttle the talks with iran.
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president obama says it will not stop negotiations. president obama: i think it is somewhat ironic to see some members of congress wanting to make common cause with the hard-liners in iran. it is an unusual coalition. olivia: vice president joe biden called the letter "beneath the dignity of the senate" and it seems a signal that america cannot deliver on its commitment. credit suisse shares are up after a shakeup at the top. ceo brady dougan will be leaving at the end of june. he will be replaced by prudential's tidjane thiam. he is one of the few leaders bank global bank to have survived the financial crisis and the scandals that followed. dougan has tried to improve earnings rather than a downsizing. and mario draghi is ramping up the restaurant grease. he is urging the government to disclose, cash it can rally
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before it is too late. greece is in danger of running out of funds this month. you see the does not want to give greece more money unless they can follow through on their promises they made two weeks ago. while the apple watch have the same impact as the eyee ipad. the full details for its new smart watches e-mail, plus, a fun tonight -- a function that ceo tim cook has wanted for years. it will cost anywhere from $349 for the basic versions to more than $10,000 for the 22 karat gold model. u.s. ambassador to south korea leslie hospital five days after he was slashed in the race by north korean sympathizer. he needed 80 stitches to close his facial wounds. the stone age rehab work on his
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hand. and one of the co-creators behind a long-running "simpsons" has died. simon said his arrangement with the show paid them tens of millions of dollars a year long after he left. these the rest of his life giving away that money. he also set up a foundation to train dogs. tim simon was 59 years old. tom: let's do a data check. equities, bonds, currencies, commodities. markets were moving now they are more than moving, -14 on the s&p, futures now -13, 10-year yield comes in $2.21. the euro on a stronger dash here of the dollar. michael mckee out with a yield curves, a bit on twitter really indicated on that. $49, $.71 get ever lighter. it is a banking changing of the guard. brady dougan is out. tidjane thiam is in.
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he heads prudential u.k.. hans nichols, what will be the goal of mr. thiam? he has been a caution, a measured pace in the years of dougan. what will be the new mandate of credit suisse? hans: maybe the more realistic on the return of equities. 15% had always been dougan's goal. they did not really reach that. maybe better capital standards. the question is -- will they continue to be an investment bank? that is a question that only mr. thiam can answer. when a new ceo comes in from basically different industry similar but different, do you have more power on the first day or six month into it? if you have the most power on the first day, and then you just bleated out, then you can expect big changes at the very beginning, or does he listen for a while and then make his move? it is really question of a
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theory of leadership, we always like to tom keene. tom: i look at this, hans and i look at zürich. mr. thiam comes from london. how will he be greeted ins are at where and credit suisse essentially dominate the economy? hans: look, zürich is an open city. will he be able to afford a house on the gold course in zürich, and the question is -- and the answer is probably not. there is some insurance as well. i am sure mr. thiam is familiar with it. how will he received by shareholders but also clients? credit suisse have a big agent exposure, and mr. thiam made a lot of money by moving insurance into asia, so in some ways it is less interesting about what happens in zürich and would geneva but more what happens in beijing, around the south pacific in the philippines as well where they could be some
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business opportunities for credit suisse if they stay in the traditional investment banking realm. olivia: perhaps he will go a little more global. in the near time is -- should credit suisse follow the path of ubs? will he pursue wealth management? hans: there's only one person you can ask that question two and that is manus cranny standing outside of ubs. what is he going to do to debt trading? i suspect francine lacqua, when she interviews him in a few minutes on our air, we'll get to that point. we can get a better answer from the ceo's as opposed to just a reporter in berlin. tom: "just a reporter." olivia: do not undersell yourself. we enjoy having you on "surveillance." hans nichols in berlin.
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we will be seeking to the incoming credit suisse ceo tidjane thiam francine lacqua will be speaking to him. tom: let's go to markets. gold plunges, truly plunges right on to support all of it part of a recalibration of assets. christopher, we demanded that mobile boyfriend -- that moe come on here. are you going to buy a watch? moe: i kind of think i am going to. i think i will buy the cheap one and see how it goes. i'm not wearing a watch right now, so there is no, you know, tom: that is a key point. guys like you do not even wear watches. mo: i wear a watch for special occasions now. tom: cory johnson will join us as well. we have got gold on key support. if you are in equity guy, what do you take from these levels we
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see across commodities and across currency as well? christopher: tom, i think you build in a higher risk terrier. i think you need a little more security before you invest. tom: security of dividend? christopher: of dividend higher be quarter. tom: do you believe in the behavior of it now that michael mckenzie said in the ft, this is the most unloved bull market ever? christopher: we continue to like the refiners, the airline, we just want cheap, and it is harder to find. tom: how does the shift over to your world? facebook was two years ago twitter was one years ago, is there a new new in technology in terms of equity valuation this year?
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mo: the biggest trend we've seen in terms of equity valuation is public markets not being cheap enough in finding public market investors trying to dip down into private market businesses to try to catch them before they go out to public market. everybody is getting more creative. mod:: everybody is trying to find yields. relatively small bets for them but they bets on these companies and funding increased burn rates and really trying to get down into the private markets. that is the biggest things we've seen the tech funding landscape in the past year, year and a half. christopher: tom, with the share buybacks, there is less quality stop for a folks like us in the public market. mo: that is why they are looking at our companies before they -- olivia: yes, that is why they are looking at the private market. mo: everybody is sort of following that trend. tom: is credit the new ideal?
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rephrase -- is private money to new ipo? mo: it sure looks that way. olivia: i am looking at the $5 billion gm share buybacks. after harry wilson was banging on the drum, what activist is in your world? christopher: they are just another voice to say you share capital to buy back stock. whoever thought gm, american airlines, all of a sudden they are using their capital to buy back stock, so it is making our job harder. tom: chris, thrilled to have you here, and mo koyfman as well. in this hour, francine lacqua with tidjane thiam. stay with us. "bloomberg surveillance." ♪
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tom: good morning, everyone. "bloomberg surveillance" from new york city. let's get to a morning must-read. here is olivia sterns. olivia: tom, there is a robust debate going on this morning on capitol hill about the navy's budget. olivia: i should also point out
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that senator john mccain have an op-ed this morning the "wall street journal arguing for the opposite, arguing for the navy's budget to be increased from $145 billion. the point mr. easterbrook is making is that we are already number one by such an extent, we are so far ahead, the u.s. military budget is larger than the next eight countries behind. what is the purpose from going from 275 aircraft carriers to 300? tom: i am just old enough to remember a quaint race -- the military-industrial conpmplex which is ancient. chris grisanti with us. we lost control of a dialogue. we do not know where we are on defense spending other than that we need to protect soldiers. christopher: it is so off the headlines now, tom. we will talk later about the transpacific partnership and we are shifting towards asia, and the navy is needed to counter
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the balance of power with the south pacific with china. tom: it reminds you of our history lessons where foreign policy was art of the campaigns, and it is just gone. christopher: i think part of it is on the military side that we are finding a very different kind of in a meeting days, and the traditional modalities of how we think about fighting have changed dramatically. tom: you mentioned, libya, the "atlantic" article on isis. olivia: i did. there was a quiet debate going on a new mill american military but the relevancy of aircraft carriers. what is an aircraft carrier doing in a fight against islamic state? christopher: that is not the issue for love not only have we not develop the language for how to talk about these things, but we are early in the kind of strategic developer of warfare to fight these enemies, so i think we broke up in the areas that we know are working especially vis-à-vis china --
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christopher: and that we are good at. mo: and we did not know how to talk about what is going on. tom: i know we have to go to break before france a look on but mexican peso falls to record -- this was its 14 something, that is a little hard to see on the screen, but the reality is foreign exchange on the move the dollar is stronger. olivia: coming up, can you imagine the incredible luxury of tracking your uber on your apple watch? we want to buy one? tweet us @bsurveillance. ♪
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tom: good morning, everyone. "bloomberg surveillance." the german 10-year an indication of that draghi economics come up when 273 on the german 10-year. that is truly remarkable. here is olivia. olivia: we begin with the latest on the nuclear talks with iran. president obama taking aim at republican senators and criticizing them for sending a letter to iran's leadership.
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he later warned that a nuclear deal with president obama could be reversed as soon as he leaves office. the president accused the gop of making common cause with iran's hardliners. vice president joe biden said the letter is "beneath the dignity of the senate." shares of credit sweetheart up as much as 9% following -- shares of credit squeeze are up as much as 9% following the shakeup at the top, brady dugan will be replaced by prudential's tidjane thiam, who has been running insurance businesses in the u.k. also crossing the bloomberg terminal never before seen video of the boston marathon bombing is shown to jurors stop prosecutors say dzhokhar tsarnaev and his brother are shown right before and after the race to the finish line. more file out from the scathing justice department report on ferguson, missouri. the state appeals judge is taking over cases from the municipal court. the court says blacks in ferguson are being unfairly treated by the city's police and
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court system. mom is the word from hillary clinton for now. the former secretary of state ignored her e-mail controversy during a forum yesterday. fellow democrats are urging her to speak out and they're protecting she actually will. a person familiar with the matter said she might hold a news conference within days. burger king is cutting sodas from its kids meals. instead of soft drinks, burger king kids meals will now include apple juice. fat free milk or low-fat chocolate milk. that is tom keene's favorite. those are your headlines. tom: very good. he is african royalty. his uncle was the prime minister of senegal, his family were leaders and the advent of the ivory coast. he is out of the technique in france and he is the newly minted a ceo at credit suisse. our friends a look while and guy johnson are joined in london by credit suisse's new ceo.
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francine? francine: we can't hear anything. ok. tom: well we are going to come back on set. we have got technical difficulties right now. olivia, i think this is very exciting, not going to have someone who can give a new tone to zürich and the credit squeeze but also, you mentioned earlier, that extension to asia as well. olivia: yes, because he has been very busy pursuing his insurance business. my question is whether or not he thinks credit suisse's and follow the model of ubs and shrink the investment bank -- tom: absolutely. olivia: and pursue the global wealth management. tom: are you suggesting cost-cutting first? olivia: the problem is brady dougan is not even know how many -- how much capital he has to raise. tom: chris grisanti with us from gross on the capital management.
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christopher: i think he should look at morgan stanley for the model. it is not just cost-cutting, it is transforming the business. it is growing the wealth management. tom: he is advanced mathematics and physics as james gorman in mathematics. olivia: bury interesting. i would take a hard left turn and will come back to the new ceo of credit suisse, our francine lacqua will be joining us with that interview in just a few minutes, but meantime we will be talking about jobs specifically the number 5 million because that is the number of jobs opening in america today. over half of those are in information technology, but there is a shortage of skilled labor. our guest post for the hour is mo koyfman avenue spark capital management. you say the industries are right for discretion. -- disruption. use it will impede?
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mo: i do not think the skill gap will impede newtek. i think the more we do to close the skilled outcome of the better resources we will have to continue on the course of innovation. taking a bunny financial services the right-wing talk about credit squeeze moving to wealth management from banking we are investing specifically in -- talking about financial services talking about credit suisse moving to wealth management from banking, we are investing physically and wealth management programs as well. tom: the bottom line is you are the biggest fear, mo koyfman is the biggest fear of major bankers. you look like a banker. mo: [laughs] i gave that up. here is the thing. we are investors in a well blow advisor, which is doing
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harvesting, indexing, tremendously powerful financial products for the average consumer where you can dis intermediate the traditional wealth advisor and you can you help people investor might smartly, because most people are not good stock pickers. tom: from where you sit, do you eliminate banking, a door you amended? mo: we are investing in a handful of lending businesses, insurance companies, other businesses that are just taking up in places where the banks are not playing today. for instance, small business lending has been completely eradicated from the banks because of deleveraging and also just the sheer bureaucracy and paperwork it takes for them to get to issue loans below a certain threshold, certain types of companies. we are coming in where the banks are not able structurally to play today. we are trying to fill that gap with tech forward, really smart businesses. tom: front and center davos this
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year. olivia: if the banks cannot get the money out in low rates, mo koyfman's world can do it. leave answer our twitter question of the day. will you buy an apple watch? tom tom keene is going to buy the $700,000 one. tweet us @bsurveillance. ♪
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tom: good morning, everyone. neidich"bloomberg surveillance" from new york city. let's go to the bloomberg terminal. chris grisanti of croissant to capital management with me. i know abenomics, i know japan is light on its back.
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we are now down to .270 just breaking through to new draghi weakness here. on prices of the german 10-year, the u.s.-year-old is way up here, but we understand japan is a basket case. germany is not a basket case, is it? christopher: no but japan is enough of a basket case that people are starting to get worried that there might finally be nothing behind the curtain and at the yields may budge. i think that is why you are starting to see much more based red than you ever thought before. tom: what is the exhaustion a shock you worry about with all of the fancy talk? mo: is by definition, if i knew it -- tom: i totally agree with that statement. christopher: it could be ukraine, it could be saudi ratcheting -- tom: francisco gaza rally at goldman sachs is adamant in his grace. once again, we meet greece.
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olivia: the greece story feel like we have been here a thousand times before. that is really striking, between the german 10-year in the u.s. 10-year is the whitest at 10 years. -- widest in 10 years. tom: let's get to top headlines as futures deteriorate. olivia: the white house is calling out republican senator saying they're trying to undermine president obama. senators sent a letter to iranian leaders saying any deal on nuclear power could be reversed as soon as he leaves office and 2017 post a president obama says it will not stop the negotiations from going forward. president obama: it is somewhat ironic to see some members of congress wanting to make common cause with the hardliners in iran. it is an unusual coalition. i think what we are going to focus on my now is actually seeing where the we can get a deal or not, and once we do if
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we do, then we will be able to make the case to the american people. olivia: 47 republican senators signed the letter. vice president joe biden call it "beneath the dignity of the senator cowan investors like the -- anything in it -- calls it "a beneath the dignity of the senate." investors like the shakeup at credit suisse, brady dougan will be replaced i tidjane thiam, who has the last decade running insurance businesses. dugan was one of the very few ceo's to survive the financial crisis, but profits have suffered a credit suisse's private banking business. and it is time to deliver the goods. greece is being warned it must follow through its budgets to reform its economy come otherwise european leaders may not come through with more aid in the greeks could run out of cash. the chairman of the euro area finance industry group warns that time is running out. >> we agreed today that there is
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no further time to lose. discussions between the greek authorities and the institutions must and will start as of wednesday. the day after tomorrow. we will work to achieve a speedy and successful conclusion of the review. olivia: the france finance minister says it greece wants more money committees to come up with budget data and a better picture of the country's financials as duration. -- financial situation. and the university of oklahoma has shut down a for germany -- shut down a fraternity after members made a racist chance of video. the schools of it is looking into a range of huntsman options including expelling the students responsible. football players staged a protest instead of going to practice. and we are spending more money on prescription drugs. u.s. drug czar at the fastest pace in decades.
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per-person spending by commercial health plans rose by 13%. americans spent .1% more on cancer drugs and the cost of hepatitis c treatment surged more than eightfold. and it is how a team plays off because free agency season begins. 4:00 p.m. eastern time today, teams can start throwing money at free agents. one is new england cornerba ck durell revis. he could end up with his old team the new york jets. those are the top headlines. are you excited about revis? tom: i'm excited about football, but they just did all the hockey trades, and it is the most exciting thing. you cannot keep track of who is trading who. it is just great. they should do the same thing in football. article removed futures -21 earlier, -18 now, and the euro
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trying to find new lows, $107.35 is the intraday low. -- $1.0735. nymex crude has a certain weight to it. german 10-year yield grinding down to 2.70. good morning, everyone. this is "bloomberg surveillance." i'm tom keene. with me olivia sterns. olivia: prepare to be liberated from the burden of reaching deep into your pocket. that appears to be apple watch's main appeal, but is the promise of checking your e-mail, tracking your uber even taken a phone call on your wrist enough to move the dial on apple stock? that is the question after tim cook's big unveil of the apple watch yesterday in san francisco. of course it is the first big new product lines for apple since 2010 when they launched the ipad. what is your big take away, tom? tom: the mystery of how i am humbled by listening to pros like mo koyfman. i look at mo koyfman and spark
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capital and his experience on this, and i am all years here. i was wrong on the ipod. why am i wrong on apple watch? i really respect your thoughts. mo: i will be the last one to prognosticate how it will impact apple's stock price, but the only thing i will say on the applewhite in that regard is that apple is selling so much other stuff right now that i do not think the contribution will matter for a time. tom: i understand that. mo: this is a moment come and what is interesting about the apple watch is they are pushing to the wearable space, and it may take a year or two years, three years, but what they are doing is they are unlocking these race for -- the space for application developers, for software developers to go to town. that is the day idea. tom: brilliant. mo koyfman on the app development for stop let's go to "bloomberg west" and cory johnson. forget about idiots like me and my glib comments.
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the pros were in the room yesterday. how do they respond? cory: when i talked to app developers they said they were going to wait on the sidelines. they figured they would wait it out and see what apple would do with this, if it is going to be more a part of ipad, let alone iphone, less parts newton. when we saw the event, we saw a number of companies step up and design for this device thinking they had an advantage whether it was american airlines wanting to show up hey, you can check in using your american airlines orting pass on your apple watch, and i put them a little bit of a leg up or companies that are coming out of nowhere. invoice to go, an interesting company, contractors can measure their work on the watch. that is neat stuff, and that allows these companies to take a step ahead. tom: cory, help me and olivia
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how is that what's going to make my uber experience better? cory: i think the notion is, their notion is taking a phone out of the pocket is something of an in addition to commerce into usage and you have a different spirits with your phone. it is a remote control for the phone. it is a need one, but it is not much more than that. i think they are betting that the glancing at the text, at the call happy uber =-- at the uber, all those glances make for a better user experience and pulling your phone out of your pocket or purse. olivia: exactly. personally i am on board with that. you would be shocked at the amount of time i waste fishing for things in my purse. -- of piper draft jaffray said teenager said 6000 text messages. what i want to know from you is
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did you learn anything about tim cook yesterday? this is the full first product under his watch. cory: he has been an important job at this important coming for a long time, but you can get a sense of his personal handedness, pun intended with the watch, right, but he is an athlete. he has got to take meetings on his bike, so the health aspect of this really resonates in a personal way with him, and in a company where it's most iconic moments has been led by the pope -- by the personality of steve jobs, you can imagine it feels like he should have some personal stake in the product itself. tom: cory johnson, thank you so much, terrific coverage, real coverage from cory johnson. not a lot of product blather but actually something behind what we are going to see with the apple watch. we are to rip up the script. we have got to come back and talk to mo koyfman. i am really interested in humbled by what mo will think about this as well.
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olivia, we have market on the move, euro $1.0752. olivia: coming up, we will answer the twitter question of the day. what are you going to do? will you buy an apple watch? we will hear from mo koyfman. tweet us @bsurveillance. this is "bloomberg surveillance." on tv and radio. ♪
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olivia: good morning. this is "bloomberg
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surveillance." i am olivia sterns here with tom keene. scott galloway will join "in the loop" at 8:00 a.m. betty liu joins us. why does scott think amazon is doomed? betty: scott galloway has always been field with provocative -- been filled with this provocative ideas, but he made this presentation a few months ago that was like a crash course into what he calls the four horseman, amazon bn one of them. amazon, he says, is him because he says any play retailer is going to suffer. if you are online, you have got to be off-line. if you are off-line, you have got to be online. he said amazon is the king of being ap or play retailer because they are specifically online. he also said their delivery costs are going to be unsustainable. they're rising a double digits every year and that uber is going to disrupt amazon. amazon is not going to dominate that last mile for shoppers.
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it will be cooper -- uber because they have a massive network. tom: chris grisanti is with us. do you agree with the professor? christopher: clearly we do not agree. when the stock price goes down, as amazon's did, amazon was certainly the worst of the four horsemen last year. tom: do you extrapolate out the performance of amazon back five years? christopher: i think it is going to change in a sense of they have got a choice. they can choose at any point to deliver huge growth profits. the bottom line or they can reinvest. tom: mo koyfman, is amazon a technology company or a cardboard box company? mo: it is a technology and a cardboard walks company. that is the problem with amazon. tom: betty liu, have a box they gave you get from amazon? betty: none be divided all of my shopping over the holidays and i am done.
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you can about what you are saying about reinvestment scott said there were be one big acquisition out of amazon this year. either it will be radioshack it could be gas stations given their locales, or he says the u.s. post office. [laughter] mo: the problem with amazon as they are in a crappy business. betty: is a crappy? mo: you know, delivering stuff taking stuff into warehouse is not the highest cash flow or margin business. it is a very defensive, tough business to be in. amazon does it better than anyone else, but it is not like -- if you were to stack rat industries you want to be involved ine -- tom: they are a five cents on the dollar business? christopher: if you're a low-cost provider by a lot, you can make a lot -- look at gas stations that are efficient. if you can do that, you can make
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a ton of money and put the other guys out of business. betty: why haven't they? mo: because their entire business is about dropping prices and lowering prices to the consumers. christopher: i think a little exception to that because i think amazon prime, for example, is a terrific thing that most of us have because we like to get things for free. olivia: you know what i will order on amazon prime? some of those cinderella shoes in time for friday. that he will be with scott galloway on "in the loop." ♪
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tom: good morning, everyone. "bloomberg surveillance" from new york city. dow futures negative one 53. a jumble across all assets this morning. we have got clarity in our top headlines this morning. here's olivia sterns. olivia: president obama is upset about the letter republican senator's sent to iran for the leadership, warning that any nuclear deal the president signs could be reversed. president accused the gop of making common cause with iran for the hardliners. vice president joe biden said the letter is many the dignity of the senate. shares of greatest weser up as much as 9% in europe today following an executive shakeup. the bank ceo brady dougan will
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leave at the end of june. he will be replaced by prudential's tidjane thiam. he has run insurance businesses in the u.k.. and he spoke moments ago with bloomberg's francine lacqua. here he is. tijane: i think it is a phenomenal brand, great people. i know them as a ceo because we deal with credit suisse as a ceo, and i think there is huge potential there. olivia: credit suisse was accused of helping foreign clients is a taxes. crossing the bloomberg terminal can people are dead after the midair collision of two helicopters in argentina. they were in a remote part of the country being shown for a european reality show. in a silicon valley blog that had nearly 6 million monthly readers shut down. it focused on pioneering technology and said the company but the creditors are taking over all assets to stop officials from several states are teaming up to crackdown on herbal supplements.
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the attorneys general are excited to announce their plans today. the probe started in new york. investigators found pills that used cheap fillers do not contain any of the advertised herbs, and those are your top headlines, tom. tom: very good. jeffrey currie, goldman sachs, gary shilling on "surveillance" yesterday. christopher grisanti says well maybe is far from concerned about the recovery. rosati said lower for longer. you go back to -- grisanti says lower for longer for other than the persian gulf wars it has been a decade off of 1986. christopher: 1986 of the last time we had its apply-driven decline. too much oil, just like now, so the price went from $30 down to $10. it took 15 years besides the little blip in wars for the price to get back to $30.
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anyone out of business, many consolidated. you had a housing bust in texas and oklahoma. it is a problem. tom: is it an opportunity for you to find the winners or consolidate ease? christopher: funny folks that will benefit from oil lower for longer. refiners who benefit from a lower price of oil, airlines. that is where we are looking. that is where we have already invested. olivia: how much lower is oil going? restart i do think it goes -- christopher: i do not think it goes much lower. i do not think the market thinks this is a cyclical downturn. we do not think it will come back. olivia: what has to change for you to get into inventory? supply-side or demand-side change? christopher: i think it is more like natural gas, which was $14 and is now $2.50 years later. fracking will keep a lid on the price of oil we think for a decade or more. olivia: mo koyfman.
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mo: increasing consumer spending and consumer purchasing. oil prices are a big piece of the average consumer's budget in this country. when they have more disposable income -- olivia: we have yet to see that filter through. are you telling me in at her dollar in your pocket per gallon of gasoline is going to make someone go from a 350 dollar apple watch to the $500 apple watch? tom: i do. i agree with that statement. mo: there are so many steps between that and that. i think the reality of having more money in the economy, in the hands of consumers is a good thing. tom: chris grisanti, the theme is so important that we have seen a skew to technology toys with an consumption. that is not going to go away. christopher: no but we are sitting here in lovely new york. when you were sitting in the middle of america, people are going to go to target more comments more at walmart, they are going to buy up. you will see more money being spent.
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olivia: the retail sales numbers themselves show that so far people are still saving. christopher: they are cautious. they remember 2008, 2009, so they are saving a little more. you see sale that various places start to rise, like a target. tom: before we get to the end of the show, mo koyfman, i want to talk to you about facebook and twitter. it has been remarkable on "bloomberg surveillance" how we have not talked about them. are they in a quiet period of innovation, we look for them to lead the charge over the next 24 months? mo: i think the tech world and even most or the media world tends to look for the new, shiny thing. it is in part human nature -- uber is the new shiny thing. olivia: what about snapchat? mo: snapchat is the new shiny thing. how often do you talk about google on this program? tom: "the toronto star" in canada came out with a single page, we are done with our pay
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wall. i would suggest they are done with their pay wall because of facebook, because of the news feed. they are not the new, shiny thing, but what you perceive facebook will do in the next 20 months? mo: i think facebook is one of the best-run companies in the world. i have been more impressed i mark zuckerberg maturing into a true strategic leader than almost anyone i have seen. and off of just aggregating so many people in such a connected network way and being bold and ambitious about what he is thinking about. tom: are you doing sxsw? mo: i am not. tom: how can a hipster like you not go to sxsw? mo: iron am not a hipster anymore. i am a dad. i am a huge fan of --personally and professionally. i think he is one of the most thoughtful journalists out there. i think he got himself caught in a burgeoning content market
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where he was not capitalize properly. tom: gigaom shuts down, stunning people. mo: i think there are always winners and losers in industries that are not have barriers to entry's visibly, but i think om will be just fine. tom: chris grisanti, bring it back to you. where is your sector where you have asked barriers to entry? christopher: i think airlines tom. it is hard to start a new airline. especially with the consolidation of the -- six times or seven times earnings with much lower fuel costs. tom: so a moonshot like alaska air, you can still did on that moonshot? christopher: i would go for bigger, united, american -- tom: that is what olivia does. olivia: i think the u.s. airliners are terrible.
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although you can make a lot of money. christopher: right, absolutely and if you try to buy summer vacation tickets, it is more expensive than ever. olivia: it is true, even if the fuel is cheaper. it is because they have you hostage, they charge you $7 for a bottle of water. it is a racket. tom: can we keep on life here so olivia can foam. christopher: will every foam for her is more money in our pocket. olivia: how twitter question of the day -- will you buy an apple watch? the first answer -- i will never buy a new apple product. i learned that from the first ipad. second answer -- apple probably has the highest in ps in the world. if it is useful, it will spread. tom: what is nps? mo: net promoter score, the measure of how much someone is willing to promote a product tell their friends to buy a product, which is what most
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companies use today, especially consumer companies to gauge how satisfied people are with the product, which back to the previous conversation, i guarantee your airlines and will have a very -- your airline friends will have a very low nps score, most important late to our conversation from earlier, the banks. tom: interesting. olivia: third and final answer -- no. people will buy it just because a has an apple logo, but it is just not practical. i disagree with that. i think the frictionless thing is cool. i look forward to not have to fish for the phone in my purse. christopher: i agree. mo: be most interesting thing i have been thinking about his watch as i have seen a lot of people complain like oh, my god, you are already sitting at dinner with the family and every is like this now.. do i need another device to go like this all day? what i'm looking for in the watches may be an opportunity to map. i would love to see a different form factor make us look our phone less and be present more
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and it out developers can do that, i think it will be really interesting. tom: mo koyfman, brilliant thank you so much, chris grisanti, thank you. futures -18. more on bloomberg radio and bloomberg television. stay with us. ♪
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betty: good morning. it is tuesday, march 10 and we are live from bloomberg headquarters. we are nine minutes away -- 90 minutes away from the opening bell.
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stocks rebound after last week's drop. we have a great show -- the apple smart watch. the details and the staggering price. whether you should now consider apple a luxury retail brand. harry wilson with us in the next hour. he got a $5 billion buyback program. he called that move a win-win for the company and for shareholders. a shakeup at a european banking giant. out after eight years as ceo at credit squeeze. -- credit squisse. paying huge fines during his tenure. we will have more in a moment. the clock is ticking louder. the greek debt crisis. region finance

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