triangulate malaysia heirs position on the floor of the indian ocean. bitcoin acolytes will hold a conference this week. this is the value of bitcoin to them. good morning, everyone. this is "bloomberg surveillance." it is monday, april 7. i am tom keene. joining me, as always, scarlet fu is with us. she survived game of thrones. adam johnson is with us. i, too, survived the game of thrones. here we are, overnight we have the german industrial production rising for a fourth month in a row. this is a sign that growth in europe's largest economy is continuing to accelerate. we'll see what the imf has to say about that later this week. economic data in the u.s., we have consumer credit, that is it . first-quarter earnings kickoff tomorrow. we have jpmorgan later in the week. what everyone is talking about, ncaa finals. dallas, number

eight kentucky versus number seven uconn. highest ranking matchup since 1979. bracket was buried this weekend. >> i got off -- i got all four final four wrong. i did get wisconsin which almost got there. got all final four wrong. let's do a data check. hopefully better than a ncaa brackets heard we say good morning to all of you rooting for connecticut and kentucky. futures negative seven. 2.72%. yield down to the you are -- the euros going nowhere since time began. american oil, not brent crude. the dow 16,400 heard the

australian dollar will get to in a second. the dollar yen. this bears watching. this is a commodity complex known as the australian dollar. we are above parity. the bull market in commodity is back for two years. we picked up the bid here little bit. there's a little mystery here about where this goes. question markse coming out of china. china, the biggest consumer of steel, of coal, of copper. >> a middle class of china and development. i agree, the correlation in china is 100%. over the weekend, we start the papers and looked at the wet and -- the web and the op-ed. here scarlet fu. >> it has spread to asia and europe. $.10 isinternet company down.

we have talked about this momentum trade. a lot of questions about whether it is the collapse of the momentum trade which has come to be embodied by the highflying tech stocks and biotech stocks. facebook, twitter, netflix, these are all big names from the bull market last year. they are the big decliners. i looked at bearings this weekend. all hail the new king, smart techieunds and techie this. does the ipo debate change with this pullback in momentum? is completelyket bifurcated. if you look at the 12 date ipo so we saw over the past week and a half, five of them were up on average about 30-35%, the rest were flat. statementblanket about the ipo market really is an anathema. >> i think it is momentum issues of cash flows.

>> we will have a lot of conversations on markets throughout the morning. our second extorted is the biggest breakthrough yet in the search for the missing malaysia airlines jet. search ships have heard signals that are consistent with pains admitted by black boxes. this location is hundreds of miles off the west coast of australia. time is of the essence. the signals are usually good for only about 30 days. >> and video says it all. you have to put something in the water and listen. i believe a couple of reports say they are down not three looking at the size of mexico, now we're looking at the size of poland. >> remember, there are strong so things get moved quickly. >> imagine flying over poland and somewhere down there is a little tiny airplane. >> the

malaysian government is hosting a news conference right now, as they have been doing throughout the search. the government says that they're cautiously hopeful, but it has been a roller coaster ride. the financial times says blackrock is planning for life after larry. full disclosure here. this is not about a change at the top. founder, the world's biggest money manager is reshuffling of it. they're expanding top leadership which will give 10 tier executives new roles. >> us us an important thing. caliberebrand shows the of who their hiring. ef two mentions and our finance team mentions, the backdrop is j.p. morgan and mr. cavanagh leading. blackrock is trying to get out in front.

,> you recall about a year ago polisario is running ibm said it is time to pave the way for the first new female ceo of ibm. >> let's look at the equity markets. the dow was up 12% in the past 12 months. always mindful, she has been a needed correction. .riday's job report our guest ptosis morning, a skeptic, has really been wonderful on the bull market. you are a different kind of bull, how are you different from the raging bulls that out there? >> i would say we are always a little bit on the cautious side. we focus a lot on sector strategy. as always, where the market goes >> critically,e.

to our audience, it shares your caution. how you want to be in the game, and yet cautious at the same time. how to do that? >> you do that through a sector and industry strategy. the risk years the market, you take advantage of the most profitable potential in the market here you are still invested, but you're likely to shield yourself from the greatest risks within the equity market. >> how do you interpret this office on friday in response to a lot of the wood colored benign jobs report? >> is anybody's guess what the market will do on any given day. , when we searched new highs in the s&p 500, it was unconfirmed. lesson 10% of the names in the what is brett's? rallyis the extent of the pushed by all of its constituents. last week, we touched new highs in the index. less than 10% of the >--tituents actually pushed

>> what a do at home and prepare for the earnings season. what does this mean as earnings season gets underway? >> it really tests the s&p. momentum is relatively limited. if we're going to sustain these new highs, we have to see the earnings follow through over the next several weeks. it does put some pressure on earnings season. the big thing to watch is not what they did in the first quarter, because we know the first quarter was difficult. that is an easy excuse. when we really need to look for some kind of forward momentum in estimates. we have to get some owned by news numbers. -- oomph bynumbers, numbers, here's a bunch of consumer stock that showed up, including starbucks, gas stores, dollar tree. but it is about the u.s.

consumer that allows us to keep spending? >> wireless companies are so profitable is generally the margin. suddenly, the consumer companies have created some margin growth really over the last decade. some of this is online transition, some of this is reducing real estate expands, -- its pretty profitable is pretty profitable for companies. click to find a wise momentum. >> if were talking about price momentum, is a relative change in versus. >> twitter, oliver is dark and you are, biotech stocks are protested momentum. >> is that that leona retirement , do they display momentum? >> a broad market has some pretty phenomenal moments. as for the reasons why we have

buyto hang onto stocks to to fundamental concerns. the trend has been consistently higher. that is pretty strong price momentum. we have in touch are averaging more than a year and half. us formartin adams for the hour as he let your retirement plan. this look of company news this monday morning. >> it turns out there is a russian connection in neiman marcus data theft. this is according to people with knowledge of the matter. the group has stolen more than 100 50 million credit card numbers from a variety of retailers over seven years. asman marcus said as many 250,000 of his cards may have been compromised. new york is examining credit suisse. withding to someone knowledge of the matter, federal prosecutors have been investigating them for three they helped see if

americans cheat the irs out of taxes. pharmaceutical is buying its rival. that is today's company news. adam? >> coming up, a tough week for technology. not any better this morning. we're here with gina martin adams, the strategist from wells fargo. we will talk about it right here on "bloomberg surveillance. so streaming on your tablet and phone as well. ♪

thriving on monday.

arianne huffington will join us. she has a smart new book out. arianne huffington will thrive with us. we would talk not only about the on thet also the take new digital media. any sort of other new changes going on. including what is going on here bloomberg. really looking forward to that. good morning, everyone. it is "bloomberg surveillance." scarlet fu and adam johnson a with me. >> television, none of us stayed up to watch game of thrones last night. the golden age of television is upon us. yahoo! is looking to get in on the action. according to the "wall street journal," yahoos looking to get on television. a per episode budget of 700 $50,000 to over $1 million.

of $750,000 to over $1 million. >> somebody stumbles upon a good idea and everybody else says we need to do original programming. >> i have a great concept for you, oranges the new purple. >> yahoo! hasn't changed that logo. original content does have the potential to help yahoo! create more durable growth. the system the company that is very much challenged in its core business. is looking to monetize its asian assets. granted, there are successes here. >> that is than the whole thing they're trying to do it yahoo!. many people with a blogging platform, expand content.

>> let's not forget, yahoo! shares bobbled in value last year. they're one of those highflying momentum stocks that we're talking about. >> because yahoo! has a very large share in ali baba, which could potentially become the largest ipo -- >> is not just yahoo!, it is netflix and google and facebook and twitter. adams, how long do you plan to stay overweight? we have a methodology for sector selection. we look at price momentum as a factor. as a little concerning, but not terribly concerning. which ist earnings improving for the sector. we look at valuations which is still extraordinarily cheap. our estimates suggest that tech sector earnings should grow about 10% this year, which is significant. we're seeing the early signs of capital spending improvement in tech which should translate into

much better earnings. we have to see something move to reduce our overhead. >> any correlation to the twitters of the market to the submarket?l mall at they seem to be two separate universes third twitter rolling over to be polite? do i care? to degree. you care because it is part of a larger group of constituents. with the loss of the leadership, you have to see another sector. >> here's the dirt. gina martin adams calls on the people that manage our retirement accounts. to the by twitter? to the people managing my money care? >> not as much. there is a followthrough effect of what happened with twitter in some of these highflying tech happenings in the broader s&p 500 index. winds, so sentiment to speak.

>> here's the thing. todd is absolutely right. twitter is its own thing. tech in general trades at 30 times earnings. you're saying earnings go up 10%? -- >> market cap rated companies in the s&p 500 heard when you look at the tech industry broadly, we look at the pe adjusted for market cap. that suggests that tech is only trading at 14 times earnings not 30. if you think about the broad section of tech, you have companies like google in there and facebook. you have ibm and the whole spectrum. it is a much cheaper prospect than an adjusted measures such as yours. addition to being overweight in technology, you are also overweight in health care. what you make of the buyer tax? >> evaluation is not there.

they're relatively expensive where broad tech is not as expensive. we will see if it becomes much bigger. health care has been our favorite sector for nearly three years. there's just a persistent recovery in earnings growth. cyclicality to it. it is broadly been a very strong sector. >> scarlet fu will bring you earnings. we pride ourselves on this one. we go beneath the headline data as earnings come out. jpmorgan and wells fargo on friday. >> we will talk about the dynamics of earnings, the dynamics of resident -- of revenues and what the leadership actually says and does, and the blather behind it. >> gina will be rejoining us

shortly. coming up in the next hour of arias huffington will be talking to us about the future of news. more news now than you did two years ago? and how? are you actually picking up the physical paper? @bsurveillance. ♪

>> "bloomberg surveillance." is it right your top headlines. here is adam johnson. >> tom, paralympic and oscar pistorius took the stand at his in south africa

today. he apologized to her family and broke down as he started his testimony. he said he shot her because he thought she was an intruder in her home. this series of pings were picked up twice by search boats, but officials say confirmation is still needed to determine if they are in fact from flight 370. sounds were heard at a depth of about 15,000 feet. that is about three miles down. >> this is supposedly the best lead they have so far. >> now they're trying to triangulate them. mickey rooney just died. the actor. in 200 films over eight decades. he made his debut at age six and became one of the biggest hollywood stars in the country back in. rudy launched a comeback on broadway as he nears 60. he had parts in night at the museum and other films in more recent years. mickey rooney was 93.

there was a whole dark side. there's a whole serious side, particularly in the later projects do. a heaviness and weight that was superb. >> gravitas, in other words. this guy can do it all. he had two comebacks, and effect. >> he started so early because of labor lost, his parents had to sneak him in estimated. here is adam johnson. larry summers, the former u.s. treasury secretary. here's what he says very in the face of inadequate demand, the world's primary strategies easy money.

help mr. summers. what is the impact of this over the year? >> our assumption is that the broad impact is valuations will no longer rise with the s&p 500. he said valuations expand and vice versa. so the reduction means no more valuations. >> mr. summers is the vanguard of everyone in the known world. >> absolutely. >> we will, certainly. stable joining in new york today. we will discuss that next here on "surveillance."

>> i am tom keene. and adams scarlet fu johnson. deteriorate negative

six. the rest of it pretty much stasis. nymex crude well over $100 a barrel. let's get to the single best chart, here is scarlet fu. into perspective how big a deal or smaller deal bitcoin is. shows the m1 money supply for the u.s. dollar. monster level is $2.7 trillion heard you have this trillion dollar a 250 $5 billion, then you have quad amalia, anyone know what the currencies: guatemala? the caps off -- the quetzal. about $8 million in market caps. let's unveil where bitcoin sits. $7 billion in market caps.

actually 6.7 5 billion. >> when does this train wreck go away? 465 when i called. >> well, in fairness to matt, i think in november he bought some at around 60 bucks, but that is the whole question, is a currency or a commodity? a safe haven? >> what is bitcoin? mentioned, the bitcoin faithful are gathered here in new york. it is happening today. the better circle the wagons. over the past several months we have learned the following. china and russia have effectively outlawed it heard finland cause of the commodity. here in the u.s. you had better have a social security number if you want to use it. we have a guest

with -- from a securities company. expound on that. what the innovation so important at bitcoin? >> bitcoin is for primarily a payment network. is a very efficient payment network that doesn't have a central hub. minimalt orders or transaction sizes. therefore, it will eventually be the technology of the future for transactions and payment transactions. if it is successful in doing so, it will expand growth to support a large number of transactions. , theat point in time currency itself that fuels it will be meaningful. right now we're at the very early stages. agree withtotally you. we pretty much agree that it has got some interesting computer and technology innovation features. so what, the valuation won't stabilize. where you define a point bitcoin provides stability of

price? >> i don't think it needs to be as stable as the u.s. dollar or gold to be stable. the technologies that run on bitcoin whether or not the prices move. the merchant processors take on some of the risk. consumers of holder take on some of the risk. retailers that except bitcoin don't care about how volatility is. may be volatile for years to come, but that is just ecause -- >> i totally disagree with that statement of retailers. >> last thing you want is foreign exchange -- i would tend to agree with tom on this one, gil. more to the point, countries are outlawing this one. they're doing everything to make sure that people don't use it. why do you think that the technology is going to be relevant? just rename it and collect kilcoyne. same technology but the same

outcome. >> the first my previous points, retailers do not need to take any of the volatility. i would like to correct that point. merchant processors will, some consumers will. retailers are completed shielded. regulation.erms of in some countries, bitcoin will be suppressed. those are usually countries that have something to fear in terms of people taking money out of the country, but in the u.s. and the west, is being regulated. regulatory agencies are speaking up and saying that they would like to regulated the same way they're regulating other financial institutions. they're regulating bitcoin companies in a similar way, which will likely make it possible for bitcoin businesses to thrive in the u.s. and europe . >> in addition to writing long articles on bitcoin, you cover companies from visa and mastercard to ebay and h&r block. what existing companies in your

universe is bitcoin pose a threat to? >> i was a first and foremost the money remittance companies need to look out. western union, money gramm, as human. toittance will be taken down two percent-three percent within a couple of years. later on, this technology is probably going to fuel actual payment networks and a broader sense, especially online. visa and mastercard have to look out. ebay needs to react. if they don't move quickly, paypal will be in danger of being disrupted by bitcoin. >> gil, i bought bowties off amazon. how less efficient was it than if i had used it going at 24 months. what is the arbitrage of transaction between visa and mastercard and bitcoin? is a difference between paying three percent to amazon

or less with bitcoin. defense, he has a nice delta there. innes difference. >> merrill lynch tried to put a value on bitcoin. the camera with a terminal value of $1200. work has the team at wells fargo done on bitcoin? >> we have done some work on the history of currencies and this as a latest iteration in a technologically advancing world heard at an oh-fer put a terminal value on bitcoin. tosonally, i think you have get to some degree of price stability just from a consumer perspective. if you know your buying power is of your currency and it is a very volatile that it changes drastically over time, how do you use a currency effectively? i think that is a bit? that we have yet to answer. when we going to find some stability? >> this is important. kill, can you separate out the

innovation and efficiencies, which everybody agrees are tangible, from the theoretical underpinning or lack of theoretical underpinning? >> absolutely. within a year or two, when you use something that is based on bitcoin technology, you won't even know you're using bitcoin. you'll be on bloomberg businessweek page by page and all you delete -- and i had to do is log in with coin-based technology. when you money remittance to mexico, the philippines, you will just be paying two percent and set up 10%. the word bitcoin won't be even mentioned. the companies that are emerging at a very rapid pace are going to put it: in the black box behind the current so the consumer just gets a benefit and does not have to worry about the volatility. a, thank you for joining us.

coming up on "surveillance," investors are gearing up for tina martinson. adams, equity strategist at wells fargo will tell us what she expects on "surveillance. so we will be back with more. ♪

>> i will be there. this bring meeting of the international monetary fund, look for my conversation with madame lagarde. i'm honored to be doing a number of panels for the imf as well. smart conversation there on, and off the record. russia as aaine and backdrop. good morning, everyone. i'm tom keene, with me scarlet fu and adam johnson. adam has early week top headlines for us. >> i certainly do. we will start with india with the largest election underway. nine rounds of voting. you think ours are complex? this will happen over the next month. more than 500 lawmakers will be elected with results known at some point by the middle of may. it takes that long to try to correlate all the stuff. private equity firms have been inflating expenses in fees

charged to companies in which they have stakes. 400 private equity firms were to have unjustified fees and presumably did not necessarily notify the investors. this is according to a person that knowledge to know about this. some have been in air and some could have just been thieves. sort,e of a different winter soldier at a record-setting opening. tom, as you're watching this, you look in fact to it. >> i saw it four times. took ayou so much i worship to it. things, i get up on watched original captain america.

is -- >> as i said, i'm embarrassed to admit this, but i did. i watched kept america one, all right? it was cheesy. those are your top headlines. >> i watched three episodes of game of thrones. andad happened during episode of true detective. they have got to get their act together. >> anger. matthew mcconaughey and woody harrelson, they are true detective. >> us move on to the business week. that means friday, jpmorgan will report earnings and revenues. less than two percent of gdp, tina martin adams is in search of profitability.

>> i think first quarter's window proved to be a difficult quarter. particularals in said expect a lot less from the first quarter. we are thinking we would get somewhere around zero percent growth. >> a question i get at speeches all the time is right up your wheelhouse. or persons of argument efficient the income statement heard are we at a point where revenues are slow. other sufficient they can't get more efficient? >> that certainly has been the case for the top s&p 500. they're not falling and rising, they are stuck in this range. >> a whole list is down. is not all of it. there is some operating earnings growth. certainly, share buybacks or adding a little bit.

the commentary that management provides in all of this. how they plan to use her money. capital expenditures are something that everyone's been looking for for a long time. i'm the tech companies are starting to deploy some of that cash. >> capital spending is critical to watch. we have got to see the capital spending sensitive corporate management suggest that is going to pick up. does everyone's forecast this year. to see some capital spending recovery to really lift earnings. it is a top line, critically. peak.tter, -41% over is their bear market in nonprofitable stocks? >> than what is that? look at those numbers.

>> if you look at the broad index as a whole, it was all the cheapest stocks that rose the most. >> put up that screen there again if you would. >> is not my community of investors. there probably aren't hedge funds and own it. >> when baker -- from bankers up those numbers, does that push them to move ahead with their ipos? twices it make them think about launching these initial public offerings? when prices are rising and momentum is accelerating, that is why we are getting all these ipos this year. 13.96 on the closing.

>> there is no volatility. there's only one thing to do and that is to look at top photos. >> we have three photos today. they're all related. malaysian buddhists offering prayers aboard a malaysian airline. >> i go back to the guy that helped search for air france. he just said, look, we're going to find. we'res take time, but going to find it. >> it took two years to find twa flight 800. was that the one off the coast of brazil? >> a difference is the new where they were going in that one. here, there are still try to pin

it down to one location. >> and it is still so deep as we were saying earlier. number two, and i really like this photo, afghan women pet asked the balance and a polling station in a northwestern city in afghanistan. this is incredible. 7 million voters across the country going to cast their votes. this is democracy. this people saying they want to 44 electionsth. throughout emerging markets. i'm not saying that the u.s. democracy is the gift of america to the world, which admittedly comes from england, admittedly. that is a big deal. >> number one. president obama, as you know posing for itself a with baseball player. that might be the last ever presidential selfie after it was

revealed that it was a marketing stunt by samsung. where is samsung in this? ortiz tweeted out and in the cut retweeted a lot, including by samsung and their official twitter handle. >> they should come out a make a statement. this is a bastardization of the process. where is samsung? i'm lost. samsung, we invite you to come on "surveillance." >> we know why they did it. we absolutely know why they did it. your top the way, are stories. >> making coffee in your car? are going tos offer convenient intelligences for the consumer. that is next. this is "bloomberg surveillance."

we are streaming on your tablet, your phone and bloomberg.com. ♪

"bloomberg surveillance." i am scarlet fu with tom keene and adam johnson. is spoiled forer

choice. -- why some98,000 products succeed while others fail? of executive vice president joins us. insight what were some of the most successful product launches last year? most commonhe thread is playing to convenience. we areso time-tested, so really focused on what we can do to help products that are going to make life easier. some of our top products last year included products like yogurt. it is change the way we consume breakfast. it is about healthy proteins and eating on the go. there's been a big area, two. we certainly had a continued growth in k-cups. convenient salon style coffee at home. i don't need to go to a fancy salon.

i can customize my toffee at home by the k-cup machine. >> sunday morning, i was a slave at home making salon style coffee. >> no, you can't have a fourth cup of coffee. >> the k-cup machine makes it. these do you know that packs don't necessarily provide value? >> instead of a pot of coffee, you related to going to a cup of coffee salon. i can go to copy salon and a three dollars for a fancy cup of affee or more if they get latte or fancy cappuccinos. if i compared to major coffee is more expensive. i can have it at home the way i want. >> what you are great at is you talk to the industry, you go to

meetings. a procter & gamble or budweiser whatever, there are is some young upstart mba that is going andead invent a product whether those conversations in those meetings about in 2014? >> the conversations are really about value, convenient value. value doesn't mean cheap. it means make my life better. when you take new products like k-cups are antiaging products. teeth whitening. a lot of different mop -- products have come to the market. they drive convenience. it is convenience relative to value. in the congress -- the conversations are really about what i do not to just get my innovation on the market, but what do i do to sustain them. we see a lot of products dying in the second year because there's not good support. >> ask about budweiser

limearita. >> what is it you're looking for . you talk about convenience with coffee. what is that thing where the company goes, larry just nailed it. what are you looking for? >> we are really looking for an model ision of a lunch going to fall in line with a forecasting model. what we have seen so often is products fail because i have a lunch model that says i'm going to get certain types of distribution levels. those distribution levels are backed by advertising. the advertising is backed by the fact that we're going to have the product available. so if the product is not available, i fail. >> this is fascinating. >> that is a start of a real interesting conversation. we want to thank gina martin adams, equity strategist at wells fargo securities. >> is an imf infected forex report.

our commodities from her? 91, 90 $200 trillion? that really gets my attention. the dollar goes nowhere. the ruble is weaker this morning. >> coming up in the next hour, arianna huffington joins us to talk about the future of news and sleep. ♪

how does it fit altogether? there seems to be a disconnect. >> it depends on how you look at it in terms of employee base. a lot of the challenges of the ceos around the culture, the stocks not performing as high. so much of the -- so much of it is built on the stocks skyrocketing. >> now that the companies are

public, do executives spend the time looking at the share price? i feel like that is a part of it no matter what will stop >> i think they have to. the employees are looking at it, the shareholders are looking at it. it is so critical. even if they are not concerned about shareholders, they have to worry about employees. you right courageously about the new world. you have a chart on page 32 of your book, which essentially says the old world is over. what do our viewers and listen -- what do our viewers and listeners do? do you leave them behind? or can you have both worlds coexisting? >> i don't know if they will the entire time, but i think it is important that they are able to -- there is a new set of companies that will be going public in the next year or two. part of this new economy. they are making purpose more a part of their products. i think we will see those

replace the highflying tech stocks. aron is talking about affects a lot. utilities. >> in other words, we have to stop the looting. number four -- we have to stop the polluting. identified the need to develop empathy for those affected by -- >> that would be me. >> you buy a pair of shoes and then you get tom keene a pair of shoes. is paying a huge role in employment and jobs. people are willing to forgo a job or take submarket pay. purpose in a sense is becoming a currency. we are seeing this with millennial's over and over

again, choosing lower paying jobs. what is jpmorgan doing to adapt to this? >> it is not adjusting the fundamentals, which is the 9:00 they addressless the fundamentals, they are just using band-aids. >> do you see this with young employees and new entrants at wells fargo? >> i think we are fortunate because we have a pretty selective employee options. people understand that the game is the 6:00 a.m. to midnight, so they are not coming to us unless they are willing to put those hours in. >> this monday as you study for the cfa exam and have no life, we go to aaron hearst and the money question. -- aaron hurst. stand -- a sad state

of affairs. it is a from a question of what they are doing at the time they are working. that worries me. are youre a question of bringing yourself to work, are you able to bring yourself to work. -- you worked 35 hours last week, right? .gov know, i thought it was 35 hours yesterday. >> thank you so much. purpose at wells fargo. >> we are going to be discussing global growth on our ability to manage risks for businesses. the opportunities there coming up. ♪

>> good morning, everyone. i'm tom keene. this matters now to our guest host. a cottage industry of miserable people in the sent desk with a sense of purpose. why would are doing what we are doing? like lemmings off a cliff, we follow the tried and true path. michael lewis about this last week, the new education. we need more one-on-one

relationships. we got to the point where school has become a factory and what we actually need teachers and parents to have a one-on-one relationship with kids around learning. academy like what you described, bringing smaller lasses more in focus? >> it is free and enables every parent with access to the web to be able to provide a first-rate basic education to their kids at their pace. bases,ying it to other are all legal practices constrained to get you to a better life and more valuable life? >> we waste so much time at work doing things that are not. shocking. >> a "surveillance" exclusive. amazing, the inefficiencies. >> so much is about showing face are going through rote behavior instead of getting the job done. >> how long should a meeting be? what lifeguards, they say,

cannot focus for more than 15 minutes. lifeguard is a good barometer. >> seriously, 15 minutes. with no chairs in the room, it helps out. here is a quote i like. purpose is not a cause -- i love that -- it is an approach to work and serving others. purpose is a verb and not a noun. met withy people i over the last decade of purpose was finding the cause -- education, health care, etc. we found a lot of people with a cause have no purpose in their lives. and a lot of people who have tremendous purpose at work but have no cause. it is preventing a lot of people from finding the right work because they are waiting for the perfect cause behind but they do. it is how you approach a work in the estimates with the work is. >> how do you put profitability who are >> people working deeply with purpose are more productive employees, period. >> does apple have purpose?

>> i do not think there is one blanket statement about any one company. team by leader. >> let's come back on this. urst. h a serious book. the purpose economy. we've got much more coming up. hbo has a new show. "game of silicon valley" or something like that. ♪

>> coming up in the next hour -- and this hour am i should say. area the huffington. thrilled to have her on. her new book is "sthrive." aryan a huffington coming up. part of our water question, it is free, it is on @bsurveillance . did you consume wormwood -- more

news now been two years ago, and how? we already got great answers. do you consume more news now than two years ago, and how? @bsurveillance out on the new technological marvel, twitter. this is "bloomberg surveillance." i'm tom keene did with me, scarlet fu and adam johnson. st, is important, serious book him "the purpose economy" is out as well. >> let's get you some of the news. >> some headlines. >> yes. crews searching the indian ocean for the missing malaysia jet are detecting signals consistent with those sent from the plane's black touch -- black box. officials caution that confirmation that still needed to determine whether they are in fact from flight 370. the sounds were heard at a depth of about 15,000. paralympic and oscar pistorius took the stand in his trial in

south africa today. he was accused of murdering his girlfriend revis in cam. he apologized to her family and broke down as he started his testimony. pistorius said he shot reeva steenkamp because he thought she was an intruder in their home. at the box office, "winter soldier" had a record-setting spring debut. the captain america movie from walt disney rang up more than $96 million in ticket sales. that is purposeful. it is also a record for a movie in april. an opening movie in april. to biblical epic "noah" goes second place, taking only $70 million. jacoby ellsbury had a for the new york yankees this weekend. and crashing on him, no hits. he has been seven for 10. phenomenal weekend. >> noble that a red sox fan will mention that. >> opening at yankee stadium as well. >> will you be attending?

>> i will be attending. actually, no, i'm not. but it is going to be 50 degrees and raining. . what's we will be right here working. -- >> we will be right here working good libyan rebels releasing barrels of oil in the market. ultimately it is a pittance. as two and a half million people join the middle class the next theears -- the book about tension between balancing resources and growth. matt, what is the key to getting this thing right, growth and resources? >> china is trying to do in 15 years what it took the u.s. 100 years to do in terms of building up their middle class. obviously this puts an enormous strain on resources. our observation is what hat -- what has to change is a set of management practices to make it possible. whether you are a government, china cannot achieve its growth

levels. >> what are some of the changes that need to be made in the macro sense? >> in a macro sense, managers need to be ready for a rate of change that is much faster than what they have become used to. is -- was a huge theme at davos. >> what else? >> they have to be used to change is coming from very different markets than they have before. if you are an automaker, you care what panasonic sa battery innovation curve looks like. a very different thing than i had to worry about five years ago. asis now core to my success a manager. >> you talked about how management does not measure resource productivity. what is it mean? what do they focus on incorrectly? >> if you are a cfo, you know exactly what the return on capital employed is to two decimal places. you actually know what your return is for employee. you have no idea how much return you get for the resources you put into the country. >> i want to open the conversation a.

let me make an observation. as beingon uber transformative. big deal. -- itt $33 this weekend was raining so hard, 33 dollars to go half a block. part of this discussion is an elite discussion. in your purpose economy and that her economy, matt rogers world, it is an elite discretion. >> i disagree. >> lease. >> the standpoint of drivers. enabling a whole new business for those drivers. same thing with whole foods. a lot of these businesses that are helping provide purpose, what they are doing is changing supply chains, changing the labor force. don't just think about it in terms of the consumer. >> in energy in china, can we make this work for the half of the world that is not benefiting in the middle class? >> one of the things that is most exciting is the ability to bring these technologies to bear

on that half of the world, and given the power of energy. all of a sudden if you bring energy to a community in africa, the benefits and health is even larger than the economic and if it. >> for example, water, the better use of water? >> bringing in water. bringing in solar to power things like cell phones. the ability to bring simple energy and water to the market is enormous. >> fracking in syria is a silver bullet. it sounds like you don't necessarily agree. a wholeing and development of unconventional oil and gas is the same kind of trend. it is bringing information technology in traditional technology that makes whole new resources economic. >> how would you bring a purpose to exxon mobil? you consulted in exxon mobil right now, what will be the number one thing you would say to a giant norma's energy company? >> the big thing is day to day and employees and how you help them have deep relationships with coworkers. as a product, they have to figure out a way to fundamentally add value. >> can you come back?

this is a fascinating topic. >> we could talk about this for an hour. matt rogers joining us out with a new book their >> america leads world in gdp but fails in so many other ways. we will explain next.

>> this is "bloomberg surveillance." let's get you some company news of starting with the new york state investigating credit suisse. the top banking regulator wants to see if the firm helped clients evade new york taxes, according to someone with

knowledge of the matter. federal prosecutors have already been investigating credit suisse for three years now. drugmaker has a deal. sun pharmaceutical is buying its rival for $3.2 billion in equity. it gives some control of the other companies generic drugs. david ortiz's selfie with the president may push the white house to dam the pictures with president obama. samsung and ortiz teamed up to take a picture last week during the red sox team visit to the white house. what was thought to be a spontaneous moment may have come about through ortiz 's emotional deal. samsung has remained silent. >> that is the biggest problem. where is sam some? tone deaf? >> at is tone deaf and inappropriate. admittedly, it was the president --self with took the selfie no, in south africa and nelson mandela's funeral. you can argue he is the one who

launched -- >> he is not allowed to take selfies with other leaders? >> it was a president for him taking his own selfie. i saw it on twitter, a photo taken in 1905 of the original selfie. with one of the big ox cameras set up. three heavy hitters doing a selfie. someng really risks branding and backlash as well. >> became a backlash -- >> no spoilers? thrones" premiere for me is tonight. hbo crashed because the debut of the season four premiere was yesterday and people were trying to get on at the same time. this is not the first time it happened. breaking news, exclusive from tom keene. also making a permit after "game of thrones" was "silicon of tech that makes fun

culture. created by mike judge best known for evason butthead an "office space." but it is not an easy sell. look at what mike judge had to say. >> it is hard to really root for somebody who is a billionaire. it is hard to make them a main character. especially this show, which is so aspirational and bad news bears. these guys who have nothing who are trying to break in. woefully people hook into that and root for that. got a billion dollars it is kind of hard to sit at home saying, i hope this guy find happiness. he's got a billion dollars. he can go buy it. i think it is harder to kind of root for those guys. >> it is fun to write for the billionaire. they are so crazy. >> not so. >> are the billionaires the heroes of the villains of the show? what's hard to say. emily chang of "bloomberg west"

to actually watch it, they got an advance preview. they said it actually get that right. >> it rings true. >> the guy did beavis and butthead them and their slogan was do no evil. this show isbout picked up the college roommate right. every billionaire has to bring along the college roommate who has a phd in biophysics. >> i am looking forward to watching the show. i worked in silicon valley for five years and i think most people want to see silicon --ley fail, because >> why? >> i think jealousy first and foremost. and there is so much hubris in silicon valley, there is a desire for them to have to confront reality and i think it is hard -- wanted to see these people did almost nothing to make this money, to see them suddenly fall and be more like the rest of us. >> isn't silicon valley conscious of this? >> yes, a lot of people i know in silicon valley say they don't

even identify with silicon valley itself but they are playing the game, sort of rooting against themselves. >> i look at what we deal with every day at "bloomberg -- "bloomberg surveillance," and the question i ask is whether silicon valley is playing by its own rulebook. -- like in society your book, "the purpose economy," do they play by the own rulebook to give them purpose? >> you can innovate your way out of everything. in terms of accounting, etc.. start up companies have a lot of purpose because they have a tight team working hard to change the world from their point of view. they get caught up in that game. i was caught up in that game in silicon valley. >> how big of a tool did you become? >> i was a pretty big tool. probably a power tool. valley the new wall street?

bad bankers? >> no, i think it is the same thing. a sense that they are not doing the hard, real work. >> fascinating. let's get to a data check because it looks like we are continuing the selloffs from the end of last week. futures down almost nine points. >> good morning, everyone. "bloomberg surveillance" on television and radio and look at all of our video on bloomberg.com and our video as well. bloomberg radio plus and radio worldwide. i'm tom keene. with me, scarlet fu and adam johnson. our guest host, arron hirst -- aaron hurst with his new book "the purpose economy," a series look at what you may take lightly but actually really quite interesting about where you are going in your life, where i am going in my life, and where adam johnson is going in his life. >> i know where i am going, to london. it is the conversation about purpose.

american -- america is actually number one? think again. here's why. there is a new livability survey led by the social progress imperative where the u.s. ranks 70th and health, 39th in basic education, 34th in access to water and sanitation. this is upsetting. for more on why the u.s. is 16 steps behind top-ranked new zealand overall, the index sponsored joins us from london. what is america getting wrong? >> well, i am not sure what america is getting wrong. i think the social progress index tells us that gdp per measures not the only of national progress that we should be focusing on, and the social progress index will help the u.s. and other developed markets to identify those areas

with they need to catch up social progress for all so that it matches progress on gdp per capita. ,> we can have an aaron hurst want to talk about his new book at how do we -- how do we refocus the debate so it is not just one author or perkins -- person talks about it but we are all part of this thing? >> that is where the index really could have a big role to play. just another index but really as a bit of a tool. as you read our publication, it fills out the blueprint of how government, civil society, and business, where it comes together to tackle huge society issues. you can get pretty robust answers in quite a short timeframe. the index, i think, can act as a

tool or catalyst to drive the collaboration. >> i know that new zealand and switzerland came in first. baby george and his parents are making a circuit of the best places to live in the world, as the prince and princess visit new zealand. but within that, the current -- is that america says, that is great but we are the world's defense. we have the defense calm -- component and we have to be the adult in the room while some of the smaller economies can do better at being good. how much of a unique story is the united states? >> it may have a unique role in don't think, but i it is unique in other ways. if you look at all the g7 economies, we all struggle on one of the measures, which is a section of foundation well-being . things like greenhouse gas emissions, percentage of water

used compared to total resource. all the developing economies struggled on those scores. where, it also points you said the u.s. the 16th but g7 countries are between number 10 and 20. it should help those developed economies as well as of the developing to look at other where they should be paying attention. >> thank you for this wake-up up call. u.s. overall 16th in your new study. much is thist, how the broad scope of america, we do things differently, we of a different culture and society? >> i don't think it met -- at the end of the day we are human beings and we need certain things that well-being. i think the u.s. has started to lose sight of the things that really mattered and thinking economic performance is the only

measure of success. i think it is incredibly foolish and shortsighted. >> it is interesting as we get our college application -- so far, intakes you other words. coming up, arianna huffington will join us to talk about her new book. ♪

>> good morning, everyone. "bloomberg surveillance."

seven, dowgative futures, -49. scarlet fu and adam johnson with me this morning. let's get started with adam johnson. >> the world's largest election is underway in india. more than 800 million people -- casting ballots in more than nine thousand -- rounds of voting. the sec says private equity firms have been inflating expenses and fees charged to companies and was the own stakes. the commission looked at 400 firms and found more than half charged fees that were unjustified and some not even disclose to investors. this, by the way, according to people with knowledge of the matter. by the way, some of those fees appear to have been in error. --ust want to and with this mickey rooney has died. the actor appeared in more than 200 films and more than a decade. he made his debut at age six and

became one of the big hollywood stars in the country. decades later, he launched a comeback on broadway. thats 60 years old at point. he had parked more recently in movies like "night at the museum." he was 93. >> he had such substance. the pros adored him. up and down and bankruptcy and success of that. he just had such substance. winston churchill, right? never surrender. keep going. career -- anding life of 93 years. that he lived joins us. an important show this morning, "in the loop." >> guest host, sallie krawcheck. c has been the ceo of sanford bernstein and then smith barney and moving on to city wealth management and bank of america. in focusing to be back on banks. jpmorgan kicking off the banking earnings season. this friday.

we are going to talk about all the issues around banks, which really boiled down to two. regulations and bank pay. how do banks keep their talent? jobskeep leaving for other because of regulation. what i find is profitability of fixed income. just don't understand how you make money in bonds. >> jpmorgan earnings forecast declining 10%. a is it safe to say there is real mystery to friday, you don't know what the banks are going to do? think, again, it will be the focus on fees and fixed income. >> thank you so much. let's get to our morning movers. pfizer, down in the premarket trade right now. pfizer unveiling a new drug to treat breast cancer.

it's topped tumor growth for a little over 20 months -- it stopped tumor growth. it will add $3.1 billion of sales by 2020. pfizer needs to come up with another blockbuster to replace lipitor. bristol-myers, etc.. a big deal. >> coming up, arianne huffington joins us to discuss her new book "thrive."

>> this is "bloomberg surveillance." i'm scarlet fu with tom keene and adam johnson. our guest host is aaron hurst, the author of the new book "the purpose economy." >> very good. just that simple. futures, negative eight. we start off a little rocky. we got an interesting topic. how about this quote -- focuses -- focusing is about state -- said no. that is according to the and john's. we begin the work we dreading the modern work we put it our digital exhaustion, but -- the path to sobriety may be saying no. i all accounts, arianna huffington is a success. she got there and here by saying no. she joins us in support of

"thrive." congratulations in the book. you get peggy lee in the beginning of the book. nasim in as well./ when did your life change? >> my life changed actually seven years ago yesterday. >> i saw that on twitter. >> when i collapsed from exhaustion, burnout, and food deprivation. i hit my head on the desk on the way down, broke my cheekbone, got four stitches on my right eye. it started me on this journey of asking myself the question that good philosophers used to ask like, what is a good life? what is success? by conventional definitions of if you are lying in a pool of blood on the floor of your office, you are not a success. >> critics say you have been driven -- coming out of greece, you have been driven and be

successful. how do you bring the advantages that someoneworked successful has over to someone less successful. how can those struggling in america thrives? >> what i am saying in the book, we are all living under the collect the delusion that the way to thrive and succeed, the more popular word, is to simply burn out. that that is the only way to exceed. because we have a lot of role models who have done it this way, we believe that. but it is totally untrue. i was talking to oprah the other day for her show, and she said at the beginning of doing my show, i used to be so exhausted that i didn't have the energy to take my clothes off. i would sleep in my clothes. do you really think that oprah is oprah because he didn't have the energy to take her clothes off? >> i sleep in my bowtie every night. [laughter] >> tmi file. >> i totally believe it. instagram of him sleeping in

his bowtie? >> i want to get something you but a couple of weeks ago -- get to something that was written a couple of weeks ago. she wrote in "foreign policy" as a pushed back, saying recline. if we're going to fight the culture of workplace ubiquity, we need to do it together and we need to bring our husbands, boyfriends, mailed colleagues along. they need to lean out in solidarity. what does sheryl sandberg say? me a great- she gave endorsement. she talks herself about getting eight hours of sleep. leaving facebook at 5:30 p.m. to have dinner with the kids and then working after that. we are seeing there is no trade-off between performance and nurturing human -- human capital. look at star athletes.

it is all about winning. the integrated sleep, meditation, yoga practices, because they are more effective. >> i want to bring this back. i think it is important to the 10 thousand women right now throwing guest a o kilo at the tv screen because they are making $122,000 a year and they can't afford the construct to thrive as those successful can? how do you success -- suggest those with less advantage can thrive? >> what i say in the book -- wherever you find yourself, whether struggling to put food on the table, the one thing you can actually control is our own attitude what happens in our lives and bringing a sense of wherever we find ourselves. i think the problem we have right now is we are actually focusing so much on the first

two methods of success -- money and power -- that we are missing out on the third metric, i will well-being. >> in the appendices, she has 40 pages on here is what to do. >> and giving was a part of that. it is all in the family because as it turns out, you wrote a s book -- aaron hurst' he powerfully sums up the purpose economy. what is it about purpose, giving, the notion that we are becoming bigger than ourselves? stronger,faster, smarter and now we are trying to get more human. i think we're getting to the point in the millennial generation. they are mandating that. in your business, how are you helping your employees improve the well-being? a lot of ceos are struggling. have an of all, we e-mail policy that makes it

clear that once you are off work, you are off work. you are not expected to be on. unless there is something urgent that happens and we need you. ms where people can go and have a nap. >> please, can this be a federal law? >> bloomberg should probably institute nap rooms for you guys. >> with the bowtie. >> breathing classes, yoga classes, healthy snacks like you have -- although yours are not entirely healthy. >> modern-day philosopher david letterman, you quote him later in the book of giving. lesstioned those advantaged earlier. for those advantaged, to give more. is there a new charity? >> first of all, it is whatever charity. it is not just money. it is also time. it is also just little things like making personal connections with people we otherwise might take for granted in the course

of our day. our cleaning crew, the barista in the coffee shop. daily acts of kindness and conscious living that transform the way we live our lives. >> you talk about ess isormation, our busin transforming incredibly, almost seems like weekly. digital media. bundlinga pioneer of content, getting it together and getting smart people to talk about it. where is it going over the next year? >> one of the changes connected to what we are saying is, while it tradition used to be if bleeds, it leads -- put bad news on the front page, and it will do great. cial, we are finding what people like to share is actuallygood news, examples of generosity, ingenuity, compassion, that is the kind of content that gets mo st play. we have a dedicated section

called good news, and he gets incredible traffic. >> speaking of dedicated newsman, you have to go off to the radio studio where bloomberg surveillance continues. it is monday morning, a long week. you will be heading to washington later on. we want to continue with the theme of the news industry and how it changed. our twitter question of the day got straight to it. do you consume more news now than two years ago, and how? the first answer -- admit, i read all of those as well. team. >> i like it. arianna, where did you get your news? >> of course, the huffington post. >> beyond that? what's the huffington post now has 850 journalists, 11 international editions that act

like euros. bure have -- that act like aus. editors, reporters, international editors. 44% of our traffic now comes from outside the urine -- the u.s.. cotrts.ork times and >> the next generation. >> may tell the full story more so than you -- would you get on twitter. >> and they don't get it through volume. >> i just want to see the one or two really clear stories of the day and through the lens i understand and appreciate. >> what is your favorite app? an app of my favorite is called antisocial. one of the problems we have with technology is we are constantly connected, and if you want to

really create something, whether an article or anything at all, we need to disconnect. antisocial help see. >> you heard it from area hoping to -- arianna huffington. "bloomberg surveillance" on radio continues. ♪

>> good morning. monday, april 7 and we are live from bloomberg world headquarters. you are "in the loop." sallie krawcheck is "in the loop" and my guest host.

one of the highest ranking women in wall street history. head of smith barney, sanford bernstein and former president of bank of america's global wealth management. we get her ceo "on the markets ceo pay as numbers coming out this week. earnings from banks kick off this friday. here's a look at top headlines, investors hold off tech stocks in asia and europe. among the losers, china's japan's softbank. nasdaq likely to open lower this morning. the recall crisis does not appear to be shaking investors in general motors, they are keeping the faith despite gm losing more market value in the last month. due to demand for the season premiere of "game of thrones." the same thing happened last month with