stellar student economy, that could be the better bet, and right now people are not really seeing it. >> lisa abramowicz >> this is "market makers." >> goldman sachs and morgan ststanley earnings beat estimats and shares are soaring today. first-quarter report still shows some potential warning lights ahead. tale of two sodas, coke and pepsi both out with earnings. they're looking to diversify out of sugary drinks. one is doing it better than the other. the new women. when it comes to fashion, they just might be. the publisher of gq will tell us why men are more concerned than ever about how hot they look.

welcome to "market makers." we are going to spend some decent time talking about how hot, amazing and stylish fashionable guys are. adam johnson is here for that. >> we will have fun and i might learn something. you are a fashion plate yourself. >> you have heard that before but that dates you. they don't say fashion plate anymore. i think that is from the cheryl tiegs area. >> you will come up with something. >> we need to get to the big earnings story of the morning. goldman sachs and morgan stanley , shares of both companies are soaring after they beat analyst estimates on the top and bottom line. for goldman sachs, it was by a wide margin. devon ryan is here to break it down for us.

surprise, surprise, goldman sachs wins. >> it was a good quarter for goldman sachs but you also have to look at what it is coming off of. the bar was reduced throughout the quarter. they beat lowered expectations. if you look at results, and upside surprise but the quality beat question. i wouldg and lending suspect is the big driver. incentive income which can be volatile helped. >> and yet goldman sachs did it again. it beat by a long shot. what does goldman consistently do right that the others don't ? >> it is relative to her expectations were. earnings were down a bit year on year. it's still a pretty challenging revenue environment and fixed income was down 11%.

that was better than what we saw in the big bank peers. that is all good news but at the end of the day, you have to take a step back and say this is still a pretty difficult environment for them. four dollars of earnings is well below what they would like to be earning longer term. >> fixed income is traditionally where they score quarter after quarter. it is all just trending downward. fixed incomehat for goldman sachs specifically is one of the biggest revenue drivers, about 30% of the overall business. that business is facing a combination of both secular pressure which are not really a beijing. there is also cyclicality. to the revenues. >> the first quarter of the year is normally when banks precious. they should be -- crush it. they should be more worried about the summer. >> again, i think that speaks to

the cyclical secular elements. the secular elements are higher regulation, higher capital requirements, changes to market structure -- all those things will impact revenues. we are probably not getting back to the levels we saw in the pre-financial crisis. that is our starting point and you have to think about where we are from a cyclical perspective. there are still some areas were risk appetite could improve on that could drive better client volume. risk appetite on behalf of clients or goldman sachs? >> client risk appetite. we have had low rate environment. there is uncertainty around rate policy. clients have been sitting on their hands. they want more direction as to where rates are going in that could increase activity. >> morgan stanley is also out with earnings but goldman is talking about getting out of dark pools.

how significant is that announcement that it is contemplating leaving dark pools? is not a material driver of results of if they do, it will not dramatically hurts their business. however, it's a reflection of where the industry is knowing and the way people are thinking about being in dark pools. >> do you think that's why a stock like goldman sachs is trading at 10.5 earnings? >> yes but you have to think about goldman historically was generating 20% on average. today they are generating an roe of 10%. if they cannot get that up, it will be hard to have the stock material higher. >> do you feel morgan stanley got her groove back? >> i do, and it's a funk and

their business mix. they have reacted post-financial crisis and have shifted the businesses they are in. they're focused on asset and wealth management and those businesses are over 50% of the revenues. those are more steadier aboutsses so if you think morgan stanley moving forward, it is a more predictable company and has a good growth profile in those wealth management businesses. >> why did they stay in fixed income? it's such an expensive business to run. if i am ramping up private wealth, why keep around a bunch of high-yield traders that want to get paid $5 million per year? >> i think is still an important business for clients. fixed income today is roughly 10% of their revenue so does not drive the bus. pre-financial crisis am a it was closer to 30%. it is important but in the scheme of the entire firm, it's a much smaller percentage of the overall company. >> who gets better marks, morgan stanley's gorman or lloyd

blankfein at goldman sachs? transitiontanley's to active wealth management in hindsight is been a smart move. as the firm moves forward, the businesses they are in are less capital intensive. about the ability to return capital to shareholders, look at morgan stanley as the one that can do that over the next few years and that will be a big driver of the stock. do you remember where morgan stanley was a few years ago? people said i cannot believe how far they have fallen. what a comeback. thank you for joining us this morning. he is the managing director at jme securities. given morgan has stanley and goldman sachs a pass. let's talk about google which came out with earnings last night after the close and they were bad. they missed on the bottom and top line. despite the fact that people are

paying less for ads, let's introduce you to mark mahaney. what is your take on the earnings? >> you had a modest missed quarter on the top and bottom line. there was some one-time costs related to some recent deals. they announced the company called nest. google does a lot of acquisition so it's hard to say that -- what they do with them. you had some unusual cost items. overall fundamentals were largely intact. this is the 17th consecutive quarter of top line growth. the search business continues to roll along easily and steadily for google. ats around the business remain intact. >> doesn't mean this is a great time to step in and buy? >> i don't think it's

necessarily a great time, it's a reasonable time to step in and buy. it is trading at 17 times next year's earnings estimates. it is cheaper than it has been in the past and is trading at a modest and into the market. we think it deserves that, we think it is a 15% earnings estimate and has nice new businesses and what google glassful means in terms of search activity. maybe google fiber. they've got a couple of new growth areas out there that should stabilize the growth rate over the next 3-5 years on the core business is in tact. it's one of the hardest does this is to replicate. it is hard to see somebody coming in and taking share away from google. it's a decent entry point. it is not a slamdunk for it >> if we need something to hate on, what don't you like? >> the one thing to watch out for and people miss this -- we call it the lead market.

you think google has strong share in the u.s. but look at them in the u.k.. that account for maybe 20% of all ads spent on the u.k. they are that big of a player in the u.k. what you see is the large numbers or the fact that their market share is about as mature as it can get. for ae this fade down company growing well in that market for 15 years. it is going down to 10% which is pretty good. very few at companies around the world cap -- that consisting the kind of growth. in the bestgrowth case for google and that's probably where the rest of the business will grow. 3-5 years down the road, or one-two years? we think it is 3-5 years down the road. if searches affectively

maturing at a slower rate, does google effectively have to make all these acquisitions? >> that's a very good question. there may be an element of that. interesting that facebook as a contrast has made acquisitions to defend its core user base. it's instagram and the attempted by snapchat and maybe the whatsapp. google has never had to defend its search core business. it has never had to buy the next disruptive search business. it is looking to do acquisitions and that's good management strategy. it's good growth strategy and that's what investors should want to see. >> to compare that to facebook, for example, it makes sense for facebook to buy instagram because instagram is a huge threat to facebook.

many people think it is more relevant but when google makes acquisitions, they don't need to buy google, jr? >> that's the history of the last 15 years. there has never been a really competitive -- compelling search engine for people to go to. that's says something about their competitive moats around the business. they have build out new ancillary revenue streams. some are more obvious than robotics like youtube and android and building up the mobile system they have been successful with. some of the newer things are a little bit odder. i think nest is a perfect play into the google core businesses. the robotics is more of a stretch. google is trying to make sure that all users around the world come onto the internet because if they do, google can monetize that. >> one why they do that is facebook. facebook is announcing earnings next week. the estimate says earnings will double to $.24.

is that overly optimistic? areo, i think those reasonable estimates. there is a lot of momentum behind facebook and a lot of new advertisers still coming onto the site. there are still two buckets of ad revenue -- video ads coming later this year and the monster -- and the monetization of instagram. we would probably give a slight preference to google because of violation -- evaluation but we like both stocks. >> you're one of the most followed voices on google, thank you for joining us. let's -- next to eric schmidt. we will be talking about pepsi and coke trying to put a little pop act into pepsi which is not easy when you are in the sugary drink business. that's why pepsi has been so effective in diversifying. >> they need to do something about their flat so the sales.

who needs to give up who rate for hollywood? we got the star power we need right here not only in new york city but in my hood. the tribeca film festival kicked off last night and we will talk to some of the key members. this is "market makers:" on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. , plus we are streaming live on amazon fire tv and apple. stay with us. ♪

>> welcome back to "market makers." let's turn to the soda wars. it's the war to diversify away from soda. pepsi and coca-cola are trying to do with the american waning appetite for sugary drink with acquisitions and new product. for a closer look, let's bring in kenneth shea. what do you make of all of this?

many of us are living our lives and trying to take soda out of it, what are these companies trying to do? quarter was athe tough one for the soft drink companies. as most expected, the tough winter weather made the traffic to restaurants a little light. longer-term, these companies know they have a challenge and what they are trying to do is diversify as best they can to address the waning demand for carbonates. some has to do with consumer movement to more healthy alternatives and some could be attributed to what i would think would be aspartame fatigue. that is the main ingredient for diet sodas. a lot of the diet cola drinkers are looking for a more flavorful alternative. >> they are also looking for something they can eat rather than drink. the thing that jumps out to me is that pepsi beverages account for about 1/3 of sales and

coca-cola is 100%. pepsi sales were up and coca-cola was down. is that the difference? is food a better business? >> it certainly is right now, to be blunt. , there areerm sales other things going on. these companies had to undergo a big restructuring of their bottling operations. they brought them back on board and that wade down margins and returns. they are all planning to release back into the market some way maybe this year. that will probably give l the return toift. even though the top line is tough right now, these companies, because the consolidation is so high, coke 2/3 of theontrol carbonate market in north america, return to capital is still in the double digits because of the consolidation. they're able to pass on price increases and manage the operations pretty well. side-by-side,psi

not a taste test, from your perspective, who's got the most positive outlook? >> coca-cola is winning the cola wars based on our data. would u.s. but pepsico say that we are more than just a cola company. we have been investing in juices like tropicana and sports drinks with gatorade and others for many years. they are much less dependent on the sluggish cola business and they're much more into where the consumer is going which is a non-carbonated flavored low-calorie average. they both have pretty good outlooks. i don't have a solid answer but they both have pretty good outlooks in their own right. >> part of being an analyst as you are allowed to analyze and you don't necessarily have to trade. let's talk about soda stream. it was up yesterday on market chatter that someone like coke or pepsi might be interested. what do you make of that commentary?

>> i think that came about because of the coke of investment in keurig and coke said some nice things about the opportunity because it gives them another channel to reach the consumer. having said that, so the stream offers a similar channel benefit but it also comes at a cost. if you are a coca-cola or pepsi bottle or result beverages around the corner at a convenience store, i would think this would not be a good event. you are basically circumventing them since the consumer can make their own drink at home. it's not a silver bullet answer to stimulate consumer demand for the beverage industry but it could offer some benefits. >> thank you so much for joining us. what do you drink, coke or pepsi? >> i drink both. they offer both at the bloomberg cafeteria. >> i should know that. what do you drink? >> cherry coke on those rare

occasions. >> you and warren buffett. >> i'm not a soda got the cherry coke is pretty good. >> there you go. >> coming up, the next big thing in movies -- stephanie found that at the tribeca film festival. >> i was there. it kicked off last night and it will be in next ordinary week here in new york city, all the stars are out but guess what else it is? it's big business and we will have more when we come back, you are watching "market makers." ♪

>> welcome back to "market makers." we are approaching 26 past the hour. that means bloomberg is taking you "on the markets."

let's look at the broad market. i only give them out if they are green. if they are read i send them back. you can start with ge. >> this is a big deal, up 1.5%. cents due to three an improvement in profit margins of 50 basis points. in other words, is it possible that u.s. conglomerate like ge can raise prices? that says something about the broader economy. >> if you think about all the businesses that ge is in, many investors look to them without ever looking to possibly buy the stock. they look at it as a bellwether for the broader economy. >> part of margins is the cost side. they have been taking the cost side of ge so consistently. you get a 50 basis pop in that is a big deal. >> you are so smart. that's how they do it at princeton. on the comeback, we will have

more on "market makers." we will speak about the ukraine and have the latest on the talks in geneva. >> if you are into men's fashion and who is not, we have something for you. ♪

>> live from bloomberg headquarters in new york, this is what market makers." >> welcome back. joined by the one and only adam johnson. to the to take you newsfeed. >> chinese micro blogging service weibo has gone public. it raised 286 million dollars in this ipo and shares were priced at the low end of the range. they have not started trading and we will tell you when they do. disney has decided to raise its own minimum wage. the company has offered to give entry-level workers at disney

world in florida a 25% raise spread over two years and will boost their pay to $10 per hour. i am glad to see this. hey americans money because they work hard and they deserve it and they will go out and spend it on -- and that is good for the economy. my ticketgoing to up for disney world, so be it. >> have you been there lately? >> it's awesome. >> gets expensive. >> yes but i prefer six flags magic mountain. >> new york is expanding its investigation into high-frequency trading. . hasyork attorney general sent subpoenas to six high-frequency terms -- firms. know about theto special arrangements at traders may have had with exchanges and dark rules. -- dark pools. >> now we need to take a turn overseas. secretary of state john kerry is in geneva for talks with eu,

ukraine and russia as tensions rising crimea. in moscow, vladimir putin says he has the right to send troops into ukraine but he hopes he won't have to. ryan chilcote is live in geneva right now. he -- they are still talking in geneva. they have been talking for 5.5 hours which suggests they are getting into substantial dialogue. the russians are demanding some serious changes in ukraine like decentralization of power and ukraine giving a written guarantee they will never become part of nato. these talks are supposed to and 1.5 hours ago but they are all still in the room. the is the first time ukrainian foreign minister and the russian foreign minister have been in the same room to discuss the crisis. there is a lot of pessimists that don't think these talks will deliver much. both sides are very entrenched

when it comes to what they would like to see coming out of the talks. >> the russian president has made some comments. can you walk us through what they mean? >> actually, it's rather astounding. aside from him saying he will pull back the 40's thousand -- 40,000 russian troops, nevermind the fact that ukraine says some russian troops are already inside ukraine, special forces and guys from the russian 44th airborne. the russian president in a televised address said he hopes he does not have to send troops into eastern ukraine. that is pretty interesting, suggesting that he might feel he has to send troops in. the other interesting comment he made is he said eastern and southern ukraine were always hard of the russian empire up to the 1920's when he said the , godt leadership decided knows why, to give it to

ukraine. complained that it was given to ukraine in 1954. instead of building bridges into these talks, many people watching the comments think he is burning bridges and perhaps laying out the justification for russian military intervention in ukraine. >> two days ago, the russian said thatnister russia did not want to interfere in ukraine's internal matters. all of a sudden, vladimir putin is changing the 10. does this tell us that vladimir putin is the only one running the show? >> that's a very good point. that is certainly the case. wasrussian foreign minister supposed to fly directly from the far east to this meeting in geneva. instead, he made an unexpected six-hour trip to moscow to meet with vladimir putin and that's

when we saw this change of rhetoric from the russians. this is the first time we have heard any kind of justification, but territorial historical justification for a proper him russian military intervention in ukraine. it is quite extraordinary and unprecedented and we also heard the russian resident say the ukrainians are using force and aviation against their own people. he said that alone would be grounds for russia to send troops into ukraine. remember when the russians during crimea said there were no russian troops there -- today he said there were russian troops in crimea. it's like saying that i told you there were no troops but i was lying. people say maybe this time around, if there is more intervention, it would be proper russian troops backing up the militias in the east of the country and we already know the situation has turned violent and deadly there. >> thank you so much. having you break it down, thank

you so much. else who can help us break down what is happening is peter cook in washington. you are looking at whether or not the u.s. sanctions really have any teeth to them. in theory, the u.s. might turn up the heat. what does that mean? >> both the united states and europe have been talking about the possibility of more sanctions if these talks in geneva do not reduce serious results. senior administration officials say a complete assessment of the talks will have to happen but they are ready to go with more sanctions, the most likely move is expanding the number of putin cronies on their sanctions hit list which means assets freezes sa inspection. there's the possibility of more russian banks being sanctioned him and and nine them access to the international financial system. on idea of sector sanctions

entire russian industries is out there as a potential threat. the sense we get is that that is on hold. that is a stick that will be ifd for now and used only russian troops, for example, move into ukraine officially. that's something the united states and the european union are pushing back hard against. the other idea is more nonlethal aid for the ukrainians. that is something john mccain is talked about but he wants the legal variety. this morning, we were talking to ambassador richard haas and he sets we need to significantly turn up the heat and sanction the number of the banks, not just the 16 largest. why isn't the u.s. being more aggressive? >> it's a question about escalation. there have been suggestions that everything has been a slap on the wrist. banks was pretty significant.

bank has effectively been blocked from accessing the international finance system. do they move into the top 10? does europe get on board with some of these sanctions? there are concerns in europe about what the reprisals might be for them economically if they go too far. individual countries might feel the pain more than others. a good example is a fan on russian diamond exports. not to big deal but folks in belgium, the world is diamond trading center. the industry has been pushing back and got germany with a lot at stake here. that they are the biggest trading harder with russia. specific german companies with a , these arehere companies that have a big stake in you can be sure their voices being heard in the german government as these ideas come up and you have a whole host of companies or mother european countries that have a big stake

in russian they are worried that certain sanctions could hurt their individual companies and countries and that is why there is not unanimity. you need all 2080 you members together to impose the sanctions. that's why there is discord and why these sanctions may not have the same kind of pain for russia as people might hope because they simply don't go far enough. >> thanks for helping us sort it all out. up, movies with an edge -- what else would you expect with a film festival cohosted by robert de niro? it takes place in downtown nyc. that happens right here. there is no time for corny films, it's about edge when it comes to the tff. we will dig into that when we come back. you are watching "market makers." ♪

>> welcome back to "market makers." the tribeca film festival kicked

off last night in new york with the performance by rapper naz celebrating his 20th anniversary along with a documentary about making his first album. integral partan of the city's art scene, dozens of films will premiere at tribeca over the next few weeks and i spoke to two of the forces behind the festival, chief creative officer jeffrey gilmore and programming director janet rterranova. these are the two who watch hundreds of movies to give us the best. >> we start working on this festival literally one month after the last one stops. you watch a lot of films and short periods of time like three months we will watch six or seven films a day but you have to be open to different kinds of films. that's the most important thing so you don't just choose one kind or another. you want to do the whole spectrum. >> what is the right mix of

first-time filmmakers and established? emerging mostly filmmakers which can be first or second time and we have a mix of some more established filmmakers like roman polanski and a famous documentarian. we try to create a balance. i would say we are probably heavier on newcomers. that is one of the main tenets of the festival is discovery to bring new voices into the world for the audiences. >> i know you don't have a favorite film but as you go through dozens and hundreds of films, is there something you're looking for, like a feeling? >> i always say originality. it gets down to quality but you look for something that is original and something that catches your attention. after you've watched thousands of films over my lifetime, you get to a point where you say that is different and you did not expect that. that is a great thing to happen. it is execution but it's also surprised. >> what is different about the

tribeca audience than other festivals? >> it's new york. it's as sophisticated an audience as you can find but it's also something that gen and programmingsted in things that don't necessarily have to be commercial or be necessarily have an eye toward the marketplace although we have a lot that are. there are many phones that get bought out of tribeca but that's not our singular agenda. >> when the festival began, much of it was about rebuilding tribeca. now you have gotten so big, have you outgrown tribeca? >> i don't think we've outgrown tribeca. we live by hists community and that is downtown. there is a whole range of communities in new york in different filmmaking communities. workrms of how to showcase to audiences even outside of new york, we are looking toward what a festival of the future will become. that will have some online presence and be a festival which

utilizes festivals not just for visibility but hopefully to jump into other markets and hopefully to be available for audiences are different formats. where filmsabout are headed and delivery systems and pipelines and digital strategies. we should be talking about content. what are the new kinds of content? how is narrative intersecting with gaming and the new business? that is what we are trying to have that conversation about. >> what about the music market? this is the second year in a row you're kicking up with the music documentary. what does that say about the direction you are headed? >> it is timing and we are fortuitous to have a film and nas having the 20th anniversary of an album that changed the world of rap when it came out and have him come and perform after the movie is lightning in a bottle.

music is very much a part of filmmaking and storytelling. if we can find films that can celebrate both, that's great. film and music go hand-in-hand. days, festivals were very insular of vents. you have to know about film culture to come into it. tries to do isa talk about music and sports and fashion and business and politics -- this whole spectrum of issues that are introduced not only through the documentaries we show but a range of different kinds of communities which are -- we reach out towards print >> do you have a favorite movie? >> not in the festival. i have a favorite childhood movie. " ghostbusters." there are moments in time where there is that movie where you can capture a part of your life. that would be one but there are

plenty of movies. >> there are directors i love like kubrick and martin scorcese. >> is there anything at the festival you're most excited about? >> i'm excited about the quality of the documentaries. movie,"" beyond the brink." watch movies about serious and difficult subjects. it brings you into the festival with different stories and leaves you wanting more. geoff gilmore is a true authority. when he left sun dance, it was scandalous to go to tribeca. they are trying to expand the festival. have you ever been to it before? >> i've been to the toronto film festival and it is great. you know willople have been to tribeca and it has been closed up at this year they are trying to expand. last night was the first night they actually have the first

showing at the beacon theater and they sold tickets. the public could go because in the past, this was very much a vip access events. film makers are looking for bigger platforms for sponsors but they are trying to connect with the audience more. last year, they opened up with the film documentary and this year these hip-hop stars are making their way. >> it makes sense you would make it inclusive. this is the age of twitter where everybody has a voice. there are no editors to exclude the public which frankly is the audience you are trying to get. >> when these events are closed to those in the industry, you forget what makes a good movie, people buying tickets. >> it's called sales. clothes.k about men are spending a lot of money on clothes. this is me at a custom suit

place and i will take you there. it's in the basement of my favorite sports bar on 26th street. we will be right back. ♪

we've got a special hour coming up on "market makers." the publisher of gq will be joining us to talk about the publishing business and the men's suit business. to do a little brushing up, i decided to take a visit to a custom suit shop.

aynesworth is ace boards bar. >> i'm here to see brian. >> the secret is below ground. it's got a hush-hush custom suit shop where the money men of manhattan by their close. brooksties from albert have gone below ground to get suited up. locke.did this forryan >> is about creating something that fits your personality. >> a skull and cross bones. >> you can do special lining and certain buttons, everything to make it your suit. >> it's not the most expensive game in town but the whole underground thing makes you feel like an insider getting exactly what you want for it >> we have many guys interested in american psycho. tos has a nice greyish hue

it. the fittings can take up to an hour and the suits 4-6 weeks. you can go back upstairs to the bar afterwards and party while you wait. >i've been going to that bar for years. >> has that existed for years? >i like it. >> whenever there is an alabama game, everybody goes there. like a white bloodied sheet inspired by both american psycho?" that is more demented and misogynistic. >> it's a little weird. >> people actually buy them? >> they sell a lot of that line which is odd. >> who would date a guy like that? they had this booming sports bar upstairs and guys are coming in on a saturday and sunday and they realized what young guys need and that's custom suits.

they put this together in the basement. >> guys are willing to spend that kind of money? >> they are doing huge business because they hired former guys. >> not only do they show all the big games and you can buy custom suits, they have really beautiful women bartenders. >> gorgeous and they have a dj. it's a good spot. they did not make me a suit but they made me for shirts. >> those guys understand marketing. how do you spend money is when you make money. the next hour we will take you" on the markets." >> people long and commodities are making money with natural gas up 3.6%. the injections into the stores are not as much as people thought. we are not storing as much because we are using it to keep warm. it is cold out there. we can oil her up because of tensions in russia. russia is one of the biggest wheat producers in the world. when you talk about sanctions, they might take stuff off the

market. >> i recused to wear winter coat. we will be back and a moment. ♪

♪ >> live from bloomberg headquarters in new york, this with theirmakers" schatzker and the stephanie ruhle. target --the world, a men who think it is important to be hot and fashionable, they are taking cues from style icons in every field, with basketball superstar, the king, lebron james. isy know that custom-made cool and they're learning the unspoken rule about wearing suits. today, looking good, and the business of fashion. we are all about men being the new women -- welcome back to

"market makers," i am stephanie ruhle and my partner, erik schatzker is off this week so i scoured the building, the thing for the most stylish guy at bloomberg world headquarters and the only one is the one, the only adam johnson who is here with me now. >> i have never been called stylish. >> against matt miller? >> that would be so. matt, weind of harsh, love you. here are some of the top stories. goldman sachs and morgan stanley are up today, reporting first-quarter earnings that beat estimates. in trading revenue, goldman cked the cover off the ball with earnings of 15% better than expected. apple wants to help you play "name that tune." according to people familiar, apple will have a song recognition feature in their mobile operating software,

helping you identify a song using the iphone or the ipad. the world is going karaoke, scary. and foreign ministers from the ukraine and russia are trying to resolve the crisis. secretary john kerry and european diplomats are taking part. russian president vladimir putin says he hopes he will not have to use his right, he used that word, his right, to send troops into the ukraine. >> men's fashion and style, i want to welcome our guest, from gq -- he knows a thing or two about what men like to wear and about the publishing business in general. this is where we want to start. the magazine business, publishing is dead. >> publishing is not dead. i will have to say that speaking as a publisher -- as a publisher i have to say that this is actually true. for a lot of reasons. the biggest reason is because

the best and that has happened to the publishing industry is digital media. i think that we all look back a few years ago to the recession, the doomsayers were predicting that the internet would put magazines out of business. gq, we just closed the best year in our 57 year history. >> why? because you expanded your ad sales game with a new platform? >> we have seven different platforms in seven different ways of making money when we used to have one. we are not only making more money at the grand platform, because we are getting more readers from the other platforms migrating to print, but the way that we can sell advertising and circulation. >> is that the lesson that came out of the newsweek flip-flop. it was a print magazine and it went digital and then they realized they needed the print magazine. >> this is like a platform identity crisis. >> it is different in different categories.

a company like ours focuses on self-publishing, these are all the leaders in lifestyle. the "newsweek" category is a different category. it is tough to exist as a different vehicle but when you produce a monthly magazine about fashion and lifestyle, that is still the wheelhouse for print. >> with the explosion of digital, has this changed your demographic? 12 years ago you might not have a 35-year-old guy going to a "ewsstand to pick up a "gq. or he may not admit that. >> or he wouldn't admit it. >> we have a very similar demographic across all of these platforms. >> hot guys? >> they are all guys in their early 30's. when we look at a web user or a magazine user, they have a very similar demographic. the interesting tidbits, the ipad is just a huge screen so

when you look at the ipad -- the ipad reader means that they're going to have about $100,000 more average income than the other platforms. >> because they own an ipad. >> if you have an ipad, it means that you are in a very similar elite status. >> you are not reading magazines at a nail salon. >> you may be doing that, i do not say that is demographically-based. but the overlap with those platforms is not that great. that is a good thing because when we go to the advertising market we are not duplicating the same readers, we increase the size of the audience. gqmillion people coming to on various platforms. >> you guys are hitting it right, but why is this when you look at the magazine business as a whole, digital is only three percent of the overall circulation. >> this is a tiny percent of the circulation and revenue, is perhaps what you are talking about.

on the revenue basis of this is going. we are 57 years old and had a lot of time to build the print business, and a lot fewer years for the digital business. we have the digital revenue and that is going to give the -- going to grow at a 25% clip, and it will catch up and you will see a reflection point between those two platforms in another five years. esquireire" has tv. what is next? >> this is the future. >> watch out. channels, we are very bullish with internet video, and we made huge investments in some of the companies and the other brands, disturbing our video, -- content, we are a broadband business with partnerships with yahoo! and youtube. >> how do you actually get paid for that content? >> we bundle the advertising

across the entire network and him byertising traditional broadcast times on that video segment that will then be distributed across the entire network. this is a 9 million person audience for us and that is less than a year old. >> these are the 15 second advertisements. this video will post later with a 15 second advertisement beforehand. >> we are doing that and exploring the native space. >> would you consider a streaming, roku-type channel? >> i do not want to give away anything that you will start seeing us on the boxes and apple tv, that will probably happen this year. >> you said your demographic did not change but can i ask about your female audience? it is hot guys, guys in their 30's. if i was in the market for a hot women his 30's, how many readers do you have with

"gq?" >> people are laughing but i see where you're going. >> dirty percent of the audience is women. >> everyone was laughing but -- >> here is the tidbit, we have the largest number of pinterest users and most of this is female based. >> say that again. >> we have a half million pinners, a huge number compared to the others that we look at. we know this audience is female and the says things about where pinterest is going and the reason that women come to "gq" is the sense of humor. >> that is like saying people read playboy for the articles. articles.y" has >> most women say that they find in most titles, there is not the

same sense of humor that they find in men's articles. i think this is a bawdier humor. our editor had a great quote, that humor is intimacy for men. men bond over jokes and other things. guys are always sending funny e-mails. >> if you haven't seen anybody for a long time, you will give him a long time, where have you been hanging. women would never -- they would raise their voices and say something nice. >> what are you talking about. women -- >> a guy will -- a guy will bust on another guy, but if woman busted on another woman, that would be verboten. >> incorrect. i rip all my girlfriends all the time. >> am i letting you -- >> let me roast for a little while. >> i have to ask you, how do you handle their years of injury and standards.

you have your standards and then institutions come around like the chive, guys want to look at that and it is dirty but it is funny and how do you maintain your standards without losing your audience? >> the simple answer is we have brilliant editors, who know what the market is, who have a point of view and a vision for what we are supposed to be doing and we stay true to that. >> the key is also adapting. where do you think it will go over the next year and what becomes hot over the next few months? >> this depends on what you are talking about. i can tell you in the last few years we have started doing more lifestyle coverage and we do more food coverage than we ever did, we do more travel coverage and i say that we venture into home decorating. those areas of lifestyle become more important to guys, as one style. now a guy is interested in dressing well and he wants to have a cool place, he wants to know how to throw a dinner party

and all of that is part of his lifestyle. in thes to go to a hotel country and pick up some tips about what he will do at home. >> chris mitchell, he will be back with us after the break. he will be here the whole hour. >> a proposition for debate. when it comes to fashion, men are the new women? is this crazy? >> think about this. "gq" named the most fashionable male designer of the year. this is bloomberg, we are streaming and are on live tv and we are basically everywhere. ♪

>> first, bloomberg. >> are men becoming the new women?

luxury brands around the world hope -- certainly hope so. they are targeting young, urban men known as "yummies." why do young urban men care more about the brands that they where and how they look? mr.ave the editor for moyer, this was established as a global e-commerce site. >> can start with you already? "yummie?" talk me through this, what is a "yummie." >> talk us through this. what is a "yummie." >> i think that is fairly ridiculous. are women the new -- men the new women, men are the new men. we are embracing style, and with the dating game and we are younger for longer and more handsome, we are more aware of this, with savvier customers. this is translating into sales

of fashion. >> i actually want to turn this question to both dan and chris. spend thelling to same kind of money? you see women who make $40,000 per year continue to buy $900 shoes. our men making those kinds of choices? >> you see men do two things, they are building more in quantity. they find something they like and that fits and they will buy that the rest of their life. you have a compete -- complete customer in a man that you don't have in a woman. the same thing is that men are becoming more adventurous. they are really sort of branching out into style and spending real money, on t-shirts and things that poor man would would not put money on. >> and this is like kanye west with another shirt? >> things seem to change when "mad men" became a premium show to watch. they said, it is cool to spend

money on yourself and think about fashion. >> i think that that was a bit of a game changer in terms of men smarting up their act and all of a sudden, wearing suits that were cut better, or wearing pocket square, or parting their hair a certain way. i think all of that style was just cool to be casual. in recent years we have definitely seen that guys are buttoning up a bit more, and that is only a good thing, i think, for men and women. >> was mr. porter a bigger success because women simply lacked the shopping experience of brick and mortar, going to stores and walking through and men want the convenience of getting it done quickly by clicking? for 14 has been going years and when mr. porter launched, we were able to learn from their experience and kind of do what was successful and what was right. we have been going for three years with mr. porter, and this

has been a huge success. part of the success is the convenience factor. time is as we know, money and we don't have a lot of it. we certainly don't want to spend all of our free time shopping. i don't think that men enjoy shopping quite as much as women do, i think that this is true so what mr. porter provides is that convenience. perhaps you have lived in an area that does not have great shopping, and you do not have easy access to luxury brands or perhaps you work very long hours, and you don't want to spend your saturdays traipsing around the stores, or perhaps you have gone on a business trip and you have left your shoes back at home, and you need for them to be at your hotel by the time that you arrived. by porter can help get them next wednesday, we can get next day delivery service across the united states and canada, by 1300 eastern standard time. this is a real game changer for

men who are shopping. i understand your website and we also have this newspaper. this is pretty good, i did not know until we decided to have you on here, you have the bmw advertisement in this thing. when did you decide you need to have what basically looks like more of a tabloid to build on the digital website? what does this do you could not do with the website? reach theelping us to customers in a way that they want to be reached. most of our customers will look at us online, or on the tablet or smartphone and that is fine. do a sort of post -- the newspaper that you have, which is bimonthly. placed in certain key areas like hotels or business lounges, but also we do a lot of events and we will hand it out there, and it just helps to kind of spread the word about what we do. we are, essentially, an online proposition but we do have some

print as well. it dovetails nicely with that and it all comes together. there are some men who still want that print product, and q"at is why magazines like "g do so well. >> we have such a great partnership between "gq" and mr. porter. select as our editor working with mr. porter to find a dozen or so pieces every month that we have covered and that business reporter cells. it is a great way to add that content to our experience and if you see the mr. porter post, this is adding a content experience to e-commerce. >> is there a way i can look at what they sign off on an click on this and by this, because traditionally when i look at a magazine and i have noted everything i like, i have to take myself to goodman, this way, this is what the gq editors

like and i will buy this immediately. >> if i look forward into our future, it certainly goes beyond being a media property and being the store. whether this is a brickwork -- brick and mortar store or an e-commerce store, we have the credibility to endorse a product and the reader will purchase the product. >> is the goal to sell ads, or is it to get click-through so you make money selling products? >> is is not on base at all, this is all about selling products. as chris says, gq select really helps make the pages and shop above, and until such time as they have their own store, this is how we are going to partner with gq. it has been very successful, and really good fun. there, that was just on last week and we went into the offices at times square, and the menswear legend

that is jim moore, he started to shoot and it just looks great. >> i would love to know what adam johnson would look like in that kind of gear. maybe we have an image of that? there you go. >> very good. >> i never looked so good. >> how did you pull that off? >> tell me about the american guys. now that you are here in the u.s., what we have -- what we have found is the brits have a corner on style that is far better than the americans. but now we see the americans are catching up. do you agree with that? >> i absolutely agree with that. we find the u.s. is becoming such a key market for us, there is so much potential and guys are getting into it, across the united states, and we have been very successful in our lot -- was inhree years, and it

the u.k. initially but we are a global brand, we are shipping to 170 countries around the world that the u.s. is key for us, and you're just embracing us more and more, and we have a big office now, and edition vision center in new jersey, the united states and canada, -- we serve them as best we can with next day delivery. >> the reporter for him mr. porter.com. >> one of the hottest menswear designers out there tells us why custom-made is so cool. stay with us. ♪

>> coming up, it is lebron's latest goal, he wants to be m.v.p. of the fashion world.

check out that blazer and a few other items. >> they don't call him the king for nothing. ♪

♪ >> alive from bloomberg world headquarters in new york, this with erik anders" stephanie ruhle. >> welcome back to "market makers," i am stephanie ruhle. we have my friend adam johnson filling in. we are talking about hot guys. named their top male result -- designer of 2013. danny lewis is the cofounder of brooklyn taylors, where he is designing classic custom suits for new generation of men. congratulations and welcome. tell us about suits for the new generation. give us an idea, what is the

price tag? >> it is difficult, this is in the ballpark of 1400-$1600. >> and the new generation of man spend that kind of money? >> we have something highly more accessible and when you think about tailoring, the influence and the love with guys on the ord -- you talk about three $5,000. i was graduating college and i was at the point in my life or i wanted a great suit, i could not afford that. >> you certainly didn't want that -- >> i had a sense of what i wanted, and i never found it and i was quite frustrated. and that is how i got behind doing this. >> did you teach yourself to so and to taylor, how do you do how did you do this? >> in the beginning i was going to be a photographer. i was born out of -- it was born

out of frustration as a consumer, there was nowhere to go and at least one decade ago, maybe the summer fences were a little harder to come by than they are now. i did teach myself and i found it eventually, a taylor i got to work with, and it started as a nights and weekends thing, -- >> i feel like i am having knight andhillip under armour, people who could not find their products. >> why did you choose daniel? >> he is one of the top menswear designers and he is really on the cusp. the last six or seven years we have done this program, as a publisher i feel i have heard of some of the brands and i have not heard of others. the next year they are all big names in one way or another. we had some big brand names coming out of this program. >> what distinguishes the guys who make that.

>> what determines whether or not they make it in the long run is business. we talked about how important that it is to run your business and we saw important people on the men and women's sides to can be very hot and have -- and be editorial darlings and make that into a sustainable business. >> what makes them hot from the editorial standpoint is are they classic enough that they are not a crazy, flash in the pan trend, or are they directional doing something that is differentiated and different. -- you keepu say something very unique and sell enough to be sustainable? >> the custom business is by nature ethical to scale. -- by nature difficult to scale. to plan is not necessarily grow until we are no father there -- we want to grow. >> i want to be ralph lauren. you don't want to do that? >> i think i would want to be

that. butes, it would be great, it is not necessarily the business model we have set ourselves up to be. we sell to barney's and across the country, internationally. that part of the business is scalable, and is scale. they will customer -- have to make the appointment to come see me and only me, and go to brooklyn. >> you have the customer side of the business, you also have the author access business. what i think is interesting about what you do so well, it is not that they are just good taylors. a lot of guys who say they care about fashion, and have some relic in their closet that they had made in hong kong, and they have to pick up the fabric or this is made terribly, and they made the wrong choices and this is cut like a fridge. it may even be tailored well, but we are not all fashion writers. what we are trusting with

brooklyn taylors -- what brooklyn taylors had is there taste. you aren't choosing the lapel length, and the lighting, and what we buy into this and gq, why we love brooklyn taylors is is notbrooklyn tailors just their suit. >> if i go to get a fitted suit from you, what will set this apart? >> i think we have our is sortar aspect, this of trying to bridge -- create a bridge between the very old world classic techniques and fabrics, and updated for a younger, modern -- >> make me look nice and lean, low? junk in the trunk is the right thing. >> i think that this is fashionable. who inspires you, and what inspires you? my inspiration comes more

from outside the fashion world. i think that is part of why we have sort of filled our demographic in that -- i was an art major, i was playing in a band and most of my friends are from that world. and these guys have great taste. but they don't have $4000 for a suit, or follow the runway, and they're looking for clothing that doesn't overpower, the interesting things they have as individuals. this is at the core of what are asked that it is about. there is a minimalism and this is not about flash or looking awesome. >> and let's just say, suits are cool. one of the biggest thing we have is tailoring is cool. a tailored suit is the thing you have to wear to the office. but now, suits are the things that a guy wears when he does not have to wear a suit. ties are something guys wear when they go out on a friday night. >> i think if you go back a couple of generations, the

uniform was an obligation so naturally this is not fun to wear. i think that is what led to the cuts being so bad. i just want this to be cheap, whatever it is. now, it is exciting. we get guys that are in their early 20's, that want to have a suit. >> congratulations. you know what is not cool to wear? a fleece vest, dockers and a golf shirt. >> those are actually cool -- >> when we come back, dockers are making a comeback. thank you to danny lewis from brooklyn tailors. >> next, fashion all the time and the business thereof. we will be right back. "market makers ♪

>> the fashion world has a new set of style icons. you can find them on the basketball court or football field. we are talking about professional athletes.

they are legitimizing the focus of looking good. we bring in notable fashion designer derek glassberg. he is a new york times best-selling author. first, there was figuro, and suitsebron shows up in before games. >> the word metrosexual was introduced two decades ago, 1994. a british author. startedars ago people saying this? >> at least in britain. it took another 10 years for the united states. what we see now is that the hip-hop industry embraced fashion for a while. and athletes picked up a lot from those rappers and where those performers have dropped off. there was david beckham and tom brady and now more so than any other sport, the basketball players. you have these men who spend their entire careers in baggy

athletic clothing and then they go off the court and they put on some well-made suits. >> does that translate into selling products? when you are at a miami heat game, and my husband is watching lebron, he is not saying, let me pick that up. ien i am watching the oscars see with those women are wearing and i want to buy their clothes. >> this is absolutely a driver for men for the simple reason that men want to look at guys who are style icons. as an inspiration. look atsm, men don't male models and say i want to be that guy, they look at lebron james and say i want to be that guy. whether they are actors or musicians -- >> i think when the term metrosexual was introduced, it was almost a put down for guys who want to dress up, and now athletes are doing this and i think that this is a way -- i talked about this earlier. i will go to a fashion show and it is not unlikely to see

someone like amar'e stoudemire crowding it up. these are big guys, by the way. the line from "american gangster," to find the weakest guy in the room, look for the loudest type. how do you find the peacocks -- >> there are people out there who are peacocks, this is a crowded field in fashion but with basketball players, they really invest in the smart pieces, they invest in the tailor and everything fits perfectly and they spend as much as their their tailor coach. >> do athletes sell more magazines? >> they are great sellers and if you look over the last few years, we had more athletes on the cover of "gq" than ever in the past. these guys are passionate about

style and i will not speak for the editors but they feel that the athletes really bring that. they are not just being dressed up as manikins, they have a love of style. >> you are selling more magazines. what about when you open the cover, how do you then make the jump to selling more product? anecdotally, is that designers love at that -- love athletes because the athletes have a masculine tone to the fashion, they embraced this in a way that is authentic. and that will make guys by that. what we do -- buy it. what we do is we provide service, show me how to do it and make me confident and comfortable. one thing i say is two women go to the same party wearing the same thing, there night is ruined. if two guys go to the party wearing the same thing they will start high-fiving each other. it is a special moment and when you think about products, you

can't overlook michael jordan. he has not played basketball in years, but his collaboration with nike is one of the best-selling lines. >> coming out with a new shoe today. he has not been on the court in 15 years. >> and this is a name that we recognize and in the fashion world, you recognize that with the air force ones. >> is there one guy who is a style icon, is this david beckham or lebron james, who is the guy that everyone wants to emulate? pharrell? pharrell. say >> that hat. >> arby's bought that hat. arby's logo is a hat. they bought it back. pharrell is the king. he has better perfect -- perfect he is a nice guy, who doesn't want to be that guy. wore is out there and he

shorts to the oscars, that is a volkswagen. with athletes you can't forget about tom brady, gisele's husband. >> even with stetson cologne -- >> he is the face of uggs. >> he is a style icon, just because they ask you to wear is thatig, furry boots -- stylish? >> that blue jacket he was wearing, he had the best accessories. not worriede and is in that department. >> he pulled that off with confidence. that gives him credibility. hasso think dwyane wade great style. >> basketball players are killing it right now. carmelo and amar'e stoudemire. >> no place for baseball players? >> baseball needs to bring it up. >> the next one is the nfl. we have style wars with victor cruz and others battling for the

best rest nfl guy. why is the nba getting attention? we can have great clothes, too. and those are some great looking guys. >> baseball needs to step it up -- and male figure skating. i think the big picture on that -- >> we are out of time. derek glassberg, the editor at large. thank you, sir. >> we will be back with more "market makers," stay with us. during the commercial break i will see how adam would look to dazzle. >> ooh. >> stay right here. ♪

>> welcome back. we have 90 seconds with the host, 90 seconds with the magazine,of "gq" chris mitchell. >> i am replacing publisher --

pageur semiannual big 300 -- about fashion just came out, what do we need to know? >> out of 30, we published -- after 57 years, this is new for us. gq style. jim moore will do everything he sees and boils this down to 30 trans. let me tell you a few of them. indigo is a huge one. more, it isng this like this color blue, this is something you see and in him but you are saying and a lot of other things. in wool suits.is indigo is a big one. black and white, you see a lot of black-and-white stripes and color blocking between white and black. >> black and white, and white and black? striped -- be >> that is why he is the gq guy?

>> the third would probably be the funny one. this is "the talented mr. ripley," this is the style inspiration for so many designers. >> really? they give for joining us. gq vice president, jim mitchell. ♪

>> that is it for "market makers ," and before i say goodbye, i have to say thank you, not just

for him but for you, adam johnson. >> this was fun. andarned how to pump it up, i was always a brooks brothers guy but i am no longer -- i am no more. >> he is going indigo. on monday, hollywood is meeting the tech world. we will meet the winners of the very famous disruptive innovation awards, part of the tribeca film festival. this paris movies with technology and we will find out who they honor this year. >> thank you for letting me join you today. it is 56 minutes past the hour. you know what this means. >> why do we have to tell the audience? bloomberg is taking you on the markets. olivia sterns, who loves black-and-white and pharrell wil liams and indigo. >> i like the color of your dress. it is time for options -- we go to the derivatives market and with an inside view of what is happening is jerry leavy, a investmenttegist at

research -- or joins us from dallas, texas. the markets are flip falling -- flip-flopping after a strong rally. what can you tell us about which way we are headed? >> i am trying to figure this out. where a lot ofea traders are looking at this and asking what is going on. y, over the the fp next few months volatility is very flat and they don't expect anything to happen, but that said there is a big differential in volatility. cheaper than 58% in may, so if that tells you something -- it gives you an idea that this market is still protected from downside. believe it or not, in the q's, what we are seeing there is this is a little bit more of a dichotomy. investors are going out and buying -- i think they are hitting a lot more

volatility and remember that the nasdaq is breaking down. this does not look good and it looks much more bearish than the s&p. >> we are seeing a divergence on volatility with the s&p versus the nasdaq. >> that is right. that is fairly typical. you will see much higher volatility in that index but now, to me it looks like the downside will be the more probable route for that index. >> a lot of financial companies have been reporting all morning. goldman sachs beat investment banking, jumping to the highest level of revenue since the financial crisis and morgan stanley came out today and what xls do we see on the financial spider? >> it is hard to lump them together. morgan stanley is doing well with the weight of the ipos now, and other banks like wells fargo, there is some weakness there. trading atr in may, 15,000 times earnings -- it was a cellar, probably blocking the

longtime position. we saw some action in the 182150 calls. right now people are taking it smart and selling some calls to protect their long-term division in the xlf. >> we are waiting for the chinese microblogging website to start trading at 10 a.m. this morning, it could come any minute. also interesting, speaking of banks, the company went public yesterday and the price was at the low end of the range. there is a trade you want to talk about with netflix. break it down. >> earnings will be out on monday and we have a completely binary trade. i amng at the april limit, looking at the numbers and i find -- i am looking for a 280 base. selling two april 2, $275, this does not seem like a lot of money but there is basically a one percent chance that you

could lose statistically on this trade. i think that netflix will bead on monday. >> this stock is already 30% off of its high a few weeks ago. >> and there is a part of me that really wanted to get more bullish, but if you look at the techs and companies in that space, they have not been treated well, and even though this is off 30% it could go larger. >> we will leave it right there, jerod leavy. thank you for joining us. we are awaiting that ipo and hoping it comes at any minute. "lunch money" is next. ♪

welcome to "lunch money" where we tie together the best stories come interviews and video. i'm matt miller. take a look at the menu. in motors, the new rolls-royce ghost rolls into new york, where it still has a number a lot in the door. paul talks and coming equality and jobs. there's still something left over for a list of things that makes him very angry. the good, the bad and the ugly of earning season.