>> live from bloomberg headquarters in new york, this is "market makers." >> much ado about nothing? carl icahn tells bloomberg he's nothing aboutows insider trading involving him and phil mickelson. .i.am made it bigger as a singer and songwriter and he made have made it even bigger as an investor in beats. airliners with amenities you have never seen. it is a new week here on "market makers." >> unfortunately, we have

breaking news to get to. it is really too bad for you because i want to tell you about the weekend i had. but we have to get you news on the economy. the u.s. manufacturing index is out. mike mckee is in the newsroom. i really feel like i am interrupting something. the news i have is not so great. we are still expanding. it is still a good number. but it did not meet expectations. without we would rise to 55. -- we thought we would rise to 55. we are still in positive territory. 55.2 for production. the come down just a touch from where they were the prior month. manufacturing is good, but not quite as good as it was in

april. the number we want to watch this week is employment. it drops back as well to 51.9. will manufacturing in tribute to the payroll report? the forecast is for 10,000 new jobs. this may call that into question. we may have to see how the adp number comes out on wednesday. now tell us about your dinner. >> we are going to have to get your jobs number guess for friday. we take that very seriously here. i run michael mckee. >> now to our top story. carl icahn, pro golfer phil mickelson, and a prominent las vegas gambler are being investigated by u.s. authorities over potential insider trading. julie hyman has more on this developing story.

the trading at the center of this investigation is three years old. >> it is. >> do we have any idea why it is becoming public? >> there was a lot that we don't know. we should make that clear first off. the us is coming from "the wall street journal" and "the new york times." it is interesting that they came out with the news simultaneously three years down the line. the investigation has to do with clorox,hn's offer for and offer that never ended up coming to fruition. there was a lot of activity around it and in advance of it profiting handsomely. profiting in part for phil mickelson and billy walters. it has been three years now since that happened. nothing has come of the investigation, in terms of charges being brought. itself, it is not an unusual investigation. >> not necessarily.

>> what is unusual here is that we are finding out about it. >> before anyone is being charged or anything concrete is being discovered. leakn't know where the came from, why these papers are finding out about this. we don't even know that even if there was some sort of information being passed from carl icahn to walters, we don't know if it was illegal because of the complicated nature of the securities law. it depends on whether carl icahn had a duty to the shareholders in his fund. clear that he even violated the law in this case. >> what the wall street journal did not get is an exclusive conversation with carl icahn. trish regan did over the weekend. pretty surprised by this. first he heard of it was in the

paper. i did talk to him and he said, we do not know of any investigation, we believe that making inflammatory statements is completely a responsible on the part of "the wall street journal." of myd he is very proud 50 years of an unblemished record and have never given out inside information. i have said, while obviously heard of phil mickelson, i have never spoken to him or met him. i did some further reporting. i said, would this be a violation of securities? there is a role that says someone has a fiduciary duty. that if you says are planning a tender offer, you cannot actually leaked news of that tender offer ahead of time. carl did not have a fiduciary duty. did he have a fiduciary duty to shareholders in his own company?

he was trading for his family firm at that point. the other one was interesting. here is the thing. he never actually went through with the tender offer. i spoke to the banker that gave him the letter of financing for clorox. me, this never went to fruition. it was just a proposal, a public letter to the board. that may have him off the hook here or make this case incredibly complicated for the feds. all right. thank you for giving us the update. >> for more on this investigation, we have put together a terrific panel of experts to cover all of the angles.

gentlemen, thank you very much for joining us. you all have something important to say here. i'm going to begin with chris. -- and we to feel touched on this with julia moment ago -- that it would be highly unusual to be reading about allegations of this nature , when, at the same time, we are being led to believe that the individuals implicated might not have broken the law? >> it is unusual. it happens from time to time. if there is an ongoing investigation, it should not happen. to the extent to which this has happened, it is unfortunate. anybodyno idea whether has committed any wrongdoing here. we have no idea if there has been a violation of securities laws and people certifications have been put at light. here for weigh in

mutombo, david, jump in whenever you like. what is the point? is the motive for somebody to have communicated this information? would it suggest that it was coordinated -- to report it to two in -- papers. we assume in the something from law enforcement are coming from one of the regulators involved. hopefully that is not the case. in the course of an investigation, people outside the regulators might come to have information about the information -- investigation. it could be coming from attorneys who have been spoken to or others. what we do know about this investigation is that it seems to have been puttering along for some time. couldextent, this leak provide a useful opportunity for the investigators to shake the

truth and put together more information. -- were youou surprised by the sidelines? headlines. >> it is interesting that they're connecting these three people together. i would be very excited to try to put that link together between billy walters and phil mickelson and determine whether these two very unique and interesting trades that they traded in together, if there was any connection. i don't blame the federal authorities for looking into this. you have to consider that these people have probably done nothing wrong. we are not questioning for a moment -- >> we are not questioning for a moment whether or not law enforcement and regulator should be looking into this. is atming of these trays

the very least suspicious. havehis investigation to become a matter of public discourse is a home on the matter. -- a whole other matter. tell us about your experience with athletes. the impact of the speculation is pretty significant, potentially worse for his financial services sponsors, kpmg and barclays. the idea that someone is suggesting that phil mickelson may have cheated is particularly harmful for him across the board. -- phil,ates to fill who has been the good guy of golf for years, this is potentially very harmful.

i think only calloway has come out with a statement, which may have been more for his investors. a supported phil in their statement. supporti look at the tiger woods has had over the years, i'm going to guess that the g and golf stands for integrity. let's say phil mickelson bop something he should not a bot and got a little richer -- bought something he should have bought and got a little richer. >> the financial services would run from him if this turned out to be true. i doubt that phil was making his own trades. sponsors have been supportive of tiger. because he has been such a remarkable player. phil has been the good guy of

golf. built on integrity, if nothing else. if it turns out he was cheating, it will be devastating for him and you will see sponsors run from him. intoris, julie briefly got the questions this case has raised about fiduciary duty and duty of care. what i do want to ask you is about the motive for such a leak. we don't know where it came from, but i and other people have been racking our brains all weekend long to figure out why somebody would want to put this into the public domain. that there are people in regulation or law enforcement who believe the kinds of conversations that may have taken place between carl icahn and others and have taken place between bill ackman are improper or should be improper and thus, by showing high profile names into newspaper

headlines, it raises the level of attention and forces regulators to take action? no one i know at the sec or department of justice whatever take that approach or tack. to be frank, i would be shocked or her a fight to know that that is why that leak -- horrified to know that that is why that leak came out. in most instances, regulators do information close. -- keep information close. there are lots of advantages for regulators to keep the information. >> is it possible that the leak was designed to make such activities impossible, so that there was no way to get a wiretap authorization? >> that is certainly a possibility. on the contrary, i think when

you think about the regulators and what they are doing now, i think they're monitoring very closely conversations that are happening among the participants in the aftermath. >> very good of you to join us. david in atlanta. tom from d.c. an important subject. thank you very much. i have a feeling we will be coming back to it. bottom line on college. whether graduates will get their money's worth. it is cap and down time. foundingne of the investors in beats electronics. we will hear from him about that big deal with apple. your smartaming on phone, tablets, bloomberg.com, and live on amazon fire tv and apple tv. ♪

>> welcome back.

here we are on june 2 and you for a high school student who want to attend high school that college next year, hopefully you know her you were going and you spend hundreds of thousands of dollars getting your degree. is it worth it? we are asking a former dean and founder of ivey consulting. it is graduation day. college seniors are moving onto big jobs. high school kids, did they even have a chance if they do not go to college? data is deep and unambiguous the college is a great investment. last week thatt said that if you don't go to college, your lifetimes earning is about $500,000.

one of the big problems we have in the united states is college completion rates. if you gook is good to college. it is much better than if you don't go to college. finishing seems to be an ongoing challenge for a lot of students. >> before we get to the problem backnishing, i want to go to the original question. one of the problems that i feel like i have with these studies are that they tend to look at the average was a mean or the median. which includes all the people who go to the best schools and get the greatest jobs and all the people who don't go to the greatest schools and don't get the best jobs. what about those people at the bottom? is it worth it for them to spend tens of thousands of dollars at a state college and find themselves at a job that may not

be able to pay back student loans. college can be financially ruinous and it is a terrible thing. where you go to college matters, no question. what you major in matters two, no question. most will go to a non-fancy school. >> that is statistically certain. even if you come out of a non-fancy school, you will do better in terms of lifetime earnings. there are a lot of schools out that are preying on unsophisticated consumers and they are happy to take your federal loan dollars and give you nothing in return. big problem. >> let's look at the other end of the spectrum. are the kids at the elite schools so elite that they are out of touch and it is going to hurt them in the long run? when i look at these kids from top universities protesting speakers like condoleezza rice and christine lagarde, i think come #get a clue. look at the real world. >> this is the teacup

generation. they are a minority. they are a minority of students. we should ignore that. i think the world is going to be a very cruel place for people who cannot handle christine lagarde as a graduation speaker .t a top women's college she has broken so many barriers and i would think she would be great to listen to. millenials need some sort of coaching or talking to. and they get to the real world, no one has any time for those protests. >> you fill in your own time when you're out of school. there is an argument to be made that if you are a superstar student at a state school where nobody holds her hand, you do fail on your own time, if you muscle through without being coddled -- >> i agree with that, but will those employers get to see a rutgers grad?

all those ivy league schools have spent so much time and money partnering with corporate america to get their students recruited to those schools, how to the rutgers grads get a job? thatthink there are things rutgers students, for example, can do to stand out. working on core skills. learning how to present, how to write, financial literacy. that alone makes you stand out. rutgers, in particular, has a and famouslyk eye a couple of years ago, they invited snooki to speak. told students, study hard, party harder. make some better choices. >> had you keep kids in school? >> what is the best approach to making sure they finish college. i think for kids who don't finish college, there is a perfect storm. i see a lot of family support

for what they are doing. -- a lack of family support for what they are doing. support for how difficult it is to finance the education. that is behind a lot of the completion problems. through afterh it getting some funding. the degree never gets done. >> thank you so much for giving us your insight on this topic. always great to have you. , especially now because it is the graduation moment. the founder of ivey consulting. >> we will be back in a couple of minutes. beats'l hear from one of first investors, singer-songwriter will.i.am. ♪

>> coming up, singer-songwriter superstar will.i.am as another title, superstar investor. stay with us. ♪

>> live from bloomberg headquarters in new york, this is market makers. >> you are watching "market makers." >> as much as i want to get to medieval times -- >> stephanie at it medieval times this weekend, in case you didn't know. let's visit the newsfeed. hospitality -- are hospitality is committing the biggest hotel chain.

a $2.6 billion deal, expanding holdings and elderly housing a medical office buildings for a rc trust. the spanish king is abdicating in favor of his son. in recent years, his popularity has waned in part because of a corruption probe focused on his son-in-law. juan carlos and philippe. , he has been rocking the beats since the very beginning. i am talking about "boom boom pow." is the founding shareholder of beats electronics. apple agreed to buy the business for $3 billion. i had a chance to sit down with will.i.am and ask what it means

to him. "hey mama" was the first song for apple itunes. people witnessed and experienced concerts differently. the fact that the camera was on a phone, people watch concerts like this. what happened after tour -- that tour, i told jimmy that we need to make hardware. our music is selling other people's stuff. we need to have hardware, so that we are selling our stuff. an i took that to heart have been a part of beats since the beginning. >> what you get out of this now? what does the sale mean to you? >> it means that i can go out wild and crazyre stuff around consumer electronics. more importantly, the work that

i do in my community. i can help him or kids. -- out more kids. engineering, technology, mathematics. i don't necessarily have to go out and raise money. i contend to the kids i cap already committed myself to. -- i have already committed myself to. make ourid, we need to own hardware. that hardware is essentially owned by a much bigger man, apple. is your creativity limited now that you all don't own what you do? >> i don't look at apple is the man. -- as the man. i look at apple as a very awesome company that makes tools that i create music on. i make my music on apple products. you go around the world and listen to music on apple products. i don't know what the man means. that is yester world.

we are in this collaborative state of culture. big companies are going and collaborating with unlikely candidates, whether for , creative consulting consulting, stuff like that. is a signse of beats to show you where things are going and it is a hybrid of tech and culture. >> we run the risk that these tech companies are cannibalizing artist, streaming music, does it hurt the artist who used to create his own music and sell it out of the back of the car? now that streaming service is giving me my music. >> you just dove into a very complex web. if you want to talk about that, i'm willing to give you information on just how artists are being screwed. artiste portly, how one has showed you the way on how to do it, dre.

you howsts have showed to do it, jay-z. there are other ways of making money than just selling music. >> now that beats has a home in apple, do you see a new music label opening? do you see a new home for emerging artists? you have a much bigger platform. oni don't know the details what is going to come. spark how it is going to a fire in artist out there. to take an interest in consumer electronics. i hope this puts a spark in kids in inner cities. so not only are they trying to get out of the ghetto singing and playing sports, but now they can discipline themselves and science and technology thomas so they too can bring a beats to culture. >> whether you think will.i.am

is a great artist or not, what he is is a great salesman. pow" heng "boom boom was already selling beats headphones. almost every song he makes is turned into an anthem. the thing is going to be plated nightclubs all summer long. and dr. dreene understand the music business in the same way. we are still wondering, what are they going to do with apple? we might get a couple of clues today. the worldwide developers conference is taking place in san francisco. you do not want to miss it. >> we have other stuff to cover. we will meet the founder of a company that fixes broken iphones. i should be there full investor. ♪

>> you are watching "market makers." if there is one business that has to stay on top of apple's hardware it is the company that fixes broken iphones. here to talk about the trend and will we see a new iphone line, is the ceo of this company. how much time do you need to anticipate the changes in apple hardware, like the bigger iphone

we're supposed to see in september or perhaps earlier? >> it is generally about 1-3 sonths to get all of our taechsx and repairman trained on the new hardware. all of the blog entries on all of the new iphone does not actually >> >> do you a lot of good. no. it is a little bit more technical than that. >> what about the worldwide developers conference that is taking place in san francisco today? the sense that you are getting, i'm sure, is that apple is going to once more try to prioritize software over hardware and that the future of the company lies in that direction and less with the next generation of iphone with the next generation of the ipad. what does that mean for you? >> i always think it is a marriage between software and hardware. they are not exclusive from one another. i think we're going to see a lot

of trends were software is feeding the world. at the end of the day, apple is a hardware company that happens to make software as well. >> what do you do with these products that you fix? >> what do we do with the broken products? tax -- 57050070i itcechs. we're actually not keeping the broken devices. through our buyback row graham -- program, they will pay our tax cash on the stock and we will sell them internationally or two other buyers. >> is there a big audience or appetite for used products right now? >> yes, absolutely. about 700 been million ios devices made to date. 300 million of those are currently unused or broken. there is always someone who

wants an iphone, even if it is a used iphone. we do our best to redistribute them. >> is that one of the reasons that apple has had trouble building and marketing a cheaper iphone? 5c has been a bit of a bust. is that what the secondary markets have been so big? >> i would not necessarily call it a bust. i think they're going for different markets. 5s lookade the that much better. >> cracked screens seems to be the very big problem. what happens to your business at apple finally gets their head around the cracked screen problem and improves their technology so that it does not happen in the future? >> we hope that that happens. that will help the retail market, so we don't have to repair these devices anymore. we love being one of the worlds

best repair companies, but the long-term plan for the company is not being the worlds best repair company. it is taking care of the lifecycle of the device. biggested screen is the problem that most iphone users face. what else do you see in your business fixing iphones that apple knees to fix? -- needs to fix? >> there are some tactile button issues, your home button and power button. batteries seem to be a large problem. i think there will be a time that you can either charge your phone incredibly fast or your battery lasts much longer than it does now. i think those are the incredibly well received by the public. waiting your phone and 2-3 hours can be a hindrance. >> how much do you typically charge to fix a phone? at&t will replace my phone because i have insurance. but i have a 200 dollar

deductible. what do you charge me to fix my phone? >> that is a ridiculously high deductible. our repairs are anywhere from $79 up to $129 for most iphones. it is less expensive. really what we try to drive home is the service aspect. you can press a button and one of our techs will come to you at and repair office your device on the spot. it is more convenient. >> thank you for joining us. aj forsyth, the founder of icracked. coming up, airlines battle for the first traveler. they want to make you feel like your home in your own mansion. stay with us. we are going to dig into it when you come back. ♪

new >> lucky you. flying first class has never been better. here is a tour through the top five first-class experiences. take a look. ♪

♪ >> here is the issue i see. , clearlyloat -- flight the cabin is extraordinary. what none of these airlines can do is get you out of going to jfk, through the security lines, taking her shoes and socks off,

waiting among the masses of sweaty monsters and going to the public restrooms. >> you are making the case for flying private. >> if people are going to drop 21 grand for a flight, how are you going to keep me out of having to go to jfk? it is nasty out there. i will take it. for $2100, i don't want to take -- $21,000, i do want to do it. for $21,000, i think it is a lot of cheese to still have to go to jfk. the place is nasty. >> some of the terminals are nasty. >> have you been to laguardia lately? have you been to laguardia lately? >> the vice president joe biden said it was the third world. >> you are saying i am the one making the argument? sounds like joe biden. >> talk about donald sterling. back in the headline.

he was forced to sell the l.a. clippers by the league and band from the nba for making racist remarks. hehas lost the clippers, made a huge profit on his team to bob back in 1981 -- bob back in 1981. eric, what if you walk us through the numbers. wife started a $12.5 million. they sold it for a 160 times multiple. that is over 16.5% annualized return. you cannot get that i have a profit in almost anything. think about the dow jones, high yield. >> doesn't it seem crazy that now he is going after the nba? one would think that one of his advisers, homeboys, kids would

just cashedm, you in a ridiculous amount of money. put your cards down. step away. >> because of the capital gains tax, if he had not been forced to sell, he could have saved $300 million to $500 million by giving it to his kids. there is that. this is a guy that bill simmons wrote about and set next to him on a regular flight. this is a guy that does not like to sell anything. he is very cheap. >> he put her in coach? isn't that the point of being with a guy like that? you have to be with a guy like that and sit in coach? >> $2 billion is not enough money for him. >> this also says something about the wisdom of investing in sports franchises, maybe back then.

i don't know about now. i don't know about steve ballmer buying the clippers for $2 billion. it is hard to imagine he is going to get 160 times return. that is not going to happen. ballmer is paying a higher price. >> there are other teams, smaller market teams, like the , by alle brewers accounts, they have done very well out of that investment. that was fairly recent. large,s that by and people who buy sports teams are making out like bandits. even the partnership who had bought the dodgers now look like they got a deal. >> hold on. .> think about robert johnson he bought the charlotte bobcats for $300 million and he sold it to michael jordan at a $25 million loss.

the money he put into that team to keep it running. he lost a boatload on that trade. not everyone is making money out of these deals. donald sterling got lucky because he was in los angeles, he was in hollywood, he got the tagalong coattails of the lakers. >> which is why many people think the dodgers was a great deal. you are in los angeles. athletes don't want to play and other cities other than miami, new york, and chicago. moneydid not make as much working ballmer did in at microsoft. there are other traits out there. -- trades out there. beit was a stock, it would the sixth best-performing stock out there. >> people are criticizing steve for overpaying. he needed a new platform or he could rant, and rave, and march

up and down for people to care. it does not really matter. he has the privilege of overpaying because he has earned it. it does not matter to him because he has that money. >> get your head around that. say it one more time. that extra $500 million does not matter to him. mio.dios >> eric, thank you. adding perspective to donald sterling and the clippers. and let's not forget, steve ballmer. >> it is time for us to go on the market. let's take a look at the u.s. markets. for the everyday retail investor who does not own the clippers. friends are suffering. the market is down. >> in part because there is some economic data.

the manufacturing index coming in lower than expected. we will be back. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker in stephanie ruhle. >> it is go time for apple. thousands have gathered in san francisco for the developers conference. we will see what surprises tim cook has in store. >> the obama administration has cuts to greenhouse gases that are good for your health. say get readys for higher electricity prices and a lot more. bypassesent obama congress on afghanistan. i'm stephanie

ruhle. >> welcome back to "market makers." apple shares have been soaring in recent weeks. this is in anticipation of the iphone 6. stock is up 12% year to date. big news onng for apple's fitness app and a home automation platform. and emily chang are on location in san francisco. why do we start with cory. p. hear this acronym wwd that doesn't mean a lot to most people. what happens question mark why is it so important? >> one letter is important. it is the d.

it is a developer conference. it is all about development. developers that develop a lot of platforms. nextll show us what the version of ios might look like. behind this you see thousands of developers. they are app developers. find outgathering to where they are headed and what is next for the apple platform at large. >> what hints are we getting? as usual, we don't get any heads when it comes to apple. there had been any immediate reports. get mucht going to about new hardware or the new iphone or and iwatch. it does not even exist. we are looking for software

announcements. something related to the smart ame that would involve using device to control appliances in your home. would use your iphone as a remote control. apple has been in contact with product makers. this is something that google wants to get into. tompple does announce this a it could give them a first mover advantage. been talking have about a services platform to track health and fitness. thing for be a third-party apps to plug into. about yourtalk hydration, nutrition, steps and aggregate it all into one app. announcementa about a health-based platform. it was a wristband. >> that make you think they're

trying to get the jump on apple this week. >> we think samsung may have been trying to the apple to the punch. thedy is that far ahead in else care wearable space yet. it is not too late for apple. >> is it one of the problems with announcements like this that they sounded to the investor and to the consumer like they are a little bit soft? the consumer can't see or touch the product. the investor can't immediately see what the revenue potential is. they lose interest as well. >> i think you are onto something. the targeting of this advanced not really about the consumer. announce products right when they are a volatile. ishink what we see going on

one of the major announcements they made a couple of years ago was the passport app. that is a way to use credit cards or boarding passes or affinity cards. that is the kind of thing that has to be announced in advance so you can build partnerships around. fewaw an announcement a weeks ago that there was going to be an apple ios for certain vehicles. it takes time to develop those partnerships. that is the things that these events try to coalesce around. announcements of platforms that people can build on it, not devices that the consumer can buy. >> apple has made some promises. tim cook said that they would be launching new product categories. people are waiting for that. apple is coming out with the greatest product lineup that they have had in the last 25 years. they are making promises. i think they're going to have to start delivering on these promises for their fans. >> we are all waiting.

, not that ther iphone five isn't a cool product, people are waiting for apple to wow us with something. >> a lot of people have gotten samsung galaxies. >> that is true. >> what have you done for me lately? >> please stick around. we want to include you in the conversation. jerry kim is here. he is at the columbia business school. jerry, we were just talking about the struggle that apple has trying to keep so many groups of people happy. as it becomes a larger company, that becomes harder and harder. from your perspective studying apple, are they moving in the right direction? >> they are one of the most this ising companies.

the prime example of a company that shows having the best products doesn't always guarantee competitive advantage. the struggles are in partnerships. , buthave the best products they have struggled with building partnerships. >> you believe they still have the best products? reflective ands the premiums that they can charge. >> why can't they create the best artist ships? steve jobs was difficult to work with. >> it is a different strategy. they try to make the best product and charge a premium for that. companies like google are trying to make the best platform where they can build a partnerships and they create an ecosystem. apple has a different approach. >> that raises a question in my mind. -- is apple apple

still a product company? we have been led to believe by some that what tim cook wants to do is think about apple differently. that is why they have emphasized software and operating systems so aggressively over the last couple of years. there is only so much they can do with the iphone. there is only so much they can do with the ipad. >> even the best companies can't satisfy every customer need. to offerially you have a very different product. apple can't do it alone. they need partnerships. that is why the developer conference is critical. i think he is onto something. when we think of roddick, we think of that thing. product, we think of that thing. in a world where people don't have to keep their photos on their laptop or back them up or

have them in film, there is cloud service. when you see people come up out of the bay area light -- like dropbox, apple should have owned them. they have tried to get their icloud up. >> they tried to buy dropbox. >> they have failed to build these things. it will be curious to see if they try to take ios away from a the macintosh. they might try to take it off the phone and into the cloud. >> just the numbers to back this up, iphone sales are still going up. ipad sales dropped and revenue dropped 13% in the last quarter. that isook closer, still growing at, the software services.

it is not necessarily a hardware company or so focused on hardware as they are to be on software. >> absolutely. >> the scary thing for apple is that android has been growing so tremendously fast. globally for% android by the end of the year. what does this mean for developers? will they still develop apps for the apple ecosystem? >> if you're tim cook, had you incentivize the app developers? >> it is a difficult question. it provides incentives in terms of allowing app developers and partners to take a bigger share of the revenue being generated. they are making tremendous amounts of money but a lot of that is going back. can they offer a sweeter pot? i was going to say that apple

, based on the experience they had competing with windows, they are happy to have 30% of the marketshare and 80% of the profit. there is a certain kind of business partner that is going to benefit from those economics as well. >> i think so. i would agree that apple is happy to be a smaller player and pushing profits. at what point to developer start -- stop developing? are fivet when they percent of marketshare share or three percent of market share like macintosh was back in the day. >> how hard of a job does tim cook have? you are talking about a changing landscape of the hardware and software businesses. you're following the one and only iconic steve jobs. how challenging is this? >> i think this is a job that

nobody would want to do. >> you would think that the number one job in tech would be a job that nobody would want to have. >> i think the beats acquisition is part of it. you need other people to help. you need to have alignment. it is not just one man's job. >> i think we want to get some credit to apple about the difference between software and hardware. they could be the only company that does both start -- hardware and software well. samsung is not a software company. you can see it in their gadgets. apple can do both well. if they are not releasing a hardware product, it does matter. it is the software that has made apple products so great and so successful. >> stay where you are. they are in san francisco. , professor at

columbia university, thank you so much for joining us. people say that nobody would want tim cook's job. >> what was the stock grab? >> that is a giant number. thick about people in banks. >> would you want to do tim cook's job? >> i don't think i would. >> he is not getting 450. makers,g up on market using your phone. >> a bold new plan on climate change. we will look at those plans to restrict emissions of power plants. this is "market makers" on bloomberg television in our streaming on apple tv. ♪

>> welcome back to "market

makers." i'm stephanie ruhle. is betting onnder storytelling. the start up recently launched an ios app. let's head back to san francisco where cory and emily are standing by. >> thank you. katerina, thank you for joining us. you have such a long history in this business. i can't imagine a better person to ask. what is it like developing for apple today compared two years ago? >> my background is in the web. it is very clear that inevitably everything is going onto a mobile device. we were photo sharing and we were webb originally. we developed for apple products. i have to say that while the

development. is longer, the experience is better than on the web. they do such a great job with the user experience. they do user experience exceptionally well. the development. is longer. you can whip stuff up and throw it on the internet quickly. developing for native devices is a much longer development process. >> i don't think people understand what you have to go through to get an app approved. hoops that a lot of you have to jump to. you have to submit to the apple store. they have to approve your app. there is a lot of back-and-forth. we've been very fortunate in that we have a very experienced developer on our team named john fox. just use the platform as it is. you have to understand it. it is a phone animal.

is for your mobile device. it tells you about the places that are around you. it is a discovery mechanism for the meaning of a place. there are a lot of apps that are about buying things, finding .estaurants to meet at finder he is about places. they leave notes about where they are. you are in the place and there is a lot going on. for example tom a this place where we are sitting, it used to be a great neighborhood. it is not obvious. >> i am curious. they are asking about what it is like to develop for apple, y waited to go from web to

mobile. why did you wait so long? >> one of the reasons that we decided to go withfindery the ourthat we did was background is in social media and participatory media. location-based app, you have to have content over the world. we would put things on the web so that when you opened the app for the first time, there are things up there. and benefit from the location process. what are you most excited about? ibeacon is what we are most excited about. it is very catchy. with allows you to connect a user or track a user within a

few inches. >> within a few inches. can tell you the which side of the road you're on. >> sometimes you find yourself on the wrong side of the street or the location can be poor. acon will be a great app. >> what about the creepy factor? the creepiness of somebody knowing it literally where you are within a few inches. >> people have become more conscious of that. people need to be conscious. the apple don't post -- people don't post things about their location immediately. there is a check and balance to what you can do to protect your privacy. your privacy is not important, some companies say. i believe it is important and always will be important. >> we have thousands of developers.

weerms of getting talent, keep hearing how difficult it is. >> it is very difficult to recruit apple developers. the reason is as you can see from the 5000 people who are over there, there is a lot of opportunity for app developers. you can be anywhere in the world and you can develop an app and put it in the app store and charged 99th and said have a thriving business. it is difficult to recruit somebody to work for a business because they are leaving their individual opportunity behind. back to you. >> thank you for joining us this morning. >> republicans fireback. say reducing emissions

will lead to higher electric bills. ♪

>> you are watching "market makers." about going to do next the obama administration. >> the president is finding ways to bypass congress. he is pushing his agenda

forward, just like these new epa rules. we are streaming on your mobile devices. back.l be right ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker in stephanie ruhle. to "marketback makers." >> the obama administration is --bating combat -- mark climate change. phil mattingly is with us. what is the administration doing today? >> basely they are taking probably the largest step any presidency has ever taken to try and combat missions right now.

the epa announced earlier today and with the president is fully behind right now is they are going for those 30% cuts by 2030. that is a big top line number. the baseline is where they were in 2005. 2005 was a hive for emissions. they have already gotten closer to that 30% goal. that should help a little bit. ist the epa is announcing the states will have a few years, state-by-state, to implement proposals that power plants can meet these guidelines by 2030. from the administration's perspective, this is a big step back ontrying to cut carbon emissions. this is the largest step they have taken to this point. >> there is also politics here. this is something the president would not touch in his first term. what is changed? >> he doesn't have to run again.

there is nasty politics. hammering therats white house on this. from the people i have talked to, this is a legacy issue. they could barely mentioned climate change. you could not have paid them to talk about it. now they feel like they have the freedom to move forward. congress is not going to do anything on this. there is no way. theugh the clean air act in epa, they feel like they can make this move and they feel like even though some democrats are against this and will push back leading into november, they are in a place politically where they can move this forward and hopefully set the tone for the rest of the world to start moving on this type of stuff as well. youne quick question for about the midterms. how much have you heard from the white house about the collateral damage? he is moving forward with what he hopes is a legacy building

initiative. there are going to be democrats caught in the crossfire. >> what i have heard from officials is that they are releasing their incumbents and challengers who have a problem with this to go ahead and beat the heck out of us. she is put in a statement saying that this is the wrong policy for the administration to pursue. i inee mary landrieu no louisiana is going after the administration for this. what i have heard from administration officials is they are going to go on offense and make this a big push and a big issue. us,crats that are not with we are opening the door for them to come out and hit us. there is a chance that the president's are in the low 40's.

it gives them a chance to beat up on an unpopular president this could work to their advantage. >> thank you so much for giving us the latest out of the sea -- d.c. >> stocks have turned around. i am all because of what pretty sure is a rare correction from the institute of supply managed -- management. >> i have seen anything like this. addressed --ly adjust their numbers. they applied the wrong month to the may report. they put the april numbers in. economists started noticing that. they put out notes saying this is not a correct number. in fact, they have now confirmed their error. 532, the number is56.

you can see why the markets are turning around. we don't have a complete set of data yet. several economists have worked through it and the numbers go up significantly from what they said was 55.3. the production number goes up as well. , notmay be a strong month a weaker month as initially thought. the employment number does not go up that much. it is a little bit better. it will influence thoughts about what will happen on friday. this is a very rare error that the economy is in better shape than we thought. the statistics would have told us now that they are adjusted properly. >> that is the latest on a correction. the economy looks healthier than we thought. to continue our conversation about climate change. is from theter

citizens for affordable energy. i know you're been paying very close attention to what we are going to hear from the president. suspect that you have some criticisms to share with us. why don't you let us have it. >>, first of all i am in favor of reducing carbon pollution. i have written about it and talked about it. it is not the issue for me. what i am objecting to with the approach is he is taking a sledgehammer to a problem that needs knitting needles to make it work. we have three problems. we have the issue of massive layoffs in the coal plant industry. not only coal miners, but the people who are going to run coal plants that make electricity. 150 coal plants

go away over the next number of years. those are mostly union jobs. where do the people go? we have the problem of affordability. this is going to play to the spot market for natural gas. an even not distribution of natural gas across the country. , during the saw cold winter, spot prices will be higher for natural gas. affordability goes down the tubes. the grid reliability is the biggest issue of all. is a delicately balanced system that depends on certain sources of supply. we don't have much in the renewal bowl area. we have a shrinkage in nuclear. now we are going to see a shrinkage and cold. what we are going to see and hot summers and cold winters are

grid reliability issues, which means blackouts. in blackouts, people get harmed. the president has taken a sledgehammer approach rather than working this through. there are stakeholder communities that have been left out. he has left out the consumers. he has left that the industry that produces electricity. it is all about government. that is what i object to. >> is there anything good at all here? mccarthy is a very radical person. i respect her tremendously. she has put a timetable into effect. she wants to try to make it work. she was to try to get it done over a. of time and try to diminish the impact of the sledgehammer. i give her credit for that. when you are talking to coal plant owners or ceos of utilities, they use a lot of

coal, their solution is simple. shut it down. get in compliance and shut the plant down. don't spend more money on it. don't invest in new technology. just get it out of the system. that is what we'll call the grid reliability problems. that is a bit beyond her control. it is an unattended -- unintended consequence. you take this harsh approach and the president was unsuccessful working with congress. that is his job. his job is to work with congress. that is why we elected him. we are ignoring the legislative branch of government. i object to that. as a democrat, i object to that. we have a legislature that could be playing a role. work with them. i find that unacceptable. >> there are a lot of people who

share that point of view. i am not going to debate with you. i am going to pose a question. is there not some argument to be made for a sledgehammer approach given the negotiations with congress and the need to move forward on climate change? you make some reasonable suggestions that there needs to be a dialogue with consumers and business and industry. taking the time for that dialogue to take place may postpone action to the point that it is no longer as effective as it needs to be. should that be part of the discussion? >> i have been an executive for a long time. i have always looked for the win win solution. that involves and engages all of the appropriate parties. of the key parties and decision-makers.

what you want is a solution that has armaments and has lasting power. -- permanence and lasting power. >> you want utopia. how is it realistic? >> what you're going to get with this approach is reaction. you are going to get negative reaction and somebody is going to come along and reverse the president's efforts. it is too harsh and too fast. they will reverse it and we go backwards. when it comes to public policy, we don't need a zigzag approach. we have this white house and we go this way, we have this white house and we go that way. i am a cap and trader. i was actively promoting the cap and trade bill until it fell apart in the senate. that is a kind of approach you need. this president can't work with either party in congress to get something done.

that is a real problem. when he forces it through, it is like dropping a rock and upon the. everybody gets wet. he looks like a hero in the short term until we come back and reversed the policy because it was done too harshly in the long term. i look for long-term solutions. the quick fix. i want a reputation. i won a reputation. we need to address energy ever so sensitively. it is the important part of our economy. if we don't have the energy supply that is affordable and reliable and provides good jobs for people, then what do we have? we go to third world country status. we know what that looks like. >> i love your passion. we love to have your voice in this argument. it is nuanced and powerful at the same time. we want to thank you for joining us.

he is the ceo of citizens for affordable energy. coming in and talking about the new epa rules. these are just one of the things that have republicans unhappy with the white house. the risklooking at president obama runs by bypassing congress. >> if you missed any of our interviews, you can watch them demand orle tv or on streaming live. ♪

welcome back to "market makers." i'm stephanie ruhle. you just heard about the new restrictions on power plant emissions. the publicans say that the resident did not notify of them -- notify them about the swap in afghanistan. colleague is the cohead of bloomberg politics, this is john title and. we are starting on a high note. what do you make of this? this announcement from the president in his first term, he would not have touched this.

now co2 emissions are on the agenda. >> in his first term he did try to pass a cap and trade law. that was a big failure. there was a big political failure for the party. he made it clear he was going to do this. this is not a surprise. we have known this has been coming for the last couple of years. now it is here. i think the politics of it are going to be incendiary for democrats who are running for reelection in coal states. >> is the president earning the title of imperial president question mark --? residents have used executive authority when they have felt stymied by congress. this is a dramatic example of that. it affects so much of the economy. >> how much political capital does he have right now?

compare him today with six months ago and two years ago. >> not that much. you would have thought coming out of 2012, people thought he had a lot of pinnacle -- political capital coming out of that. 2013 was even more contentious and unproductive. his approval rating is not at the best possible place. he is an interesting figure. floor and ay high very low ceiling. we have never seen him below 40%. we have never seen him much above 52%. clinton,ident bush and they were down in the 20's and 30's. he never gets down that low. 40% of the country loved him no matter what. he has a hard time getting over 50. when he does things that are big and controversy all, he winds up

in zones of great contention. it is hard for him to get that big popular support that you need to get big things done easily. >> is the man that you knew back in 2008 running for resident show signsresident of somebody ready to take these big, bold steps? to get done what he wants to get done? >> the president memorably and embarrassingly said back in 2008 see the planet start to heal itself and the oceans would lower back. he made some grandiose claims. he said that climate change was the most important thing that he was going to face over his time in office. he is taking this issue seriously and that is not surprising. trying to go over congress's

head, he would have arrogantly said that he is not going to have to go over their heads. they would be able to get along and disagree without being disagreeable. he would be able to end partisan gridlock. nothing like that has happened over the last five years. >> what do these departures mean for the president? >> they are different stories. carney didsed jay not leave earlier. i thought at the end of the reelect, you could've expected him to walk out the door. he stayed another six months or so. that is a hard job. as hard as your job is, ian the whitehorse -- white house spokesperson is very hard. he is been doing it for three years. this is the point in an administration where the last rest secretary arrives in the

town to do the cleanup work. differentpital is the issue. he had to go. how do you replace him and get to the fundamental issues weston mark --? >> welcome to bloomberg. we will be right back. ♪

>> this is it for a great start to the week. are we going to be the tomorrow? >> we're going to be talking

about small business. the ceo of shutter stopped is going to be here. >> that started as a very small does this in the west village. now he has two floors in the empire state building. he is the first tech alien air in new york city. we will find out how you did. for now, we are going to help you get it done in terms of investing. it is time to go on the markets. julie hyman has much more. >> we are diving straight into derivatives. it is time for the options insight. starter joins us. we been watching the situation. it is interesting on the face of it, correcting the data saying there was an error. we have seen some swings in the market. we are only up about a point and a half on the s&p 500.

this is a pretty tight range. it is interesting to see the reaction as that data was being revised. >> it happened as i was walking over here. i left the office and equities were lower and now they are up a bit. theink it is interesting in context of weaker data that came out of german manufacturing data. there was weaker inflation data as well. the theme ahead of out there on the market. low volatility is out across asset classes. we are on the lookout for what could be a catalyst for higher volatility. near-terms on the horizon is later this week. >> you have a jobs report that is going to come out here in the u.s.. of those two, do you expect increased volatility? uncertainty.

there is a broad expectation there is going to be more easing. >> that is the million-dollar dollar question for this week. i am surprised if there will be much surprise in the market. they are supposed to ease quite significantly. i think the question that remains is what if anything they initiate from a volatility perspective. this is just getting more defensive. at spot vix, it has been below 14 for 30 days. that is getting long in the tooth as far as i am concerned. the s&p 500 over the last 18 7.2%s, it is up about before we face the next volatility event and correction. that projects a bit higher.

the bottom line is we're are not expecting a significant pullback. it is a nice opportunity in here to take advantage of the strength. >> be ready for that volatility. let's talk about something unpredictable. you are looking at hurricane season and how you can play it. talk to me about that. >> it started yesterday. we are not necessarily experts in meteorology. we can look at the option market and suss out what could happen. going back to 2005, we have had five of the most severe hurricane seasons going back to the 1850's. it is a violent. over the last 10 years. past year was pretty denying. in the option market, implied entering into

hurricane season is a good severeor of houses -- the season is going to be. what we are expressing is the view that you ng will move one way or the other. you by the call. you pay about $.90 that. move 20% in one direction or the other. >> thank you so much. we will back on the markets in 30 minutes. ♪

," welcome to "money clip where we tied together the stories, interviews, and business news. here is a look at what we've got. we are fixing detroit. it is coming back with a little help from a watch factory. wildcard -- picketing mania. one of the hottest developments in recent history has more than two sides, as it turns out. will brazil be ready for the world cup? the ultimate jet set. we will go inside the studio that designed your first classic experience.