live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. gm chief meets shareholders for the first time since the recall scandal. music.sound of regulators say it is time to update rules for how songwriters get paid. this will have a major impact on pandora. hollowly a. -- hallelujah. >> we will talk about the revolution in men's fashion.

good morning. you are watching "market makers" on bloomberg television. >> the top father's day gift is no longer a weed wacker. eric is just a guy to do that interview. >> all my goodness. it is time for the news feed. the botox maker has rejected the takeover. undervaluesion bid the company. the market value is about $49 metlife will spend as much as $1 billion on the buyback. systemically important institution. donald sterling has changed his mind once again about the los angeles clippers.

he will not support the sale of the team to steve ballmer. he will pursue a one billion dollar antitrust case against the nba. this is very mysterious. his lawyer told us earlier this week -- last week when you were in puerto rico that donald sterling and the nba had come to terms and everything was fine. >> a longer told you something that turned out not to be true? that is so weird. barrow is mary meeting with shareholders. the annual meeting kicked off just about 30 minutes ago in detroit. she took questions from reporters, including our own matt miller who joins us from detroit. did she say anything new? she is on a very tight leash as to what she can say. >> she has been asked every

question in the book. one thing she did say that i found interesting was she had received a lot of e-mails. she released the results of the lucas report looking into these switch problems. she asked employees in a town hall meeting to e-mail her directly or contact her directly if she noticed -- they noticed an issue. she received hundreds of e-mails. them related to actual problems of the company. she did say she has been looking far and wide for other problems like this problem they had with the cobalt and the saturn ion. >> when you look at this issue, it was a unique series of mistakes over a long. of time. we find an issue going across, there is nothing like this and

we have been digging pretty deep rooted we will continue to do it. we will address those issues. key there being unique. this problem is not something that is going to pop up again. shareholders will be worried about that. they will worry about money they may have lost because of the recalls in the value of their shares. gm shares have gone up five percent since the recalls were first announced. shares of ford have gone up 15%. that is a big difference. >> thank you for giving us the latest with the gm meeting in detroit. cast asidener just the largest magazine publisher. they made their trading debut yesterday. of -- their sights on the new media. in talks to buy a stake

in vice. that would make the company worth $3 billion. jon erlichman is in los angeles with more. you know vice well. your conversation with the founder not long ago suggested it might be worth many multiples of $3 billion. what is the story here? >> shane smith is the founder of the company. he is a very confident guy. is worth as company lot. there is a relationship between vice and time warner. watchers knowdia vice because they have a show on hbo. they didn't follow the traditional media model and go after advertising dollars. they thought that was a losing bet. they took bran the sponsorship money and use that to go out and do gung ho journalism. that caught on with the next generation of news junkies.

this gave them a library of interesting content they could sell to all sorts of tv players around the globe. there is a lot of discussion on whether this is just about time warner buying a stake or maybe them giving more of their real estate over to vice. in aoke about the interest more traditional cable company. he talked about a big valuation for the company best on revenue they are generating. >> if we hit our numbers this year and project out to next ber, are worth would exponential. billion ofoing $1 top line at a 50% margin in an ever-increasing scale, that would be worth as twitter i would think. >> you are close to generating $1 billion in revenue? plan in the next

12 to 18 months. >> a journalist and a businessman. >> what does this mean for cnn? is this what news looks like, vice? stodgyrns its nose up to cnn. greathink that is a point. that makes a slightly awkward twist to the story of vice. they have been taking a few punches at cnn over the last month or year. soon they might be partners with time warner in a bigger way. they are watching the world change. they are interested in driving ratings in getting people to tune in to the various cable outlets at the own. -- they own. i was thinking jeff beauteous for a moment. separated at birth. vice gets a valuation of

$3 billion or $30 billion, shane smith is going to be the winner. also win?pert murdoch fox invest inury vice? >> that sounds about right. i think one thing that will still have to see is if a deal fox this results in both and time warner stain as investors in this business. there are two different paths for vice to go. they could do an ipo someday. he wouldn't mind staying independent. you could have different media investors in there. they already have tom preston of like,. -- viacom. with fox and time warner's investors in the business, having them has to be helpful to

vice. -- settingbout shep up shop around the world. they can take this stuff as we mentioned, all of this content they are creating, and selling it to pay tv providers around the globe. >> this is a very interesting set of negotiations read thank you very much, jon erlichman. what is this going to be valued at? course -- coast corresponded. >> go daddy is set to hit the public market. they sell web hosting products and domain names. they are best known for their super bowl ads. we want to bring on leslie picker. company thata private equity guys liked. >> this is a 17-year-old public

that is just now is going public. domain name should be a $1 billion revenue. we are seeing an interesting time for this company to go public. the executive chairman is stepping down. is taking a step away from the company. this is the founder. he is controversial. upset done things that peta with elephant hunting. he is the man behind the controversy all sexy ads during the super bowl. i know we were watching some of them this morning. they are pretty racy ads. they have given them some brand recognition and put some significant market share. this is the appropriate time to go public because of that market share and growth. >> could a cynic look at this and say go daddy and its backers

just want to go public because we are living. doney hasn't go daddy public up until now? has it ever made a profit question mark? >> it is still losing $200 million. those racy ads, $154 million spent on marketing last year. you have got to spend a lot of money. >> they will pay that debt. those are their three main sponsors who own a stake in the country. they will also do a one time payment of $25 million to the sponsors. that and thatis one time payment. >> that is not really a growth strategy. you can't possibly say you are going to pay back your debtors.

what are they going to do with the money? >> that is vague. >> are you kidding me? i want to go public. i am going to pay back people i'll money to. say that they may acquire, mentoring technologies. they are vague in the prospectus about what those are. >> hasn't the business model been weakened over the last two years by the opening up of domains. it is not just about that com or.net or.edu. there is an effort to make even more of domains. that there is an open software agreement. they don't own the patents on how to get out those domain names. this is something that has come under pressure in terms of pricing for them. they have had to diversify their strategy.

the have to diversify revenue stream. selling e-mail addresses. that is expensive. >> doesn't this smell like everyone is doing ipos and let me go public. >> i say no go daddy. >> thank you for giving us the latest on the go daddy deal. >> coming up, carla -- carl icahn goes upscale. >> songwriters say internet record companies are getting off too easy. they want to help singers and songwriters. this is "market makers" on bloomberg tv. we are streaming live on amazon fire and apple tv. ♪

>> welcome back to "market makers." i am stephanie ruhle with erik schatzker. carl icahn revealed a stake and said he wants the retailer to merge with dollar general store. adopted a poison pill defense. we want to ring in julie hyman who has been following this. he knows where to get it. there is one year now. that is how long this lasts. there can be no hostile takeover. no one shareholder can garner stakes of more than 10%. you can't build up a more sizable stake than what he has right now. he can put pressure on the board to make changes. broker ay to foster or friendly deal between family dollar and its competitors. >> what about family dollar?

where do they go from here? >> they have talked about making changes at the company. >> if you are a dollar store, where can you go? >> they are not literally a dollar store. there are some stores that are literally dollar stools and it just denotes cheap basically. higher than are those at walmart and dollar general. they have talked about cutting the prices more. they are also closing 370 underperforming stores. the company has embarked on a plan to make some changes and improve the business. >> the stock went up 13% yesterday. people don't bid up the stock because they expected to improve margins by that much. all he has done is put this company and play. >> unsuccessfully. >> what you mean? on owned a big

chunk of this as well. pushed familyhey dollar to make some kind of deal. it didn't happen then. just because carl icahn is making this bush does not mean it will happen. dollar general has said it is not interested. this somewhat family control. interested, your best strategy is to say you are not interested. >> we should take that for what it's worth. i think ericn, doesn't have a deep enough understanding. we need to do a deep investigative search of these dollar stores. don't you think? >> i can think of nothing else better to do this weekend. >> thank you for giving us the latest.

technology isury being governed by rules drawn up in the 1940's. ♪

>> welcome back. beyonce, justin timberlake, katy perry. they have made royalties from digital music services. what about the songwriters and publishers? they say they're cut is coming up short. congress and the justice department are getting involved. i want to bring in phil mattingly. why does washington care about publishers? can get their hands on anything, there is a good chance they will do it. when it comes to this issue right now, every lawmaker is an

agreement in a bipartisan way. the way laws are written right now is out of date. nothing keeps up with it. nothing shows this is much as how publishers work with laces like pandora. these guys are under an agreement from 1941. long before pandora was even close to existence. they don't feel like they can fairly negotiate the rate. lawmakers are looking at this. so is the justice department. is anything going to come of this or we just have more conversation? >> what are they asking for? >> they want to be able to come and have a fair negotiation with pandora. thesea says because of laws, that helps them. it helps them line up their negotiations. if pandora and these third-party

groups don't agree, they go to court and the court decides what is fair. the court almost always rules with pandora. bmi is the lead above them. they are testifying today. this is long outdated and needs to be revised. >> what is the distinction between the songwriter and the music publisher? >> that is a good question. is thekey thing publishers and the songwriters are against the labels and the artist. can get up to 80% of the royalties when it comes to streaming music. when it comes to the publishers in the songwriters, they are represented by third party groups who feel they are not getting a fair cut. what is interesting this entire industry is governed by rules the bottom place decades ago. ist you see right now

everybody acknowledging that what is in place now is a failure and everybody acknowledging there is no way to go at this with someone a -- some type of full-scale over call. -- overall. i do know that anybody has the answer to that. the argumenta make they are responsible for more musical consumption? can they say be glad distribution is wider? >> i don't think they will say sit down and shut up. they say something akin to that. because of us more people are listening to music. you are getting royalties because of us. fights has its own across the board. i don't know that pandora has the answer. i think they feel that they are

in a better position than they are in the right. phil, give me your top three favorite artists. >> so much pressure. >> time is up. >> we'll be back more in two minutes.

>> welcome back. i am stephanie ruhle with erik schatzker. stay-at-home mothers and working fathers has changed. female breadwinners are on the rise. is that a cause of concern? she is the founder of the court in group. 10 rules for breadwinning women. let's get our head around it. there are more women than ever making more money in the house. is society ready for that? >> there is nothing wrong with it. we want to celebrate this. the complexity arises when she

enters a male/female relationship. there is a higher chance for divorce and infidelity. society is not ready for this. pugh did a survey last year. most people believe it is the man's responsibility to be equipped and ready. they don't have the same expectations for women. this raises a lot of complexity when you're in a marriage. men feel emasculated. women can become resentful. there is a lot of emotional turmoil. >> can super ambitious women who also want to have families really make it to the top? ceos have a part, spouse that doesn't work. if they have a working husband, is it possible? >> they have a great babysitter. they have a housekeeper. top position as a ceo and be the mom?

it is very difficult. it has nothing to do with the facts and more to do with aspirations. most women don't want to sign up for the power game. they don't want to report two aboard. it is a lousy job. lousy job at doing it and being a mom? >> maybe they want to have that giant job. when you have to get on at plane year, ane 35 weeks he lot of women don't want to do that. -- more of a more chance to she will opt out of the workforce if she feels it is a threat to her relationship. they are not making it work at home. institutions are very greedy. the work laces not conducive to men and women to have a work life balance.

site, ise day care on a win for everyone. it is not just a women's issue. it is a benefit for companies when families can thrive in the home place. if they can make it work with their kids. they can be more productive at work. >> how are men responding to this reality? there is more infidelity. is that on both sides? have a stay-at-home husband. i am the breadwinner. he helps out no doubt. i can't wait to fool around. i have been propositioned on live television. aren't faithful are alpha males. now super successful women are

super -- alpha females. >> there has to be balance. forhat is a recipe does it -- for disaster whether they are working or not. there is only so much time in the day. you have to make compromises. who is going to be that person that is ok with taking a step back from career? alternately somebody has to. if people have kids and housekeepers and nannies and all the plates are spinning, when one of those plates falls and somebody has to address it, who is it going to be? thet is always the ceo of household which is always the mom. >> a lot of people want to be somebody else. the best news for all of the

working moms are starting their own businesses. they are not going for the corporate ladder. they want to be in charge. i worked for myself. i could manage my schedule and my life and have a family and be getting up every morning and putting on a suit at 7:00 in the morning. it can't happen for me. wehow many years away are from meeting a successful woman and her stay-at-home husband? we from years away are being ok with that? when is that going to change? >> it is not going to change so much. the truth is it is an ego issue. guys want to be the breadwinner. they want to be the caveman.

the wife was the caveman. if the wife becomes the caveman then she is always apologizing for the husband. it is a terrible thing. it is harder for the guys than it is for the woman. it is tougher on the guys. >> why? 10,000 trying to reverse years of acculturation. >> it is difficult. this is just one of those areas. it doesn't change so quickly. be aich is tougher, to woman and a man's world or a man and woman's world? >> that is a really good question. tougher to be a woman. life is more challenging for women. >> just a little detail of

having kids. ones still have to be the to carry the child for nine months. we have this instinct to want to be at the forefront of mother duties. wethe same time, even if have all of the doors open for it, we stilln have have this as well. that is an extra layer that cannot be taken lightly. i had my first child at 46. i had no responsibilities. i was doing whatever i wanted to do. child, it was an interesting lesson and again change. rivalry, i wanted to be the best boss at work and the best mom and home. i couldn't do both at 100 and 50%. i sold my business. when you are an aggressive woman

and you want to get out of life everything you want, you've got to make those compromises much more so than the men have to do it. and that is the truth. >> was the biggest take away since you wrote the book? women identify themselves as feminists don't want to hear that there is a book like this in 2014. they get angry and i can understand that. i can say please read the book first. the most successful families where she makes more are the ones who can do away with gender role stereotypes where they are in it as a team. they recognize that they have insecurities and ego and all of that plays a role. you have to be able to communicate. >> our families in urban centers? even suburban families? >> all over the country. >> thank you so much. what, this is you

some of the best advice a cool 2 million women. you should read the book. >> thank you both so much. >> we will be back here and a couple of minutes on "market makers errico we have got the secret for father's day. it is no longer about weed whackers and lawnmowers. dad wants to look hot. ♪

>> what do bill clinton and harvey weinstein have in common? they have all been named father of the year. it is not a scientific process. two dozen people from the fashion business pick recipients they think deserve the award. winners include.

welcome. how about you dispense some advice to start off with. you have been a dead for 50 years best to mark? thehat does it take to do father of the year? >> you have to balance your children. , you canids are happy work better. you feel good about it. that is the essence. balance is so important. that is my advice. i have always balanced. we have board meetings and i cut them short to go to the soccer games. that paid off in dividends. >> do not enough guys do that? lose generally.

we get engrossed in what we are doing as far as work goes. you have to balance it out. i think you can be around to see your kids really achieve. that makes you a better father, husband, person. >> is father's day sexy? celebrate great dads. >> i think being a dad has never been cooler. i will give you a little rope on this. when you look at the history, mother's day has been around for 100 years. become aday did not holiday until 1972. fathers did not feel like the holiday was manly enough. >> i wouldn't mind getting monday off. -- the idea of a dad is different than it was a generation ago.

said if you're 25 or 45, your sweet spot as a guy is 35. that is the bridge between that younger guy we are talking to and the older guy. they have a lot more in common than when eric and i were kids. he wants to get that gift. he wants the same thing more often as not. >> men and dads have changed. is it time to take a turn now that men look like it boys like eric? >> we have is a care of the men. focused on women and fashion and looks. men want to look sharp and cool. .hey want to look more european that is why we went into the men's business. >> women's fashion has always

been a growth industry and extremely competitive. are there better opportunities in men's fashion? >> there is an opportunity now that didn't exist there in --. >> what were men like question like --? >> a canadian longer. >> he happens to be handy with a chainsaw. >> he put on a suit that he was probably not excited about. he took off we got home. guys today are excited to put on a suit, even if he doesn't have to wear one to work. dads don't feel like they have to be a stereotypical bad. to haveto be a paradox dad and cool in the same sentence. i hope dads are cool today. the 40 and sporty t-shirt

wasn't cool? >> doctors have become very slim and actually cool. >> they must advertise with you. now, you also run a family business. that is a difficult proposition. you have a spouse. you brought your kids into the business. how do you make the tough choices? is my creative director and my inspiration. she does all of the categories of women's. i do the shoe product. my family and extended family is the company. they are great young people and they are energetic and excited. we can create a culture. manyn't that the death of businesses? when you look at sports franchises that have been owned

by families? >> if you don't have the value system that we tried to instill myour kids, i try to treat sons the same way we would treat an employee. if you don't have the passion, step aside? done, i amk we have lucky right now. i have one or two in the business. >> stephany has been cracking the joke all morning that father's day is not for the weed wacker anymore. what would you buy for your dad? >> the card is the most important thing. >> make him a card. and it ismy cards unbelievable. >> on what is something they

made by hand. that means a lot. gq to giveso say at something that is significant and personal. thatnalize a belt buckle will get better over time. with respect to our friends in the thai industry, how about a pocket square? that to be monogrammed and his personal. >> is this the time for gq to start selling it? instead of me tagging them and then walking in to j.crew, when can i just clicked? >> that is the single the guest thing that i face in this business. how do we get over that hump from being the media vehicle that helps you sell it? be a mediae us to partner.

we have that screen and should be able to sell it. inventory.will hold tohow would readers respond opening the gq online and new that the products being represented there in an editorial context were being sold by the publishing company? >> i think it is fine. i think their suits are fantastic. i think it is a big opportunity. the set, the look, the quality. dadsnk you could introduce . really have to up the cool factor. we just learned that infidelity is up. >> is that what it is? >> i would say to buy your dad gift card.-- uber

>> thank you so much for joining us. a unusualtom endorsements for vladimir putin. i don't think he is getting dad of the year. ♪

>> welcome back to "market makers." stephanie ruhle is my name. vladimir putin is not the most popular guy in the west these days. investors are singing his praises. tos morning he spoke bloomberg. what did he say? >> he is the guy who when he

smells fear he treats that as a buy signal. he saw that as a buy signal. he bought into wash it -- russian equities. he said he is still buying in. he thinks there are lots of bargains. he is interested in the mining industry. this is what i found most interesting. about asked them business person he had buyers, listen to his response. he has a great deal of control. he is very logical in his decisions. >> clearly, he thinks vladimir

putin has shown restraint. he thinks the situation in ukraine will be resolved peacefully. pull --ws when to vladimir putin knows when to pull out. even played the bond situation. he thinks there are a lot of opportunities to be had in that neck of the woods. >> thank you so much. go home. it is time to go to the pub. jaywalker come back, has been here before. he has more patents then any living in venture. wantsll find out how he to shake up health care.

♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik and stephanie ruhle. innovation nation. meteoric newer who founded three companies with more than 50 million customers each. >> revolution and the doctor's office. wearables and smartphone apps are changing the way we approach health care. >> the best defenders. securitythe thets who protected vips on mean streets of brazil. welcome back. i'm stephanie ruhle. special houry

ahead. let's get to the newsfeed. the top business stories from around the world. torcrombie & fitch is trying get their teenagers back in stores. the struggling retailer has named a new president. he comes from the british clothing chain. it ever crime he sales -- abercrombie sales won't start growing again until 2016. drivers are said to demonstrate against huber tomorrow -- uber tomorrow. set for london, paris, madrid, milan. it is the latest chapter in the saga of donald sterling and the nba's los angeles clippers. sterling has said he will not support the sale of the team to steve ballmer. his estranged wife negotiated the sale. will pursue a suit

against the nba. i have to say, this story astounds me. to say,e his advisors quite down and take the money and run. why continue to put himself in the headlines? i don't understand where the possible upside is for him. >> i can't possibly put myself in his head. i can't answer that question. >> a rare moment when we agree. folks. note, we hear the word all the time. "innovation." what does it mean? we know how to encourage and inspire innovation anymore? the founder of priceline and executive chairman of patent properties. he is one of the world's most prolific inventors. he is here, and is our guest host for the hour. >> it's an unusual thing to say

because the first answer is always the same. what did you invent? for most people -- >> how many patents do have? >> i hold a 730 u.s. patents. >> are you most proud of any particular patent? >> the underlying invention that created a $60 billion ma market. rice line. -- working very hard priceline. how do we get them into the u.s. economy? patentse 2 million u.s. that have never generated one dollar of licensing income. that is a great question. why? the only way to get a license in america is to have a lawsuit. we have a country where, if you are an inventor and you invented a solution to a problem and you can't sue somebody, you will not get anybody to license it.

the system is broken. i don't want to start the conversation on a down note. let's talk about innovation. you belly wait for us. -- evaluate for us. >> most innovation in the world is making things a little bit better. if they are a guy creating a new chemical, it's about making things better. most things are about singles and doubles. >> a professor from northwestern wrote a very provocative and innovation inper. america is dead. that's not true. nationave an innovative -- all we have to do is look at the types of innovations that bubble to the top. when you look at what's going on on college campuses and what's going on in medical research,

you see innovation all across the economy. what you don't see is a lot of innovation getting into products and jobs. you see plenty of people innovating -- >> his criticism is that america is no longer the home for transformative innovation. >> i wonder what countries he is visiting. if we are not the home, what is uber all about? what are the face books and things we see? i don't see those things coming from abroad. economies are not grown by transformative innovation. they are grown by blocking and tackling. ou?is that an insult to y all the great minds are these 25-year-old. >> there is plenty of innovation at ibm and microsoft. they have norma's amount of r&d r&d.ormous amounts of they don't license them outside

and don't get patents on them. if they do, they can't get a license. >> why don't the ibms and microsoft of the world get credit for the innovation that is going on inside? ibm has suffered at the hands of shareholders lately and uber billion.ney to $17 or we to believe that there is nothing going on at ibm that is as valuable as what uber has done? >> it was originally a hardware .anufacturing company it went into consulting. ibm has been steadily innovating . maybe not as much as it needs. it is a big company and it's tough to do. you look at the ibm today and is completely different from the ibm of 40 years ago. the insurance industry is exactly the same. >> you look at ibm as an

innovator today? when i visit their campus, i'm not sure if i feel like it's a hub of innovation. >> you might not feel the buzz, but you go into ibm labs addressing innovation. when you are growing off a -- look at as ibm the insurance industry. an industrysee i that is in need of innovation. -- therehas been some has been some innovation on the insurance side. catastrophe bonds. >> some innovation. insurance andh life insurance, disability and long-term care -- you look at innovation, good look at those segments. life insurance as part of the safety net of our country.

try to find their life insurance today. nobody buys it. it is too much trouble. >> you were the guy with 700 patents. med.un ted give us a good idea. how do you innovate in the insurance industry? >> here is how we do it. we start giving americans a chance to change their premiums when they behave differently. we create and adjust will product that uses our lifestyle to say, hey, if i'm eating better and getting exercise and sleep, my life insurance premiums are to drop. for myrs start to paying insurance if i start acting healthier. we have no feedback loops. >> isn't that already happening in the health insurance industry? programs here. you are the exception. most of corporate america has

yet to figure out how to create wellness sense for employees. we have the phones and the networks and the begin of software. you will see changes in behavioral feedback loops in insurance and health that you have never seen in the last 50 years. that will be pretty exciting for america. >> what is something we can look at as right for innovation? >> health care is right for innovation. anybody who has been to the doctor's office and has filled out the same form 10 times were had an elderly parent who has not been nearby who has to somehow manage care remotely understands, we need to change the game. >> are we anywhere near the funding to innovate? >> when you unlock entrepreneurs and innovators, it's amazing what you can do with very little funding. we have the bones, the cameras, motion sensors. we have the elements.

what we need are the inventors to put this together. we are good at putting systems together. we leave the world at knitting things together. the chinese may be better at making it, but we are better at putting it together. >> it is the beginning of what we know is going to be a fantastic hour. the curator of ted med. >> roadblocks to innovation. the war against patent trolls. >> what do trolls sound like? >> i know what he looks like. like me before i get my makeup done. the muggers will be ready. we show you how the vips land to stay safe at the world cup. we are streaming on your smartphone, tablet, bloomberg.com. ♪

>> you're watching market makers on bloomberg television. i'm erik schatzker with stephanie ruhle. patents have long been a debate. this is a miserable with complications and all kinds of expert your -- all kinds of obscure fine print. jaywalker is the executive chairman of patent properties. with us now is marshall phelps, the head of the intellectual property at microsoft and ibm and now the ceo of an online patent research company. welcome. patent trolls -- >> what do they look like? >> small, hairy creature is. damaging is the patent troll industry to the american economy? >> certainly bad reputation only for intellectual property. i can say that. i do believe that there are some

really bad actors in the troll industry. they are small law firms that blanket the world with 15,000 lawsuits and a time. a time. more analysis is going to that, by the way. that reputation hurts. >> how do you fix it? >> there are a number of things going on. the supreme court has made it a point to encourage see shifting. the loser pays in a piece of litigation. >> i love that. were an individual inventor went been taken advantage of, you might love it when somebody is egregiously suing people. if you got stolen from, you would not like the fact that a big company could bankrupt you by taking you to court. >> may be the positive is this

incentivizing bad behavior. >> and we change the laws in this country, we end up with counter side effects we don't like. washington, it's not my place to solve business problems. at the end of the day, i would be very cautious. it is easy when you're going after a few bad guys to catch a lot of good guys and that net. then you really do damage to the economy. >> how about the fact that laws were written decades ago before things like patent trolls existed? >> they have been around for 200 years. these laws that have been around for 200 years, some are called the bill of rights. equate oldd to not laws with that loss. we need to be thoughtful. >> the supreme court has said that this is used fully in exceptional cases.

the question is how that broadens. >> we need to deal with the abusers. there is a handful. we also have a way bigger issue here. intellectual property is not on the ballot sheets of any of these companies. what happens here? network at the biggest -- >> hold on a second. what about goodwill and other intangibles? lumpedhis long area -- google willof times argue with your accounts. the goodwill line is generally relegated to transactions that have occurred. it is not related to how many trade secrets do you have or how many patents you have. your copyright portfolio or trademarks. none of that it appears. causes two problems. it is pretty opaque for an investor. you figure out what that means. not on the ballot

sheet, generally under managed -- it is generally under managed corporations. you can't count it, so does not exist. >> they are invisible assets. >> yes. they are quite large. ibm used to have tens of thousands of patents for which it generated no licensing revenue. marshall said, it's not on our ballot sheet and he turned it into a multibillion-dollar revenue stream per year at ibm. it wasn't even on the ballot sheet. >> that is a super relevant point. if you can generate revenue from intellectual property, every single investor would agree that it does have value. take a patent that is not generating revenue and put 10 people in a room and asked them to come up with a value for it and none of them will be able to agree. >> that's right. you need a context for it and you need to know if it's relevant. a drug patent is not relevant to ibm. it might be the most relevant thing pfizer owns. make sense for

these companies do have patents as place card holders? >> you don't want to have a party with those place card holders. if you want more invention in america, you need more research and development. if you want more research and development, you have to reward it and recognize those are investments and assets. just like your brand name is an asset or your copyright. >> we are coming off the financial crisis. we are coming to a time where shareholders are demanding every week, every month, every quarter results, responses from ceos. isn't it hard to have this beautiful lofty idea and it meant them -- and implement them? >> we are actually in better shape than we think we are. a little sunlight in the dark corner would make a lot

of sense for companies to do. the accounting profession has not stepped up. we still have an accounting system that is an antique. 20 years ago, economists would are20% of your assets invisible. 80% of the property. today, it is reversed. idea talk about rmb as one . you have worked at some of the big companies. there are difference between research and element for investors? >> is a 10-1 ratio. most money is spent on development. >> yes. >> people listening to the conversation will have a hard time getting their heads around reforma that accounting can actually speed the innovation process. you believe this? >> there is no question that we t if we account for

renovations, it will change what motivates businesses. i'm not arguing for accounting shenanigans. i'm arguing for reality. here at bloomberg, your assets are not just plans and equipment. of other things that are valuable. >> we need to take a break. dog the bounty hunter just walked by. sorry. there he is. i'm so excited. >> dog the bounty hunter is over there. >> i'm so happy that you're here. it still here. jaywalker is taking around. he is our guest host for the entire hour. >> we will have more when we come back. stay with us. ♪

>> we are back. >> i am holding it together here. >> this show is very exciting. >> unpredictable. >> during the commercial breaks, special things happened. i got to meet dog the bounty hunter. >> what are you going to start with? morning.own this i would get rejected that increased bit of 54 billion from valiant pharmaceuticals. both stocks are down today. a bill ackman is saying this is ridiculous. allergan shareholders should revolt. carl icahn was at war

with ebay over whether or not to spin off paypal. they are down. businessof the paypal is leaving ebay to join facebook to run facebook's mobile messaging business. he will report directly to mark zuckerberg. that is a high profile higher. -- high-profile hire. >> this guy out his kicks at the world cup. vip security agents watch your back. stay with us. ♪

37,000e were more than muggings and real alone last year. more than 50,000 murders across the country of brazil. you have quite a cocktail. now you begin to understand all security concerns around world cup. sap should be a big concern for everyone traveling to the games and it's a big opportunity for security firms. here's an inside look at the price of personal protection at the world cup. >> there is no value to human life. they will rob you. if you resist, you will be

gunned down. with no remorse, they will do it smiling. of -- this isent my security team. we know we will have demonstrations and stoppages, strikes and so on. it's how big, how violent they are that are still unpredictable. this could be a security nightmare. two others, like me, it is a challenge. misconception that these guys are nothing but security guards -- there is much more training going into it. these folks out here working are all top officials in their

field. they work to make sure that they understand how criminal elements are and how they operate so we can get better at protecting our people. we are looking for anything that may be out of normal. anything we need to be aware of. see that man is pulling up next to -- they may just be curious when they see this type of configuration. it has dark tents. -- dark tints. the key is to at least be moving speed, constantly in motion. roadblock and assailants come out all of a sudden and --

we have a potential situation. we avoid being stopped or being locked in by taking a helicopter .ut for protect it could cost you your life if you fail in this arena. we are not only protecting our clients and their families. it could cost us our lives as well. stephanie, there is an anecdote for you. spend the day with rubin learning about what the security means. .his is how they roll in rio

is the town of long guns. not shotguns or rifles. s, m-16s.r when a gang member sees somebody plotting handgun -- pulling out a handgun, it's a joke. >> for real? having a hold vip security crew around you, is that really going to save you? >> it is that kind of show. what did you think of brazil? >> it is a beautiful country filled with wonderful people and it's frightening. it is like going to a jungle where you know you are not the predator. >> is it frightening because you were told to be frightened?

>> i have friends there. they said, look, we are going to have to drive this way because there are carjacking issues. if you are a new yorker, you know where to walk. >> almost every car we traveled bulletproof armored car. not just in the city. >> is it a great country to be in the security business? >> of course. there is no better time to be in the security business than the world cup. for sure. >> there is a real revenue opportunity there. did you go? >> i would not. i have that kind of aversion. i'm not a giant soccer fan. i understand why people would. when it comes to safety, i'm not security about trading my safety for a lot of things. i have a wonderful wife and great kids. >> stay with us.

how technology is changing the relationship between you and your doctor. ♪

you're watching market makers her on bloomberg television. wearables, apps and tracking sensors are about to revolutionize the way we think about wellness. here to talk about the innovation explosion in the world of medicine is the global therapeutic head of neuroscience at johnson & johnson. our guest host for the hour. tell us what you do. let's start there. >> thank you. i am head of neuroscience at johnson & johnson. we are trying to come up with solutions which make a real difference for humanity. >> how? >> traditionally, we've been

focused on thinking about a single pill and we quantitate health by asking how my symptoms you have. that is archaic and almost industrial ways of thinking. to be asking what really matters to people, how they are doing in the real world. are they working? are they able to live independently? are they happy? we are trying to marry medications with other kinds of solutions that i can discuss at greater length to really influence people's wellness. >> you still need to get people better. >> there is no argument. what he is saying is, we have to have an integrated approach to health. we have to get out of this pills , measure, measure, done come out of the office, here's your bill, thank you very much. we have to start integrating health care. to have johnson & johnson talking that way, that is almost a heresy from a health-care perspective. >> is the medical industry on

board with that? they are accustomed to prescribing one pill or another. how are they feeling about this approach? >> there is no question we need to move in that direction. we're not there yet. there is a recognition that we really need to concentrate on wellness and keeping people functioning, not just symptoms. that is the way the industry is moving. people who don't adapt are going to be the losers. those who embrace it, taking advantage of things like sensors, smart phones, social media, ways to modify behavior with feedback loops, that is what is going to work. >> how do we incentivize this type of behavior? as stephanie points out, there is a medical industrial complex that is somewhat opposed to these kinds of changes. at the same time, we can observe progress taking place in other countries where such barriers to

exist and ask ourselves why can't we do it here. >> how do we change? we are doing in here. we are seeing the beginning of an entire revolution in people having and idea of what's going on in their bodies without .aving to go to a doctor if you will have an entire capability to see what's going on inside of you. >> those things don't exist yet. >> they are not far. a look at the start up out in the valley where a single drop of blood will replace the entire bloodwork exam. you will go to a walgreens store and take one drop of blood and within minutes have a complete let chemistry work up. that is only tomorrow. that is this year it's coming. you'll start seeing faster and faster innovation because a smart phone and an app and people who are saying i will need to figure out how i will get my kids healthier. >> how many years have you been

in the medical profession? >> 20 years. >> help us understand the rate of innovation today compared to the last two decades. >> it is astronomical. when you recognize that some of it is innovation of the biology level where we need to understand diseases better, but some is in the technologies. by putting together medication, timeostics -- moving to a of wellness, we can't wait until you have a heart attack or stroke. we need to prevent it. the technological advances are letting us do that. >> where is the innovation taking place? oride big companies like j&j government-funded organizations or college campuses or startups? >> that is one of the beauties. there is real liking mission -- one does not need to own all of

the innovation. one needs to orchestrate an ecosystem where you pull together the biology. it is taking place at the nah. how you want to target that molecule is taking place and pharmaceutical companies. silicon valley is coming up with the apps and the software and the sensors. semi conductor industries are coming up with ways to put it all together. we don't need to own it all. we need to put it together and come up with that or outcomes. >> i am amazed by all this. when you think about the impact it could have on society, do voters not realize this? when you look at how nih funding has been slashed, is washington not listening to this? >> it's always the first thing you cut. shows up as money you don't have to spend and your children have to pay for it. that is always the way it was. i think voters understand that there is a long cycle between

research, development and marketing. here is the beauty. we have seen cell phones everywhere. the speed of the research we have done is now catching up with us. are really on the cusp of an entire generation -- there are over 20,000 health apps. >> if there is one message you want to get out there -- you are new to our audience and new to us. we are blown away by this. what message do you want to get out? >> we are moving away from the pill,on -- physician, prescription next us. we are talking about solutions that keep people well and that will be the future of health care. >> that is pretty awesome. >> thank you very much. >> thank you so much. >> we will be back with jay

walker in a few moments with some final thoughts. ♪

>> time for some final thoughts from our code is for the hour, j walker, the founder of priceline. you happen to be the curator of the medical side of ted talks business. he was talking about a revolution in wellness that is coming. we were debating whether america and the medical industrial complex is ready for that. what about the government? what about the fda? >> we have a government which has said we need to protect people from anything that could hurt them. that is the great role of the fda. we live in an innovation society where we will have to take risk and have to try things and try

new personalized therapies. we can spend $50 million to do clinical trials if everybody has a different drug. i signed up for this genetic sequencing service from 23 and me. there are a number of companies out there in that business. 23 and me and i learned a lot about some of the as afactors that i possess genetically unique human being. the fda shut that risk factors part of 23 and me down the coast they were concerned that women who believed they were at risk of breast cancer by reading those result were going to go out and get a mastectomy. >> it is not fair. -- if you're a

government bureaucrat and your only mission is not to get cold before congress and criticized, you will be the most conservative you can be. what i just described is more or less the obstacle that you described -- >> there is no question. we have a clash of two cultures here. we have a culture of industrial medicine and clinical trials and caution and we have a world of innovation showing up and that is what we are talking bout. >> is the whole planet ready? we have more obese people in this country than ever. more people consuming saturated fats and high fructose corn syrup. do they actually care about this innovation? >> for 25% of the people who have heart disease, the first symptom is death. death. we can't detect cancer until it is six years in our body.

we need to have innovation. if we are going to amend the obesity crisis and not innovate around it, we will never alter the trajectory. >> this was a very special episode. the founder of priceline. we will see you tomorrow. ♪

>> that is going to be it for "market makers." a remember my highlights. you can catch that on bloomberg.com. >> it will be there for eternity and prosperity. we will go to the conference with -- the hour.6 past that means bloomberg television is taking you on the markets. scarlet fu has more. stock market is taking a bit of a breather after the s&p 500 had close at a record high for the past four

straight days. for today's options and insight, we welcome max breyer. whereack to the cover o they talk about volatility extinguished from central banks. and there is a remarkable called across the financial markets right now. >> the latest central-bank policy meetings -- these are a further dampening effect on the market. the jobs number in the u.s. came out pretty much right along with expectations. and already dampened volatility just got a bit less exciting. lowerthis continues to go , do you agree with george magnus that this is a call before a storm? there is a great moderation before 2007 when anything blew

everything blew up. >> there will always be another storm. there is no real obvious signs of an asset bubble anywhere. which would precipitate the kind of storm we're talking about. in thes from venus market. it is our to see where the big catalyst comes from. ness in the frothin market. >> we have been keeping an ion facebook. they made a big talent grab. the stock moved above $65 for the first time since march. >> this is a big who in the world of tech. they successfully poached the head of paypal from ebay to run their messaging division. this follows a very large $19 sapp.on purchase of what

they are committed to the messaging part of their business and monetizing that. so far, that is been an area with high traffic. it has not been a monetize a part of thetizable business. let's get to your trade for the day. it has to do with an exchange traded fund. downside play on the metals and mining etf. >> it's a somewhat diverse mining etf. inside of the composition, you have: stocks and steel stocks and a bit of a smattering between aluminum and copper. there are negative dynamics going on in each one of these industries. coal.is an oversupply in a production in the u.s. at lower costs. production in the u.s. at lower costs.

a stock substitution or a leverage play? , somaticerall secular type of play in the industrial metal commodity lace. we will be back on the markets once again in 30 minutes. "money clip" is up next. have a great rest of your afternoon. ♪

>> welcome to "money clip." thisis the rundown for tuesday, june 10. atech, the video battle from gaming console to tv screening, we will take you there. recall protesters want answers at gm's annual meeting. they will probably be disappointed today. will hear what he has to say.