-- other types of issues. >> restrictions, in other words. >> it did not say that, but it's clearly a concern. >> thank you very much. we are on the markets once again in 30 minutes. ♪ investing in the dark, new york's attorney general claims barclays dark cool deceived ordinary investors while catering to high-frequency traders. >> go pro goes public. the camera maker now want to position itself as a media company. we will talk with the ceo. let's jonret weapon stewart and stephen colbert come up with those hilarious video clips. we will be speaking to the ceo of snap feed. welcome to stephanie ruhle. >> it is your own show.

i am her sidekick matt miller. >> "market makers." >> let's get to the newsfeed. the top business stories from around the world. consumer confidence is still close to its high mark for the year. the bloomberg consumer cover index was unchanged last week after three weeks of gains, the second highest it has been since 2008. in a report says consumer spending grew load -- less than forecast last month. or largest a lawyer reduce -- alcoa has agreed to buy british aerospace parts maker for $2.9 billion in stock and cash. alcoa has been closing on probable smelters because there oversupply of aluminum. the world's largest furniture seller is raising its minimum wage in the u.s.. workers making the minimum wage will get an average $10 76 cents

starting january 1, 17% raise. it will benefit about half of ikea's employees. the minimum will vary based on the cost of living and their 38 locations. everyone is talking about on wall street, new york attorney general eric schneiderman is a busy guy, pursuing charges against several banks for all sorts of reasons and yesterday, he sued barclays. he alleged it like to its clients about how dark pools work. basically saying he is accusing of telling clients that were protected from high-frequency traders would in reality, barclays was allegedly courting selling to those very traders using its trading platform. let's bring in the moment from the attorney general speaking yesterday. >> our complaint alleges this marketing of protections of a system of safeguards was false. the lawsuit filed today charges that berkeley grew its dark pool into one of the largest in u.s.

by telling investors they were diving in to safe waters when in fact, barclays dark pool was full of predators who were there at their invitation. >> that spring in our first guest to discuss this, richard farley, securities lawyer. carrie for what happened? >> the gauntlet has been thrown in the arena on this. we have our first case since the firestorm started back in march with the ag opening up its investigation. congress holding hearings. barclays is in trouble for basically deceiving its customers on how it runs its dark pools, including where it routes their orders and how much it allows high-frequency traders, which use dark pools, the kind of troll around and figure out how traits are being made and where prices are being set into it dark pool. >> what do you think of this? >> we'll have to see with the facts show in terms of whether

there is any misrepresentations and the documents. the people who are the alleged victims of this fraud are perfectly capable of pursuing their own remedies. it seems odd to me there is no crime alleged here. what the ag is saying is that some of the most, you know, investors who are the most knowledgeable and sophisticated -- >> were talking about -- >> called on, hold on. >> i'm just getting -- let me finish. if those individuals are the alleged victims work perfectly capable of filing a lawsuit against barclays and taking care of themselves, why do they need ag, who should be taking care of widows and orphans, to protect them? >> the ag has the martin act to rule out martin fraud and that is what this is built on. are they deceiving their clients fraudulently and is that followed are the martin act? the way they have used informants from barclays -- employees kim porter showed the deception of these practices.

that is how this case build. that is why the ag when after -- >> the ag can pursue any alleged fraud he wants. is it unusual to suspect their headlines? but the lawyer for the people of the state of new york, shouldn't the agb pursuing the fraud crimes on behalf of -- >> sure, but if your counterparty, how to know that information if you do not have law-enforcement get involved? >> i will tell you how, because those same employees are almost certainly going around to the other people in the dark pools, telling them the same thing -- >> called on a second. if you are a client of barclays, you think of barclays ex-employee is going to click on the phone and say, by the way, this is happening? baloney. >> disgruntled ex employees? absolutely. washere is zero chance i going to get the call the head of blackrock and say, by the way, guess what db is doing. >> of course. >> you would want to know if

your counterparty was lying to you about it and giving of false marketing the trails and different things, you would want to know, right? >> yes, but if i was a neck salesperson, i would not be calling a client. maybe i would be a whistleblower and call the government. >> them a break in for a moment. the supreme court has just come out with the ruling. the justices deciding to rein in the president's ability of the united states senate to make recess appointments. a big loss for president obama and executive power in general. megan hughes is outside the high court to give his the braking details. >> this is a very narrow ruling, but it was a loss for the obama administration. at issue is the president's power to make recess appointments that members of congress did not approve. in this case, we're talking about january 2012 and the president appointed three members to the national labor nations board and senate republican said, wait a minute, we were not even technically on a recess.

deciding the president still has the power to make those recess appointments, but saying in this case, the administration did not respect the will of the congress that they were actually weren't in recess. it also puts time frames and limitations on what a recess is. anything less than 10 days isn't going to be considered a recess. an hour ruling. there were some questions whether this presidential power was outdated. it is an m rated and listed in the concert -- in him rated and listed in the constitution. there is some question that this would have been completely overturned, and there are rolling, but a hit to the obama administration. >> first of all, it harkens back to an era when ross and rachel were on a break on "friends did quote? it "harkens was

>> get to wonder about the validity of the decisions made by the people who were appointed during the break or the recess. if it is not a valid appointment. moot some level, it is a one because two of those three people have since been approved by congress, and the consumer financial protection bureau chief was also approved. the other question is the decisions that were made. the 1000 decisions that came out about unions and employers and how they communicate and relate to each other. does that throw some of those decisions into question? will there be more litigation? one of the plaintiffs was a business impact to buy one of those nlrb decisions. they need to do some gravitational what this means for those decisions. very much, megan hughes, standing up front of the supreme court. we expect more out of the highest court in the nation

today. i think it is a good thing we have richard on today. what a serendipitous booking that was. what you think about this? things. one, the decision was unanimous. >> that is rare, right? >> very rare. secondly, it's really this means more divided government for more roadblocks. decision, you can at least get some people in seats in order to keep the government functioning. that makes that makes it incrementally more difficult. >> checks and balances were considered important to the founding fathers. >> the senate is an anti-democratic constitution to begin with. elected by popular vote. >> i want to point out richard farley is a fundraiser for democratic candidates. just a little caveat. a little grain of salt. >> to get back to barclays. what you're telling us is the government should not be involved, disgruntled barclays

employs would like to be whistleblowers should not reach out to the government? they should reach out to customers? >> you have a limited prosecutorial asset. you don't have an unlimited number of lawyers in the state of new york to pursue every alleged victim. so which ones will you choose? i was out with eric schneiderman last night and we had a nice this.bout i don't doubt this is in good faith. i think there are grounds are for him to pursue the investigation. i'm not saying this is out of bounds, prosecutorial misconduct, but it seems to me these alleged victims are more than capable of taking care of themselves -- >> what we have said that five years ago and investors were getting involved in cdo squared and felt finance deals, saying we were swindled? >> absolutely could say the industrial bank of germany should have known better. i think people did say that at the time. now carl levin disagreed am -- i mean, there's some benefit to

carl levin because that really made him as a senator. ,> and couldn't you have said bernie made off investors were not victims, they knew -- >> that was different. many were widows and orphans. >> we than waiting for a good case to come down. everybody has piled onto this. aw it seems like we have pretty good case. if you read through the complaint, there are some pretty bad e-mails like a lot of these wall street cases. it comes down to the fact that wall street might start embracing it can self polices up a little bit so we can root out some of the stuff going on at the banks. bottommately hurts the line and shareholders. >> is like a commercial dispute between very, very capable parties who can resolve -- >> we want to understand more of what is going on. >> and there are ways to do that. one, congress can investigate, the sec can hold hearings -- there are many ways to do this other than --

>> they don't -- >> on behalf of the attorney general protecting the hedge funds and mutual funds and pension funds who obviously -- >> i want to break in and read a statement from barclays. they say -- what do you think about the cooperation? >> look, all of the banks have gotten religion they did not have a to begin with. i'm sure they're cooperating and taking serious. keep in mind, these are allegations. you never want to accuse anyone of playing to the headlines. this is very early on. >> on the other hand -- >> bernstein --

>> they have been waiting for a while. it's just yesterday, bernstein disabled the access and shut it down because of this suit. if bernstein is doing it, could we see five other broker-dealers do it? >> his hand was forced. how can you not when you now have this lawsuit brought. you have to respond of your bernstein or others. , g, why did you not freeze things and analyze the situation before continuing -- >> corporate fraud is corporate fraud, whatever form it comes in. if this happens to be the case with barclays, that law-enforcement needs to take certain steps to deal with it. >> it makes a very interesting dark pools. previously, you would thought of institutions and make a block trades and not that worried about thing from online brokers on the floor or in an open system. and that made sense. now if you think that someone who is running a dark pool is routing as some as big as barclays is routing all of its orders through a dark pool in order to provide itself the kind

of liquidity and marketing traders and letting hft from run as orders for a fee, that is a real argument against dark pools in general. eagle fraud or not, it really makes a big statement and the whole dark pool debate. >> would potentially need the government to get involved here? >> this will open up and let us take a look at how one dark pool is operating. i think there's a huge opportunity for all of us to learn more about how this -- >> that is -- >> and as there are things about this industry or this product that needed change because it is ultimately not transparent enough and hurting investors. >> that is an important point. this will open it up. one thing for my chat with eric schneiderman yesterday, this is only the first. there are other things he is looking at. we can expect more. thesethese things, counterparties, all have egg on their face that nobody was saying anything until michael lewis wrote a book? >> i don't think that is true,

actually. joe, and large cargo some speaking on deaf ears. people were not listening to joe. suddenly, michael comes out with this book and now everyone -- >> michael lewis's book was like two years late to the party come if not three years. i heard so much -- granted, i worked on the floor of the new york stock exchange and i wasn't up here that often, but i heard endless resistance of high-frequency trading and dark pools every single day. >> may be needed michael lewis's megaphone for everyone -- >> it definitely got main street and how they might be being hurt by some of these practices. the general public is now behind -- >> and eric schneiderman. if there's anything that has been consistent from day one is that main street is always last in line and will always get the short end of the stick. of the rolet and rulemaking in washington, which is i think

of the real story, why hasn't washington been on top of this and enacted rules? the idea that if you shave up in here or there but somehow it will dribble down to the ordinary investor, i'm not sure that ever happens. >> thank you both. keri geiger and richard barely. tune in at 3:00 today, we talk about eric schneiderman. you will be speaking to trish regan about these charges against barclays. we have a lot more after the break. >> coming up, the camera of andce for surfers, skiers, bikers. go protest went public. we will talk to the ceo, nick woodman. ♪

>> welcome back to "market makers." we are waiting for the ipo of the day to start trading, go pro, priced at the top end of the range last night. in a few moments, we will hear from its ceo. i want to bring in another superstar of the day in the meantime. dawn fitzpatrick from ubs

o'connor, the six playing dollar hedge fund unit in a swiss bank. -- $6 billion hedge fund unit in the swiss bank. womenely do we see running hedge funds and big thanks. you're doing both. how do you work? liquidocus on relative investing. equities, mobile listed equities with the remainder primarily corporate securities. we have 15 different investment teams that all focus on relative value investing. that is we try to create returns that look very different or uncorrelated traditional asset classes. equities or credit. that is really our value proposition. >> how does that work inside ubs? those watchers say, hold on a second, we got hedge funds were completely kicked out of banks. what are you doing there? >> we don't have any bank capital.

we are completely compliant. ubs is a pre-minute world wealth manager in the world and we are confident manner he to that. their goal is to put a lot of distance between them and the competition. i think they have been really strategic in terms of focusing on businesses that are going to help them reach that ambition and o'connor is one of those businesses. the kind of returns stream we give their clients is exactly what they're looking for. we are capacity-constrained. if you're high net worth investor, the only way you can access o'connor is through ubs financial advisors. >> today, everybody wants access to go pro. are you playing it? >> we are. our allocation was a little light, which means it will probably trade really well. valuation is good. i think the growth in the next couple of years, particularly in foreign markets, supports the

valuation. the media content business is a call option that you're getting along at a pretty cheap price. we like the deal and we participated. >> let me talk oh pro with the ceo who is with us now from the nasdaq. it priced at $24 a share last night, the top end of the range. how is the company and nearly $3 billion. nick, thank you for joining us. let me ask first of all about your decision to go to nasdaq. were you not concerned about what happened with facebook? >> no. i am an operator. i'm in business and i understand these things happen. nasdaq is a fabulous platform for us to take go pro public. they're very passionate brand and organization. it was an easy decision. >> the deal was so well oversubscribed, why did you push pricing even higher? >> well, we want to extend the

to our newexperience customers, our investors that are camera customers have. and that is one where we like to exceed expectation. we are extremely excited to share go pro in this two-dimensional as a public company and get the story out there on a global scale. we just couldn't be happier. >> you are selling some shares. why are you doing that? >> i'm still going to own roughly one third of the company , now that we are a public company. i started go pro 12 years ago and bootstrapped it. i've never been more passionate. we have a lot of employees that have been long-time believers. it is important they get to participate in the success they have built at go pro an extremely important for us to remain competitive in silicon valley as we try to recruit the .rightest and best out there

and in a public company just makes it that much easier. >> will disclosure, i am a user of go pro. we use them here a bloomberg. today, a strap to hero three plus to my chest and walked around making a video of the market makers team. what about the competition? we are still using these, but there are a lot of other small wearable camera makers out there. the barriers to entry are so low, how do you differentiate yourself? >> truth be told, we had competition since the beginning, but in volume, since about 2008 when go pro started to have some success. we started to see low-cost competitors knock off and show up. we've had some of the bigger consumer electronics companies compete with us in the last two or three years, and only seen

our market share grow during that time period. >> how can you market share grow from 100%? >> we are in a little bit of a different business at go pro. we think of ourselves as being in the content and enabling business because we recognize when our customers capture and share compelling content of exciting and interesting life experiences, and a tag, title, described it as go pro, our customers are virally driving enthusiasm and awareness for our company, our brand and products. to give you with go pro, you have to have millions of people capturing and sharing their experiences and giving you credit for it. that is why our competitors have not made any inroads. >> how are you going to monetize this content strategy? pro videos.ing go you don't currently pay for them. how are you going to change that? >> when you say go pro, what you think of? they say, the amazing videos. as athink of go pro

consumer product company, hardware company second. what that tells you is we have a global audience that is engaged. and when they see our logo hit in the video began, they know they're about to see something interesting, so they pay attention. and by definition, that is the job of a media company, to engage an audience so you can then monetize that engagement. it is not something we're started doing, but certainly an opportunity for us. >> but where exactly do you monetize, and advertising? >> there is a number of ways. we are really helping to shepherd the life span the lifecycle of video. sellingize it first by a capture device. then if we have content creation tools and services, perhaps, we may be able to monetize help our customers great summary edits. and there is an opportunity to monetize the resulting programming. they go pro, we are able to aggregate the best of our

customers content and redistribute it on the go pro channels easy today. >> nick woodman, thank you for joining us. shares just about to start trading on nasdaq. >> we will be right back. ♪

dawn fitzpatrick from ubs o'connor is joining us. dawn, running the hedge fund unit at a time like this, i feel just a week ago we are reading other funds are taking it on the chin because of low volatility. >> we've done a lot of work in terms of the relationship between volatility and environment to make money. and we don't see relationship there. this year, all of our funds are tracking ahead of where we returned last year. last year was a really solid year for us. oft you don't have is a lot fat pitches out there. >> what does that mean yeah go >> the big trades like the

lehman recovery traits that a lot of hedge funds put on there were just amazing good risk traits you could put on in big size. those are not out there. what we're finding is a lot of little trades that you can put on and hit a lot of singles and the win-loss ratio is extraordinarily good right now. >> how come long short equity guys in the spring -- was it may echo they got chewed up that month. how did you avoid that? >> they did get really chopped up. use a big reversal and momentum and growth in stock. i believe what happened, cta's had to unwind equity positions. then you have a lot of market news the relative value funds like o'connor they got really big. when you get that they come you're forced to write -- manage risk when a list of glee. when it starts rolling down the hill, these bigger market news hedge funds cut of continued to

push it down. the credit he and markets has really to tear rated post crisis. it doesn't take a lot to start a liquidity cap. >> why is that? >> dodd-frank. if you use credit markets as an example, 20% of the level they were in 2007, the corporate credit and u.s. has doubled in size. if you think about that in the context of liquidity, it really tells a lot about how vulnerable this market is to liquidity gaps . and i think that is something that we as a hedge funds been a lot of time thinking about. we want to be able to take advantage of those liquidity gaps and not fall victim to them. >> where do you fall in the surgeons of activist investing? yesterday from a bill ackman, john paulson and this activist

state when it comes to allergan and valiant, wordy stan on this? are they just messing up the game for relative investors? create a lot of opportunities for hedge funds. we are not going to be leading the charge in the headlines, but we are active in merger arbitrage type traits. i think generally, activists are good for corporate america's governance. i think every ceo and cfo is in fear of an activist showing up on their doorstep. there's probably some behaviors that are positively impacted by icahnn.s of ackmon and an elegant's case, it was creative. wasnd allergan's case, it creative. taking that aggressive approach in partnering with the suitor. >> in terms of big lumpy opportunities, you say there are not as big moments right now but

it seems like every private equity guy we speak to them every distressed guy saying, this is the moment in europe but it doesn't seem like it is happened yet. >> i think people were way too early to the opportunity in europe. so much money was raised post crisis on the thought banks were going to be forced to sell inventory. it really hasn't developed as quickly as it should. we are seeing kind of the publicly traded corporate market start to accelerate their. issuance this year and last or about even. last year was dominated by the financials. this year we have way more diversified set of issuers, which is great. in terms of the credit opportunity in europe, you're better off going with the 10,000 pound gorillas because the key is getting access to those deals. i think it to be able to take down a billion dollars of a clip to do that. >> if the key is getting access, is there any space for hedge funds that want to start up right now? if you've only got $100 million,

$200 million, can you get access to the key deals? do you have enough money for the risk like firms like you already have? >> that is a great point. the bottom line is, the breakeven level for hedge funds start up has gotten higher because of the regulatory environment. one thing we find is we see the best out the right now in europe and that is because from a regulatory perspective, it is the most restrictive. in the u.s., all you need is bloomberg and a shingle and you can be an equity long short hedge fund manager. differentope, their reporting requirements, it is way harder. but decorates a really good investment environment -- but that creates a really good investment environment for hedge funds like us. >> when i look at the hedge funds that have grown massive in the last few years, it seems platforms. vertical

within one hedge funds, three credit teams, three long-short equity teams that are not even working together. they're getting high payoff and really working a stallion strung together on that track as fast as they can. you're not working in that way. do you think you should be? motto is think our better. we can feed our own terms. we have completely open architecture. we have 15 different investment teams. every one of those teams and see everyone else's positions and trades real-time. our teamsencourage talking with each other. we don't have overlapping competing teams. we also -- we don't cycle through our investment professionals at the same speed as everyone else. he'll shower was a great example. -- wilshire was a great example. when they made the bid for pinnacle, right away he was talking with our merger arbitrage scheme is that he thought it was a defensive maneuver.

throughout that cycle, are teams made good money and our corporate credit teams made good money on that trade. i think for us, the whole was worth the sum of the parts. >> how many years have you been at o'connor? >> i'm just about to have my 22nd anniversary. >> you're a mother of three. i'm going to start a new segment, "hey, mama, can you believe this?" matt lauer talk to mary barra about her role as a ceo. take a look. >> you said in an interview to long ago that your kids said they're going to hold you accountable for one job, and that is being a mom. >> correct. >> given the pressures of this job at general motors, can you do both well? >> i think i can. i have a great team. we are doing the right thing. we're taking accountability. also, i have a wonderful family and supportive husband, and pretty proud of my kids the way

they're supporting me in this. >> i'm letting you know, i'm saying to matt lauer, are you kidding me? can you be a mom and ceo? what do you think about that? obviously, i'm a strong opinion that you can do both. i think i am a better investor and working harder today than i am pre-kids. it takes juggling and the deathly don't do all things well at all times, but it has grounded me. >> can i break in? it is offensive -- it has to be offensive -- >> when matt miller gets offended -- >> what does it matter what else you are doing? i don't understand. he would not have asked dan ackerson that or janet yellen if she can be a mom and -- i don't even know if she is a mom. it doesn't matter. i can't believe it. i can't believe it. >> in the hedge fund industry,

97% of the senior investment professionals are men. to me, it is a huge advantage being a woman. we saw problems differently. if everyone is looking at it one way and i see the different way, it is an advantage. >> be honest, why aren't there more women who have your job? >> when we go to higher portfolio managers, and we will get 20 applications, sometimes not a single one is a woman. that is frustrating to me. we're just starting an incubator program where we are taking people from atypical paths and trying to train them to be a portfolio manager. part of the thought process behind it is back to liquidity markets. as liquidity is come out, i think you are to be an independent, creative thinker. you don't want to be in the hedge fund crowd. incubator program, we are trying to look for women. i've mandate or estimated one

third of the hires should be women. hope for me, because i have a fat left tail. >> i like that. >> dawn fitzpatrick, thank you for joining us. >> coming up, from comedy shows to presidential campaigns, the one device you can't do without when you're searching for video. and you have probably never heard of it, but it is an amazing tool. ♪

>> welcome back to "market makers." the secret sauce behind the satirical daily show montages, the ones that look something like this. >> late last week, it all went down. >> the white house on the defensive over a new smoking gun benghazi e-mail. >> some are calling it a smoking gun. >> the smoking gun. >> smoking gun.

[laughter] one of the worst kinds of guns. smoking gun. quick sifting through hours of tv to find those clips is not a job left to interns, it is technology brought to by snap stream. here to talk about how they make late-night even funnier is their ceo from houston, texas. we have been giving all the credit to the producers over at "the daily show" that we should be thanking you. how does it work? >> thank you. the producers do deserve a lot of credit. they come up with the ideas. what snap stream is is a tv search appliance. it is a box that allows you to record lots of tv. think of it like the dvr on steroids. one box can record up to 10 television shows at a time. and what we do is we make it so you can search inside those tv shows to pinpoint a very

specific piece of content. for the segment you just did, ae producers would have done search for "smoking gun" and it would have found all of the words -- places where it showed up the media. you can watch the show from the point where they said "smoking gun." a dvr with you cross a search engine, we allow people to record and then pinpoint those in the visual bits of content. >> so they do have to set up the box to record specific shows. it's not like you just have it up and running and recording all of cable television content in america. >> as i said, it is an appliance. you are right, they have to schedule the recording. we have a program guide that makes it really easy to record practically everything. your home dvr had season passes we can record all episodes of a show and with snap string, you can record all shows on the channel 24/seven with a single click. most of our customers set up the

domain of things they want to follow up front and then set it and forget it. from that point forward, it records everything. step stream has lots of storage. they can go and fish out content , weeks, months, even years after the fact depending on how big and been archived to build. have monitor what people -- do you monitor what people ulled?old -- p >> it is an appliance located at our customer's premises. we don't track what they're searching on. we have customers and federal government, the united states senate and other federal agencies -- we have a lot of financial institutions, hedge funds that use our products so we are not monitoring -- >> how does a hedge fund use your product? tracky would use it to

news that is unfolding in financial markets. take this morning, go pro with going public. we could find all of the places bloomberg.o was on my mention would just show up on snap string. it is done in real-time. >> i can see a lot of different uses for this kind of machine, show goesd "the daily quote and hedge funds and federal agencies. how is the market growing for you? >> with a very interesting set of customers in addition to the categories are mentioned, we have folks in politics, the rnc and dnc, the media watchdogs on both sides. numbers?w about the

what are we looking at? >> we have a few hundred customers. it is a niche business. not everyone needs to be able to have this kind of intelligence about television, but there are quite a few. our biggest challenge to growth is awareness. vcrswe see as a stack of and dvr's and customers just don't know upfront there is a much smarter way to record tv and then find whatever it is you're looking for. >> has google approached you to potentially buy you? google is the mother of all search engines. >> what we do i think is pretty specialized. we are expanding to do some other things. nowadays when people are watching tv, they're chatting about the tv shows they're watching on twitter and facebook. we are adding some pretty amazing social tv functionality

to our products. you will be able to see the tweets were the facebook messages about the show right next to the tv show, post screenshots as well as short clips. there is more to come in that category. >> hold on, then it is about raising awareness? to me, you look like a prime acquisition target for google or facebook or twitter. are you in talks with any of these companies? >> we are not in talks with anyone at this point. >> i just wonder if you have plans for consumer facing product because it would make a lot of sense for you to set up 100 of your own boxes, record everything, and then allow people to search for a charge. inwe actually started out the consumer space. we got out of that business because the product we made, which turn your pc into a dvr, we sold it at best buy a micro center and all the retail stores -- he got out of that business not something the

everyday consumer would be able to set up. it involved installing hardware on your pc. we know the consumer market really well. the barry just did in future of television. i think tv is going or is being transformed, but there's is going to be a sea change coming and he may be a part of that, but our focus right now is this enterprise tool for searching television and then for social tv. >> they do so much for joining us, rakesh. >> coming up watch the tv ratings go up for golf. guess why. tiger woods is back. ♪

, go prove breaking news has started shading in the -- trading in the shares are gaining. it went out for $24 late last night. the company raised 427 million

dollars. .t is now up to $29 36 rising even as we speak. go pro getting some big gains in its first day of trading, making, i believe nick woodman, a billionaire, the founder of go pro. trade.teresting you would have expected it to do well. it has been a couple of years since the days of facebook at the nasdaq. live, learn, make mistakes and improve your system. >> looks like he is having a big day. moving on from another big guy, tiger woods returns to the green today. he has not played competitively since undergoing back surgery in late march. it is hard to say who is looking forward to the reunion more him a the tiger -- moore, tyco or the pga. we take a look at the numbers.

my mind is always blown by the fact you have tiger woods and no one else. >> these days, it is everyone else and not necessarily tiger woods. golf is at the same without tiger. ofis playing today because an affiliation with the charity. he is not doing well, either. she was absence from this year's masters. you saw it right away the tv ratings. the 2014 final round, seven point eight rating. 7.8% of u.s. households tuned in, the lowest since 1957. down 1/4 from 2013. tiger, his value is drawing in the casual viewer. when he is not there, people just are not interested. >> can you name five current golfers? mickelsonaldson, phil -- >> and that is it. >> two. >> out to say, given able to say

phil for 30 years. >> i love watching him. what time does he play? >> what about three tiger contemporaries? >> that is the issue. tiger missed u.s. open and we saw the resell value of u.s. open passes plummet by almost half from the same time a year ago. just showing how much he attracts the casual viewer. in terms of the number of tournaments, he is 18 in 2012 and 2013. he is judged on majors. he is not want any there though since 2008. he is about four way from tying technic was record of 18 major championships. nicholas record of 18 major chairmanships. >> can you be a dad and a golfer? >> gosh, i don't know. let's ask mary barra. >> we will be back in just a few. ♪

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>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. the death sentence. is there any way area oh can survive after that sentence from the high court? we look at the options. >> the maker of action sports cameras is up as much as 20% on its first day of trading. >> and world cup fever is hitting the united states. tell the truth. an hour from now you want to be doing any work. you will be watching the big game. makers."e to "market

i am matt miller. erik schatzker is on assignment. i wonder what he is researching right now. the supreme court has handed a defeat to the obama administration, limiting their ability to appoint people to jobs.evel it was unanimous. senate republicans brought the suit. to the u.k.risk recovery is the housing market. the central bank is imposing new limits on riskier home loans prompted by booming demand for real estate and an increase in mortgages.ncome according to a aaa survey,

almost 35 million americans plan on driving 50 or more miles away from home during the holiday, the most since 2007. they will be facing gas prices a six-year high for are those of us in america but still laughably low to people in other countries. >> re: going to be driving? >> where will you be? >> on the beach. >> me too. >> we should hang out. no. megan hughes is at the supreme court with republican senators. it was a win for senator does for republican senators. this was a narrow -- this was a win for congressional republicans. >> this was a victory for constitutional government. the president is not a cane.

the president is subject to checks and balances by other branches. the ruling tells us the president may not use his recess appointment power when the senate is not in recess. >> what does this mean for the decisions made for the nlrb when the president made appointments in 2012? >> it means that the rules, orders and decisions made by the court,dly constituted made between 2012 and 2013 when the senate confirmed people may well have been invalid because and inan invalid leak -- validly constituted board. >> is this power out of date? the horse and buggy era that is there would be a

vacancy and people would not be able to get back in time to fill it. >> the opinion offered by justice scalia for conservative members of the court and the decision offered by justice realr are of no consequence for people in this state. but justice scalia says the vacancy has to arrive before the recess and not during the recess. dayer two, the numbered rule says that the recess cannot days.s than 10 adding justice scalia's opinion is more true to the , but again,al text that opinion for the work is as of this case has no practical consequences. >> what about john boehner's accusation of the presidents

general abuse of executive power ? where do you see this case sitting into the bigger picture? justices, including the justices appointed by this president, rejected his assessment that he had the authority to do this. this is the indication of the kind of reckless authority you of by this president outside his constitutional authority. speaker boehner is onto something that he has overstepped his bounds not only in this area but in other areas as well. republicansomes to and the tea party and senator cochran's victory this week, what does that mean for the tea party? are we seeing a loss of momentum? refer to them as the tea party, others as constitutional conservatives or grassroots conservatives. sometimes they may have a candidate to defeat an incumbent. sometimes to republicans may be quite conservative.

they are both influenced by the grassrootsnal, conservatives. and i think you're seeing that all over the country. >> will you concede the tea party candidates are having a tougher time in this election. >> i would not say that. anytime you have someone running you haven incumbent odds overwhelmingly in favor of the incumbent. but people like ann sacks, who inrunning for senate nebraska, have one. >> they do so much for being there. -- thank you so much for being here. >> the supreme court ruled yesterday that every owes -- is just ainess high-tech way to steal content. our guest is from an investment

bank dealing with media and properties. what did you think of this? rights for broadcasters, it is like eureka. i cannot imagine that they are not cheering. >> they are. decision,s like a 6-3 and then you read the dissent. the dissent says, "i share the court's opinion that what aereo is doing on not to be allowed." the conservative bloc of the court didn't like the idea of how the majority got to the decision, but the decision was virtually unanimous. trish regan spoke yesterday with les mendes and he was doing a little jig, basically.

the other side, barry diller, has previously said if we lose this decision, game over. he told erik schatzker in an it.rview, that's this is a bet where they have to win and if they lose, not only if they lose big like they did, but if they lose at all it's done. >> i think it's done. i think it's completely done. >> the death knell. >> maybe you could take this technology and go to some area if the world that doesn't have copyright laws, but you're not going to use it here. and broadcasters don't need it. they are not going to enable it. so it's over. >> it's hard to explain in you can'terms why take something that is free and sell it on. i mean, it's free over the airwaves, right? >> it's not free. somebody has to make the stuff.

>> it's not free to make, but they give it away to anyone with an antenna. >> that's not quite right. the copyright act protects distribution of content and it was revised to protect the framework of people making this kind of stuff. >> the copyright law was amended in 1976. does it mean to be revisited? that was a long time ago. the dissenting opinion sort of says that it's still not right. there was a loophole that they were seeking to exploit and it should be erected. bet was that should corrected. that was what the dissenting opinions were about.

but we have stability in the framework for how content is going to be distributed, and i others will grab it. >> at&t, directv, what do you think is happening in the media consolidation universe? >> very large transactions. like at&t and directv probably spurs further consideration of what happens with --. full suitet have the of products to compete, you can get to a place where a lot of the distribution landscape is in the hands of five or six companies in america. >> which would be a concern. wouldn't that be a problem? concern -- the concern over consolidation is pretty strong. tend to disagree with almost

anything senator al franken ever says? >> really, why? >> but i think the idea of a terrestrial cable company having 60% of market share of search scriber's -- of subscribers in share ish the largest a problem. >> we are probably the last generation to have cable. >> you keep saying that, that i don't think that's true. >> you don't even have netflix, but normal people do. -- but people living in atlanta. >> television is what sells cars. people watching on their pc or their ipad, someone is making

it. the cornerstone. >> content makers still have a role, especially big content makers, because they have the ability to make fun, big are projects. but the fact is that the people i know under 30 are consuming more often on ipads and laptops them they are on regular -- >> but ask yourself the question. what are they watching? they are watching shows that could not exist unless they were made for the big screen. they are made for the big screen there, they make money and then they become available on other devices. >> so there is a place for less moonves for sure, but for

time warner cable? >> time warner. they have cnn and headline news. do you think something is going to happen here? noise abouta lot of headline news becoming part of transactions with other developing assets. it has been rumored for some wants to time warner do something with these assets. >> if we lose another plane, right?come worth more, what else do they cover? awful lot ofan playing coverage. that's for sure. >> i listen to cnn on satellite radio and every time i listen to -- listen to it, it's about a plane that went missing in malaysia. >> you should listen to bloomberg. john, think you for joining us. now we have to step in with a bit of breaking news on

barclays. it seems that yesterday, tradingn's electronic platform disabled access from their platform to barclays ls. now we have officially broken this. interesting.is you have counter parties, now that the suit is out there, saying wait a minute. maybe we didn't have all the information. the fact that our glaze has at least one counterparties saying, barclays has at least one counterparties saying, does thishat, what mean? this headline comes across about our glaze and bernstein. what does this mean for the larger business quest -- about barclays and bernstein. what does this mean for the

larger business question? fact is, there are customers leaving barclays. use theirt want to service anymore because of this case. as we all know, you are innocent until proven guilty in this country, even if all the firms notre going after are from this country. >> if you listen to bank analysts, they say this is not going to affect their bottom line or customer business. guess what? this headline says this is affecting customer business. when you have a firm like bernstein saying we are going to shut this down, it means something. >> absolutely. and you should always watch

these stephanie ruhle show to find this stuff out before the headlines come out. >> market makers. market makers. >> you should get a car powered by hydrogen. it's only $75,000 and it's kind of like a camry. >> plus, shares are flying. this is market makers on bloomberg tv and you know we are digital. interviewsries and at bloomberg.com/tv and on bloomberg was on your tablet and , where?g >> most importantly, on cable. you can watch us on tv. my mom does. >> love that lady. >> who doesn't? ♪

>> go pro is soaring in the first 30 minutes of trading with

shares up as much as 37%. they have plateaued at 30, but are the financials behind the flying justa maker as high? jon erlichman joins us with insight from los angeles. >> i think when a stock climbs on its first day of trading, there are a couple of stories you can talk about. the one in front of you, and the one we are all looking toward. when they announced the plans to itcover it does go public, is a profitable company that doubled revenue, up 87%. they have a brand that everybody knows now. it started with the cool kids flapping these devices on whatever it was, their surfboards, skis, maybe a matt miller motorcycle, and now they are finding more practical uses.

whether it is in news, filmmaking, or the police department or fire department. that was the story in front of us. going ahead, they very clearly position themselves to get a little more dough as a mediacountry -- a company. they basically said everyone is taking selfie videos and then -- that has made us the next generation of video. >> they have a video sharing platform and everyone sees the go pro logo before or a youtube video you are about to watch. >> are they a device or a brand? they are going to argue they are a brand, and they have been able to cut deals with others based on that. these deals will show up on xbox , virgin america and youtube.

they are arguing that longer-term that is where they can make money. that's generally true. but the margins have been good for them so far, and a lot of people see this as a growing category. why are you seeing people make phones you can throw in the water? aboute they are concerned losing business to devices people can take in the water with them. i don't know that we are at a point where people are comfortable taking smartphones out with their slurve boards. dutch with their surfboards. -- with theirelf surfboards. >> i throw my phone in the water all the time. it never survives. did you have a next or donut this morning? your doctor may call you to discuss.

♪

>> we are approaching 26 past the hour, so it is time for bloombergs on the markets. beyond fell the most in six months after missing product -- profit estimates. >> do you go there anymore? >> no, i shop online. >> every once in a while i go, but every other person in line has that 20% off coupon but me. >> don't you just grab one from someone in line? >> i need to do that. we are going to take a quick break. >> coming up, toyota's new green

card doesn't need a power outlet to get recharged. it runs on hydrogen. >> we are going to talk to one of the greatest analysts on automotive and see some german fans gearing up for world war three at noon. ♪

>> live from bloomberg headquarters in new york. is market makers with erik schatzker and stephanie ruhle. >> welcome back. we are going to talk cars. go when suddenly, there was a mary barra interview this coincidentally, there was a mary barra interview this morning with matt lauer. clearly, people within this company new at separate times and in different locations that there was a problem with these ignitions. and yet, the company was slow to deal with it.

is that because there was a cover-up? >> i don't think there was a cover-up. i think people had bits and pieces of information but did not come forward with a sense of urgency. here to talk with us is the lead auto analyst for morgan stanley. i read your notes every night and every morning like a stalker. their are more recalls today. the cruise, coincidently, the new cobalt, but there are serious issues. fromstopped dealers selling them. >> gm is trying to make the most of a good crisis. you have a new management team. they are trying to take every addressity not just to

the safety, but to make the cars more durable long-term. >> they are taking a kitchen sink approach. >> kitchen sink might be a little harsh. if you put yourself in mary , and everyition e-mail is now being read by the feds, you have to go 150%. >> how do you rate her performance? it seemed to me that she was very coached and lawyered up in the first hearing and now she has a net hell of a lot of confidence and is really running the show with a strong hand. >> when i watched the first hearing, some of it is cringe worthy. it is difficult to watch. but if i am her counsel, i am

thinking, you go, mary. from a nailing it fiduciary responsibility perspective. >> let's talk about detroit from a broader perspective. to talk aboutng the dealership issues, because tesla has challenged that model, the laws inodel and every state about that. you put out a note this morning saying car companies are being held back by old-school dealership laws. times are changing. tesla has been given a special disposition or loophole. they are allowed to own their own stores. you are able to control the process and set the culture, and it is harder for any other auto company to do that because they are prohibited i law.

we think the franchise model -- these laws don't exist in europe. 80%-90% of franchises -- of models are sold through franchises. >> alan mulally isn't in the job of selling cars direct to consumers. he doesn't want for doing that. ford doing that. but i don't see why you would stop a company from doing that. >> but they can pick and choose to keep dealers honest. if the rules got rid of the lowest common denominator, the , you could significantly improve the experience. >> let's talk about tesla as far as its challengers. a lot of people are talking about hydrogen cars lately. alan mulally mentioned it in his farewell interview from ford.

hyundai has a model out. it a threat to tesla? >> these companies are long-term thinkers. they think in 30-40 year horizons. hydrogen will be an important part of that. puzzledre a little bit by this chorus of sudden support for hydrogen. the message we were getting was, we think the timing is a little suspicious. we think the managers are trying a diversionary tactic to try to slow tesla down. >> and also to make an excuse for their failure to make a real tesla challenger. >> we don't think it is a co-incidents, the push for hydrogen and the lack of

emphasis on ev. this is elon musk saying what is our competitors excuse? >> he called fuel cells fool hydrogen fueled cells a load of rubbish. there are some competitors, i have noticed lately, that the bmw i-80 is getting great reviews. elonnot 100% electric, but musk has been talking with people from tesla. there are some competitors that are making headway. elon seriouslyk expects a flood of competitors to use their ip against them. is not that they make great ev's. it's that they make great cars. we expect this could be something that could challenge

and bmws.d high >> i was blown away when i drove the model s. >> and that is probably the worst car they are ever going to make. the x and the jen three should blow that away. is 11.5. does that make sense to you? growthmpany a tesla's bege probably would not publicly traded. imagine it is run by elon musk children. this is probably the most important company for cars in the world. a disruptiveave point in the market, but they support a 300 $20 valuation. >> thank you so much for your time. adam jonas from morgan stanley.

up, big brother in health care? ♪

>> welcome back to "market makers." i am stephanie ruhle with matt miller. you may soon get a call from your doctor over your shopping habits. some hospitals are using consumer data to identify those most likely to get sick. let's bring in our health reporter. shannon, this sounds creepy. doesn't even sound believable because when i have health issues, i can't even get my doctor to call me back. >> well, that is changing because under obamacare they really want to keep you healthy now because now they don't get paid for how many test or services they do, they get paid by keeping you healthy. that is part of the reason they are so interested in consumer

data. what they are looking at are the things that amazon and target and big retailers have been looking at for years to monitor you. credit card transactions, things you buy with a store loyalty card, what kind of vehicle yuan, did you pay for a house? plugging intonow these algorithms and using them to protect who is likely to get sick, who is at risk of showing up at the emergency room, and then getting to you first. that i have aay huge problem with the kind of big brother approach and people watching and it's none of their business, but i would personally give up that kind of data to my doctor at the drop of a hat because i want to be healthy. -- although am not i am not going to stop riding motorcycles. >> then you don't actually want to be healthy because that's the

definition just so you know. a doctor has a patient that enjoys motorcycle racing, the next time they see you, they might say i just want to make sure you wear a helmet whenever you ride your bike. >> walk me through, how is a doctor going to get compensated for making preventative calls. doctors and hospitals want to becauseu healthy they get penalized if people show up at emergency rooms too often, if they are not managing blood pressure. they get analyzed by medicare which pays for everyone over 65 and is the main payer at a hospital. if you're coming back with your blood sugar out of control, your blood pressure out of control, if you are showing up at the emergency room, that is costing

hospitals money. thisan say i know that person is diabetic and i see that they buy doughnuts every morning. >> it is totally freaky, but the information is out there and being collected already. it is being used for marketing rather than health care. >> i should also say that this is in the very early stages. >> i would hope so. >> if you have not been getting a call about the four martinis you had last night. >> i don't want my doctor to know what i am buying, what i am eating. >> you would not want your personal gp to know that? i wouldn't want anyone to know that but my doctor. >> i want my doctor to know if i am sharing that information. is an opt out mechanism that would address this exact

situation. matt once that information. stephanie doesn't. people tell their doctors everything. >> a lot of people lie about smoking. >> wait a minute. people don't smoke anymore. smoking in theut 1980's. >> matt miller. people still smoke. >> only when they are drunk. go to tobacco country. go to kentucky. >> it's the one vice he doesn't have so he doesn't get it. until, what,es matt? >> world war iii. >> u.s. versus germany in the world cup. ♪

>> look at this. it is being called the biggest

world cup viewing party in washington and it's being hosted by the german embassy. after tying portugal on sunday, usa plays germany today. things you should know about today's game? >> first, just know what the percentages are, what's going to happen. it's not who's playing. >> i want to point out that eric is a bloomberg television head of research. >> 68% chance of germany winning. only a 32% chance of the u.s. getting a tie or a win, but if they get it, they are into the next round. >> so you're saying there's a chance. >> dumb and dumber. >> so how do these scenarios

play out? >> it matters of what happens in this game and the other game, portugal and ghana. the u.s.al and ghana, moves ahead. >> the ideal situation would be both tie. is based on what happens in the other game. >> what if ghana beats portugal? >> then you start dealing with tiebreakers. how many goals did they score? did the u.s.s score? if they lose by a lot, they are in trouble. ghanaorchard gold beads question -- if portugal beats ghana? >> than they are in trouble. if you look at the value of dollars, the money you would have to play to transfer the players over in the international market, the german 10 times more valuable

than the american team. >> what is it due to the american team if they win? >> maybe nothing because the outcome of individual games is random. >> i think that's a very important point. in soccer especially, the outcome of individual games tends to be a bit random. is it more like american football, baseball, basketball. is moretball predictable because the score is usually around 100. soccer,ockey, baseball, they are around 0, 1, 2. predict.arder to that's why baseball has to play 160 two games to eventually figure out who is a good team. >> are you going to stop working at noon and watch the game? >> apparently everyone is going to do that, right? we have seen this in the

markets. when the u.s. played, trader markets were down 10%. >> shut it down. eric giving as the number on world cup. stay here. ♪

>> welcome back to "market makers." we are going to take you

straight to london. you remember rebekah brooks. she ran rupert murdoch's international newspapers. she was officially acquitted on hacking charges this week and she is now speaking to reporters for the first time. let's take a look. >> we haven't got much to add to what we said two years ago. i mean, of course the last few years have been tough for those those close to us, importantly, there have been people on all sides affected by the issues highlighted in this case. and therefore, throughout the investigation and throughout the tried to have always keep our troubles in perspective. after all, we have a happy and healthy daughter, we have our brave and resolute moms who have

been a court most of the time, and we have strong and unwavering support from all of our friends, our family, and from our legal team, which is believed in us from the beginning. i am innocent of the crimes that , and i feeld with vindicated by the unanimous verdict. >> what is your reaction? was arrested, it was in the middle of a maelstrom of controversy. i am grateful for the jury, .ery, very grateful to the jury >> what has been the extent of criminality exposed at the papers you work that? >> it has been a time of reflection for me. lessonsearned valuable

and i hope i am wiser for it. >> do you wish you had done more to expose the criminality? said, i am incredibly proud of the journalists i have worked with in my career and of the way we have fought. >> do you wish you had done more to expose the criminality? >> all i can say to you all is that today my thoughts are with my former colleagues and their families who face future trials. i will do everything i can to support them as i know how anxious the times ahead are. >> are you sad about what happened to andy emma rebecca? >> what i would like to say now to be careful about what i say for my former colleagues. with them.ghts are

>> how do you feel about what youened to andy golson? wax said this was a witch hunt. do you still believe it was a witchhunt? mean, clearly, the reporters are heated, fired up. remember, this has been going on for several years. she was clearly painted the villainous face of news corp.. now that she is acquitted, the media has to say oh, i guess it wasn't her own fault. i think it's funny because she is getting a taste of her own medicine. she was running the scandalous tabloids that lived for characters like rebekah brooks and now she is the character. it is kind of karma. >> what does this do to her reputation? she is acquitted. she did have a close relationship with rupert murdoch. to her future do

in media? i mean obviously, right now she is saying she and her husband are going home and closing the blinds. some appreciate privacy in these difficult times. >> privacy. >> privacy. >> well, we are not asking for privacy. we are thanking you for watching today. you for joining me. >> it's been a pleasure. i am sure no one will ever let it happen again. >> that's not true. who doesn't love a craft project? matt love scrapbook think. we are going to talk about michael's going public tomorrow. for now, time for money clip with adam johnson.

. >> welcome to "money clip." rundown, and ipo gopro goes pro. the company that changed your perspective on video soaring in his first in the stock market. now that aereo lusted supreme court battle, what is the future of internet and cable tv? tale of two googles. former bill clinton -- i should say former president bill clinton plays mr. fix-it for