>> live from bloomberg headquarters in new york, this is "market makers." paul ryan and his way forward, the republican party's rising star sits down to talk about his new book and his political future. at targets are down and source sales. the discount retailer cut its forecast for the full year. >> somebody could make a fortune by coming up with a viagra for under sexed roosters.

welcome to "market makers." mom and dad are away and the kids are here for the show. fornything goes, we are in erik schatzker and stephanie ruhle. we just saw paul ryan come by. there is a big interview and we are excited. i will take full credit for bringing him here. >> you totally should. we will have great analysis from phil mattingly after the interview. it's time for the news feed. the argentina president has come up with a way to bypass the u.s. court ruling on bond payments. the government wants to let overseas debtholders swap their byds for one governed argentine law. they will get interest payments through the argentina central bank instead of in new york. a u.s. judge barred american banks from processing debt payments i was argentina reaches a deal with creditors. shares of apple are little changed after hitting an all-time high.

investors are optimistic about it the products and estimate that a larger screen iphone due out this fall will set sales records. there is a new owner for the bankrupt cupcakes chain crumbs. 6.5ne has challenged the million dollar bid and the closed all 48 stores in 10 states and new owner plans to expand. turnaround is still hurting with the company cut its forecast for the year as slumping sales in the money-losing push into canada hurt profits. it's up to the new ceo to jumpstart the company. we have all the details. i think of that south park episode " blame canada." in all seriousness, were there other issues? >> we know that target is still paying for the massive data breach but canada is a huge problem for them. ever since it expanded apart last year, it opened about 130 stores, the company has lost

more than $1 billion in canadian customers went from being excited about target after crossing the border to shop there in the u.s. but target opened in canada and we start hearing immediately that prices are too high and the customer service is terrible and the shelves are empty. shellsgoogle empty target, you will see social media pictures from customers that spread like wildfire. customers are turned off in canada and the company is losing big time up there. >> is there a sense of what the company can do to try to fix this? >> they have laid out a plan and some analysts say the first up to recovery is admitting you have a problem. they admitted they have a problem and will try to work on and improve supply chain management and rollout a bunch of new merchandise and hopefully that will attract shoppers. they're introducing an aggressive price matching program. can come intomers and show an app or something online that says amazon is charging this much for this product or walmart and target

says it will match those prices. whether thatext -- gets customers in the store is one question but can i make money if they are matching these low prices? >> the stock is actually up today. our investors really taking this in stride? >> the management shakeup may be helping target after all. the data breach costs were not as high as people thought but those are unknown. people are looking at target -- if you read about the walmart expansion into canada, it took them a long time. they are doing well now but it took them years to win over canadian shoppers. i talked to a professor in canada yesterday, a marketing professor who said you americans will not like this but american companies need to be patient when you come to canada to win over the canadian shoppers and prove your brand can survive here, prove it's better than everything we already have. scandalhad a hacking

but customers were still shopping there for the most part. thank you for the update. >> investors are raising a pint to heineken, the world's biggest proposed a profit in the first half that topped estimates. but the crisis in russia could mean major headwinds for heineken and his european rivals. i will bring in hans nichols. he is a guy who knows his beer may be better than anybody in the bloomberg universe. what is going on? have here is a barometer, a bellwether, of how slow growth is in russia. carlsberg is the biggest brewer in russia. they get about 1/3 of their profits there. they issued a profit warning earlier this year and they pulled back even further today. you look at the organic beer sales in russia, it's down 13%. we have a tale of two brewers -- carlsberg overreliance on russia and heineken which is also the fourth biggest brewer globally,

i think forth in russia as well, but they are also seeing some strength because they have been well diversified and have had a good summer here. the world cup was a big hit and it is certain, later this year. outside.ing if you are a beer brewer, you want a late easter and that's my take away from these two earnings reports. >> easter as a drinking holiday, this is new. you mentioned carlsberg's emphasis on russia but the regulatory and tax environment there does not look like it will get any easier anytime soon. why are they comfortable staying at their size in that country? >> well, there are clear hints that the ceo gave that they will right size their production facilities inside russia. mentioned the taxes and the regulatory aspects, the heineken ceo says yes, some of this is

geopolitical headwinds but also its shifting consumer tastes and about these new taxes and regulations on beer inside russia. the other discouraging point for carlsberg is they also lost market share. this cannot entirely be explained by the fact that there are sanctions and the ruble has weakened. they also lost market share and that has to be a concern for them. problem and still a we see consolidation the beer industry in the u.s. how much will that spread over two names like carlsberg? there is a big scandal in germany maybe two months ago that the margins are so tight on beer with big brewers, it's hard to hit a profit. what you had in germany is a bit of a cartel. basic ingredients of beer are pretty easy. yeast do theet the work and ferment it but other than that, you're basically looking at a pretty simple

process that can be scaled. whenever you can scale, you have tight margins. >> hans nichols, the only man to talk to you when it comes to fermentation. thanks very much. >> craft beer is very expensive. coming up next, paul ryan is out with a new book and he is here to talk to us about it. >> remember the barnes & noble note? samsung is building a special version of it which has many of us asking why? ♪

>> congressman paul ryan is one of the most powerful members of the republican party, known for his run as vice president in 2012 and his plan in congress to slash spending on social welfare programs. but he has also turned to fighting poverty into.

one of his signature issues is one of the topics he addresses in his new book," the way forward. oh congressman ryan is here for an interview with johnheilman and mark halperin >> thank you, joining us now is the republican chairman of the house budget committee, the former vice presidential candidate in the pride of janesville, wisconsin, congressman paul ryan. thank you for coming in. >> thank you for having me. >> we think of you as a likable guy. we want you to be likable. i warned you during the break so tell us something about you that ordinary people would find super likable. >> i just walked in the door at soda and and i had a security guard knocked it out of my hands with the taser. >> you say the book is not a full memoir but there is a lot in there. i want you to talk about something in the book you write aboutfor the first time

your father in his relationship to alcohol. >> it's something i have never really discussed before. i talked with my mom and siblings about and a lot of families go through this. the point of bringing this up is it was a significant part of my childhood. many families have members of their families who are addicted to alcohol. i think people need to be cognizant of those things which is know your family history and respond accordingly and families can bounce back from these things. that's the good end of the story which as you can have these kind of problems in your life and family and you can get back on your feet again and you can respond well. if you have family history, know about it. >> i want to kick off the policy talk with one topic -- social security. you are an economic sky and the book has prescriptions and it makes it clear you're not running for president and you don't really that would you want to put ideas on the table. what is social security? you say quite clearly in the book that something in your want to pare back

the growth and future benefits to save the program. i want you to say that clearly, that part of what your plan is is to cut the guaranteed minimum benefit for some. >> for higher income individuals. think the progressive price index is of smartest way to go. bob posen was a democrat on the earlier commission to blend the wage and price increase. i think the retirement age should reflect long devotee overtime. according to social security longevity table, it goes up one month every two years. 2030.ches 70 years in it means testing the benefit and reflecting longevity in the retirement age and that would take you very far in the way toward bringing solvency to social security. >> you are talking about the guaranteed minimum benefit not for current retirees but phased in over time. >> that's right. >> what kind of income level? >> i don't know off the top of

my head because i would have to look at that tables for 55 and below. >> you are a numbers guy. 3 of incomeer1/= would have their benefits protected by price inflation but not wage inflation. their purchasing power would not be affected. >> it's great to have you here. despite the taser, we are glad to have you here. what about presidential aspirations? book that a lot of people traditionally right before they decide to run to for president. if that's not the reason why you wrote the book, what is the reason you wrote the book? >> it really isn't. i don't know what i'm going to do on that. the reason i wrote the book is i'm very critical of the current administration and the path we are on as a country but that's not enough. if you are a conservative, you

believe we are going in the wrong direction and i is an elected leader should show what i would do differently. the point of this book is to show a different way forward to reignite the american idea of the mobility and economic growth and how we should do things differently. i spell out what i call full-spectrum conservatism which is inclusive and aspirational and optimistic just like my mentor, jack kemp taught me. as house leaders, we should show the country different way forward and give voters and the people of this country a meaningful choice so they can choose what kind of country they want to have in the future. >> there are a lot of ideas in this book. you are supercritical of oh tom obamathe -- of president and the liberals. talk about some ideas in this book that fly in the face of conservative orthodoxy? having a problem with immigration reform. i talk at great length about what i think immigration reform should look like. it's important we reform the

immigration laws for national security and for our economy like would a be boomers retiring. i talk about upward mobility in a better strategy for fighting poverty. exhaustive plans and how to rethink our approach to fighting poverty and producing upper mobility and the talk about our party needs to reform to be more inclusive be working at at it with nontraditional voters which i think is essential going forward. >> what you think the bulk of the parties not where you are? toas leaders, i would like think we could bring the party to these areas. i would rather be a leader and leader says this is what we ought to be doing different than what we are doing now. if everything was great, we would have won the last presidential election. everything is not great. some problem'sx and we need to be clear about the problems we have in our party so that we can fix these things and give people an honest idea of what we think we should do.

i think what this spells out is a vision that a majority of americans no matter their background, no matter who they are were they come from can support. that is the kind of election we should have and that is the sort of thing i am pushing. it's an agenda of solutions to get us back on the right track. >> on immigration, there are two groups of people who are here illegally, children brought here and you have one set of ideas but what you lay out in the book and what should be done with the 12 million or so -- your running for self romney was deportation. he wanted them to leave but you don't want them to leave. you want to give them a path to legalization and maybe citizenship overtime. >> they can earn it but they have to get to the back of the line so you preference the legal immigrant. >> you have every caveat to -- you want the borders secure first. you are stepping it different from many people in your party

and saying those 12 million people, if they do a series of things, can stay here legally forever, correct? >> yes, they can always get a work permit that is reid nude -- that is renewed indefinitely. >> would you like to see republicans run that in this election cycle? >> i put it in the book. i have been saying that for a number of years. >> you would urge the candidates in your party, everyone to be for a policy that says those 12 million people, if they do a series of things, can stay here? >> i would not have put it in my book, this is a way to put people on probation so they earn their ability to stay in this country legally so that they get right with the law and come out of the shadows and earn a good place to do this. i think it would get as good reforms like welfare reforms and it would also leverage the border security we need and the interior and forth between a. it is not trust but verify. we've got greg problem's in this

country. -- we've got big problems in this country so we will not solve them by doing this the same way. here are solutions to some of the intractable problems in this politically paralyzed environment. that's what leaders should do and yes, sometimes when you put no ideas out there that are controversial, you never get anything done if you cannot do that. that is the story of my life. >> you trade budget chair for ways and means chair? >> i want to be respectful. >> let's talk about tax reform. you talk about lowering the marginal rates for everybody. you are a big economics guy. you need some offsets and you talk about loopholes. to the two happen big deductions -- home mortgage and charitable the doctrines? wecharitable deductions should not have a cap on because that is what seeds civil society which is an important part of american life.

mortgage, dave camp put out a bold plan and he was smart how you did it because it should be a middle-class tax break, not something for higher income earners. the way dave camp did it was intelligent. >> you would be for scaling it back? off upays you can write to a half $1 million of home mortgage. in wisconsin, you could have two homes. half a million dollars in new mortgages, not existing mortgages or refinancing. i thought that made a lot of sense because it is middle-class people. that's a half a million dollar mortgage, not a half-million dollar home. >> there is a lot of stuff in this book that addresses the problem of disadvantage. i want to ask you about ferguson. want to said you don't talk about imposing your policies in that context because it is disrespectful. response on the

republican side, there has been a lot of discussion in the last week or so about the militarization of police in america that they have gotten a lot of hammy -- heavy armor to local authorities. what you think about that issue? how would gone too far? >> we should look at it but there are also other issues within that that make sense. for instance, lake michigan -- powershares department had been able to get access coast guard equipment after the coast guard was done using it to do search-and-rescue in lake michigan. is that a problem? when you dig into an issue, there are other issues that come into it which i don't think fall into that category's you don't want to overreact on an issue and have collateral damage to a policy that is not a problem. guard surplus boats going to the sheriff department to help rescue people stuck in our great lakes. >> the notion of towns that are 30,000 people having heavy armor -- >> i think -- i don't know the

answer to that question. i think i need to learn more instead of knee jerking. i don't think i'll a seat makers should take knee-jerk reactions. my answer to people earlier about my policy preferences with respect to ferguson is let's respect the brown family and the community and not at our policy preferences to this tragedy. that is not what policymakers should do. we should let law enforcement do their jobs and find the facts and get the truth and see justice served and not try to inject their own agendas into these issues. >> what informs your poverty agenda is the notion that you spend a lot of time traveling to inner-city america. what have you learned in that process? >> i have learned that there are amazing people in this country overcoming their difficult circumstances and we should learn from them. the problem with the federal approach the war on poverty is it inadvertently has given the impression an america that this is the government's responsibility. pay your taxes, we the

government will fix this. that's not true. we need people to get involved not necessarily with their money but their time or talent or love in their communities. i think we need a new approach to fighting poverty which stops the isolation of the poor from our communities. that is happening today. it reintegrate people into the community and supports -- in the book, talk about the heroic people who are overcoming circumstances in their communities and doing a phenomenal job. we should get behind them and support them in the federal government has an important role to play but it should not play the suffocating role. let's make sure that our efforts and we measure success based on outcomes and results. are we getting people out of poverty in some -- instead of treating the symptoms? >> let's talk a little politics. people know you used to be a political strategist. let me ask you about other possibilities. why do people talk about governor romney as a potential

nominee? >> i think there is purchasers remorse. i think people realize that a lot of the things he said in the campaign, the projections he made with respect to russia and iraq and others, were true. mania. me up for themitt >> i would drive his bus if he asked me. >> are you friends with rand paul? >> yes. >> why are people looking to as an attractive candidate? >> what's exciting to me about him and these other people is you haven't its electoral format on our side of the aisle. i think the left is intellectually exhausted and their campaign tactics are to draw characters of us and attack. the egg he is being generated are on our side of the island rand paul is bringing a segment of people to the republican party and that's nothing but good. >> anybody out there who is not being talked about as much to you think would be a strong candidate?

>> i don't know the answer to that. i don't know of john kasich is thinking of running. i think there are number of people that might get into it after 2014 settles. >> one more policy question -- the situation in iraq and syria -- if president obama asks you if he is doing too much or too little or the right amount, what would you say? >> i would want to consult with the intelligence community more. i believe more of a robust air campaign is called for. >> what kind of additional targets? >> in syria, there's more we should be doing to the opposition. -- for the opposition. it has been harder to separate the good guys from the bad guys but more can be done in syria and the administration made some fundamental mistakes there. on the iraqi side, logistics is a problem. getting the iraqi government and army to work together and the different groups, i think we can do more logistically to help them have their act together. that was part of the problem of

not having a tacit forces agreement which disintegrated and fell apart. going forward, think there's more to do to help their army work more seamlessly together. the lesson we should learn is we should apply to afghanistan. we don't want to repeat those same mistakes we made in iraq in afghanistan. write a fairk, you amount about your time on the in cleard you express terms that you are pretty frustrated with the way the romney campaign ran against president obama as a referendum campaign. you had a different idea. talk about your frustration and the ways in which you are frustrated with your ideas not being a bigger part of the campaign? >> you cannot come into a campaign and say do it my way.

way is to run a referendum against an unpopular incumbent with bad fundamentals like the economy. i personal story, my instincts and belief is to make good choices and find yourself with your ideas and give the country a big choice. mitt and i talked about that in the past. they heard me out and heard my opinion and they were very respectful. i think we close the campaign the right way but there are also structural disadvantages which mark knows a lot about. that really put us in a bad situation. we cannot get the general election money early and 23 debates and came limping out of the primary and on till august could mitt put together a general election campaign. states, we were ambushed by the obama campaign. going forward, what is critical

is that we give the country a very clear choice. we don't like the country direction is going and we don't like these policies, here's what we believe. here is what we would do differently. let the country decide. that is the kind of election we need to have so when you win, you have a mandate and the moral authority to fix these problem's before they get out of our control. that's the kind of elections americans deserve and that's the kind of election we will need if we are going to fix the big problems in our country. >> what did you find most enjoyable in those 88 days of campaigning? >> most enjoyable was seeing the country through my family size and the people you meet. the infectious enthusiasm you get from people who care about their country, that's what i like the most. the least enjoyable, there really isn't -- nothing comes to mind that i can think of other than the fact that you live in a bubble. having a security detail, i love the secret service and they are good friends of mine but i can you can live in a bubble

in office. when i would go to a restaurant, secret service would shut down the traffic and they would warn people coming in the restaurant about looking in their purses. i felt like i was being evasive from private citizens and we stopped going to restaurants and eight in hotels. the security bubble and stopping traffic and imposing these things on people in their daily lives and disrupting their life is what i did not like the most. >> one more serious thing in the book -- you revise something in the book that you got criticism for in the campaign which is simpson balls. a lot of business people were high on simpson bowls. you criticized obama for not embracing the plan but you yourself had voted against it. how do you square the night of saying the president failed to show more leadership by supporting it but you yourself opposed it? >> i put out an alternative.

i took the ideas i like from it and put them in the house budget and passed it and added health care reform which is my biggest criticism of simpson bowles. they do not address health care. i put health care reform and medicare and kate in my budget -- and medicaid in my budget and passed it. bowles had a metric you had to achieve and i exceeded that metric and obama never has. you can dance the way it dance in african-american districts in your district all your alternative is to tell us how you used to upsell people at -- at tortilla coast. is one of theles best jobs i ever had in the top me about life and how to connect it with people. tas on a hot faiji

plate, you can up the bill if you upsell them so we pushed the sunset sauce and anything with trip on it. >> show us how you did it. . >> would you care for sunset sauce with them? >> what's in that? queso. chili con >> how much was it? >> i think $1.50. it would add zest to your fajitas. >> how does that apply to politics? >> i will have to give that some thought. >> you are books now and your publisher is in a war with amazon. you're not an expert on those issues but what do you think about the market for books these days and amazon's role? >> as a policymaker maker, i will take a pass on that. ethically, i have a book being published by a firm that is in a dispute with amazon so i think ethically, it's not something i

should comment on. >> do you buy books on amazon? >> i do. >> what else? >> i go to many different sites. >> what do you buy on amazon? >> just that. >> where do you get your hunting gear? are two good stores in janesville, wisconsin. for those things, i like to buy it myself. i go to hunt and gear for my archery products and gain or mountain for fishing and i go to farmers fleet for clothing and ammo. >> there's a lot of products. you are obviously a real american. >> thank you for joining us and good luck on the book and you will be with governor romney? >> tomorrow at the union league in chicago. forward" by congressman ride. thank you. >> thank you. congressman paul ryan. bloomberg politics. we are substandard, that was a good interview. >> i have to agree.

i have to fill my life came from tenures of waitressing. in your expertise, what stood out to you? off, mark and john's ability to get in the weeds on policy when it comes to immigration and social security and tax reform a little bit. i think that shows the willingness of the congress meant to address these issues. these are controversial issues on the hill and difficult to get lawmakers to get substantive on. that was one thing that stood out but the broader theme is one that we are all trying to figure out the direction of what reform conservatism will look like. mentioned rand paul and congressman ryan and the book lays out in detail his views on these type of things. republicans,o their ability to reach out to a voting lock that has not traditionally come with them, minorities, poor people and things of that nature, it's crucial if they ever want to win a national election to get paul ryan's point in that interview.

there is not a lot of people and the republican conference that her with him on that. can he get them to go with the hem. im? >> how could republicans listed him -- listen to him? >> the congressman's position is not new. he has always been for broader immigration reform. to stay ine pathway the country and the pathway to citizenship are kind of dog whistles for a lot of conservative radio hosts and a lot of conservative activists. this was not a shift from paul ryan today that we heard. . he was willing to talk about it openly. that's a dangerous game to play in the republican party. it has set republicans back before. while this has always been his position, he has not and somebody willing to come out and bang the drum for immigration reform like others. this was a shift on that front. >> how was this not an election

campaign piece today? >> a romantic, i don't know. -- oh man, i don't know. >> he supports mitt romney and would potentially go for him again and he supports rand paul and he did not know if he was running or not. i don't know how this was not a campaign stop. you're not writing a book like that if you're not consider it right. many people would like to see paul ryan and that primary process. hill, he's got big policy power. if he wants to make changes, may be staying as house ways and means committee chairman is the best pathway particularly if you get a republican senate. there are a lot of things to weigh. if you're not actively considering this -- >> there is a midterm. i'm so glad you're here to break

this down. we will be back because coming up, fighting a losing all and we will look at why samsung is building its own version of the nook. >> while you may end up paying more for chicken, blame a flock of under sexed roosters. >> best story ever. ♪

>> live from bloomberg headquarters in new york, this is "market makers." >> welcome back, i am alix steel on this wednesday, happy hump day. >> i am phil mattingly. barnes & noble has just unveiled its samsung galaxy tab 4 nook. is at the event in

downtown new york city. tell me what is going on? thing, it is a flailing tablet business. the last quarter, nook sales fell 22%. they were down 35% over the last year. the company has its own issues being that it's a brick-and-mortar bookseller, had to do something about it. it decided to get rid of this off,t business, spin it but stop trying to compete with the big guys like apple and samsung on hardware. they have created a partnership with samsung who creates the hardware necessary. the samsung galaxy tab 4 already exists and samsung can worry about the latest camera or the latest gadgets and barnes & noble just focuses on the content experience. thattially, the apps

allow you to read and choose different books and titles and different magazines -- they still sell their old version of the black-and-white nook. will be their newest entrants into the tablet market. it is really focused especially on reading. rolloutme about their plan. they put out a video couple of days ago that has a bunch of kids looking at it and being thrilled by what it looked like. they also have grumpy cat in there. clearly, they need people to give it another shot. how are they going about trying to make that happen? patterson, thees billionaire author, was also featured in that rollout. one thing they hope differentiates them from other tablet sellers is that they have this giant brick-and-mortar bookstore experience. you can take your samsung galaxy which is more than a

mouthful -- they need to shorten the name -- and you can walk around the bookstore and see a title you like and you can click on it and buy it on your tablet. there is free wi-fi here at barnes & noble and many people hang out here to read and don't pay for stuff. that's why this could be a good answer to that. the fact that they don't have to worry about the tablet sales as much is a great thing. samsung has to worry about tablet sales. the tablet market growth has been slowing substantially. tablet sales are crashing over at best buy. saidorning ceo recently growth is not nearly what they expected. they provide all of the glass for tablets regardless of which maker. lookingakers are really for places to find growth. hasung -- barnes & noble

agreed to buy one million of them in the first year and possibly in the first 15 months of sales don't go well. >> matt miller, thank you. >> the political crisis from ukraine to iraq has failed to put it down to an emerging-market bond sales. issuers are selling bonds at unprecedented phases as investors shift their focus to asia and latin america. we have more details. is this new money coming into the market or reallocation? >> it's both. as a hundred billion dollars of sales so far this year from emerging markets, nations and the companies there. this is the most ever. there has to be new money coming in and part of the money is coming from investors in high-yield bonds and other riskier assets in dollar-denominated spaces that are saying we are not getting compensated for the risk in hard dollar currency, domestic debt,

we have to go elsewhere. . >> what are the most popular countries and what is the risk premium? >> the risk premium is fairly narrow relative to historical perspective, 1.4%. still a significant premium. in this world of low yields, that is something. they're going to the asia-pacific region. they are not going to russia. russian bond sales have fallen more than 50% so far this year. other areas are picking up like mexico and china. >> it's noticeable that people are living russian other people are taking advantage of it. >> yes, some people are taking advantage of it. there has been a flight away from the most troubled regions. it has not dented demand overall for emerging-market debt. there is not a concern about contagion in areas like mexico

or latin america. you think people would be fleeing from latin america but they are not. they are coming back in. wouldwhat price point russian debt become attractive again? is a search for yield or trying to find risk and safety of the same time? in but investors go back there are sanctions to prevent people from buying debt. it's a little bit different. it is political on a much different level. i was reading a morgan stanley report from this week talking about how the turmoil has not pushed people away from emerging markets that the money going out of russia is benefiting areas like mexico and malaysia where people are putting more money into those countries. people are still searching for yield. they are looking for it anyway they can. we still live in a world of debt and there is a lot of stimulus to be had. >> how volatile or fickle is this money?

we talk about junk bonds and the inflows and out close and -- and outflows. >> this is money that would be most vulnerable to another taper tantrum event. last year, the debt lost more than nine percent in a month or two. this is potentially very viable. that said, people are getting much more complacent that rates will not rise so much in the near term. whether that is the case or not, we will see. >> thank you very much. obesity and tale of compatibility and infertility. the poultryng about business. we will be right back. ♪

>> it's a cold night at hand houses across the country thanks fat andetic tweak - infertile roosters have lost their interest in mating and

that means higher chicken prices for all of us. joe sanderson is the ceo of sanderson farms. he has been dealing with the effects of a low libido bird. will sawyer also joins us was a protein analyst in atlanta. effects ofling the this on the ground, what went wrong with these roosters? mailll, this particular aboute use represents 25-30% of all the males in the industry. he has a propensity to gain weight just like its progeny. if it's overfed just a little bit, it's unable to mate. it's too heavy. to mate. he really does not lose its libido. it cannot physically mate.

therefore, your fertility goes down and your hatch ability goes down and you end up with fewer baby checks. --chicks. >> the u.s. agriculture department reduced its u.s. chicken production forecast. how much of what is going on in the infertility issue is playing into the broader forecast? is this a minor let? --blip? >> it's mostly a minor blip. we have seen that fertility has declined about two percent in these roosters. when you spread that over the 25% of the rooster population that has been affected, it's only half a percentage of u.s. production. it's important but it's ablip in the end. >> how quickly can it rebound? if they get better wristers and a production picks up, how long does it take to get more supply online?

farms and the other companies that have been affected by this issue as well as the poultry genetics industry has responded quickly to this issue. it is already in place, this process of trying to expand u.s. chicken production. we think by 2015, there will be a fair amount more, around three percent more chicken in the united states to help alleviate the price and issues that consumers are feeling now. explain when you recognize a problem like this, how do you go about developing a new wrister? how does that process work? breeder thaty supplies us already had a new male they had developed and we had tested that male and the male over am that year ago and made a decision to

replace our current mail with the new mail several months ago and as a matter of fact, all of our company has the new male very young, not mature yet. it's on the ground. they will be in production by december, mature and in production by december and we will have baby chicks from that new male by spring. have the samewill feed conversion ratio, a better breast meat yield, and should have better hatch ability and less propensity to gain weight. it will still be a challenge to grow the bird and take care of the male but less propensity to gain weight than the current male we have and we have

responded and are breeder has responded to the problems we are having with the current male. >> in the meantime, what did it do to your business? how much did it hurt? >> we will answer that. we have a conference call next tuesday. we will release earnings next tuesday and we will address that specifically next tuesday. fairpoint, over all in the chicken industry, we are still seeing prices around record highs. a big part of that was because parking cattle prices were so expensive that we see a rotation in protein. at one point will we see demand destruction? >> i was just commenting that i think these and pork prices are going to remain high throughout 2014. in fact, usda expectations are for beef supplies to decline

again in 2015. we don't see a lot of relief coming from the beef and pork side of things. our expectation is the chicken prices will remain high and consumers will continue to trade down out of the more expensive beef and pork and into chicken. >> we have seen u.s. exports of poultry protected to reach about 3.4 million tons in 20 team, up 3.1 million from last year. will that continue? are there going to be disruptions going forward? >> a part of what you are seeing here is that the u.s. is the low-cost producer globally for poultry and companies like sanderson farms are very efficient producers, low-cost producers. one issue that will affect the back half of 2014 and into 2015 is russia. juste u.s. has beenbanned last week, it has been an issue. >> we have to leave it there but thank you so much.

"market makers" will be right back. ♪

>> live from bloomberg headquarters in new york, this is "market makers." the apple core asset, investors are not worried anymore whether they can come up with killer products. apple shares hit an all-time high. valley's open-door policy is pushing washington to reform immigration holocene let in more skilled workers. ceo's winning a campaign against genetically modified ingredients. we will ask about the potential impact. welcome to "market makers." eric and stephanie are not here.

i am phil mattingly and alix steel is letting me hang out with her on this awesome wednesday. time for the news feed. there may be a bidding war for shutterfly. that's according to people from a year with the matter. a private equity firm is among those made offers. bids are due this weekend the company may be valued at $2 billion. darfur -- may be in in store for junior employees of goldman sachs when they increase salaries next year by about [inaudible] it is a way for them to stop younger workers from leaving. one of the biggest volcanoes is rumbling to life and that has airlines on it is.

and a option another volcano in iceland four years ago forced airlines to cancel more than 100,000 flies. ibaka neck askin damaged jet engines. busynd lies along the north atlantic trade route. >> apple is back as far as stock prices. shares hit a new record yesterday two years after the stock swoon began in 2012 even though the company has not released in a blockbuster products since the ipad. what changed? why are investors pouring money into the stock right now? let's talk to the chief research and the senior research analyst for avondale. you just recently raise your 100 $10rget on apple to from $100. what changed? >> well, we are a market outperform on the stock now. we had upgraded the stock and got quite lucky. it is almost at the bottom of

the stock price. the financial engineering is behind us and we have a 110 dollar price target today. apple is being simplified and candidly, it's a matter of how they use their product to generate more usage versus android. >> financial engineering is behind this so is this just some carl icahn love? he said he believed apple to be one of his no-brainers. >> its excitement about what the world believes is going to come. cue's, that they never felt better about their product line -- if you have a pulse, you can figure out that the iphone is too small and there are bigger ones coming and they were talking about 4.7 inch and 5.5 inch.

there leave out the 5s, are 280 million units that can be upgraded. take out the iphone 5, you have wondered 85 million units to be installed and can be upgraded with the product we believe will be announced in september. really, this comes down to this massive excitement. i don't think the company is doing a whole lot different. it is just the mother of all companies. >> can we look at this as an endorsement of tim cook and the new leadership team? got a lot of blame for the downturn and now that is going back up, is this attributable to him? >> certainly. executives a gifted who walked into a very difficult situation. the question of whether apple can innovate in the long-term from my chair is still going to be open after this. these products should have been out a while ago. we should have seen larger iphones.

they have held or slightly grown or market share which means largely that they held off the onslaught of android throwing stuff against the wall over and over. with the newer products, the faithful will come back. they will come out and upgrade in droves. the question of long-term innovation, of a new breakthrough category, that remains open outside the phones. >> my point is that doesn't apple need more than awesome replacement cycles? for 10% earnings growth for the company but compare that to tripled digits the company saw two years ago. >> i agree. everything he just said is probably built into the valuation today. we have heard about innovation. tv has been something that was nations -- that was mentioned but it is a matter of usage, using the devices more as a multiple expander for apple. the service and software segment

of the business is probably 15% and growing building corporate average. that is very important particularly given the statistics that tim cook talks about on the conference call four times the usage of the android devices. they ipad was really dominant in its category. that's where you will see a that reoccurring revenue and multiple expansion apple needs to be a long-term core holding for most investors. >> that has been very well telegraphed what is coming in the fall and the weeks and months ahead. what kind of risk is there to the company of those new additions do not live up to the iwatch.there is no >> i think it's a matter of incremental improvements that to introduce.g what will you be using more of? how is this device which is --oming a necessary device

we like that if you don't charge too much. are they going to be able to improve some of those components , usage, and when we talk about new products, are they easing their way into tv? they will have new announcements of additional channels. i think they will continue quietly pushing that way. >> is it devices that of move the needle or is it the enterprise, getting into an entirely different market and relying on the upgrade cycle and relying on selling different assets to that? what do you think? >> the enterprise will be increasingly important for apple. i would argue they are already there. it is invisible and in plain sight. >> they don't really have the services to be able to maintain their customers, right? >> that's right but people have bought these things.

apple will make bold moves in things like mobile device management and mobile device management and will buy these assets to be in those places. they will expand their footprint in the enterprise but to the comments we have been making, it is the engagement model around ios and the iphone. it's important. what if apple's next prater product does not have a screen? what if it is simply sensors and things that can be embedded to increase your engagement and ability to do mobile payments and increase your ability to track the things that are important in your life? those are the things that apple is looking at in order to drive that engagement on ios. the other thing you don't want to miss is the actual good old school mac which continues to grow. in a world where tablets are compressed, look for a world where people look to things like a 5.5 inchk air and iphone as their goto solution.

thing to clarify one which is that apple is by no means a monopoly. android still has 79% of the share of smart phones. it is still very much a two horse race. apple is what you see in the mature market for the people who can afford it. >> we have talked about the financial engineering part of apple. price, howthe stock much does the buyback him how much the -- does the dividend play into the level we have had over the last 24 hours? >> the stock is effectively doubled. it's a little less than doubled. probably half of that move has been related to the dividend and the share repurchase and. market that is a tailwinds to the stock as well. but salsa remember that i think investors have realized is what these companies are becoming and they

realize this is becoming a productivity tool, not only the iphone but the ipad. probably less so the macbooks. those two products account for 72% of the company today. it's a matter of driving more usage of those products. how can we use them more? can we consume additional content? can we use them from a health perspective or a commerce perspective? that really drives valuation. >> really quick, what company does apple need to buy next? >> i think they might take a look at nuance to medications. >> what about you? >> yes, i think they could look at content and you may see them doing more content deals. >> no sexy new product, thank you so much. coming up, a new form of campaign, the former obama

campaign adviser is going touber. >> it's a little warm outside and it's time to talk ice cream with the ceo of ben and jerry's. this is "market makers," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. ♪

>> cities around the world have been fighting to keep uber out and now it is bringing in the big guns, new men to fight back.

the president obama thousand 12 campaign manager, david plot. he will be of a car sharing app senior vice president of policy and strategy overseeing all political activity and branding and communications. here he is an x was of interview yesterday explaining what he is leaving washington for silicon valley. >> travis and i have spent quite a bit of time talking. awas a customer of uber and strong believer in the company are of the same mind. he has built a great company with great people and the opportunity to be involved be a once in a generation experience. ultimately, this kind of progress and change, it's hard to stand in the way. there is a political fight and we will be prepared to make sure we are fighting for that transportation alternative. about hownk washington works and you think about how regulation laws and that type of stuff works, when you want to get something done,

you bring in somebody of his caliber. it is like a rite of passage for silicon valley firms. whoe got the guy reaches out to democrats and has impact. >> what is that meeting one of looking like with democrats? what happens in that meeting? you think offfe, him as a washington guy and you think of him as the brains behind one of the democratic parties most sweeping victories in terms of 2008, president obama, change can believe in. thats everything behind campaign. if you're a city councilman, if your state legislator and you're a hard-core democrats and david plouffe walks into your office and need you to think about what uber is talking about, how do you say no? that's my big question. as a junior democratic lawmaker

in some town or locality you say no to david ploufee.. >> how weird that uber is part of policy and -- is part of partisan politics. some of said this is an opportunity for republicans. why did that happen? >> david it is interesting. david plouffe is bipartisan. the republican national committee is raising money off of democratic opposition to uber. they love the ideology. washington will glob onto anything that they think will raise money or get headlines and that is what republicans have done here. to getthey trying 22-year-olds to vote for them? >> it does not hurt.

uber definitely is that. >> the fight for the control of the senate -- an interesting election out of alaska yesterday. is the tea party off of the board after we have seen these go down? the primaryvan won yesterday. he was the republican establishment pick, and in the club for growth, and other tea party candidates behind -- groups behind him. he was one of the few candidates that appeal to both. on the whole, if a republican establishment member laid out the candidates he or she wanted to run in every contested senate race, they got them. it is huge. the slate of candidates is everything they wanted. public in establishments are thrilled -- republican establishments are thrilled. >> there were three states that were likely to flip in the senate coming up, and more are

tossups. what are the chances republicans actually take the senate? netepublicans need three seats. you have three that are almost -- six net seats. you have three that are almost guaranteed. >> four are up for grabs. there are tossups. >> you have three locked in, and you have an expanding map. have a democratic president with low approval numbers. good candidate across the board. a lot of things could happen over the next two and a half to three months, but right now the republican campaign committee is very happy with where they are sitting. >> and they spend a lot of money to get to that position, where you have governor of texas, rick perry get some publicity for free, you can call it one of the best branding things he has done.

>> in the oddest of ways, who sees political opportunity in an indictment -- rick perry. he nailed it. you're looking at his mug shot. this is viewed nationally as a partisan witchhunt against rick perry. he was using his executive power, threatening to veto funds a a prosecutor's office after prosecutor was allegedly arrested for driving under the influence. this is great for rick perry. it sounds absurd, but it is great for rick perry because republicans, including potential competitors in the 2016 primary process have rallied around him, and not only did he go in for the booking, take the mugshots, grin, but he went for ice cream afterwards. >> mugshots plus ice cream leads to presidency in 2016?

>> that is the equation. >> democrats would have pounced on this. >> if you go into a national election with an indictment, that cannot be viewed as a positive thing, but internally in the republican party it is helped him a lot. >> talking about the presidential election, i want to show you this video of former president george bush that came out yesterday. it works i do not think it is -- >> i do not think it is presidential for me to be splashed with ice water, so i will simply write you a check. >> that check is from me. i do not want to ruin my hairstyle. >> so, wait, did you donate? i hope he donated. it appears former first lady laura bush will be doing the donating. one of the people that nominated george bush for the ice bucket challenge, rory mcilroy. funnier story, as i was coming

out of my hotel at 5:30 a.m., who was sitting in the elevator, rory mcilroy. he had golf clubs. didooted george bush -- who george bush challenge? -- bill clinton. i'm not sure you will see that. president obama has been challenge. >> get to dunking. >> i would do it if somebody challenged me. --coming up, jerry garcia how didd confused -- ben & jerry's come up with these silly names? we asked the ceo. ♪

>> it is 26 minutes past the hour. bloomberg tv is on the markets. z, fallinging out hert

after saying they would miss the full end of the forecast. there are a couple of things going on -- accounting review cost. additional costs on the one and. you also have recalls. it recalls they are not able to meet the demand they might see, but they see softer demand in equipment rental as well. sort of a trifecta. one analyst says people's confidence is shaken across the board. the other stock i am watching is lows -- this is a have or have not story. home depot reported yesterday, -- lows is cutting its fully full revenue forecast is a weaker than anticipated sales in , what are nots selling enough of? >> eric conditioners. -- eric conditioners. >> yes. this has made them change their

overall revenue outlook. coming up, nothing better on a summers day then ice cream -- ben & jerry's. he will tell us why he is on a campaign against genetically modified ingredients, and we might have a little taste right here.

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> welcome back to "market makers." i'm alix steel. >> i'm phil mattingly. we are in for eirk and stephanie -- erik and stephanie. we are pretty excited. hot money does not get any cooler than this, ben and its creativen for flavor combinations and catchy ice cream names, is getting into a different kind of food fight

against genetically modified ingredients. here to talk about politics and the business of ice cream is the ceo. we are really excited. we get to the ice cream. you have serious note, really been making this non-gm oh switch. it looks like you are a year behind schedule, but you are almost there. what was the hardest part? oh ingredients at ben & jerry's are a really small part of our overall product. the trickiest part has been how to track it all the way back. the bulk of our product was already non-gmo. it was a question of finding those little pieces. gotten some attention. you have a parent company that

does not necessarily agree with where dan and jerry's is. ben and jerry's is. you were with the governor in vermont, signing a piece of legislation that was opposed by euna lever. what is the balance between your parent company and you guys as a subsidiary? jerry's is a very unique set up. we do have our own board and we are a benefit corporation with its own set of policies on this. at theu are looking market response to the consumers' interest in non-gmo and right to know what is in their food, you are seeing a broad-based response from all companies. kellogg is converting. lever is taking a brand-based approach. the difference with been and

jerry's, we don't want to just convert of -- of our own. everyone has a right to know what is in their food. that should be labeled. we take it to the next stage. across the food business now, you see a large response to people's general interest in knowing what is in their food. >> do people's general interest result in any type of the increase in the price they end up paying for the product? >> it shouldn't. if you look at the ice cream , the cost drivers we face, when dairy and the price of butter in chicago is trading at $2.60 -- that has an impact on the cost of ice cream.

that is one of the biggest drivers of our cost. a lot of the non-gmo ingredients are of a smaller nature. you can see maybe a percentage increase. is a parity of our business that is manageable. i don't believe that all businesses and brands should convert to non-gmo ingredients. it just labeled the products. >>-- just label the products. >> ice cream is very competitive and real growth is hard to come by. we just put up a chart of sales expectations through 2018. compete?our key to is it the flavors? >> it is. when you are looking at the total ice cream market in the u.s., year to date dollar sales is down .7%.

packaged ice cream is slightly up and novelties down by 2%. is drivenge increase by super premiums. we are seeing a trend here where people are not necessarily indulging as often, but when they do, they wanted to matter. -- want it to matter. innovation, flavor excitement is really what drives market share and consumer interest. our fans went totally crazy when we launched our new [indiscernible] without really having started any marketing, totally trip and by the fan base sharing how excited they were about this. we got into quite some trouble keeping up with production the first six months. >> you guys put out a lot of flavors. not all of them hit. how do you decide when it is time to kill something? the way you kill is as

important as the way you launch. the flavors that make it to the really a wayard is we celebrate also the things that did not work. the key decisions instrument surely by sales and performance during -- perfroamcen -- performance. important's really that we launch a lot of flavors, we have 200 to 300 flavor ideas all the time in testing. when we kill them, we celebrate them. >> what is your favorite flavor? i am [indiscernible] classic salted caramel. i love that.

my of the classic range -- first ben and jerry's ever was chunky monkey. it is still special in my heart. >> that is what phil is eating right now. thank you so much, jostein solheim, ceo of ben and jerry's. coming up, labor shortage in silicon valley. ♪

>> this just in -- president obama will be making a statement at 12:45 from martha's vineyard. the expectation is this statement will be rate -- related to the alleged execution of james foley by isil, the sunni militants that released a video last night. u.s. intelligence officials told

me they were still working to verify its authenticity. however, the white house put out a statement last night as they were waiting for that to occur, saying if this is true, this is something the administration was obviously completely opposed to. that will be bringing you statement live at 12:45 pm eastern. "market makers" will be right back. ♪

>> president obama is expected to sign the most expensive executive action yet next month, a plan to do something to reform the immigration system without congressional approval. he could take action to limit deportations and might find more ways to that visas to high-tech workers. tech executives have banded together to create forward u.s., a lobbying group to push for reform. joe greene, the president of the group, joins us from san francisco. cover thermal day job

white house. this is all anybody is really talking about. executive actions the president is going to take going to look like? first things first, you guys are in the room and you have been in the room for the better part of the last couple of weeks. what would you like to see the president do come september? >> first of all, on behalf of the team of "bloomberg west," i would like to register a formal complaint that you did not share your ice cream with us. [laughter] >> next time. >> thank you for having me on. yearrd u.s. since the last , advocating for legislation to fix our broken immigration system, including a path to citizenship for undocumented immigrants as well is making it easier for people to come here legally and work. we continue to think the legislation is the only tone long-term solution -- long-term

solution. my understanding you are seeing discussion on providing relief for the undocumented as well as to help businesses. are privateese conversations. i do know that you guys have been talking to folks at the white house. you guys have been in the room for some of the consultations that are leading into what this executive action is going to look like. are you talking about specific things you think they can do? are you making sure they are aware? the administration is very aware of what you guys are looking for and what you are advocating for. why are they talking to you now? that onderstanding is the business side, there are a few kinds of things that they might be able to do. we hear is possible, one thing is that there are 200,000 or so green cards that have gone

unused. that would have a big impact on those who are languishing in the green card line, sometimes as long as decades. you have folks who are on hb-1 visas whose spouses cannot work. educate athing is, we lot of foreign students here and then unfortunately we kick them out of the country. being able to extend the period of time that people can have their quote occupational training after college, allowing them to work in the united states, to create economic value. there's a lot of stuff there may that -- that may be able to be done. you have dreamers who, like my who was too old for the cut off for daca. you have people who are the parents of u.s. citizen children. there's about 5 million parents

of u.s. citizen children under the age of 18 who those parents are undocumented. keep hearing about this earnings season from big tech is how they are cutting jobs. if you look at microsoft, cisco, hewlett-packard -- why does the tech company then need more tech visas? it's important not to think of the economy in a zero-sum way. these jobs in tech, these engineering jobs, these are extremely high value, high productivity jobs. where the difference between someone who is truly great and just sort of ok is really huge. are not able to be hired here, they will hire them in vancouver, in england, in other places. when companies are thinking about where they're going to grow, they need to be able to access talent. we had this huge strategic

advantage that people want to come here and we are culturally capable of absorbing them. >> does that mean all the people who are going to be laid off from these companies are not talented at all and people who come from other countries are the valued employees? >> no. that -- iaying is can't speak to specific companies. in my experience, having run tech companies myself, we are always looking for the most talented people. we treat people the same, whether they are from the united states are not from the united states. i can't speak to specific companies' layoffs. this is why you see the vast majority of tech engineers that i talked to from the united states are very supportive of bringing in people from other countries because they want to work with the very best. walked into a hornet's nest when you engaged on this issue, no question about

it read -- it. if thequestion -- president takes action unilaterally, is there concern of the blowback against silicon valley against those who are opposed to that action? two, are you guys willing to provide some cover like you did during the senate process to some of the republicans in the senate, provide air cover or funding to help the white house as a rollout whatever they are about to roll out? >> what we have done for the last year and a half that we will continue to do is continue to tell the stories of the people who are hurt by our broken immigration system and could be helped by it being fixed. those people ultimately in the long term can only be helped by legislation, but certainly what the president does might be able to provide shorter-term relief. you will continue to see us through a variety of different channels online. continue to tell those stories,

and say it is urgent and we cannot wait to fix our broken immigration system. >> will forward u.s. put some money behind this? >> we are not a super pac, we are an issue advocacy group. >> will you be giving money to a super pac, perhaps? >> i can't speak to that. that is not what we have done in the past. >> the idea i'm getting that -- at is that even if president obama does something, there is still midterms and 2016 presidential election. you will need more support than the president. >> i think we will keep pushing for legislation and it is very unfortunate that republicans in the house chose not to take this up this year after the senate passed a bipartisan bill. i think after the midterms, there's a lot of republicans who have said, in 2015, that they want to take this up again. we will continue to be there and provide resources to support the

people that are champions of this issue and to tell the stories around this. we did not take this on because it's easy. we took it on because it's important. >> thank you very much, joe joiningom forward u.s. us from san francisco. we will be back in a moment. ♪

>> "money clip" comes up next. i am guessing you will hit retail, because we have target

coming out disappointing. , target cutting the sales forecast. lowes trimming, not quite as bad, but trimming the growth forecast 4.5% from 5%. we want to wrap what is happening in retail into the comments we got from [indiscernible] about that economy, and what is happening in jackson hole, where you have all the governors talking about it. >> home depot yesterday had great numbers, the new have lowe's coming out and saying we did not sell enough air-conditioners. it is not seem to make sense. >> i'm glad you mentioned the home depot versus lowes disparity. this was the 30th quarter in a row that home depot effectively showed higher sales growth than lowe's. home depot is doing something right. lowe's is not. >> lowe's has been trying to turn around for a while.

looking forward to it. "money clip" is up in a few minutes. phil, you are going to leave me now. it was so great to have you there. >> it was great to be here, eating ice cream -- pretty much the ideal two hours. >> lots of politics. it is great to have you here. tomorrow -- don't have a cow. 10:00 a.m. eastern, fx network will start showing all 25 years of episodes of "the simpsons." kick off theto show's first ever appearance on cable. we are going to look at the business of the simpsons. you will be home tomorrow watching "the simpsons" also? >> yes. >> i will be talking about "the simpsons." bloomberg television is on the markets and olivia sterns has more.

are jumping we straight into derivatives. it is time for today's options in sight. joining me now is baycrest partners derivatives strategist [indiscernible] betweenfluctuated today gains and losses ahead of the fed minutes due out at 2:00 p.m. what do you see in the options market? >> vix options are active. the september 22 calls [indiscernible] vix trading around 12. anticipated,what because the geopolitical risks have not really escalated. jackson hole this friday. i think some players are looking at the september fomc meeting. this is not surprising. >> perhaps volatility would pick up this afternoon? >> that might be the case. particularly we are looking at the next september meeting. >> and perhaps simply holding

their breath for the jackson hole meeting. and that labor market, which we can't wait for from janet yellen. apple shares hitting a high since -- for the first time since september 2012. what response are you seeing in actual options -- apple options? >> calls, almost twice as many. >> people are becoming more bullish? really active. i think they are trying to take some profits out as soon as they can. the biggest trade so far today was a customer who probably sold 1995 110 calls and bought the 110 calls. he wasson would be that probably long the 95 strike calls and took some money off the table.

the bank who facilitated this trade seems like swept some october 110 calls. >> perhaps some repositioning now that we have had this high water mark above $100. what is your trade on fedex? stock is trading near the long-term trend support. 10% sinceg off almost its last earnings. is to buy the september 52 and a half calls. >> thank you so much. on the markets again in 30. ♪ . .

♪ ," welcome to "money clip where we tie together the best stories, videos, and business news. today's rundown -- the uber campaign -- were talking about the car-booking startup hiring some very serious political muscle. and paul ryan is in serious comes towhen it politics. and the story of ferguson, missouri, shifts from the streets, believe or not, into sports. and nobel laureate