>> live from bloomberg world headquarters in new york, the his is "market makers." >> keep on trucking. american format for pickups again. toyota has the pickup of the town. >> the top goal paradise you have never been to. all haiti needs now is to arrest. >> good monday morning, everybody. i am erik schatzker.

>> before we get to the vault and if you did not know, young eric had a birthday over the weekend. happy birthday. >> the wrong side of 40, folks. that is just the way it is. cannot do anything about it. cannot do anything about the news either. the top stories of the morning. news forecast from goldman sachs. it will not curtail shale drilling at least not until it falls to $40 per barrel. goldman sachs cut the forecast for the west texas intermediate rate benchmark to $39. prices fell more than 4% today. now below $47 per beryl. the biggest acquisition yet for a shyer -- for shire. this gives them treatment for rare diseases.

they have been trying to boost growth since a proposed $52 billion sale collapsed last year. genetic testing partnering with the biggest drugmaker in the united states. sharing dna data at 350 thousand people with pfizer. the data will allow new targets to treat dizziness and -- diseases and design clinical trials. maybe the end of the road for peyton manning. struggling as denver loss in the nfl playoffs. manning says he is disappointed and does not yet know if he will return for an 18th season. >> he does have the papa john's pizza if it does not work out for him. cyber security will be on top of the agenda in washington this week. president obama will spend the next four days promoting ideas to protect online privacy. he wants to prevent half hack

attacks like target and home depot to name just a few. he is in the seat. what is this all about? >> kind of never let a crisis or crises go to waste and the view from the white house right now. what they have been trying to do since they have been in office get congress, private industry and the federal government behind a comprehensive set of roles on how to counter cyberattacks and have not been able to do it. what they are trying to do is use what we have seen with jpmorgan, sony and targets as a way to jump off and add new momentum to the plan. they will start off by announcing a legislative proposal that any private company will have to inform their consumers within 30 days if there is a major hacked taking some of their private information. i think the most important thing by wednesday of this week they will lay out some type of

proposal talking about information sharing. that is the big issue in terms of trying to combat the cyberattacks. >> the white house is going to make a big presentation lots of ideas. how real are they? what are the actual action steps? >> this is something everyone agrees on. the fbi put on a classified demonstration inside congress for all lawmakers are they basically did the worst-case scenario. members were walking up action based. they were terrified what it would mean. i think what the president is hoping with a push right now is legislative proposal has gotten the floor action just not the final area of agreement that this push could help. not just demonstration stuff. the idea of being hacked over the past couple of months is a

can pressure lawmakers. that is what they're trying to jump on throughout the week. >> can we go back to the substance of the proposal that atmosphere surrounding it is important but does not address another problem, which is in many cases companies do not know they have been hacked and cannot inform anybody. as you well know a criticism levied is they are not working closely enough together. anything the president is going to say today or over the course of the week to address that? >> this is going to be the focus wednesday. the big issue and where stephanie's point is actual details of the proposal, the frustrating part is no one can figure out the specifics of how information sharing between the private sector and government would work. the private sector on stomachs or they are exempt from liability. the white house very concerned

about privacy and things of that nature. what the president says wednesday is important on that. will they set a marker down for what they need to see in a legislative proposal going forward? the white house has taken executive action, talked and worked on capitol hill but reluctant to weigh in heavily on legislation. the lack of details is frustrating. the detail is whether or not the president will get behind one of them and throw the weight behind it and go forward. that is the issue i am interested in seeing what happens with that wednesday. lex i know you are also interested everything that will be covered in the state of the union address. what else will he cover? >> last week he made three stops in michigan and arizona and tennessee. they are calling them sneak peeks of the state of the union. very rarely does the white house talk about this early what they

will unveil he will lay out executive action he can take. you will see some stuff on education, what he can do on the economy and then the display to proposals. friday we saw the big community college initiative. i think on cyber there will be issues to. i think he will say things are good but we can get better. usually presidents wait until after the speech. this year doing it before. >> giving us the latest out of washington, i think we have a little more time sorry, all out of time. when we return going live to the detroit auto show. matt miller will be here with the top executive of north america to tell us how gas prices are changing his strategy. >> dial-in island vacation spot where crowds are never a

problem. ♪ -- plus the island vacation spot where crowds are never problem.

lex this is "market makers." >> sap shares suspended from trading and the company came out with headquarters think the fourth quarter software matching estimates and the company based in germany does not report earnings until january 20, a little bit of a financial update. what is interesting is oracle shares dropped lower following the suspension of sap shares and have since paired the losses following the latest losses. as for the overall market looking for declines of .9% for the s&p 500. we are continuing to keep an eye on the weakness in equities extending after the selloff. like thank you very much.

talk about what is happening in detroit. automakers flexing mode -- muscles and the motor city. a year of booming sales. toward the end, plunging oil prices so it should not surprise you auto bookmakers have -- automakers have new hardware to show off. who should be there but our own matt miller? i want you to share with us some of the highlights thus far from the auto show. what are the major trends emerging? >> for me the exciting thing is it is not so much about hybrids or autonomous car or cut -- conductivity, it is all about cars. or conductivity. it is all about cars. the horsepower. sorry? >> who cares about the future and technology, let's go tough that asked -- bad ass trucks

right? >> with dollar -- with one dollar 77 gas, it seems like that is what it should be about. a lot of they suv's. it is a huge car. i am a bit of a caveman. i did excited about that stuff. there are a lot of hybrids lightweight technologies important here. i think that is the name of the game disguising these big, strong powerful cars or selling them as powerful cars and the consumer almost does not even realize and right now the consumer probably does not care about. >> it is really all about where the consumer is putting the accent because it is not as if someone could design and manufacture prototype of a big

suv in six months. this has been years in the making. >> that is for sure. all of the automakers are really paying attention to mpg. to them it does that matter if the price of gas goes down, they know it will come back up. that may bring in jim wentz to the discussion. consumers have a short-term memory but you have to pay attention to the bottom line as far as mpg all the time. >> the bottom line, you have to offer broad portfolio. the drop in fuel prices has just been in the past few months. when we were planning what to show and display, none of us knew her that was going to be. it just happened to be a lot of people bringing up performance cars and trucks. it is difficult to say, only time the price of fuel only going up.

>> you have a consumer looking at a new tacoma excited about buying the truck, they see truck and feel like they can do it because the price of gas is low, although it is a fairly fuel-efficient vehicle. >> what is interesting is whether it is a full-size truck or midsize truck fire, full-size truck fuel efficiency is about number 20 on the buy-in priority. a little bit higher on midsized whatnot the key driver. this will have much better eat mpg. >> midsize trucks are so hot right now. how does that happen? a really heated combat zone for the automakers, especially the big four. >> tough to say what the others were thinking. we have been in the business never got out of the business. a 60% share today of the truck. this is the ninth generation.

by far the best generation. >> i have been asking a lot of guys today about the euro and in your case the yen. the first thing that comes to mind when i think about toyota or some of the german automakers coming to the u.s. that you have tens of thousands here. does it affect you at all? >> obviously a little bit of the tailwind, it but when you build over 70% in north america, 75% part, it does not have that much of an impact. and you look at the yen it has weakened. the dollar has strengthened. i would not say one is weak one is strong. pre-lehman brothers the yen was around $1.20 and no one was talking about how weak it was. >> what is your manufacturing plant looking like?

a lot of manufacturers new to the game from overseas getting into production over here. tell you the producing -- toyota producing arrear for decades and decades. >> we are exporting to over 40 different countries. just about every model made in the u.s. is now x ported somewhere else. obviously the production capacity is right around 2 million. as we see the market continuing to improve long term, we have to make new -- with to make decisions about whether to we bring in more products from around the world or expand in north america. >> volkswagen that in her heels in terms of total production numbers. seems to be very important to them. how important to you to maintain the crown of the world's biggest car producer? >> it is not. it is a benchmark i guess. away for you to measure how well

customers are accepting of the product. but in the end, the number will be what it is. >> i imagine there are benefits that come with scale but also drawbacks for sure. you had recall problems before most other automakers on a big scale. how have you managed to avoid it this time? >> we took a step back and re-examine all of the processes major communication was transparent throughout the country and put it three-year hiatus on building new plants because we wanted to make sure we have processes in place, utilizing the capacity and most important, that we had human capital, resources of people to run the plants before we started expanding. >> how do you feel about the way to conduct -- the tway tacata has reacted to this? >> tough to say because i am not

sitting in his shoes. all i can say is we want to make sure customers are safe and feel safe. as an industry i think we are all getting together to examine what happened and what the fixes will be. we're are confident going forward customers are safe. >> focusing on the luxury brand lexus. toyota has a crossover brand out. are they going to regain the crown are the biggest selling luxury vehicle in america? they work for 11 years. >> i am not sure it will. we sold over 300,000 for the first time since 2007. a lot of what is -- what was luxury today was not luxury back then. we choose not to play in that game. >> a shot across the bow at the germans. >> it is a great vehicle.

i am driving a hybrid and tremendous vehicle. >> obviously almost synonymous to think of hybrids and toyota. are you committed to gas powertrain? is hydrocarbon a great part of your future? >> i think the plan all along, when we started developing the preassigned hybrid you were developing fuel cell at the same time. the plan was the short to midterm was going to be hybrid. we still believe that is what it is going to be. the infrastructure is not there. if you look at california as an example, 70 fueling stations in the right locations will get customers convenience of no more than 10 minutes to refuel and can handle over 10,000 vehicles in operation. i think hydrogen refueling, you do not need four hydrogen

stations on every corner like you do with gas stations today. i am a texas native now. >> enqueue. we really appreciate it. toyota has recently left the golden state and gone to the lone star state and now in plano, texas. >> thank you for joining us. a lot more from the detroit auto show all day long. our own matt miller back with matt fields. at 12:00 he has the ceo of nissan. at 3:30 obviously you know matt is excited about this one maserati ceo harold mason. -- harald wester. >> i was just wondering if they would talk about low end luxury below $30,000. >> what is that?

that is called an bloomberg. low end luxury. >> the first car i ever owned? a rocky. if anyone knows what it is, i want you to tweet me right now. that was in chile. >> can you guess mine? >> a volkswagen beetle. >> no. a white chrysler lebaron convertible. thank you, new jersey. retails new normal. the industry likely to shrink. on the other hand cheaper gas. you know this kills me. let me buy some jeans. makes no sense. ♪ ♪

>> we just wanted to give you an update on sap, the german software maker. it has resumed training and higher by about 4% right now in early trading. the company announced first quarter software revenue would be 1.7 billion euros on a right in line with what analysts had been looking for. the stock higher after the announcement. oracle recovering all of its

losses from earlier. at had fallen after sap was suspended from trading. back where it was. >> when we return, retail therapy. big chain stores, will shoppers provide secure? ♪

>> live from bloomberg headquarters in new york, this is "market makers."" with erik schatzker and stephanie roll. >> you are watching "market makers." i am erik schatzker. this year retail facing something of a new reality. many are shrinking hundreds of closures planned. it's oil prices tumbling, consumers might have cash to bring back to the market. with us is ceo of by manco -- fi nanco. goldman sachs just came out to say oil prices will drop to $39

per barrel. there have to be retailers who feel that is great news. >> no doubt about that. with oil prices lower, consumers will spend significantly lower. >> i cannot get my head around the fact people go fill up their car with gas and say look where gas prices are, let me run out and get myself a pair of jeans and the loss? >> if you fill up your car once per week , the end of the month that at that. >> at the end of the month you say look at the money, let me head to see wonder but i can't because they're going out of business. help us there. >> not so sure what you're going to do without them. could be a crisis. the consumer in america has so

many choices not only of storefront but online. they will find a place to buy what they need. you have lower cotton prices. again, that may not sound like a big deal on the face of it but for the garments we are wearing, honda is a big part. that goes down and we'll probably see price deflation or margin expansion. >> how much pricing power -- how vicious is it at that end of the retail? when we talk about the extra money because of cheap task they are not spending it at tiffany's but the mid to low end of the market and competition is pretty intense. they may not be able to keep much of the extra margin. >> it is more of how can i capture sales versus margin? >> that is not even an option at this point? >> it is tough. they may be able to squeeze a little bit out but it is all

about her motion. >> what about luxury? with europe in bad shape russians not spending, what will this mean for lux rebrand? >> i think north american luxury will be fine. europe in the doldrums. russia has stopped spending effectively. china with the crackdown on corruption, likewise much less intellectually. luxury sales should be doing ok. >> what does that mean for the individual company? which ones do best and which ones are most reluctant on chinese? >> growth over the past 3-5 years has come from the emerging markets, china in particular. now that has stopped. does not mean necessarily they will move backwards but that growth will not be there this year. >> men's wearhouse mergers

activists, what do we have to look forward to? >> three major consolidations and retail last year all had activists involved in them. men's wearhouse buying joseph a banks or office april fighting officemax, all of them had officemax -- all of them had activists involved. activists are involved. the staples, office depot conversation is driven in part by activists. the average market value of the three big mergers last year, up over 50%. that is a very big driver for the activists to get involved in stirring the pot. >> how about the individual company's ceo gas so how badly do they want to be consolidators

? >> depends if you're the winner or the loser. >> the name of the game -- >> but is a problem because of the end of the day what matters most is the shareholder value. it comes at enough of a premium that shareholders should be all for it. >> if you are in a consolidating industry coming your growth is flat to nonexistent. you can restructure the company multiple times or you can consolidate for a huge value for the shareholder, benefit for the business long-term. lex what is a non-consolidating industry? they are all right for consolidation. >> that is true but for sectors new and growing rapidly less means. athletic wear would be a great example. lululemon unlikely to consolidate that sector.

it was not a thought -- consolidation within the industry, expanding to a new category. flex is there a consolidation play for abercrombie & fitch? >> we talked about the team retail space. >> hard to sell wearing them. >> i think they do not want it emblazoned across the chest. >> underneath my chair -- shirt. >> that is where the major shift in what the consumer wants. it is not as brain conscious. does not want to scream out who is what i identify with. the secular trends are away from spending in that category. two or three getting together does not necessarily solve the problem in the sector sales aren't climbing so rapidly. >> it is and was such an awesome

little store. i love going to see wonder. you can almost always walk out with something fun and unique. i think the problem was they were fairly large. a lot of different products. very high price retail space. price points not that affordable. you walk in and what do they really stand for at the end of the day? a must-have item they have? more that i need a gift and see what i can find. >> ifs wondered did not work and many people say it is a ripoff of tory burch, what does it mean for tory burch? >> i think they are very different rams. tory burch has done an unbelievable job of building the brand and category and expanding

to new categories. >> is there a company you are worried about that has expanded very aggressively and now might face tough times? >> coach obviously expanded many -- very rapidly for many years. >> and diluted their brand. >> michael kors also expanded rapidly. still doing well. >> there is one everywhere you look. >> that is the challenger retail. do you grow yourself out of what made your brand special in the first place? >> i will learn a lot more because today is a conference. i will sit down with the brooks others portland.

>> the ceo. >> when we return, no fashion the mc or. as social media site where the fashion is in focus and all about the close.

>> the art of fashion is more about data these days. just ask the socially e-commerce company who recently launched a new iphone app that makes personalized closing recommendations -- clothing recommendations. we are here now with the ceo to talk about what the company is trying to do in terms of reinventing the company.

a great place for style invention. instead of it coming from fashion editors they come from fashionistas all over the world go pull together their favorite look and you can instantly by and pass -- shop anything. >> your average price point is higher than most. >> our average price point is higher in the average order value is eventually higher because we are all about shopping. people come there and are inspired and want to buy more and more things. we attract an affluent customer but younger people there to buy smaller things. >> what do people typically come looking for were -- come they're looking for? do they know what they want or are they browsing?

>> we get people of both kinds. if you do not know what the latest looks are, you can come to polyvore or if you know exactly what leather jacket we're great to buy the items to see how much they cost across the different retailers. >> how big is user engagement? can i tell them what i want them to wear? >> that is a big part. you can pull together your favorite look and ask other people on the site for advice. they can give you a joan rivers, i don't think so. >> you will probably get a lot of constructive criticism and loved. >> where is the crossover between your background of technology and engineering and retail? >> my background is computer science and i used to work at google but you see the world of

dachshund in an manufacturing and the lads -- knowing what the latest trends are moving closer and closer to digital because online shopping is where it is at. it generates a lot of interesting data about what is trending. all of that big day that really helps retailers understand. -- big data really helps retailers understand. >> are they responsible enough to know? >> some retailers really get it and are on top of the trends. some don't. some websites barely work on a mobile phone. >> name a retailer you think it is getting it right in terms of adapting the data. there are department stores that pay a lot of attention and do retargeting campaigns. >> you are in the online world only.

it is very important but i do not think anyone has track that yet. it is very difficult to track not only for us but for everyone. i am excited about the new technologies that allow you to do off-line. apple technology that says this consumer is near the beacon. polyvore that's a check out the outfit we have created just for you that you can buy right now that it's 20 feet away from you. >> when are we going to get you on android? >> we are on android. >> where is your customer? >> for the most part, in silicon

valley. >> if the percent of users out -- from outside the united states. >> if we are talking about deadlines, when will there be a plolyvore for men? >> that is an aspiration of mine. >> is there a market for men? >> there should be. more women know how to dress more men don't. >> not as much selection as there are in women's shirts but the art of mixing and matching is something that polyvore does really uniquely. we can say here is a different shirt and here are the different ways to wear it. i think men can really appreciate that. >> in general white shirt navy suit, snooze. thank you so much for joining us. this girl is amazing. cofounder and ceo of polyvore.

when we return we are talking haiti. the government says five years after the earthquake the government is moving forward. i went there last month to find out if they were bright. the preview was pretty bleak. >> [inaudible] >> [inaudible] >> 400 foods which is like two dollars. ♪ \ ♪

>> welcome back to "market makers." >> officially five years since i earthquake devastated haiti. now the government says it is ready and full of lucrative opportunities for private investors, but is it enough to help the millions of struggling haitians? i went there to find out. half a decade has passed the

rubble has been cleared. most of the aid agencies have gone home. haiti has a democratically elected president in the country has a new slogan, haiti is open for business. >> a lot of investors are looking around the country to invest. >> appointed prime minister in 2012 a former telecommunications ceo, he set out to transform haiti's image. from a poor aid-dependent country to a land of opportunity. >> what industry should come here? if you are to say this is a business that would thrive in haiti, what is it? >> manufacturing for example. we see traction now with large investors coming in. the marriott hotel is going to

open its doors. >> the marriott hotel being funded by an irish billionaire who calls him 80's number one salesperson. >> we will probably lose money for the first 6-9 months him and then we will turn a profit. we will get a good return on investment, no problem. >> the marriott downtown to the company headquarters. digital still operates in 33 countries but haiti is the largest arquette, accounting for one third of the 12.8 million customers. >> when you speak to american ceos and tried to sell them on haiti and they say look at the track record, it does not make sense, that country has problems right left and center, what do you tell them? >> i tell them my own experience. we have had absolutely no issues. no red tape. businesses have performed well

and has been a good investment. our experience is an example for everyone else. >> do not miss the exclusive interview with the former prime minister in the next hour. he will talk about haiti i'd years after the earth quake and tonight bloomberg tv will premiere haiti "business at 9:00 eastern and pacific. who wants to watch football playoffs when you can talk haiti? the prime minister we are speaking to two days after we sat there and spoke with him him of the initiatives and workings to really turn things around political unrest, he was forced to step down. >> that pretty much tells you everything you need to know about the place. >> they have a huge strategy to improve tourism, cruise lines there and manufacturers. if you are a manufacturer and willing to look past the fact

that 90% of the country has no running water am a horrible roads power grid is terrible, now dealing with the fact that the government is not just corrupt, in complete disarray chaos. >> how much tourism is there a? >> 25 million people go to the caribbean, 500,000 total go to haiti. the beaches are exquisite. they want to make it the new saint barts, but how are you going to make it the new saint barts went before your trip you are taking malaria pills and getting shots. no state-run hospitals. i do not want to stub my toe in haiti. carnival cruise is investing $70 million and going to make haiti a stop. they think we will see 600,000 people once we create the port. again, it is beautiful.

the problem they face is infrastructure. the saddest thing is the ngo money has basically run out. you will not see new money pumped into the country him is aware it is going to come from? when you speak to local haitians come and do you know what the dream is? to get out. >> really? that is depressing. >> a beautiful place with incredible people. low-cost labor force highly motivated. starting to see manufacturers there, but the problem is, it is just not enough. >> i am dying to hear what he has to say about this next hour. >> i am deathly going to be watching. have to take a break. when we come back going back to the detroit auto show. for just unveiled a new supercar. speaking with the ford ceo, mark fields. ♪

>> live from bloomberg headquarters in new york, this is "market makers." >> its new supercar. you will not use these wheels on your daily commute. 600 port -- horsepower and just under $1000. you will hear from the ford ceo in just a moment. >> the star analyst made her name warning for the financial crisis. she is finding the hedge fund world a little bit tougher. >> it says it is open for business, but business is not so open to the idea of katie. we will see what happened five

years after the devastating earthquake. >> welcome back to the second hour of "market makers." i am stephanie ruhle. >> i am erik schatzker. -update on oil market. have you look at -- look at prices? down 5% this morning. we will set you out to the newsroom. scarlet fu has more. >> most like at least for now, we have come off our worst levels of the session. at the level of the day, the crew that trades dropped to a low of 4590. this marks the second time this year in 2015 that crude oil has dropped by at least 5%. dropping quite a bit, by as much as 5.9% in the day. couple of catalysts. mainly, investment they've have come out with new oil price targets in 2015. playing catch-up to the wrapup

is futures. goldman sachs says it sees oil prices falling to $40 per barrel. that is in the first half of the year. socgen sees oil at $15 versus its previous forecast of $55. crude oil off by 4.2%, 4632. >> thank you. no end in sight. >> no. it makes some people happy. out in detroit, the american international auto show is taking based. the cheap oil is at least reshaping the conversation around the automobile in favor of the larger. truck on the one hand, more this placement and sports cars, like the one ford unveiled just this weekend. matt miller is standing by with the ceo of the ford motor company with more. >> i was in the arena to watch the unveiling of not only the

new gt, but the 350 r, a hard -- a high-performance mustang and raptor. i have the old raptor. i'm here with the ceo. let's talk first about the incredible focus on performance dirty will put out 12 new performance vehicles? why the focus on the high-end or america's carmaker? >> we are showing how we're using innovation through performance. the things driving innovation allowing us to have rate performance vehicles are focused on lightweight materials, great aerodynamics, and we have implemented so many of those elements across our entire lineup, it is just a great extension of it. the gt, which we debuted today is a showcase for all the information technology. >> we are seeing the birth of the new f1 50 because of aluminum and lightweight construction. this new car, what are we

talking about as far as, is it a supercar something nobody can afford? when will it come out? >> we pride ourselves on having a full line of vehicles him everything from small vehicles to our large trucks here at even this great new supercar. it is not a concept. it is a real production vehicle and will be available toward the back end of next year. it will get at least 600 was power. -- horsepower. it has great technology in terms of structure, the new ego boost 3.5 liter engine in it. all the great technology to be a showcase for what we're doing. >> and the carbon fire -- fiber, you are going into partnerships to build real scale carbon fiber. it does not seem like anyone has done that yet and that would lower the cost. >> this is a wonderful thing about how we are running the

company around innovation. we are challenging our engineers and asked them to challenge, question tradition, do not take anything for granted, use technology where you can air it in a case of carbon fiber, we have been working with doubts since 2012 and looking at techniques to get to high manufacturing of carbon fire -- fiber. it is part of our strategy on moving the company and the business forward. >> i welcome that step. i also heard you mention in terms of innovation that you are considering or looking into fractional ownership of cars and what is that all about? lest we are really looking at mobility on a larger scale. a lot of it has to do with listening to customers. you have, for example, large megacities growing, cities that have 10 million people or more. if you going to any love the large cities, the traffic is tough to get to -- through.

we want to be part of the solution for that. we are not only coming out with great products, but also challenging the folks in our organization to innovate the on that and look at major transportation and congestion and mobility challenges and come up with solutions. we are experimenting and we will learn in terms of what we can offer customers and what it can do for us as a business. >> i heard you at a conference in las vegas talking about autonomous cars that will be out there in maybe four or five years. you have no plans partaking in that sort of innovation? surely, if somebody will put little pots that travel around san francisco by themselves, for has to be in on that. >> of course. our approach as we have semiautonomous vehicles on the road today. they will help you parallel park and adjust your feed based on traffic flow. they will help you keep in your

lane, those kinds of things. we have fully autonomous development vehicles on the road and will absolutely have fully autonomous vehicles. we have not talked about the time and because we want to make sure when it is right for the customer and accessible for millions of folks and not just luxury customers. >> your predecessor went over and is now at the board on -- at google. they're looking for partners. will for partner up with them? >> as we go about this, we are making ongoing decisions around what we want to go out and buy, and who we want to partner with. it is still a wide open field out there as we work our way through it am a but we are dedicated to providing these kinds of solutions, and doing it through innovation, which is part of what we are as a company. >> you work in japan, you work in europe. before coming up to run the

whole company. when you look at a ¥120 to a dollar, or a euro getting closer and closer to parity, what do you think about that? that's obviously, currencies are part of our business. our approach is ready simple. we expect the markets will set currency rates, and not governments. we have seen, for example, with the japanese yen, that has an weekend based on some of the policies of the japanese government. that has given some of our competitors an advantage. we want the market to set those currency rates. at the same time, we will stay focused on building great cars and trucks like the ones we are introducing here at the show and let the customers decide. classes seems like this year, you have stolen the show with the new raptor, but a lot of manufacturers are focused back to the basics on cars. and just building engines that

work for consumers. you still have to keep your eye on the miles per gallon, though as we approach standards. is that harder with two dollar gas? it is not really what drives consumer decisions. >> is interesting. all the performance we're in choosing at the show, what we're showing is you can get performance and not sacrifice fuel-efficient eight, again through a lot of ego boost energy applications we're putting in here. look at two dollar per gallon gas. it is good for customers. it puts more money in their pockets that we think that is good for the economy. we do not think that will necessarily juiced the industry higher. it may change the types of vehicles that customers want. in terms of mileage requirements, customers still want good fuel economy in a matter what vehicle they buy. they're smart enough now to know although gas prices are low, they could go higher again, and they want to have a vehicle with great fuel economy.

as we look at the standards, we are working toward those. an important piece is seeing how customers are adopting the advanced technology and seeing value in it. we offer a full line up in the industry total still relatively low. we're really looking forward to the midterm review to talk about the feasibility of the timeframe of those requirements. >> you talk about the industry not necessarily higher, but everyone's forecast for a higher industry sales looking at 17.5 million almost this year. how far do you see the cycle going? could we go to 20 million vehicles? >> last year, we ended up at 16.8 million here in the u.s. our call this years between 16 eight and 17 five. that includes medium and heavy trucks. we do expect growth. when you look at the conditions,

economic conditions here in the u.s. i think are still very favorable toward moderate roads each year. income level, consumer confidence, those types of things there it i think that will bode well for the next couple of years there it that is always subject to any kind of shock which could get us off the rails here it we do think over the next couple of years, the conditions here are quite conducive to the industry. >> that is a good note to an interview on. >> thank you so much. more coming from the detroit auto show all day long. 12:00 em, we will speak with the ceo of verizon and -- 3:30, matt will be talking to michael horn -- pardon me harold vester, the ceo of maserati. when we return here, oil takes

another swan dive. goldman sachs says the situation needs to get worse before it gets better. plus, meredith whitney having a tough go of it. ♪

>> where is the floor for the price of oil? your guess is as good as mine. today, west tested -- west texas intermediate at one point touched $45 and $.90 per barrel. a new report for goldman sachs says wti can drop to $39. herewith moore morris isaac, and energy reporter here at bloomberg. you have got a lot to write about these days. >> it has then busy. looking good. >> how influential is a report like this for goldman sachs, calling for the benchmark contract here in the united states, west texas intermediate.

>> the market listens. >> try again. a lot of the analysts were bearish before the price collapsed. they were not as bearish as this. we are not them and we have got more to go. >> what is the rationale behind them putting the number in? >> they are not ruling out even lowering the 30's, but basically goldman's point is that what is going on here is the market is being determined less by what is going on the physical market and more by the capital market. in order to in -- to prevent investment coming in and pushing supply back up, the futures price has to stay low for a long time. >> we spoke a couple of weeks ago with alan greenspan chairman of the federal reserve there and he said that everything has changed in the oil market.

all of a sudden, with saudi arabia not out of the picture but declining to be the price setter, the market needs to find equal or the him there it how difficult is it for the oil market to find equilibrium? >> very difficult because no one knows what the equilibrium price is now. demand is very unclear. >> light is demand unclear? because there is so much supply? >> no. you have weakness in china and there is a lot of speculation about where that would go there it most forecasts for economic growth are better this year. the link between oil demand and economic growth is weaker it used to be and there are a lot of these negative -- >> it is really mystifying. capital markets have an easier time establishing capital markets main growth, demand, and copper, or iron and or. it is a movement struggling with

it in the case of oil. >> the movement targeting right now, shifts are going on in energy efficiency, and more use of fuels besides oil. the link is just not as strong. >> the long-term trends in the background shift for example that they can away from heating oil and international gas. wind and solar. >> exactly. look at the u.s.. our consumption is flat and the economy is not flat. >> a very good point. let's talk about the relationship between the benchmark contract here, and the benchmark contract overseas him him -- overseas. this is the difference and the rising line means the difference is shrinking. a very skinny premium today. >> if you put the graph back further, for a long time, prices were higher in the u.s. and that slipped as the u.s. started

producing so much more. it is now interesting. as long as you sort of have the structural reason why prices should be lower in the u.s., you see the spread tightening like that because of the volatility because of how steep the decline is -- >> here's what it looks like over five years. >> there you go. you can see how wide it used to be. >> when you see that tightening again, that suggests there are structural reasons for that to widen again. will it go widen because wti will go down more? that kind of seems more likely. >> one of the things goldman raises in its report is the prospect of a decline, which we have not really yet seen in the output of shale oil. >> they're calling for significant slowdown in growth. 400 barrels per day a year.

>> you need to get to the price of $40 or below to see that happen. thank you very much. isaac covers energy and has got a lot to follow. >> this is also his debut on "market makers." when we return, the wall street star will sell flat. i will not say she fell flat on her face. she is having a hard time. why is meredith whitney falling apart? stay with us. ♪

>> meredith whitney's funds biggest investor wants its money back. how it ran -- went wrong. >> meredith whitney started this hedge fund. there are few. all -- few people who are bigger stars than her. she started a brand-new hedge fund in what i wrote about today is how things went wrong. they went rare iran. the source of most of her funds asked for his money back. she said no.

they are suing. that leaves her without her biggest investor. >> can you tell us at this point if you made a mistake question mark -- mistake? >> it was not an easier for any hedge fund manager. >> her call does not seem wrong. >> let's talk about that. she wrote a book where she talked about the center of the country and the heartland really limiting. the coast, new york and california, struggling. she copies of -- people in the -- and businesses would move to the center of the state. >> this was her investment thesis. >> her equities. a long-term fund. bloomberg did an analysis headquartered in the heartland. it was not a bad idea. it was not a standout year but

on the other hand, if you're running a hedge fund, you have to pick stocks and do it well. she struggled with that. we have examples. a texas electronics retailer where you can go buy a plasma tv on credit. she lost millions of dollars. we reported more than 2 million. in total, she only had about 250. fishes like that hurt. >> there is a big difference. i hesitate to call her an academic. there is a big difference between having academic ideas and putting them into practice. >> in her defense, it is hard to start a hedge fund with only $50 million and one investor in that time horizon in a difficult year. >> of course it is hard. most people would not do it as a result. you are exposing yourself to all kinds of risks. if you do not staff up with $50 million, you cannot keep the lights on. >> let's start with that. a really good point.

what i try to answer in my story today is, how does such a small -- a smart person and big wall street star have such a tough time? -- >> unfortunately, we have to leave but luckily, you can read it on bloomberg.com. ♪

>> you're looking at a video of haiti's president at a ceremony today, marking the fifth anniversary of the earthquake that devastated the poor island nation. the government told me the country is moving forward and is ready for foreign investors to enter the country just a few days after i left. a political crisis led to the resignation of haiti's prime minister who helped lead the revitalization efforts. he joins us now over the phone. prime minister, today is obviously an emotional day for you. where you are five years ago and where you are today. when you and i spoke a month

ago, you believe haiti was open for business. we talked about the heineken paris -- a brewery. is there hope for haiti? >> there is. good morning. i believe there is always hope for haiti, considering the context of where we were five years ago. we were under the rubble. it was armageddon. it was almost like the end of the world. today, when you look at the country and all the efforts that have been made, when you look at the economic progress of the country, weekend, we are a long way. if we came along way like we did five years ago to today, i believe we will overcome this greatest clinical crisis and put the country back only if the traditional politicians put the country's interests before their own interests. >> why'd you truly think haiti

has come such a long way? i agree the rubble is gone, but all of it has for the most part been spent. what will turn it around? i just do not see manufacturers saying this is a good time to come to haiti, especially now that you, the man leading the business, is out of office. >> of course, it is a challenging moment. when you look at, for example the situation in which the country was five years ago, and you look at, for example, the situation in which we are today, we have an economy growing roads being built and assistance program security,, all of the indicators are green. -- are agreeing. we have a huge challenge, the put the situation. i remain hopeful that the

political classical find the solution, along with the president, to put their countries forward. >> had conversations stopped? you devoted a huge amount of your time to cortical -- foreign investors who could potentially start manufacturing in haiti. what happened to the conversations? have they just stopped? >> we have a team of people. the discussions will remain. it was never about me a single person at the head of government. it was always about the interests of haiti, the interest of the country, of 10 million people. i will definitely remain available and hopeful that those discussions will come. what we need is not handouts. the ngo, money has dried up. what we need is foreign direct investment, local investment, investment to create jobs. we have seen, for example we

have seen 4200 jobs created there. we have seen other jobs created throughout the country. there is hope for haiti. we, for too long, have seen that haiti was going backwards. there is a slight glimpse of hope and light for haiti today. however, it will take the help of all, the national community to stay the court and investors to remain confident. -- he has some very encouraging and inspiring words for all the investors. he said for the next few months, things will be more difficult. however, stay focused on the objective. stay the course and do not give up your that is the message we are carrying forward. >> what is going to inspire

investors to put money into the country if they know $9 billion more or less has been spent since the earthquake, and there is not much to show for it other than bringing haiti back to the state it was in before the quake question mark -- the quake? i have heard the stories and seen other images from the country. it is certainly better off than it was during the quake, the question is whether it was better off than it was before after $9 billion. >> i believe there is no question. the changes occurred from the click today are undeniable. we have more kilometers of road today than we did before. we have more, in terms of foreign direct investment, that improved and today grew 6000%. undeniable there.

we have the security situation a better police force. more police officers train them we did before. it is up 20%. even poverty numbers have been reduced. efforts are there. what we need, of course, we will go through, of course, a political situation, like i said. it will be challenging for the next 60 days or the next two months. but of course, when you look at the development of a country and the potential that haiti has to offer those opportunities will remain for the foreseeable years to come. we will get through the rough patch of the crashes we have today. we have to look at the medium run and all the country has suffered, we got back on our feet as quickly as everybody said we would. of course, we need to stay that course for the benefit of the

weakest in society. some of always been by her side and want to see the country go forward. it is the duty of all to put our political differences aside and work together. >> i keep hearing you say the word "we." if i were you, i would be sitting and having a trick in miami saying, that is not my problem anymore, but clearly, you still sound great -- committed. does that mean you will be running for president? >> well, i am a haitian. i am a regular citizen and i love my country. i put everything on the line for 31 months as prime minister and foreign minister. i feel all i've had for the country, as a haitian, i do not

need to be prime minister to love my country and want to see the country go forward. i consider that yes, it is we those who love haiti and want to see the country get better. this is how i approach it. >> clearly, haiti is in a better place today than it was exactly five years ago. thank you so much for joining us. do not miss the premiere tonight . haiti, open for business. that will be 9:00 p.m. eastern right here on bloomberg television. when we return, 80's unlikely benefactor. we will hear from the fashion icon. ♪

>> five years after the 17.0 magnitude earthquake devastated haiti, the country is still struggling but that the piece is.

more than two thirds of the workforce are unemployed or underemployed. they live in less than two dollars a day. despite these challenges, donna karan sees a very different haiti. i caught up with the fashion icon to find out why. ♪ >> donna karan, the new york fashion designer credited with revolutionizing women's land 80's may be an unlikely spokesperson for the 80 -- but she has been since just after the devastating 2000 earthquake. >> i needed to get involved in showing haiti and away that is special. i worked with haitian designers, developed designs with them, and i showed them to the public, get ting them interested in it. >> this is made in haiti. >> by women and men?

>> i am not discarding the men. giving a man a goal is just as important as women. >> karen has worked with 200 haitian craftsmen and women who made everything from brought island -- book brought iron chandeliers to next this. >> these are made from buses. >> these are? i thought they were shelves. >> and 2011, karen began working with paula. coles being -- traded handbags using scraps from factories at that capital. karen's urban zen cells bags and other artists works in shops around the world including this one in new york. the bags made from t-shirts retail for about $200. >> it will not mark down in stores. we know in the retail world, you can be in one season and out the next. that is not what will happen to haiti. if you do that we are over.

>> how hard is it for you to get these great amazing products out of that island and onto our shores? >> not hard at all. that is not been a problem. scaling up the mass would be. >> doing business in haiti has its challenges. much of the workforce lacks education and electricity is not reliable and it is expensive. that is not discourage karen. >> the bombs in the road? we hit them. we are not giving up on haiti. >> not giving up on haiti. donna karan is interesting. she goes down, she runs the project, and does actual business. pretty cool. do not miss tonight. haiti open for business. 9:00 p.m. eastern. who wants to watch football when you can watch this right on bloomberg television. >> coming up, a real cash cow.

we will take you to move, clock mu -- moo cluck, moo.

>> would you believe a burger joint just outside of detroit is paying its workers $15 an hour? it is almost double the minimum wage in michigan. is offering nutritious, cheap food, while also paying workers a living wage, certainly in that state. olivia sterns visited to find out how the bismarck -- business model works. >> flipping burgers and frying fries. in most places, this is a job that pays little more than minimum wage. here at moo, cluck, moo, just outside of detroit michigan

pays $15 an hour, or almost $31,000 per year. that is on par with starting salaries of policemen or firefighters in detroit. >> why are you paying your employees $50 an hour question mark in the short answer is we feel it is the right thing to do. >> he started moo, cluck, moo in 2014, in hopes to make nutritious food kids would actually want to eat. the all-natural patty to a portobello mushroom burger, it is gluten-free. plus cheap here you can get a moo murder -- how do they do it? cost we are tight with our labor and wiki cost down by limited turn over. getting our people to train other people. >> parker is finding skilled labor knocking down his door. this is their first employee.

>> we're doing more than what other people in the industry are doing. it is an all-day process. everything is made from scratch. we do a lot for the money. we earn it. >> he ever feel there is not enough of you in the kitchen? >> no, we really have superstars. >> it also comes with a cost. many vendors are not willing. >> you are willing to take a smaller margin for the company. >> absolutely. our team is worth it. we have very low turnover. that is very important. when you grow those people will be the people relying to help us grow. if we support more, we pay more. >> happy to take a smaller slice of the pie, and even planning to give equity to early employees. he does not fit -- he does not face pressure from shareholders to pay less. as a franchise expands, will the business model the as sustainable? >> it is so cold and gross. >> was -- look who is here,

olivia sterns. >> when i think of big mac mama i think of olivia sterns. >> i am a vegetarian. it is so interesting. 4 million americans work in the fast food industry. protests last year demanding a minimum wage. there has been a legitimate argument going on in academe about what it is and a lot of people say the never consequences is that food prices will go up that it will reduce the number of jobs. this story shows it does not have to mean food prices are going up, but it might prove you have less jobs. the thing you have to take away is that this kitchen is so thinly staffed, they have got about four people doing what mcdonald's has eight or nine people doing. they are paying twice as much but keep in mind mcdonald's has deskilled the jobs here they are

paying people to use their brain. all you have to do it mcdonald's is flip a burger, shake a milkshake. >> i would draw a parallel to bloomberg media versus our competition. all brands. very cool. we will be back with more. stay with us on market makers. ♪

>> president obama is scheduled to speak in just a few minutes

and washington, d.c.. he is at the federal trade commission to talk about ways companies can work with the government on cyber security. we will be taking you there live. for now "market will sign off. tomorrow, i will be sharing my exclusive with this year, how to empower women, and how to become a reality tv star. i have a feeling she will say, i am just a star but we will see. bloomberg tv has taken you on the markets. i will send you out to the newsroom where scarlet fu has more. >> a new plunge in oil prices pressuring stocks where bonds and the u.s. dollar gained. trigger -- triple digits, the doubt industrials opened with 150 five points, steadily paring its decline. as you can see, it has now cut that to a loss of 94 points. joining me for today's options

insight is the derivatives strategist at mk him 00 mkm strategist. we have cut that in half. >> i would say moderately encouraging. in our view, moderate volatility around us. levitating your the 20 level over in europe, the euro stocks volatility index, their equivalent of vix has gotten through its december levels and is zeroing in on october. if you look across other asset classes, clearly crude continued to get beaten up. volatility sharply higher relative to recent history. the ruble, blowing out. a lot of volatility around us. today, a little bounce after the week opened, it might be moderately encouraging, but in the near term, --

>> which asset classes in which security are you looking at as the lead indicator here? >> it is really everything together. there are a number of flashpoint. we are looking at the heart events head, namely the ecb on january 22, the greek presidential vote on the 25th. unlike the last couple of years where the market has faded the events, and correctly so. every time the s&p 500 pullback come it basically made a v-shaped recovery. we think the environment has changed. lifted last october up above 30. it was confirmed by the magnitude of that volatility event. more recently, cross asset volatility, it really has to be considered and especially against what we see as being a fair amount of complacency out there. >> complacency out there. if you look at the vix right now, 19.5 two after averaging 14.17 last year. still below the historical average. you did not even mention the generate 28th meeting, which

seems like an almost a no-brainer now after the greek elections in ecb meeting. what about earnings? how much of a factor will that be given all the volatility of the focus on crude oil? >> i'm not so sure it will do so much to impact earnings season. like i said, you get banks coming this week. jpmorgan, city, etc. the focus will be there. something we are talking to clients about is putting on hedges. we are looking at internet stocks, netflix, pandora, yelp, and twitter. as much as we think these are secular winters, the volatility we have talked about in the market makes us want to protect long stock provisions into earnings. >> netflix. >> very sadly, they report next week. -- very simply, they report next week. we want to turn around and buy spreads at 320 quickly, you put that on for just about 3.5% of the underlying, it sounds a a

lot, but what we're trying to do here is manage significant downside risk. this is a clock -- a stock that declined 20% after reporting earnings. >> in a support on january 20 just over one week from now. when it comes to netflix though, do you have a longer-term call? >> it is very bullish. almost a high, very instructive over the longer-term. but this quarter will be about subscriber growth. they missed in the third quarter. that will be the focus. >> all right, jim. thank you so much. we are on the markets again in 30 minutes. ♪ .

>> welcome to "money clip" for monday, january 12 to the best stories, news, and video in business news. i am pimm fox it we are waiting for president obama who is about to speak in washington d.c. he will speak about cyber security and how companies can better work with the government to combat cyber threats. here is the rundown -- in motors, detroit hosts the annual association on everything on four wheels. a new nissan is ready to drive. around the world