>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. stephanie: a stunning jobs report -- we have not seen this kind of growth in 17 years and paychecks are getting bigger. brendan: on the most wanted list -- evidence of the hack attack points to china. stephanie: his comeback has turned out to be a come down. tiger woods dropped out of a tournament in the first round. we will see what this means for pga fans and also nike. welcome to a very special friday edition of "market makers."

r.i.m stephanie ruhle. brendan: i am not erik schatzker. i'm stephanie ruhle. stephanie: excited to have you here. brendan: thank you. stephanie: do you mean that? brendan: the energy here is amazing. the top stories -- the biggest three-with hiring spree in 17 years. think about that. stephanie ruhle was two years old the last time it was this good. employers added 250,000 jobs beating estimates. wages rose more than expected. here is alan krueger's take. alan: i think this is a terrific report and it also suggests that last month did in rages -- last month's dip in wages was an anomaly. it is very positive for the economy. brendan: the jobless rate ticked up to 5.7%, an indication where

people are entering the workforce. shares of twitter surging at the open, up almost 13%. the company posted revenue that beat estimates, and twitter forecasts the number of new users will pick up. they likely would forecast that. they have been adding features to attract users and advertisers. investigators probing the hack attack on anthem are looking at china. 80 million customers had social security numbers and other data expose. there is speculation hackers might be trying to gather information for blackmail purposes. president obama says threats to u.s. security will take years to resolve. the president says threats include everything from terrorism to russian aggression, to find a change. the covenant say the president has been slow and timid in taking on global health challenges. we have breaking news and will

we are looking at right now, germany's state airplane -- angela merkel is aboard. she just got off and is headed for the kremlin, where she and francois hollande will begin negotiations with vladimir putin. it is not clear what they are negotiating on. from statements all three countries released before they left it does not seem up there is much room for compromise. until now, angela has been the vladimir putin whisperer. we will see what she can a college. stephanie: -- accomplish. stephanie: if viewers thought the best reason to watch "market makers" today was you, they are wrong. we have to talk to jobs report. rick's fund is crushing the competition, beating all of his peers over the past two years. if you are wondering where the pimco dollars went, they went to break, a bloomberg intelligence economist and my former colleague from the deutsche bank, carl mcdonough.

we will start with rick because he is crushing it. alan krueger said it was a beautiful report. no other way to describe it. rick: the three-month average is 387,000. three months, we have had a moving average of 300 30,000 private payroll growth. the point is no matter how you look at it, it refuted the wrong wage data from last month. incredibly strong with an economy that is looking well. brendan: i want to read you an example of what is going on in the economies. an italian pasta maker added 23 jobs in ilife making gluten-free pasta. i want to ask something about

what carl wrote this morning the fed will raise -- raise rates sooner. we have been saying the fed should move in june --rick: we have been saying the fed should move in june. you could wait till september potential, but you could argue -- if you go back 30 years and look at not only the rate of payroll growth, i would argue it is the best you have seen in 30 years. the 0% funds rate is not the right number. stephanie: dr. question mark -- dr.? carl: i agree with rick on that point. we have talked about good uses bad declines it was due to low labor force participation. what we see now is folks are moving back into the labor force, so the question of the dropouts, whether they would come back, there is evidence

supporting the fact that they can be brought back if the economy continues to outperform. stephanie: let's temper the bull run. is there anything in the report we should be concerned about? rick: no, i do not think so. there was a 700,000 growth that came in terms of population. you think about -- it only picked up .1% when you have this gem medicine growth of population. i do not know how you can cut this any other way than building on the strength of the last three months. brendan: three hours ago we were sitting on set talking about wages and not that enthusiastic. has the tune changed? carl: we saw some bounceback. that is the missing component. we are stuck in the range bound growth rate for average hourly earnings. december was lousy pair and we had a rebound in january. i think they are a wash as we are stuck in the range.

we should not see the wage pressures until we see a low run unemployment rate. we're not there yet. this could be a mae west employment report because the gains are so strong, this might start to make the doves on the open market committee hot under the colander -- collar. stephanie: they west -- mae west? that language does not fly. rick: what will be interesting -- dennis lockard, he is a moderate dove. he speaks afternoon and his take -- of course the hawks were saying this is evidence we have to move. the real new information will be how the dogs interpret the data. i cannot see how they make the case they have to wait longer -- and dogs into the data. i cannot see how many decades they have to wait longer. rick: you have to assume the fed will start moving, that rates in the u.s. will move moderately higher.

the fed has the most epic window to start moving rates because of what europe is doing, what japan is doing. what we are doing -- you think about where we can hold interest rates. europe and parts of asia will keep rates low for a long time. we like owning that the we think the yield curve flattened. things like long data minas pulls make sense. where do you on the right part of the yield curve? i think it does better in the u.s. and other parts of the world where there is opportunity. brendan: we have a strong dollar and the possibility of our stance on liquidity changing. what does that do for places like brazil? rick: we like emerging markets quite a bit. the rest of the market -- rates are too low. places like mexico, indonesia, great opportunities. brazil clearly has growth challenges. it is a place, were continually on the front end of the curve, where you could pick up a tremendous amount of yield

there are developments they have to work through and financing they will have to do over the next number of months. brazil is challenged on the growth side, but we think it will be an opportunity later this year. brendan: you are starting to sound like jim o'neill, forget brazil, look toward jakarta. rick: if you look at where the rates are, they are pretty darn attractive and it has been the haves and have-nots in terms of monetary policy. you have to find where there is value in the world, and a lot of the e is in a much betterm place than it has been historically you were getting paid the right price and terms of where rates are. stephanie: what do you think? carl: it is astounding to see this kind of jobs growth not just engendering number, but the revisions that were substantial given that the economy slowed from a 4.5% pace in the second quarter and third quarter, to what is now a 2% growth rate.

we saw this collapse that is not good over the long run, but in the short run, low productivity this is how magic happens -- growth slowing job creation accelerating. in the short-term, good news. you will see investment pick up as we get into q 2, q 3 and that will alleviate the collapse. stephanie: low oil prices, what do they mean for you? rick: the impact is understated. the impact on the euro zone and the u.s. will start to play through the economic data. people cannot talk about it -- it has bigger implications for the dollar. the dollar will rally because of the export dynamic in this country. stephanie: awesome. carl: watch out for an upside surprise on the retail sales that are. stephanie: thank you, mae west. brendan: the only sector where jobs were down, mineral extraction.

carl: and temp hiring. stephanie: temp hiring. there you go. carl: it shows employers are shifting toward permanent placement. stephanie: thank you very much rick rieder and carl riccadonna. brendan: coming up -- mission to moscow -- the leaders of germany and france are meeting with vladimir putin on the fighting in ukraine. stephanie: plus, zeroing in on the hackers -- can you ever really do that? chana -- china might be responsible for the big attack on anthem. ♪

stephanie: welcome back to "market makers." i am stephanie ruhle. time for some of the top headlines from around the world. sunday, greece's new prime minister will lay out plans. brendan: he has a fine line to walk. he has to keep from making european creditors to angry.

in australia, prime minister tony abbott is fighting for his political life. his liberal party colleagues are concerned about his leadership style. some are seeking his ouster. he's been slammed over his decision to grant a knighthood to the husband of queen elizabeth. a paul go down painting sells for $300 million. the buyer was a museum in qatar. german chancellor angela merkel and french president francois hollande are on their way to a meeting with vladimir putin to discuss the deteriorating situation in ukraine. you are looking at francois hollande, who will be getting off of his plane and driving to the kremlin in a second. have a heavy lift, having to convince vladimir putin to budge.

there has been no signs that he has any plan to budge whatsoever. ryan chilcote is in moscow looking back over a darkened kremlin. he has been -- reporting on the content area ever since it began. does anyone have any hope of anything to happen in that building behind you this afternoon? ryan: the hopes are not high -- i guess the hopes are high, but the expectations are low, kisses conflict, if you will, -- conflict -- this conflict, if you will, has been going on for a year. we have had a lot of peace talks -- not just in moscow today, but in minsk, the capital of belarus, in milan. the last time angela merkel solved vladimir putin in normandy, and even in geneva going back to the summer. none of those talks have actually produced a lasting peace. it is not clear what the french and german leaders are bringing

to moscow today -- if it is anything the russian president is prepared to accept. stephanie: father there any real prospect to a deal -- that's the honest -- are there any real prospects to a deal? let's be honest about what to expect. ryan: what the german chancellor has said is we already happening commit here the last time the negotiators -- we already have a deal. the last time the negotiators got together, they agreed on a cease-fire, the lines they would retreat back to, pulling back heavy weapons. that worked for a month, and then it stopped working. the early indication is what the french president and the german chancellor are bringing is pretty much the same thing. now, that is what they are saying. i cannot imagine that they are not planning on may be offering some stuff that they do not really want to let out into the

public just yet, because it might be injurious to one of the parties involved. it might be something the ukrainians would find tough to swallow. the other thing we hear is that the german chancellor is coming to talk tough and worn the russian president that if he does not agree to what he does not appear to have enjoyed a green to earlier, things will get worse for him. brendan: joe biden is in brussels right now. he said he will not stand by and watch the map of europe the will redraw -- be redrawn. one of the things vladimir putin has been trying to do is drive a wedge between europe and the united states. with the german and french leaders in moscow, is that with vladimir putin wants, or are they there to present the same argument barack obama has been presenting? ryan: i think he will be a similar one, but the difference, and it is a notable one, no one in europe, at least not at the eu level, certainly not the

german chancellor, the french president -- no one here is talking about arming the ukrainian military, like they are discussing in washington d.c., right now, and i would not be surprised at the german chancellor says to vladimir putin at the talks, that if you do not agree in the diplomacy it might just be that president obama decides to give the ukrainians of $3 billion worth of military assistance they are looking for. nobody likes the idea in europe, because then we kind of have a proxy war -- remember those? that we had during the cold war? in europe, everyone thinks that would make things much worse. brendan: ryan chilcote, standing in front of the comment. let us know if you hear the sound of champagne corks. i do not think you will. ryan: more likely to be the helicopters arriving. stephanie: far less exciting. the white house dispatched vice president joe biden to europe. he met with european council

president donald tusk and had to say this about the situation. vice president biden: president putin continues to call for peace plans as troops rolled through the ukrainian countryside, and he absolutely ignores every agreement. stephanie: bloomberg's phil mattingly is in d.c.. we have seen tough sanctions on mascot -- on moscow, what more is president obama considering? phil: ryan chilcote hit on it -- about arming the ukrainian forces. president obama is getting pressure on capitol hill from republicans and members of his own party. it is a decision that will not be made until angela merkel comes to washington on friday -- on monday, but it is one that for a long period of time was not on the table, and now it is.

that is a concern for the white house, and how much this has ratcheted up. brendan: is there any sense of what that step would look like -- weapons plus advisors, or is that getting a little far ahead of ourselves? phil: it is not on the table for u.s. advisors, troops, like what we see in iraq, to be in that situation in the ukraine. there are concerns the white house has always had. how will they be trained to use the weapons, how will their military use the weapons systems about u.s. advisors? the biggest one and ryan hit on this, europe and the united states staying unified through the process, the sanctions regimes, has been the number one goal of president obama throughout, stick them together. the u.s. would like to go further, but they have held back at the request of european allies. the idea of splitting with them -- angela merkel is against the idea of them and the idea of

splitting with them is something the president is uncomfortable with going forward and that is why you have seen reluctance over the last several months. stephanie: phil mattingly of bloomberg politics. thank you. when we return, he is distressed for success. corny, but actually true. we will speak to one of the best performing hedge fund managers when we return. his strategy, focusing on distressed debt, and how he won big in 2014. ♪

scarlet: yeah, i am right here. brendan: scarlet fu is at the breaking news desk about one hour into the friday trading session.

scarlet: we are seeing a bit of growth, and we are questioning whether the fed drops its language, dropping the word patient. atlanta fed president dennis lockhart will be speaking at 12:45 p.m., and investors will be scrutinizing every comment, and janet yellen will give her testimony coming up. the 10 year yield is higher, and if you look at how they have done the whole week, they are on track for the biggest weekly increase since july 2013. some speculation that the fed will keep on track with the midyear rate increase. we also have a stronger dollar, but oil prices are shrugging that off. they are now up by more than 7% so far this week, giving credence to the idea that perhaps oil has bottomed for now. stephanie: when we return, he is betting big on bankruptcies.

that is how chris pucillo became one of the best-performing hedge fund managers in the world. stay with us. brendan: plus, once again, tiger woods game has ended up in the rough -- really, guys question mark we will look at the game when tiger is not a factor. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> welcome back to "market makers." >> time now for the bulletin, the top business stories of the morning. surprisingly strong drop support for january. -- jobs report for january. the highest in 17 years. wages grew more than expected and the participation rate take up. shares of linkedin up 14% today. for your forecast that the estimates. they have pushed into china and

have new products that are starting to pay off. radioshack has turned the rumor into reality. they filed for bankruptcy protection. 2400 stores -- 1000 stores will be turned into sprint stores. radioshack is now a real estate -- you can bet on crude. the industries billions in spelling cuts are paving the way for price rebound making show producers good investment. -- shell producers good investment. >> this week, we have been highlighting the best hedge fund managers in the world. from the 2014 hedge fund 100 list these are the funds that had the best performances of the year. today, we have the ceo of alternative asset management --

he has been on this list before. his firm focuses on distressed debt and returned 12% last year placing him at number 34 on the list. welcome back. how did you do it? >> same as always. focusing on bankruptcy restructurings. last year, a lot of infrastructure names we were able to buy from european banks and put ourselves in a good position to put those assets up for sale or running the many lower debt load. >> we just looked at the jobs numbers. the only industry that ticked down with mineral instruction -- extraction. how is that good news for you? >> we are short some of those companies. that has been a good trade for us last year as well. overall, we think the u.s. economy is doing ok. we are not overly concerned about it. it gives us the opportunity to

invest a little more freely in some of the companies that need a better u.s. gdp growth. >> will there be less distress opportunities? >> there are winners and losers in every good market. >> i have to admit a personal obsession with -- there is something you are doing that caught my attention. buying spectrum. there are two ways to look at the value of it. either incredibly value right now because of the fcc auction that just came in four times the estimate. linked wi-fi networks will make structure -- spectrum irrelevant. >> we are long on spectrum. ultimately, the carriers will need more spectrum. the more people that use their cell phones that have other mobile devices come in they are downloading data and other types

of content, it's coming over spectrum. a lot of people think ultimately landline will be gone and everything will travel over spectrum. >> you think it will? >> absolutely. >> where do you see the value of wi-fi? these carriers are competing head-to-head. >> wi-fi needs to get a single first. -- signal first. you have to get a connection to the wi-fi. in the house, your connection is coming from your fiber cable. then you are able to access the internet on your device through that wi-fi. >> how are you making sure that your holdings are liquid? there is no spectrum clearinghouse. you have to hold onto it and find someone to buy it. there is no exchange. >> that is the problem. a lot of our positions have been

from bankruptcies we have been involved in many years ago. we sold assets to take money off the table and have it at low valuations because of that illiquidity. the spectrum was at four times -- >> what does the drop in oil prices mean to you? they think it is a home run. >> it is an interesting opportunity. anytime you have volatility like that come increase losers and winners. -- like that it creates winners and losers. lower oil prices are not going to hurt their ability -- >> what kind of companies? >> some of the shale drillers. their cost to get the oil out of

the ground are low enough where they can still survive in a lower oil prices marvin. we don't want to make bets on the oil curve right now. who knows? >> you don't even have an assumption, break point, $50 or $60? >> we are. it is lower than that. in the 40's. >> all right. you say you don't see europe as a particularly encouraging investment right now. what is the one piece of news that will change your mind on that? >> it will be a long time before it happens and it's a long list. right now, we are seeing plenty of opportunity from european banks that are monetizing their own balance sheets. we participated in that last year with the shipping names and infrastructure names. you don't have to buy europe gdp , needing that to grow in order

to make money out of europe. the european bank selling come a lot of u.s. assets and non-european assets they own that they are monetizing. >> robert schiller said look at the periphery. by greece and portugal and even think about russia. >> not me. >> but you love distress. >> there is political risk that you can analyze. -- can't analyze. maybe there are some that can make that analysis but that is not what we do. we look at assets in cash flow. >> you spend a lot of time working on investing in lehman. >> a long time. last year, late in the fourth quarter, there were some big sellers in lehman. based on our models, we were able to purchase some of the double-digit ir's. >> why would people sell? >> i don't know.

>> you have to know. >> i really don't. >> you are willing to sit on that paper. >> they're making distributions every april and october. it's a question of we put capital today, we get capital back in october. however long it takes to get our money -- as long as that is in the double digits, we are happy. >> what is the next big distress situation? there is not another lehman. let's go lehman ballpark neighborhood. >> that is difficult. the environment was looking like that could be retail. but that has changed a bit. the u.s. economy is stronger and lower oil prices is a big boost. >> the big boxes will have trouble. >> i don't know if it's going to

create that bankruptcy opportunity we are looking for. >> retailers are in this race to the bottom. even if oil prices are low and the economy is doing ok people will say great, let me take myself back to jcpenney. >> absolutely. jcpenney maybe sears or another store. >> were you involved in radioshack? >> no. that seemed like a long time coming. the guys involved one of the company to liquidate to cash in their -- there is no more value-added for us. >> that long bankruptcy breaks my heart because radioshack was a place where he is told by -- where you can still buy little transistors and servos. >> it did not seem like there was any life left in radioshack. the guys invested, and did not

seem like there was any business left. >> you can go to this big online company and have it today's -- in today's. >> everybody tries the new thing. none of it worked. cell phones kept them alive. that is over. >> you had a great year. why do you think the rest of the hedge fund community is struggling so much? >> i will tell you what we get. for us our top five positions are 50% of our portfolio. we put a position on was concentrated. our most profitable positions from a return perspective are our biggest. as long as we can keep that going, we are concentrating our gains in this figure positions. >> you have to bet on guys in

jersey. >> nobody admits what they don't know. you saying i don't know enough about portugal to go in there is smart. >> congratulations on a great year. good luck on 2015. >> who is behind the cyber attack on anthem? the evidence points in one direction. it is china. >> stay with us and you are watching "market makers." ♪

>> welcome back to "market makers." now for some top headlines. president obama has laid out his approach to national security threats in a report released this morning the president says the u.s. is confronting everything from extremism to russian aggression. those threats will take years to resolve. republicans have accused the president of ink to commit. -- of being too timid. petrobras trying to recover from

the scandal. according to a person with knowledge of the matter petrobras will name the head of the state run bank of brazil as its new chief. a brazilian judge has ordered that the assets of batista be seized. he is accused of insider trading. his commodities and logistics empire completely collapsed. he is now $1.2 billion in the hole. extraordinary. >> we learned yesterday that 89 million customers may have had their personal information stolen. early evidence points to china. nobody knows more about this than mike riley. you are so good at explaining the mechanics of this.

help us understand, how do we know that the evidence points to china? >> on the face of it you think 80 million social security numbers passwords, e-mails would be something criminals would want. it is not that hard to distinguish between criminals and nation state actors at a high level. combinations of malware used in this attack, the sophistication of the attack, the early fingerprints go back to a group that u.s. intelligence and law enforcement have been tracking for some time. it fits into a pattern. chain pharmacy stores, other insurers have been hit by this group and similar groups in china. they're clicking a huge amount of data. that's collecting a huge amount of data. tell me one name is deep panda. >> deep panda?

i do they want this information that's why do they want this information? >> they are not after the information of 80 million people. thereafter the information of a much more select group. defense contractors, government personnel, information to get into their computers or for good old-fashioned espionage recruitment. their real goal is things like military technology. these big health-care companies have this smaller group. they are building these databases to go after a tiny group of people. >> the pentagon is trying to figure out what its definition of cyber war is. does this get close to that line? >> we are still in the espionage area. we do the same thing. we spy, we hack to pull out

national security information. >> wait a minute. do we blackmail people into becoming spies? >> i don't know -- >> have you watched any movies from the cold war? >> currently? >> i don't have a huge insight into specific recruitment techniques but we do recruit spies all over the world including in china. >> corporations have been reluctant to admit this has happened to them. when anthem got out front on this, will this change how corporations react when they get hacked? >> after sony the country seemed to rally around tony -- sony after the u.s. government pointed to north korea. that has made copies more willing to say hey, we are victims here.

let's be aggressive about this. they called the fbi quickly and got ahead of it in terms of putting out a release they really wanted to get on top of this. they are pissed off that hackers and cyber spies told -- sold the data of 80 million of their customers. that has enraged them. >> what makes this attack more sophisticated? >> there are particular techniques that you can use to get into networks and hide in a network and move around in a network. criminals tend to be noisier. these guys were pretty stealthy. they were caught as the information was going out of the network. the moment where his security team can see things going to ip's that are already blacklisted or are suspect.

that is what happened on thursday. >> are cyber security asset. you are getting soft. go break something. >> you bet. >> two years ago, golf's top ranked player. now, he can't even finish around. what this will mean for tiger and pro golf. ♪

>> welcome back to "market makers." >>i just want that to be the case -- we need to talk golf. another setback to the one and only tiger woods. pulled out of the farmers insurance open in california with a lousy back.

he called it quits while playing in his sixth event since undergoing back surgery. his latest injury caused doubt in his participation. we have to find out how his absence impacts the sport. it is amazing that this is the case. after everything he has been through he remains the marquee name and golf. non-golf enthusiasts can even name five golfers. what does this mean? >> he is the marquee. it's not even if he is playing well. people want to watch him when he is playing poorly, too. he told reporters he had one goal, his eyes on that green jacket. >> the whole idea is to make sure i'm ready for augusta. i have a lot of rounds between now and then. if i happen to play well enough to get in the round, great.

>> are people want to watch if he's not playing? >> that's what everyone is worried about. anyone with a financial stake in the game of golf is playing he recovers -- praying he recovers right now because he is a huge economic driver. look at television ratings, when tiger is playing well and has a chance to win ratings spike. when he is not playing well or not playing at all, ratings plummet. >> can we get the camera back on shelby? it looks like she is reporting live. >> it is not all -- at all. >> we were taking a look this morning at callaway. they are having a terrible decade. tiger won the masters -- ever

since then, it has been a bad story for them. >> their stock price mirrors his performance. look at ticket prices, when tiger is playing -- >> does nike still sell a ton of tiger gear? >> 50% higher for the masters than they were in 2014 when he did not even step on the course. you can quantify it in different ways. how many minutes are you looking at a nike swoosh when tiger is on the course? that is a lot of lost television time for nike. >> he is even affecting adidas results. tiger decline affecting tailor-made results. >> why can't the sport buildup another athlete? >> fun to watch. >> the nba replace michael jordan. the pga has not been able to do that. >> he is definitely the most

influential layer in history. -- player in history. ♪

>> live from bloomberg headquarters in new york, this is "market makers." >> tech investors on a roller coaster ride. number of big names with double-digit moves today. folks in the green and red. >> has disney found an error apparent -- heir apparent? >> get ready to rock. the grammys are this sunday. taylor swift looking to take home a few trophies. welcome to "market makers." >> we will start with the full

-- >> are you a taylor swift fan? >> huge. huge and unashamed weakness for taylor swift. right after we go through the bulletin -- the last time we saw a jobs report like this was 1997. u.s. economy added 250,000 jobs in january. the government revised the number and december reports come upwards, the biggest three-month gain -- investors tried to figure out what the jobs report will mean for interest rates. the s&p 500 is up 38% on the day. the dow jones industrials 24%. the 10 year bond reacted to the jobs report. wow. that is some movement.

>> are you kidding me? >> pandora shares falling the most in more than two years. down as much as 21% after the results forecast missed estimates. a record number of students have applied for harvard. good look, kids. applications up 9%. harvard boosted its recruiting on social media because nobody knew that harvard was a good place to apply. it publicized a 100 the million-dollar gift. -- 100 the million-dollar gift. -- $150 million gift. >> do you use pandora? >> i do. >> i use spotify. only problem, i get no taylor swift. >> what i listen to in the

mornings when i'm getting ready is the u2 automatically generated playlist on pandora. >> i think we are done here. powerhouses like twitter and linkedin reported quarterly results that wowed wall street. it was not all coming up roses in silicon valley. go pro and pandora took hits. seeing double-digit percent stock movement with all four names. here are the highlights with cory johnson. what name are you most interested in? >> as we all know -- we know you like to move it, move it. good to have that on record. all of these stocks are moving. i don't care about earnings or estimates. i care about these businesses. we found out so much about all

of them last night, the problems they have had for a long time. why don't we start with twitter? very interesting quarter, a very screwed up quarter. the lowest user growth they have ever shown in the business. they say don't pay attention to that. we only added 4 million. we would've added 4 million more but there was a problem with the iphone update. in the current quarter, the user growth is going to accelerate. don't worry about the growth -- this quarter will be awesome. you can start to see a path toward profitability. >> you are not concerned about twitter having issues with management? >> they have had issues on management forever.

they thought about this thing in the back of a car while doing bong hits. this is a business that is starting to generate some revenue per user at a rapidly increasing rate. gathering a big audience. it's a big audience getting a lot more money. >> i don't believe they call that bong hits in the back of the car. the technical term is hot boxing. let's talk pandora. >> more knowledge from stephanie. this is a story from the very beginning. this is a business that people love, helps us get up in the morning -- the content costs are higher than these competitors. they have not been able to fix the problem that their content

costs more than they can afford. if the user growth starts to slow down -- the success on mobile is not enough to gain enough users so that the scale -- their battles with the recording artists organization to lower the costs are failing. >> help me understand who is making money in streaming at all? jay-z just bought a streaming service. there is no indication that they can make any money. >> let's not make lawyer jokes. i have no esquire. there is a tremendous shift happening into a digital world. when the users are measured, advertise pay less. when you talk to terrestrial radio stations, they hate pandora and spotify.

pandora levels are not going up. >> does jay-z pay any green dollars for anything? >> he said i'm jay-z, give me what you got. >> it's over. >> that strikes me as something you might say. >> i'm on his side. >> thank you, cory johnson. >> somewhere, i have a line and i don't cross it. your segment is over. thank you, cory johnson. moving on, no matter what the industry, something has been widespread the earnings season.

the strong dollar. approaching its highest level in decades. the fed may raise interest rates as early as june. julie hyman neglect what you guys laughing about? >> are producers are waiting to check me out. talk to us. strong u.s. dollar. >> i know you guys like talking the nicknames for co jo. the dollar going up has been a big theme. why is it happening? why is it important? 46% of the sales come from foreign sources. when the you bring that money back to the nine states, it is worth

less than it otherwise might be. potentially 46% of this revenue is affected. what happened in the fourth quarter? you saw the yen going down by 14%. use all the dollar rising 8% versus the euro. that is a big change in relatively short time. something these companies had to deal with. we are seeing so many companies talk about this. everyone from procter & gamble to pfizer to dupont to activision blizzard to 21st century fox, it is very widespread. >> there has to be some benefits. is there a company benefiting? >> companies that hedged successfully. honeywell is one example. there is the issue of changing

cost. it is not just the revenue you collect. it is what you pay for production. as someone pointed out to me, not only that you have to think about the things that are priced in dollars. things like oil and copper. you have not seen the effect their. >> we have been looking over the last decade at the assumption that all the growth will be in emerging markets. procter & gamble and caterpillar had based their strategies on selling abroad moving abroad. this shift will take a long time to adjust. >> a ship corporations have not had to deal with it longer than that. i talked to a portfolio manager and he pointed out, it has been decades since we have been in a

sustained rising dollar environment. not something companies and investors have had to wrap their heads around. this latest move caught them off guard. if europe continues as it has been and we do see rates go up in the u.s. it's not as though this environment is over perhaps companies will be able to adjust for it and we want to the sharpness of the move we saw in the fourth quarter. -- and we won't see the sharpness. >> thank you for taking us back to planet earth. >> coming up, the new job supports as employers have ramped up hiring. we will ask an executive recruiter. >> today is friday! time to play the yearbook game. graduating back in 1971 -- send

us your guesses on twitter. who is this guy? >> that guy was definitely in the chess club. ♪

>> we will take a look at the top headlines from around the world. the leaders of germany and france in moscow to discuss fighting in ukraine with vladimir putin. the west will impose more sanctions if he does not try to put an end to fighting by pro-russian rebels. officials looking toward the china -- there is evidence that points toward a chinese estate sponsored hackers. 80 million and some customers had their social security numbers and other data exposed. one of the highest prices ever for a piece of art. selling for $300 million

according to the new york times. the buyer was a museum in qatar. >> workers have an easier time finding jobs get what kind of high-ranking the are we seeing that hiring are we -- hiring are we seeing indices the c-suite? are there certain industries where we are seeing investment bankers leaving their posts? >> great executives are always in demand regardless of the employment cycle. >> is this what you say declines when you call them up in the morning -- say to clients? >> certain industries are busier than others. technology companies are really

busy. there is heightened attention to a couple different segments. one just outlined in the anthem -- >> are using compensation change? chief technology officers did not get paid that much money. has there changed? that's has-- has their comp changed? >> absolutely. my appear to couple hundred thousand dollars -- it may have paid a couple hundred thousand dollars. these systems are moving up the charts. the used to report up to the cfo. it is now part of the strategy. >> direct into the ceo. it is that critical and that important. >> are you seeing less and less senior executives not want to

take board seats? >> it kind of depends on the company and the ceo. what their existing board -- the board does not want their time spent elsewhere. they want them focused on their business 100% of the time. >> i want to get back into the anthem story. every time one of these prominent consumer facing industries gets hacked, do you get a huge call volume in companies saying definitely do not want this to happen to us? >> the phone does not ring off the hook. you see with the sony attack, with anthem, with target -- the list goes on and on. now, we are getting a lot more calls about that than we did six months ago. >> how hot our cyber security positions right now?

are there senior people to take them? the compensation is -- most of those players are coming out of government. >> from the military? >> most often from the government. occasionally you will pick them off a competitor or a company in a different industry with a huge emphasis on security. more often than not, coming direct out of government. >> your stock just got halted. why is it? you got a potential bid from one of your rivals. >> you might be referring to dhr -- we are not publicly traded. >> the company you might bid on -- >> we made a formal offer to the board of ct partners, a rival firm of ours. we are hopeful and optimistic that the board will accept the offer. we think the combined companies

would have a great benefit to our clients. >> the stock just got halted. does that mean it's going to happen? >> i don't know. i can't speculate. >> good luck. we hope it happens for you. the ceo of dhr international. >> more than just a great show. how performers can capitalize on winning a grammy. turns out a grammy matters. ♪

>> european markets closing for the day. we will head over to the breaking news desk to check in with scarlet fu. she will take a look at what has happened in europe. >> the stock 600 has given up a bit of its gains but still positive right now. it can hold onto to these

advances, it would be closing at a seven-year high. we want to highlight a couple of big movers for you. glaxosmithkline rising more than 2% -- more than 1% right now because of positive results from a drug trial. norway's largest energy company a familiar theme. costs halting dividend growth because of the plunge and oil prices. crude is still off 50% from its highs. we had to keep an eye on the greek equity market and greek assets overall including sovereign debt. the euro area, governments debating greece's for short-term financing agreement. stocks closing in the red. down by 2%. banks once again leading the way lower. the 10 year bond moving higher.

perhaps some anticipation before that speech. >> as we see the steady drip of news, the movement, is that going confined to greek fixed income or spreading anywhere else in europe? >> the new asset class. >> they are all wealthll within the range we have seen the last couple of weeks. still far off what we saw in 2012. >> thank you. >> we will be taking a deep dive into fixed equity markets. or maybe not. the struggle that has had people guessing four years. who is replacing bob eiger at disney? >> i will make a billion dollars in fixed equities.

>> a guy who has made a lot more than $1 billion. take a look at this handsome man. i have a feeling you may like that she may like a.c.l. sports team or two -- i have a feeling he may like a seattle sports team or two. he looks like a french horn player. >> and alto sax player. definitely not a french foreign. -- a french horn. >> he definitely played an instrument. tweet us. ♪

>> he was cfo for 12 years. those of us around when he was cfo, we have fond memories. very good work with, very transparent, right up front with investors. both j and tom, disney has been blessed because they are both strategic cfos. they work hand in glove with eiger over the years. both of them, particularly well-developed to become ceo. tom has some good credit for the major changes, major investments, major growth the parks have undergone. >> what happens to jay? >> he would be the ceo of a

major media or consumer company. maybe a tech company. unrelated to disney. i suspect he leaves>> where is and sweeney? what is the game plan? >> there has not been anything new. the expectation is she will move ever to the e production side. it is a major change. she has been an influence on the cable business all the cable networks reported to her. >> the surprise was the success of "frozen." has that changed their strategy? >> they do not know how to let it go? >> i gave you an easy layout. >> has that changed their strategy. what are they doing to find the

next present? >> big franchise movies think marvel studios. and star wars. they bought pixar. they put down tens of billions of dollars of acquisitions of big franchise making companies. that is where they hang their ha t, big franchise movies. if they catch a frozen every once in a while that is gravy. >> so the jobs number is all sun beams and rainbows and everything is great. >> until people say i do not want to pay $200 a month for cable then we have a problem. then the media ecosystem comes under pressure and people are saying i am paying $6.50 for espn, i've not into sports. the bundle supports all the big media companies, including disney. >> they are amazing at

integrating their properties. they are making sure your kids know what disney world is and they want to go there. they are taking maker studios and introducing a new generation to star wars. >> they spend upwards of $1 billion for the acquisition. more and more people are watching video outside the bundle. they are watching youtube. they said let's buy some of the best producers of "professional production." they spent $1 billion. >> there is your answer, all unicorns. >> have you taken your children to disney? >> they are not old enough to be worth the expense but they are on their way. paul sweeney is coming with us. >> my children are old enough but they have not been. i continue to tell them it is just a commercial and it does not exist. paul sweeney from bloomberg intelligence. when we return, kids who want to

stay off the unemployment line better listen up. they are staying in school. we will explain that and a lot more, stay with us. ♪

>> welcome back to "market makers." i am stephanie ruhle. last month, the unemployment rate for college graduates fell, this cut my eye, to 2.8% 3 points lower than the overall jobless rate. soon we could run out of college educated americans to fill the jobs that need filling. can you believe that? >> there has been a steady drip of the news about that. just how much better college

education is. how do you pay for college? it is a fight in washington. >> people have spent so much money, they have not been good finals for graduates to go on and get good jobs. there is death only a disconnect that there's going to be more jobs than college graduates. there are tons of college graduates attending school that do not have great job placement who can't get good jobs. >> the push in the most recent budget is interesting here to around community colleges. i have zero faith in washington's ability to get this done. >> i disagree. >>? how >> the average student graduating from a community college, it takes six or seven years. many had a graduation rate of something like 27%.

maybe those students should not go to community college. we have convinced ourselves that we all need college educations. guess what we also need? mechanics, plumbers. when you call a plumber to come to your house he cannot come for three weeks and he is over 65. how about seeing young craftsman who are not meant to go to the best schools out there. do not get your cells and accounting degree at a community college or get a location. >> there are two ways to interpret that. one way is to get more people in four-year college, the other is billed an apprenticeship program. a lot of policy makers are looking to germany. you have a lot of wage labor. you do not have to be a part of this chart that says you got to go to college. >> i went to public high school in new jersey. there were budgets for students to go to vocational school and become carpenters.

those programs do not exist anymore but we still need those jobs. >> there is some idea that you might lean on corporate america. in the german system this is not coming out of the public budget. companies pay into a structure to train them to do this. that is a huge structural change. >> you have an interest in all things german. >> i spent some time there, it is a problem. >> coming up, one of the best shows of the year for performance. we see if the grammys need more than just another trophy to take him.

>> we will take a look at some of the top headlines. waiting to hear the results of the meeting on ukraine between the leaders of russia, germany and france. angela merkel and francois hollande arrived in moscow today. they were expected to press

vladimir putin to live up to a cease-fire. russia could take more sanctions if it does not. australia's prime minister tony abbott is fighting for his political life. liberal colleagues are concerned about his leadership style. some are seeking his ouster. getting slammed over his decision to grant a knighthood to queen elizabeth's has been. brazilian courts seizing assets of eike batista. >> the biggest night in music. coming up in two days, the grammy awards will be airing on cbs sunday night. generally the second-most watched awards broadcast after the oscars. some artists going head-to-head for album of the year are beyonce, pharrell sam smith and ed sheeran. what is the value of taking home

a grammy? billboard.com editor with us. what are the impacts? >> the grammys are called the biggest night in music for good reason. 28 point 5 million people watched last year. a lot of those people are casual music fans. it is a great night to catch up with superstars like madonna and people who have been performing. for new artists like sam smith or megan trainor, having your name even mentioned can have huge payoffs. >> who is it more valuable for? madonna to be mentioned next to megan trainor or megan trainor for madonna? >> there is value to both. if you are a new artist, getting exposure to that audience is huge. taylor swift won album of the

year in 2010 for "fearless." per fees increased 380% after that. life performance fees. it is hard to quantify how much winning a grammy will relate. what i can tell you is that the album sales for "fearless" increased 58% the week after the grammys. >> do you know what it would cost to hire taylor swift to play at my sweet 16. >> more money than i have. >> is it more than $1 million? >> it is saudi prints money. >> depends how long you want her to play. if you have the money you can get anybody. >> z value of performing at the grammys? if i and a manager?, is that what i want? >> you get to show what you have to the audience. >> unless you flop.

>> most artists do a good job. that is the reason why you have a slew of people who are not even nominated that are performing. you have rihanna with paul mccartney and kanye west. >> i love the new song. it is not on spotify. >> keep your fingers crossed. >> i love that song. >> there was a time when the idea of winning a grammy was a joke. it was a punchline on "the simpson's." when did this change? >> there has been a history saying that the grammys were out of touch with popular music. i think that has changed in a lot of people in the voting committee are people who are in the field, they know the people that are pushing the boundaries and making good music. i think the winners and nominees that you have seen recently are the people who are the taste makers. they are the best in music.

someone like sam smith come at this time last year no one knew his name. now he is nominated for six awards for the top categories. >> have the judges changed? >> there's turnover for the judges every year. the judges we had this year are people who are in touch with what is going on and that is being reflected in the nominees. >> when did they start getting the performance right? when do you remember thinking that is the right method, i want to watch that every year. >> for me it was about six or seven years ago. it has been in the recent past. >> madonna made out with britney spears? >> that was the vma's. >> a year etched in stephanie ruhle's memory. >> there are 12 awards and it is a 3.5 hour show, and award every 20 minutes. the grammys have turned into a variety show. winning an award is nice but it is about showcasing what has been going on in music. >> is that why ratings have gone

up? the oscars are going in the opposite direction. there are so many awards and the speeches are so long and boring. as you said, the grammys is entertaining. >> that is one of the reasons. people like to hear live music. when you can half performances, especially collaborations you hardly ever get to see the really amazing collaborations that people will be talking about on monday -- >> ziggy marley and rihanna. >> they played a couple years ago. that was great. i think you will enjoy what she has this year. >> what do you think about paul mccartney and madonna on the stage in these collaborations with younger artists? it broke my heart when kanye west fans did not know who paul mccartney was. >> that was a joke on the internet for a while. i think it shows that madonna and paul mccartney, they have made their career about staying in touch with popular music and

keeping into what is happening. madonna has built her entire career on that. paul mccartney has worked with kanye west on other songs. i think they want to stay on the pulse and the grammys are a great way of doing that. >> i wish he would stop wearing that grill. dilbert.com editor tye. we will be back in a few. ♪

>> time for the yearbook game. a billionaire who graduated in

1971. this is easy. twitter and a bloomberg terminal were en fuego. >> paul allen. >> there you go. >> honestly billionaire, seattle -- it felt pretty obvious and pretty clear immediately. the picture -- >> pretty similar. it lets take a look at another photo that we found. paul and bill gates. bill gates looks like cory johnson. >> they met at the computer club in lakeside high school when bill gates was 12 years old. paul allen was 14. they both dropped out of college because computers were awesome. >> destined for greatness. our winner on twitter, here you go. how do i say this? >> "market makers" the only

commander here is paul allen. >> paul allen so rich even when he could not get a license to land his helicopter outside of seattle, he had a boat constructed that is a helicopter landing pad. you can see it on google maps. >> that is rich. that will close the day on "market makers." it is freezing outside. have a good weekend. i am going to be upstate. >> i'm going to be sleeping. >> i will not. that is going to wrap a up. thank you for joining me. erik schatzker will not be here next week. who is going to be her? i do not think they will let me ride solo. thank you for watching me. out to the newsroom, scarlet fu

has more the cousins is 56 past the hour. bloomberg is "on the markets." >> you forgot to mention paul allen is sad because the seahawks did not win the super bowl. more than three hours after the january jobs report, employers in the u.s. adding more jobs than forecast in january. workers earning just as well but a fairly muted reaction inequities. dow up 38 points. the vix at 16.5, treasuries are lower. higher yields ahead of atlanta fed president janice lockhart's speech. scott, is fed speak going to trump the jobs report? >> it is really a good thing that we are finally getting back in sync. some good news in the market reacts in a positive way. the jobs report comes with so many questions about revision

and temporary jobs the fed speech is what is in focus. >> the speech coming up at 12:45. we will have full coverage. you are playing on the record volatility in oil prices. oil has been up and down the last couple weeks. what is your trade? >> it is unbelievable comedy volatility. this is in u.s. oil etf. this is playing off of big trading volatility. i want to sell the 18.5 put of next week and sell the 20 call. i can do that for $.85. what is happening, if u.s. -- uso goes down to 17.75, that is where i get long. if it pops back up to 20.70, i

short it. those are the two areas long and short where it has been trading volatile over the last couple weeks. playing options, using these options -- that gets me in the position i want to get in. this is a trade that will expire at the end of next week and i love it for $.85 i can collect. >> a short-term trade for us. thank you for joining us for today's options insight. "money clip" is next. we will have coverage of dennis lockhart's speech if he does move the markets. ♪

pimm: welcome to "money clip." we bring together the best stories, interviews and video in business news. diplomacy at work on ukraine. merkel holland and putin meet in moscow for talks. the hack into anthem is as much about your social security as espionage. tiger woods drops out of the farmers insurance open, the golf industry weeps. it is the 57th annual grammy awards on sunday. in wildcar