♪ >> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> greases request -- greece's request for more eurozone aid doesn't meet the euro zone conditions. we will talk to a developer with a multibillion-dollar portfolio. he cuts prices and steals customers away from the other guys. when will john ledger deliver more earnings? we will ask him. good morning, everybody. like so many others stephanie is under the weather. let's start with breaking economic news. there are two big data points that have just crossed.

alix steel is in the newsroom. the philly fed index. >> this came in below estimates coming in at 5.2. almost cut in half. it is also lower than read for january which came in at 6.3. we have seen a pretty genetic two months in the philly fed index. the reason why this important is that they get new. the new orders at the index did come in light at about 5.4. the slide is continuing, new orders. we've seen more jobs and falling

oil prices. let's turn to the biggest corporate story of the day. there's abuses and that they live on their starvation wages. starting in april, workers will be able to dollars an hour. this will affect half an hour people. >> the company says that it will be raising wages. $10 an hour starting next february. it is moving this further increasing.

it has pushed for higher wages. that has been working problem. walmart saying that two and a half weeks, they will know what the schedules are. the currency headwinds.

this started in the 1980's. worked its way through the company. he wrote to employees when i wrote an talk to you. the main thing i hear is that you want more opportunity. we all know that it is not just a public relations problem. this is up to par. things have been out of stock. if you want help on the floor you don't get it. the idea here is that you get good pr by raising the wages. they also improve the customer experience because the employees are happier. at least that is the ideal scenario. >> what is it going to cost walmart to do this and how does this affect what it is telling investors it can deliver in the

way of the bottom line? >> it will cost a billion dollars for the company in the coming years. that is one of the reasons that it cut its forecast. they cut into the forecast compared to what analysts had been estimating. the other two reasons that it came out with that forecast is because of currencies. that is a big deal for walmart. also because of the incremental investments it is making in e-commerce. that is something they have really emphasized. >> about $.20 a year. they broke it down. >> just to put that in perspective. in 2000, fiscal 2016, they were expected to make five dollars and $.19. the increase in pay is wiping out earnings. >> potentially, if workers are loyal and they are actually

stocking the shelves better, that could reverse the trend. >> that is the long-term goal here that walmart is looking at. yes, in the short term it will go ahead. it can improve customer service etc.. this will come through the bottom line. >> the dollar $.75 more than the federally mandated minimum. >> they expanded to the gap. they have not said how much they are picking. >> we await more details. julie hyman with the latest. raising paid to nine dollars in april. half a million people by next february. germany has rejected greases latest request to extend its bailout which is scheduled to expire in less than two weeks.

the new greek government wants fewer strings attached. the greeks must abide by the terms of the original agreement. hans nichols was in berlin. it seemed as though yesterday we were talking only about semantics. perhaps not any longer. >> we have a real disagreement. this is the attempt by greece to get bridge financing. they have always said that bridge financing is off the table. the current ecb program and's at the end of the month. if they successfully complete that and stay within the condition, then they can get more money. what they try to do is to fudge these details and try to have ridge financing until june when they have a total renegotiation. we have a meeting in brussels.

>> what happens if there is no deal but is that game over? >> the multi-finance minister who was hard of these discussions, once you had to fault. they are not exactly making the nexus. once you have a default, things will change radically. the real deadline is the and of this month. after that, parliament goes home. if you are going to noodle, tweak at all. these to be ratified an extension. the real answer is yes, they have said friday is the deadline. there is little bit of give in there because you do have the big deadline which is thursday when parliaments leaves town. >> there has been a lot of extreme rhetoric. when i look at the bond market it is not reacting very extremely. i'm not seeing the wheels flying

off the handle. >> well, there are two reasons. the market might be off on this and they might be more hopeful for compromise. the bond market, this is less so with the three year. most of the debt is held by government and it is not really trading that much. not that much is publicly traded. it hasn't been a great indicator. the other might be the athens index. this is down but it is not down disastrously. the market might be more optimistic than political leaders here because it hasn't been a massive selloff. >> i was talking to a banker yesterday who claims to be close to angela merkel. he told me that merkel is simply fed up and the kind of thing we are seeing from germany is anything but posturing. this is germany's position.

germany will not cave in to greece. this is not a negotiation. what are you hearing? >> i hate to say this, but you are well sourced. clearly the view in merkel's party. was given the speech. it was not so the critical but the crowd and the mood was very frustrated with greece. things seem to have shifted maybe six weeks ago, maybe even a month ago where germany started to envision what europe would look like without greece and there is a great deal of frustration. you look at the rhetoric out of athens. athens isn't making it any easier for germany to climb down. you had that attack in parliament. talking about him, naming him by name. he is had a newspaper organization which was very close to the party make some pretty ugly cartoons.

now the party has distanced itself from that. the rhetoric has been pretty ugly. from the german side, it has been pretty consistent. the idea that there's frustration, it is not really a secret, it is pretty well known in germany. >> i'm shocked to find gambling. >> time for a real feed. >> the cost of going green. big corporations are finding out it is not cheap or easy.

>> now for some of the top headlines from around the world. some rare transparency from the ecb. they have released minutes from last month policy makers meeting. it is the first time they have done that. most bankers thought that defined government that was the only option big enough to fight deflation. in japan, the benchmark rose to its highest level in almost 15 years. japanese banks rose, so did sony. japan's exports are growing in the fastest pace in a year. samsung getting into the mobile payment game. a massachusetts company that makes smartphone accessory sees with credit card payment devices. >> the developers behind the sony building.

they plan to list one of their condos for a cool $150 million. $20 million then the next most expensive condo. it is an eight bedroom, eight bathroom, 25,000 triplex. this says something about demand for luxury property in new york city. the privately held real estate investor and developer with major projects here in new york and washington, philadelphia boston.

units. just a shade over hundred million. there is, there has been a tremendous demand for luxury real estate in the global market. you look at what has happened in london, what is happening in new york, miami, foreign investors have been buying here because it is a safe haven for their money and they can use real estate as opposed to putting her money and a swiss bank account. >> are we heading towards a bubble? this is not being financed with borrowed money? are we in a bubble? >> well, we are in an environment where we have seen rapid appreciation. what we have seen in the last year to 18 months we have seen six years of real estate appreciation happen all at once because basically the market plummeted in 2008 and it did not get into a recovery until 2013.

what we have seen is this rapid appreciation which is not sustainable. there is not a very broad universe of people who are out here buying $100 million condos. you look at the building with the $100 million sale took place, i don't believe they had a sale, a new contract for a single unit in that building between october and december 31. so, there is just not that demand for that many. >> what does not sustainable or it has to slow down mean? their arch twice the number of ultra high-end developments underway in new york city, most of them that was show people clustered around the south end of central park but there is one downtown, as you can see. what is the future for these buildings? developers like yourself have put billions of dollars, are putting billions of dollars into

the developments. >> we bought the new york life insurance companies headquarters and that is a 400,000 square foot building. we would be priced around the high price per square foot. the market is local, domestic buyers. mainly new yorkers who live and work in the city. what you see is these buyers are going after repeat buyers. they are looking for foreign buyers and those who live outside of new york city who want in town residents. and there is a shrinking universe of these super high-end buyers in addition to just the instability of what is happening in russia the rapid decline of the euro compared to the dollar. you are also seeing for the first time more transparency about who is buying it. the new york times did a series

on the aol time warner center. these malaysian, chinese buyers who all thought that they were buying real estate quietly. i think that that is going to have a significant impact and probably the catalyst for more transparency in real estate ownership. >> is that a good thing? >> no. >> it was like a swiss take account. you could buy the real estate privacy, you could sneak in and use it on occasion or if you had a kid in college, you could let them live in an $80 million condo, park your money, and then sell it. >> for every billionaire that is not want to be unmasked, there is a new billionaire that is being created. you have a lot of people that are getting more and more wealth because of stimulus plans. couldn't that upset this? >> i think you look at how

people value the money but look at who buys. if you look at who is buying these luxury top price numbers the record before. this sold for 80 $9 million and was $13,000 a square foot. it was bought by russian billionaire for his daughter to use was she was in the city. how many will buy it at a better price and not care? there are some but there are a lot of buildings competing. developers are going to have to look at that. i would not be surprised to see some of these big buildings, the units being shrunk. or, we need a $150 million price for the sony building. >> is just a cooling are we heading for crash?

>> we were basically, the market was submerged underwater. you are taking and air if limit small. that is what happens here. you have a much calmer and level of appreciation. they were the only game in town. that is because they sold. now, these buyers have lots of choices. never did they have those kind of choices. greater supply. the demand is not going to escalate much further. >> for workforce housing, for luxury housing, for domestic and

local buyers, absolutely. it is the greatest market in the country and one of the greatest markets in the world. i think if we can put things on the market at that 3000 square foot or less pricing, there is a tremendous demand for that. and then, rental housing. today's buyers, the younger generation that is emerging they don't have the same association with homeownership that my generation did. >> hold it right there and take a break. don peebles sticking with us.

>> hillary clinton perhaps elizabeth warren.

a top democratic donor staying with us to the other side this break.

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> it is time for the bulletin. the top business stories of the morning. germany has rejected greases bid . they want to get financing without sticking to the terms of its existing bailout. greece wants euro area editors to ease off on the restrictions. the european finance ministers will discuss this proposal tomorrow. shares of t-mobile are rising.

they posted fourth-quarter revenue and earnings that beat analyst estimates. t-mobile can thank major discounts. we will be talking to john ledger. the white house top economist says that they will keep the u.s. economy on a roll. the impact of oil's cut will offset of the slowdown. the new white house economic reports that the u.s. is poised for another good year. they will have $2 billion in net revenue. huber is currently raising money. >> we are back now with don peebles, a real estate dollar per. he is obviously an active

political fundraiser and supporter. let's start the part of the conversation with a simple question. who is in charge of the democratic party? >> barack obama. he considers him the quarterback and he will be handing off the wall to hillary clinton. they will have all of the players on the offensive line block. they will have the pathway to the democratic nomination and she will be the democratic nominee for president. >> will it be as easy for hillary to win the nomination as some people think? >> right now, with the players in the landscape the way it is yes. there is no buddy that people are super excited about. >> what about the undercurrent of populism today? walmart has announced that they are raising wages for employees to nine dollars an hour, hourly

salaried employees. this year, $10 an hour. people continued to complain about the growing inequality problem and they look to the democratic party to do something about that. is hillary clinton going to be doing something about this? >> i would anticipated continuing and creating an environment of opportunity. pulling from the wealthy which we hear a lot of. hillary clinton will try to create an environment for greater opportunity. pulling up from the bottom. that is where she will gain some strength. she is a transformational candidate. she will be transformational. that will give her a lot of

tailwind to get to the nomination process. i thought the only person that was capable of challenging her from the area you just laid out there would have been martin o'malley. >> what about elizabeth warren? how do she play into this? >> i don't think she has a choice. i don't think she has the financial capability to raise money and financially compete. she is not a broadly energizing candidate. she is not one that people feel could win. hillary clinton, not to say that she doesn't have some challenges. >> you do a lot of business in florida, you are very active in miami. what can you tell us about jeb bush? >> jeb bush was an excellent governor. he took the state through some difficult times economically.

he focused on improving public education and made some slides doing that. he was a conservative governor and he butted heads in some regards with some of the minority community in terms of business opportunities. all in all he was an outstanding governor in terms of taking the state through a difficult time and helping the state of florida probably expand its authority. he was able to win twice. i think he would be very difficult to beat in a presidential race in florida. >> what is the most difficult issue going to be for the democratic party? immigration, isis? >> economic opportunity. that we see in new york city and the entire country and the widening disparity of economic success.

the bottom is expanding and size and the whole is getting deeper. historically over the last five cycles. it relies heavily on expanding voters. the effort for the agenda of the democratic party has advanced and it is not been effective. obama has historic support. >> you are a wealthy man and if things continue, you will be a billionaire before long. to people who have this much money as you or more understand the problems, and situation that you have just articulated? >> no, i don't think they do. they tend to be myopically focused in terms of advancing the goals of their company and

their business agenda. a big part of our business agenda going for it is going to have to be creating an environment of opportunity. the american dream is to be accessible for all americans. >> what if that doesn't happen? >> he will see a shift ultimately in politics. bill de blasio, who i supported for mayor was expected to be a transformational mayor. he spoke about wealth, inequality and lack of opportunity. he was the most liberal and he won overwhelmingly. people have said ok, we cannot continue to live like this and we want better opportunities. that ultimately happens in national politics but we will not see that happening until another few presidential cycles. >> well, thanks to don peebles chairman and ceo of the peebles corporation.

>> what is the outlook for 2015?

>> it is time for some of the top headlines from around the world. the cease-fire appears to exist in name only. the government says russian rebels continue to show its troops in the eastern part of the country. ukrainian troops have given up a strategic crossroads. here is ukraine's president. >> russian backed rebels and russian military forces did not keep to the cease-fire. the biggest concentration of shelling was in sector see. >> he wants united nations to send in peacekeepers. libya wants more firepower to fight islamic state militants. they have list the security council to lift an arms embargo.

libyan militants released a video showing the murder of 21 egyptian christians. more purchase might be on the way north korea. kim jong-un has ordered party leaders to carry out a campaign against abuse and corruption. he reportedly executed a general who disagreed with him. if you invested in the missable bond market, chances are you did pretty well. it is one of the top performing asset classes in 2014. you heard about some of the long-term problems plaguing muniz. who would know better than peter hayes, he is head of missile bonds at blackrock, the world's largest asset manager. good morning. >> why don't we start with puerto rico? >> a good place to start. i think you have heard us talk about in the past that they have some big structural problems.

they have a lot of debt it is an economy that is not growing. typically there is only two ways, one is to grow your way out and the other is to restructure. at some point, they've got to understate undertake some kind of restructuring. there's a lot of volatility. taking a lot of steps to try to avoid that, a lot of headlines to come. >> how to they restructure. a judge has ruled invalid the recovery act that puerto rico past, it would have created some kind of insolvency or bankruptcy protection for puerto rican entities. now, there is a congressman who was trying to introduce chapter nine type legislation in congress, absent the recovery act and if this bill doesn't get passed in congress, how does puerto rico do it? >> that is a very good question, something we have asked ourselves certainly prior to the introduction or passage of the recovery act on the island last

june and now that has been overturned by a local court. it remains to be seen. that decision will be appealed at some point. it remains to be seen whether they can amend the existing chapter nine bankruptcy law to include all of the entities on puerto rico except for the general obligation. i think that would give a certain amount of predictability to what might happen ultimately but that is the big question how do they do that could a receiver be appointed, if that is one way they could do it, too say they are insolvent, that they cannot pay their debt? they would have to be appointed but that creates a lot of complexity. >> if this bill introduced by the congressman will be passed it requires the support of congress which has not been able to get a home month done as of late. what chances would you give that bill to passing? >> that is another very good question. the fact they have such a difficult time getting other

initiatives done, it remains to be seen, we have heard that one party is imposed, one party is in favor of it. it does at least alleviate the problem where if they do need to restructure they would have to come to the federal government the treasury and look for some type of bailout. this gives them a better option. the hope is that congress will view that as perhaps the path of least resistance and pass the bill but right now i would say does not much better than 50%. >> do you support it? >> on the one hand, as bondholders of any type of debt, you don't like to see the rules of the game change. it is important for better rico to have this mechanism, it does create a more predictable path down the road. >> missable bonds are headed for their worst monthly loss since 2013, to think this is the beginning of a sustained decline for municipal debt and will this make it harder for me is about is to raise capital?

>> i don't. i think that it is a bit of a selloff in volatility which is really ultimately creates value for the shareholder. i don't think it is indicative of broader problems in the market. we had 12 months of positive returns january, 2015, positive returns. we were due for selloff, we have given back about one .2% of the returns we have gotten so far this year, we expected coming off a good 2014 a more needed return and when we saw the rope us january, we said, how we going to get there and that will be indicative of the missable market but fixed income market in general. it will be a year of volatility. >> how concerned are you about public tension plans and what they have been investing in. they have been investing in a lot of in liquid stuff in the search for yields? do you see something happen

worthy investors corp. and they are difficult for pensions to keep financing their obligations. i think that has been a big problem over the last 15 or 20 years. they have these very robust return assumptions that they have built into their models in terms of how they will pay pensioners longer-term and given the volatility of the markets in general, they haven't met those returns, the whole gets bigger and when the whole gets bigger they do reach for more risky investments, as you said and that actually creates a problem because they don't always work out. we do think in terms of the market, the big problem is really the pension problem, the fact that it is crowding out the big opportunity and that is infrastructure spending that everyone wants to do. the pension issue has to get solved, it is a long-term liability, something we talked about and that we knew was there. now we are getting a lot more worried about it because liability is getting shorter and

shorter. this will be a big differentiator in the market. >> long-term issues become a short-term problems. we look forward to talking to you soon. >> coming up corporate consciences. how companies can do good while still doing well.

>> it is an old debate, how to balance being green with making green. our next guest says it should not matter. he is the cofounder of seven generation which sells cleaning and personal care products. he founded the american sustainable business council whose members include other companies that emphasize their environmental credentials. welcome. is it compatible? can a company benefit its shareholders also trying to

help out the environment? >> absolutely. one great measurement is every year there is a list of the best companies to work for which is one measurement of their concern. those companies have over the last 10-15 years outperformed most financial indexes. not only is it not going to hurt you but as the american standard business council has demonstrated, we have about 200,000 businesses that are members those companies are doing great their copies you know organic valleys, ben & jerry's. >> for all of the companies that you just named and your own being environmentally socially conscious is part of their dna, that is how they started. is not quite the same for many many other companies out there

including a very large number of public companies. this is from a member of the board of directors of the container store and this is a person who believes in the stuff . he says being public mixed practicing conscious capitalism a little bit more challenging. if you believe as the ceo for as the chairman of the board that a public companies maximizes value for shareholders, how do you reconcile that? >> personally, i don't accept that that is the mission that a ceo should take. it is dangerous to be single-mindedly focused on just maximizing shareholder return. >> why? >> because you have to be concerned about your customers, you have to be concerned about your other stakeholders in your committees and the up session make money in the short term is an outdated mode for businesses. >> to believe that's why duck

macmillan is racing pay for half a million workers today? perhaps you've seen the news? the hourly pay will go up to a of nine dollars and $10 an hour. >> is a step in the right direction. you should leave a lot higher. you cannot exist in this world being a bad actor. >> are you saying that sustainability is not compatible with traditional concepts of capitalism? >> i think traditional concepts of capitalism are changing and what was required to be successful in the past is not what was required to be successful in the future. we of got problems. climate change is threatening our future. we have one out of six people collecting food stamps because they cannot survive. we have 2 million kids who are homeless. we have problems and it is the responsibility of business to

work with government to address those problems. >> how do you measure it in a way that shareholders will board? a measure of success is earning per share growth. shareholders can see that their growing and if they like that trend, they think it will continue growing, they will prepare. >> there is great companies like whole foods and the container store. yes, it is difficult but they are doing it, they are succeeding and they have been very attractive investments. >> how do you think that the oil products us is will continue? will it make it more tracked for companies go back to some kind of friendly business practice because it is cheaper. >> it is a double edge sword. it is showing us some fundamental weaknesses long-term

about the energy sector. i think that we are going to see not just lower prices that all kinds of problems because these energy companies have on their balance sheet hundreds of energy -- tons of energy that they will never be able to bring to the market. that will hurt that sector. the truth is, it makes it more complicated to compete with renewables when oil goes to $50 a barrel or lower. >> your group, you see this as a rival to the chamber of commerce? >> it is a rival and some days i think that everything the chamber believes in, we are on the other side of the equation. putting a carbon tax family leave as a requirement, raising the minimum wage, taxes. >> described him in one word? >> i don't want to get myself in

trouble but it wouldn't be flattering. >> thank you very much.

>> live from bloomberg headquarters in new york this is market makers with eric chapter in stephanie will. erik: t-mobile promises this year it will overtake sprint in the battle for wireless customers. in just a few moments you will hear from john ledger, the ceo. customers flocked to mcdonald's. they are bringing back to contenders. zuckerberg says at his plans to extend internet service will be great for business. this is "market makers" i am eric schatzker.

>> i am brendan in for stephanie will. i am delighted to have you with john ledger spoken up. -- coming up. erik: weekly crude inventory data is out. julie hyman has more. julie: the 12th consecutive week we have seen an increase in inventory. it is a bigger increase than anticipated. only 3 million barrels was what analysts were looking for. the chart we have seen over the past several weeks. why this is significant is everyone was assuming we would see more cuts in crude production with prices heading lower over longer-term. that does not seem to be happening. even know we have been hearing accounts have been following and from eog resources saying they

will not be a growing production. if you look at oil prices, even though we have a building inventories, oil prices are declining. we see a leg of oil in wti. it is a little curious as we get a bigger than anticipated build. that is where we are. erik: julie, thank you. the latest on crude inventory is important for falling oil prices. lyndon: -- brendan: germany says no for an extension of greece's aid program. greece wants euro area creditors to ease out on some of the bailout restrictions. european finance ministers will discuss the basel tomorrow. a high can pay for workers at walmart. in april they will pay 500,000 entry-level workers nine dollars an hour.

$1.75 above normal. it will arrive at $10 an hour next year. traders do not have much confidence in sears. that indicates traders indicated a fall or some other event in the near term. eddie lampert has been trying to revive sears for a decade. erik: corporate america has shrugged off the impact of the affordable care act. we interviewed executives and found obamacare is putting such a small thin and corporate profits that it is being referred to as not significant. interest --pinterest wants to raise $500 million for investors . that would make it one of the most voluble venture back to startups in the world. if you are on twitter at 6:00 this morning it was hard to miss the tweet storm from jon, the

t-mobile ceo. he was shouting from the rooftops that his wireless company put up impressive growth numbers and increased revenue by 19%. 21% for 2014. his strategy impresses investors . the stock is already on a tear. it is up more than 4% today. these are questions from analyst this morning, and now it is brandon and my turn. john letter from the new york stock exchange. good morning. stephanie is out with the plague. brendan: i'm not stephanie, but i have been following your career for years. erik: why don't you unzip so we can see more pink. we don't have any pink in the shot.

john: i will send you some. erik: magenta chuck taylors? john: with the ceo on the side. erik: you said you would overtake sprint as the number three wireless carrier in the country. i want you to make a boulder prediction. what is the boldest prediction as to what will happen to t-mobile this year? john: i said subtly that we already passed them. i have been gracious. i'm not one to brag. i was subtly rolling that out. this is an important challenge. we just finished a great quarter.

the biggest growth here in the history of the company with 8.3 million additional customers. we took 100% of the phone that ads on the postpaid site on the whole industry. 2015 will be a big transformation of the year. at the end of the year we will have completed 3 million pops of lte and rapid deployment of the 700 band and the migration of the two g to 4g and preparing for low band spectrum options. together, you can envision the start up t-mobile will now be on the cusp of not only being the fastest-growing wireless company, which we already are but duplicating and exceeding any wireless footprint at&t or verizon have. i don't think they are prepared to think that way. erik: the last auction went for

$45 billion total. four times what anyone thought. how deep are your pockets? you need the low band spectrum. john: we bid in the auctions and spent 1.7 7 billion and got licenses in areas we needed. we had the biggest mid been spectrum portfolio of anyone going into the auction, so was an extremely important. what is happening in washington and the industry is what i would call auctions. this auction and the incentive auction in the low band spectrum. they wanted to fund raise for public safety aspects. they also wanted to ensure competition. and that is what this is. the competition will continue. erik: what are you willing to commit to the next round of auctions? john: should it happen

quickly or delayed? i say quickly and not delayed so the guys can reload. at&t and verizon will spend anything they have to to sweep the table and stop the kind of competition that comes with us. we are pushing washington to look at the auctions and create rules that set aside the ability for players like us to come in and not be pushed aside. if you like this competition, you have to keep it going. if you read the blog from yesterday i ask american consumers to look in and not let what happened in the mid-band auctions, where people in the industry controlled 93% of the output -- i don't care if it was 45 billion they would've spent with a needed to to clear the table. they will again if we do not stop it. brendan: you are talking to us and an audience at the fcc.

how do you -- you have to thread a fine needle. you are saying that you are bigger than sprint and you're one of the little guys and upstart. how long do you get to keep growing and sabean upstart? john: i do not thread needles. i am in your face. us and sprint are causing competition. we need sprint to continue aggressive behavior to stop these top two guys from being comfortable. i am speaking to the fcc and i have met with them personally. you cannot have an industry where you cannot consolidate and not allow smaller players to compete. there's a big agenda in washington that impacts us. i'm not waiting up flag and say give this i will not survive. we will be here, but if you want to see the game continue big

and bigger nervous, to continue, we need help. erik: you're getting help. they are being aggressive and t-mobile is being aggressive. how long can you be aggressive? how long can a price war continue? i don't need to point out that your revenues are up 19% in the fourth quarter 21% for the year. your adjustment a growing at a slower pace. you're not making any money. john: the adjustment in q4 year-over-year 41% is 30% sequential. $5.65 billion in 2000 14. we gave guidance of 6.8 to 7.2. that is the fastest growth of anyone. the big news out of the earnings is that this model is working.

it leads to growth and it leads to profitability and cash. you cannot compare our current situation to what is happening with sprint. they are attempting su survive. -- attempting to survive. 2.15 last year never was there a single week in the year that any carrier was positive with us. as sprint did we are having 4.6 to one. if they are gaining progress, it is not from us. i think the model scales, but spectrum is us care's commodity that we need support on. erik: they're asking the same question about t-mobile that they do about amazon. you are doing a great job of growing revenue and attracting customers but your margins are not improving and they are not that they could. when do you will need to deliver

operating leverage and deliver meaningful growth on the bottom line? john: i will give you a pass assuming you are a last-minute insertion. i will celebrate the first thing you said, that people are comparing us to amazon. two years ago when i started into this building -- strutted into this building, people were not comparing us to amazon. even though the margins are 30% up from 25%, we are the only carrier that expanded margins this year. from a standpoint of price pressure, it is only price pressure to use a war analogy if you are making excess profits at someone is bombing your factory. we are not competing on price we are competing on the carrier proposition. if you look at 2015, the margins are expanding. we have a value proposition

leading to growth and profitability and cash flow. brennan: i am the last minute insertion. here is what i want to talk about. you have been doing things other carriers are not. you initiate the pricing war, but have a new brand of competitors, the cable companies with fast networks announcing wi-fi phone plans. those are actual on carriers. how do you compete? john: we are not causing a price war. if you look at what we are doing -- brendan: you made the first move. john: we drove ours down by offering financing on devices. if you go from hours to the eip billing stream, our billing per user has never been higher. you have to change a you look at things.

unlike, big and bigger, i don't see the cable players as a threat. i don't see the adjacent industry players as a threat. i see them as a group of people trying to provide customers a set of services that are intersecting with the ones i offer. i see myself as a logical opportunity to partner with them in providing an intersecting capability. if you are a cable player, you cannot provide the full capability we provide. over time, you should look at us and them possibly intersecting to an entirely new set of services. one option of opportunity for my shareholders. one a standalone and one will grow. erik: it is great to have you. always entertaining. john legere the ceo of t-mobile. we will be holding you to the promise of magenta truck tailors. we will send you our sizes over twitter.

brendan: mcdonald's brings back an old favorite in the poultry industry couldn't be happier. ♪

erik: some of the top news headlines. the world's biggest maker of food and beverage. british scanmaker rexam. $6.8 billion. 17% premium to rexam's closing price yesterday. it bottles coca-cola and anheuser-busch. profit fell 15 percent at air france klm. it was hit hard by the longest pilot strike in history. overcapacity on routes to africa and asia held down ticket prices. nestle ceo says this was need to reconsider how to attract investments, because the country is losing its appeal.

he says the reason is the stronger swiss franc and upcoming curbs on immigration. bloomberg asked him about this whispering. >> we have productivity and out of our factories in switzerland. we have to see if we have been able to compensate productivity gains. the strength of the frank is what we are looking at to utilize -- minimize the latest impact the couple of weeks ago. erik: nestle has the lowest annual growth in five years. mcdonald's is going back to the future jumpstarting sales with poultry. the poultry industry is freaking out after a two-year absence with mcdonald's bringing back chicken tenders. that is great news for chicken farmers dealing with an oversupply. allen is our agricultural reporter joining us from washington. allen, mcdonald's is a huge

player in the industry. what happens for the entire industry would mcdonald's makes one choice to add a new menu item? allen: when you think about the market power fast food companies have it is amazing. mcdonald's is the number one buyer of potatoes. when they buy into a market in mass it changes the pricing. when they move into chicken tenders, called chicken selects, they are supporting poultry prices that have been in a funk because of oversupply. we've seen this from the companies before. if you want a indication of when the mcrib will come back on the market, when hog futures go down mcdonald's sees an opportunity to bring in a special product, like they are doing with the chicken selects. erik: you see it as taking advantage of a temporary

oversupply, no long-term effects? allen: they are adding capacity because of exports in global markets. the usda is saying a 4% jump in chicken broiler production. that is something that you take and add to the capacity that it organically grows with the business. their short-term relief for mcdonald's. we will see with the longer-term looks like. >> what is going on more broadly with poultry producers. there's a market incentive to produce in a completely different way to meet the demands of suppliers like chipotle. if you are a ticket producer you have to make a choice. produce in a way that allows me to sell to chipotle or allow me to meet the market demand for tysons or mcdonald's. allen: it is not just triple

play. animal welfare is a big deal for companies like mcdonald's. it is changing how chickens are produced. one company says they want it done to the certification and that makes a difference. i was talking to producers in pennsylvania talking about how their processes are changing. it ripples through the industry. brendan: deregulatory changes ripple through as well? allen says in california things with chicken and egg. regulation tends to respond to public pressure. corporate action is another extent of that. in some way corporations are leading in a way the government isn't. that is having the private marketplace changing chicken production practices without the government stepping in. brendan: how much power does mcdonald's have over the price of the chicken tenders? there's an oversupply situation,

so mcdonald's will take some supply out. is mcdonald's exposing itself to the higher price of chicken? allen: they would be if they continued buying for this. it could be a limited time offer . you take it vantage as best you can. when the supply is rectified that goes away. it is not just mcdonald's, china does this in commodities market all the time. >> is there any sense that mcdonald's is considering changing the way it demands -- the demands it makes on chicken producers. using its pricing power to change the way they produce. or is that not in the cards for mcdonald's? allen: mcdonald's is already taking action and you can expect more in the future. "market makers" will be back in a moment. stick around. ♪

>> this is "market makers" with erik schatzker and stephanie rule. >> this is "market makers" with erik schatzker. >> we're going to go to our senior markets supervisor julie hyman. >> yes. as you know it was a very dramatic day when you found europe's -- saying the greek offer didn't meet the condition for continuing aid, so a

dramatic move also created a dramatic move in the markets. if you look at the intraday move you can see it clearly, that drop. however, it was not enough to totally squelch the gain for the day. looks like investors still hopeful there will be a last-minute compromise and the e.u. officials, if you look at the manage to finish higher. still finishing up 567. if you look at the greek 10-year, we also saw some movement there but sort of came-round trip. if you looked at the averages, you saw similar moves in terms of seeing that big movement downward when those german headlines crossed but still managed to hold on to gains by the end of the day. >> so we're finding out that

european markets are sort of waiting for big news because little news doesn't matter anymore. >> in the meantime mark zuckerberg says internet.org is not his plan to just integrate the internet for the world but he talked with emily change in her exclusive interview. take a look. >> how will you judge that this has been a success? and 10 years ago your vision was to get a billion people on facebook and many people thought that was so audacious and now it's the world. if that's not audacious, what is it? >> well, the goal here so make it so that a person can walk into a store and basically any developing country and buy a phone and get access to some free basic internet services. that's the primary goal for

people around the world. once we have managed to have a system working in every country. that's step one. step two is having people use it which will be our own -- we have to figure out what makes it a profitable thing for the whole international operator community. because that's how you make this sustainable. it's not something that's just charity for operators around the world. it will work if providing free basic services ends up being a way to end up with more paying customers and they can invest and build faster networks and reach more people. the society we are in suggests both of those things are going to be true and that's what i look for inthat, and if a

billion more people can get connected, that's going to be a huge win for all these people who will now have access to tools they didn't have before. >> you said you hope for more than a billion people by 2020. do you think you can get there? >> well see. tune into the p with c.e.o. mark zucker pittsburgh on a special edition of studio 10. when you look at plans of internet access around the wormed where services liability up is with a big fiber optic -- there's no way you can get around that with drones or balloons and that's not something facebook can really affect like -- affect

that. what they need is a band width. and you can't do it with balloons. you have to do it by taking away one. -- i would say that would be an amazing plan. >> mark zuckerberg? are you listen to that? >> yes. >> we'll talk about the c.e.o. frank of first data.

erik: the credit card business is getting more cut throat. looge at what costco just did, dropping american express as their exclusive card holder. they asked why are we paying fat fees to credit card commerce? costco wants a better deal. that's before we fold in and

first data was one of the large e -- largest. >> changing landscape and a lot of innovation and opportunities. erik: changing landscape does that mean less profitable? >> no. i think it's about bringing more to the client. ultimately this is always about the client. and the client in many cases is the consumer. so i think it's how we bring choice to the the consumer and the merchant. how we grew merchants among business. erik: what is that transition costing you? >> well, i think this transition is an opportunity to

grow with our clients. we issued 25 million cards last year. we're going to issue 100 million-plus this year. we have a partnership with the world leading chip maker. we're the world leading financial institution distributer. we built all that in the last year. we built a terminal and a p.o.s. system that's encrypted and enabled. erik: clover. >> that's right. erik: about how many of those have you sold? >> well, about 50,000. will congresswoman -- you mentioned the word encrypted. one of the problems with the point of sale units in the home depot hack was that they were software defined and thus easily hackible. cove is soft wear confident.

>> trance armor is a product that we have which is an encryption product that's industry standard and it really, really secures the environment. use that encryption. you use a chip in pin card. you see a much more secure environment. erik: the merchants are in a -- i wouldn't call it a life and death struggle but it's certainly a struggle for them. they want more value out of the relationship which they feel like they are giving away too much to the merchants? >> i diehl deal with the small to medium. >> we have very large clients and we like to think of them all. i really believe in this in

new era of innovation and i think it's fabulous that someone at one point that looked at it as a back-end process is now looking at it as a front-forward company in payments. i really think the opportunity sits in bringing more information about the client to the her chant. >> i actually think we're in business to help grow business. and that's really the objective. and we're in business and have tools to do this. could change the experience between the end consumer and the merchant. improv it. udge see it in products like our virtual gift product. which is unparalleled. these moves, encryptions within the point of sale. chip in pin. it took so long for the when i

got to date evidence i think in some places we're in the middle of it. if you have 6 million merchants globally, 400 in the u.s. and 800 cards and you don't have the technology, you may be in the middle of it. we changed our attitude. the minute we got there we adopted e.m.v. and were going way before these heart attacks were as pronounced as they were. erik: frank, last time i checked in with you, where are you at now? frank: significantly more than that. we have been cautious about talking about the apple pay numbers. erik: why? frank: i just think people look at it. erik: it's ushering a

revolution that you're going to benefit the from which is why everybody is going to have a house that we have enabled millions of cards. and we've enabled the merchants. and we see expo innocencal traffic from what we first saw. erik: now at the outset one of the largest leverage buyouts of all time and a tough foil sexual other from your private equity what about seven years? frank: yes. 20 quarters or so. erik: i'm sure that's your objective. frank: what i said when we got to the company was we are here to make a great company. building the i.p.o. is not. erik: wait a minute. the i.p.o. is the most

leveraged equity. >> i think if you look at kendrick perkins, they put frank: we're way better prepared than we were a year and a half ago. erik: thank you frank from the first data corporation. >> some of the headlines around the world that the hour. the ukraine. looks shakier by the hour. meanwhile ukrainian troops have given up a crossroads town to the rebels. the president you shiancoe wants the u.n. to send peace keepers. kim jong you know has order a

death. and sounds like a travel agent's pitch. book your vacation to venezuela now, because prices like these can't last. the exchange rate went from 50 but vars to a dollar. a domestic flight costs $7 and a big mack in venezuela, 92 cents. more market makers is coming up next. ♪

>> ok erik, we look like we have something out of per lynn, the german finance ministry said the proposal from greece is dead on arrival. what we are looking at just now from in and out of our berlin bureau sthaze in fact the german finance ministry will take this new draft from greece and regard it as -- erik: an

application for an extension for the bailout. >> yes. i have a theory about this, which is that we have seen what we know of the draft coming out of depreast they basically say, we'll do everything. we're not going to ask for a haircut, loan extensions. please don't make us hold a primary surplus of 4.5%. erik: in other words, just give us some fiscal breathing room. >> yes. and we heard a, no. erik: that was from shoible? >> no. but a.f.c. an official statement out of the finance ministry. what it's looking like now is perhaps they will take a look at this new draft -- not based on reporting but living as a --

to put that number is 3er spective, very few countries can hold on to a primary -- this is -- this kind of austerity is almost unprecedented, even in really good times, now is not good times for greece. erik: that makes perfect sense. i don't doubt for a moment our reporting. but it does make me wonder speaking, given the fact we do to government officials on a background basis whether everybody in the german camp is singing from the same song sheet. >> i actually agree with you. sometimes i wonder if there's either that going on, which we heard from berlin there was a threek bloomberg news saying we'll cave a loyalty from the 4.5% maybe. i think the german finance minister plays bad cop. he looks so mean. his statement is so mean but

then a ray of light, shall we say between the greek and we'll be back with more "market makers" after the short break. ♪

erik: that's it for "market makers." brendan thank you very much for joining me.

brendan: i'm no stephanie rule, but thank you. erik: jay walker also has more patents than just about anybody we know. he is going to tell us about his new product that could revolution nice the patent industry. 125eu tuned for that tomorrow. it's 56 fast hour meaning we're taking you on the markets. here's julie hyman. >> julie: the dow earlier fell. part of the energy and the rep -- joining me for today's oppingtses insider is the strategist and we had a little bit of economic data today. you have been watching the trend in economic data. and you ever not reading it positively. >> it's part of the same string of bad news we got in retail

sales over the last months. i think the reason the market hasn't rea acted as strongly is that investors realize reasonable trend and what we are seeing from economic agencies. when you combine that with the weather, i think it's another reason to wait. julie:and reason to wait. garmin fell sharply after bank of america given the drought, found this was a good opportunity. what are we -- usually if you hear of a stock that's down 4%, you're going to see everyone scrambling. they were -- in fact in

volatility the options fell. pretty dramatic spike lower after the news was out. one thing i would note is that in garmin february earnings, it moved about this much but to the upside and probably why we didn't see all that. julie: and we are going see increased stock from here? jarrett: yes. and a lot of bigging stocks that tend to support that process. julyy: and you --jared: earnings, consumption around the world is weag. the u.s. consumer is pretty

amazing. so we have been looking for ways to buy companies that have mostly all often their revenue coming from the u.s. and very little exposure from around the world. with option inexpensive, we're looking at buying the may 60 calls and you can pit reasonably about -- it's about three times up side maximum possible return. and i thought we would look out in may, because it gives it time to work work and get confirmation in the trend and economic data. i think when you combine that with the rising trend in wages. they will be soft from wal-mart today. there's a good story about strength in the u.s. for workers. but you have to be tactical. julie: it seems whole foods would be keeping up the gross

momentum, especially at a time when stock is priced 30 times the estimated earnings. jared: that's why i say treating this as a calls spread, you can reduce the risk in the trade and avoid too much exposure. >> all right. thank you for joining us. appreciate it. that's it for "on the markets." money clip is up next. ♪

pimm: welcome to "money clip." i am pimm fox. here is the rundown -- around the world, germany versus greece, not the world cup, but often the disagreement over billions and billions of dollars. walmart gives a raise to hourly workers, and the stock suffers. mark zuckerberg once the internet for everyone. he has a problem. it is called china. crude oil is back on the slide. one call you will not want to miss.