>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> we are celebrating international women's day here on market makers. a three-hour special. you will be meeting some of the most powerful women in his miss government, and entertainment. from valerie jarrett to karen katz, two academy award winner and lifestyle guru, the one and only when it out tro.

>> we are going to begin this hour -- let's start with a bulletin. these are the top business stories. for the industrial average, at&t is out and apple is in. the world's most valuable company will be added. at&t gets the boot. it has been a member of the dow for 99 years. this links influence to its price per share, very different than the s&p 500. at the was trading at $125. there was concern it could dominate the index. now it is in the $120 neighborhood. at are than expected jobs report for february. employers added 295,000 jobs last month and the in -- and the jobless rate fell. the jobs created in the previous

two months was reviving downward by 18,000. a stagnant 1/10 of 1% of the month. the president of the san francisco fed said midyear may be the right time for a serious discussion about raising interest rates. john williams is on the fed policy making committee this year. in a speech in honolulu before today's jobs report, williams said the u.s. will reach maximum employment by the end of the year or sooner. officials in illinois are leading -- are at a train that exploded. the tanker cars when off the tracks into the mississippi river. no injuries were reported. it is the second fiery derailment in as many months. >> as for our first interview of the morning, she is the ceo of avon. you know it as a company that gave women the opportunity to

earn money. 34 years before they could vote. get your head around that. it has 6 million representatives and is in more than 100 companies -- 100 countries. avon is clearly a name so many women connect with. you only have been with the company for the past three years. where are you in the process? >> this year we are focused on growth. we are focused on women to selling to other women. as we look to drive growth it is about getting more women to come into the business and empower them so they can continue to win and sell. >> is it about more saleswomen than customers? >> more saleswomen and making sure they have customers. >> our focus is on modest revenue improvement on a constant dollar basis.

>> wise the analyst community so skeptical? >> i think they are looking at our past performance. we have an opportunity to show quarter on quarter improvement. we showed improvement on top line and bottom line performance. we are continuing to build on that momentum in 2015. >> why has the turnaround been so challenging? >> certainly as we look at the relationship with women, it is important to make sure that we are going to continue to support them. we are moving beyond that. i'm really proud of my management team. we looked at the products. we have different products at different price points. we have a valuable business model. >> how old is your customer? >> if you go to a place like turkey or russia, the average age is 30.

>> since you do so much business abroad, how hard is it to deal with a strong dollar right now? >> we are making sure we keep the representatives and consumers engaged. make sure we have value at all tears and supporting our representatives and consumers. we are still bullish on the emerging market 75% of our business is in the emerging market. it is making sure we are focused on the consumer and how we can get cost out of business. >> what percentage of your nonlabor costs are in u.s. dollars? clearly the u.s. dollar isn't a factor in labor because you are hiring people with local currency. >> the majority of our business is outside the u.s.. >> i think people think of it as a u.s. brand, a u.s. company. it is a surprise to hear places like russia, turkey, venezuela are such big businesses. >> brazil is our biggest market.

it is the number three-putting market in the world. you see a rising middle class. so people are very engaged. >> i feel like it doesn't matter what company we speak to they are trying to figure out how to connect with millenial's. i don't know if they can connect with a brand like avon. >> think about it, women love to get information. millenial's love to do that. we have been investing in our digital strategy globally. we are on instagram, on twitter. we have more work to do in terms of investing in our business. there's nothing that says young women are older woman to look to sell and be part of a social network.

>> could you see yourself requiring one of -- acquired one of these next gen businesses? sort of a younger 2.0 version. >> we continue to look at how we grow our core business. we are always looking at what accent. >> i have fewer insight than stephanie does. these are challenging times for an american company that operates abroad. if you believe operationally your turnaround is where it needs to be an going where it needs to head, how do you protect yourself against these economic headwinds and the challenges of currency and volatility? do you take what is coming and hope for better times down the road? >> we look at portfolio mix and

are there other ways to drive price that way? and we continue to look at our infrastructure to find ways where we can take cost out. looking from a long-term view what is important is making sure we keep our representatives and sell our products. looking at the infrastructure on the other hand for costs. >> are you talking about the challenge or the need to maintain prices and local currencies where they are now or your opportunity to raise prices to reflect your costs? >> it depends on the market. we are making sure we know it in full -- the inflation is going. that impacts our bottom line. we are looking at that balance to make sure we are keeping her engaged. >> we thought about economies like brazil and china being under pressure. india has been a highflyer.

>> it is a small market. indian women are looking for opportunities. they also want part-time jobs outside their home. >> how many women do you employ? >> internally we have 35,000 people. we have 6 million representatives who are independent sales representatives. >> is this the biggest avon has ever been? >> we had 6 million for a while. if we can just get one more women reading another friend and to sell, we would double our business. >> how long does it take to do that? he's about half the size the north american business. >> part of it is continuing to support the women in the countries. we look at geographic opportunities as well. >> what appeals to you? >> if you look at women in

general, it is a tremendous opportunity. women in china, indonesia. >> what is your best-selling product? >> it depends on where you are in the world. our new brands does really well globally. it is great for antiaging. we have new products coming out later this year that are more targeted to mass markets and you are women. >> is there one single product that you have been selling for decades? >> far away is our number one global franklin -- global fragrance rant. >> what percentage of avon skin care -- lipstick and fragrances are going to do it. >> we just launched a new man on avon.com.

they growth opportunity. they don't talk about much. >> thank you for joining us. who better to join us on international women's day than a woman who kenexa with 6 million representatives around the world. you have to stay with us. the top women in the white house she will be here to talk about the obama economy. >> on tier communications makes its mark. we will talk about the woman behind a $10 billion deal with verizon.

>> an update on this job stay. according to market field asset management, today's report will keep pressure on the federal reserve to stick to a mid-2015

timeline to begin raising interest rates. the dow is falling for a third time this week while we are seeing selling in treasuries that is pushing the yield on the 10 year up to now at the highest level this year. the dollar yen now at 121.14. we saw the euro fault -- the euro fall below key levels. the dow is adding apple and taking out at&t. this change was halted by thesis 441 stock split. visa is the most influential number of the doubt. it trades at 270 plus dollars per share. because of the impending stock split that would reduce the influence of names in the dow so apple's inclusion would help offset that. that brings down its price in line with the average price

within the dow jones industrial average. for now the financials are doing better with utilities. in my with ideas that interest rates may be higher sooner than later. back with more "market makers" after this.

>> she has spent the last decade fronting communications. she has been in the telecom industry since the dawn of the cellular era. now she is moving out of the ceos office and into the executive chairman suite. not before doing one last big deal. $10 billion from verizon.

maggie wilda rother here to talk about her new frontier. >> thank you. i have been the ceo of frontier for 10.5 years now. when you run a large company like this and transform a company. part of what your responsibility is as ceo is to make sure there is continuity and succession. i have been grooming someone for the last 10.5 years. he is terrific. he is also 10 years younger than i am. so he has the opportunity of a great run at the company as well. ms some critics say this $10 billion deal maybe bit off a bit more than you could chew. >> we have done a number of acquisition since i have been at the company. it was right around less than a billion dollars when i joined. this deal will be at $12 billion. we have great competency on conversion and integration.

interval the size of our company. we brought the whole state of connecticut from at&t last year and integrated it as well. he has led as chief operating officer for the integration activity. >> we shouldn't expect a new strategy with dan because he has been under you for 10 years. >> that is correct. we know we do it well. >> it sounds like you've figured out the successor question. so many companies struggle with it. why is that? >> i don't identify who i am by what i do, i identify what i am by 2:00 a.m.. i look at frontier as part of the journey, not necessarily the be all and all. i started talking to my board

about succession eight years ago. when the time is right we need to be able to execute on that plan. i always provided them with three or four candidates they could take my place both internally and externally. >> i don't feel like we have that conversation with other people. there are many who say they has simply they have been sitting in that seat too long. >> i don't disagree with that. i think a lot of time ceos will stay too long. or there hasn't been a right plan to put into place to make sure their sustainability. i had the privilege to sit on the board of xerox. it was a very planned approach. this is the right way to do it. croom, get exposure to the board for the people you think could take the helm. it is not a big bang. it is just a part of continuity.

>> you have shareholders that want to see things happen. are you going to want to take your network assets? >> we are watching what windstream is doing. we want to make sure it makes sense. there are a couple of downsides. one is the ability to control the network. of when you have the network being controlled by another public company, they hey have different desires. as we look at that as a strategic asset. can you make this work and cannot work from a long-term perspective? >> it is not a direct analog but it works for the hotel business. >> we are not considered a real estate play.

it is not just about you can harvest something and buy it and sell it. we have a great return over the last 12 months. we are going to continue to stay focused for the right thing with our shareholder. >> you are in such a competitive business. >> it is about service and using the technology as an enabler for business and for consumers to make calls and to watch video. and to know it works for them and if they have an issue they can always call us. >> do you know who would like that? mike bloomberg. do we have always stuck to our knitting. 23 call centers here in the united states. it really does make a difference

for our customers. >> you do have a competitive position. where is the low probability competitive scenario or where might it be? unlikely but could emerge to challenge her business model. >> one of the great things is it is a very capital intensive business. there are barriers to entry. you have about 60% of overhead that could be leveraged across multiple locations. we have been building that platform for a number of years. wireless and mobility. there are a lot of fragment -- lot of fred nice to our business. strategic partnering is an asset and a competency. you can never do everything on your own, so make sure you do everything together versus by yourself.

if you're not paranoid enough this is what it kicks in. >> you are on president obama's advisory committee as it relates to cyber security. do you feel like america is doing enough? >> i feel like we have had a huge wake-up call. >> we're awake but are we doing anything? >> i think we are. i was with a group of ceos and we did a panel on cyber. how many are at the board level and the management level. it is not about protection anymore. a lot of us need to have the right players and our companies and help make sure.

>> thank you for coming. she is the outgoing ceo of frontier communications. in going to the executive chairman suite. >> we will be back with more. .

>> welcome back, your washing a special edition of "market makers." >> we're honoring international women's day. who better to do the show with them my number one man? let me tell you, it is been an awesome start. >> and we have a lot more coming. >> let's give you news. the top business stories of the morning. u.s. employers added 295,000 jobs last month, more than expected will stop the unemployment rate fell.

economists had expected a gain of two terms of a percent. wages rose by half a percent in january. what does that mean for the fed and the prospect of higher interest rates? bloomberg asked bill gross. >> i don't think a jobs report like this with a wage gain of only .1% and 2.0% annualized rate, i don't think that threatens inflation. as a matter of fact, it is far under what the fed needs. >> that 2% annual gain matches the average increase since the expansion began back in mid 2009. the rule's most valuable company is joining the dow jones industrial average. apple will replace at&t on the blue-chip index lost up times, they are a changing. the telecom is being booted out after falling more than 4% last year. the addition of apple means there will be six tech companies

among the 30 members of the doubt. the move takes effect at the start of trading march 19. the ceo of the embattled its original supplement company herbalife has cast a vote of confidence. michael johnson added more than 8 million dollars worth of state to his company. herbalife has lost about half of its italian the last year. of course, it is in a brutal fight with activist investor bill lachman who calls the company a pyramid scheme, says the stock is worth zero in the ftc is investigating herbalife's business practices. a warning from the treasury secretary, asking commerce to raise the debt limit as soon as possible. if it doesn't, the government will have to put issuing some securities starting next friday. outstanding debt will hit the statutory limit on march 16.

he told congress he hopes they can address the matter without controversy or brinksmanship. actor harrison ford is recovering after a crash landing of his airplane on a golf course near an airport in santa monica california. ford told edge of controllers the engine in his world war ii era plane had failed. ford is 72 and has had his pilot's license since the 1980's. his publicist said his injuries are not life-threatening and he is expected to make a full recovery. >> more on the big change in the dow jones industrial average as stephanie just told you. apple is in, at&t is out after 99 years. let's talk to the man responsible for the decision come s&p managing director david blitzer who chairs the s&p index committee. welcome. not everybody has had a chance to read your statement. explain to us why at&t is out and apple is in. >> i think the first thing is

apple is a novice choice for the dow, the largest company period. it is a strong leading technology company widely known, widely respected. if anything, we are probably getting comments over the last years, why wasn't it in the dow? second, it is a matter of timing. apple, until last june, had a stock price more than $700. the way the dow is calculated the price matter is the prices can't be too far apart. it would have distorted the whole index. then it is just a matter of looking at the timing. visa another technology company currently in the dow, with a price of around $280 a share or thereabout, is putting its stock for for one. that means funds tracking the dow, when they get those four shares for each current share they own, they will sell three of them. and that will shrink the technology weight in the index, and bring it down to a number

far too low for technology. adding apple puts the balance back. that is really the reasoning why we did it. choosing at&t? removing any of those stocks is a difficult choice. when we looked at it, at&t and verizon, similar companies, both in the dow. if anything, telecommunications was somewhat overrepresented by having them both there. at&t is slightly smaller, has a lower stock price. those two items suggested at&t would come out. it is nothing to do with the price-performance of at&t or any other stock. our choices in or out or not investment recommendations. there are chosen strickland to make sure the index represents the market, has the right alan. >> because at&t is out, we should tell confident that verizon will be replaced because you want to have a telik and medications representation. >> we want to have every sector

properly represented, but we have an absolute firm role. we don't speculate on what we may do until we announce a publicly and we do it. whether it is in there for a day, week, month, year, or century, i haven't the foggiest idea. >> david, telecommunications will have a lower waiting in the dow. technology will have a very substantial weighting in the dow. in terms of apple, there is ibm microsoft, visa is a stock you treat as a technology name to a degree as well. is that overrepresentation for technology? >> no, i don't think it is. what we look at, we look at the technology stocks in the dow and look at both their impact in the index, which is proportion of their prices and her market value. we compare that to the s&p 500, which is the key professional institutional measure of the u.s. market.

we compare to the markets overall. when i say overall, every stock out there down to one as small as $10 million, which is really tiny. we see the balance of technology stocks, health care, consumer staples, consumer discretionary, so on and so forth across the second verse, and we try to get a reasonable balance. we never hit it exactly on the news. we are only working with 30 stocks. some are very big compared to others. >> david, you said the s&p 500 is the key institutional measure of the u.s. stock market. today 2015, what is the value of a price weighted index? >> the first two things that stand out is, one, the history goes back to 1896. if we haven't learned anything else about the market, it does strange things from time to time what black and 1896? >> the more you know, the better you are come the longer the data series, the better chance you

have a figuring out what is going on. that long history is very valuable. the dow, because it has been there for so long, because it has the support of the "wall street journal" over its entire history, including now, is very well known, very widely respected. i've never had a company say they don't want to be in the dow or they don't want to be considered for the dow. the fact we're talking this morning suggests a lot of people pay attention to the dow jones industrial average. >> david, thank you very much. if it wasn't there beforehand you should be very honored to be on the show today because we have dedicated "market makers" international women's day. i thought i was going to be the only token guy. david blitzer, thank you very much. >> if you have to include a man in international women's day, who better than one with a beard and a bow tie? go big or go home. when we return, she is one of

the obama's families best friends and top advisers valerie jarrett will be here to weigh in on the economy the hillary clinton e-mail scandal and her new initiative to bring education to girls around the world. ♪

>> welcome back to "market makers." this show would be so much better with the commercial cam if you would've heard us arguing about manners, raising children, and good behavior -- >> but a mentally, we agree on the need for good manners. >> you may not reason -- realize it but fundamentally, we agree on a list everything. and when we don't, he can usually convince me. you probably want some news. how about the top stories of the morning? surprisingly strong jobs report for february. the economy added 295 thousand jobs last month, well above the

median forecast. the unemployment rate fell to 5.5%. workers are not seeing the tighter labor market reflected in their paychecks. hourly earnings were up just .1% last month. and south korea, the suspect accused of attacking u.s. ambassador mark lippert may be charged with attempted murder. there he is being taken to court, august the injured himself. lippert was slashed with a knife while waiting to give a speech. he is recovering after getting 80 stitches to his face. the suspect is known as a radical activist who has staged attacks to push for the unification of north and south korea. two former financial advisor trainees are suing bank of america and its merrill lynch unit, claiming they were not paid overtime for 10 hour days long nights, and weekend work. they want to represent more than 100 trainees who worked in the

company's developer program. he is a is not commenting. erik thanks are going to retroactively pay people for overtime, i'm about to become a gazillionare. that's just how the industry works. moving on. valerie jarrett is a white house senior advisor and one of the obama families closest and dearest, oldest friends. we had a chance to speak with her this morning and talked about why despite another month of strong jobs numbers americans still disapprove of the president's handling of the economy. >> i think it takes a while for people to get their solid footing again. you are right, think about where we were six years ago where we were losing 750,000 jobs a month. obviously, that is turned around, but it takes people a while before they're confident. i was with a big group of business leaders this week. they were talking about investing and growing and

creating jobs. we do think we are moving in the right direction, it will just take people a moment before their company. people are feeling better. one more important point on this, wages are now beginning to go up. even if the overall economy is doing better until it is reflected in your pocket book you will not kill better. what the president has been doing is looking for ways to increase wages beginning on asking congress to increase the minimum wage. >> valarie, honestly, increasing the minimum wage would help for some people, but what we see happening is the prosperity that the corporate sector and investors are enjoying in terms of profits and stock prices isn't being passed on to ordinary americans. raising the minimum wage may help some, but it is the middle class that is suffering as well. you see me statistics. middle-class incomes have been declining for decades in real terms. what can the president do to fix that? >> the entire state of the union

address this year was mostly directed to just that. yes, we have to grow wages. when people's wages grow, they spend money and that helps grow the economy. we need to make sure our workforce is trained for the jobs of tomorrow. we need to invest in education. their president made a clear point about making community college free for the first couple of years for students who are taking their work seriously. we need to invest in ways that are going to grow our economy. infrastructure is very important. it creates jobs right away. we have been trying for a long time to get congress to focus on the importance of infrastructure. there is lots that we can do if we can have congress as a partner, but we are not going to wait. that is why the president is calling on mayors and governors around the country to do what they can do. when we're talking about getting ready to celebrate international women's day, the fact of the matter is, the u.s. is the only developed country that doesn't

have paid sick leave. there are 42 million or 43 million americans who don't have a single paid sick day a year. we have to start investing in our workers. that is what will help grow the economy. >> are we seeing companies do maybe what the government should? walmart is raising the minimum wage. we still haven't seen it happen across government. >> you are seeing it happening now and government. there are cities passing laws and states as well, raising the minimum wage. yes, the private sector is important to,o. t.j. maxx also followed suit. the gap has followed suit. you're seeing action beginning to happen in the private sector as well. that is why the president put the spotlight on this issue. this is an an issue government alone can solve them a big government certainly can help raise the issue and make sure we are leading by example. >> you are shunning another spotlight let girls learn. >> the president and first lady

launched a new effort this week that is building on efforts that have been ongoing throughout our administration, preceded our administration. now we're going to have a whole of government approach ensuring all girls learn. there are currently 62 million girls in the world who are not in school. half of those girls are adolescents. the first lady has taken this on as her cause to put the spotlight on this issue and help remove the barriers that are keeping girls from being in school. it is the difference between being a survivor of human trafficking and starting euro business. the fact of the matter is, when young girls have an education and they complete that education, it is good for the economy and society. our world will be more strong and vibrant and more safe when women are well-educated. that is the whole point of let girls learn. we're working with the peace corps. we have thousands of volunteers who will be spanning out across the world working with local

not-for-profit organizations to help improve the education of girls will stop even here in america, the girl scouts will wear patches that say, let girls learn. it is important for american girls to understand how fortunate we are to have an education system that will offer them an education all the way through high school, and that they have to take advantage of that. yes, we need to do more to improve our schools, at least all of our girls can go to school. >> that is true. but we are still seeing such small numbers study science technology, engineering, the fastest-growing industries. why is that? >> there are many reasons for it. what we're doing in the administration is try and create incentives for the best practices of school districts around the country who are encouraging young girls to study those fields, making them more interesting. we have a science fair here. last year, we focus just on girls doing amazing projects. i'm not talking that built a rocket i did in the fourth grade, i'm talking about these young women are doing research and innovations on cancer

treatment and technology. let make it cooled a focus on science again. there are curriculums across the country where presidents of universities are working with their faculty to change the curriculum to make it more interesting for girls and attract them. once they finish school -- this is also something we have to work on. for example in computer science, the average time that women stay in the field of conceit -- computer sciences three years. why is that? we want to keep those people in the field. there are a range of issues where the focus of our working families last summer summit from a equal pay frequent work raising wages workplace flexibility, change in the culture of many of our companies so their conducive to women and men. women are now half our workforce, and from college at higher rates than men and graduating from graduate school at even higher rates.

we're moving in the right election, but there's still more we can do. >> we need ask about state department e-mail policy. i would have to imagine while the clinton was secretary state you received e-mails -- >> i actually did not. >> did members of the administration received e-mails from hillary clinton while she was secretary of state? >> that i don't know. i do know the president as a very firm policy that e-mail should be kept on government systems. he believes in transparency. i know the state department is currently working with the national archives to make sure all of secretary clinton's e-mails are captured. >> does that mean she broke the policy? >> i differ totally to the state department for that. we established the policy, but we leave it up to every single agency to determine how to adhere to that policy. >> if someone on your staff was conducting white house business using their personal e-mail account, would you fire them? >> i don't want to get into a

hypothetical. i do know we have training at the white house on the continuance racist to make sure our staff understand important of keeping it on the system so it is there. we believe in transparency and the public records that they need to be captured. so we constantly are having trainings prior to make sure they know what is going on and we encourage the other agencies to do the same. >> white house senior advisor valerie jarrett. >> still ahead on this three-hour special edition of "market makers," luxury and lifestyle. you'll hear from the ceo of neiman marcus. speaking of luxury and, this woman went from the oscars to the board room. we will be hearing from academy award-winning actress and lifestyle guru gwyneth paltrow about her e-commerce site goop. ♪

>> welcome back. we have stocks in treasuries falling this morning after

stronger-than-expected jobs report in february added to the prospect of a potential june rate increase for the federal reserve. the dow jones industrial average now down 1.5% from the record high. gold is moving south low 1180. let's look at a couple of retail earnings. foot locker trading at a record high after earnings-per-share topped analysts estimates, the highest estimate and comparable sales rose 10%. big lots posted unexpected increase in dividends. buying back $209 of its own shares. -- $209 million of its own shares. roman sex downgrading lululemon -- goldman sachs downgrading lululemon. the valuation reflects unrealistic growth assumptions increased competition, and moderation in growth and a weakening canadian dollar will also hurt margins. we will have more on "market

makers" right after this with a special three-hour edition of the program.

>> welcome to the second hour of "market makers." i am stephanie ruhle. >> i am erik schatzker. >> today we're celebrating international women's day. there are a lot more powerful and impressive women coming up the next not one hour, but two hours in this extended edition of "market makers." in a few minutes, we're going to be speaking with the ceo of neiman marcus, karen katz. >> plus the woman behind tlc and

animal planet will be with us live. >> actress, lifestyle guru dropdead gorgeous mother the one and only gwyneth paltrow. far more than just a pretty face running a growing e-commerce site goop. >> let's begin with top business stories of the morning. it was a better than expected jobs report for february. u.s. employers added 295,000 jobs last month and the implement rate fell to 5.5 percent. the chairman of the president's council of economic advisers told bloomberg the economy is on a hot streak. >> we have now had 12 straight months of our businesses adding over 200,000 jobs each and every month. we haven't seen that happen since the 1970's. so we are going through what is really an extraordinary streak. job growth averaged $260,000 a month last year, keeping up that same pay so far this year. it is something most people do

not expect. >> people will find holes in the jobs report and here is one, the number of jobs created the previous two months was revised downward by 18,000. wages the once again virtually stagnant, rising just .1% for the month, 2% over 12 months. changes coming to the dow jones industrial average. at&t getting kicked out, apple being welcomed in. the dow is adding the world's most viable copy, apple, march 19. at&t gets the boot. why? stock prices have fallen more than 4% over the past year. at&t has been a member of the dow for 99 years. the dow met the influence to its price per share before apple's seven for one split, trading at $525, leading many to worry if added to the dow, it would dominate the measure more job cuts.

sap plans to cut about 2200 jobs 3% of the global workforce. a similar reduction last year. sap says because are about positioning the company for the future instead of selling software to companies under traditional licenses, sap is leasing applications to customers over the internet. the state department is reportedly reviewing e-mails that hillary clinton sent for her personal account and she was secretary of state. the washington post reports the department wants to see if clinton violated policies covering sensitive information. the reported -- cited an unnamed official. clinton has been cooperative. >> last year, the department sent a letter to representatives of the former secretaries of state requesting they submit any records in their possession for proper preservation. in response, hillary clinton provided the department with the e-mails that span her time at the state department. >> the state department is

reviewing tens of thousands of clinton e-mail's to see if they can be released to the public. the northern illinois, a train of oil tankers derailed and exploded last night. no one was hurt. authorities are letting the fire burn itself out. it was gearing oil from north dakota -- it was carrying oil from north dakota. a new study says widespread use of self driving cars could end 90% of all u.s. auto accidents. the report says that could prevent thousands of deaths and save 100 $90 billion year in damage and health care costs. it will be about 15 years they predict before there is mass adoption of the driverless car. >> in the regional industry, one day your in in the next day you're out. how is neiman marcus more than a century old luxury retailer staying in the 20th century?

let's ask the ceo of neiman marcus, karen katz. she started at the company in 1985 hopefully, wearing shoulder pads. she was a merchandise manager and climbed her way to the top becoming ceo in 2010. karen, you have been in that seat for a few years now. what is your look ahead? what is niemann going to look like over the next few years? >> thank you for having me. the retail world is changing so rapidly. one of the goals i think of every retailer today is trying to really figure out what retailing is going to look like over the next five to 10 years. one of the things we believed very strongly in is on one side, the founding principles of our company, yet the best margin as assortment and from all over the world, coupled with great service and building relationships with our customers will remain extremely important. the what is changing very rapidly is how the customer

likes to shop. we are looking very closely at how the customer integrates her shopping online her research online with her visits to our store, and how the -- she then overlays or favorite social platforms into her shopping experience. >> how important is discounting to her since last call seems to be your biggest growth area? >> our overall e-commerce business is actually our biggest growth area. in our business discounting is really shied away from, except at our end of the season sales when the fashion merchandise that has been bought for particular season is marked down. i think the luxury vendors that we work with on a daily basis they and we have very high standards about how we sell our product and the prices we sell our product. we really -- our goal is to sell the customer the product at the

appropriate price throughout the season, and then at the end of the season, to clear out those fashion items that didn't sell as well during the season. >> cast your eyes forward as this reach a landscape transforms. what percentage of neiman marcus's revenue do you figure you will be generating online? >> it is hard to actually predict what percentage of business will be doing online today we're doing what he 5% of our business online. i believe we are probably -- 25% of our business online. obviously, we think it is going to grow bigger predicting the exact percentage is probably summative that is a soothsayer. what i think is more important than a percentage of e-commerce to the total person is just business is how we as a retailer are integrating the shopping

experience to the customer. she really is demanding that there be a real seamlessness between what she sees online what she sees in the store, and marketing and can medication to her is seamless across the channels. -- communication to her is seamless across the channels. >> you are a texas-based company. the dallas team and markets is an iconic luxury store. how is the drop in oil prices affecting your business? >> it is interesting. we are based in dallas. we are fortunate in our group to have two great iconic luxury brands, neiman marcus being based in dallas, but bergdorf reutimann -- goodman is based in new york city. we are geographically spread throughout the country. so although we do have seven stores in texas and we are very, very proud of our texas heritage, we do have seven stores in california, seven stores in florida in the

midwest, in the northeast. so just as the economy goes up or down in any one part of the country or another, we actually do have some good hedging because of the way we are geographically located. >> are using those texas stores get hit? >> i think generally saying that texas stores have been strongest over the last number of years and we are not releasing any kind of decline in our business in texas. >> what we see happening in oil the stunning shakeout, for example, stock prices of oil companies has to reflect what is going on in the ground in texas that hasn't affected neiman marcus yet? >> i think our customers are tied in to a number of different businesses. the stock market is the most leading indicator for our customers health and well-being. their balance sheets are very very healthy right now. of course, the oil and gas

businesses that are basically based in texas are either owned by or run by people who are generally neiman marcus customers. i think they're probably being thoughtful on how they're spending, but again, their overall portfolio and balance sheet are healthier than a have been in a long, long time. >> karen, i would ask about bergdorf goodman. neiman marcus is coming to town. i wanted to know what designs you might have for bergdorf's? if flirted with expansion to white plains years ago, but why not take the brand to a bricks and mortar way to shanghai, for example or to buy and make it the international destination for luxury the way it is here in new york city? >> well, i'm very impressed. you did your research on the history of bergdorf goodman. we did have a store in white plains, new york about 30 years ago.

we transferred that store into a a neiman marcus store, and we're done quite well in that location over the years. i do believe the way you're thinking about bergdorf's is the way we are. if i could have any wish i wanted about bergdorf's, it would be too expanded internationally. it is more difficult than a manicure on the surface. i think you hit upon something -- >> how long will it take? >> oh, as i said, i'm not good in the prediction business about those things. >> if i could have any bergdorf goodman wish, it would be that i live on the fifth floor. if you had to choose -- neiman marcus or bergdorf, which do you like better? >> that is like having a favorite child. >> i do have a favorite child. i choose my daughter over my sons. i choose bergdorf's over neiman's. what is your call? >> well, good for you.

i don't have favorites amongst my children. >> thank you so much for joining us today. a woman with a really good job karen katz ceo of neiman marcus. >> coming up on the special edition, she is the boss of cake boss and a whole lot more reality shows you love to watch. tlc group president marjorie kaplan. >> we got the scoop on goop. we spoke with gwyneth paltrow. ♪

>> you are watching a special edition of "market makers." international women's day 2015. you can it made it now, i know you watch them, shows like "say yes to the dress" and "take boss" and "sister wives" and even here comes honey boo-boo.

marjorie kaplan runs the network along with sister channels animal planet and philosophy. welcome. >> nice to be here. >> reality television. it still has an unbelievable grip on the american tv viewer, but that grip seems to be slipping, doesn't it? >> i think there's a little bit of fatigue. i think people have begun to realize a lot of reality tv is not really real. >> that is why in the biz they call it "non-scripted." >> that is our job, to figure out what can be revitalized. channel like tlc, our viewers post what they like about it. they say, you're not reality tv, you are real tv. i think that is why we have had success there. >> how do you know what is going to connect? there's so much out there. before reality tv came around, we would say, what? we're going to look at a family with 19success there.

kids? it doesn't seem like things people would care about, yet they are captivating. >> that family is totally captivating. they have 19 kids. they gives us an opportunity for 19 weddings and a whole lot of babies. the great thing about shows like "19 kids" is that they seem like they're different than you are, but when you get to know them, they're just like you. >> is that why reality tv does so well, the empathy factor? when we are watching "friends" i was never going to look like jennifer aniston, but you throw "say yes to the dress" or "honey boo-boo" -- >> "or deked dynasty -- or "duck dynasty." >> there is a lot to identify in these families. the inside and tlc, people want to connect with people who feel like them, but it is sticky because they feel different. the flipside is on animal planet, people want to feel more connected to the wild, natural world.

in a world where people are tired with manufactured tv animals are unscripted. >> if you have to reinvent reality television how do you do it? >> if i only knew, i would be doing it now. >> there has to be a path. >> i think it is through the audience. you have to think about who you're into user is, and listen closely. the most important thing is to not be derivative. one thing that is created the fatigue is circle the drain. this show works everyone wants a show like it. it is about being fresh and finding out what the audience once. >> what happens to a channel like tlc or animal planet if we unbundle. i stumbleupon no-shows. i fall in love with him, but i don't know if i was asked to choose six channels, i'm not sure if they would come to mind.

>> my job is to make sure they do come to mind. first of all, in a world where there are so many content choices, it makes brand more important. you need curators. you're not just competing with everything on television, but everything that has been on television thomas a nothing of the web. you need a strong brand some people go, oh, i like this show on this channel. the other is, you need shows that really breakout, that are noisy. >> how long until tlc or animal planet or velocity are over the top? >> it is not clear. we have announced we will be doing a tv everywhere app later this year, and that is one thing we're working on. discovery is a global company. those channels exist all around the world as well. the changes happening in this country are one thing, but globally, it is different. >> what about amazon and netflix, friend or foe? >> we will have to think of them as friends.

discovery had chose on amazon and netflix. we no longer do, but we have a terrific h dealulu. we get a guy for the content and the branding we need -- we get the value for the content and branding that we need. at the moment, we don't think we're getting the value we need for the content on the other platforms. >> those kardashians, love them or hate them? they just inked a $100 billion deal. is that going to make it harder for you? >> i don't expect we will be paying $100 million. as talent becomes more successful, that bigger demands and i'm sure -- i would be lucky to have that level of challenge, how about that? >> it's a high-class problem. >> how do you rebuild to cater to a mobile viewing audience? people don't watch on their mobile's what they do on our couches. >> more and more people are. >> there watching full episodes?

>> they are, one issue is there is no measurement. the data, as far as we had -- >> how do you crack the measurement code? >> six years ago, i was never watching a show in a cab or car or subway. now, you have added viewing time. >> but do you watch the whole thing? >> but i went from zero to something. >> i think you want to reach her audience wherever they are. if they are not watching long-term content on their mobile devices, you need short forms -- >> that is what i'm asking. >> one of the great things about being real is that people have real lives. you can connect with them in their real lives when they're not on television. the other is, people really are watching full-length content. >> have viewers gotten dumber? think about where you came from

and what consumers interest are now. have we dumbed it down? >> people are smart, they just look for things in different ways. what i love about tlc, there's a huge amount of takeaway. think about what we do on friday nights. there are tons of tips for people. i also think, we can't forget some of television is about down time relaxing, coming home at the end of the day, taking -- >> literally vegging out. >> a channel like tlc, when you watch, you feel good about what you're watching. you don't come away thinking oh, i can't believe -- >> when i watch "19 and counting" i feel like my three kids are a snap. >> they are lovely. it is calm and quiet and they're not screaming. >> is that a prerequisite? there is value in craziness and

weirdness, isn't there? >> sure. >> do you want more of that or is an important for tlc to be safer? >> i think it is our job to strike the right balance. i think you have to be spicy enough that people want to watch. but you have to have enough heart that people feel good about the choice they made. >> what is your favorite show to watch? >> right at the moment on tlc "19 kids and counting." followed by "treehouse masters." >> thank you for joining us. >> marjorie kaplan.

>> when we return, quinn at paltrow. her lifestyle site goop is taking off. she will tell us what it is like holding down a few jobs. ♪

>> welcome back to "market makers." >> talking like a vampire? >> it is girls day and i can do whatever i want. i can't. let's go back to scarlet fu for recap of the action out of -- because it is international women's day, you can also do whatever you want. >> i do whatever i want every day, that is part of my job.

let's start with the european index. the stock 600, modest gain, but the the financials are higher, utilities are lower. the dax a record high. ecb quantitative easing, when it begins. u.s. stocks are looking a little more expensive. economic data out of europe has been showing improvement, but you are not yet seeing a short covering rally in the euro. euro continues to weaken, now below the 1.09 handle, testing the 1.08 level. we are at that 1.08. there is that leg lower the jobs report came out at 8:30 a.m. new york time and euros -- and hear how the euro has compared. overall, incredible gains for

european stocks this year. if you look at the returns for 2015 for the stoxx 600, dax and cac 40 double-digit gains. pointing out much of that gain is related solely to euro weakness. let's show you what they look like when you price them in u.s. dollars. they shrink by quite a bit. currency hedging is going to be he to investing in europe. as the european central bank continues to pursue its quantitative easing as well. >> people in europe are going home and scarlet is wrapping up their markets. >> in retail, a bidding war for the bottom of the barrel. walmart and tj joined gap and ikea and raising pay for workers. why are these bigger retailers so eager to boost wages for entry-level employees? julie hyman is here to explain. >> we have all been --

>> welcome to international women's day. >> while you're talking, was thinking about what i would do. i will leave it there. i want to talk about retail wages. there are a lot of different reasons that we've been talking about, ever since walmart made the announcement was going to be raising wages. one of the maybe it is very costly to train new workers and there's a high rate of turnover, increasing rate of turnover in the retail industry. if you look at the so-called quicks level, the rate at which people quit retail jobs in particular, it has been picking up pretty steadily over the past year or so. now it is a rate of 3%. if you combine that with the firing rate as well, for whatever reason they're getting rid of people, you arrive at a rate called the separation rate of about 5%, which is higher than in other industries we see, higher than the overall number

which is about 3.2% across industries. you have this high level of churn within retail and one way to keep people around for longer -- >> pay them more. it is called wall street. >> that is a whole other level of what they're getting paid. >> how much does it cost? you said it is expensive to train these workers. i thought it was just you know, stocking shelves and greeting people as they walk in the door. >> if your retail, you have to do it in a certain way. bloomberg.com they looked at the numbers and they said, the average retail sales employee is making about $21,000 roughly. the cost of replacing that employee is about 16% of their annual wage. if you're looking at a turnover rate of 5% and having to spend

16% of that person's annual salary, the numbers start to add up pretty quickly in terms of -- >> the real incentive to keep people from living -- leaving. >> if the quit rate is going up steadily, where are those people going? are they going to other retail jobs? we don't have an answer to that question, unfortunately. are they going to higher-paying jobs or other types of retail jobs that are higher pay? >> but it doesn't just bit by bit there is less slack in the labor market. these people feel the have the freedom to leave the security of the jobs they had. >> it does seem to sit just that. these retailers, we should point out, extraordinarily competitive marketplace right now. people are telling me it is a zero-sum gain. if you're getting more business it is from another retailer, not new sales and new debate and being created -- demand, just

moving the demand from retailer to retailer. if you can help yourself by not spending as much as you were on turning people and having theoretical better customer service because your folks are happier -- >> but don't you have to spend more money to train people so they can provide better customer service? >> hopefully, for these retailers, if you pay them more, they will be happier and providing -- >> or if you pay them more perhaps you get a higher level of employee is able to absorb the trading them is -- that much faster. >> and most of them are not just raising wages, but doing promotion programs from within training programs -- not just to do the entry level job, but to move people up to managers and such to keep that part of the company. and incentivize them to want to do better. >> have you ever worked retail? >> i have. >> where? >> banana republic when i was in college. >> oh, yeah. >> where?

ruth's? >> that is an iconic canadian apparel. i did work at a men's clothing store, even in high school. >> he is so stylish. i was a waitress. i don't get it. >> i did that too. >> were you ever lifeguard? >> yes. we have way more in common. >> when we return, moonlighting with gwyneth paltrow. we will be speaking with the award-winning actress about her other job, the e-commerce lifestyle site she started, goop .

>> welcome back to "market makers." this special lady has played ironman's girlfriend and a substitute teacher with pipes on

"glee." now gwyneth paltrow has a starring role in the technology world. she is the driving force behind the lifestyle it e-commerce site goop. we spoke a few days ago about how the business is going. >> we are seeing celebrities endorsing products for years. you become a stakeholder in developed your own over the last few. why make this change, to make more dough? >> no, the opposite, apparently. i started questioning being hired as a face for comedies represent, and hours worked in copies i received -- for companies that i respected and i'm doing this on the side of building a brand. what would it be like if i were to channel the power of that into my own brand and to kind of -- the equity be not only sweat equity i put in to company, but

also my actual equity and wouldn't possibly bee more meaningful for me the long run if it was a business that i owned a significant share of? >> did you realize you would be taking on so much more risk? >> i didn't. i was a full and had no idea what those getting myself into. i have to say, it is been incredibly rewarding. i learned so much every day. we are at an exciting time in the business right now. it is amazing to be the creative force and to be understanding what is going on on the fiscal side with raising money and all of that. it is very challenging. it is a side to me i do not necessarily know i possessed. >> what has fundraising been like for you? traditionally, people love and no gwyneth paltrow. everyone is your fan, but then you to sit across the table from bankers and potential investors and say, you might like me, but

do you want to invest in me. what has that been like? >> it is been an interesting experience out of my comfort zone. my pedigree is the entertainment business, a much different business. it is horrible and challenging -- of vulnerable and challenging. laying out your numbers in your open rates in your revenue and seeing the people are interested in being involved in the company and becoming partners with you in the business. i still struggle with it. only because, when those vc's come in, your sort of beholden to them and the bottom line. i have copied nation, but it is also exciting. >> goop has gone criticized before for not understanding the consumer. but is it the consumer that

doesn't understand? you know who your customer is and she may not be mass-market. >> sometimes there's a miscommunication. we aren't a super luxury site, but we are aspirational. we have things on it that cost four dollars and things that cost $500. i think sometimes -- sometimes i think some of the criticism that goop gets is because people have not actually gone to the site and looked around to see but we actually are. >> now that you are invested in some products come doesn't make it hard for you to recommend other businesses that you don't have a state in? >> i don't think so because first of all, we will always -- the core of our business is the authenticity and the trust. the reason why our open rates are so high and my people come back and back and back is because they trust us. they trust the information is good, that our recommendation is real. we know that at goop and we will never do anything to breach that trust, but there are ways -- we

are figured out ways that we can run a business and generate revenue in line with the specific brands, the egos of those brands and what we're trying to achieve. >> one thing i noticed about goop your face isn't everywhere. if i looked like you, all it would be is pictures of me on twitter, instagram, and the website. i know your voice and influence is there, but we don't see you everywhere. how come? >> i very much want goop to be a standalone brand. i know at this point in time, it is inextricably linked with me but we really are a team of amazing people who bring incredible ideas to the site. it is not only me. my dream would be in 20 years, people would sort of recollect i maybe had something to do with it at one point. my involvement would be less substantial. i think that is what we are

building toward. we are doing it. it will be interesting to see. i never wanted to do a proprietary brand. i wanted it to be its own thing, that my children can run one day if they want to. >> your toughest job, getting your dream role, getting investors to back goop, getting customers to go on to goop and by product or getting kids to do the homework? >> definitely getting moses to do his homework. that is my toughest job, for sure "market makers." like me, she can't get her son to do his homework. it is interesting she doesn't have her face everywhere. she said she would love and 20 years for people to say, were you involved in some website? we know it is what the kardashian mantra is. but jessica alba some say it is worth in the billions. jessica simpson makes more money selling close and shoes, she never needs to sing a lullaby again. when stephani, blake lively, but

when it doesn't have -- gwyneth kind of lurks in the background. i was super impressed by her. just think about all of these celebrities who endorse products. you get paid a time of dough and if the product doesn't work you can say, i don't know, i'm not into it. she has but her sweat equity and real equity -- when we interviewed diddy, he said, i don't have to put my own money in. my brand is worth more than dollars. she has her own money in it and raising money. that is some real risk. i like it. >> time to bring you up-to-date on top stories. adding 295,000 jobs last month more than economists expected. the anna plummet rate fell as well -- the unemployed it rate fell as well. wages are pretty much stuck meant, up by .1% in the month of

february. the condoms expected a gain of .2% -- economists expected a gain of .2%. reports of fraud involving apple pay. the new pima system from the world's most viable company. criminal seven typing still in pretty card numbers into apple pay and then trying to make purchases. it has caused banks to make changes in how they activate customers credit card accounts to use the apple pay service. some require users to call them if they want to activate apple pay. two former financial advisor trainees are suing take of america and merrill lynch unit claiming they weren't paid overtime for 10 hour days, long nights, and we can work. why on earth did you get into banking in the first place? they want to represent more than 100 trainees that a port in the development program. be of a not commenting for now on this lawsuit. "market makers" a special three-hour edition. we will be back in a couple of minutes.

>> welcome back to "market makers." our produces are asking us to discuss our favor interviews. that is such a mean thing to do to girls. if it were men, we wouldn't say who is our favorite. it is like putting a popularity game. i'm not going to do it. >> it is not as mean as you think it is. they have all been great. >> you don't think it is mean? >> no, i don't. >> we're going to talk about what we have coming up. we haven't spoken to anyone from the banking world. we will speak to two competitors from goldman sachs and bank of america. we're going to get down to markets when we return.

>> what is with the accent? >> it is women's day, i can do whatever i want. >> what is it? >> i don't know, international. look at madonna. >> we will be back in a moment. ♪

>> bloomberg television is on the markets. we are at mid of the trading day on this jobs friday in stocks

and treasuries are declining. the february jobs report putting the prospect of interest rate increase at midyear back on the table. the dollar is rallying in the euro falling for a seventh straight day, weakening below 1.09. joining me today, james really. james, give us your interpretation of the jobs report and how that is playing out in market. >> it was a pretty decent report in terms of new jobs added in the unemployed it rate. we saw the rate downtick. what traders are looking at is wage growth. we're not releasing growth, it is been stagnant. that given the mood -- pressure on the markets, pretty ugly day in the s&p. we are only about 50 points off the all-time high. the vix sing a big pop, but trading at historically low levels. if i was concerned about the market, i can still buy

protection relatively cheaply. >> are you seeing that happening right now? >> option markets have been a little quiet today. it was the traders are sitting on their hands. with the dinner friday in the jobs report, i think the mood lower is a little over done. -- with it being friday and the jobs report, i think the mood is a little over. >> speaking of blue chips, apple is going to be added to the dow jones industrial average. it will replace at&t in about two weeks time from a march 19. what kind of options activity d.c. and apple and -- do you see an apple and at&t? >> apple is difficult to read, one of the most heavily traded stocks. there's a lot of differing opinions. however, the options market after apple reported their most recent earnings report was implying the stock would close right around $130 at the end of march expiration.

i think the stock rallied a little too far, too fast, but this new inclusion should help boost the stock. index fund managers have to rebalance by buying apple now that it will be included in the dow. that is what they wanted to happen after they split the stock. >> what about at&t? >> also difficult to read. i think there would be downward pressure on at&t. now all those managers have to rebalance by selling at&t to buy apple. >> at&t the lightest al capone and. coca-cola is number six within the dow industrials, the lightest. you have a trade on coca-cola. tell us what it is. >> i'm looking at coca-cola and i have been buying them a 44 calls for bound $.47. we've seen huge institutional trades flying in here. open interest is now over 90,000, also a lot of interest

in the may 45 calls, implying quite a bit of upside for coca-cola. it is drifting lower with the broader market. like i said, we're seen a lot of bullish activity in blue chip names like coca-cola, ge, and exxon. these are stocks i want to be long if the market rebounds. like i said, i could get long these names and buy protection relatively cheaply, because we're still looking at events historically trading at a lower level "market makers." and the upside would be a limited. thank you so much, james ramelli. more market makers after this.

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> i know you're saying, it is 12 :00, and market makers. it is. this is the third hour. i'm erik schatzker. >> i am stephanie ruhle. we are celebrating international women's day by talking to some of the most interesting women. you name it. >> impressive, intriguing,