and howard schultz delivered on every single front. tarbucks in a word shanghai. shanghai shanghai. >> shanghai. huge chinese story. >> remember what schultz did, other guys had troubles in china. when he goes over he invites families moms and dads of the workers. he understands the culture. other guys could use a refresher on that. >> saudi arabia is in mourning, after the passing of king abdullah at age 90. joining us by phone, saudi prince alwaleed bin talal, the chairman of kingdom holdings. thank you for joining us. our condolences to you and your family. maybe you can tell us a bit about how your country and how you are reacting this morning. thanks for the call. yeah, today i just buried the late king abdullah and tonight there will be the big meeting of members of the royal family and members of the saudi community to come and pay their allegiance to the new king of saudi arabia king salman and the new crown prince prince. >> the king was known as reformer. he opened up the economy, doubled down on his relationship with the u.s.

see what ceo howard schultz has the to say.helle caruso-cabrera is in the middle of the action in athens. and box, the tech company with some all-star investors is about to price its public offering. but we've got someone who says to stay away from this company. find out why. let's kick it off with starbucks. the conference call well underway. let's get to dom chu who's within listening in. >> still going on right now, but let's break away and bring you up to speed on what's happening here. first of all, you should know that the earnings numbers and sales numbers both came in line with expectations here. the company earned 80 cents per share on an adjusted basis. $4.8 million in shares. they did come out with full year earnings per share guidance as well as current quarter earnings per share guidance, that fell short of some analyst estimates. they said global comp store sales, up 5%. they also made some interesting notes with regard to what's happening in growth markets. they did say that there are more starbucks stores in sha

. >> howard schultz is a stud. i'm not all doom and gloom.re great single stocks stories out there. >> we have found what gets you going. >> i think the coffee is lousy by the way. >> is it the food? what keeps driving the traffic? >> their even thoughn innovation. howard schultz is a great ceo. but let me say this about exports. if you're an export economy, you should be able to win based on the things that you make and the people want them. not because your central bank is burning your currency and making more attractive on that front. >> totally fair point. nathan. >> i'll give you one piece of advice. one word. food. that's where all the savings is going. america runs on its belly. always has, always will. >> health care. it's going to health care. they're saving it at the pump spending it in health care. >> it's not going in health care. we're getting obese and then we'll need health care. >> yesterday we had data about where the dollars saved on gasoline are going. and i still can't believe health care premiums ss down year on year by j

howard schultz. he has made it an extra amount. also making money. the owners of boxing history.being auctioned off. a rematch in maine. expected to bring in $1 million when they go on the auction block. bankruptcy protection. let's bring you the latest. we brought you this breaking news. the investigation over the scandal on the game ball. the nfl finally did so in the last hour. we take seriously claims of those rules that have been violated and will fully investigate this matter without compromise or delay. he was generally calm. generally measured. he insisted he had no idea how it could have happened. >> i have no knowledge of anything. i am very comfortable saying that. as far as i know. i do not know everything. >> rady's teammates have come up today. >> he will handle it like he always does. >> never any doubt. no matter what the situation is. this game has a lot of trust. >> the nfl has so far conducted nearly 40 interviews. no word yet on whether they have interviewed brady himself. he has not heard from any nfl officials. one more important line, the statement says, th

digital innovation has become so important to this company that yesterday when howard schultz announced ceo he did not announce somebody with restaurant experience. he named tech industry leader kevin johnson as the number two executive. johnson previously led juniper networks. a 16 year veteran at microsoft. it goes to show how important the digital pushes for this company. >> really interesting. when they made this investment or partnership with square which they since backed away from, it shows they are trying new things. that's their goal is to push their own app. it is not just about payment. starbucks says it drives incremental sales. it is also about gaining loyalty. the reward program has done well. it also provides a platform for one-on-one marketing. they are reaching people through the app. it is not just a payment platform. mobile is at the center of starbucks. huge growth push in the next five years. not just in the u.s. they're also forging into china. >> i will let you run down to the starbucks in the bloomberg building. enjoy some quality time down there after this segme

when howard schultz announced the new ceo, he did not announce someone with restaurant experience.kevin johnson. he previously led a network company and was a 16 year veteran it microsoft. >> it's interesting when they they -- made that ownership at square, it shows that they are trying things all the time. >> and they really try to push their own act. starbucks says it drives incremental sales. it's also about gaining loyalty, this starbucks reward program on mobile, and it also provides platforms for this one-on-one marketing experience. they're reaching people through the act. so mobile is at the center of starbucks, huge growth push in the next five years. and they are also forging into china as well. >> all right, shall be, i will let you run downstairs to starbucks. i know that you will be racing down there after this. thank you very much. we always have the latest headlines all the time on your phone, your tablet bloomberg.com and bloomberg radio. you will see more "bloomberg west" on monday. ♪ . . . >> live from bloomberg world headquarters in new york, this is "bottom line

and howard schultz has a saying, if you came to our management meetings, you'd short our stocks. the reality is all these companies basically -- basically all these companies and i've worked in silicon valley for 20 years. all these companies have underneath the surface tons of tough things to go through. having spent ten years at google, google wasn't always smooth. from marissa's chair, you'll get focused on. this is where the future is. a lot of people focus on it. whether i think marissa is a smart person, yahoo is a strong company. and i wouldn't -- i wouldn't focus so much on the press. i focus on what they're doing. and i think there's a lot of exciting opportunities for all of us in that space. liz: yeah, but will they merge? i talked to a lot of people that said that will make sense. we'll see. tim armstrong speaking with fox business right here on the consumer electronics show. coming up on "after the bell" in the next hour, yeah, i'm proud of it. i have my blackberry still. thank you very much. i get to meet with john of blackberry. they made an announcement, but how i

don't miss howard schultz at 10:00. and then the ipo everyone is talk about is box. drops tomorrow.re going to be talking to ceo aaron levie. i want you to hear what he has to say so you can know this story. what am i doing later, you ask? of course i'm watching an all new "breed" he's got 70 new models. all new "american greed." i'm jim cramer. see you tomorrow! >> narrator: in this episode of "american greed"... the romano brothers of long island are working the phones, selling $75 million worth of coins to eager and naive investors. >> the salesmen knew who they could trick and confuse, and they kept going back to the well. >> narrator: but when the family's arrested for mail and wire fraud, joseph romano wants payback from the ones who put him away. >> a total of $40,000 would be paid for the killing of the judge and the prosecutor. >> narrator: prison cameras catch romano plotting with a hired killer.

meet this guy howard schultz he wants to expand starbucks and i think you guys will like each other. howard. i didn't really know that much about coffee but he's such a charismatic guy and so smart and passionate, first of all we did become very good friends. >> what year was that? >> probably in the mid-to late '80s. >> wow. >> and i invested in the man because i just -- i just saw that this guy is -- he's a winner and an amazing guy and obviously done amazing things with starbucks. >> big moment for me, i said i would ask you this question if i got to interview you. >> oh, gosh. >> a branding question. >> yes. >> the only artist i can think of with an initial as their last name are in hip-hop, eric b, warren g, how did you come up with kenny g? >> those guys came way after me. i started this thing. my last name is gorlic and all my friends and when i was playing music in bands, g-man, hey g, so when i broke out and made my first cd, everybody said look, let's just call it kenny g and that's kind of -- >> someone with a difficult last name, i'm tausche, i can appreciate that. i would

howard schultz. >> smart management. >> one of the best in the business. >> technology forward, smart management. i would rather pay a higher multiple for a company growing and innovating and continuing to grow nare same-store sales 5% than one that's got a 3.5% yield. >> and look at the growth in china, asian markets and the rest of it. there's so much upside. >> management under fire, the shipping wars and the story around ups. cutting its guidance, fedex is falling along with it. which is the better bet? ups or fedex? again, tweet us @cnbc fast money use the #ups or fdx. you guys must have been shocked by ups. pete, it's in your halftime portfolio? >> as frustrating as it could be. at these levels now i like it even more so, scott, because i didn't think they would stumble again in the holiday quarter. they absolutely did. they stumbled again. they overpaid workers, everything that they could have done wrong they did wrong for the quarter. that's why this stock is getting hammered today. i think at this level i think there's more upside than there is in fedex. >> why do you have --

today as howard schultz the ceo of starbucks is quoted as saying "the new york times," the government does a very good job defending our people to war and not a very good job bringing them home. the recent stories of walter reid hospital and the veterans administration come to mind. i sincerely hope we will strive to do better for all those americans who have given so much, risk so much and endured so much. with that, it is my honor to give you are a teacher swimmer on their and fellow navy veteran professor michael rockland. [applause] >> well, tom has 30 thanks everybody i was going to think. i think i will add a thank you to all of you for coming. as tom said i give talks all over the world, but the one i always enjoy is the one here with my friends and neighbors. it is just the most fun. i never got out of ship. i was flown to japan and i was a medic and spent the entire active-duty time in the psychiatric ward, which sorted kids they named to the book. i was drafted into the navy right after i finished college and then went to japan. i was trained as a mandate but i never used an

troy alston was the heir apparent to howard schultz, stepping aside, unpaid lead. s. >> you do. why do you think that? >> i met him. great operation. >> chief operating officer of starbucks. >> howard was doing big stuff. this company has a great bench. i think it's a shame -- i don't want troy alston to leave for a second he's so great. if you sell on this, you are making a very short term and incorrect room. this is a family-related issue. there are times i'm deadly serious saying this guy has to spend more time with his family. it's totally real. there will be changes coming in starbucks. charitable trust owns it. don't sell. >> should i be concerned? >> do not be concerned. is this a stack of bibles situation? can't, it's totally business. i believed every word that came out last night about starbucks. i don't think you should sell the stock as much as i believe they wish troy would not go. he is so good. they have a good team there. >> we got news while we've been speaking over the last five minutes regarding the keystone pipeline. it appears nebraska supreme c

when howard schultz came back, everybody goodt too excited, stock jumped 9% and stock proceeds 200 8,7. like chipotle never looked back. >> one stock that had a big ipo here not that long ago, alibaba. $240 billion market value on day one. as opposed to what shake shack may be i don't know 8 million, maybe more than that. >> stock coming for sale. >> stock yesterday, alibaba down sharply after the company reported what were disappointing, i guess the best way to put it earnings hard to use that word when talking about 40% top line growth but they were. yahoo! of course taking it on the chin with alibaba. today, upgrade over the evercore others coming out positively on yahoo! doing the math and saying if we apply 10%, 15% discount to spinco, where they're putting the 384 million shares of alibaba and we take what the worth is of their stake in yahoo! japan and discount that the core business is valued at nothing or negative. >> true. >> and so -- >> true. >> you've got a couple of analysts coming out and doing the math. yahoo! shares up a half a percent. >> i'm with them. the problem -

howard schultz has another system for starbucks, which obviously is going very, very well. that's a situation where you don't want lines. this is happening and it's happening whether you like it or not. it's really happening. >> the journal argues consumers seem to feel that it's safer. >> fingerprint. anybody has fingerprints. really does sound very good. i do not use it yet. i just got the six, so i have to load it up. >> i've got to load it up, too. anything that can cut down on credit card fraud, which is just out of control. >> it is. and i just got my balances again. i told you every monday morning, i check. >> i know but you think am ex ex and all of the card issuers -- i know they are spending a great deal of money on it, but not enough. you have to have your card replaced during the course of a year because of fraudulent activity. >> i've had several cards that have had to be replaced. i also think that the whole system is very flawed. when you're overseas, you've got to let them know that that's you over there. there's just a lot of changes that people really like

easterbrook, my prediction when schultz came back to fix starbucks he told me it's going to be 18 months before you even see a sign of a turn. i wanted to say, howard'sng to bring it back immediately. he said don't you dare. 18 months. i said when will the bathrooms be cleaned? he said 18 months. you know what? people buying the stock understand it my charitable trust owns it, terrific. 18 months starbucks a small company versus mcdonald's. i think 18 to 36 months. >> a long time to potentially wait. not to mention, though the amount of competition that's out there. you talk about it all the time. the healthy way of course chipotle, and at the other end of things so to speak, the shake shacks going public pricing tonight. we'll have them tomorrow morning. >> irony. >> how do you navigate that world if you're a mcdonald's, not to mention new, stronger competition, one would argue as you said from burger king and the like and wendy's. >> when karen cramer worked at mcdonald's and has that fry basket, because they -- it was a simple menu. foe to mcdonald's, you make it they do a good job, and they're fast and the best all of that's gone. all of that's g