." >> i don't think he wants to go work for mckinsey. fordon't want to work mckinsey. will not be working for mckinsey, that is correct. >> that is not the mentality these guys. >> let me bring in jon golub here with rbc capital markets. is anybody at harvard business school want to go into the security business like the acclaimed mr. golub? >> absolutely. it is an exciting time to go into hedge funds. the hiring has restarted there. >> i want to know how many want to go to equity research there. we will get two guys from wharton or -- >> with the broader hiring this time around, is there an appetite to get young tourists with no experience? >> yeah, i think so. i live in equity research. the great place to really understand businesses and to grow, and some of those guys end up continuing on, and some of them end up getting picked off by companies who benefit from that experience that we give them. >> do they still do case studies at harvard? >> oh, yeah. >> are they as deadly as they were so many years ago? [laughter] honestly, i am in a class called launching technol

of england cut the base rate to a three hundred year low of whatever percent so tell us about the mckinsey report into how much these low rates have actually harmed british populace because there's this general perception that somehow low interest rates automatically good for the economy but very few people actually trying to fight so mckinsey to report very recently in which they worked out how much u.k. households again and from low mortgages and how much they had lost through their savings and they actually found that balance u.k. households in five years had lost one hundred and ten billion pounds they worked it out for the u.s. and the reason as well and similarly horrendous figures there i'm not sure why people find the such a hard concept to understand if you're going to take money from one pot and give it to another pot well then the part you're taking money from has less money and i shouldn't be and there are fewer there are fewer people who actually have mortgages and then there are savers so wallie this policy favors the the less than one third of households who actually have a

dobbs is with us from mckinsey.s is a real battle, should the fed have a more global view but that's not their mandate. >> in the end, the disruptions and emerging markets at some point could cause problems in the u.s. it will not at the moment so there is a risk of that. i think the fed needs to be wary of that. element that an the fed has to be aware of other emerging markets and hold u.s. bonds. >> we will continue this discussion, this is a will bloomberg surveillance." ♪ >> good morning, everyone. i love this book -- it is a snow we day in new york city. this was central park yesterday. it was spectacular. today it's just miserable. maybe six inches or three inches and maybe we will get more. snow is expected this weekend as well. let's get a data check. adp is coming out at 8:15 a.m. foreign exchange markets are stable and nymex crude is $97.95. >> remember the sony vaio? it is close to selling the japanese pc unit and the buyer is supposed to be a japanese investor group. it is part of a wider restructuring o

mckinsey doing some good work there. wallace as twitter comes out with earnings today. in one ofs a story the papers here that italian officials are up in arms because the s&p did not get the dolce vita downgrades. you have to understand the dolce vita to get italy. culturalay be, it is a thing. s&p struggles with this. no question. i love what is happening to those interest rates and peripheral europe. that has been one of the great onset stories of january. >> how do you fight the fed? we will see what the ecb does tomorrow. thank you so much, tom. 2013 was a good year for some of fashions top names. newlydustry saw some minted billionaires. michael kors has become the latest fashion icon to join the club. here for more is rob lafranco. if you like at industry groups, a large chunk of the new billionaires of 2013 were from fashion houses. it is not going to be the same in 2014. way, theot look that luxury market has cooled off, retail stocks we have been watching are off about nine percent -- sorry, about $9 billion co

>> first of all, only 11 percent according to mckinsey and company of those who are enrolling are neweople who were not insured before. this is a gigantic turned from those who had policies that hey liked and canceled those struggling to get coverage through state or federal exchanges. they thought they would be getting a lot of new customers is not happening. not good for earnings. s ceo of atlas said they sold 200,000 plans battle the 130,000 have paid the previous befoul holds up also the insurance companies are getting corrupted data especially from the federal exchange. believes are wrong wrong, addresses, children wrong, addresses, children, but making individual calls which is a huge cost to sort that out. lou: very quickly, we are hearing anecdotal reports every side up is costing $57,000 just to sign up? to bring in those enrollees to the exchange's? surely not? rebecca could be if you count the cost of the web site. we have spent $5 billion of the federal and state website suggest adding that eppley could have covered almost everybody with a catastrophic policy alone. lou: t

>> first of all, only 11 percent according to mckinsey and compa of those who are enrolling are new people who were not insured before. this is a gigantic turne from those who had policies that hey liked and canceled those struggling to get coverage through state or federal exchanges. they thought they would be getting a lot of new customers is not happening. not good for earnings. s ceo of atlas said they sold00,000 plans btle the 130,000 have paid the previous befoul holds up also the insurance companies are getting corrupted data especily from the federal exchange. believes are wrong wrong, addresses, children wrong, address, children, but making individual calls which is a huge costo sort that out. lo very quickly, we a hearing anecdotal reports ery side up is costing $57,0 just to sign up? to bri in those enrollees to the exchange's? surely not? rebecca could be if you count the cost of the web site. we have spent $5 billion of the federal and state website suggest adding that eppley could have covered almost everybody with a catastrophic policy alone. lou: take you to be with us. 50

there needs to be an even bigger surge of young people to meet initial predictions, and they cite a mckinsey and company study predicted only 11% of consumers who have bought coverage under the law were previously uninsured. >> for all the disruption and pain, it's a law that will still leave 31 million americans uninsured at the end of the day. >> secretary kathleen sebelius who today announced how many people have selected plans, has not yet revealed how many have paid for coverage. >> when will we see how many are paying into the system? >> as you know, payments, this is private insurance, not often characterized in some quarters as that, but it is private insurance. >> while the administration is leaving those figures to the insurance industry, the new figures they are releasing give the president a chance after a rocky rollout to offer a better narrative to his base, and today, liberal columnists and pundits were brought in for an off the record session with the president by citing an executive order raising the minimum wage for federal contract workers. yet, it does not take effect int

. >> you heard ceo and a mckinsey talk about increasing production and lowering costs. that is the other half of this story. debt toiton has cut its $27 billion. there is a plan to cut it further. all in all, a positive day for bhp billiton. there shares are up a little over two percent. >> manufacturing, we cannot really talk about that. last week, toyota essentially ending all motor manufacturing and australia. saying it is closing aluminum smelter along with rolling mills. >> not a huge surprise, but a pretty nasty shock for people living in the southern state of victoria, around 20 kilometers from melbourne. report henry smelter is 50 years old. describing it as unsustainable. struggling with high dollar, high cost. there are simply no economies of scale. it is no longer competitive, and will not be financially sustainable now or into the future. that means the loss of 980 jobs. toyota also based there. out: looking for a buyer for the power station. if we take a look at the shares it is anum limited, australian company that held a 40% stake in alcoa. there shares a

i also know mckinsey and others have written about the need to pare back the overhead cost. the idea being that squeezing more savings out of that back office could obviate the need to shrink the military further. during last your skimmer, we took a hard look at the pentagon bureaucracy, office of the secretary of defense, joint staff, defense agencies, and feel that unity, and found that some reductions are necessary and some savings are possible. achieving savings in the military's proverbial tail take several years and produces significantly less in bankable savings that is commonly believed. the analysis shows that the od headquarters -- dod headquarters -- when all is said and done, and enterprise of the u.s. global reach requires a substantial administrative and support operation. these backend functions can certainly be done more efficiently with less duplication, fewer contractors and with fewer executives, generals, and admirals. that is why secretary hegel announced that he would cut civilian and contractor .ersonnel by 20% the total savings, however, are a fractio

i also know mckinsey and others have written about the need to pare back the department overhead costsn the proverbial back office. the idea being that squeezing more savings out of that dock office copy the need to shrink the military further. during last year's skimmer we did take a hard look at the pentagon bureaucracy the office of the secretary of defense headquarters joint staff and agencies in field activities and found that some reductions are necessary in some savings are possible however achieving savings in the military proverbial tale takes several years and produces significantly less in bankable savings than is commonly believed. furthermore analysis shows that dod's headquarters structures comprise just over 2% of its personnel and 1% of its budget. one always said and done an enterprise of the u.s. military size complexity and global reach requires a substantial administrative and support operation. these backend functions can certainly be done more efficiently with fewer contractors in fewer executives, generals and admirals plus their associated staff and that is why

mckinsey and company says only 11% in the survey of people who have signed up for obama care insurance were previously uninsured. it just makes me. -- furious. they have turned the system up down. thrown people out. in order to be able to provide health insurance for a few million people that we could have provided coverage for much more sensibly and directly. and less expensively. we will get even further from the goal of universal coverage. that is what members of congress told me. i had to watch it to the bitter end. finallye people saying, we are getting the goal of universal coverage. we will be further from that. when you have tens of millions of people in small businesses, about to lose their coverage, and people that have coverage -- had coverage and will lose it, will have more uninsured. sured juste uni won't enroll. there will be more sick and older people. tens of millions will lose their small business coverage. most of the newly uninsured will be on medicaid. we can talk a little bit about that. the court cases will continue. there are serious challenges to this law, and