hiring mckinsey. kara's going to join us. plus, the ceo of take-two is going to join us on what he sees for the future of gaming. and the stars were out for the breakthrough prizes in mountain view, california, last night. everybody from the ceo of uber to actors. we're back in a minute. >> everyone wants to be in tech in hollywood. everyone is star struck when, you know, the twitter guys or the facebook people are in town. that's who everyone wants to meet. it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world. >>> the gaming landscape changed with the buyout of king digital last week. simon, strauss, good morning. >> thank you very much. strauss, how would you sum up the atmosphere in gaming at the moment? >> it's a great time to be in this business. it's really

has hired consulting firm mckinsey. as the ceo demands executives pledge to stay. let's bring in kara swisher. she broke the story. also the managing director at ada investment, a share hold, as far as we know. wonder for he still is. kara, to you first. what are we to make of this story, that after three, four years of running this business, that marissa mayer may still not know what to do with it. >> it's a really difficult business and everybody's been focusing on alibaba and the access they have and nobody's been focusing on the actual core business which is in decline. it's a very old advertising business and it's one they haven't been able to turn around. i think that's one of the big issues. they haven't been able to create innovative products that will, you know, take it to the new level. >> eric jackson, you're the investor. you still hold shares? >> i still do. >> what do you think of kara's report? >> i think it's accurate. >> not the authenticity of it, but if it's going to happen, what's the message to you? >> i think the message is marissa mayer doesn

it's called mckinsey global institute. they have done a little bit of thinking and calculating to see if we actually made robust investments, fully robust, not the limp along investments or not creeping from year to year, borrowing money from the general fund, but actually made robust investments, what would it do? what would it do? and among the things that it would do, we're talking about $150 billion to $180 billion annual investment from all sources, what would it do? in terms of employment in this country and in terms of g.d.p. in this country? here's what it would do. it would add those kinds of investments in our transportation system, it would raise g.d.p. by anywhere from 1.4% to 1.8% per year, per year. not one time. per year. in addition to that, about 1.8 million, almost two million jobs. about half those jobs would be men and women going to work building roads, highways, bridges, transit systems. roughly the other half would -- we would have a more efficient economy. the economy would actually move products an

is going to bring in mckinsey and co. more about this and talk about what it might mean for you. jon, first, to you and the facts of what we know, sir. >> well, as kara has reported, we know that yahoo! is in a really difficult spot where its core business is shrinking. we've had executives, top placed executives, leave and now kara is reporting that that's because marissa mayer said, hey, i need a commitment from you guys, three to five years. some people that at least shows marissa wants to be in it for three to five years, but when you have executives leaving, people who she said quarters ago, this is the team, it's set, this is a bad sign. when you hear mckinsey coming in, that's never a good sign either. i understand there is maybe a buy rating on the stock. my question for him would be every time we hear somebody say -- >> he's right there, ask him. he's hooked in. >> every time people say it couldn't possibly get cheaper about a stock, you know, a lot of times the stock figures out a way to get cheaper. is that the

the company is hired mckinsey to help decide which units to sell and close. only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> i think that we have been on the strategic journey for quite that we outlined in 2010, and we are looking at all the potential ways of executing our strategy. actually, this came out is the best solution, and we can continue to focus that we outlin beingand we are on number one. we can transform the networks in .rder to meet the data boom i think this is a win-win for both of us. i think that is what it is. we are going to have partners we will work with, but of course, but this -- this is the largest or teacher partnership

there was a mckinsey report block chain process, or the technology in terms of potentially increasings by 30%. are you talking to any of the banks? have you had conversations with any of the banks? am i going to see your technology replicated in an investment bank, in a retail bank? peter: i think it's an incredible moment of opportunity. we've probably engaged with every major bank in the western hemisphere. 2015 would have been a year that the industry built a lot of infrastructure. i think 2016 will be the year of big partnerships. manus: who are you close to signing a deal with? american, european, or british? peter: i think the banks in new york are probably at the forefront of adopting new and exciting technology. right behind that is london. manus: would that be an investment bank in wall street or a retail bank in the united states of america? let's break news here. who are you going to do a deal with? peter: you should know better than most the kind of confidentiality agreement these partnerships operate under. manus: do you think investment banks are more open to this techno

the company is hired mckinsey to help decide which units to sell and close.marissa mayer has begun asking her top lieutenants to make a three to five-year commitment to the company. she's been struggling to turn yahoo! around since she took the job three years ago. mayer began asking her deputies last august to commit to yahoo! either verbally or in writing. yahoo! has seen several top execs had to the exits, including development chief jackie reese is just last month. one of the nation's top hedge fund activists is challenging a big merger. elliott management says dialogue's deal to buy atmel is too expensive and will ultimately hurt investors. elliott says the $4.6 billion deal doesn't have much in the way of cost savings and will hurt the value of the combined company. joining me to talk about the deal and other mergers, brooke sutherland. let me ask you about this deal. this is an odd deal. they are trying to buy a german semiconductor maker. it's a clash of products. perhaps it means less than the clash of the way the companies are run. brooke: dialogue

joining me to discuss this is michael chewie, a partner at mckinsey & company. michael, really? what we did when we looked at this research was not look at jobs individually. what we actually looked at was the activities that comprised jobs and that's the difference with our research. when we looked at all the potential activities that could be automated, in fact, we found not only are there activities that low skill, low wage workers do that could be automated but we found actually a significant percentage of the work that high wage, high skill workers, including ceos and people in the c-suite do that could be automated. >> what we're talking about is not replacing the ceo or cfo but replacing their brain power with an automated form of brain power to relieve them of a portion of their work. >> that's exactly right, and we find this to be true. there are actually only about 5% of the options ccupations of al 800 that we looked at for which using current automation technology you could automate all of their activities. what we find is many different occupations have a significan

we have heard as well that she has hired mckinsey consultants. to figure out which parts of yahoo! could be sold off. and at the same time, david, she has starboard. you know the activist investors getting in there to start to kick the tires and start to give very public advice. so at the very least, she is under a lot of pressure. david: tough times. deirdre, thank you very much, see you at top of the hour for "risk & reward." right here, trump is still towering but "the donald" is facing new competition. the candidate who is hot on his heels coming right up. what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is? perfect driving record. >>perfect. no tickets. no accidents... >>that is until one of you clips a food truck, ruining your perfect record. >>yup... now, you would t

james henry, you're the former chief economist at mckinsey company, also featured in this film.k about what they were just speaking about. >> the multinational court -- companies and banks make this point all the time about being legal. you know, that dodges the fact that a lot of this regulatory business when it comes to corporate tax is very complicated, that these copies are intimately involved in influencing the law, and that essentially, international evolvede tax system has to situation where it is a question of whether you can set up the right subsidiaries in ireland or luxembourg or bermuda, shifting billions of dollars offshore to tax havens. and it is no longer a clear line between tax avoidance and tax evasion. amy: how much money are we talking about the u.s. losing? why should this matter to everyday people who don't use tax havens? thise direct estimate of for at least $100 billion a year lost in tax revenues and u.s. treasury. -- in the u.s. treasury. we're undermining the stability and the development of many countries around the world by essentially being one of

this is a mckinsey train. at the helm since 2008. now time to embark on a new chapter in my professional life. the four-year strategy and's in 2016. he thought it was a good time to select someone new. look at what the stock has done this year. it's down about 8%. the overall banking index was up ever so slightly. they did announce this morning they will be paying a $.20 per share dividend. deutsche bank has halted their dividend. this is the first dividend from commerzbank since 2007. mr. blessing has presided over the bank in extraordinary times. there was a $20 billion bailout. you see some of the other things he's done. he orchestrated a major overhaul of the bank. they did cut a lot of jobs. they saw the company through a takeover. you look at what this bank is doing in terms of return on equity. last year, it was around 1%. this year, we expect that a little higher. they did report an operating profit that beat estimates. they came in at 429 million euros. that the 319 million euros average. we will see how the market reacts to

mckinsey report. >> but they did not have any way to recoup. >> we are not outliers and pricing. >> any business can be successful. and people have known quite weary of bail outs.bailouts. i want to talk about the cms enhanced oversight plan. was the tennessee co-op under and in plant -- and enhanced oversight plan? >> the 1st notification was on september 29 when we received a letter. what is problematic is that we were also in discussions to lift the enrollment freeze without knowledge of the plan was going to becoming. >> you are getting conflicting information. the enhanced oversight plan included what? >> five pages of issues in the letter that were identified that were areas the co-op needed to focus on to create greater financial stability they were giving you conflicting information. we were under the impression that they felt more comfortable so that the programming could be effectuated to be available for open enrollment starting november 1. they can's -- they converted the solvency loans so that they would artificially appear more financially secure. >> cms indicated they wer

helps. 2 former consultants leading banks, james gorman and the ceo of credit suisse started off at mckinsey done a lot to change the bank around. they have that mindset. had, today's eco-data painting a mixed picture and we will tell you how it impacts what the fed may be thinking. ♪ alix: from bloomberg world headquarters in new york, welcome back to oak quote bloomberg markets. scarlet: let's start with the headlines. you, president obama made a statement on the nation's homeland security posture going into the holiday season. he says there are no specific credible threats against the u.s. right now. people tothe american know entering the holidays that the combined resources of our military, our intelligence, and our homeland security agencies are on the case. they are vigilant, relentless, and effective. a: he spoke after briefing with his national security team and urged americans to not hesitate to travel or attend public events this weekend. nato is urging de-escalation after turkey shut down that russian warplane. the military alliances calling for further discussion between turkey

the carriers in general, according to a mckinsey study lost $2.5 billion.h obamacare as we enter the 2016 time period which is going to have many changes. >> this is the really big year, the really big enrollment period going on now for obamacare. obamacare, the affordable care act only signed up about 40% of the people eligible for the insurance exchanges. we don't know how many we need to make the risk pool, if you will, stable so that we have sustainable rates for people. the industry standard has been about 75%. one way or another obamacare has not signed up enough people, insurance companies are losing money, the co-ops are the canary in the coal mine, they're going out of business. they're faltering one after another. >> bob, here's my simple question, i try to be a straight shooter all the time. many pundits to this would say, well, the co's lost money because congress defunded them. is that a true statement? >> no the co-ops lost money because they were a poor business proposition from the beginning. according to the obama administration's own repor

mckinsey will decide which units to shutter, which to sell and invest more in.tives have left in the past month or so. >> yeah. wow. i think that's one where, you know, you back out alibaba, back out yahoo! japan, you get nothing. that's not changed. i would have thought with tumblr, i would have thought with some of the yahoo! search, with -- help me here, will you? that they have -- other things. yahoo! finance, yahoo! finance. >> yahoo! finance. >> our partner. >> lives on as an incredibly strong brand in that area. tumblr is another name. >> tumblr. >> yes. >> but, of course, there have been recent management changes that carl mentioned. we come back to this a number of times, jim. you complete the alibaba spinoff, 384 million shares. they call the abico spinoff. you're left with not much. you're left with a relatively small company run, of course, by ms. myer and then the question is what is the strategy there? what is going to be done to really move the needle? still have the stake in yahoo! japan. you take that out, it's even smaller to your point, you ma

also hiring mckinsey as it reportedly mu lly mulls a ma reorganization. yahoo!ore than doubled since meier toy maier t he helm. >> let's bring in collin gilles and our very own jon fortt. what would the cost be if this doesn't do tax free and yahoo! proceeds with the spin. >> we need to have this spin happen one way or the other to get the core value of yahoo! to surface. what would happen in terms of the tax implications is anywhere from 45% of the al ibaba stake. >> very important in this whole thing is the role of starboard. it had been important in the actual spin plan and now it's raising some questions about it. i'm wondering according to your reporting how important is it that this major shareholder is actually saying hold off. let's look at other ways. >> well, it's not clear, melissa, how much power starboard has at this point to influence the outcome yahoo! management arguably outmaneuvered them by getting them not to pursue a seat on the board. it's interesting what they're asking yahoo! to do is do the spin a different way. it's like they're having t

. >> now they bring mckinsey in, that to me means they're throwing up their hands and looking for help. why don't you give them free advice that mckin see is going to get paid for. they're trying to figure out which to sell and which to invest in for their future. >> my guest mic kinsy and the like comes in for many different reasons. management knows what the answer s you need someone to come in and validate it. hand in hand with identifying which executives are going to be part of any transition to whatever management already wants to make the company, it's helpful to have someone who who has been going through the company to identify who is going to help and who won't. i don't know that it's as clear cut as mic kin see is going to come up with some big fluffy cloud solution, i think there's already an answer and they are going to validate it. >> what about project index, brian? if there is where yahoo is making its bets according to one article it's supposed to be a one stop mobile search and indispensable guide in the life of a consumer this as facebook is wrapping up with m, pinte

thing that sticks out to me is he so centered and the same background as james gorman, both former mckinseyen criticisms of bank ceos they come from organizations who have love for their legacy businesses. it's hard for them to distance themselves from those units and see the big picture. james gorman has had huge success at goldman sachs. david: if i am worried about risk and volatility, that's the sort of person i would like to be supervising. it seems like he's got a sense of it and command of it and will not panic. in this particular time in banking, he's the right personality. stephanie: it sure seems that way. we have erik schatzker down in d.c. with mary jo white. erik: thank you very much. i'm honored to be here with sec chair mary jo white, thank you very much. >> glad to be here. erik: you are no doubt aware over the increasing or growing controversialhe role that short-sellers play in financial markets, particularly the stock market. how concerned are you that some short-sellers may be manipulating the market and prices of certain stocks either by publishing research or making pu