but there is an argument may be made. demand is much higher. >> thank you so much. we are back on the markets once again in 30 minutes. "market makers" starts right now. >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> china rising. another chinese check firm in the u.s. jd.com -- it is the biggest offering ever of an internet company from china and america. >> this is been historically unproductive this year. there are ways to make money off of congressional inaction. we will tell you what to buy and what to sell. >> there has never been forced

marketing campaigns quite like this one. the firstecomes league with -- welcome. i am stephanie ruhle. thrilled to be here. matt is in the house. >> i am filling in for erik schatzker, who is on assignment. he is really on assignment. >> not one of those " on assignment." >> i was just in sonoma on a track. >> tough job. >> we have breaking economic news to get to right now. april, mikeh of mckee is taking us through the numbers. >> 1.3% increase does not, go whole lot, but it is the best since last july. home sales rise to a 4.6 5 billion annual rate.

we have been talking about this for a while. condos and cars, people are moving into that area, away from single-family homes. condos up 7.3%. we are seeing a better trend in home sales, but not in the single-family area as much as multifamily area. supply goes up in the month of april. that is good news. we have been waiting for more people to put their homes on the market. that may have an effect going forward. >> thank you very much for that. not exactly hitting me estimate. gamerock was the big there. >> blackstone, there you go. both winners, though. time for the top business stories from her on the world. same old story at sears. the first loss got even bigger.

sales fell almost seven percent. sales has tried to boost cash by selling or spinning off assets, like clothing units. there is a new leader at the stock exchange. they are retiring -- defeated by a guy i have known for 20 years, tom farley, a great guy. . in thailand, the army has staged a coup. they will seize control to restore peace. >> now, shares of the online jd.com, williler, start trading at any minute. they are above the expected range, $1.8 billion. the company has been losing money for three straight years. we're bringing in cory johnson, who has been following the story in new york and san francisco.

>> you were here and i was there. how does that happen? >> we can switch back. >> this is a big deal. it is a very big important company. a lot of comparisons made to amazon.com. probably closest to that business -- the deal itself is interesting. there's only a 15% stake. cent is taking a big stake in these guys. jd.com is getting wedded to the mobile messaging platforms. so the deal -- they are selling that stake. it underscores how important this company is and how it is growing. it is that a 60% clip and going public with a health evaluation. the company is at $11 billion. it is already a beast and

growing bigger. growing closer to profitability. it is really an interesting business. >> i know how it was marketed -- they wanted to compare themselves to amazon. can they really build themselves to be that big? >> yeah. one of the reasons this is so different from alibaba is it is so amazon-like. there are a couple hundred warehouses. 1600 delivery stations throughout china. this is a business with a great big physical front. they do a lot of delivery. so, as a result, there is a big presence, set up to grow quite a bit. not just in the inventory they can carry, but also doing into the market in china. it winds itself to a popular social network and platform in china. it could be enhanced sales growth. >> when you think of chinese

amazon or ebay or e-tailer, you think of alibaba. what does this mean for their ipo? >> this is their big competitor. they came in with an interest in alibaba. they're considering investment in alibaba. the jd.com numbers look really strong. you can see where the profitability will come, probably in short order if the trend continues. one of the ways wall street shops these things is -- if you like alibaba, you'll love this. they try to get these deals out before. this is a giant business in china right now. >> thank you very much for that, cory johnson. back in san francisco, and i am back here. >> now to a deal that may not be in the works. an activist hedge fund wants to

sink their claws into darden restaurants. than five percent of the company and want to block the plans to sell red lobster. now they are starting a proxy battle to replace the entire board of directors. let's bring in cristina alesci who is all over the story. she loves red lobster. >> absolutely. i am there every week. night --one very late >> who eats lobster late at night? >> i don't think so. >> high school? accusing the is management of basically giving away red lobster. they lay out all of the map in a letter to shareholders. they're saying that darden sold its business for $2.1 billion. once you back out taxes, you are looking at proceeds of $1.6 billion. guys, listen to this.

the private equity firm that bottle of red lobster -- bought red lobster, sold as real estate for $1.5 billion. you have a value of the operating business that amounts to $100 million. they're saying that if you had taken our advice and on a tax-free spinoff of the real estate, you could have realized more value by telling the real estate an operating business separately. ion, star board is saying why would you sell your company now when you're having such a problem with shrimp costs rising? you said this was a terrible impact on your operating business. it is a short-term thing that could resolve itself. why so when you are in a stronger position? --why not so when you are in a stronger position? >> the triple get better. --the shrimp will get better.

>> do they really need to replace their entire board? >> it is a realistic outcome here. darden has upset shareholders at this point. they could just be angry enough to go ahead and elect thsis board. this is why this deal is so interesting. we could see an actual outcome driven by the activists in this case. we will have to see when they do this. the other shareholders have supported star board to request a meeting to talk about this deal. we have seen other shareholders support them. >> have we heard from darden? >> we have not yet. they will have to not a pretty significant pr campaign. this is resonating with a lot of press. >> what do they actually want to do? >> they want to break up the business. they want to unlock what they say.

they want to unlock value by breaking up the entire comp any. they think it could be run a lot better. >> they think management is trying to protect its jobs. >> think you for giving us the latest. we know that darden is going to get bigger. we have gone to every headline this point. except the biggest ones. our own executive producer is graduating from nyu's school of business. >> congratulations, ben. >> we will have to dig into that and more when we come back. >> we will take about for a boozy lunch. >> ebay is trying to recover from a cyber attack. we will see with the data breach will do to the company's stock price. >> and how can you make the stalemate on capitol hill payoff for your portfolio? this is "market makers." we are also streaming on your

phone, tablet, and on the internet. and you can see us on amazon i are and apple tv. ♪

>> ebay is the newest member of a hack attack club. they have been the target of hackers and the users personal information may have been stolen. there seem to be a growing number of these attacks. few investors really care. we took a look at some of the historical hacks to see how shares have performed in the wake of these attacks. we should point out that there are different kinds of attacks. when target loses your financial information, it is different then gmail losing your birthday. >> we should point out that eric does not often visit us. bring it. >> when you look at the stock performance of these companies with these problems, like target

and now ebay. these actually turned out to be great by opportunities. all of the stocks have a little drop, then recover. t.j. maxx is now up five times lace it was when they have problems. it is more than target. >> what happened to their stock after? >> usually there is a 10-15% drop and then it comes back. same thing with target. they brought it all back, but that is a problem because other things are happening at target. the actual drop was completely recovered. >> adobe had a breach as well. there were a number of accounts. >> 3 million credit cards were affected. jpmorgan had 0.5 million debit cards. >> target is more than just a breach. >> the t.j. maxx one is an

interesting example. it is a similar company in similar scale in terms of the numbers. they have more than recovered. they didn't even take that long. --youu all see a drop will see a drop, but it is usually low. they lost birthdays and telephone numbers. not financial information. that is a different case than target losing a credit card. they all have the same types of problems, they do not ever expects the stock price anyway. there is no incentive for them to worry about it. they do not get her when these columns happen. the market just move on. >> is too soon to tell with target. did you see the last that they were doing on business? what is good for target as they have this great excuse.

they had problems before this. the whole canadian area -- there stopped peace -- their stock peaked before this. now they can say we have this data breach and it will cause all these financial problems. that may or may not be true. >> all right. more titles than queen elizabeth -- >> i think she'll may has one. >> she has a lot. master of the realm -- >> one word, queen. we're thrilled to have you here today. when we come back, are they clients? wall street found people willing to borrow money with interest rates over 100%. paging jordan belfort. ♪

>> six years after the subprime loan market brought down the u.s. economy, wall street is back at it. we're talking about loans to people who cannot find credit elsewhere. interest rates can reach as high as 125%. you heard that right. 125%. investors are buying, securitizing, and selling off those loans. we have been looking into the subprime boom. this is seriously shady. tell us about this business. who is running it? how did this happen? >> the business has gotten up to $3 billion per year. these are loans to small businesses that are exempt from federal consumer safeguards. there are several big, legitimate companies that are doing most of the business. i focused on one called world business lenders. >> founded by?

>> a guy who used to run a mortgage company. to deutsche bank just before the crisis for almost $500 million. >> it was great timing. at the time of the sale, he negotiated a two-year, $17 million contract for himself. when he left, he started the subprime small business lender. >> he does have somebody from jordan belfort's ranks working with them. is run byining is a guy named brian herman who got his start under belfort, got his own boiler room. >> where are the regulators then? if you sell a company to deutsche bank for $500 million and pay $70 million the next few lendingtart the company

money at 125% interest rate to small businesses and employ the guy who can charm jordan -- came camp --dan belfort's how is this happening? >> they only lend about half of states. i could not figure out why, but it seems like some states have stricter laws about interest rates than others. >> michael corleone he did not need a license. >> what is the feedback? >> he is allowed to do it because it is small businesses, right? to put these people their personal assets on the line to back the loans. >> that is right. he will have people put up a car or house or property. they do make it clear you're supposed to use the money for your business. world business lenders is not going very well. as of last year, it was unprofitable. i was told by an executive that

they joked they would be able to make money if they could pay their salesman and reprocessed pontiacs. >> he did not want to comment. you got a comment from the lawyer. in serving the underserved small-business community along mainstreet usa, world business lenders complies with all applicable laws and endeavors to ensure positive experience for its customers. >> unless they are repossessing homes, cars, and trucks. >> which probably ends up the case a lot of the time. you have some specific examples. >> about 20% of the borrowers default as of last year. we talked with a family in brooklyn, who distribute cosmetics and wraps to bodegas. >> that is a combo.

covered.u >> [laughter] >> they went out to borrow $45,000 and ended up getting $12,500. >> they were sued for $23,000. the rate on their low was 110. they actually sued for a prepayment penalty on the assumption that since they had defaulted, they now own all the money right now. they would have to pay the extra prepayment fee. >> when you were doing research, did people compare the loans? >> i did. >> i am asking about you and i -- we did. i tried very hard not to draw the comparison. interestingly, i found that they found their usery cap. they found a company on 5th avenue that was a small business lender. they were backed by the mob and

charged five percent per week. that was a big reason they instituted this criminal usery law. a lot of the borrowers i talked to said -- >> you could get five percent per week. >> the borrowers stop -- >> they do need access. they do need to have an upper hand. it is not all bad. >> these guys said they should have known better. their business is going badly and they wanted a chance to keep it going. these guys gave it to me and i might've gotten out ahead of it shut it down earlier. >> who knew one company -- combo. like chocolate and peanut butter. >> we will talk about the prophet around paralysis on capitol hill. always making money off of the guy who is down. >> a man who has created a basket of stocks. >> and a first --

the wnba's land to get more fans in the arena. this is "market makers." ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> all combat. i am stephanie ruhle. >> and matt miller, in four erik schatzker. this is shaping up to be the most do-nothing congress in history. you may have noticed. and maybe a bad thing for the country, but gridlock is good for your portfolio. dan has figured out how to make that work. he is the head of policy d.c. policy a analysis firm. he has built stocks that profit

from dysfunction. he joins us from washington with details. thank you for joining us. let's talk first of all about this gridlock. is it really the worst in history? i don't even notice it anymore. >> gridlock is the normal function. the founders wanted us to have some sort of gridlock. this is shaping up to be an interesting year. i think that the gridlock will be very significant through the summer months. there have been two bills in the last few weeks with strong support. and energy efficiency bill last week was floated on the senate floor. this week, late last night, there was a patent bill. these are smaller. they had more support. it tells you that we are not going to get much done for the rest of the year. investors have been saying they're not doing anything in

d.c. we're just trying to figure out were those opportunities will come from. >> let's pick it down a little bit more. fannie is one of your picks. why do you think this is the right time to belong? >> first, it has been a great trade for the hedge funds. they're are making the same that that we are in this. thisu want to belong on function, then fannie mae represents that. if there was legislation that would be passed into law, there may not be much recourse for shareholders. the banking committee passed a bill last week. that will not get on the senate floor. there is no resolution in the house. that buys time for the court case to work its way through. a number of managers are suing the government for sweeping me profits. there's a belief that the asset managers they win that case.

that means there's a lot of value in those stocks. it has gone from one dollar to four dollars. most people believe there's probably more value in there. >> had he used the keystone with this? some i get, some are harder to parlay. since thee pipeline, president allayed any action for means itcourt ruling, will not be decided until after the election. if the republicans win, it will be approved grade if the democrats win, it will not be approved. climate change will be a big issue for the democrats. a company like this is benefiting because they are building an alternative pipeline system. conversely, the big play was a company that is going to build the pipeline.

he's like pretty big selloff after the president delayed his decision. there should be weakness in the companies that are working to fill that pipeline. traitor around pressure to raise minimum wage? >> there is. it is a little more dispersed than others. what we have done is an extensive analysis of which countries are lobbying the most for minimum wage thing increased. yum brands was the number one company on that. another one was starwood hotels. there will be action on the minimum wage in the senate as we go through the summer. right now, we're in the posturing stage. it looks like the republicans will win the senate. why would they raise the minimum wage to $10.10? that means it probably will not get through. yum! brands would benefit from that. >> i want to talk about best buy. they had their fourth quarter of dividing revenue. >> i use it as a showroom all

the time. >> i purchased up there. how could they be affected by gridlock? startre is a big move to internet sales that would put these retailers on equal footing with internet retailers like ebay or amazon.com. coming out of the democrats winning the 2000 election, there was a lot of hope that there would be this internet sales tax put into place. in fact, most of those supporters do not get done in 2013. here we are in 2014, it is still not done. the clock is running out. the senate passed a bill. it has been hard to get things through the house. the proponents of doing this will try to put internet sales back on a bill that comes through in the next month or two. best buy will continue to suffer from that. >> you do see a lot of internet

retailers charging sales tax. >> corrects. e, you locate in the stat have to start urging sales tax. amazon's presence is growing. ebay would be disproportionately affected. most users are through the internet and they have been fighting hard for that. best buy would be hurt by congress not passing a new internet phil tax. >> dan clifton, head of policy strategas partners. >> outperforming the s&p. remember last year, all the complaints. take a look at 2014. congratulations, dan. more violence today in ukraine. we will take a close look at how the crisis in russia has led to a bitter split between ukrainians. ♪

>> the st. petersburg international economic forum is underway. the annual summit is being overshadowed by the crisis in ukraine. ryan chilcote is there. are not of people who attending is almost as important as those people who are attending. >> i think that is right, matt. there are a lot of people not coming, particularly u.s. ceos. blank fine as a regular, he is not here. almost none of the ceos are here. the white house said they should stay away. most of those have followed those instructions. even the europeans, who have much tighter business ties with russia. even international organizations like the world bank, the ifc, they have all stayed away. intended toy quite send a message to president plans toat if he

continue what he is doing in ukraine, there will be a price. that price is isolation. they're using this forum that the showcase for what isolation looks like. >> ryan, how are the sanctions affecting the russian so far? it orople talking about complaining about it? or are they laughing about them? >> well, they laugh, they complain. i think they think it is a sign of disrespect more than anything, an annoyance. in terms of concrete consequences, we have seen depreciation of the ruble. i have seen the ceo of a company, a carmaker here in russia -- the ceo is a swedish guy. he said he thinks the russian car market will contract 10-20% this year. part of that is depreciation of the ruble. when russians go to buy cars,

they now have to pay more. they will buy less of those. consumer confidence is practically dead. people do not want to buy cars. they cannot get the loans that they need. loans.cars are sold with what you have is russia's own economic problems. overlaid, you have sanctions or the threat of sanctions, which is holding back investment. that is starting to bite. >> i kind of want to buy one of those. buddy.n one, i happened to buy one. $3500, ander car, they kept it for 10 years. they make more expensive cars now. they're partially owned by nissan.

they wanted to take a controlling stake, thinking abou t it. one of their other shareholders has been sanctioned. it is a complicated situations. i do not know if there and in a hurry to complete their takeover. >> all right, ryan chilcote. i just found them on ebay for 300 pounds. they can be had. >> on a bit. all right. from russia to ukraine, the relationship continues to work. they're approaching a historic election this weekend as the divisions are no more apparent donetsk. we have a tale of two cities. >> this is not exactly a city under siege, but with arms men, cars, it is now a common sight on its streets --

it is certainly a city on the edge. russian] these are supporters of the newly formed people's republic of donetsk. it sits at the border of russian. they were declared separate from the rest of the country, a move that the government in kiev quickly condemned. >> i used to be a ukrainian. iw, i do not even know what am. a separatist a terrorist, a rebel? anything, but a ukrainian. a former database manager, he says he got his uniform years ago for a few hundred dollars. after an army base in ukraine was ransacked, he got his guns for free. hasindependent declaration deeply divided residents here.

is a 42-year-old engineer, who has worked for a russian gas company. she says the pro-russian separatists are bandits who have broken the law. her 72-year-old mother disagrees. she says they are sticking up for the people of donetsk and the leaders in kiev are the real criminals. such just be its have made the have causeddisputes the city to rapidly lose steam. visited, like we this delivery business, told us revenues have dropped since the start of the year. it is just days from the national election, but there is no certainty the results will offer any resolution. if the standoff continues much longer, it may not be life austere, but it may be jobs. live --m joins a

kiev.us live from can they survive on their own? >> no. they trade with both ukraine and russia. if this republic is recognized by russia, it is likely that the ukrainians will close the border between ukraine and russia, to stop them from importing the goods they need. >> all right. thank you so much for joining us and giving us the latest. live, in kiev. >> coming up, it is a first. wnba unveils a new marketing plan aimed at one specific demographic. we will talk with the league president. >> stay with us. ♪

>> welcome back.

i am stephanie ruhle, joined by matt miller. the wnba has struggled to get fans and the league is trying something different this season. their new pride campaign debuted today and specifically targets the lgbt community. i would like to welcome their president to tell us more about this new initiative. the wnba has been in the game for the last 18 years. why come out with the strategy now? >> the lesbian body and has been with us since the beginning. it is an important part of our fan base. we have had different initiative throughout the years. we did some research earlier this year that told us that 21% of lesbians have been to a game. footie five percent have watched a game. we knew that this was an audience we really wanted to step up and increase our efforts. we have added some new initiatives and put them altogether. things we're doing

as a leak in us teams under this banner of wnba pride. >> did michael sam and jason collins coming out affect your decision? >> no. this is about our marketing initiatives and outreach yunnan ins that we think has great potential to grow our fan base and grow our viewers. >> it sounds like you already have a lesbian audience, as opposed to maybe other sports. do you need to have a bigger marketing campaign aimed at that demographic? >> we have a couple of marketing initiatives. his is one of a host of things we're doing. we're excited that cover girl has come on board with us. they are the core of our season ticket holder base. expand,to do amplify, and make our efforts bigger than they have been. there is a grassroots momentum, component.g

>> it may also be a demographic that is more dedicated than others. and maybe has more spending power. >> we have the most diverse fan base in all of sports. the lesbian audience is very important. families are very important to us. older americans love the wnba game. you walk into the arena and see the total population. we do efforts against to the market. >> you could isolate that older demographic that is also fans. >> i don't think so. i had the pleasure of going to a lot of wnba games all across the country. you go into an arena and everyone is there. to enjoy the game.

as i said before, we see older americans, younger americans, familileses. >> you do not feel like you run the risk that the bible belt conservative christians will say i do not want to be tied with this? >> i do not think so. >> then you do not need them. >> you never say you do not need them. i would hope that all will feel welcome in our games. wille excited that espn2 televise the first ever pride game on june 22. with espne a contract that goes out another six years or so, right? eight years, is it? >> 2022, yes. >> how else are you looking to get yourself out in the media? people are watching sports in so many different ways. >> first and foremost, we want to draw people into an arena. we're doing a lot of things.

life game is the first thing. that is when you get up close and personal with the game and the players. that, espn is our broadcast partner and nba tv. we really want folks to tune in and watch the games. for those who do not have a team, we have a live access feature so you can watch games on any device you've got. you can reach us ncs in any format. >> most of your teams are owned by groups that own nba teams. could the wnba survive without the nba? >> half of our teams are affiliated with nba teams that have are not. as we look at our business model, it is less about whether a team is affiliated with an nba team or not. it is really about strong and passionate ownership groups, a fan base that supports the team and their local market, a

community that comes out both as sponsors and fans to support the league. sparks were acquired by magic johnson, the guggenheim team. does it help to have them with the face behind the team? >> that was a great day for me personally and for the wnba. magic johnson is one of the greatest players ever. his roots in the l.a. community are incredible. we were excited at the league. our fans were excited in l.a. our players are thrilled to have magic as part of their ownership group. i think it will be fun to watch the sparks this season as a result of magic and the guggenheim group. >> congratulations. e is president of the wnba. >> everyone loves magic. >> my favorite pro basketball

player is a woman. i think she plays for tulsa. >> is approaching 56 sar. that means it is time for on the market. let's take a look at where the indexes are going. a little fluctuation after yesterday's big equities rallies. we are seeing gains on the nasdaq. one half percent. up 5 points. the dow jones gaining 25 points, 16,558. that is after we saw an increase in manufacturing activity in china. an increase in exiting home sales here in the u.s. we also saw jobless claims rise here in the u.s. as well, offsetting those gains. >> matt is back in the market is great. we will be back in just a moment. coming up, conservatives love them, liberals think they are the devil. we are talking about the koch

brothers and we will hear about the author of a new dock -- biography. ♪

. .

>> live from bloomberg head orders in new york, this is market makers with erik schatzker and stephanie ruhle. >> mcdonald's gets roasted. hundreds of the chains workers protest outside corporate headquarters demanding to be paid $15 or our. >> and they are at human iced by democrats and lionized by at least a group of republicans -- demonized by democrats and a group of at least republicans. who are the koch brothers? >> the princes of pop-ups. meet the co-owners of the stores

popping up all over the place. >> erik schatzker is on assignment. >> great to have you here. a lot to cover in the next hour. we have breaking news in washington. the house has just approved a bill to curb the nsa's power to spy on americans. peter cook is there. tell us exactly, what would this law do? this is significant because this is the first reaction by either house of congress to the edward snowden breaches nearly a year ago. the are concerned with privacy of everyday americans who are worried the government is intruding into their personal information. what this legislation does, again, is and be bold collection of phone records by the nsa as and as other business -- the bold collection of phone records by the nsa as well as

other businesses. there would be greater disclosure on the part of tech companies when the government asks them for information. but there is criticism of this legislation. tech companies say it does not go far enough, that there are still loopholes after changing intelligence from the committees and bipartisan support in both houses. take a listen to some of the debate. >> let me be clear. i wish this bill did more. -- colleagues who lamented the changes, i agree with you. to the companies that lament the sacrifices, i share your disappointment.

we had to make compromises, but this bills still deserve your support. >> this bill would still allow the government to treat americans as suspects first and citizens second. >> there was great debate on the isor about whether the go the right balancing act between privacy and national security. the white house backed this legislation. the senate is working on something comparable. complete in the house. >> thank you for giving us the latest, peter cook. >> in thailand, the army has staged a military coup. a six month political crisis had paralyzed the economist and hurt the economy. we are joined on the phone by oner sean -- joel gershon

the latest there. how was the mood? are people concerned or terrified or going about their business normally? here in thailand, things are not as you would imagine. this is obviously a big aiding, but they have had between 12-19 coups in the last 70 years. some people have been choking on the internet that right now it's what day of the week is it? thursday, there should be a clue. 82 -- a coup. this is not a complete shock because of her but majored political -- has been major political -- this is not a

complete shock because there has unrest hereolitical for a few months. for,mmediate thing to look i would say, are how the eu and the u.s. respond because they .oth have issues they were warning against this. they don't want to see this. they officially want to business or might have economic sanctions , but nothing has been decided about that yet as far as i know. coup and wehe word think it must be a horrible thing, but this country was already an economic and political turmoil for six months . considering it's history, is it necessarily a bad thing or could it lead to a more peaceful thailand?

>> well, first of all, it was a bloodless too. there was nobody heard. there was no actual violence. the military took over a weekend government, known as the caretaker government. permanent government had just a couple of weeks ago been removed from office because of a court decision, a supreme court, constitutional court decision. it was already a weekend court in the general two days ago declared martial law. this was not a complete shock, but it was a bit of a shock. happens, theup military steps in taking over the airwaves. there is no tv. there is a curfew. it is a big deal. i did not mean to be flippant, but at the same time, it is not violent and people are waiting to see what happens.

whether it will be better or not remains to be seen, but it has not worked out as expected. the last one in 2006 did not get the results anybody wanted to see. >> got it. gershon, thank you for joining us. >> j.d..com has begun trading. it started at $19 and is now $21 .75.five cents -- $21 >> this is a chinese retailer whose model is similar to amazon's. it is valued at $26 billion. it had a richer valuation than amazon.

the interesting thing here is that it was indicated to open at about $23 per share early on, but it did not open at that level. when it finally did open a , a kind of stayed there. it has hovered around the offering price. melie biggar was telling earlier that there is a scarcity aspect to the trade. the company only sold six percent of shares in the public market. there is not a lot there for people who want to get their hands on the chinese e-commerce story. of course, everyone is waiting for the big company to list, alibaba, and there is no word on when that will happen. i saw them posing in front of the golden bowl in a photograph.

ll in front of a photograph. thank you for giving us the latest. there you go. i am truly working with a television professional today, matt miller. speaking of beef, let's go to mcdonald's, the mcdonald's shareholders have approved the ceo's nine $.5 million compensation package this morning at the annual meeting. meanwhile, workers brought the issues of their wages front and center in two days of protests. mcdonald's headquarters in illinois. what was the maid at the meeting? >> the mood at the meeting does not compare to the liveliness of the protest we have seen in the last couple of days. one obvious reason is that there

were shareholders inside the room, generally pro-mcdonald's folks. also, media was not permitted at the meeting and all the questions had to be prescreened. shareholders had to submit their questions ahead of time. they were prescreened by mcdonald's as they tried to control the message. question and answer portion of the meeting was not as confrontational as we had expected to see. still, they did address the issue of fast food worker wages. take a listen. mcdonald's probably provides more opportunity than anyone i have ever seen in that regard. we have people that have been outside and know what we respect the fact that they want to challenge us relative to wages. we continue to believe that we pay fair, competitive wages, and we provide opportunity, job

opportunity, and training for those entering the workforce. we are trying to be a really great employer. are mcdonald's workers specifically asking for? i understand that he is making nine and a half million bucks, but you cannot possibly say that is job function of the ceo in line with somebody getting fries and a burger. >> absolutely, and that is why we saw him handedly win approval in a proxy vote, 93% approval of his compensation package. well he is making that much they, they say in a got -- say mcdonald's is neglecting their own workers. workers are demanding $15 an hour and a right to assemble without fear of retaliation. they're here to show that they have families, they are adults, and they need to be able to make ends meet and right now that wages not enough to help them do

that. that is what they were here for. despite their best efforts to make a big showing, what we heard from don thompson is about as much as he would say when it comes to addressing the issue of low wages. >> for more, i want to bring in david hank is, the vice president of food-service consultancy at technomic. us through the issue. is it the minimum wage issue? is it the problem with their new slogan or do americans feel like their families eating fast food? >> mcdonald's is certainly vulnerable to the message of a minimum-wage increase. i think we heard the ceo address that. there may be public pressure that causes him to do something about it. at the end of the day, its market force supply and demand for the labor. faces a couple of

challenges. one is conventional. people know what to expect there. but when you look at some of the other burger players and quick service restaurants, they are doing things unconventionally with food like the doritos tocco and things like that. mcdonald's menu has grown to about 100 20 items. it is not just burgers and fries .ut shakes and coffee and then competition. the burger category has been flat, but when the growth -- where the growth is is other foods, movie burger, smashed burger, burgers in an upscale environment. and that is where mcdonald's is struggling. >> what makes a crave for bowl

food? i mean i have not had -- i cannot believe i have not had the tocco doritos. every otherve had tocco at taco bell. but what makes a crave a bowl food? at the burgerok category, we seeing higher-end ingredients, fresh, never frozen. fresh cut fries. you see a lot of chains competing on fries. at the end of the day, a lot of it is about taste. a lot of it is about freshness. a lot is about customization. >> how can they offer low, dollars kyle -- dollar style menu offerings of what people want is fresh, never frozen -- >> actual beef? >> i think you have hit the nail on the head. big player onthe

the block. premium burgers, angus burgers, things like that that have not really resonated with consumers. consumers expect a certain price point and mcdonald's and i think it is hard for them to move consumers up that value chain and get them to pay a premium for their products. minimum wage debate affecting consumers? >> the people going into mcdonald's are not competing in the same wage category is people competing in -- people going into starbucks. the core of the mcdonald's consumer does not have disposable income where they are willing to pay and next are two dollars or three dollars to get their burger and fries. the question is if mcdonald's

is willing to put the money into its operations that may be paying people more, maybe giving you an all beef patty or two all beef patties -- >> special sauce -- >> lettuce, cheese, but really, create crave a bowl food. put together food that looks like somebody cared about it and you have to pay them a living wage to do that. >> i give mcdonald's credit. they have put in a lot of money to bringing on new products. when you look at their menu, they have 120 items compared to in and out burger that has 15. part of their challenge is growing their menu and creating crave a bowl items. be able to create those items and serve people in the time they expect. it is challenging. >> well, in and out burger may only have 15 items but i want every single one of them.

thank you for joining us. david hingis is the vice at technology. >> there are so many upstarts. >> what do we? >> pop burger. coming up, eight straight quarters and counting. that is how long ibm's revenues have been falling, almost as bad as best buy. >> plus, we will speak with the author of the new biology -- biography about the koch brothers. ♪

>> welcome back. when you think about the future of intel, you might think of pcs and laptops, but the new ceo the makeruture is in

movement. cory johnson caught up with them earlier this week at the maker fair in california. >> i was born and raised in silicon valley. our backyard was an orchard. old silicon valley. i think this is the future. so, this is the galloway on board. >> that is a low powered ship. -- in the a centered center. it's designed for just this kind of environment and this kind of space. for the maker. we're starting to use it with oracle and things like that.

>> do you see the makers gravitating towards this chip? >> we are sold out. this thing has taken off. we gave 50,000 of them away to universities. ?> really ech [indiscernible] >> it seems like if you were to have asked 10 years ago what the direction would be it would be pc, pc, and then pc. now robots and stuff like this. intel you make sure that

is part of this movement? >> i think it's by having days like today. we have a whole group focused on this. these are the groups who are the -- next steve jobs, next google. these people are being raised with technology and innovation and not as what we've seen over the last couple of years. aware of intel technology and what we are capable of doing, and if we are not aware of what their needs are, we're not going to line up together. >> that was cory johnson's exclusive interview with intel's ceo. >> ibm dominated the computer market for decades. it has been facing eight

straight quarters of revenue decline. plummeting hardware sales, concerns about financial reporting, and today, cloud computing. reports on why big blue just can't catch a break. he joins us now. they almost got completely out of the hardware business. why can't they deal with the -- the cloud? companies are not buying big. >> what do they have left, by the way, after selling the computer business? >> they still have high-end servers that they say are ready for the era of big data. as hardware sales decline, the software that runs on those computers and the big fat services contracts that ibm gets

to run those systems and to tell those companies what to do. the cloud is changing everything. the ceo of ibm gets it. she says this is going to transform everything. the risk for them is that even if they do make up lost ground against amazon and others, when they get there rices might be driven so low by competition -- there aren't the kind of fat margins that ibm relied on in the past. >> does she have a chance to win or is this a behemoth challenge? betaking on the cloud would a herculean task. people think she is smart and vigorous. that would be enough of a challenge. but i think she has to also rely on her predecessor.

revenue is going down while earnings are going up. about half of analysts inc. ibm is going to hit the revenue in 2015. the question is what kind of company are they going to have left when they get there. i have talked to a lot of short-sellers at ibm. they throw the phrases around a to from share buybacks non-gap accounting or nonstandard accounting. there are only one in four analysts that bloomberg tracks. they are the only member of the doubt to -- of the doubt to lose value last year. and on the other side is warren

buffett. that's a pretty remarkable person to be going up against. >> thank you so much. cover of businessweek. you want to catch it.

>> welcome back to market makers. i am stephanie ruhle. >> and i am matt miller. i was waiting for the prompt her to roll to remind me who i was. who.n burgundy, that's >> few families in america are as controversial as charles and david cook. ch.y are each worth -- ko they are each worth more than $50 billion. they have spent a huge chunk of

that aruba last -- over the last few years on campaigns. make that ant to issue. >> the koch brothers. the koch brothers. the koch brothers wanted to bait? it is here. we have done it. -- the koch brothers are spending hundreds of millions of dollars telling obamacare is bad for them. these two brothers are trying to buy america. >> wow. there is a lot you may not know about this family including the fact that there are actually four koch brothers. the senior editor at mother jones is the author of a new biography, sons of wichita, how the koch brothers became america's most powerful and

private dynasty. he joins us now. the first thing i thought about when i saw your book was it must have been a to research, write? i don't think the guys from the koch brothers want to talk to mother jones. >> they are an extraordinarily private family. it is not just mother jones. they don't talk to many journalists. >> but they did talk to you. >> i talked to the eldest of the four brothers. these guys also spent a good 20 years duking it out in a series of legal batters -- battles. >> of the eldest is not david or charles. >> his name is frederick. he is not really estranged, but he is not involved in the family company. .e is an arts philanthropist he has restored a fabulous series of homes. >> he is the

cool one. >> he is a really good guy. and that he is a really cool guy. he's like a victorian gentleman. not as wealthy as the other brothers, but still quite rich. >> quite rich. a hundred millionaire as opposed to the other koch brothers which are billionaires. >> where does their money come from? they say it's from oil. what do you say echo >> i found that these guys are true believers. charles and david were highly involved in the libertarian movement of the 1970's and 1980's. these are staunch free-market guys. they don't want subsidies for their company. they don't want corporate welfare. they don't want welfare for the poor either, but they are trying to be consistent in their believes. in their beliefs but not with one another over

the family fortune. it was brother against brother in a nasty way. >> one of the most brutal family feuds in history. >> at the scene. -- set theharry echo scene. who versus whom? >> charles and david in 1979 in 1980, coke industry is starting to come underscore name by a , includingagencies the irs. bill starts to get concerned about the direction it's going in. private company and charles is plowing almost all of the earnings back into the company. --er shareholders attempt to basically, a boardroom coup to depose charles. the whole thing blows up. bill gets fired from the company.

this ignites basically a 20 year the brothers with frederick and bill on one side, charles and david on the other. >> and where are they now? >> charles and david are running coke industries. his own successful company. >> i mean the relationship. >> bill and david were fraternal twins. they were able to rekindle their relationship. charles and bill, not so much. there has been some slight rapprochement in reach in years, some kind words exchanged. nasty.got so they were digging through each other's trash. they believed moles were in each other's companies stealing documents. bill tries to whip up an investigation by the senate and a whistleblower lawsuit. >> and if this is how they treat their own family are they surprised int they have been created

character by the media? i do think there's a prized by the way they are per trade in the media. i think -- they are surprised by the way they are portrayed in the media. i think they are surprised by being portrayed as republican kingmakers. these guys are libertarians. there is only a small subset of issues on which they agree with republicans. is usingsly harry reid them as a political tool. do they meet any of these politicians in washington? they are private as far as journalists are concerned, but surely they talk on the hill -- >> surely their lobbyist do. they used to have much better relations with the democrats and , you can see years what's happening on the senate

floor with harry reid announcing these guys day in and day out. and on their website they are firing back at harry reid and other democrats. >> is there any limit to what they will spend in 2016 echo >> it is not them that's pouring so much money into elections. it is really a network of wealthy contributors they have brought together. that is why they are so powerful. >> you those wealthy contributors want to stay altra private because it is the face of the koch brothers that the world wants to hate. >> a lot of them would want to stay private and that is why this money is funneled through a daisy chain to obscure funding. >> i wonder about the libertarian aspect of it because i think a lot of people on wall street find that easier to embrace them the kind of tea party republicans who seem to want to control your social life as well.

one of these brothers ran for vice president on the libertarian ticket in 1980. do they get behind that? they are so closely linked with the tea party, but the tea party is not a libertarian group. ,> it is on government spending but on social conservatism -- >> they are so on the other end. free-market libertarians, there are a lot of new york wall street spurs who feel that way about the financial issues but not the social issues. for charles, this is been his project for going on 50 years, to mainstream libertarianism. they are not social conservatives at all. their antiwar, pro-civil liberties. free-market are issues. it would be interesting to see them putting their money where

their mouths are on issues like immigration and reproductive rights. that might really change their image. now that you have done his research and written the book, has your opinion changed? what do you think? >> i was always kind of impressed with these guys. i never had a negative opinion of them. through the process of doing them i gained respect for in a lot of ways. charles is kind of a once in a generation businessman. what he has done a coke industries is fairly astounding. koch industries is fairly astounding. fund kid, butrust he took a company that was worth $50 million and it is now worth 115 billion dollars. >> have they read the book? >> i am told david took a copy

to palm beach. >> thank you for joining us. the author of sons of wichita, available at bookstores now. pop-upup next, a phenomenon. wait until you see who is coming out with their own surprise store.

no longerstores are just for mom-and-pop shops. big stores like amazon, nordstrom and google are getting in on it. she has created over 70 retail experiences for major retailers including mark jacobs. we welcome her to market makers. new york, l.a., the hamptons. does that mean pop-up only works for the one percent? >> absolutely not. you see them in cities that have high foot traffic, but they are

happening nationwide, across the world, london, australia, new zealand. it is definitely a paradigm shift that is international for retail. >> why? what is so special? >> there is a customer psychology that retailers have to be able to touch upon. brick-and-mortar, they are limited in being able to deal with that. so this allows them to create something authentic and aspirational to create a deeper relationship with their customers. >> it's more exciting sometimes to go to a pop-up store. you see it where it wasn't there before. it might not be there next week. but how do you pick a location, the right time, market the fact it is going to be there? >> absolutely. it is definitely a process. we sit with our clients before we start and say what are your goals because that will

determine the answer to a lot of the questions. is this customer appreciation or then we looked at the most advantageous place to pop up. >> what about the strategy behind where you decide to pop up? >> sure. a client of ours is a dallas-based online retailer for men. they want to test the new york market. we say where in the city should we pop up? maybe soho makes a lot of sense. it's a top priority of sales and customer graphic in -- if your top priority as sales and customer demographic is midtown, and popping up in midtown makes the most sense. >> to certain products work better than others? >> for sales, you definitely

want to have something that is an easy impulse buy. you are starting to see a shift where luxury retailers are doing it as well. chanel is doing one in aspen this summer. but that's all about the levering and aspirational lifestyle you can step inside of. >> chanel in aspen can afford to pop up. >> absolutely. >> i wonder if there are businesses that operate as pop-ups all the time as a marketing scheme rather than someone who is online but does it once in a while. >> you see that happen all the time. food trucks kind of have that model. they travel seasonally. it makes sense to be here during our summer months and then they travel to the west coast. you see that with businesses like ricky xoma halloween stores and stuff like that. if there is a seasonal part of your business, it makes sense. >> how hard is it to get the locations? here in new york city where rents are sky high, where it is

so tough to get locations, can you actually find places to use yucca >> it's definitely getting easier? >> ethier? -- easier? >> there is a shift that landlords can no longer ignore. retailers don't want to sign long-term leases. sites now like the storefront that we are on the advisory board of where it is like air b&b or short term real estate. can find places across the country to book for short-term purposes. >> very cool. for joining us. >> thank you. >> we're going to take a quick break and be back after these commercial messages on market makers. ♪

>> look at that. >> a great midtown day in new york city. spend twon great to hours with the matt miller. i am sorry there is not a commercial break webcam because we have fun during those moments. >> have you not been banned from saying that? >> i have been banned from saying it's better during commercials. >> it's a different experience. is about to start. you know what that means? >> white? >> music festivals. are not ready with the monitors so let's get a check on

the markets. j.d..com is up. it is not a big deal as it could've been. the market seems to like it. i thought the gold bull was a bad sign. it looks like a good one. tomorrow, we are talking bonner rue. you don't want to miss it. matt will be back and i will be here.

>> let's get you to on the markets right now. u.s. stocks are making another

run to match a high set last week. manufacturing and existing home sales overshadowed a disappointing report on joblessness. the s&p is about six points shy of its high. alan, the vix closed below 12 yesterday. i think that's the first time since august of 2013. i understand the call open interest on the vicks is picking up. >> that is where the action is. that is where people want to protect themselves. there is more upside potential than downside for a lot of people. if you look at the vicks, it has --n trading between 14 day 14-12 for the last few weeks. was in low that i have 2006. we are still a long way away

from complacency. of the 300 thousand vicks options traded today, 80% were calls that may just be protection. >> 939 was the bottom. incredible. volatility. about are we more or less likely to have a volatility event? >> there are always issues that come and go. but every time the market acts, it reacts. the market is going to go up until a dozen and that is where we are. we have the market going up and volatility decreasing. that is the relationship that everybody looks to see how they play against each other and these are trends that are very entrenched until proven otherwise. looking at individual names including best buy. it is rallying after reports that it topped analyst

estimates. but if you look at a chart, it is stuck in the 20 sixth dollar range. what do you see on the options market for best buy. >> best buy has a black eye. it is down significantly. it was a 44 just last november and got to the lows this year. it has been between 22-28 since january. there was action on monday when best buy was down five percent. there was some option action. $1.18 as a new ask is a new buy. today those options got to be worth two dollars, so somebody had a very nice play. today they are bullish as well. a 6000 contract trade went through on that. it looks like people are positioning for best buy to get better in the long run. >> 29 would be the highest level since the stock traded around

the high 30's in january. ok, you also have a trade for us on groupon. those shares are down about 50% in 2014. tell us your strategy. >> it's a probability play, again. level inbreakdown 2012, a breakout level in 2013, and now we get that six level. i want to buy this stock five percent lower. i sell the puts for june, taken $.35. the low for the year is $5.19. if i don't, i get a five percent return on my risk in 30 days. it's a pure probability play. i want to be in groupon. did not make new levels of volatility even though the price hit new lows. that is usually a sign that the bottom is coming. blockbuster 2013, one

hundred 42%. >> it is very much a momentum stock. but from a value standpoint, buying this stock at five dollars $.65, how much downside is their? the upside target is $10? i am positioning for that if and when it comes. >> thank you so much. we are on the markets once again in 30 minutes. money clip is up next.

>> welcome to "money clips." we are taking a look at today's menu -- world violence is spreading in eastern ukraine. we will spend the day in the city. we will hear from the ceo. the president promises a full investigation of the v.a. --ng from small to big mexicue