tv Street Smart Bloomberg December 16, 2013 3:00pm-5:01pm EST
a $1200 sweater to go with your $1200 puffy coat. "street smart" is next. ♪ >> stocks are coming off their worst week since the month of august. a big rally here as the fed decision is 48 hours away. welcome to the most important hour of the session. 59 minutes until the closing bell and we are scouring every market. it turns out factories are operating in this country at the highest rate, 79%, highest rate since 2008. that is good news. let's take a look at the market. there it is. we shot up early this morning. we have been up all day. same story in europe. up 145 points on the dow.
europe was up almost two percent. they also had good manufacturing data in europe. take a look at oil. when you have a strong manufacturing sector, you have strong demand for energy. that is why oil is up $.85 today. at the yield on an 10 year, you might expect that the 10 year might be way up , but it is only up one basis point at 2.88%. notion ofis whole growth and tapering is already priced in. click there you go. julie hyman is keeping and i on the stocks ahead of the close. be acquiredreed to for about six point $6 billion. it used to be part of hewlett- packard. the chip company is getting a big on that news, 39%. a group is selling its jet leasing unit, international
finance lease corp., two a abouty called air cap for $5 billion. there were some questions in the past because they originally agreed to sell it to a chinese group and then there were questions about whether the deal would get done. now it has gotten done and those shares are up. finally, twitter is going in the opposite direction. it has been downgraded to underperform. wells fargo saying maybe people are still overestimating the ability of twitter, and in particular the engagement of its users. wells fargo is saying a lot of those users are month to users and do not go on to twitter very mock -- very often as all. >> a federal judge just ruled that the nsa phone monitoring former verse revealed by contractor edward snowden is likely unconstitutional under the fourth amendment. this comes one day before the deadline the nsa has to present a task force to president obama.
and a day after keith alexander explained to 60 minutes that the goal of the nsa is not to read your e-mails or listen to your phone calls. there are three key issues at the four of the nsa surveillance program, privacy, security, and price. of the nsaore surveillance program, privacy, security, and price. here are our guests. tell us about the ruling that just came down. >> no ifs, and, or butts about it. this is a big deal. this is a district court judge calling the core of the nsa violation capability of the constitution. it will be a lengthy appeals process. it is the first ruling that casts doubt on the administration's rulings that the fourth ae samemelast week, y interesting development.
firms,ajor tech facebook, microsoft, apple, google -- usually archrivals coming together to join up on a policy statement telling the administration, asking them to work with them in these kind of situations when it comes to their work on these programs. obviously, they are seeing major blowback because of their force purchase a patient in these programs. tech companies need the administration -- because of their forced participation in these programs. tech companies need administration to help them out. , theasked keith alexander head of the nsa, about this just a few weeks ago. let me play his response. >> we have great insight into terrorists. if a terrorist is coming into the u.s., how do you know that is a good number or a bad number? the nsa's job is to help you understand that it is a bad person calling and give that to
the fbi. we do not want to collect the content of u.s. persons e-mails or phones. but that is hyped out in the press and the press says they must be listening to everything. got a very complicated communications challenge right now. he has a program that is lawful, but not that many people understand the law, and much of the law is, in fact, secret. they are trying to explain it to the american people and get ahead of this story, which ever since this snowden revelation began, they have been behind. had snowden himself not come out in the first place, we would not necessarily know any of this. >> that is true. this has been a remarkable set of disclosures. people who follow this very closely know the contours of these activities. you cannot avoid the conclusion, at a minimum, that the disclosure -- the disclosure of this information has invited public debate. >> it will be a while before
there is resolution to this and it has to go through the normal court proceedings. in the meantime, a lot of americans are saying they do not like the idea of the nsa accessing their information. i wonder if there is a business here come a an opportunity. who canre a company protect an individual's identity and information, that has got to be worth something. >> it is worth something. there are plenty of companies already selling these types of services. the problem is, it is not just the nsa looking for your personal identity. there are both legal and nonlegal entities looking for your identity. and it is not very expensive to get a hold of your stuff. for -- >> for example gekko >> dell is one of these -- for example? >> dell is one of these companies looking to protect your identity. all of the usual monikers of your identity, plus your they account information.
for $25. >> could anybody use this service? >> it is not a service you are using. this is how much it costs in the black market. this year, if you're going to buy bank account information that has $70,000 up to $150,000 in aid, it is $300. price it was in 2011 friday, 7000 dollars. >> then why aren't we seeing more bank accounts getting hacked? >> there are. there were an enormous amount this year. some 800,000 make accounts were hacked this year. >> in terms of monetary losses, though, the bank absorbs them. that is why it is not passed on to the consumer and why we have viable electronic commerce. banks essentially insure them at danced losses of this type -- insure them against losses of this type.
it is why you get these phone calls if you have suddenly travels abroad and made a couple of purchases. they will freeze your account and you will get a phone call and have to resolve it. that is the countermeasure to this kind of trade that julie just described. security for the white house, how many entities are providing the data that julie is talking about? >> she is talking about illegal data. there are legal providers and then a black market. frankly, i don't have any idea. nobody has any idea. it is a quick -- completely opaque place. on through an encrypted part of the internet with some encrypted e-mail and you do your transaction. you pay them off in bitcoins and then you receive an encrypted file that is then decrypted. >> what this tells you is that more than needs to be done in
the way of cybersecurity. done in thes to be way of cybersecurity. >> that has been clear for several years. it is still something the private sector is struggling with. the data about the decreasing prices, it is sort of like the price of drugs on the street. you can get a sense of the effectiveness of your countermeasures and on supply and demand by watching. the data is very important. today,the judge's ruling what the nsa has been doing may be unconstitutional. what of that? rex there are many of -- >> there are many opinions in the judiciary and they often disagree. this judge is disagreeing with the ruling in 1978 and with the ruling of the fisa court, which is a special part of the judiciary, which actually has access to all of the classified information. the judge that ruled today does not have access to that classified information. it will wind its way into the
process. i think that is -- the judge knew that, which is why it was immediately stayed. >> do you know how long this can take? >> there are similar cases in multiple federal district. this is one -- only the fourth case along these lines that i know of, attacking the telephone he program. telephony program. >> thank you. coming up, built to last. adam is looking at strong manufacturing growth around the world. plus, elon musk makes his way over the great wall. we are talking about chet -- tesla in china. ♪
and action.insight i will give you two of the many bullet points we got this morning from the various economic data sources around the world. u.s. production rise in the most in 18 months. you think that is good, how about over in europe? manufacturing hit a 32 month high. this should not be a surprise, because if you look at u.s.acturing for both the and europe, shown here in the white and the yellow, what you can see is very clearly is that we have had a very clear bottoming trend and then turning up over the last 11 to 12 months. it is probably why we first started hearing about tapering back in may and then the fed got cold feet. if you look at the data, it has been very clear that has what has been happening on the
manufacturing front. but we decided to do, because we have to figure out how to play this thing, is we scream for the industrial companies both here in the u.s. as well as europe that have the highest earnings growth forecast for 2014. here they are. some of the names you know, some of the names you don't. them are in europe, four are in the u.s. what is curious, again, -- six europe.are in isn't that surprising echo for all -- isn't that surprising? for all the talk about struggling europe, growth is coming from their. six industrial companies are in packaging. they meet packaging for other businesses. that is very good. do you play it?
i will make this one very easy for you. ishares, it is up this year. it is crystal clear, that uptrend of what is going on there. 35%s about 50% u.s., european, and the balance is mostly in japan. full of good ideas. our closers as a new year means aen better -- our closer says new year means even better market performance. dd -- and gdp growth is going to be two percent by the end of next year. good economic news out there already. you think it will continue. what sectors will benefit the most? that we thinknt impacts gdp is spending. when you look at nonresidential spending by corporations, and part of that is by manufacturing, we have that
number from 2.4% to over four percent. strong growth. we also think the consumer is going to spend as well, but in terms of impacting the gdp numbers, we think companies will spend. >> why is it that companies will spend now? what will encourage them to do that, overall economic growth? >> here in the united states, as well as globally. emerging markets have slowed down, but they still have decent growth. with global gdp projected to be over three percent, we think that will be part of the impetus for companies to spend. >> and is this the result of, in effect, pent-up demand? companies have not been spending in the last several years. they have been saving money and not been hiring. and now they are starting to invest? >> sure, i think there is some confidence. if they had more confidence in washington we might get some more hiring out of them. but balance sheet are very geared up to actually move.
if we have a better economic environment, we will get a better earnings environment. a better earnings environment needs to higher stock prices. >> it sounds like a preview of what we will be doing later in reaganomics. i have written about this. of lack ofh a year clarity. we are hoping the economic data will get better. >> e4 we go to break, your top sectors for 2014 -- before we go to break, your top sectors for me 14? energy, and industrials. betterk they will do globally. >> not just here in the u.s., but globally, which is really the point of -- >> what you were just talking about. >> the data is playing out. with us.remain
although the company has been taking pre-orders since august. it costs $40,000 to reserve your tesla. i'm sure that goes toward the total purchase price, however. $200,000 for a car. >> that is double what it is here. >> exactly, because of very high import terrace, as you might imagine. terrifs, as you might imagine. they expect to sell about 10,000 units in europe, and about 5000 in asia. but he said on the conference call that china is such a wild card that he doesn't know exactly what is going to happen there. it could be a much bigger number, but it is a steep price to pay. that is a monster number. the chinese have been resistant for a long time about letting non-chinese producers come in and support.
they want to start their own businesses. >> that is right. and this was assembled almost completely in california. but a lot of the parts inside this tesla do come from different countries. the batteries, for example, are made by panasonic. a tonon musk has ordered of those batteries from panasonic. they have a massive contract for 10 times the amount of batteries he has already used. he expects demand to grow and it will come from somewhere. this is the kind of car that the chinese really like, a big limousine in which they can be set -- be chauffeured. and the model x, which is the oversizedv, really station wagons these days, is what the chinese want. if he gets it over there and they get a test -- a taste for it, they could end up buying a heck of a lot. it has been dead money for
the past several years. does china come back this year? is that one of your themes? >> within an emerging market you are not live that bullish. it is more being selective. china is a market where willing to participate in. but the indexes we look at do not really reflect the local market. they are so concentrated in the banks and the properties that you do not get a sense of some of the underlying companies that are growing due to the growth in china. but we are participating. >> a consumer story. >> some breaking news, herbalife shares have been halted. this is on news that the company 10k'sst filed its amended 2010, 2011, 2012. according to the company, there are no material changes. this is significant because earlier in the year in april, its auditor, kpmg, stepped down
because of insider trading. rice waterhouse coopers came in and had to re-audit everything. this is the result of that re- auditing. davidson is reiterating its bullishness on this company. they have been bullish since the start. herbalife has been a big source of drama, shall we say, on the street. and bill ackman has been short on the stock and carl icahn has gone very publicly long. up next, the box office has seen plenty of action this holiday season. how can you play this one before its debut? the triple threat is next. ♪
raise $100 million in ipo. really impressive gains this year that could keep going strong, after all, a blockbusters opening on christmas day. is it time to order up some theater shares with certain -- with your popcorn and soda? what do we know about the business? let's say, amc. >> amc is trying to position itself as the new amc. the old amc spent a lot of money building out theaters all across the country. these massive complexes that could house 25 or more screens. picked up a lot of debt along the way. part of the reason amc has been trying to go public for a long time now is to deal with some of that debt load. we have seen a number of stories in this lead up to the ipo about the new amc having these bigger
seats. you can have certain theaters were you can have dinner and drinks. maybe they charge you a bit more the 3-d films. they are going for not necessarily bigger is better, but just better theaters over all. >> what is it about the timing? why now? we know as john pointed out they do want to get rid of some of the debt. what about the american right hospitable too be a company like amc? >> this is the fifth consecutive year were box office revenues were over $10 billion. industry fundamentals have never been better for the industry. as you mentioned at the outset, companies like in a mark and regal are all generating cash flows. -- righttry is right for investors to come into the market. strongendance trends are and more people are going to the concession stands. >> the concessions, ultimately
that is where people would -- where they make money. people think they are making money off the movies, but that is not the case. the studios typically make most of the money off the movies. they are making money off the concessions. part of the box office numbers, but you are right. you want to give people a reason to go to the theater today. how many other options do you have as a consumer of entertainment today, especially movies? officerue that the box attendance has been pretty strong, but the number of people going to the theater is debatable. a lot of times they are just spending a little bit more money because of the 3-d story out there. ande is certain appeal you've got the parent company trying to use some of these theaters and its development in china. that will appeal to the global growth story. >> sam grobart just to the story
of the day on how terrific some of these new amc theaters are. i want to go over to adam, who's looking at the valuation potentially of this company. what do you see? >> this would be right in the middle-of-the-road. and we showedtors enterprise value to cash flow. , it iserprise value is actually pre-simple. you take the total value outstanding plus the total market value cap and you divided by cash flows. just trying to put multiples on these things because all these movie theaters have a lot of debt. amc is 7.9 times, right in the middle, and actually toward the lower end of the range. groundwork for some upside. >> there have been impressive gains for some of these movie theater chains just this year. if we anticipate that momentum continuing, how might amc actually fair when it comes out? >> you can understand why they
are striking when the fire is hot. carmike cinemas and regal entertainment -- look at this. carmichael is up considerably. regal is up 40%. , you can understand why they want to sell now. people are spending money. >> it is amazing when you think of all the choices out there. think of netflix, sitting home and watching a movie on cable. but people are going out to the theaters and they want to see these blockbusters. an encouraging sign, for sure. thank you. coming up, herbalife shares have resumed trading. let's take a quick peek. up better than nine percent. they are up seven dollars as they resumed trading. of course, they just filed their -- 2010, 2011, and
by now, we are celebrating the 12 days of bitcoin here at bloomberg. in the last week, i bought a bitcoin, spent a lot of it, gone to a bitcoin meeting, got more bitcoins, gone to brooklyn, bought a plane ticket. i went to brooklyn. that is what you do when you get a bitcoin. today we are talking about investing in bitcoin. barry silbert is here. sharesmous for trading before their ipos, but also you have started a bitcoin investment trust, a fund for people to invest in. and you have raised exceed million dollars? >> yes, we are up to $60 million now. we decided to create an investment vehicle modeled after the spider gold gld. that it isnce is bitcoin and his private, for now at, at least. >> and does this have to be approved by the sec?
or is this completely off their radar? >> we are regulated by the sec, but it's not open to retail investors. it is only open to accredited, which are high net worth investors or financial institutions. the -- >> the headline that got attention last week disability will accept bitcoin investment in its ira's. and everyone immediately pictures granny in boca raton putting all of her retirement money into a bitcoin investment. it is a risky investment. >> it is risky. i how we seek weight it to an early start up. to anlways equate it early start up. you will either lose all of your money, probably will lose all of your money, or you will make a lot of money. you could anticipate that something much better, i.e. in itunes, spotify is going to come out. >> like a ripple?
>> something. >> keep in mind that bitcoin is software. it is a protocol and newer versions are being released every month. it's on version eight right now. bitcoin will adapt to whatever the market demands. there are a lot of currencies out there. i see bitcoin as the winner. it has great brand awareness and the monetary basis is about $10 billion right now. one metaphor that is a great one that i've heard from others -- can we think of, in that sense, bitcoin as the mp3? and then all of the itunes and spotify that came on top of that as using the underlying architecture. >> exactly. bitcoin is a digital currency and a transactional protocol. i don't think there is any debate as to this transactional network, how big and disruptive it really is.
a lot of people are very excited about it. it going -- bitcoin as a disruptive currency, that is where you talk -- you hear people talking about ponzi schemes and that sort of thing. people who invest in gold will start investing in bitcoin. then it will become a global currency. then i can believe -- then i believe it will basically become a global transaction network that will take on western union and money gramm and it will change the way we think about money and the way money moves around our system. this fact that you can send money for practically free is mind blowing. >> but you can do that on paypal. you do not need to do that on bitcoin. >> but the other person has to have a paypal account. it doesn't really work cross- border. >> they take the fees out of it. >> if matt is going to give me bitcoin, how do i actually get that? >> you could be in china with your free block chain wallet and
i could send you $10 million in bitcoin for a few pennies. >> of course, it might drop dirty percent during a transaction. >> it could, but if you look at the history it is more likely to go up 30%, isn't it? the technology is really the problem. >> which undermined its credibility as a means of exchange. >> and that is an important point. we are very early in this. bitcoin, i believe, has to first he established in value. it will be incredibly volatile. i believe next year wall street will move into bitcoin in a very big way and we will seem very in bitcoin.ollars >> i was reading a story about you and someone said, we need to have market makers come in and deal with this. theink it was raj from consumer financial protection bureau.
what do you think about that? >> i agree. what is happening right now is wall street, the traders, for folio managers, banking sector gives are now personally investing in the bitcoin trust. they are starting today comfortable and putting money to work. the next phase is putting their clients money into bitcoin. >> what they are really doing is not betting on whether or not bitcoin is legitimate. they are betting on a price. >> well, yes, but implicitly you are saying they've are betting on a price. value network, i think it is possible that the value of bitcoin is only $5 billion to $10 billion. for it to do all of these great things that people are excited about. >> which is great if the price goes up, because supplies so limited. >> bitcoin just hit a new all- time high. forgive me, herbalife. >> i got so excited. i was going to run to my wallet.
herbalife shares, take a look. ow.100 -- wh the fulloing back year. up 12% right now on the audit completion for 2010 through 2012. don't forget, there was the kpmg auditor that had to excuse himself because of insider trading. all of those results had to be refiled. pricewaterhousecoopers came in and redid the results. the just came out and market likes it. barry silbert, sorry i did not have better news about bitcoin for you. next, one thing that is for sure, america is getting older. our closer at the chart to clear -- to prove it. ♪
>> time for chart attack, where today we have two charts that will make you smarter. the single biggest change affecting america, we are all getting older. it is sad but true. we have two charts not only to prove it, but to talk us through what we need to do about it. financialre a lot of implications and you can actually make money with this trend. the chart i brought you shows the age in the 65-year-old throughout the years. in the next 20 years, 20% of the appellation is going to be 65 years or more. data comes from our friends at age way. >> in other words, on the far left-hand side of the chart if i go all the way back to 2013, about 15% of the correlation is over 65? >> correct, and that is going to grow to 20% by 2033. >> that is significant. is, but the next chart is
even more significant. the data is even better. when we actually look at the growth rate between now and 2033, there will be a 75% increase in those turning 65 years of age. >> this is very dramatic. >> that is impactful. >> that is very concerning because there are so many getting older and not enough who need to pay for them, the entitlements. >> that is the angle, one part of the angle, but the other is looking at those who are healthy. actually, we know about health care, pharmaceuticals, the orthopedic part. isn'te area that people -- people are not thinking about is, what about the population that is healthy echo what will they spend on? we think, leisure. and spending on vacations, hotels, cruise lines. >> all of these new retirees. >> yes come a they will go on vacation, at least part of the ultrahigh net worth will. of my series in
talking to some of my colleagues in business, what do men spend on? we always talk about luxury for winning. but what will men spend on? luxury cars. >> a good point. >> and there is one other big longer-term trend. the financial industry. that will affect you and i. >> retirement accounts. >> people will need help with their retirement and people will need help with their financial services. that will affect the financial sector. >> fascinating. you are an optimist. i'm worrying about how we hate for all of these people and you are saying, hey, we can make money because of this demographic change. luxury goods, hotels, -- .> cruise lines >> financial planners. these are all sectors that benefit from this massive amount will be put into retirement accounts and ultimately spent. >> correct. and we are spending too much time worrying about the negatives and not worrying about but long-term positives of this
happened during today's session, don't worry. we will get you caught up on the only stocks you need to worry about. the latest acquisition, boston dynamics, the maker of the world's fastest running robot. it is the eight robot company google has bought in the last six months. >> look at that and run. that is impressive. exxon row -- rallying more than two percent. the stock is inexpensive, relative to its own history. and the company makes the organic volume growth next year for the first time in years. >> number eight, herbalife. shares are at an all-time high ther the company announced completion of a re-audit by price waterhouse coopers. herbalife says it had no material change to its financial
statements. and carl icahn, who was long on herbalife, told bloomberg news that the company is still undervalued and that it is a growth opportunity. number seven, blackstone up one percent. it is raising its stake in the prescription pharmaceutical industry. increase its sales in the indian market. >> and falling 12%, wells fargo rates twitter down. verizon is in an agreement to buy intel's start up service. q, beganice, called on- early this year.
i find this one fascinating. it is the perfect example of the convergence of everything. it used to just be that verizon was a phone provider. and then it became an internet service provider and cable into your home. now it is tv. it is what happens. it is good for customers that they are buying. >> cory johnson in the house. homes, don'tdel they have on-q? shares are gaining for blackberry. their course of action is fairly straightforward, but warns that it's cap to success -- understatement of the year -- will not be easy. >> shares of bp were up today. it signed a 30 year dear to jointly develop a gas project in
the arabian desert. >> number two, lsi. 38% after avago technologies agreed to buy it. stockholders get a 11.15 per share. >> we're looking at our number one stock of the day. it is a id. they are selling their aircraft leasing business for about $5 billion. [closing bell] are at the close of trading, and it is a new week for the dow up 100 29 points. a gain of 20%. up 129 points. a gain of .8%.
all sectors of the s&p training higher today. this is before the fed meeting. we wanted to get some additional context. is obviouslyeting an important thing that investors are watching. you have been talking about the santa claus rally and we are getting closer to the time of the month where we see stocks perform well. maybe it is being given away toward the end of the year. stockstion that generally went up broadly across the board. and westocks led the way see oil up today for the first time in a couple of weeks. >> let's move to the roundup, these are the stories we are tracking. you can see cory johnson is joining us. >> have you already taken a self
ie out here? >> not yet. it might be exciting for us. >> you can tweak it out. -- tweet it out. strategist's chief is the biggest bull on wall street. he upped his target for the end of the year to 1825. with 1775vious target and the market closed above that level for a few days. we think all the drivers in therefore the upside. atthe s&p will finish 2014 2075, up 17% from today's level. toexpects part of the upside come from better earnings and a further expansion.
you're willing to pay a higher multiple. he is the biggest bull by far. out atally start to roll the end of the year beginning next year. 1955.xt highest is only out everyone has even come with that. >> 2014 for 2014. >> they represent the banks. things are going to go higher. >> however, overall, incentive across the board is much better. you think about going in the last year. >> a our salesmen before? -- they are salesmen before?
>> not just salesmen. we hear from all of them. it makes me a little bit nervous. were interviewing rapini, he was not overly pessimistic. when you think about which multiple you want to use, you are talking somewhere around 15 times earnings. >> broad markets such as softbank's, the telecom company acquired sprint in july. largest carrier, it could push ahead the t-mobile bid for the first half of next year. big gain whenl china mobile selected the same wireless standard that clearwire had.
that means they can have phones operate in china, japan, and the u.s.. they are going to have to stay on that network. >> i don't mean to make light of the report in any sense that sprint is looking to make a bid for t-mobile. how long have you been covering telecommunications? the first time you trying rumor of sprint to buy a piece of deutsche telekom. it was 1999. >> they are constantly looking at each other. this is a different kind of deal with softbank behind the 500 year plan. the worldy man in that has lost more money. mobile, it was billed as
the greatest deal that was ever going to happen in telecoms history. >> i was in seattle. >> hank you for helping me feel young today. phones, it turns out it is not just the nsa that is under fire for that. determining if company executives broke the law by ordering personal investigations into employees. they were recently fired after a year-long medical leave. she says ikea gave private investors access to social security numbers and personal cell phones. they thought she was not as sick as she said she was. >> she says the company spied on hundreds of employees approving
fromthan $654,122 investigators between 2002 and 2012. she is saying that -- >> she was diagnosed with hepatitis c but property -- traveling to property she owned in morocco. they went so far as to pose for someone with the flight company, the airline to say that she could get a free ticket. >> building ikea more -- building ikea more than they ended up paying her. >> france is the worst country you could possibly take to do something like this. public sentiment in france has been very against the company as
a result. >> the u.s. is probably the best. investors are going nuts for luxury. shares jumped more than 45% on the first day of trading in the lawn. ,aising 681 million euros italy's biggest ipo since 2001 and the biggest since product. to rise 16%xpected this year and 18% next year. that is according to documents used to make the listing to investors. what is the price of one of these quilted down jackets that cory has? >> don't let expenses run amok. are $1200 and are selling like hot cakes.
>> can you explain the appeal of these things? >> a $500 jacket? >> this is what it is all about. this is what it is for. >> there have been high sales of a lot of ims jackets. they are everywhere now. they are all the rage, especially with the ladies. if you go into a store, it will be packed with ladies who are taking them out in handfuls. the one in soho, olivia was telling me they had 200 day. said a sleeping bag coat, they are pretty cute. >> i don't have a problem, julie has the issue.
side has the lower east luxury feel. >> i am surprised there are $1200. i thought the starting price was lower than that. tesla, the ticket prices actually higher. italy of the sales are in and in the rest of europe, it is about 30%. >> it was the hottest thing for them to wear on the slopes. >> i agree. >> let's talk about a high ticket item, the ticket to new zealand. deal cameron has signed a to shoot the next three avatar sequels in that country. the first avatar film is the highest rosé movie of all time
and earned $2.8 billion worldwide. he said the movies are expected to inject $413 million into the economy. new zealand quickly becoming an alternative to los angeles and other places. the government-- raise the rate to budgets offered the filmmakers. they will probably get the full 25% rebate. the numbers are fascinating but i love watching that movie. i your favorite recent film? >> i bought a 3-d tv so i can watch it at home. >> that is serious stuff. is not the stuff of
>> everyone loves good competition so we are introducing a new segment called "ranx." there ranking the best and worst out of everything out there. and we are looking at robots today. the m.i.t. spinoff is the latest acquisition with ferocious military grade machines. here are the most terrifying boston dynamics robots.
>> this is just the latest of eight robotics companies that google has acquired, andy rubin, the founder of android. you also have amazon looking into the drone. the robot arms race is on? president of the robotics industry association, cory johnson also here with us. think these monster companies are in a race here. anticipating as we move forward in the next year?
me of 30 years ago when i get started in robotics. a number of companies were thinking robotics would be the next industrial revolution. ibm, westinghouse were the big names i got involved chasing the big markets. >> but now we are in a new era for all this. robotics didn't really turn out to be all that it seems to be today. technology just wasn't there. >> the technology has improved but many of the challenges remain. they are now jumping in. one of the reasons is a lack of
mobility. of the companies that google acquired deal with vision. these problems were there 30 years ago and are still there today. hopefully google is in the position to start this. the nsa -- this is a littleng, and maybe odd. google is bringing in all these extracurricular projects. this is probably how a lot of these things started like a self driving car. they have closed the big development center in australia and have tried to be a more focused company. they haven't made a clear where they are going with this stuff. five years, 10 years from now, whatever it is, will it
really be a search engine anymore? whenever i see a company go very far off of the core mission, i worry about things that companies do that lead them astray. google has tons of free cash flow. who knew that it would be a centerpiece? they saw that coming early. >> what is the future here? tell me about the robot of the future and what it can do. >> it can do a lot of things. why aren't there robots in our homes? why is there not something to do the cooking and the cleaning and take care of us when we are older?
solve thesen challenges, it is possible we can have an effective home robot in the future. >> are they the best company to be doing that? >> google collects data so that when we search on a search engine that they have made very easy to use, they know a lot about us and what we are searching for. a robot thathad knew what you ate for breakfast and knew what wine you drink? would they be able to send you information on special offers on those products or deliver them from their warehouse in their driverless car with a humanoid robot? >> the future is all there. >> we have breaking news on boeing. it has also boosted the quarterly dividend by 50%.
off because it was three shy of $1 million a week. wherever i went, i brought my insanity with me. it is like a cautionary tale, what to do and what not to do. asprobably wasn't as bad people were saying and i probably wasn't as good as people were saying. place blame on anybody, especially a fictional character. he was sexy as hell and he stood up and said greed is good and a lot of people gave voice to that notion that there is something noble about making as much as you can as fast as you can without focusing on who you hurt along the way.
i was not focusing on the reality. i'm not making any money on the books or the movie. the only way i will is if everybody got paid back but until then, i don't want to make any money. as a broker or traitor, you're not creating anything. really easy to feel like there is nothing tangible attached to your product. going in that other direction, i would hopefully counsel him. >> 2013 is the year of uncertainty and next year could be the year of clarity. i will explain what we are talking about. ♪
all of 2013. we had some major hurdles to get over and the uncertainty of who would share the fed after ben bernanke stepped down. now it is all over, right? we are now looking at the year of clarity. are joined right now by morgan stanley senior u.s. chief economist alan that in her -- zeitner. it seemed like every ceo that came on the show told us that there was no certainty. is that beginning to change? you look at the economic data all the time. >> it seems there is a change going on because this data comes in to the upside. we have a budget deal so we know we are not going to face another
government shutdown. we are pretty confident coming fed startst as the tapering, we will have more certainty around monetary policy. have a leader that can provide credible guidance. a lot of the uncertainty has been removed or will be removed as we going to 2014. things are going to be better, maybe i can hire. that is what we have been missing. >> it has been a disappointing , we have another year of job growth.
between the business investment and business cycle, they will it starts that virtuous cycle that has been missing up until now. she says 2.6% annualized growth for next year. >> we get closer to the three percent range. we know we have the budget deal. trying to quantify uncertainty is a difficult thing to do. >> as i look at some of your
work, for themes for fed tapering. your other two themes are productivity. it is down. after theivity rates financial crisis, at that time, rates of productivity soared because we were cutting payroll like crazy. businesses have not been putting new capital in place. tenant iseconomic that at some point, businesses will be forced to invest.
>> people have come back to me is something that we are watching carefully. but as we become more a part of this technological age, do we run the risk that people are going to be replaced by all this technology? somebody is going to make that technology at the end of the day and we are doing that better than anyone. one could anticipate that it could continue to be so. talking about the cash hoarding, it is concentrated into major indices. that is the industry that has the cash flow available for you to unleash.
>> to different ends of the spectrum, you have the high-tech job growth and those are the higher-paying jobs as well. we are creating a lot of the service sector jobs. it is one of the strong growth sectors for job growth going forward. that tells them which sectors are going to be strong. >> thank you very much. if you have seen my outlook for 2014, check it out. wouldon linkedin and i
love to know what you all think. how we may be in a very different time right now than we were last year. it is good news. >> let's hope so. the world economy is getting better and that is the message from the manufacturing jobs. which people moments made the best of their 2013 list on street smart. sequel to the ship my pants campaign. ♪
business behind media entertainment and pop culture. it has been quite a year for pop culture junkies. beyoncé fired up the super bowl, miley twerked and obama perfected the selfie. our creative consultants are back to round out the top trends. seasonally appropriate. >> and duck boots. >> required. >> not being attached to twitter not having anything to do online. >> it disconnects you from the internet and allows you to focus
. >> you cannot check e-mail and you cannot do anything online. there is a quietness to it and you get more work done because you're not distracted going down wikipedia. need to be able to say, enough. it forces you to put the device away. >> there is that productivity things where you work intensely for 25 minutes. my first boss told me you have 90 minutes of creativity a day. so use it wisely. we are getting away from what i like to call instagram jealousy where you see other people's posts and they are having this amazing party and you're at home not doing anything.
you're also not having the jealousy. >> you can't disconnect and play games. we really like short time- based games, games that have a time limit. able to throw be angry birds around in your phone but when you get to the meeting or the date you're going to, you can't be thinking about knocking down the one last structure. >> it might be the top trivia game right now. >> any topic you want, you can get better points. >> when it is done, it is done. we live in a 140 character world.
>> and there is a great tetris puzzle game. is very addictive but what's done is done, you can move on. less fussy footie's. >> $1000 and it makes you -- takes you eight hours to build a meal. we are seeing all of these smaller restaurants and they are quite affordable. they are still wacky foods. his restaurant, the king of molecular cuisine. it sounds pretty fussy. >> it is all bite sized. byif you are not freaked out
the first thing, the second thing will excite you and you will be into it. everything is from scratch. it is kind of remarkable for this day and age. beer,h the champagne of we know it is a low-end, ironically named. they presented like a champagne in a champagne flute. they say we will have a little fun with it. >> the new power of social media, my favorite thing about her dropping that album is that it was more of a social media event than sharknado. yearsy gaga had two
to put into her new album that was not very well received. >> it is underwhelming and underperforming. you kind of want to throw water on somebody's face. >> who is the theme for 2014? who is the new entertainer? lords is exciting, but i think that miley has a lot of life on her. >> she is very smart and she knows what she is doing. madonna, she can change yourself. one more, binge watching.
>> it was a big number. a limited edition. it only exists in one time. >> that is what we do, every day. >> the pop culture gurus. it pimm fox, what do you have coming up? 5:00 p.m.up at eastern, mystery guest monday. let me give you the first clue. my first guest is helping patients through the use of technology and is looking to save 700,000 lives each year. that is next on "taking stock." weird wall street is next on "street smart." ♪
>> is time for weird wall street where bizarre is business as usual. how does the world's fastest man train for the olympics? he races a bus. the six-time gold medalist from jamaica squared up against a commuter bus. spectators turned out to watch the race and as you can imagine, he won without breaking a sweat. >> pretty good. are there slow buses in argentina? a.b. he is really fast -- maybe he is really fast. >> he is shockingly fast. kmart is back to making people laugh which is better than what they have been doing. this time with a holiday twist. >> ship my pants right here. >> you can ship your trousers right here. >> maybe i should ship my
bloomers. >> they took advantage of the first viral success of their film -- vicampaign. hugely relevant campaign and still struggling. >> the commercial is hilarious and the store looks boring as hell there. they made it work. pants?u d you ship your >> have a great night, we will see you back here tomorrow. ♪
bloomberg television is on the markets. today is monday, december 16. the busiest day of the year for ups. expecting to pick up dirty 4 million packages. it is also the first holiday season at the world's biggest packing shipping company. orion energy systems at processes trillions of numbers, hoping -- helping them find the most efficient route. here is a quick look on how it works. >> this is the algorithm that makes us work. technology is changing the world of delivery. today, we are a technology company that is struggling. >> it is a program 10 years in the making. objective is to find the fastest way to get packages to your doorstep. on ath 120 deliveries
driver, there are more ways to service those customers. orion is looking at trillions of things. it will run 200,000 different alternatives and it will say, this is the best way to deliver. >> there are 200 sensors monitoring everything the drivers do. all of that fed into the massive equation that prioritizes variables. wasn't tol dramatically grow efficiency, it was trying to take a look at some small gains. but on our scale, small turns out to be rather significant. >> the culture of efficiency has a storied past. company'sith the first delivery car, the model t ford in 1913. ups built the first conveyor
belt system for handling packages. this year, it is orion. >> how is it a game changer for ups? of 2013, we will only have a portion of our fleet diploid and orion will save 1.5 million gallons of fuel. it will adjust on-the-fly. the lead building time changes adjust by 10 minutes. oracle --k google or >> everybody uses google maps. they are not accurate enough for ups driver. >> you are better than google maps? >> absolutely. we have a world-class i.t. group that makes magic here. >> it is not just ups that was busy today. other deals were linked as well. billion and
combining with the world's second-largest leasing company for more than triple the air cap fleet. it still requires regulatory and shareholder approval that came after ge failed to reach an agreement with chinese bidders. the other big deal in the news today, the purchase of semiconductor maker lsi for $6.6 billion. the all-cash deal is the second- largest of the year in the semiconductor industry and will result in a business with $5 billion in annual revenue. look at howke a broader markets fair today. the selloff is, of course, at head of the omc meeting that starts tomorrow. stearns.a ♪
>> this is "taking stock" for monday, december 16, 2013. i'm pimm fox. i will focus on instant gratification. did you notice that sometimes it takes patience? take the big shop that is tempting you to indulge this holiday season. looks at thecutive baking industry. him andoking at investing. and it is monday, so my producers will once again try to stump me with the mystery guest.