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tv   Street Smart  Bloomberg  December 17, 2013 3:00pm-5:01pm EST

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>> sitting on their hands and staying still as traders wait for the big fed meeting tomorrow. all the indices down just a touch. the dow jones down for, the s&p off four. 59 minutes to go until the closing bell and we are scouring every market for your last trade today and the first trade for tomorrow. a lot of hesitation and concern ahead of the big meetings. the question is will they or will they not taper? they?l they or won't there was a bloomberg survey one month ago or 16% of the people surveyed thought there was a chance of some sort of december -- some sort of december taper.
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>> if they taper i would be surprised as i was back in september -- >> when they didn't. that is why everyone is sitting on their hands today. let's go to the big picture -- three charts that will show you what's happening right now. not a lot happening. .25%.p 500 is down if you look at the 10 year, not a lot of action. this is the fourth day in a row we've traded back and forth between 284 and 288 great people just waiting to get some sort of decision out of the fed. downa look at gold -- gold by not a lot, about 14 bucks. 17%, oneold down about of the year's biggest losers. >> we are watching hospital stocks after a november survey came out from citigroup that
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found inpatient hospital admissions fell year over year because of the changing environment in the medical industry. following his tenet healthcare, shares down a little more. they have pared some of their declines. on the upside, we have 3m making a number of different announce different -- announcements. they have a $22 billion hide back authorization through 2017. and finally, a deal through frontier communications -- buying the connecticut operation from at&t. this helps expand their reliance on wireless customers and away from wireline customers. those shares up 9%. >> let's move on to the big ipo -- it's amc almost like, camera, action time for the theater chain as a
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appears to price its ipo. they seek to raise $368 million today, offering the price between $18 and $20. the richest man in china has an unusual ipo move. they are inviting customers from amcs stub to buy shares along with wall street investors. we have a round table to tell you how the amc might be moving when it debuts, whether or not we will see any magic here. all three angles covered for you -- paul sweeney, cristina alesci and matt harrigan. what are we going to see? >> investors are looking at this stock not as an explosive growth story but as a steady dividend payer like other rivals out there right now paying dividends. that's what's going to be attractive to investors about
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the story. that said, it still needs to grow topline revenue. you need some growth in this stock but it's not going to cover more people going to theaters. friday -- to come it's going to come from getting more money from the people to go to theaters. >> so my ticket prices are going to go up? >> they hope to provide more services at the theater when you get there. perhaps a bar. >> that would get me there. >> now we are talking. all sweeney, what is amazing to me is that people actually want to go to the movies and watch anything they want to watch on their own tv screen. they can watch anything they want on netflix, why are they paying to go to the theater? >> there are still that community experience of seeing a story along with other people in a theater. and you just look at north american attendance, it has held pretty flat, which is amazing when you think about it.
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all the new video choices we have and the great tvs we have with surround sound, much of the experience can be replicated in the home. that what the theater owners are finding is if hollywood gives us movies people actually want to see and pay for, we can get people into the theaters. >> it helps if it is a really nice theater. >> it does. >> amc has them. they have introduced theaters where you can have dinner while you are watching a movie. what's not forget, people will go to the movies to watch a movie like "avatar." it's a 3-d experience that you need to be in the theater to get that experience. let's not forget a very interesting angle is that a chinese billionaire is involved who owns the company and will be the majority owner even after this offering. he wants to bring hollywood to china. he has very publicly been out there saying at some point he
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wants to own 20% of the movie business. he wants to be a juggernaut when it comes to distribution because he wants leverage over hollywood who, by the way, has the leverage now because the content providers can charge whatever they want. that is eating at the margins area >> are you saying he actually wants to look at being a content provider? >> he wants to have enough of the distribution market so that he can pick hate or push back a little bit on pricing with the content. >> which he needs to do given the fact that his overhead is higher. so if he can push the content providers down, that helps his margins. >> the math that we had up that shows where amc's operation does business, if you look at that map, it is a pretty expensive place to do business. it's why the rents are so high and their margins are suffering a bit more. >> how much does this hurt them in the big scheme of things, the
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fact they have such an urban concentration? which means high real estate. >> absolutely. what you have to realize that amc relative to their peers as there is very high operating leverage in the margins are lower and there's high financial leverage at about 4.5 times after the ipo. i'm positive on the exhibition business longer-term. i think 2014 is going to be the flattest year at the box office and i think the studios will have the upper hand even with more concentration in the exhibition business. in china have access to the market is very important. but they also get a smaller share of the revenue split over there. so i would not look for too much benefit in that regard. i do think this will be an attractive but volatile story owing forward. company was taken public by private equity guys in 2004 and put a lot of debt on this thing. it has a lot more debt than its
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competitors. how big an issue is that? >> i think you will see some volatile results and volatility in the price. it's imperative they get the high coupon debt refinanced over time which will spike the cash flows up nicely. but i think you will see more volatility in the quarter by quarter performance because you have high rents and higher interest costs relative to regal or so mark -- or cinemark. differentiated by the latin american exposure they have. >> we have a bit of a global plague which gets people pretty excited. the idea that this could have a stronger, bigger, and growing presence in china where everyone is clamoring for some part of the chinese market. something that gets people somewhat excited. >> you can think about the way he's doing this deal because the studios are dying to get into
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china. if he can be some kind of conduit to get them entry into china, there's a lot of government scrutiny about content in china. if he can help them get around government scrutiny, maybe it will cut him a deal on the content he's distributing here in the u.s. area you have to look at this holistically. the problem is he has angered some of the hollywood producers in china. -- they are brazen about how he's going to have power over him. ?> how did he make his fortune did anybody know his background? >> real estate development. when you work in a fairly boring field like that, you want some glitz in your portfolio. you want to be around movie hers and not only that, but has to diversify his assets. if all of them in -- of all of them are in china, how
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diversified is he customer he will probably be making more investment out of china. working?igh-end thing the big red chairs and dinners question were >> in the larger markets like los angeles and new amc, that's why we see investing that capital because they're getting a return. a lot of investors don't appreciate that they don't make a lot of money at all on box office receipts on the ticket admissions. where theater operators make their money is on concessions. it's in their best interest to put more fannies in the seat and spend more once they get there. >> to eat more. americans are good at that. give us more popcorn with more butter. [laughter] is the strategy. >> and now they are adding liquor to the mix. that will help their profit margins. onlyg up, amc is not the company owned by china's elite. we look at some of the other chinese companies that affect
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your life everyday. first, corporate america is spreading a little holiday cheer. we will see you back here in two minutes. ♪
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lex corporate america is sharing a little holiday cheer in time for christmas. time for a little "insight and action." corporate america upping the dividend payout -- knowing, pfizer, 3m -- this is all in the past 24 hours. earlier this morning, 3m said they would up their dividend and other orderly dividend will be 3.4. pfizer now
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merry christmas from corporate america. the question is, since these guys have done it already, who is next? a wholerns out, there's team at bloomberg that tries to figure out which companies will be upping their dividend and then they try to figure out the amount by which they up their dividend. there is a lot that goes into doing this. there are seven key factors from company guidance to regression analysis on what has happened before. this group tracks 7000 companies. the key -- they are accurate 88% of the time. so you want to pay attention when they say something likely to happen. let me show you some of the companies the dividend forecast team expects will increase their dividends over the next several weeks. wisconsin energy, on december 19, currently three point eight percent. the team at bloomberg expects an
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increase of four .2%. spectra energy, when you get out to january night, ford, look at williams in the middle of january. is according to the bloomberg forecast. going to post these on twitter. but the point is this is a big deal. cash on the balance sheet of corporate america at an all-time high and they are sharing it with all of us. happy holidays. >> good stuff. john'sser today is writing and he's looking at whether the fed will taper itself tomorrow. he has served as the senior economist for the new york fed and was an advisor to the anchoring one. he thinks the unemployment rate will take the lows seven percent next year. -- the unemployment rate will take below 7% next year. -- as iquite stunned
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said earlier in the show, i will be stunned if they taper tomorrow. do you think it will be done? >> i don't think it would be as stunning tomorrow as if it happened in september. he launched the market with a series of comments from bernanke as far as yields were concerned that then they got cold feet. if you look at the things that shop -- that stop them in september, the job support weakness has been revised away, we continue to create jobs at about 200,000, the government shutdown did no damage to the economy, gdp growth was 3.6%, the fourth quarter looks like it's shaping up to be somewhere between 2.5% and 3%. economic news is better. all the things the fed said they were worried about and needed to wait to get more information -- and they said back then it was a close call. >> do you think the shutdown influenced them question mark >> i think it was less the shutdown
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than it was the speed at which yields backed up and they refer to financial conditions. but they took that out in their next meeting. they took the financial conditions out, so they have laid the groundwork. if you look at 10 year yield, they are back where they were -- i think he will be much less of a shock to the market and it would be to the majority of inple who were back september, now i'm going to wait until march before i'm going to make that forecast. >> you say there's a legitimate possibility the fed announces some sort of taper tomorrow? what effect does it have? >> they are going to have to join the dots. back in september, most members of the fomc thought the fed would begin tapering or at least an ounce of the year. now if they don't go tomorrow, what do they do?
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do they go with janet yellen's first meeting in march? the economy doesn't need the fed billionpumping out $85 -- >> what's the difference at this point between $85 billion and $75 billion? >> because it's a start to going to zero. the reason why the research they margins -- >> i will take it. 10 billion at a time. >> the reason there was such a big response in september is waitse maybe they would until march and that means another six months of $85 billion a month before it starts to happen, which is half a trillion dollars above purchases and that is a significant amount. of 10,000 steps begins with the first step that you have to have the first step. >> if you are janet yellen -- do you think he's advising them to start the process now? think janet yellen would be
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well served to have the process be started he for she comes into the fed. >> that way it's not her fault. >> coming into march at the first meeting and you finally have to taper. what do people take away? she's a new sheriff in town and she's going to be tougher. are saying you handcuff her? >> this way she does not take any of the blame. if he starts it, she continues the program and doesn't get labeled. yellen,still be janet the dove. >> we are only talking about a slower rate, not tightening. back in september, the markets tapering toa of signal an earlier rate hike. if you look at interest-rate futures, interest-rate futures don't see the early rate hike even though they price it in the taper. they could make the move and they got the message -- tapering is not the beginning of tightening.
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that message has been communicated to the markets. >> glad you are here today. up, is your favorite brand owned by a chinese company? we will find out in today's global outlook. results might surprise you. ♪
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>> moviegoers sitting in those plush red leather seats at amc theaters may not realize a portion of their ticket fees goes over to china. that's because it's owned by a chinese businessman. the question becomes what other chinese companies own well-known
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brand here in the u.s.? our very own julie hyman takes a look. that owns amc is based in china and owned by man.'s third richest he bought amc in 2012 and will be selling it in the ipo and is investing heavily in entertainment in his homeland. but there are some other companies that are known brands owned by chinese companies. one of them is lenovo. that's an obvious example. they bought ibm's pc business. originally, the computers were branded as ibm thinkpad than three years and, lenovo held this ceremony, peeled off the ibm stickers and put on lenovo stickers instead. smithfield come at the more recent deal. it went under a lot of congressional scrutiny before
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being bought for $4.7 billion. smithfield is a meat processor and there were members of congress trying to make the case that this was a national security issue. necessarily that, but there is some concern that the quality standards in china are not what they are in the u.s. say what you will -- >> they have had problems going in that direction rather than coming in this direction if you are looking at where the pork is going. one more i want to mention is volvo. they are not a u.s. brand, but very well-known in the u.s. and owned by a chinese company. >> any deal flow? >> there has been a good amount of deal flow for the past 10 years or so. one big deal that was canceled was see note trying to buy unocal. that was scuttled by congress
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and that the freeze on chinese- american deals world -- chinese- american deals for a while, but it's starting to heat up again. >> we are talking about fedex, next. a are reporting tomorrow. do you buy it? ♪
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>> fedex is reporting second- quarter earnings tomorrow. the stock hitting a 52-week high yesterday. two guys probably like that news -- george soros and john paulson taking stakes in the company. when you look at these online sales numbers, they have certainly been strong. one would think that is good news for fedex. is it carrying into more shipping if people are buying online? >> it does seem to be. the trend we have seen recently
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generally in schippers is that people are buying more stuff online and that means they are more.g things shipped but customers are tending to opt for the cheaper option. in other words, they don't want to pay a premium to get it overnight. they're willing to ship it ground, payless and it takes a little longer. the company is not going to see as much profit necessarily even though there's a surge in online shopping area the plus sizes as the economy heats up even more, potentially there's an upside as people start opting in for more expensive premium options. >> you wonder how much has been priced in. with this stock doing as well as it has done, everybody anticipating this economic recovery. you look at the gdp growth and the trend down in the unemployment rate and brandon, i would say is that all baked in ?t this point
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>> good afternoon. i would argue absolutely not. this is one of our top stock ideas. e-commerce shipping with ups speaking at twinighter million packages delivered in one day, fedex will delivered 22 million packages this peak. that's like 15% of the u.s. population getting a package on a single day from both companies. that growth rate has been significant and i think we have a lot more to come as we look ahead. >> let's look at the trend here. >> i have two charts and they are related. it has to do with the cost of fuel. this is a real tailwind for fedex. let me show you diesel fuel. look at what has happened to the price of diesel fuel. we are below four dollars. it had been $4.25. that is significant and does a lot to help their margins. if you look at jet fuel, there it is again, this is very significant. we included jet fuel and the 30
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day lag so you can see how it starts to kick in overtime. >> that's an interesting way to look at it. if you are invested in oil or going long energy, if you could look at this as a hedge, fedex or any airline or for that matter? -- the shipping copies shipping companies as well like fedex or ups. >> the difference of the concerns about fuel is that that x has been overexposed to that premium like you discussed earlier. they have a lot of aircraft but management is retrenching, they have a best in class ground operation in the highest margins in the business. but a little lower margin air business and that's where you see less capital focus, not buying as many aircraft and not deploying as much capacity. that's why these big investors are looking at a much more favorably. >> headwinds for fedex?
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>> one of the biggest headwinds as if the economy doesn't pick up as much as most everyone is anticipating. i talked to an analyst today who said in the past you saw global to gdp.ow at a multiple in recent years, it has been tracking with gdp, so the concern is it won't get back to the multiple growth and you won't see it track along with gdp. these people who were hoping for incremental upside in this stock, that could be something that could hold them back. >> we will all hope the economy continues to chug along and do a increasingly well not just for fedex's sake but everyone. thank you to the whole team. the sound heard around the world -- you couldn't forget that one. of harman audio equipment.
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and digital video is taking over the world. we will see you back here. ♪
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>> the music industry is going through some tremendous change, deemphasizing the sale of recorded music and putting greater reliance on live performances. cory johnson look at the choices artist are making to drive revenue to the concert business. isthe concert business setting up for a dramatic technology driven change. these days, the best show often means the best stage. it is an arms race and the leading arms dealer is a privately held company called take towers based in heart of amish company -- ominous --
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amish country in rural pennsylvania. >> these days, you build your relationship with customers. ,> justin timberlake, madonna metallica, u2 -- they've all constructthem to high-tech sets. >> we have mechanical engineers, people that went to trade school for cabinetry design. >> but before a single board is cut, the process starts with 3-d modeling on software. these are shipped from all over the world, slapped together to sit for a day and then disassembled just as quickly and off to the next gig. all is jamesd farrell. he started in 1984 when he was in college. he now dominates the concert industry. >> we have two new it -- we have to do it financially, which is difficult because everyone has
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champagne wishes and caviar dreams, but they don't have the budget. >> a lot more money is being made these days on live shows and recorded use it. michael lay turned to take towers for his biggest tour yet. >> if you are going to ask people to spend a hundred dollars on a tickets to come and see you in a 16,000 seat arena and sometimes sit a football isld away from you, this something that is necessary. >> formant magic is a necessity in a changing music industry. ♪ [applause] just about the sets, it's about the sound. no one knows that better than harman. harman audio equipment provides that beat at prestigious event like the mtv music awards in the world's largest music festival,
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rock in rio. their brands are in many of your bmws and toyotas. the ceo joins us here right now. good to see you. we were just talking about the amc theater chain and its public offering. andwere telling us offset this is an interesting factoid to share with the viewers, that you provide the audio a quick -- in the amc theaters trade in the amc theaters. >> they are wonderful clients for us. so it's good for harman. >> that is the expectation, they will raise this money and they will expand. people talk about potentially the china influence as well for amc given it is a chinese billionaire that started the -- that owns the company. what are you doing when it comes ?o china, india and other ems are veryand india
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different markets. entertainment and cinema are going to a karaoke hall, these are the most popular things in china. that means massive infrastructure buildup, first- class seat and theaters with recliners, you can have your drink served to you while you watched a two hour movie and it's a great experience for 25 bucks. that is very popular. then they are opening a is the theme park type, but multiple of these. infrastructure is a good thing for harman, china, russia, when they are investing in infrastructure like result, we are fortunate that nine of the 16 fee for world cup stadiums have come to harman because we do and to and audio and lighting solutions. >> emerging markets have been challenged over the last year. if that going to start to shift? are these economies going to pick up in a bigger way? hasi hear that brazil
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particularly been any make and gross, but for the last four years, we've been growing 25% year-over-year. people operating in mining, oil and gas, they are struggling. >> but entertainment is growing that much at you are seeing 25%? >> it is the car and the themotive industries trade infrastructure and then consumer. what we see is a trend that iconic brands like jbl, harman carbon, people want to own a part of that -- harman carvin, we see triple growth. in china, we've grown 80% in the last five years because people want to own an authentic piece of that equipment. the speakers, headphones, sound systems. >> you just opened your new flagship store. i walked by it on madison and it's a gorgeous store. you make so much less selling
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headphones and the stadium and brazil. why do you want the retail business? >> at is a very good question. it's about brand building. we have a big footprint in luxury cars. cancellation algorithms, our software. people walk to the dealership and see the brand and this flagship store, it's a platinum location, 8 million tourists come to new york city, it is a one-of-a-kind place. this is a marketing ploy. >> so it is part of your marketing budget. people are familiar with the bose are and, the bose wave radio trade that is a technology people understand. what are the marquee technologies that make harman carvin special? is professional audio. we started our legacy 65 years ago in hollywood. useof recording artists lexicon reverb, which is shown
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in your rolls-royce and other high-end cars. by the way, lexicon is up for a grammy award this year. grammy and nowst lexicon. we are bringing what artists have use while they are recording the music and reinforce how they wanted to be so what you hear in an mp3 player is 10 times condensed, which is lousy. it is 1/10 of what was recorded that is missing. that is harman's strength. >> the technology that is there and technological advances that have made all of this so much more present in our lives. if you are at home listening to your stereo system, it is so different than it would have been five or 10 years ago. >> absolutely correct. you will see going forward that the investments we are making is in the software area, which is
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in digital signal processing. we need to perfect more and more sound, the art of listening, which means you remove the ambient noise while you are in the car, home or office. we want to take this technology even further. can go out with their dresses and don't feel bad with these monster looking headphones. >> you don't want the big things on your head. >> you want the best without sacrificing your lifestyle. a car is a big deal. 75% of our business is in automotive. so we are bringing a connected life style. >> i am all for that. the ceo of harman, thank you very much for being here. >> good to be here. >> stay more connected to bloomberg. we want to point out you can watch us now on apple tv which offers live streaming, on-demand the o's and popular shows like "street smart."
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>> up next, the fed tomorrow could announce the start of tapering. our closer has no one chart ben bernanke and janet yellen need to see. ♪
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>> time for chart attack, where we show you charts that will make you smarter. incoming fed chief, janet yellen, is a labor economist and my guest is somewhat of a labor economist. what is the one charge needs to see? >> this chart that looks at the relationship between the unemployment rate and the propensity of people to quit their jobs is key. people say the unemployment rate has come down, came down to 7% in november. but it came down for the wrong reasons. people are not participating. maybe they are dropping out
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because they have no intentions of coming back. another indicator is how likely are people to quit their jobs question mark >> this is brilliant. the unemployment rate is down here on this axis and as the unemployment rate falls, which means we move along the axis like that, the willingness of people to quit goes up erie >> exactly. if we were looking at a numeral percent seven percent -- a 7% unemployment rate that was really like 9%, people should be quitting their jobs far less recurrently, but the latest quit rate was 2%. consistent.te is >> it is where it ought to be. >> perhaps he people who drop out of the labor force are not coming back. and that is giving you the right amount of labor market pressure. the fed has tied both tapering and the hike in interest rates to numbers on the unemployed rate and if that unemployment
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rate we had in november is telling the real story about the labor market, maybe it means we are nearer to monetary tightening and janet yellen has talked about quit rates in the past in her economic modeling. she has to be well aware of this. >> from your point of view, 7% is a fair number. the fact people are willing to quit suggests wings are uttered and others might inc. -- suggest things are at her and then others might think. >> if you thought they were going to come back to my maybe you as an individual are not as willing to quit your job. they are gone from the labor force, you're not competing with them. >> thank you for being here today. jet planes to 3m's scotch tape. we have the 10 stocks you need to know about. plus, bitcoin in the real world? matt miller is taking to the
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streets to find out which businesses actually accept it. ♪
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♪ >> all right, if you missed everything that happened during today's session, do not worry, we have a little help for you, number 10 today is bowing, climbing 10%, authorizing the largest share buyback in its history, increasing the stock imac program to $10 billion, raising its quarterly dividend by 50%. >> fuel-cell energy, down 21% today, falling the most in five months, reporting their quarterly loss that exceeded wall street's estimates. fuel-cell, which makes systems that convert natural gas into electricity, has not posted an annual profit since 1997.
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number 8, 2 stocks, western digital and seagate technology both gaining as the company is updated and analysts say that sustainable costs in the industry and a bottoming of the pc market should boost revenues. >> number seven is honeywell, down one percent, profit revenue is expected to increase next year, although revenue dropped, they are bracing for continued budget decline from the department of defense. kkr, shares are falling two percent, the private equity firm plans to buy kkr financial valuing the publicly traded credit unit at $2.6 billion. subject to a vote by kkr financial, known commonly as ksm. same,sed to be one in the not a split, now they are coming back together. >> it is like a financial news story who written by "the
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onion." are we watching a different network? >> it is kind of funny. >> raymond james, kkr, upgraded to a strong by based on their new vacuum robot, which should boost the company's sales next year i'll also likely to boost the company in 2014 is the expansion of their mopping robot. >> what happens if that thing falls off the stairs? >> i don't know. doesn't post stocks? >> does it weigh a lot? >> i have to say that i think these are fairly popular products. is not like early adopters are using this, a lot of people are using this. >> that is the dirt coming into the vacuum? >> inside the robot. >> now i know what to get the two of you. >> we are pretty intrigued. >> right. >> you should get out more. >> we tried.
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number four today, we have two, back to back, health care and hda dropping as their emissions were the weakest ever. kind of good, though, right? inpatient admissions declined four percent. >> good. >> exactly. people are health or -- healthier. >> or they could not pay for it. >> they could not sign up for obama. >> ouch. packard, gaining on the recommendation from jpmorgan , the pc market they say appears to be stabilizing and the decline in printing demand might be easing. >> number two is frontier communications, jumping nine percent. the phone company has agreed to by their connecticut operations for $2 billion in cash to focus on more lucrative wireless services. the deal boosts cash flow and creates $200 million in annual cost savings. they did not use the word synergy in the press release.
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3m, posting notes -- maker of post-it notes -- [opening bell -- closing bell] share in a five- year. , -- five-year period. is all ofe, this course one day ahead of the all- important fed meeting. big question, will they taper? a growing number of people think it is quite possible. alix steel joins us now. >> here's something for you. what if it had to do with profits and not the fed? >> i would buy it. >> right. over the weekend they put out a note saying just that, that dividend stocks were falling the least since the big decline last week, basically saying that perhaps people are just locking in profits after the gangbuster year of stocks, not necessarily playing off the fed, which was a
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welcome thought, considering what we have talked about. >> it sounds more believable to me. >> the one-day move that you know they will try to contain by talking about low interest rates. >> but it is funny anyways, but it is just a question of when. >> right, but when we take a look at the sectors that were hurt the most, this may not have been a full proof plan, but this was floated over the weekend. s&p fell below the short term averages, but we did not see momentum picking up, it close off the lows of the session, traders really not wanting to take on strong positions until wednesday. already wednesday? >> is it? is wednesday. >> one week away. >> we are closer to the weekend, you know? >> i was thinking about christmas. >> true. >> all right, time for a roundup . the stories we are talking about , jeffmorrow's open today
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is back with us. did you get your shopping done? >> i am done. almost. [laughter] almost done. >> that vacuum looks pretty good. >> i have one. it is a cool product. >> you flip a switch and you push back and forth. that is the old-fashioned version. this one you hit the switch, set up the parameters and it just goes until it runs out. >> cool. >> you want one? [laughter] >> do not buy a woman a vacuum for christmas. resist that urge. >> the other one is a can opener. >> a magic is gone if i get that package. >> i will find something else. >> you guys ever wish that you could dislike someone on a facebook host? well, now you can, sort of. facebook introducing a dislike button on the messenger portion of the service.
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the prepacked of thumbs down stickers will be released this week available from the facebook sticker store that you probably did not even know existed, but you will not necessarily be able to directly just like a picture of someone's christmas sweater, dog, or baby, but at least you can thumbs down someone's direct message. >> isn't that more insulting? >> it is kind of obnoxious, actually. if someone is taking the effort to write you a note, what are you going to do? >> i would actually like the up yours button, that is what i want from a lot of my relatives. the bigger thing is, they keep changing this stuff. if you are a heavy user and some people rely on this environment to do business and they keep changing this stuff. >> you have teenagers who are going to flee the site to another site like snap chat. and on the flipside you want to prevent the bullying we have seen. >> and i am all for that. but in terms of bullying?
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>> is there a lot of bullying in high school? school,m not in high but absolutely. >> want to come outside? come outside. extraordinarily positive side, though. overall? >> happy, happy, happy. look at my baby. look at my baby. on there. is >> maybe we need to interject a little reality. >> i think it dislikes button is ok, and they actually have degrees of dislike as part of the package, but quit changing stuff, mark? >> i want the sympathize button, though. >> there were rumors about that. fordward snowden is looking his next runaway destination, seeking asylum in brazil, he up reportedly wrote an open letter to brazil saying that he would be willing to let the country investigate nsa spying on its soil if they granted local asylum. it says --
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problem is one obvious with this request. currently the american cannot leave russia. the u.s. revoked his passport in june and he cannot legally cross russian borders thomas oh it seems that our friend may be stuck unless the u.s. reinstates his passport. and that is not going to happen. >> if brazil and russia agree, why in the hell would he need a passport? >> he can go, i wanted to go, he is closer for us to get, i will donate frequent flyer miles to the fbi to go get him. >> you know what is nowhere is scary? vladimir putin. >> i agree with you, vladimir putin is much scarier. >> i agree, maybe we can take him out more easily. >> let's just wait for that big soccer game and grabbed them both.
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>> they love him there. they seem to. upset.is very do we even have that sound clip? she came out earlier in the year and basically very strongly criticized the u.s. for saying -- you are not supposed to be spying on us, we are outraged that this is happening. but they had to know, right? >> they do it. >> they did not get caught. >> that is the big difference. we were stupid enough to have this kind of stuff in the hands of contractors. every government is doing it against us, even our closest allies and friends. >> by the way, the lawyer for edward snowden is affect -- in effect being provided by russian security forces, so what you think this is just vladimir putin trying to get a man down on brazil? >> if they wanted to do that, everyone would do it. >> get him down there, he is closer. >> let me change the subject to cars.
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>> you always want to change the subject to cars. >> in the 1930s mgm made exactly 33 of the k-3 open top racer and there are more than 100 to choose from. how did that happen? obviously, people have been making fakes or replicas of these. i guess the same thing could happen with the stick jaguars being sold at auction, the big for aris being sold at auction. car?w do you have a fake >> we had a great story about a guy who is making porsche rs 60 exactly to thee standard of the original in connecticut. these replicas go forth four hundred thousand dollars. because the original cars sell for -- >> what factory do they make them in? >> not factory. these are custom shops.
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if there is money to be had on the left to bowls, wine, watches, people lie about everything. online profiles, everything. this is huge, huge, they are picking up a regular car, modifying it, custom making. lying is one of the biggest things they are now counterfeiting. >> what about the job market for authentication? >> it should always be buyer beware. >> i want to point out that if it is a good enough replica? i might rather have that than the original. >> that is like antique shopping. my husband always goes antique shopping and i am always like -- no, i just want the new one. >> it will look just as good. >> it will hold together better. >> exactly. >> you want the new stuff. justlook like elvis, before he died. >> there are too many people talking simultaneously. >> this is roundup, fire up. >>
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talk up. wine, reportedly amazon is buying the mobile payment startup go pay go according to an italian newspaper. an app that allows customers to order ahead, pay on their smartphone, and go to the store today cap the purchase. it avoids the line. similar to the square app that turns the smartphone into a mobile wallet. reportedly both companies have something in common, they are both backed by jpmorgan. there is speculation as to what they will do with this going forward, perhaps you could pay for stuff on other e-commerce sites through amazon. they are just trying to expand universe.aypal >> as our resident bitcoin expert, do you have anything to say? >> bitcoin is probably a better way to pay for the merchant and
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the user, you do not have the kind of fees that you have with paypal or visa. >> not now. >> some are looking at four percent fees. >> this is an infrastructure pay -- play that we talked about a few weeks ago. this is about a platform and what amazon and ebay are doing is a platform for merchants, whether they are online or off- line, my opinion, this is an off-line play, a place for amazon to get into local retailers with this kind of pay as you go. others are doing it and it makes a natural extension for amazon. i do not know it will be -- if it will be as well-received as it should, a lot of these small retailers think that amazon is the devil, darth vader, that they are out to get their business. >> amazon does provide all of that back-office service us -- service for many businesses. >> we have breaking news. let's go to christina. >> we are hearing that silver
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lake is actually the winner in a long auction process for the talent agency img, which has that college sports business that is very profitable. the williamstor in morris endeavor, they call themselves the biggest talent agency out there, run by ari emanuel. here we see, potentially, a img, whichme and would create a massive talent agency, not just for movie stars and models, but again this sports business that they have that is very profitable. look, on the william morris side of things, they have already pulled off a successful merger with endeavor, so they are taking that success and hoping to replicate it here, but the problem is that img is a pretty big fish to swallow. if they have a lot of agents and they have to put a lot of debt on the company to finance this deal, a major concern here is
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that one of the big things was pulling off the deal and we will have to see how it plays out in the long term, but this is a major coup right now for ari emanuel and four silver lake as well. >> ari emanuel could cash out? $2.3 billion is the price they are looking at? >> wme and silver lake will buy img for two $.3 billion. while that is a big price, they were seeking an even bigger price when the whole process started. img, of course a portfolio company of her private equity firm. forstmann and little wanted to sell itself for north of $2.6 billion and had to readjust expectations as the profits went on. washo knew that the talent so lucrative? stay more connected to bloomberg, everyone. you can watch us on apple tv, live streaming, with popular shows
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like this one, right here, "street smart year ago five theaters that make catching a flick the ultimate experience.
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♪ ceos, anddeals, tech an effective congress, just another day in washington, d.c. our washington reporters have it covered for you, joining us right now. peter, we have a budget deal that was signed, sealed, and delivered? >> not quite delivered. there is one more vote to go before the final budget deal. despite criticism from the left and the right, the senate voted to advance the bipartisan agreement that cleared the house just last week. they needed 60 votes in all, 12 republicans joined in to move the bill towards the final vote as soon as tomorrow. no one in the senate likes the bill very much, but they decided it is better than the
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alternative and this negotiation, effectively a budget cease-fire, the compromise takes budget shutdown off the table and it gives the economy a measure of certainty, but do not get too carried away from the sudden coup biot in congress. the top republican in the senate is already starting to set the page for the next fight to come in february. >> i doubt if the house or the senate is willing to give the president a clean debt ceiling increase. every time the president asks us to raise the debt ceiling, that is a good time to try to achieve something important for the country. >> so, circle february 7 on your crisis calendar. do not throw away your countdown clock just yet. >> circled. what else did they say? >> the least productive congress in years still has a few more things to do. a defense bill that is very important to contractors, with the senate voting on the janet yellen confirmation for reserve
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chairman, that could happen as soon as tomorrow, but if they keep obstructing this way, it could last even into the weekend or next week, but most likely by this weekend. >> all right. in the meantime, giuliana, they were not just talking about the budget in washington. dekes ceos focused on three letters today. tell us what happened behind the three -- the closed doors of nsa. >> we heard from tim cook, who said the meeting went great. but that they have been forced to engage in the washington tradition of reading the tea leaves of the readouts. so, the white house invited these tech ceos to meet and talk about fixes to the obamacare website, but the tech ceos said they wanted to come and talk about the nsa surveillance program. these companies are under a lot of fire here and abroad for cooperating with the government, facing billions of dollars in lost business, tighter
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regulation oversees, the readout from the tech companies, they made him mention of the discussion of obamacare, simply saying that they appreciated the opportunity to share directly with the president their principles and urged him to move aggressively on reform. in their part of the readout, the white house made mention of the nsa surveillance discussion last, they started by talking about obamacare and the decision and announcement to have the former microsoft executive tech -- take over next year when it comes to fixing and spearheading the fixes of the healthcare.gov website. >> any other specific requests that the execs are trying to make from the president? >> they came in with this letter that they sent to the president and members of congress last week, essentially asking for greater transparency when it comes to the spying program, reining it in with greater thesight, figuring out
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program, but obviously the time is ripe to have this discussion, the administration is conducting the review of these policies and of course yesterday we had a federal judge saying that the nsa meta-data collection program would likely be unconstitutional . >> thank you, giuliana. >> another tight and inspiring a different sort. >> we are talking about jeff bezos. he is not the only one i -- with the idea for delivery drones and they are not illegal yet, but the potential for commercial use has two dozen states competing to run test centers for these rounds. the faa is going to pick six states. here is a look at who is vying for a spot. california and texas have been big ones. as well as oklahoma. states chosen will be responsible for building and running the centers, private researchers will pay to use them and test drones for safety.
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the big picture is this is all part of their reparation for a decision on opening the skies to drones by 2015. what is in it for the state? r&d jobs and, if approved, they could be well positioned to lou or manufacturers. domestics could include jeff bezos sending packages and spotting forest fires, shooting movies, starting seeds for farming purposes. the big picture is the drone industry says that if the rules are relaxed it could lead to 70,000 jobs in three years. expenditures for civilian and military drones totaling $89 billion over the decade. we are certainly talking about some big money, no surprise, a lot of states want a piece. you.ank >> amc going public, we are going in d, the five most iconic american movie theaters. this is pretty cool. have you been drinking the bitcoin kool-aid? you might want to double down, a
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job that pays you in bitcoin. we have a job -- website that will do that. ♪
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>> amc priced in today after the bell, in a node to the rare indie cinemas out there, we are taking a look at the five most iconic american movie theaters. check this out. ♪
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>> cool. >> i love imax and i love the big one, right here in new york. jobight want to consider a that pays in bitcoin. we have more on how to ♪ make that happen, next. ♪ we have more on how to make that happen, next. ♪
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right, it is day number seven of bloomberg television's 12 days of bitcoin. the good news is we have five more days to go. over the past week, matt miller has become an expert in all things bitcoin, at how relevant is a virtual currency in the real world? to find out, matt and his dog, steve, hit the streets of new york to find out who accepted the coin as payment.
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i just made an appointment for steve to get a walk while we go to a grocery store in brooklyn and buy some food and drinks with bitcoin. >> come on, buddy. this is steve. right, we are here in fort greene, the heart of bitcoin merchants in new york city, the within a few blocks radius here there are five different places the take it point. i am going to do all of my shopping for the week of the remaining 12 days of bitcoin. keenesomething that tom is going to absolutely love. genesee cream ale. bringing some back for you, tom. >> this is a bar that takes everyn and pretty much
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internet bitcoin kid already knows about it, but we decided to come here and check it out. >> we have been to that bar. we did not have any bitcoin to spend, but they showed us how it worked. >> this was six months, seven months ago. >> bitcoin was only $40 at that point. >> you did not just load up? >> clearly, we should have. >> i remember them saying they liked the idea of paying in bitcoin. if someone ordered expensive champagne the next morning, they could not fight you on the bill. it is done. that place, told me the same thing. we have all heard stories about the investment banker or the trader that goes to scores and comes back with a $17,000 credit card bill and tries to refute
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it, but we all know that that wall street guy went to that strip club and spent that money. >> on bitcoin. >> you cannot really refer to the charges as earlier -- as easily, or at all. merchants,or the there is no downside to accepting bitcoin at all, they never actually see them. >> right, they get the cash. >> if i pay in bitcoin, he instantly gets dollars from me. there is a third-party service provider who steps in who takes all the risk. >> they have a third-party? --right, i think they use >> how many companies? >> there are a number of them. what i pay someone at the grocery, the market for bitcoin, as you have proved, is incredibly volatile.
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>> it could easily be 15% or 20%. >> it is a very volatile market that they are betting on the long-term future of. while some of these merchants, like a grocery i ran into in brooklyn, the perfect waste or bitcoin. san francisco, brooklyn, berlin, the grocer said sometimes he will hold onto actual bitcoin and take payment in the digital currency. >> now he is a speculator? >> grocer turned bitcoin speculator. >> he is and he is very involved in the world of bitcoin. he owns a grocery store, two pizzerias, and a nail salon in fort greene that all take bitcoin. he has turned that into a really big e center. >> bitcoin excepted here. check it out. 10% off if you pay with bitcoin? >> to become a speculator, you have to make it back. this for been doing
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two years. he has done very well. >> if you were going to try to pay for your favorite items in bitcoin, you might want to get paid in bitcoin and our next guest has started the monster.com of jobs that pay exclusively in the digital currency. dan joins us now. the site is brand-new, you just launched in september, what kind of jobs are you posting? >> most of them are technical in nature. programmer, developer, graphic design. they also range from the odd job, like there is a job right now to create a puzzle for a puzzle creator. they range from that too, you know, positions like second market bitcoin investment trusts. >> i was always told not to put all your eggs in one basket. what is the appeal of getting paid in bitcoin? i guess you could say that getting paid in dollars is putting all your eggs in
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dollars, but what is the appeal here? >> a good question. the risk works both ways. it can go up and it can go down. really, the site is designed for people who want to get up taste of bitcoin but do not feel like investing. for example, if i am a graphic designer, i can do a logo for bitcoin and see what it is like and see if it is something worth investing in from their. dan, thathe sense, this is part of this new economy where you do not necessarily look for a job that will give you a paycheck every couple weeks, working there for 25 years, getting a gold watch, retiring. you are working with you guys who do coding, go into work on a project, then go to another company to work on a different project? >> that is exactly right, most of the jobs are freelance. the site is set up to accommodate all types of jobs.
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time, part-time, even internships. have not had any of those yet. it really is mostly for freelancers at the moment. >> in terms of the volume of people coming through? we are averaging 500 unique visits each day. we have a little over 1100 registered members and about 350 submitted jobs with 100 and 50 residue -- resumes. the real interesting number is the number of applications. these are high-quality candidates, cover letters, resumes. one applicant made a video cover letter. it is really neat. >> all right, dan. if you want to get paid in bitcoin, talk to dan roseman. >> just to see what is happening in the world of bitcoin. >> i am guessing that if you ask to bloomberg to pay you in bitcoin, they would say no.
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>> i will tell you that there is a sheriff in kentucky who was paid in bitcoin. >> pretty cool. they want their money to be there is for real. bank.ir own central >> may be confederate dollars, one day, but for now it has value. making movies in the cloud, we are talking to an awards founder about the film and technology event, coming up next right here on "street smart yuriko -- meet smart -- street smart." ♪
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time for the scene, where we bring you the business behind media, entertainment, and pop-culture. amc is set to go public, while the spotlight this week is on what the debut will be like for
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the industry, but one rebel has already given up on theaters altogether. he is the best-known founder of the webby awards. future film, technology potential. joining me now from san francisco, welcome. >> hello, great to be here. >> so, you joined the roster of content creators, real a listers there. tell us a bit about how the web series came together and how you sent that to aol for the home? >> i got contacted out of the blue in january that they loved my films and wanted me to do a series. it has been this amazing experience. we launched a couple of months ago. three different films about everything i am interested in.
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the response has been fantastic, 12 million views. really thinking about what this model represents for the future of the studios, as a filmmaker it was a fantastic collaboration. >> when you say it represents the future, what do you mean? asked -- explain for the benefit of the viewers what the future looks like. >> it is interesting, i had a feature documentary that came out in theaters a couple of years ago. that was great, but it was like trying to get everyone to go to the physical space of a theater. for this, you know, they say tv series, web series, but i like to call it the screen series. however people want to experience these films, whether it is on your cell phone, the internet on my television, it is also fluid, how people experience things. the fact that in a couple of months we make these, put them out there, and a couple of months it has 12 million views,
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the response is so immediate, people can access it all over the world, that is all very exciting as a filmmaker. this model, i think, represents the future. >> but part of this model is very -- there is just -- there are so many choices for people online these days. how is it that you are able to resonate or breakthrough and really get people? you have a ton of use, we have 8 million last month. how do you get those people to see your stuff? >> hopefully you are making strong films and then the public is either going to respond or not. we are really excited about the films. we have covered everything from the creative process to being a mother in the 21st century, to robotics, optimism. we had a full gamut of choices. i think what you are going to see, especially in 2014 and
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beyond, original films made specifically from the web, for the web. >> and they are short? >> the truth is i still make a long films, but making three- minute films to six minute films, that is the ultimate challenge. how do i distill this big subject into its essence? it works out nice. all of our episodes were released all at once. people call that injured watching, and i do not like that interesting as a filmmaker to see some people ,atching all eight episodes others kind of picking the subject that is interesting to them. as someone who is into the web and data, i am fascinated with how people experience it. some of it is out of order, some of it is in order, it is a new way to create and receive ideas and entertainment.
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>> i would imagine that there also needs to be a new way for you to make money. you are not doing this for free. how do you make money? >> i do well. i have people that pay me to make films. i have other projects where i get grants, i have investors on other projects. i have a film studio here in san francisco. i will tell you, you have a gorgeous studio there in san francisco. >> i was a bloomberg customer before i was an employee and i will say i have a lot of spec for the way they put the whole place together. it is a beautiful studio out there. i am very curious, on the deals that you did with aol, did they pay you directly? was there sponsorship from outside sources? >> they paid the studio directly and then verizon bought the first season. there is an ad that plays in front of each film, which is interesting, because a couple of years ago i think people's appetites were less for watching
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an ad. on television you might have to watch five to seven, but on the web you kind of know the arrangement, i just have to watch this one ad. happy to watch if i am watching something i want to watch. >> a good point. maybe there is a long opportunity there for the advertising at the end of the day. thank you, tiffany, filmmaker and founder of the webby awards. >> pimm fox is coming up with a whole slew of his own conversations. >> coming up, we have fast cars and classic rock 'n roll music. i will introduce you to the 2013 nascar nationwide series rookie of the year. kyle larson. and today and the rock 'n roll hall of fame, they named their newest members. we will talk to the president and chief executive of the rock 'n roll hall of fame foundation. he will be talking about the legend that made the cut, next on "taking stock." ♪
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time for weird wall street, where bizarre is business as usual. what are we looking at? >> something that we can all appreciate. do you hate when people speak too loudly on their cell phones in public? discrete -- comedian, greg benson, may have the perfect solution. get the freet to food. >> are you answering what i am saying? >> no, did not mean to be rude. on the phone with someone. art of crashing cell phone conversations. you sit next to the guy and start having his own loud conversations and he realizes that he is the jerk, but no, you are the jerk. in addition to crashing airports he has sham cell phone talkers.
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>> i do not get why people want to share their conversations. maybe because we walk around with microphones on us a lot? >> it is a daily basis, every day. >> people, they all get so loud. >> they want to do what you do every day. let the little people do it. >> i have not done my christmas cards yet. i have to work on that. i had them made. the digital age, christmas cards, they just won't do. ♪ >> this family set their tune to the will smith 1998 hit, miami. not bad. is awesome, actually. i was going to be a hater, but
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that is nothing but love right there. ♪
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♪ is 56 past the hour, meaning that bloomberg tv is on the market. let's get you caught up on the market. stocks were lower today, but not by a lot. the dow came up after a triple digit rally on monday, up i .3%. data on theighing month of november, unchanged from the month before. or today's performance in the markets, the fomc meeting finishes up tomorrow, which is when we will learn whether the fed has decided to reduce their bond buying program and if they start to taper or if they will
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leave the current policy unchanged. for more on tapering talk, we joined steve wood. according to the latest survey from bloomberg tom a one third of economists, 34%, think the fed will start to taper tomorrow. do you think that they will? >> i would not be in that camp. march is still the highest probability, but the fed is going to surprise the market, as insinuated in may, and the market really piped in that paper and they did not actually taper. i think that is pretty sufficient right now, i think they did some damage to their credibility for the future. it could happen during the december meeting, but i think it is unlikely. i think a new chairperson will be coming in with janet yellen and will -- janet yellen and what she wants to have happen could be good for her. >> we spent so much time talking about will the fed taper or not,
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but the conversation may be should be about is should they start to taper. do you think the economy and recovery is strong enough that we have reached escape velocity? >> a fascinating question. i would say my opinion is not that relevant. what i need to do is assess the fundamentals. i think that the fed is probably going to start to taper in march. from the calculation and methodology that they are using, the economy is probably strong enough to withstand the taper. assume that they could withstand the removal of stimulus, and certainly a rate hike would increase the fed fund rate. maybe even in the first quarter of 2016. they are going to dial down the medication, but still leave the patient in the hospital. >> when you look at the big jobs number from earlier this month, the headline number fell, but then a lot of people were dropping out of the race. >> kind of like good cholesterol, bad cholesterol.
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why did the unemployment rate come down? r shall be good reasons, partially for not. i think that the improvement in the labor market is real, consistent, but not brisk. it is a glacial improvement, but i think housing is a strong point. i think that what will happen between this year and next year is washington is going to stop pumping the brakes, so that fiscal deceleration, the budget deal, the debt ceiling, you know, the fiscal cliff, that will be removed and it will take the economy from a 1.6 to closer to three percent next year, which should give the fed more confidence. >> if the economy picks up as you think, where are you placing your big bets for 2014? >> look at what will be unattractive, like cash bonds. looking in the equity space we think the market is going to be fairly valued, not cheap, but not rich either, more stock the king security selections sector
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by sector, name by name, with valuations in europe still being attractive. i think that for more disciplined investors they will need to look for more market. >> we have to leave it there. that is it for on the market. ♪ .. ..
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forhis is "taking stock" tuesday, december 17th, 2013. i am pimm fox. you are going to hear from the chief executive of a company that could save your life and the life of your child. plus, the rising star of nascar driver kyle larson. he's going to explain how he's taking more risk around the track for a greater potential reward. and rock 'n roll -- how it connects to

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