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tv   Bloomberg Surveillance  Bloomberg  December 18, 2013 6:00am-8:01am EST

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market committee for the year after crisis, ben bernanke leaves behind a less independent that. did you know germany is amazon's second-biggest market? good morning, everyone, this is "bloomberg surveillance." it is fed they, december 18. joining me is scarlet fu and alix steel. there is a lot going on. >> we will start in the uk because unemployment help to 7.4% which is the lowest since april, 2009. it is nearing the threshold where the bank of england governor said officials might consider raising interest rates. japan, they had the biggest november trade deficit on record. u.s., it is also busy,
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seven :00 a.m., mortgage applications are coming out and then housing starts and then building permits and then the fomc rate decision. there were two big winners in the second biggest lottery jackpot. i could be one of those people but so far, the winning tickets were sold in california and georgia and the two winners will a $63600 $36 million -- million total. there could be more, you never know. i won $40 once. >> we won seven dollars once. >> let's do a data check as i cap my winnings from the lottery.
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up two daysrket is in a row. all of that is on the back of emerging-market currencies which are fragile. go onto our second screen screen which is more eclectic. the vxx is well over 16. indonesia is challenged at 7.72%. yieldk at the 10 year like mortgages and the pros are looking at the two year yield. we scour the papers this morning for the front pages. >> what about virtual
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currencies? china is cracking down on that coin. -- on bitcoin. the central bank band financial institution from dealing with bitcoin. china does not like how it allows you how to get around capital and trolls. -- capital controls. the u.s. seems open to it. >> we are holding hearings on it. miller is on 24 hour watch. bitcoin around $700 and it is now trading at $500 so he could be looking at a loss. our next front page, we go over to europe. ideal between russia and the
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is fueling the antigovernment protests in that country. russia is giving ukraine $15 billion in financial aid plus a oil.discount on they say that money is enough to plug a hole in the ukraine balance for about four months but there is no fiscal reform tied to that money. michael leiby writes about that this morning. >> people want to know what happens next. jpmorgan pushes back on the u.s. government by suing the fdic. after jpmorgan finally agreed to that $13 billion settlement over claims it mishandled mortgage securities.
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jpmorgan claims the fdic is responsible for $1 billion in liabilities it inherited. >> it sounds like a bad divorce. someone got paid a lot of money. >> this is about private losses. this is about deutsche bank national trust suing for $10 billion, trying to get money back to help offset the private losses. >> we don't know how much jpmorgan is seeking in damages. those are the front page stories. compromised budget cleared a key hurdle in the senate and set the stage for a final vote by today. peter cook cook has never seen anything like it.
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i was with the chairman of the president's council of economic advisers last night and he made a big teal about this good feeling on capitol hill. do you agree? i agree this is a change but i don't know how long the good feelings will last. the bipartisan deal gives certainty for the next two years but it is not the budget deal that many republicans and democrats had hoped for several months ago. it provides some level of certainty but the bad news is that the debt ceiling fight is around the corner, february 7. heard from mitch mcconnell who said we expect something out of the deal. what will happen on february 7?
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will it be a shutdown? deadline whene the debt ceiling enforcement that has been suspended for several months now as a result of the last budget at all gets lifted. once again, the debt ceiling is in force. we have been told by the treasury department that maybe there will be a month of extraordinary measures. will have to be some deal reached by early march. we will focus carefully on the house republican retreat that takes toys on the eastern shore of maryland in january. that will decide how this plays out. >> what about today? we need to talk about ben bernanke hubei beholding his last news conference -- who may be holding his last news conference as fed chairman. >> it's fascinating we could have this fed chairman.
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it will more likely happen tomorrow but janet yellen will get confirmed as the next fed chairman. we have not had their to sitting ready to go at the same time for quite some time. this is a big moment for ben bernanke and the big moment for janet yellen. does bank bernanke feel pressure to start the taper? does he feel any political pressure? does he want to make life easier for janet yellen? >> we will see you at 2 p.m. this afternoon. this hour ist ellen zentner. michael brown junior is also with us. ellen, i guess that taper is a miniscule taper.
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isn't it way overblown? with the failed act over the summer of the fed, volatility has been introduced into the marketing dan and markets have been expected taper ring and it is no longer does not going on forever purchases. we are prepared and markets are ready. that a mild taper, so what? >> in your study of said history, when in doubt wait. why should the fed acted they have every advantage to postpone? >> certainly, a more cautious fed has surprises every time. everyone who has bet against the fed has lost. that is a good argument
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was just made that ben bernanke could want it to be part of his legacy. to pairreally wants tapering with some kind of stronger forward guidance. to do that, you need a credible leader in the chair that will be there several years from now. janet yellen will not be chairing this meeting. >> if the fed acts now, do they have the ability to walk it back later? >> i think that would be very difficult. once they start tapering that ramping up purchases would be very difficult. >> we will have coverage of the fed meeting this afternoon. >> the twitter question of the day --
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we want to hear from you. a megadeal in the sports and entertainment business -- silver lake and william morris are teaming up to bike img worldwide. the price tag is said to be $2.4 billion. it creates an agency with top talent across sports, entertainment, and fashion. search for microsoft next ceo should end early next year. the list has been narrowed down to 20 candidates. they expect the successor will be packed in early 2014. amc begins trading today. it priced shares at $18 a piece. the ipo is forecast to raise about $331 million and marks the return to the public market iner being taken private
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2004. the chain was purchased last year by one of china's richest men. >> why do i think they will not take bitcoin? they will be more than happy this weekend. >> i saw "the hobbit" this weekend. and i stood in line. the chairs were awesome but the movie was not so great. we will talk about how is not unionized and that could change soon. we will look at amazon's troubles in germany coming up. if you missed any of our interviews, you can watch them on bloomberg on apple tv. ♪
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is my favorite ceo from dunkin' donuts. he will be with betty liu at 9 a.m. this morning. i wonder what impact the fed has. there is question about confidence with regard to amazon. hundreds of amazon workers in germany went on strike as pre- christmas sales were set to peak. germany is amazon's second- biggest market. >> i did not know that. of sales make up about 1/3
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the overseas totals. hans nichols is covering the story in the league zig -- leipzig. this is a cross-border story. it's more than that. .here are also concerns workers are concerned that amazon will open up new plants which they have announced in poland and in the czech republic in the labor will be cheaper there. that is their concern and they protested all morning and then they headed down toward city hall because they want to have a political front and the company front. far, amazon says they have been able to deliver their packages on time. it has not affected them. very american
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discussion. explain to our american audience the difference in the guild structure and the difference in labor in germany. this is not the same as a union disturbance in the united states, is it? >> the guilds would be more traditional vocations. or alder or a joiner carpenter is where the guild structure come in. comes in andon 2010, union organizers try to organize it. we have almost an american brave new world because these are new jobs. massive distribution centers, nine of them across europe. there are 9000 employees by amazon which are full-time. there are 14,000 temporaries and none of this existed five years ago. the ancient yelled structure which dates to the middle ages does not translate to the tech economy. that is the challenge with amazon but also with google.
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how do europeans deal with this tech onslaught? they don't know quite what to make of it. does this mean that amazon will replace live humans with drones? i think that's a fairly futurist notion. you have seen this happen like withuber and private cars which is causing trouble. but thisis still out is effectively going to be a huge problem for them going forward. amazon is starting to shift the workforce out of that particular region and into other areas. it will be incredible challenging for the workers to win in this. there is concern about losing jobs in germany to poland. amazon looks to expand further in germany?
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>> they want to grow in germany, it's the second-biggest market. it's about growth in other countries but they don't have a presence there yet. in -- and if ohio you can ship something to new is indeed oneope giant united states, then the borders matter less and transportation costs are not that high so you go where the cheapest wages are and they are cheaper in poland then here in germany. >> just ask the plumbers. thank you. we've got much more coming up on "surveillance." energy chairman and former ceo jim rogers will be joining us to talk about is confidence
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and the changing landscape of the energy market. this is "bloomberg surveillance." ♪
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>> good morning, everyone. at 2 p.m. with their coverage of the fed. i will have jeff rosenberg a of black rock at the 2 p.m. hour. >> unemployment in the uk falls to a 4.5 year loan. since april,owest 2000 nine. it has led to speculation the bank of england could raise
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interest rates as early as the end of next year. a surprise move the indian central bank. the reserve bank chairman left rates unchanged calling the decision a close one but said he wanted to wait for more data, insisting he had not gone soft on inflation. the central bank has raised rates twice in the last four months. russia has the ukraine at $20 billion bailout package which includes $18 billion in loans and a discount on natural gas supplies. it comes a week after the ukraine turned its back on a eu agreement. it's going to be an international week all of a sudden. smart morning must reads -- >> mine has to do with college ratings and the stress over finding the right school for your child. cut as come out
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with a new rating system that ranks colleges based on value. we note there is tons of data out there that people are trying to get through to make it more useful for prospective students and their tuition paying parents. right now, people are swimming in the data and don't know how to get through. >> i am suspect of racing a college. >> how do you rate education? i learned had to go into debt and pay a bill which is part of my education. ellen zentner, help me out here. >> it's a big business.
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were a college, i would pay someone to rate me high. it's a huge business. it's the biggest burden of family will carry and it's a huge decision. you want to attract the dollars as much as you can and rankings are the way to do it. on we've got more coming up "surveillance," including ben bernanke. his legacy is next. ♪
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>> good morning, everyone. it's said day. -- it's fed day. moving off that
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good uk report. the euro is going nowhere. it is a nowhere data check or was a big gainer in trading yesterday, up more than five percent. tojoined with dish network try out a wireless internet service. i want to mention d, down by 3.5 %. delta is one we will continue to watch. speaking of storms, it is fed day and the focus will be on ben bernanke in what he says at the 2 p.m. news conference on tapering. it will probably be his last news conference ever. what will his legacy be? did he avert another depression
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making him one of the greatest fed chairman's ever or lay the groundwork for economic disaster? are two extreme views but here is michael mckee. both are a possibility. it will be years before we know his true legacy. it is fairly easy to say that he probably helped avoid a great depression. on the other hand, he did not foresee what was going on and it was his job to do something. it was his job to be out in front of the economy. the bubble formed in housing. you've got to get out of it, >> will janet yellen the secure his legacy? thatare in
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they said this was his academic interest, avoiding the great depression. >> he studied the great depression as a college professor. that was his expertise but nobody knew we would have another one. he took the lessons he learned from that and applied it to the u.s. which is not to just sit there. he did a lot. over the long-term, was what he did effect of? there was a real difference and the ben bernanke fed versus the other central banks? activist. much more he had a more wide circle of advisers. ellen zentner, what does the lame-duck chairman say this afternoon?
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for?will you be looking >> we will be looking for the focus on what you will do now. nextuld very well be the president of the baseball organization. the man loves baseball dearly. aside from the niceties, we think he could provide a lot of content and guidance if they are forming a consensus toward the options they discussed in terms of forward titans, setting the stage for 2014 and how they view the outlook. >> may i suggest the outlook is immediate and the media is low inflation? we are not there but that's got to be front and center of this meeting, discussion on price change. >> absolutely, the last data
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point that they watch is core pce and continued to decline going into this meeting. that has to be worrisome. out threeke had laid criteria for tapering earlier this year. he said it has to be at her incoming data and a stronger outlook. we've got that. plenty of policymakers have shown we have had substantial improvements in the labor market. criteria was his third . it has not happened yet. will push for it to be a big deal. what you said about providing guidance, come january or maybe march, in theory you will have a new chairman and vice-chairman and the a new governor and you will have new fed bank residents and you will have new bank residents rotating onto the board. how much titans is he going to
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be able to provide about -- how much guidance is he going to be able to provide with people who are not there yet? >> there is uncertainty about how those empty seats will be filled. they will have no voting record. stanley fischer's possible nomination is that janet yellen will have no say as to who gets appointed to the board. she is not a political insider and stanley fischer would not have been her first choice. she is dealing with a lot of uncertainty. how well can she muscle together a consensus when she does not know these folks she will be working with? >> what does today's fed meeting mean for the average american? it is a lot of fancy people but what does it mean to the average american? >> the average american could
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watch the press conference and concentrate on how well ben bernanke describes the incoming data and the outlook. this is the first time they will not be revising downward their growth forecast. that says a lot about how the outlook is being viewed through their eyes. >> what does it mean for entrepreneurs? when you hear this talk about what the fed will do with regard to tapering, what impact does any of this have on the amount of money that goes into venture capital? at flowsre not looking in the near term for us. low, youst rates stay are obviously finding situations where people are moving into more risky asset classes. it makes our industry -- >> you are dealing with free money? >> i would not say we are dealing with free money. >> there is a lot of money
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looking for a home? >> in our industry, you have seen a flight toward riskier assets and the move from the partner base into our category then you had five years ago. >> you sound like an economist. let me translate that. are we in a bubble? i am more realistic than jim bullard who said i can recognize bubbles and we recognized this going into the crisis. i don't think that's the case. i think it is difficult to recognize bubbles. we were providing caveats for every single bubble going into this financial crisis. andree with greenspan bernanke that it is difficult in real time to recognize bubbles. >> and what do you do about it? >> and how do you get enough of a consensus you are seeing this?
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>> janet yellen raise concerns about the housing market early on but she was out there by herself. if you are the only one recognizing there may be a hubble, how do you pull together a consensus around that? >> that as our twitter question of the day -- what is the ben bernanke legacy? you can tweet us what you think. >> hero or zero? bloombergure to watch television for special coverage of the f moc announcement and the ben bernanke final news conference at 2 p.m. live. up, will taper talk house the u.s. housing recovery? ♪
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>> good morning, everyone. home prices in china keep rising in the biggest cities. they were up 18 % from one year earlier. these rises come despite efforts by local governments to cool the real estate market.
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a plunge in law school and enrollment, the number of first- year law students fell 11% this sinceo the lowest level 19 77. the american bar association says the drop reflects concerns about the job market and the price of a law degree. two winners last night and the $636 million mega millions jackpot but none of us one which is upsetting. a gift shop in san jose california sold one of the winning tickets in the other was sold in atlanta. sales yesterday put the jackpot to a near record amount but the chances of winning the mega millions has become tougher. in $259ooking at a one million chance. >> you are saying there is a chance. " it's from dumb and dumber. "
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my single best chart is on the state of american housing. equity and how it went negative. there was negative equity for a while after the financial crisis. it has shot up over the last two years as prices recover. mortgage debt is the red line. it started to decline steadily as households deal ever is -- deleveraged. can this continue? one thing that could send this back down is an unruly reaction to the end of tapering are. you can see home equity start to tumble more. >> if you are able to refinance at lower rates. >> we are at a point of
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inflection? >> and it is fragile right now. >> . his u.s. housing starts. -- here is u.s. housing starts. you can see it in the perspective. gete got so far to go to back to the greenspan fed? >> yes, we do but do we need to get back to that time in terms of economic activity? the housing market is a great example. will we get back to the homeownership rates of your and i don't think we want to. we need to build properties for renters. even if you have a greater share of young folks going into renting instead of buying come you still have to build homes for them so it is still supportive of the housing markets. you don't get high homeownership rates and the leverage we had before. >> on this fed today, we've got
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first look photos. we have three men trying to paddle their way out of a flooded area in gaza where four days of potential rain have caused massive damage. it caused at least one death. aren't those the three guys from the fed? >> didn't they have a snowstorm earlier this week? >> global warming is not real. that was sarcasm. we want to highlight an artist -- who walked on a high wire in the french alps. that, erikere, done
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schatzker did that at dollars two years ago -- at davos two years ago. >> speaking of jamie dimon, life is a competitive sport for the jpmorgan ceo. this is a great photo of the families annual holiday card. they took part in what can be described as an epic tennis match. jamie dimon is in the blue shirt showing off an impressive backend. he is a big tennis player. >> indoors? matt brown junior is with us.
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his conference calls are like a free-for-all. would you like to see more of world init of the vc the ceo world? >> of course. >> he gets it knowing. >> i want to see mike brown's holiday card. >> we don't have one. it's a virtual card. >> i went with the grinch and the reindeer at the top of the mountain. >> that is perfect. my kids picked that out. >> of course they did. you is 45, the number of startups that have landed $1 million this year. is this a bubble? ♪
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>> meg whitman as it is getting as big a raise. took one dollar for her first two years on the job but now she is making $1 million per year.
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hp and google are recalling chrome book chargers because of melting concerns. shares of tesla have gained 26% and less than a month as it recovers from reports of fires in three of its electric cars. the automaker is moving ahead with expansion plans in china and moving ahead with a lower- priced electric car starting in 2016. >> you wonder where they will be in 24 months. year that elon musk has had. >> are they a tech company or a car company? >> there a company that depends on state subsidies tummy tuck. -- state subsidies. been thestartups have
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next big thing. at least 45 companies have gotten more than $100 million in funding, more than double we saw in 2010. our guest is mike brown. he helped the version group invest in startups to starting up his own shop called barry capital. startups get all the glory you choose to focus on enterprise startups, why is that? >> they make money. realof the time, these are companies early on in their life and they are growing customers and starting to build revenue and profits very early in the business. we tend to focus on that. i have been an internet investor for seven or eight years mostly focused on software. >> what is the goal when you go into a transaction? >> in 7-10 years, we want to
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return a lot of money to our investors. >> but within the transaction six employees or whatever start up, what is your goal? those is really to build customers an early traction in the market. studies get early case so you can really show to the larger investor that you have a company and a product that people want. >> you invest in many companies we know about. there are a lot of questions about whether we are in a bubble when it comes to actual cap -- venture capital investments. the amount invested has been steadily rising. it is the highest since 2001. how is this time different than the peak of 2001? >> i don't know if it is much different.
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i still think capital flows are rising in a large way. you are not really there yet. most of the bubble talk is overblown. you're talking 400 companies going public to a and in 2013 i think it was 50 companies in total so you need more to build a larger business especially in the areas we play. are real businesses that have a lot of revenue and profit. the numbers just don't check out. i think it is still early. we are definitely on an upswing and supply is increasing but it is huge. >> there is a lot of money in the tech startup world. what is the danger in over funding a startup? >> you get mission creep most of the time. >>these companies have a tremendous amount of cash on their balance sheets and can do more that is not more than that's it is not the core focus. they go into new business lines and over higher and reshape how they are thinking about the
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trajectory and that is problematic. economics,world of there is tons of money, is there a scarcity of ideas? >> i would not say brilliance is knocking down the door but there is developing ecosystems. >> is new york working? >> yes, san francisco, obviously. important, thee person or the idea? >> the person, execution risk is huge. we are looking at two or 3000 companies per year and maybe we will only fund eight of them. when you look at the trajectory, it's how fast and quick at founder can move. all the time.eaf
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has it worked? bitley?tter by >> that's more a big google or someone who cares about the information sharing. >> what is your involvement in these companies once you invest? do you take the money and run? >> no, i stay involved. we are usually on the board and i literally spend two days of my work working alongside them and growing these customers and helping the scale. >> we will need to bring you back to find out how these companies are doing. >> we got through this discussion without using the word " disruptive" which is good. let's use a desolate look at a disruptive currency report. ukraine and indonesia are
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front and center and there's euro-dollar. that is the forex report. >> in the next hour, jim rogers joins us to talk about the energy market. ♪
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>> this is "bloomberg surveillance." >> peace and goodwill on capitol
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hill as republicans and democrats tossed the grange out the window. -- the grinch out the window. there is a final budget committee meeting. ben bernanke leaves behind a less independent said. and china, they ban bitcoin. matt miller goes on the search for the mysterious founder of the coin of the digital realm. we're live from our world headquarters in new york. it is wednesday. i am tom keene. fu and alixscarlet steel. our guest host is james rogers. he is a spokesman for energy and coal and we will talk to him about the future. we assume electricity. >> so far it has happened. energy, i think the
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lights went out in 1942. the morning brief. >> we want to update you on what happened overnight. u.k. employment fell. it is the lowest since april 2009. officialsy has said will consider raising interest rates. japan is reporting the biggest november trade deficit on record. imports climb over 21%. u.s.,ic data here in the we got mortgage applications out and we are down over 5%. at 2:00 p.m., the fomc rate decision. after the bell, we have oracle. there were two big winners in the second biggest lottery jack pot in u.s. history. the winning tickets were sold in california and georgia. the winners will split the $636 million jackpot.
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stood a chance. >> assuming your husband went to california to buy the ticket, what would you do with the winning? charity, we're going to buy a house in paris and i am going to do direct feed for free. we have it all mapped out. >> did you buy tickets, tom? >> no. cliff notes to the plan. we talk about this a lot. john henry, rest assured. it is the fed day. there's company news as well. >> let's talk about jpmorgan. the bank is soothing -- suing the fdic. comes weeks after they agreed to a third $2 million settlement with the u.s. over
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claims that ms. sold mortgage securities. china is cracking down on bitcoin. accepting newr deposits. ago, china's central- bank band financial institutions from dealing with the virtual currency. silver lake and william morris are teaming up to buy img worldwide. the price tag is said to be $2.4 billion. agency with a top talent across sports, entertainment, and fashion. clients and clued -- clients include peyton manning and gisele bunsen. perhaps they will extend to a television arm. >> to break in for a moment, general mills reported earnings.
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consensus ofhe $.87. per are reporting earnings share that missed the average analyst estimate. second half earnings growth will accelerate and the full-year forecast has been reaffirmed. >> there will be a lot of talk there about commodities. get to what is going on in washington. they're going on recess soon. the compromised budget cleared the senate and sent the stage for a fight -- and set the stage for a final house vote today. we could be set up for another physical clash after february. we will go to washington and check in with peter cook. the thinking here is that we avoid a government shutdown, but we still have another fiscal showdown to have to deal with in
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february. >> it is not all good. we have a budget deal, and it cleared the procedural vote in the u.s. senate. 12 republicans joined with the democrats. there will be a final vote as soon as today. nobody likes us plan, but it is better than the alternative. that would have been the prospect of another shutdown as soon as january. it includes a debt ceiling increase and does nothing major to put a dent in the u.s. deficit going forward. and title men and taxes off the table. -- entitlement and taxes off the table. >> where senator mcconnell? >> he came out yesterday and explained why he voted against it. he said he was an architect of the budget control act and by violating the caps, he said he could not support it. what you need to know is the
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reason you haven't heard that much about him is because he is running for reelection in kentucky. has been challenger calling him out every day. yesterday he voted and stepped to the microphones afterwards. voted on a budget and it should be expected today. ben bernanke is hosting perhaps his final news conference. in washington?d are people sad to see him step down? the legacy of ben bernanke, this is a guy who stepped into this job, saw storm clouds on the horizon, the easy handoff from alan greenspan and then an academic who studied the great depression went to work trying to avoid the next great depression. history will be his judge. , wes too soon to say haven't seen how the unwinding will play out.
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theentioned on monday federal reserve act. the people close to him have respect for him and what he did. the kind of leadership he presented during a time of crisis, and the history books from a lot of the folks i'm talking to, those who are critics of his or not, they realize he had to make tough decisions and a lot of people in this town did not want to be in his shoes over the last eight years. >> thank you. we will see you at our 2:00 p.m. said that broadcast. fed broadcast. does ben bernanke run the meeting or does he deserve -- defer to yellen? >> he runs it, she has not been confirmed yet. presentationthe for 15 or 20 minutes?
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>> they go around the table one by one and give their economic outlook and what they think they should do as a group. >> does she take questions? >> they can question each other, but that is generally not done. give a presentation. it takes a while to get through the whole process. going to see press conference after every single meaning -- meeting? >> that is a wildcard. it is a possibility. people in the fed have been moving in that direction. wall street treats the other for meetings of the fed as irrelevant and they don't want that to happen. ae problem is, if you adopt policy of press conferences, people think they're going to start tapering at the next meeting. our guest host, james rogers. rogers, let me get your
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attention. would you like to make 12% per utility? how did he do that? wonderful to have you here. i guess it is a distorted economic system. what you think about is we are historically a defensive stock. we are a yield play and as they take the foot off the brake and let a money flow, that is going to translate an entire sector. you will see the sector move down relative to where -- we are the best of the heard. we are the fastest of the slow rabbits. the reality is the fed and their policy has implications in a macro sense for our industry. about congress.
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from a business perspective, i am glad to see the compromise occur. washington i see putting the training wheels on after having been dysfunctional the last two years and starting to show they can work together. >> jim rogers with us from duke energy. credit suisse and jeff rosenberg will join us. bitcoin, we will discuss that next. thee going to look into mystery founder or founders of the coin is on surveillance bank." -- on "bloomberg surveillance." ♪
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>> good morning, everyone. rogers, chair jim at duke energy. mr. rogers has seen the generation of take it or granted -- for granted electricity by coal. how should washington respond to the death of coal and the rise of the shale energy revolution?
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his cold dead? >>: is not dead. is not dead. china and india will continue growing their use of coal to be toe to bring electrification those countries. in the united states, you see a moving toom coal shale gas. shale gas has been the most important development in the last 15 years in our country. >> you have the greatest access to smart people to tell you about fracking. do you have a confidence that we in ao shale hydrocarbons safe manner? now i have great confidence in our ability to identify the problem from the water is an issue, the chemical mix is an issue, the release of methane is an issue. smart people are at work, solving those problems.
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it is going to be transformative to our country. think about this -- because of the use of shale gas, our emissions of co2 are the same as they were in 1992, even though we have more people in the country and a much larger economy. that is a consequence of the innovation associated with the development of gas. --i have to ask you this there was a utility revolution, utilities went off and did things. you generated shareholder return in the recent decade. what did you do write that the other utilities did wrong? that the other utilities did wrong? >> i focused on the business. a hundred utilities in the united states, they're only 50 today. what i did was consolidate three different companies together and as a consequence, we reduced cost, become more effective in
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operations, and that is put us in a stronger position to provide lower-cost service to our customers than we would have otherwise and at the same time generate significant return. >> congratulations on a great tenure. coming up, forget about expensive electric bills. -- beef is like a thousand dollars a pound. five days a week. ♪
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>> it is our twitter question of the day. i wanted to do two days back-to- back on beyoncé. what is ben bernanke's legacy? tweet that out. we would like to hear from you. what has he accomplished or not accomplished? this is "bloomberg surveillance." i am tom keene. scarlet fu and alix steel are
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with me. jim rogers is with me. tope have fed-less headlines. the jobless rate is dropping to 7.4% in october. that is the lowest since april 2009. the fall and unemployment has led to speculation that the bank of england could raise interest rates as early as next year. there were two winners in last night's $636 million mega millions jackpot. one ticket was sold in california and the other was sold in atlanta. become harder to win as the pool increases. to russia with burgers. shake shack is opening its first restaurant in the country and moscow. they will go for more than seven dollars. that is 50% more than in new
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york prices. russia 30's opened in years ago and a lot of people stood in line for their grand opening. >> i enjoy and they're fine with zine a few nights ago -- fine cuisine a few nights ago. my people brought it to me. >> your people. i see. >> so spoiled. >> did you pay them in bitcoin? >> i should have. it is of epic proportions, we are on day eight of matt miller's 12 days of bitcoin. of purchasing with the immortal doubloon. china could care less. matthew miller has gone to a
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loss position on his volatile bitcoin. he is in search of the people that put this scandal together. are you at a loss position? >> i am not yet at a loss position, although i am getting closer to zero. to be fair, i have spent a lot of the bitcoin i have gotten. i bought a plane ticket, concert tickets, video games. you are actually making money. that is cool. >> i spent as much as i could quickly. the news today about china has driven bitcoin down another 30%. what was worth a thousand dollars to me is now worth -- >> who is this person? >> the person or group of people , organization credited with , it is anitcoin interesting guy, if i can use
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that term. in 2009 he released the first version of the software. he put someone else as head of .he bitcoin foundation amoto announced he was moving on to other things. no one ever met him in person. >> and he may not be a man. >> he may not be a man or one person. some people have speculated that he is gavin andreessen, but it has not been proven. >> why do we care that we don't know who this clown is? >> he created currency that was trading for over $12 billion, for another thing, this guy or group has the first 900,000
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bitcoin mines. has ding to a blog, he mined 900,000 bitcoins i have never been touched. >> i'm ripping up the script. mined? jim rogers of duke energy mines coal. a bitcoin?ining >> it is what you do when you go to verify the transaction. many people are lined up trying to verify the transactions and the one guy that wins the right to verify the transaction does the work and gets 25 bitcoins as a reward. people who engage in bitcoin, do they follow the news of china tanning -- >> absolutely.
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i was looking at the sub reddit for bitcoin. the third most popular post was the u.s. suicide hotline with a little clause that said it is only money. these people are following, whether they like it or not, the price swings and they are following what china does. >> jim rogers, do you believe in this stuff? >> i'm not sure. i live in the physical world. you accept payment for electricity with bitcoin? >> i don't see us doing that. business -- we do business in the united states and latin america. i see real currency that is grounded behind government. more to come on this, but i don't see it as the future. >> is there some government for bitcoin? is more excepting of bitcoin. china is trying to block it out. >> day nine.
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matt miller, thank you so much. >> coming up, jpmorgan sues the fdic. ♪
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>> this is "bloomberg surveillance." i am scarlet fu. the dead is making its announcement on tapering. treasury prices are down. most expensive thing on the menu and it melts like butter in your mouth.
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beef comes from japanese cows that are raised under strict guidelines. the japanese are not the only one who have turned these into big business. >> wagyu is expensive. it is not only one of the greatest tasting meats in the world, but it is the most expensive meat in the world. come here, big guy. come here. time to eat. they love their oats. what we do that is different, we are raising wagyu start to finish. here, raise them here, finish them here. the whole coach or -- culture of ofyu is opposite the culture
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commercial beef. wagyu is about time is your friend. they are raised all naturally, no drugs, stress-free, humanely read -- raised and they have a special japanese diet. soy meal, minerals, some cracked corn. >> in from the farm. just beneath ft. wayne indiana, --eph in the beef may skiing making business. we are thrilled to get you on our set. what is the difference in the beef you brought today. we have something i recognize and something i don't. >> thank you for inviting me. this is to show the different in quality. this is usda prime quality, the highest grade the usda has in america. this is wagyu beef.
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you can see the marbling difference. we are 12 grades above prime. is an older or younger? >> this was probably 18 months. takes aboutof wagyu 30 months to finish. >> how do you get it to be so luscious and fatty? i wrote the book "america's wagyu trail." it has been shrouded in secrecy for hundreds of years. we do not massage them. the guys on the farm drink the beer. it is about genetics, all- free, humanelys- raised. beme at a steakhouse might $50, at our restaurant in
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roanoke, indiana, we are trying $90 for a five ounce ribeye. in new york it would be double. >> what is the stomach for people to pay $90? >> we can't keep enough. >> there is a shortage of this. >> is it scalable? in americae beef achieves the usda quality of prime. exceeds theu quality of prime. when crossed with other breeds, we can completely change the quality equation of beef in america. >> d.c. whole foods market it's -- do you see whole foods more of thisng fancy beef? >> i think it will revolutionize the quality of beef in america. >> we are going to rip up the script.
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this is serious "bloomberg surveillance" moment. what are you wearing on your hand? ringat is a world series with the yankees. i started my career here, met my wife year in 1977. >> what did the japanese feel about you taking their trade secrets and exposing them in the u.s.? i think the japanese are grateful because we are exposing wagyu, there are national treasure, and we are exposing it to a country of 330 million people. it is a much bigger market. i have tried it, loved it. i tried a little bit because
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that was all i could afford. >> let's get to a data check. are falling.es that is pushing a big yield. the 10 is at 2.5%. good morning, everyone. we are on apple tv. that is our new announcement. go to bloomberg.com for all of our interviews. i am tom keene. day with scarlet fu and alix steel. jim rogers, chairman of the board with duke energy. we have earnings out on fedex. there may looks like a mess. earnings per share adjusted of a dollar 57. fedex raised its four-year earnings forecast, growing eight to 14%.
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fedex shares are trading lower in the premarket right now. another headline that just broke, caremark boosting its dividend. all of these companies coming out, all of them coming out to boost earnings per share through buybacks. >> that is where it gets difficult. speaking to jason furman last night, his big mystery is investment for 2014. shotere going to be a new of cap acts? you on sirius xm and television as well. wagyu beef, let's talk the economic of this. what is a cow worth? >> a full-blooded, finished wagyu is about $6,000.
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in tokyo, is about -- it is about $14,000 or $50,000. -- $15,000. >> how much is a cost to raise it? cost to raise it? >> it is all natural. it is the scarce genetics. the cost would be about 4500 bucks. more people doing this? why don't i see fancy beef more often? is it just people won't pay the price? >> it is scarce right now and unknown. there's a big difference between in --al wagyu beef raisin and raised in america and imposters.
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we fight it big time in the heartland. we're used to cowboy steaks. i am a big eater. that five ounce ribeye, i can barely eat it. it is dense with flavor and nutrients out you. once you taste it, it is a tasting experience. it is not a gluttony experience. jim rogers, chairman of duke energy, have you ever had wagyu beef? >> i have. it is delicious. i like the idea that being smaller, not larger. i amu think about it, eating more vegetables than i ever had and this is a good complement to that. >> this has been great. i was talking to my executive about this. a lot of people say this is terrible, it is fatty.
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we should go out any trout. how do you respond to the anti- againstw that pushback the entire beef industry? , iwhen i first had wagyu thought something that good cannot be that good for you. the fat iss, monounsaturated fat. they have an unusual ability to create healthy fat. no drugs, no added form owns, naturally raised. >> domino's pizza is introducing a $50 wagyu pizza. as a goes mainstream, will it disrupt you? >> not at all. there so much growth in america and around the world. >> who is going to buy a $50 pizza? >> maybe you will. >> i am down of famiglietti. a plain cheese. , plain cheese.
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clinicall have more on fighting in washington. keep it here. ♪
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>> it is fed day. futures are up, it is "bloomberg
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surveillance." 8:00 a.m. this morning, that much closer to a 2:00 p.m. fed announcement. >> you will be in the thick of the said action -- the fed action. >> my first job was working at dunkin' donuts. they love their coffee. the hazelnut coffee -- >> did you make the doughnuts? >> i did not make the doughnuts. i knew the baker. >> i have a new respect for you. was 15 when i was there. >> did you ever throw a donut and a customer? >> no. i tasted every variety.
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travis, five years as ceo, so he is celebrating that milestone. he is going to be joining us. he will bring some doughnuts. this is an interesting fact that i learned. they have almost doubled the locations here in new york city than starbucks. >> i did not know that. >> there are almost double more franchisees. >> and lie on your show today? -- and my on your show today? >> yes. >> save me a boston cream. morning movers this morning. package by fedex, fedex shares are moving. their second-quarter earnings missed analyst estimates. the number four second-quarter earnings was light.
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revenue is coming and lighter as well. the company raised its forecast. this is the first set of results reported since dan loeb came in and took a stake in fedex. >> this speaks to the spirit of the nation's capital economy. .t is just getting it going similar story for general mills. missing second-quarter earnings. the currency exchange is expected to be a greater headwind than estimated. they're blaming currency issues they are. -- there. the back half of the year is looking to be better. >> we're watching shares of 3m. using cash to boost your buybacks. they gained the most in 16 months on their dividend booth -- boost. this goes back to the idea of
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cash and not reinvesting in themselves, but using the money to buy back shares. -- i would pay attention to this. they're going to come in with billions of dollars in buyback. up there is talk about pent- capital expenditures. coming up, an energy revolution in the u.s. ♪
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>> this is "bloomberg surveillance." i am scarlet fu scarlet fu. our guest host is jim rogers. we want to talk about jpmorgan. turning the tables on the government, they are suing the fdic over claims tied to bad mortgages sold by washington mutual. joining us now to discuss this .s michael holland the lawsuit is for $1 billion. they settled with the department of justice for $13 billion over bad mortgages. the numbers are not as significant as the symbolism of this move. what does this tell you? >> the symbolism is so clear.
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it shows how far the silliness has gone, how overreaching the regulators have become. you have the institution that was pursued by fannie mae and freddie mac and the fdic and to save the008 largest martial bank failure in history. they came in and several years try tothe regulators extract more money from them. case.s a straightforward they did everything very quickly in the panic days of 2008 in a straightforward exchange. many of the things were left undone. this is one that was not left undone. i believe the document is clear that the fdic receivership agreed to indemnify and hold
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jpmorgan for any liabilities of washington mutual. >> did jpmorgan win here? will that help them pay off some private lawsuits? think it is more than that. i think they finally said we want to put all of this behind us. jamie dimon has said he wants to put this behind him. terms ofo egregious in what regulators are trying to do in terms of reneging on the few things they were going to give to jpmorgan in terms of helping out. i think it is a principle thing more than money. >> everyone knows that you are a considered bowl on the equity markets, tell me about the share buybacks that we are seeing. is that reason for optimism for next year? >> yes. i heard your comments before about 3m, i own it.
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i think it is a signal of a move on their part in the stock -- and the stock shows you what the market reaction is to that. we have a record high in terms of buybacks. isof the daily trading plus all about companies buying back their own stock. they are the biggest buyers. atcourse it is a huge wind the back. >> thank you. we appreciate your perspective. >> we are going to return to washington and the trouble brewing there. -- trouble brewing on the left. her plan was attacked and was called a fantasy. war and want to bank ceos to come clean on their donations. warren wants bank
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ceos to come clean on their donations. of third way is in washington. tanks.re think sometimes that is a good thing, sometimes it is controversial. jim, let me start to you. where is senator war and -- warren overstepped a left perspective? >> she is a passionate and powerful voice in the democratic party. was the took issue promotion of a plan that would expand social security benefits for every single senior citizen in this country, no matter how wealthy they are, and whether they put more money into the system or not. when we think of the problems that this country has, this is not we should be doing.
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inhave areas of investment roads and bridges, and this is taking it in the wrong section -- the wrong direction. a rookie mistake by the junior senator from massachusetts? the senator has been a great senator on a host of issues. one can have agreements or disagreements on her social security plan, but where i think the center and left have concerns is growing economic inequality in the country. importantincredibly issues and it is wrong to criticize that. saw in a poll that came out last night that independence , by 60%, are concerned about the wealth gap. elizabeth warren and president obama have raised concerns about
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growing inequality. >> in calling for these think tanks to disclose their donors and for bank ceos to disclose their list of donations, she is trying to highlight the links to washington. how often do corporate backers weigh in on your policy positions? >> we don't listen to any donors of any kind in terms of determining how we take a position on one issue or another. we spend a lot of time focusing on economic inequality and we have released our supporters. organization, the ties between their supporters and their position is very much overblown. >> is the progressive populism we are seeing in the democratic party cannon to the tea party for the republicans? >> there is a split in the
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republican party. there is a civil war. democrats are having an argument. we have these arguments before and we get together and in the end, we unify. on those areas, there is a lot of agreement. on a lot of issues there is a lot of agreement. what you are finding the disagreement within the democratic party is towards entitlement, what should be done with them, when it should be done, and how they should be fixed. that is where you are seeing differences in the democratic party. andill debate it vigorously we will be together. >> you call it a debate rather than a civil war, but is it it in danger of holding back modern democrats in pushing them to the left? >> i don't think so.
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president obama is a grand bargain democrat. he has tried to reach a grand bargain several occasions. trimming ofsome entitlement benefits, particularly for those who are wealthy or seniors. there is room in the party to have this discussion and come together. >> the debate ways on. -- weighs on. there is a lot going on in washington today. >> we're going to go to radio with terrific guests. coming up on bloomberg television, a special coverage of the fomc statement. then, onto ben bernanke's final press conference. michael mckee, jeff rosenberg will join me. >> we are looking forward to that. over to radio.
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let's answer our twitter question of the day. what is ben bernanke's legacy? overseeing the world's largest while not bowing to political pressures. he is like the cat in the hat. he tried to fix the mess but all he did was make it worse. ask this question in a few years. finally, he turned around the economy despite headwinds from a do-nothing congress. jim rogers, former ceo of duke energy, what do you think his legacy is? at athink he stepped in time when congress was dysfunctional. we have seen signs they're starting to work together. i think about the earlier interview you had, what you're really seeing in washington as
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the democrats moving further left in the republicans moving further right. what is missing are moderates. >> maybe you will take a job in washington. >> i don't see that in my future. >> we will be back with more. ♪
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>> good morning.
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you are "in the loop." ben bernanke and other fed policymakers are wrapping up their two-day meeting today. remember that bernanke's news conference will be 30 minutes later. coming up short in the fiscal sector here in an airline reported earnings that missed estimates. fedex raised its forecast for the entire year. shares of amc began trading today. the movie theater chain controlled by china's third millionman raise $302 and invited members of its customer loyalty plan to take part. an unusual aspect to this ipo. we mentioned, chairman ben bernanke will be holding what is likely his last news conference today. his term

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