tv Taking Stock With Pimm Fox Bloomberg January 3, 2014 5:00pm-6:01pm EST
>> this is taking stock for friday,. now the major stores -- all that stormy winter weather. we are going drinking and dining. i sit with innovative names in the business on how they see the year ahead on what to eat and drink. glasses with style. why celebrities are going to be wearing his products at the
golden globes. headlines from my radio cohost, carol massar. >> ben bernanke said the headwinds may be waning. the outgoing federal reserve chairman says the country is poised for faster growth. he pointed to financial healing in the housing market and monetary policy accommodation. " total return funds lost its title as the largest mutual fund in october. $41.1 billion last year. pulled $4.2 billion in the month of december. u.s. crude oil imports fell to the lowest level in 16 years. this is according to the energy administration.
the fewest since january, 1998. the numbers are based on four- week averages. those are some top headlines at this hour. >> thank you. breaking news from bloomberg. liberty media corporation. they plan to make sirius xm a subsidiary of the company. the bloomberg radio provides programming to serious xm. talk about what this means. >> he is -- if he is able to bring them in, they stand to benefit from the growth. it has been doing well over the past few years. it has been trading well as well. that is on the face of it. he gets the benefit from how they are doing on the market.
>> currently, liberty radio owns 52% of sirius. they have control. the proposal is that liberty is going to create a new stock. they will do a variety of exchanges with shareholders and their own current shareholders. iriuserious -- the s shareholders will have 39%, while 69% goes to liberty. >> this gives one stock to trade. >> just the liberty stock. tax-free. that is what john malone is known for being a financial wizard. that is the key thing. he loves tracking stocks. he loves to bring them back in. this is one of those instances
where he is trying to get siriuss for liberty and shareholders. the actualut strategy for the future? we were talking about the possibilities. you have sirius on the dashboards of new cars. industry.bile the gives him a place on the dashboard. he also has your connections at home. there are possibly two ways. >> we know that john malone is one of the people behind charters bid for time warner cable. this will be a big cable deal. he will help create the u.s. cable industry. >> he is one of the pioneers. >> he helped to grow and consolidate it. sirius could be a dial a lot of
.hese cable system i am sure he's going to want to have some say of owning it out right. a gift simplest ability to pipe sirius content into cable networks. run around thend telephone companies. verizon, at&t. you go over the wi-fi signal. the is a popular way and expensive way comparatively to place phone calls. that -- >> that is a great point. they're looking for new ways to grow. wrote -- growth has been down. they need to find ways to exploit revenue. if it is wi-fi hotspots, you can hotspot.e
>> thank you. following what is going on with liberty media and sirius xm. withain resorts are socgen snow. -- stuck with snow. resorts twowindow hours north of new york city. we are joined by the president, chip seamans. welcome. tell us the conditions now there. >> the conditions are fabulous. we are pretty happy here. >> how many inches did you receive? >> a good 12-14 inches in the last 24 hours. >> what did you have as a base? >> our base was solid. it was mostly man-made snow of 60 inches. we have been making snow cents late november. we had a good solid base. this comes at a great time of
the year. >> this changes the length of time the resort will be open? >> it is early to judge that. it certainly helps our base. we have a long way to go and great skiing ahead. >> give us an idea the number of people that come to window ountain -- window mountain. >> we've seen a great trend over the holidays. snow makes a big difference to us. when it snows in the city, people think we have snow. we get more snow up here in the mountains. that helps us considerably. we have 90% of our mountain open. the last 10% is trails that need a lot of snow before we get there. we have certainly seen an increase in the last couple of days with the storm in town. >> compared to last your, how many people do you expect to host?
>> holiday this year is better. laster we had a storm at the last minute that help does. this year has been more consistent. with this kind of snow we expect saturday to be probably one of our biggest days of the year. >> how many people do you expect? >> we will see 6-8000 people here tomorrow. michael, forbe bloomberg tv. he was out on the slopes earlier today. he was sending in reports. he hit the slopes at the resort. gatorade.ome why not? what are some of the changes that you have made at the resort over the past year to entice customers? >> we made significant improvements to our snowmaking system. we replaced all of our air compressors.
get upgraded our -- we have upgraded our snow gens. we have added to our terrain. a significant improvement. we converted our parking lot to low level terrain to learn to snowboard. it has been a great success. we're trying to bring more people into the sport. we're are trying to keep those people in the sport after they come out. by providing better terrain for them we find they learned more quickly and are more likely to come back and visit again. >> we look for to seeing more. chip seamans. the automobile industry has had it's best year in six years. not so positive for all automakers. next, what that might tell us but the health of the u.s. economy in 2014. more next.
>> last year u.s. automobile industry had its best year since 2007. they hit a speed bump in december. the biggest automakers reporting sales fell short of estimates. what this means for the industry and the economy in 2014. jamie butters covers the industry in detroit. joining us in new york, john herrmann. , andve terry weisner commodities group at macquarrie. that is a big business card. first one. what do these cells reports that ,e got today, chrysler was up gm not so much. of whatll short
expectations were. expectations were 16.3 million units. -- weld have been whether are very close to what peak has been on the pose crisis. or and portly, the fundamental trends is the average age of a car is about love and .9 years -- is about 11.9 years. that is a decade high. the average age of the fleet is high. the replacement cycle is ongoing as a result of that. do not expect auto sales to fall back. historical any evidence that suggest that you can have a big falloff without a cataclysmic event? 15 point 7 million. some people say they will do more than 16 million. if they do that kind of number, is it likely that is going to
continue? like i think it is impressive. what we have for the entire fourth quarter, we had the best fourth quarter. we have the best quarter since 2007. it is very solid. spending, pattern of fits and starts of acceleration. it was similar to what we saw in 1983 -- 1994. nextwe look ahead over the two years, we see payrolls really outperforming market expectation. the unemployment rate is going to come down extremely fast over the next year. maybe to five percent in 24 months. we think this will catalyze auto sales. looking past this, we have these boomers. >> [indiscernible] boomer.
>> and they are going to be buying and spending for the next 15 years. >> come in on this. the automobile industry, these guys are tooling up for a long time in which they keep those factories coming. chrysler is going seven days a week. >> that is right. i am gen x. they got back to 16.6 last year. it is looking like 16 or better this year. the record was 17.5 million. to get there, the automakers have to give the cars away. nobody wants to see that. but we are seeing now is sales near the peak, back to normal 16 million. everybody's making a ton of money. there is all this handwringing about for-profit declining.
they are going to be making $2 billion a quarter. this is tremendous. i remember covering this for so many years where some money lost many by the billions. cold weather. maybe a bit of a hangover from black friday sales. industry fundamentals are strong. we are seeing more. , consumerpending confidence, manufacturing activity is starting to pick up. that feeds into autos. it adds up. >> doesn't change how you view the world? >> it is very bizarre. writing about stocks at all time highs. profitability, it is very strange. >> i have done research. sale at to produce and
least 14.5 million units to be routable. is around 11.2 million to messick units. we are well past that. every quarter they should be profitable going forward. they are turning 21. are at all-time highs. look at gm. stocks doing very well. is the stock market going can -- going to continue its run? >> i have a you -- i have an issue with the u.s. stock market. i'm wondering whether it is sustainable. a lot of people have said, how long can it stay where it has been. the market has continued to climb. i think we could see multiples here stay steady. 15.5 on multiples.
that is not going to be a great story for the stock market. we may see single-digit growth. >> what do you think about margins? making those automobiles is going to get profitable. >> whether it is commercial aircrafts or motor vehicles, we are basically in a good spot here. we have cash on balance sheets. the margins are in good shape. >> are you looking for a new car? >> i have a really high -- i have a really hot car. >> i am looking to buy a car. >> what are you going to decide? >> i am good. i bought a car last year. i am set free while. >> thank you for joining us. my thanks to john herrmann joining us from mitsubishi securities.
the obama administration says this week that more than 2 million people have medical coverage as of january 1. why doesn't this surge in enrollment fix some of the problems? >> part of the problem is it is not just about numbers that are enrolling. if the enrollment ends up being skewed towards people who were older and sicker that is going to aggravate the cost problem. this has been a disastrous rollout. not so much because the website doesn't work, because it is bad policy. we're going to see that play out. >> tell us what is going to happen in 2014. a lot of people think we are done with the introduction of the elements of the affordable care act. >> that is right. the obama administration would love it for 2013 to of been the worst of it. the reality is that if you look at the bad things on the horizon, the cost of care.
10 one of the things obamacare increaseddress was cost. a lot of people are not going to be will to see doctors they have been used to seeing. seniors on medicaid are going to see increasing cuts in the medicare advantage plan. they're going to see benefits cut arising in 2014. this is a disaster waiting to happen. >> how much of this is a result of reaction from the various constituents that make up the u.s. health-care system? challenge is when you have a reform package as big as obamacare. you are going to run into problems. one of the issues as they did not focus on the key question, which is cost. if you focus on cost first the rest falls into place. that is not what obamacare did.
>> having said that, what should people be paying attention to? >> i think a couple of things. one is the question of cost. where premiums going to go. they are headed out. the question is how far up are they going? how far up did they go? a second thing is the question of what is going to happen with elements of the law that are popular. -- are unpopular. going to continue to delay them or respond to political pressure? the third thing is the impact on the election cycle. we are in an election year. what is the impact going to be on the congressional races? the democrats are going to pay a price for some of the problems with the rollout. >> thank you for joining me. lonnie chen is a policy director of bit romney's -- admit ronnie's -- net romney's bid for the presidency. dow jones industrial average as
>> this is taking stock on bloomberg. i am pimm fox. i want to go to carol massar. >> the northeast region is digging itself out today after a blizzard snow system pass through causing road closures, flight delays, and shutdowns. the system is drawing in cold air into matures dropping into the single digits. packers andy indianapolis colts announced
they have sold out their upcoming week up -- we can playoff games. neither team will face a blackout for local tv broadcast. colts will host the kansas city chiefs as part of a slate of wildcard matchups. bmw,,e a late surge from mercedes been -- bmws two-year reign as the american luxury vehicle. cook a soufflé, if you're not. you can get a reservation of one of my guests'restaurants. operates fine dining operations. he joins me now to tommy that
the business of the restaurant empire. let's talk about what is going on in miami and what you're doing there. , [indiscernible] if you have been to the fountain blue, which you have, it is high energy. >> it has a remake recently. >> it did. it is the spot. i felt blessed when i was able to bring a restaurant down there. i'm not down on the beach. i wanted to do something that was high energy. lines of great executed food, great drinks, and goals until 3:00 in the morning with a lot of energy and cutting-edge food. >> give me some descriptions of
the kinds of items. sometimes you read these menus and you know you have no idea until it shows up on the play. fun with whimsical plays on dishes. creating dishes of my own. in miami, the clientele loves bold flavored food. spice, food that has a lot of flavor. we have taken an approach using the globe and pulling food from all over the globe. whether it is asia or south america. food that has a lot of flavor to it. laysnd -- funds -- fun plays on dishes. and little bit outside of the box. it has been great. the clientele is fun. >> does this global combination,
that is part of your background. you are from egypt. you went to washington. you are embodying this philosophy. fun lot of chefs are having being very global. people look at food and they look at products and they think, what is that going to bring to my dish? what is the difference? we kind of look at food in that way. then your clientele dictates. >> like an entertainment. can blur those lines. we are serving people until 3:00 in the morning full meals. >> tell us about your other places. what was your first you thought was a success? >> the first restaurants that i ever did myself was in san
francisco. it was called aqua. restaurant.ional it was in all fish restaurant. i have gone from all fish to doing a lot of stake. -- steak. we are going to do a second restaurant. it is going to be called [indiscernible] it will be an american steakhouse. >> i want to keep you out mentally in california. >> the new 49ers stadium is going to be a project. my big passion is football. years, me and a bunch of chefs have always done these elaborate tailgate parties. the owners ask me if i wanted to do a concept there.
i wanted to do something completely new and fresh. we're doing a pub and steakhouse. exciting is that it turns into a 1000 person tailgate artie -- tailgate party. things people have gotten used to, it is expensive. if you go to a game, is this going to be outrageous even more? or in the confines of people willing to spend. >> there are two phases. before the game, membership only. that is part of a package of tickets. after the game, then you come and it is more of a traditional sitdown dining experience for the pub. >> offering hot dogs? there will be.
lends well to signature dishes. it will cook a saddle of beef. there is ocean water poachers, you can cook 200 lobsters at the same time. are making everyone hungry. thank you. michael mina is the owner of the mina group. he is going to be the 49ers new stadium. from in english and literature background to the top of the beverage industry. we will speak with the my -- white and beverage -- he is next. ♪
>> for those of you spending the evening snowbound, how about a little wine with a book? here the biggest beverage trends. we have david lombardo. taking a journey to the top of the beverage industry. he joins me for a segment, right place right time. >> thank you. get to havesomebody your job? questions,e of those how did i end up here? i started off with a degree from florida industry -- florida university with english and philosophy. i was in health care for three years. i wanted to take a bit of a break.
, thoseber in college were fun jobs. i decided to try my hand at that game. my parents were happy. they spent money on my education. i wanted to continue down a path of being happy. i started bartending. i met up with my partner. >> you took a trip. >> i have been to different countries. the first place they went to was burgundy, in france. that is where i fell in love with wine. the history, the culture. it was an amazing trip. i can make a career out of this. the only thing you can do in the restaurant business would be a bartender or server or manager or cook. as the industry started to grow -- times i haveest spent have been with family
ranking one. -- drinking wine. >> what is your role now? what are the things you charged with. >> overseeing five restaurants. i oversee the beverage programs for those properties. education training, cost purchasing. you name it. >> things like inventory maintenance. making sure what you have is what people want. >> that is true. we invest in a system six years ago, and inventory control system we used to monitor our costs. it is inventory that can match up with your actual physical inventory. that is a big tool for us to
continue the trend. oliver whines -- top ofhave selected the the gamut. wanted to enjoy it. why did you bring along? >> i brought rats. more hearty stuff over here. a big lush. one you might have heard from before. to $55.e $45 this is the high-end for retail. something local that was given , it iss a present whisper vineyards. i have not tasted that yet.
i am excited. >> how often does that happen? i have something you have to try. you are never going to believe it. they offered to you and you think i can't imagine anyone would put in a bottle. ne onjudge every single wi individual merit. it may be the case, but not across the board. you have to drink it to know. >> you get to do that with a half bottle. >> i have some half bottles with me. all of her wines are served by the half bottle and full bottle. we have no wine by the glass. >> why? >> we saw the quality of wines served by the glass. they were not very high. >> they were at least pricing in some persons estimation. >> you never really knew how open.hose wines were
some restaurants were taking better care of them. you never knew. we decided to go with the half bottle and open it at the table. >> does this matter what temperature it is served that? >> it could either mask the flaws or mask the flavors. i like to do red wines at 55 degrees. >> what are you seeing in terms of demand from customers? >> when sideways came out we were having paul giamatti down in the restaurant. people would go up to him and asked about pinot noir. technology,ances in value driven wines.
for $25n the same thing or $30. >> people are looking at as less of a luxury item. in everyday beverage you can drink on its own. you're not going to spend $30 on a bottle of wine and have one every night. you can have a couple of classes at home. you can enjoy the bottle and have fun with it. >> let's say someone goes into your restaurant and they do not know this. they speak to the average -- beverage manager. how do they asked the right question to get what they would really like? telling them the price? >> i asked what do you normally drink. it gives a sense of what they might like.
away they like crisp wine. you take it from there. engage if you want to stick in the same direction or goal and another one. >> or here is my range? >> i will do that sometimes. it depends on the restaurant you are involved in. you can use a method of highlighting with your hand the wine list and making suggestions , having a lower price line. >> thank you. up next, from one glasses to eyeglasses. a simple pair of eyeglasses makes a difference to many people. one company is looking to give you a fresh frame. ♪
>> nearly $100 billion. the market for eyewear projected for 2015. what are the keys to breaking into this business? getting products onto the red carpet for the world to see during holiday and award seasons? i am joined by dmitry israel. he is going to be featured at award.ar's golden globes thank you for coming in. you have the tuxedo and everything. tell us what is going to happen when we watch? >> we are supplying some sunglasses for the golden globes that are going to be in the goodie bags. >> how did you get in there? >> we have caused a ruckus.
the positive feedback, they came to us to provide them with the sunglasses and eyewear. differentkes them than other kinds? >> there are a lot of places you can buy them. we are more fashion forward. it is a new york-based company. we provide fashion forward frames at high-quality and affordable rices. -- prices. >> $100. why do you see these frames become from various brand names cost $500? >> how the game works, a ghost from the manufacturer to wholesalers. down to the consumer. we're directed direct to the customer. we manufacture our own frames. the highest quality you can use.
the highest quality lenses. all the coatings are on their. we are direct to the customer. it is $109 flat. >> how would you get the information of the prescription? >> the customer could type in the prescription or they can give us the doctor info. we take care of it from there. --n wei du are we can get the prescriptions on the spot. >> what is the range? >> we have 30-40 different models. we have such a variety. we have bolted frames. conservative frames. everybody's needs. >> by going online, you are going to take business away. who is your competition? >> we have a lot. we stand up.
>> who decides what the frames are? >> larissa ginsburg, the founder. we take the design process. we do everything from beginning to end. everything passes to high-quality tests. everything is just as good as what you would pay hundreds of dollars for. >> where did you come up with the idea that this was something needed solving. >> people walked in and they cringed when they needed to buy new glasses. they are scared of the prices. knowing how much it costs to make, this problem needs to be solved. we need to figure out a way to make it cheaper and not have people fear about losing their glasses or breaking them. much.on't cost that >> why the $109 rise point? us, if we introduce new
frames, and gives us a price point of don't have to increase the price. a scenario where we can play around with metal frames. we don't have to go up and down with different prices. we want to keep it one simple price for everything. >> what if you don't necessarily stock eight, would you make that? a more popular item? >> we get request. we try and stay fashion forward. we transit what customers want and make what they want. foron't make custom frames individuals. >> since this is online, what is the best way to market what you are doing? >> if you wanted from the frames, we send you a friend trial. free shipping back and forth. >> thank you very much. it is 56 minutes past the hour. time for on the market. the dow moves higher by 28 points print s&p 500, the nasdaq