tv In the Loop With Betty Liu Bloomberg December 4, 2014 8:00am-10:01am EST
bell. we have a jampacked show for you today. speaks.t vladimir putin -- yergin will join me. he is the author of "the quest." our exclusive interview with michael dell ongoing private. private.ng no change from the european central bank. we expected no change. the ecb left all three main interest rates unchanged. they have been trying to figure out how to get the euro area economy going again. it has not done much about it today.
draghi hear from mario and a half hour. russian president vladimir putin vowed harsh measures against those who have sent the ruble's to record lows. the ruble is a free-floating currency now. the ruble could be used by financial speculation. i am asking the government to undertake rigid measures to see that speculators be blamed for the volatility of the currency. >> sounds like he has something in his throat there. -- putin said that he and europehe u.s. would have imposed sanctions
against russia anyway because they don't like him. protests broke out after the grand jury decided not to indict the officer whose chokehold led to eric garner's death. he was killed while being arrested for allegedly selling on -- untaxed cigarettes. >> i'm determined to get justice for my husband. he should not have been killed in that way. he should not have been killed in any way. here celebrating christmas and thanksgiving and everybody else with his children and his grandchildren. >> the federal government has launched a civil rights investigation and the police officer may still be disciplined by the new york police department. his killing of that man was videotaped. honda is not waiting for the maker of those defective airbags to issue a nationwide recall. the automaker is doing it on its own. its recall to cover the entire nation.
takata has rejected u.s. regulator demands for the nationwide recall. they don't think cars move around that much. missedladelphia 76ers out on tying an nba record and the could not be happier. they beat minnesota 85-77. that leaves the 2009 new jersey nets with the worst start with the season. let's get back to the top story. mario draghi's indecision? keeping rates on hold. investors wait stimulus hints. jonathan ferro is standing by in london. mario draghi says he will do anything. will he do anything? >> that is the big question. you look at the economic backdrop. there is no economic growth.
politicians look like they are asleep. look like they are asleep. today isuestion whether they will pull the trigger on quantitative easing. and is the subject that q they will be dominated by when the press conference starts. he has hadhe issues its even if he wants to go, the germans may hold him back. how do you expect the germans to react? hints.ave had some those hints are quite clear. those hints are quite clear.
there is a real conversation about the effect of net -- iveness. it just will not be the same as what you saw in the u.s. problems are internal and specific to individual nations. pushing the euro down, quantitative easing might achieve that area but a lower euro is not going to solve all the problems. >> has ruble dollar sold russia prosper problems? what do you expect to hear it 8:30? >> it is the forecast. the forecast for growth and the forecast for inflation. if the ecb has to downgrade,
that would be a big deal. are not going to hit the inflation target, you are saying, i'm not very good at my job. they will have to follow it up with something. >> thanks very much. you have to get back over here for a stiff tight. pint. stiff >> john boehner faces a new rebellion in the ranks. spurred on by ted cruz. they say the speaker' spots is response -- speaker's is too timid to the president executive action. is it another test for boehner? it is in fact a new test for the speaker of the house. the prospects for real embarrassment remains. insist thaticans
his response will likely succeed. he may need a helping hand from nancy pelosi. vote on a house republican phil blocking the president move to delay the ofortation of millions illegal immigrants. it is a show vote area did next week, he will hold another vote on a massive spending bill that will fund 12 federal agencies for a year of time. because it overseas immigration, the department of homeland security will only be funded until 2015. that will give them another chance to take a whack at the immigration action in 2015. it is a reasonable solution given their limited options in dealing with the president's limited action, but not tough enough to a growing group of house meserve dave's -- conservatives. >> congress should stand up and
use the power of the purse to say, we will fund the government, we will fund the operation of the federal government, but we will not allocate taxpayer dollars to lawless and illegal amnesty. how many house republicans's side with ted cruz and vote against the boehner plan next week and risk a government shutdown? he can suffer some defection. if it is too many, john boehner has real trouble. >> does nancy pelosi rushed to his aid? unusual situation, but he could be looking to nancy pelosi to bail him out. boehner faces problems if they vote against the spending bill. enough democrats would vote for the spending plan to avoid a shutdown and support boehner in the end and get him off the hook.
that is what they are counting on at this point. nancy pelosi has a news conference and so does john boehner this morning. >> do you feel like the tide has turned a little bit and john boehner's favor in washington? cruz and feel like ted these ultraconservative agitators are causing too many problems? is the sense that a lot of people are feeling in washington. position has been strengthened by what happened in washington. and action by ted cruz house conservatives could make them look a lot more like outliers and strengthen john boehner if he can survive this first test. >> peter cook, thanks very much for that. now, it is time for movers and shakers. there you go.
, which is not moving at this exact minute, they hope to launch the oh ryan spacecraft -- before 9:44.aft i have been feverishly following this on twitter. the launches the times today. i vote straight into a launched danger zone and then gusts of wind. a boat website and. launch straight into the danger zone. then delayed by gusts of wind. there is speculation that saudi arabia may set one off, and opec price war. vladimir putin delivers his state of the nation address.
>> we have a lot to cover in geopolitics. last week'sg put it opec meeting, saudi arabia will cut oil prices to asia and the u.s. cutting in january. starting in january. icadimir putin avoided the top of falling oil prices as his company had stored a recession. daniel yergin joins me now. he just did a great hour with charlie rose. thanks a much for coming back in here. let me ask you first of all about saudi aabout saudi arabia.
as fascinated as i am about saudi arabia -- vladimir putin, saudi arabia has been a more dramatic story. it seems like they are pushing 201980's style price war. is that the case? >> it is a big change from two months ago. now there is talk from the saudi's and others of $60 per barrel. they have said, we will not manage the price. we are going to let the market determine it. the market will eventually stabilize. discovering how low the price has to go to get to stabilization. $66.96 per barrel. i assume it is not terribly profitable for the saudi's at this level. i know the russians need more than $100 per barrel all in.
need $130 iranians per barrel. how much to the saudi's need? >> it is basically a new game in world oil. the saudi's have $800 billion of foreign exchange reserves. they can wait this out. they don't want to subsidize iran. the don't want to subsidize venezuela. they don't want to subsidize a rack. -- iraq. they will it market sources out. >> they really don't want to subsidize iran. >> no, they don't. i think the saudi's and the gulf countries are very focused on what is happening in their neighborhood. they seek iran and the nuclear negotiation, they're worried about iranian oil coming in. they say iraq as an iranian satellite. they are feeling surrounded.
they don't want to give up to market share to those guys. >> you mentioned shale. shale drillers need oil to be around $70, $75 on average. >> we did an analysis, the price test, on shale oil. in 2015, 80 percent of it would be profitable between $50 and $70 because there have been such advances in drilling. we are below $70 now. >> and getting closer to $50. >> we have five numbers starting to appear. >> we are almost at a five handle. driller tor a shale go in lease land, put on a pad, put in a pond, get ready to put rigs in the ground, they probably need to see enough to make them money in the future. do you think they still see that in the future? down.rybody is sitting
what can we postpone? what can we cut? leasing land, the early stages, that is where people will pull in their horns. they will concentrate on where they are more productive. there are a lot of commitments already made. it is by the middle of the year that we start to see a tapering in this remarkable growth in u.s. shale oil production. >> i want to clarify the saudi position. i'm getting headlines from the oil minister and he is saying, we don't really have a price target. we want to let the market decide it. that has been their philosophy. they can do this because they have $800 billion in reserves. didn't vladimir putin stock away a few hundred billion dollars? >> he came to power at the end of the 1990's with this message of never again will russia policy economy be pulled down by collapsing oil prices.
he had the finance minister of the decade build up and they have about $380 billion of foreign exchange reserves, maybe $200 billion of that is accessible. between everything else that is happening, that could go down fast. ,hey do have that protection which they did not have last time they were in this situation. >> let me bring up another quote. can we play that? >> we have to implement those decisions that have already been burden ofessening the tax payments for small enterprises that are going to register for the first time. they will have a two-year tax break. zero, thereart from
will be a total amnesty of the capital brought back to russia from abroad. >> it sounds strayed to have the queen of england overdubbing vladimir putin. [laughter] that his taxng policies are seemingly more liberal than the american tax policies. >> well, yes. they don't want to use the word liberalization. i don't know what the translation was, but the russians will be talking about emcithey are in recession. hit, whether he denies it or not. he has to try to loosen up the economy and get some action going. >> sure, but his approval rating , we see numbers like 80%. about theyou feel
pollsterovernment agency? i think they are still pretty high, but his popularity has been based upon this bargain. i will run this country and i will give you higher living standards. that will be tested. he has given them a grandiose vision. oneian media gives only message, russia's surrounded by enemies who want to dismember it. >> daniel yergin will stay with us on "in the loop." so much fascinating drama to talk to you about. i'm so glad we could get your time. sony has an idea about who is behind the devastating hack attack. linked to the release of a new sony movie. that all itsis
>> if you are following nasa's twitter feed, you will see that , a fuel valveold did not close. standing by for more information. this is the fourth delay of the morning. it is currently unmanned. eventually, this capsule will carry people to mars, where you live, if we're lucky to 30's. -- 2030 plus. here is a look at our top headlines. predicts that
europe's economy would for the next 10 years. he expects its short-term growth projections. the u.s. economy will be a bright spot, he predicts. best buy has sold its five-star unit in china. the terms of the deal were not closed. -- disclosed. cuts are on the way. -- drugmakerob will cut 900 jobs in north carolina. u.s. sales are flagging because of increased competition. is 26 minutes after the hour. bloomberg television is on the
markets. take a look at futures. you can call it unchanged on the s and p. 0.04%. jones is up there he little change on the nasdaq. we did have a gain yesterday and again before that. if we rally, it will be three in a row. now, i want to go over to my colleague -- no. are we going to? i'm sorry. we are going to talk about the ecb. let's talk about mario draghi. just about two more minutes until his press conference. what do you expect them to say? >> we will know very shortly. noseems that there will be big policy moves until the first quarter of next year. he is dealing with an economy that is in poor shape, in recession, the on the edge of recession, and inflation way
below its target. and inflation rate that is double that of the united states. >> which is still almost nothing. 1.5% year-over-year. >> that they are at an 11.5% employment rate -- unemployment rate. said europe will stagnate for the next 10 years. it is a strong statement. it is telling. mario draghi can only do so much. it is the national governments who need reform, who need to stimulate their own economies. going,pe is going to get you have to take the burdens off that economy. we have gone through some difficult times, but we are a much more flexible, adaptive economy. >> on the one hand, mario draghi
is willing to do anything. on the other hand, angela merkel and the bundesbank will not let him do anything at all. are at odds. >> the fear of inflation is so deeply embedded in this sense of the immorality of debt. it is such a sharp contrast to the united states. right.imon is absolutely the strongest economy in the world is the u.s. if there is going to be a locomotive of growth, it is going to be the united states. >> we have to get ready for this press conference to start. daniel yergin, author of "the quest." i assume you are a guest in very high demand because of all of this drama that demands your expertise. thank you so much for spending a few minutes with us. we have breaking news on initial jobless claims just coming out and about 20 seconds.
for that, we are going to scarlet fu. we are going to get a look at those numbers. what are we expecting? ofwe will have a read 295,000 people filing for unemployment claims. from 315,000 down from the previous month. we have just gotten them. -- slightly higher than what economists were looking for, but pretty much in line. this sets it's up -- sets us up for the big jobs report tomorrow. we are looking for an increase of 230,000 jobs for the month of november. what kind of at impact this is having a financial markets, not much move in the s&p 500. or dow futures. signalsthe number that
that the labor market is improving steadily. in a way that indicates that firings are coming down and we are still looking to get a pop in wage growth. that is the number everyone will fixate on. average hourly earnings are expected to increase by 0.2%. >> thanks very much. we got exactly what was expected with initial jobless claims. tomorrow, the big number comes out. the granddaddy of all economic data points. we are getting the monthly payrolls. we are monitoring this ecb press conference. exactly asi give us expected this morning, when he did not trained -- change interest rates at the ecb. we are going to watch this news
conference very closely to see if there are any signals to see of the bank may engage in further quantitative easing. we will bring you headlines as it comes and you can watch that live on our event channel at bloomberg.com/tv. you can also watch the now failed nasa launch. up, an exclusive interview with michael dell. more than one year after taking his company private, he tells us what other big companies have come to him for advice about doing the same. the good news for anyone looking to buy an ultra luxury apartment in new york city. "iconic"e units in the 157 tower are still available. could lack of demand mean a drop in prices? a dozen million dollars, you may be getting lucky. ♪
>> welcome back. wasngle apartment in one57 sold by the developer last quarter. just one. leaving 24 units still unsold out of the 94 homes. is it possible that demand for apartments priced at tens of thousands of dollars per square foot is pushing its limit? a scary thought for new york developers with numerous other condominiums in the planning. foreman.e now is brett welcome to the program. thanks for joining us. i assume that the rich still want to buy ultra luxury apartments. what is with the slowdown? >> the rich always do want to
buy luxury apartments, but they don't have to buy luxury apartments. we talk about the slowdown. the jury is still out. say that the dominoes have started falling and there is problems and everybody should be jumping ship. there has been an adjustment, there has been a pause. that is the natural process of the market. we are told that from the 80th floor, the apartments are all spoken for. >> the best ones are already gone. >> the best of the full floor penthouses are accounted for. >> what is so special about this building? read that it is iconic. what does that mean? how many iconic buildings are there in new york? >> i think it is yet to be
determined if it is iconic. that word is thrown around loosely in real estate. >> empire state building is iconic. the 20 hours. >> i think you have to earn your stripes to be iconic. >> do the rich -- with a rather dakota?ve in the or has this one got so much cachet that it trumps john lennon's old place? >> often they are different buyers. condo buyers are focused on condominiums, of course. axury condominiums equate to shiny glass tower, which is what we are talking about.
there are options today. do, youit you need to need to understand your segment of the market you are shopping in and that involves a good broker and a buyer who is going to take the time to understand what is out there. going to guess a lot of the segment of the some are it is not midwestern americans, but super wealthy chinese and russian oligarchs. >> there is a huge american presence investing money in the market as well. i don't want to count out the american buyer or the midwest buyer. by no means is the foreign buyer dominant at this point. my last two largest deals are all americans at this point. >> that is interesting. we hear only that it is international money coming in here and blowing prices up. >> that is taking the headlines, but a lot of people are
redeploying money. there is a lot of american money being pumped into the new york market as well. >> thanks a much for joining us. are monitoring the press conference of ecb president mario draghi taking place right now in downtown frankfurt. olivia sterns is standing by. >> he is still speaking and sounding quite dovish. he said the ecb will reassess its current stimulus next quarter. central bank officials are unanimous on their willingness to act with more stimulus if it is needed. -- hedraghi has said it will do whatever it takes, but he has yet to say exactly what that is. we are looking for any indication on what will be next from the european central bank. full fede heading to style quantitative easing?
you could also fight corporate fonts for that from the european or fromnt bank -- bonds the european investment bank? we're trying to get at what a broader investment package will look like? debt in the first quarter of 4015. -- save a look to i sovereign debt in the first quarter of 2015. mario draghi has indicated that he is concerned about the falling brent prices. european inflation is still at 0.7%. there is still the issue of will he say anything about resistance to further stimulus measures, in particular from the likes of germany? >> thanks very much. we continue to see red
headlines across the bloomberg terminal. you can watch the press conference on our live event channel on bloomberg.com/tv. there is a wealth of exciting stuff to watch, including possibly the orion capsule launch. what do michael jordan, ronald mcdonald, and steve jobs all have in common? all three have changed the game. "bloombergarring in businessweek" 85th anniversary issue. ♪
the ecb has also cut its economic growth forecast for 2004 through 2016. pressure on the european central bank to do something to expand stimulus measures. it is not just a matter of germany doing more. there are a lot of questions about whether further bond buying can do a lot more. let's get you back to matt. >> thanks very much. covered theek" has business world like no one else. to commemorate its 85th anniversary, the magazine is celebrating its most innovative ideas and business over the last 85 years. with five separate covers. b -- deputyght editor is here to tell us about the great disruptors. the magazine has been very famous for its covers lately. walk me through a few of them.
do we have them in order as far as importance? >> we did decide that we were going to make people mad and rank these 85 ideas as the most disruptive ideas of the last 85 years. ranked. i don't know the covers are going to be introduced in order. >> let's go to the first one. contraception gives women the reproductive freedom, but it also gave women economic freedom. when studies have been done about this, the pill is the single biggest factor that allows women to delay marriage, delay having children, pursue education and careers, and move into senior positions in the workforce. that is a major story of the last half-century. you have all of the other 85
things in the list around the margins. air jordan will be somewhere on the list. michael jordan one of the most important athletes ever. his shoe. is it because of issues? >> i think the issue is part of the building of the jordan brand. it is indispensable to that. it is really interesting. 1985, nike is not a huge company. it is mostly known for running shoes and running apparel. with the air jordan, it is this phenomenon that transforms the entire footwear industry and makes nike the dominant global brand in sports. 30 years after it was introduced , michael jordan has not played in the nba and more than a decade and it is still the best selling basketball shoe. >> everybody around the world still knows him. i just bought a para jordans three weeks ago. it makes me happy to look at the pair of the original jordans.
it does not make me so happy to look at a picture of an ak-47. [laughter] we chose disruptive ideas, but without endorsement. ak-47, unquestionably, a huge force in the world over the last 85 years. it is the thing that brings asymmetrical warfare to the forefront. the idea of small groups of militants and guerrillas facing off against national armies. there are 100 million ak-47s in the world. that is one for every 60 people. it is the major weapon of four in the last century. >> is that a pc or a mac? >> that is the apple 2. the first computer to sell one million. >> that is a wolfenstein. castle wolfenstein was playable on that. >> we will not share number one.
>> you can go online. if you made holiday travel plans, this innovation, without it, your travel plans are a lot more complicated. >> thank you so much for joining us. i prefer the paper magazine. magazine. pick up the you can bring it along and travel with it. on newsstands tomorrow. don't forget to watch the "grace -- great disruptors" special. we look at seven innovators who have changed the world. up, addicted to your morning coffee but hate waiting in long lines? how starbucks is making your life easier. ♪
its way,rbucks has lines may be getting a lot shorter. they are rolling out an order ahead feature. the program for now is just rolling out in portland only. if it succeeds, does that mean starbucks will be less crowded or more crowded? >> it is a question of where the crowds will be. mostlyow, the crowds are at the point-of-sale. they wait in line to pay and order and that is where the congestion is. they want to move the flow to where you pick up your beverages. if this app works, starbucks is counting on more volume. >> we believe it is going to drive transactions to our store. it is going to take the order and payment out of the line, put it into the hands of the customers, which is going to improve capacity results.
>> when he talks about throughput, he is talking about the flow through the store. how quickly do you get your beverage. the question is, if volume does go up at starbucks, if you are going to see a lot of people coming in just to the counter to pick up their beverages and their food, is starbucks prepared for that increase in traffic? i asked how much do they expect to see a tick up in traffic? he would not share numbers exactly. i asked if he would be staffing vista numbers -- staffing stores with more people? he would not give a specific on that either. >> how does this exactly work with this app? i would be worried that i would order the coffee and it is cold on the counter three minutes later. >> that is something they will be working out with the rollout in portland. the apple already exists for
loyalty customers. 16% of starbucks transactions are done through this app already. they have a mobile payments platform. now they are adding an order that in portland. you put in your order on the app and then it tells you how long the wait times will be at the various starbucks in your area. you can choose that which starbucks you are going to pick .p your items you go into that starbucks and it should be at the pickup counter. if you are delayed, they have to make you another drink. that is the bottom line. >> and which i think that thing and who has five minutes? julie hyman in san francisco. it is time for on the markets. take a look at futures. not really moving very much at all today.
>> we are 30 minutes away from the opening bell. futures indicate very little right now. 3/10 of 1%.down futures have moved down rapidly in the last few minutes. new figures show that initial jobless claims for jobless benefits came in slightly higher than expected. very little change their. ecb president mario draghi says he wants to get inflation growing as fast as it can.
he is speaking live in frankfurt. it looks like there is a lot of work to do over there. draghi thinksario prices will rise no more than 1.4%. russia possible at them your russia's vladimir putin is taking aim at europe and the u.s.. goal is to hurt the russian economy. he called on russians to end their dependence on imports and that businesses need more freedom from bureaucracy. he's not wrong about that. for the second time in a little more than a week, a controversial grand jury decision involving a black man
killed by a white police officer. here in new york, protests broke out after a grand jury decided not to indict the officer who choked eric garner to death. garner was choked while being arrested for allegedly selling contact cigarettes -- unpacked cigarettes. i'm determined to get justice form i husband because he should not have been killed in that way. he should have not been killed in any way. he should be celebrating christmas and thanksgiving and everything else with his christmas -- children and grandchildren. >> the federal government has a civil rights investigation. in pro basketball, all bad things have to come to an end. brokeiladelphia 76ers their 17 game losing streak by beating minnesota last night. if they had lost, they would have tied the 2009 new jersey
nets for the worst start to a season. we are 30 minutes from the start of trading. let's count you down with the top 10 headlines. scarlet fu is taking stock. i will kick it off with number 10. bitcoin. the u.s. government will offer 50,000 bitcoins as it disposes of the virtual currency is seized after closing down so roadd marketplace -- silk marketplace. my friend bought those coins at a previous auction. he has like 30,000 coins. can you explain exactly what is going to be auctioned off and how they might or might not have value to whoever is looking to acquire them?
in this particular case. >> they are auctioning off 50,000 bitcoins, the remainder that they took from silk road. >> people would be but to buy them and use them? >> that's right. tim bought the first batch they auctioned off and he is going to use it for one of his bitcoin ventures he is starting up. wille winkle voss twins not be participating in this. >> omg. i went to the winkle voss department overlooking the hollywood hills. up next is best buy. it is selling its struggling chinese business chain. realll sell it to chinese estate firm to focus even more on its u.s. businesses and those in canada and mexico. >> i don't know a whole lot about best buy china operations.
i asked our production assistant from china and she has never heard of five star. >> what took them so long to sell this? been in at buy turnaround mode for 18 months? you think with the new chief executive, they have a new strategy and a variety of show and thefeatures ubiquitous guarantees and the warranty programs, why wouldn't they shed this earlier? >> maybe they didn't want to give up so easily. >> they wanted to get a little more. [laughter] >> position of weakness. >> maybe they should have listened to confucius. number eight. confucius say, sell best buy now. the hack attack continues to unfold and sony.
identified has been as the source of a devastating computer attack. deliberating whether to announce the findings publicly. but they were leaked. we are giving them so much more publicity for this movie. >> the north koreans just want to watch "fury." >> this is another way of getting that done. >> him john kuhn, is he a big hollywood fan? or was it his dad? >> he is a 31-year-old guy who has diabetes and gout. >> he is unhappy about this new interview. -- this new movie called "the interview." felix sony may want us to think kim jong-un did this attack because the movie is about wanting to kill kim jong-un. >> is it a publicity stunt? doi don't think so, but how
you find out? "grand theft auto 5" was pulled because of atores theme of violence against women. it is a fairly violent game. much of grandhat theft auto because of that. $70 andit was x $60 or they get you to buy other things in the game. you can pay extra to get things in the game. >> just pulling the item off of australian target store shelves comes at a moment. you have this curtain and investigation for the gang rape cases at uva. cosby accusers coming out of the woodwork. it all comes in a bigger context.
>> i would also think that it just spurs sales further. 15-year-old kids who are playing this game don't care whether it is on target shelves. i downloaded it on my xbox. it is not 1994. number six, nasa thought it was going out of this world. the mission was halted for times times. timesur i learned about this mission listening to "taking stock." t thank you. you.you. -- thank it is a one-way trip.
of the results. the stock is still seeing substantial growth this year, gaining about 48%. the full year chart is amazing. the ceo -- cfo joins me with exclusive -- exclusively. thank you for coming in from cincinnati. >> thanks for having me. >> why is kroger racing its forecast? obviously, off the strength of our third-quarter where our sales were 5.6% and we beat the wall street estimate by about eight cents. we have raised our annual guidance by the amount of our whenin the third quarter you exclude the tax benefit we had. we will maintain that and we expected fourth-quarter to be about where we had been expecting at all your. >> at the same time that you are hiring, i think last time betty
spoke to you, you are hiring 20,000 employees. how is that going? >> we continue to have a lot of job fairs and we are doing a great job hiring people. holidaye not seasonal openings. these are permanent jobs where we need these people not just for the holidays. we have about 375,000 associates today. by this time next year, we probably would need about 400,000 associates to be able to run the business where we would expect it to be this time next year. it continues to be an opportunity. we are creating a lot of great jobs for the economy. >> you have to hire 25,000 people by this time next year. 300 75,000 has not been updated for most recent hirings, that is armed static number. -- our static number. another 40 or 50 stores and we will be closer to
that 400,000 mark next year. >> how many of those people are going to measure the calories of the food, the prepared food you are measuring and writing them on a sign? you have to do that right? >> the fda just came out with revised rules. the items in a grocery store has full nutritional labeling. we operate a differently than some of the quick serve restaurants. we are going through the rules today. it is kind of difficult to understand exactly what those rules will require us to do or what the exact cost will be. there will be new tasks we have to do inside the stores, as well as incremental costs from that rule. >> what kind of costs are you expecting? ballpark figure? will there be an effect on revenue? -- shyme people slice
away from a slice of pizza? modified rules just having had come out, it is difficult to understand exactly what the cost is. we had estimated $20 million on the prior rules. reaction will be to the labeling is difficult to understand. one of the strongest departments for us has been natural and organic foods, which continues to have double-digit sales growth inside those departments and the success of our own simple truth brand. strongntinues to have growth and will be a billion-dollar brand this year in and of itself. >> thanks a much for joining us. putinoming up, vladimir blames speculators for the record fall in the ruble and he warns that they will be punished. a little more than a year after
>> welcome back. let's get you back to the most important stories before the bell. scarlet fu and tim fox joining me. number four, vladimir putin pledges harsh punishment against to those who have sent the ruble to record lows. typically, it has been western governments who have been so angry about speculators. germany. >> malaysia. >> now it is russia. >> he has also said he will
offer amnesty to any of the russian oligarchs who have millions of dollars overseas. he will offer amnesty if they bring the money back to russia. >> he has a bone to pick either way. i read a profile in "the new that angelasaid merkel was deathly afraid of dogs and vladimir putin called dogs just to see her quake in fear. he is afraid have his own weakness. >> he also kept her waiting at that ministers meeting. >> and not polite or chivalrous. >> remember the case of when he was at the asian meeting -- >> and deep at the jacket over the chinese first lady. >> well that was nice of him. saudi arabia may set off an oil
price war. they try to defend market share against the u.s. is it against the u.s. or are they just trying to punish iran? >> probably a little bit of both. i doubt it is one goal over another. >> i was looking at the actual figures. i was looking at how much the u.s. imports from saudi arabia. we get most of our oil from canada. i was looking at the statistics. they are the number two supplier in terms of u.s. imports, but it is 17% of the import and it has been declining year after year. it is down 23%. we have been importing more oil from places like columbia, kuwait, ecuador, canada. >> we are making more of our own. >> so proud. it gives me a sense of pride. >> red, white, and blue right
now. windfall for new york. the state is enjoying a budget surplus courtesy of foreign banks who paid more than 5 billion dollars in settlements for helping americans evade taxes this year. >> plenty of americans are giving up u.s. passports because they have to pay so much in federal taxes. >> it is not that many by the way. >> it was 2999 in 2013. this year is on track to top that number. scarlet is using that to highlight something. just to point out that there are people who are more interested in how much money they don't pay the u.s. government. >> there are people who prefer money to u.s. citizenship and that does not surprise me. maybe some liberalization will be in order here.
maybe we could get his liberal is russia. >> do i do this to you by coming on here? [laughter] >> don't you think? we can liberalize our economy as much as the communist country of russia? bell, wer the opening are going to get a check on where futures have settled. we saw futures move down significantly. that was earlier in the day. they are still in the red. our top story and the opening bell are coming up next. ♪
>> let's get you back to the most important stories you need to know before the opening bell. join me.u and tim fox the number one story is the european bank. cutting its economic growth and euro area inflation forecast for 2014 through 2016. mario draghi speaking at a press conference as policymakers will reassess stimulus next quarter. markets hope that means more, but are not very optimistic. kicking the mean can down the road? >> did he also wish everyone a
happy holidays? >> olivia sterns is following the live press conference. you would have to ask her. jamie dimon said they're in for another 10 years of pain. it is interesting that is going to be a slow drip. turning into an old haggard grandmother that is not fertile and has nothing to offer. said?t is what the pope >> this was a couple of days ago. he is down in the vatican, but maybe mario draghi should seek advice from the pope. to trade thist theing, i want to bring in ceo of global x funds.
bruno, welcome to the program. >> thanks for having me. >> let me ask you, you have an etf that focuses on regions, what do you think about jamie dimon saying 10 more years for the european economy? very difficulta market and when you see the economic policies coming out of europe, in terms of capping spending on the government side, it has been very tough and it will be very tough for many years. i don't know if it is going to be a decade, but it certainly seems to be in a very difficult position. >> can we at least help the mario draghi spikes the punch bowl and little bit? i think he will probably do something. the market was expecting specifics. he has not really announced any concrete steps. >> he needs to get the germans on board first. surely he has a different stated mandate.
>> i want to osu about the job in oil prices. -- ask you about the drop in oil prices. >> it has been interesting. the prices and flows coming out. it is reverting a little bit. we are starting to see people that are bottom fishing, that see opportunities in commodity prices. producing a lot of commodities is very close to market prices right now. that is something that you see very rarely historically. for many observers and analysts, it looks like an attractive entry point. the oil services are probably
the more challenging ones. we have not seen flows going back into those companies. really the main oil producers where we are starting to see flows going in to the large cap oil-producing companies. >> i want to ask you about sector rotation etf. how does it work? because itteresting is a momentum focused strategy. it is interesting because it is reflective of some of the flows we are seeing. we see a rotation away from the more conservative defensive factors into some more aggressive sectors. that is an interesting rotation >> that would be good for anyone who is bullish right now. discretionary, we are
going to get a lot of retail sales reports later on this afternoon. >> it is meant to change with the dynamics of the market. if you look at a three months ago, it was pretty defensive. it has become a lot more aggressive. it can become very defensive. it can be 100% in short-term transfers if it sees the market and the momentum that is very negative for stocks. >> think is so much for joining us. scarlet, it has been a pleasure. tim, >> always a pleasure. >> "taking stock" is my favorite show on bloomberg tv. so many interesting guests. wu-tang clan is one that i will never forget. you had superman. >> i had dean cain on yesterday. he played superman in
"superman." for the new movie out ion television network that debuts this sunday at nine a clock p.m. eastern. original of the five christmas themed holiday themed movies that are going to be on the ion tv network. he played football for princeton. he was a free agent for the buffalo bills. he was a defensive lineman and he hurt his knee and practice before the season even started. his career was over. >> how did he make the turn into acting? family.d acting and his he decided he wanted to be a screenwriter. he ended up landing a role. >> princeton football players off to do really well. >> this one became superman. >> looking forward to "taking stock." we have an all-star lineup for tomorrow's labor report. perez, el-erian, tom
business itself has actually rebounded. michael dell said down with erik schatzker in an exclusive interview. eric began by asking him what the response has been by other ceos thinking about going private. that is for them to decide. quite a few of them contact me and asked me about how we went through the process and what it was like and that sort of thing. it certainly was not an easy thing to go through the process. it has went through it, been a lot easier managing the business as a private entity. we can take on risk. we can accept risks and invest more aggressively. i think you could see some more based on the discussions i have been having with some other colleagues. >> you have intrigued me. how many companies -- i'm curious if you could put a
little detail on that. how many companies have you talked to about doing the transaction and are we talking about companies of the size of dell? $27 billion buyout or larger? dell's size range, some a little larger, some a lot smaller than dell. would say more than 10. i can't tell you who they are. >> do you blame activism? no. icahn ined with carl the course of taking dell private. that has given you a taste of activism. do you blame activism for what is happening to some of your competitors? ibm underng into tremendous pressure and doing the wrong things with its capital. >> i think there are two lenses that one should apply to these various moves that are being made.
is this something that is actually good for the customers of the enterprise? often cases, the answer is no. the second lens question would be, if you owned all of the business, would you actually do this? activism is a bull market strategy. there is a risk that the , it certainlyre benefits that short period of time, but what happens later on. that is a risk. as a long-term owner-operator of a business, i'm thinking about this over a lifetime. >> what do you say to the growing number of public company directors who are popping up and occasionally even members of management -- there were far
fewer of those -- you say that activism is a healthy influence on corporate america, it is bringing discipline to management. is that disingenuous? >> i'm not saying it is all bad. i'm sure that have been plenty of good things that have happened as a result of it. but anything taken to an extreme can be a bad thing. i think there are some bad examples in addition to some good ones. >> erik schatzker joins me now. i have to first ask, have you ever played euchre. >> i love euchre, i love spades. do you know a sandbagging is? that is what michael dell was doing to get this company private and that is what carl icahn called him on the. -- called him on. >> i mentioned carl icahn.
michael dell and silver lake ended up paying more after taking a hard look at dell. probably, yes. was still wrong to take the company private seeing a stock that he believed was undervalued? in retrospect, because public shareholders did not accord they'll the value that he believed it had. what has happened in the 13 months as alcatel private, if you use public market cost, say hp for example, you conclude that the value of his equity has gone up by about 100%. it is a levered deal. there is about five times leverage in there, maybe less. on a public market basis, it has gone up 15-20%. put the terms of leverage on it and he has doubled his equity. >> maybe the shareholders should have valued it at more. >> the case that he makes is that being a public company brings with it an awful lot of
distractions for a ceo and a management team that is trying to "grow the business." that is what he talks about. being private has saved 20% of his time. >> he can also worry about running the business more. lostys that this is not some of the companies are larger than dell. not so easy to pull off if you don't have as much equity as dell did to start off with. he was able to convert shares. not every company is structured
that way, but it shows you that the cost of being a public ways on the minds of american ceos right now. >> there are a lot of examples we can think of. i look forward to seeing more of your interview on "market makers." coming up at 10:00. >> 11:00, as a matter of fact. more michael dell at 11:00. we have an amazing show starting at 10:00. >> here is a look at the top tech stories. barnes and buying back microsoft's stake. barnes & noble will pay microsoft. the bookstore chain plans a spin unit.om its nook a legal victory in hong kong for entrepreneur kim dotcom. the u.s. shut down his website
and he has been fighting from new zealand for more than two years. he is gigantic. it is being called the google tax. the british government well on google that will mostly affect u.s. based companies in the tech sector like google. catch all the latest and tech and media every week at 1:00 p.m., 6:00 p.m., and 11:00 p.m. eastern time on "bloomberg west." on the eve of another jobs friday, what to look for in the monthly report. that is coming up next. ♪
welcome to the program. thanks for joining us. is the consensus. what do you think about that? >> that is smack dab in line with the year to date average. forecasters are predicting more of the same. it has been a great year for the jobs market. i think forecasters do not have enough holiday cheer as they are looking at the broader economy because we had this big rise in gdp in the second quarter and they were very quick to dismiss it. third quarter data came out and that was solid and they said, it is still going to moderate. it was revised higher. anticipate slow growth. this because of we continue to get the same sort of solid gains in q4 as we have seen in the first part of the those forecasts are
too conservative and we are going to see a stronger gdp print and we are already getting clues of that with recent data surprises. motor vehicle sales were stronger. wondering if economists aren't in for a little bit of a positive holiday surprise. if we see a bigger print tomorrow -- >> if we see a bigger print tomorrow, will we get revised lines? >> maybe not right off of the jobs number, but off of the other data that goes along with the jobs number. when we get more evidence on retail sales strengthening, cheaper gas prices, stronger jobs growth, industrial production, factory output, etc., etc., you will see a bias toward a shift in expectations. >> maybe the holiday shopping season will not be as glum as we thought. >> exactly. we make it a little christmas just-in-time. the jobs number should look decent, if not great.
other parts of the report are not going to sway those folks at the fed like janet yellen who are looking at a broader labor of layer -- layer of labor indicators. we look at all of these alternative metrics. the labor force participation, the wage gains. those metrics are unlikely to move in the direction that is going to lead janet yellen to start changing her view about when she should start raising rates next year. forward toking seeing you. it is the jobs number tomorrow. it is the granddaddy of all economic statistics. betty has an amazing panel. really titans of the economy. mohamed el-erian, tom perez, alan krueger, mike tuner -- turner.
it is 56 past the hour. bloomberg television's "on the markets." we are 30 minutes into the start of the trading day. stocks are backing off after yesterday setting another record high. the nasdaq has little change. it is just over one point. maybe you blame it on mario draghi. they will wait until next quarter. the european stocks measure is also declining. -- stoxx measure is also
declining. european stocks extended their losses during the news conference. italian bonds falling for the first time in six days. that is pushing the yield higher to 2.02%. the euro is bouncing off a low. , theore on the markets equity markets reaction, i'm joined by mike reagan. was the market really disappointed with mario draghi? or they position for a big move? last month, mario draghi said the ecb would act as soon as possible to address concerns about lower inflation. >> we know that as soon as possible is not next month. >> the key word there is, as possible." people were expecting something. analysts whot many expected them to come out and say we are going to do quantitative easing today.
many expected him to flick at it, hint at it, that it is in the pipeline. he said we will reassess next quarter, even as they cut economic growth forecast, cut inflation forecasts. it is not a huge surprise that they did not announce a big package this week, but there was a little bit of wishful thinking going on. >> it does paint a picture of non-action if he is going to be reducing forecasts and say we are not in a position to do anything about this at the moment. of people are wondering what he was going to say about oil. >> did he mention it? sexy talk about it, but he said it has good effects and fat effects. >> he talked about it. but he said it has a heavy and bad effects hundred -- good effects and bad effects.
caps off. he did not come out on either side. , across the globe, what markets are moving the most on the non-news. the benchmark stock indexes are down. the country is outside of the monetary union. england, the u.k., switzerland, sweden all doing flat to slightly down. >> the bank of england did regard to interest rates. we got jobless claims. in the u.s. >> it did not seem to have a blip on the futures trading at all. we saw a definitive spike lower
on mario draghi's news. we are not down that much. maybe the jobless claims will help things later on. back on thee markets in 30 minutes. "market makers" is next. ♪ >> worst-case scenario. the economist known as dr. doom outlines the biggest macro risk for the coming year. >> the obama appointees that liberals love to hate. critics say will be too close. >> any regrets? exclusive interview with michael dell.