tv In the Loop With Betty Liu Bloomberg December 9, 2013 8:00am-10:01am EST
for two hours all week long. >> it is very early in the west coast. it is only 8:00 here. >> you are not jetlagged, are you? we are going to walk through some of the top stories. we are all over healthcare.gov. iter the dub octal when first was initiated, it has come back. about one million people have visited the site since september 2. today is the deadline for lawmakers. >> they have a dose of their own medicine. i thought it was very telling on cyber monday. the walmart site had problems. at the same time -- i am not sure which is worse. areome of the lawmakers getting an ugly surprise, including john boehner. he said that the premiums would double. co-pays are going to triple. that is what he said.
he says he is thrilled to death, sarcastically. payingas talking about the penalty options. i did not think that was a joke. >> we're going to be all over that, as i mentioned. mcdonald's is reporting their november sales. alix steel is in the newsroom with more. we know they had a tough time in october. >> n did not seem to fare better. globally, sales rose about 5/10 of one percent. that is shy of estimates. it does not look too bad. behind the numbers, they were down 8/10 of one percent. they are seeing a steep decline. they cite competition and flat industry trends. they get 32% of their revenue from the u.s. they have a 19% market share, so this is a big hit.
offsetting the loss is europe, which is up 1.9%. that is good news. duenald says that is partly to strong sales in the u.k. and france. germany was slightly negative. they are the strongest economy in the eu. down in asia-pacific were two percent, mostly because of japan. they sell their largest decline since february. long return analysts are destructive on mcdonald's. they see international development and product opportunity -- get what you want whenever you want it. as we're seeing with same-store sales, particularly in the u.s. and asia, it is a long battle for the company. they do not have explosive growth that we expect from names like chipotle. >> we have some breaking news
about another for -- food merger. sysco will buy u.s. foods. they will be buying u.s. foods for $3.5 billion. getting back to what alix steel was saying about mcdonald's, we have this point that they are on every corner in the united states. people are looking at alternatives to get their food. we talked to the ceo of mcdonald's and this is what he said about the saturation question. >> i would tell you that we're nowhere near saturation. i wish we were on every corner. we are not on every corner yet. we have a lot of opportunity. clearly, in emerging markets. we have opportunity in the u.s. and france and in the u.k. and spain and italy.
many are markets we have been in for a while. in japan, we still have a lot of opportunity. >> it is a really interesting company. they have actually grown revenues. the customer growth has not been great, but the revenue has been improving. that is the sign of a well- managed company. you do wonder how long they can stretch that out. use all those visitors falling off. >> the younger visitors. >> this is principally a european story. there was a slight improvement in the european economy. >> i love how you use the text speak. visitors. 10k fort through the mcdonald's this weekend. i have never read that. very interesting and very simple company. managing growth and closing
stores and opening stores -- they are doing a good job of it. >> we have a fun story coming up. nigella lawson, have you been following this court case? >> fun for us. >> she has been in court on a whole different issue. it deals with two of her aides and whether they spent money on her credit cards. this is about her cocaine use. that is what is so interesting. she is not the first celebrity chef to blow up in the kitchen. --ity -- paula deen >> she handled herself very well in court. with both humor and humility and making fun of her situation. some of these charges in the context should go away. >> we will have a guest on who has followed how they handle themselves in scandals. talk about fights, to billionaires are in a space
race. we will find out the winner this week. this is elon musk. he is an entrepreneur who just launched a rocket into space. he wants control of the launch pad at the kennedy space center. nasa wants to turn it over to a private company to save maintenance costs. musk has made a proposal for spaceex. jeff bezos has his own space company, blue origin. he has made his own bid to run the launch pad. this will be ruled on by thursday. what is with these guys and space? >> they see a business opportunity. i know the case about jeff bezos. they have this fascination since youth. there is a wonderful biography about jeff bezos called -- he talks about the interest in
space. it is something that he has been fascinated with. he started this blue origin company secretively in washington in a strip mall. i dug up the paperwork. he has been working at this for quite a long time. >> he is a dark horse in this. >> he could do quite well. nasa has stepped back from the business. there has been a huge boom in the space business. because of hdtv. that has caused every company to launch satellites. they're still wondering what the next move will be. space tourism is a big? question mark. this is causing them to fuel their businesses. >> hellas jeff bezos feud by others? >> amazon is a total powerhouse. it was hard to imagine 8-10
years ago that they would be a true competitor shall walmart. he has done it in a very competitive way. is probably doing $2.5 billion in revenue. much of the modern silicon valley is being built on the back of amazon.com. --is really big companies they are probably valued north of $5 billion. they are using the business services of amazon without building up. silicon valley loves amazon. >> they are able to grow their businesses off those services. the drones issue came up last week. i am curious how others view jeff bezos. he said he would deliver packages by drones. >> they sucked the oxygen out of cyber monday. they do not have any drones.
on friday, we were at ebay. emily chang spoke to john donahoe. she asks about the pr stunt of using drones. listen. >> are you going to show me an octocopter? >> we are not focusing on long- term facet -- fantasies. >> a fantasy? >> that was a slam. ebay has a product called ebay now. you can order something and get it delivered within a half hour. >> you do not need a drone. >> as a ceo said, what is the big deal? i have known drones for a decade. >> a little jealousy, i do not know. stunt,as a brilliant pr but it is not a product on the
market. >> you can see more at bloomberg.com or on our ipad app. currencyvirtual bitcoin has had a wild ride. it plunged more than 20% on friday after baidu suspended payments. , we decidedttention to celebrate the 12 days of bitcoin. who better to celebrate than matt miller? he is kicking off day one. you have been trying to five bitcoin? >> it has been proving more difficult than i expected. you have to be able to navigate the cyber waters of the millenials. i cannot figure out the internet as well as younger kids can. i am 40. it took me a while to figure out. it is,did not like
originally, i had to link my bank account everywhere. people were asking for my social security number and credit card. i want to live off the grid. in my jeep with water and guns. bitcoin,e your first you had to give up all of this information. to people you did not know. andnt in to coinbase.com they were asking me to link my bank account and credit card and social. why am i giving these people my information? backed sites, so they should be safe. i could sue this guy if i needed to. >> i could help you out that. >> is there a possibility -- what were you expecting? >> you could also do it locally.
there is also a site called localbitcoins.com where you can find people who have bitcoins. i was having trouble doing it. i was searching for people and found a guy at yonkers. he said, let's meet at a starbucks. bitcoins, was out of but he would get more later this week. it was like buying weed. week, trish regan was asking alan greenspan about get -- bitcoin. you have to meet a guy at starbucks and he says he is fresh out? on how closeds they are to age 19. i am kind of into it because i am 40. tom keene thinks it is insane. balance -- alan greenspan does not even believe in it. >> neither does china central
bank. >> they are about allen's age. that was the problem last week. china central bank said no way. baidu said no way. it plunged in one day. i could buy one in one hour. >> are you going to buy one? >> on the show. i have a guy. >> all legal and above board? right. we will look forward to that. you are buying one bitcoin? >> one bitcoin for $800. >> we will be back when he buys bitcoin. we have a great program ahead. scott from virginia is in the loop. we will talk about healthcare.gov. did he sign on for obamacare? and scandal -- what does this
>> it is deadline day for members of congress. they need to enroll under obamacare by the end of the day, are they risk losing their government subsidy. is with us, and also peter cook has more on healthcare.gov. as lawmakers are asked to enroll, some are having trouble. including john boehner. >> they have had some problems signing up for health care. they had to do it by the end of the day today. members of congress are facing the same technical glitches and sticker shock as they are
retired -- required to drop their health care plans and sign up to the exchange. they would have to eat their own cooking. that is what has happened. the reality is that they do have more options. they can choose among the gold level plans. the government also picks up 75% of the premiums. lawmakers get into the online exchange for d.c., not healthcare.gov. that has spared them some problems. john boehner has signed up for an individual plan. he said it took several hours and he does not like the end result. a new $800 premium. >> my health insurance premiums will double. my co-pay and adaptable will triple. i am thrilled to death, as you can tell. >> many democrats reported problems enrolling. they are getting covert --
better coverage and cheaper premiums. they may be eligible for medicare as well. >> thank you very much. with me for more this morning, in new york for a change, is congressman scott rigell, a member of the house budget committee. thank you so much for joining us. >> it is great to be here in person. the building itself is really inspiring. thank you for the opportunity. >> i am glad that you find that. first up, have you signed on? personal decision, from the beginning, i have declined every benefit. that is about three years or so. each member -- >> this is just consistent. >> correct. each member has to make a decision as to whether or not to enroll his or her staff members.
i have worked very hard to protect so many people from what i think of as the un-affordable care act. my decision was to not require my staff to enroll in that. so many families are reeling from this. i did not want my staff to. >> did you find that your premiums would go up and your co-pays would as well? >> certainly. what speaker boehner just described is being replicated by members of congress and their staffs and others. when my staff walked me through a would happen to them, i could not in good conscience enrolled him. -- enroll them. >> what are you going to do about health care? >> i have cash i am an entrepreneur. all of my staff are on the federal program. >> they can stay on that? >> that was an option for us. i do not fault those who put
their staff into the exchanges. it did not seem right for me and that is the decision i made. >> another talking point is that the act is going to increase premiums and make it more expensive. you have given up the fight to repeal the act. >> it is not a talking point. this is real life. this is families truly reeling financially from us. this is happening to individual members of congress and their staff. this is not a talking point. >> is now the focus. versus getting rid of health care? >> we can do the math. we went through a nonproductive shutdown. on the first day of that, i tweeted that we fought the good fight. that was running contrary to where my conference was. i did not see it getting better for our nation. >> do you think that we well -- do you think that you will leave
for christmas break and we will have a resolution? >> i hope so. this is an extraordinary week. we have multiple things coming at us. we need more certainty for the american people. the likelihood of that is still in the 50% range. i would like to give you more of an answer. >> you cannot. >> we were working through the weekend as well. >> thank you so much. cory, telephone is going on. >> jpmorgan is not the only company sweating. details coming up with a new investigation. and also, staying overseas, we are looking at fiat. will their bad stem the losses? ♪
>> you are watching "in the loop ." we are streaming on your phone and bloomberg.com. good morning. >> we are here in new york. onwe had quite a market day friday. the jobs report came in much better than expected. we are not doing very much on the market right now. >> there have been a lot of economic indicators. the results i am looking at have been very weak. low single-digit growth. the market was off to the races. the economic data seems to be cranking up. there's a lot of news. --with the way that this
with the way that stocks have been going, you would think it would be boring. maybe we got a little indication in the jobs report. >> scarlet fu has breaking news 4s. >> we are looking at whole logic. the shares are falling after they made an announcement that they will appoint two independent directors. two that have been proposed by carl icahn. a areclosed that he owns team percent stake in hologic. two independent directors have been added to the board. the stock is falling in reaction. in terms of the markets, futures indicate a higher open. we did have a emerging markets stocks climbed overnight and we are also watching the yen. the euro yen is that a five-year high right now. japanese growth was lower. >> all right.
here is a look at the top headlines. u.s. airways is announcing the completion of their union. they are emerging from two years of bankruptcy. become the leader. you can use your cell phone on an airplane. the federal communications commission will vote on thursday to eliminate more than 120 years of fans on cellular calls. the rule is said to be outdated and unnecessary. thursday's foe will be followed by public comments and a final vote. a tech companies have joined together to ask the government to review its surveillance programs. they wrote a letter to the president of congress saying that the government has a duty to protect citizens, but the balance has tipped too far in favor of states.
jpmorgan is not the only big tank with hiring practices in china that are being probed by regulators. goldman sachs, deutsche bank, and morgan stanley, and credit suisse are facing investigations. violated riperve s inost -- bribery law exchange for having business steered directly to their firm. mike mckee is joining us. dennis is joining us from washington. dennis, let's start with you. you say this is been a long time coming. reason whyctly the these banks should be regulated even more. >> i'm not so sure it is quite that. we have a far-flung operation of global banks. the headquarters in new york
have no idea what is going on. there appear to be reports of systemic illegal contact -- conduct in china. jpmorgan, jamie dimon and his executives had no idea what was going on with london whale. when you have banks this egg throughout the world, they're not just too big to fail, they're too big to manage. this is the latest example. >> i wonder what the report made you think today. i was amazed at the spreadsheet that they had. they were tracking the value of the hiring of family members. in particular, there was one family that they said the new york office would be surprised by his napping habits. i wonder what was most egregious to you. >> it reminds me of the libor scandal. these far-flung operations thinks nothing about complying with the law.
they actually track input in their e-mails and ims and they keep spreadsheets of what appears to be blatantly illegal conduct. remember the conduct act that makes it a crime if you hide anything in exchange for business. i understand the jpmorgan has some spin. the documents are pretty clearly contradicting in a defense here. it appears to be clear that they are exchanging hiring for business. >> there kind of a gray area here. >> there has to be a quid pro quo. it is not that companies do not do this all the time. all companies are constantly hiring people to do internships. perhaps in the hope that they get business. there is no explicit tie between the two things. that is the gray area here. at this point, we do not know.
otherwise, there would be prosecutions already. thisey said that we hired guy and got this amount of revenues. whether we want to believe them or not, they have offered a defense. they say that this was a post de facto spreadsheet. they did not get that much. >> go ahead. >> mike is right. it certainly is great. i did not say it was illegal. it appears to be illegal. there are a lot of facts that we do not know. companies do this throughout the world. the problem is, while it may be a competitive problem, the united states public policy established that u.s. companies are simply not going to be allowed to engage in corruption and bribery in foreign countries. it is not whether or not it is a competitive disadvantage. it is whether it is illegal. it is clear that it is illegal.
we will find out. >> to your point, how is this any different than banks here hiring former treasury officials? >> tim geithner did not go to work for pincus because they liked the haircut he has. he has connections. >> look at peter at citigroup. >> wall street is a revolving door. people go there. it is not necessarily corrupt, but it is the same thing. >> certain people are hired to get certain deals. we showed some of the biggest cases in the last year. the big french oil company with operations in the u.s. had to pay money because they were accused by the ftc of having a set of fake contracting bids. to get access to oil fields in the middle east. those were very direct quid pro
quo's. the challenge is to look at those places and documents. is this the way that businesses being done in china? the way the law is written is that it is harder to do this oversees the men in the u.s. example should be an and not contribute to the corruption. even if other countries are doing it. >> dennis? >> this is not like hiring tim geithner. jpmorgan chase is alleged to have higher the daughter of the deputy manager -- minister of the communist party. they hired the daughter of the current chinese premier as well as sons and daughters of other communist parties officials. frankly, they are de facto communist party officials. there is a clear allegation or suspicion of quid pro quo. it is not an after-the-fact
appearance of corruption in the united states and the revolving door. it is that they appear to be actual corruption. >> thank you so much. up, the 12 days of bitcoin. something cory knows a lot about. we kick off the series by the eying the currency live on the air in just a few moments. and the plot of a good mystery -- it is a true story about a family behind the glock pistols. stay "in the loop>." ♪
enough? >> we will have an interview with their ceo. that is expected to save them $50 million per year. tomorrow, all day long. i have a feeling she will get ripped over and over. but, she will get your packages delivered on time. the budget is on everyone's mind. including the omb director lew david stock in. he spoke with tom keene earlier this morning. >> i would give the lowest grade to republicans to ryan. he is proving to be a fiscal fate. it is his job to stand up and tell the truth. when he says we can raise spending for defense, act to the pre-sequester levels or domestic -- that is just evidence that we are going in the wrong direction. >> tough stuff from david stockman. tom keene joins us
right now. >> i thought it was a spirited conversation. people know what he is going to say. the nuance is new urgency. he did not get the budgets approved. it looks like the budget will improve for 2014. this is 3, 4, 5 years out. they have to get more responsible. he was especially harsh on chairman ryan. >> we had scott rigell on a few minutes ago. he says there's a 50-50 chance they will get something done. >> it is about economic growth. transferring that over to the economic -- the economy. they do not think you can transfer over the technology boom. if needed to help the budget. >> the economic data seems that it has been picking up. the results have not been
strong. you look at ibm and cisco and they have seen shrinking cyst -- sales. >> this is a model. most of this criticism to paul ryan of wisconsin -- if you make a model, make it a model that can work out. we have not seen that. we have not seen the view forward on paper. of your favorite topics, bitcoin. matt miller is in the process of acquiring bitcoin at this very moment. matt, i want to see this going down. >> i'm a little concerned about having to hand someone $800 in actual money for one bitcoin. we will see how it works out. that may be enough money for a down payment or at least a and theon a fiat 500 italian company hopes to sell a
lot more of those, especially in new york. they have a plan to go upscale, upmarket and bring the production for a lot of cars back to italy. in order to do that, he wants to sell more maseratis. he wants to sell more of those fiat 500s and he is going to bring all of the productions and to italy. it will put the luxury stamp. sell jeep grand cherokee's that are made in italy. this is a big $12 billion plan. he will invest 9 billion euros. 4c,s going to build the which he has totally redesigned. he will build a maserati suv. that is a big market in the u.s. and also in europe. he will also try to stem the losses. he has lost a lot over the last couple of years.
they have lost 350 million euros. they have dropped in deliveries by almost half. they have lost market share. the one place the looks great is maserati. he wants to build on the luxury success. >> the trading value of the maserati and the fiat, i am not sure. i do not know if you sell the story, but there was a tesla purchase in newport beach last week. it was paid for with thick coins. they haves. significantly less value. >> you can buy a tesla with bisctcoin. there is an intermediary. there's a lot of cool stuff that i'm going to be doing with the coins. just watch. >> thank you very much. of myaw a tesla outside neighborhood in new jersey. they are out there.
coming up, nigella lawson is used to the heat in the kitchen. now, she is coming under fire in a courtroom. we will ask a reputation expert what she needs to do before viewers lose their appetite. she is also on "the taste" on abc. enda spin off of lands' is not enough to satisfy hedge fund investors. stay "in the loop." ♪
>> it has been the year of explosions in celebrity kitchens for. lawson is being dragged through the u.k. courts and out -- amidst allegations of cocaine use here in have you been following this? >> we had this great piece in time magazine about how she handled herself in court. all of the different way she was
managing her reputation during the trial. >> it was really interesting. these cases underline the power of the personal brand and what you can do to salvage her reputation when scandal hits. joining us is a reputation. air. he is an associate at a management firm that works with celebrities, athletes, and government officials. including goldman sachs. they were slung through the mud as well. first off, what grade you give nigella lawson and how she handles herself? >> i would give her about a b plus. she needs to understand that you never pound your own test, whether you are sitting on the standard talking to the media. she was trying to do both. by her coached more attorney than someone with a pr background. >> how? >> you should never speak as to how you look yourself. a coke user or a pothead does not look like that.
>> that is one of her statement. i want to read that. the reason this is important is because everyone wants to know. what do you do in court? how do i keep my reputation in tact when i am under attack? she said that people who are regular cocaine users do not look like this. >> she was saying she was not skinny enough. are pr firms that specialize in crisis reputation. that is one of the areas that i am a specialist in. client, i would say look, people can sue a look like. it is like you telling your child that because you bought them a new holiday outfit, everyone at school -- don't i look good? let somebody else say that for you. do not pound your own chest. her attorney said. >> we remember what a mess paula
deen was. and the tears. nigella lawson was completely different. we had the contrast between what she looks like -- what her brand looks like. she is obviously motherly unsought. she went to the courtroom and there was a certain way you have to dress in the court room. you have to be stoic. she was severe looking. . shet's compare paula deen gets an f. she had a couple of interviews on tuesday show. several days prior, she hired someone who is a specialist to help her. i give that person an f. we are to make sure our clients are best prepared. >> you do not think she went off the reservation? >> with respect, this is putting lipstick on a pig. what you are dealing with is
people, in nigella lawson's you, -- with paula deen, have someone who built her whole career as a stereotype of the south. this did not seem to be a firmly held belief of hers. crisis pr is about making this look like something that it is not. >> there's a difference between cocaine and pot use and racism. two totally different areas. there is a lot more gasoline on the fire when you're dealing with racism. >> that is the worst. >> as a southern lady, a lady of esteem, a lady that people respected. she is seen as the opposite of that. at nigella lawson, there are some that are saying she lost a few pounds over the last year or two. maybe the cocaine was helping her with that. one of the things that i would tell her is you cannot be saying that you were just a casual user. people will not believe that.
you need to be complete and say that during the marriage, their --st dressed also to a and there were stressful situations. >> you do not believe her. not want to put a label on yourself to say that you're never going to use. if you are ever using, you are ever using, you're in big trouble in the future. >> let's talk about anti-gay slurs. that cost alex baldwin. showst lost his msnbc because of accusations of anti- gay rants. martin bashir resigned because he made those comments about sarah palin. >> there are a couple of things that people do not understand about the story. in the media business, comcast is now the owner. conservative company, does not take these things lightly. they came down with a heavy hand. alec baldwin had trouble with
other issues. anger, big problem. that was over the top. how they handled the bashir situation was horrible -- three weeks to make a decision and letting him slide out. no one believes that. msnbc has mud on their hands as well. one of the things that everybody is proud of is that they are still on air -- not on air today. that is a good thing. >> we're scandal free here. -- founder and president of we will be back in two minutes. ♪
moving and shaking this hour, hedge fund billionaire john paulson is coming about -- is making a comeback. a number of wrong way bets helped to cut his assets and half from their peak two years ago. paulson's fund is up two percent this year, and his recovery fund is up 55%. loser, still has one big his goal fund which has strong to $370 million. cory johnson is here with me "in the loop" this morning. ever since he made those egg wins in housing, he has been scrutinized in those losses. >> he raised a lot of money in the down market. gold has been a really rough investment. aboutis excitement
alternate currencies, whether it is cold, whether it is other trades, and of coarse bitcoin -- of course bitcoin. it is good to see him making a little bit of a comeback, especially in the things that work at first. lampert --ng any eddie lampert now vulnerable. senior markets are spotted julie hyman has the latest on june -- any lambert options. what is his current exposure to sears? now 48%take in sears is command that is because his clients have been asking for their money back in some cases. he recently distributed that back to them in the form of sears shares, and a reduced his stake from about 55% to about 48%. some bolts are watching the situation and sake that the investors are losing patience.
invested inrst sears, there was a five-year lockup. lockuphey could not -- time when they could not ask for their money back. now that has expired, and they're asking for it back. bey announced they would spending off lands' end into a separate company. the existing shareholders of sears will be getting a stake in lands' end, and he will be holding a 48% stake in that newly formed entity. sears has not announced any plans to do so as of yet. with that lands' end spin off, you know have the core sears is this which has seen 27 quarters of declining comparable sales and ongoing losses. year after year, lampert saying he will actually realize falla
from this business, regularly the real estate at sears. , for holdings in canada example, but here in the u.s. it has not happened yet. there is still another sale that could happen in the company, and that is the auto business in which analysts valued at 660 illion to $1 billion -- $660 million to $1 billion. >> it is now the 12 days of bitcoin. formal federal reserve heavy alan scratching his head. >> you have to stretch your outination just to figure the intrinsic value of bitcoin. i've not been able to do it, perhaps appeals can. else can. is this a bubble?
yes. >> to help us make sense of this new currently, it's max, who has been covering the ups and downs of bitcoin. and our bloomberg correspondent er, who has been having a hard time even buying it. quick i've been trying for days and days. either you have to wait like four days, which seemed an inordinately long amount of time, or you have to give them everything. make out details, credit card details, it has to be a visa card by the way, social security number, and i just really felt uncomfortable giving out that kind of information, especially since the whole point of me getting a bitcoin is so i can grid.y life off the move into the mountains. >> is that the point? >> i am just doing what my boss
told me to. i have not gotten a bit going tcoin, and over the weekend we tried to find other people, but we can never really meet up. or they were asking for $1200 for something that was really only $800 value. so we called up max. > so you have bit going -- bitcoin? >> yes. matt -- bouth for ght one for matt. >> the price had climbed up over well hundred -- climbed well up
over $1200. the crater to $600 came quickly. can sell the tesla, the back to motorcycles. crazy giving away this for one bit going. coin.it have a wallet, and they have an app for my iphone, and it is camouflaged otterbox defender case. qr code a picture of my e. >> what are you doing exactly? you are syncing them?
>> i'm going to scan his phone. >> ok, you're going to scan his phone, and? >> is not working? >> this is like a bill gates demo. something always goes infamously wrong. >> this is the issue. something always goes wrong. >> just show us what is on the screen there. what shows up? >> i can say this is the address that i put him in. matt miller. >> and then? >> and now it sends it. >> this notion of all of the coins, it isbit worth what you're willing to pay for it. >> now i haven't -- have it.
>> you just want a bit coin? >> i can tweak it to my good show on facebook that i got wanted and i can ask for tips. >> how come you do not start off doing it this way? it this way.do on thursday, there is a meeting where everyone goes to send them back and forth to each other. the thing is, there are not that many meetings like that. guy inrying to meet a yonkers to pick one up. tcoin, ande your bi you have your $800. >> i do. [laughter] i was trying to buy it with
my bloomberg amex which i did not want to pay for with it paid for it myself, but these methods do not work yet because the concern is -- coin, itransfers me a bit can try to reverse my paypal payment, and then i have his bitcoin and my money back. it is having a little bit of a teething problem getting off the ground. >> several companies are bitcoinngly accepting as a form of payment. thank you so much. coming up, mcdonald's reported november customer sales dropping for the fifth consecutive month. we'll tell you which countries in the world'sh
>> one company that we are watching this morning is mcdonald's. shares are falling in the pre- market. the same story that we saw earlier -- alix steel joins us for a deeper look at the growth issues. what is the weakest link? >> it is really a battle right now between europe and the u.s. if you take a look at europe state store sales, they rose one percent. strain and to europe, and russia as well. on the flip side, you have same- down sales in the u.s. .8%.
mcdonald's gets about 32% of its revenue from the u.s., making it a very critical market. one of the surveys conducted earlier this year found that mcdonald's is the least likely fast food restaurant to be ,ecommended to their friends way below kfc, burger king, and taco bell. they lay the low quality of food, and the not modern feel of the restaurants. >> thank you so much, alix. i want to bring in matt mccormick, a shareholder in mcdonald's. there are all of these concerns, i talked to the ceo, the concerned that they are not attracting the millennial's. the fact that they might be reaching a saturation point here in the united states. >> that does not necessarily concern me as much. people know what they are getting with mcdonald's. with an average ticket price
between four dollars and six dollars, people, when they go for a quick service retail area want price and value. mcdonald's is clearly trying to address that. i look at this, yes they were eak overall, it takes on seconds to go through the drive through at the mcdonald's. that is nine seconds higher than through's. they have already done a lot of that work. how much more improvements can they make? there are physical constraints to a lot of their facilities, they have made a lot of changes
to most of their stores in the u.s., what is left on the table? >> they will have dual drive- through lane, that is the vast majority of their transactions. they also have a 70% increase in the menu since 2009. i think with their new dollar tou anrea, they're going turn to high value high-margin areas, like the copies. -- coffees. they had to give more tur ns, at higher margins through the drive-through. >> the coffee is very popular at mcdonald's, but something that thompson said is that he is going to try to use digital to customize the experience. got to make burgers for experience. if this is what he mentioned. want more and more today to have a one-on-one relationship with brands. they wanted to understand what
you're going to add to my life. what's your special value? how are you going to differentiate your food come up products, services related to what i want? how is a customizable to meet? -- it customizable to me? you can do this through digital media. >> i like that, but would people go through mcdonald's, people are not expecting full a meeting mignon.let do i have high executions, no, but do i hope it works, absolutely. >> thank you. we will be back in two minutes on "in the loop." ♪
>> one big story on "bloomberg morning isar this con.apple ibea this is a low-power bluetooth that works with all iphones will they monitor you as you walk through the store. they will send you pop-ups with information about the product you're looking at, or the sales that you might need. they are actually monitoring you as you walk through their stores and >> you could turn this off? turn offunclear if you the bluetooth if that would go off. the experience is changing how people shop, and how people walk their stores, and that is what apple wants to master. that is like going into nordstrom's, and able saying that people who are going to buy
>> welcome back, you are "in the loop." moment, i have always wanted to do the opening. >> 26 minutes past the hour, it is time for on the markets. >> i'm glad to be here to welcome you to the opening bell. futures are higher right n, we do not have any economic data on the verizon this morning. emerging stocks climbed overnight eggs to better numbers out of china. -- climbed to better numbers thanks to better numbers out of china.
natural gas prices, up more than two percent. ice storms from canada will increase demand or feel. we will be on the markets again in 30 minutes. >> these are the top 10 trades you need to know about. cory joined in as well. company one ncaa approval command may generate more than $6 billion in annual sales. it leads the growing market for te the diseasea with fewer side effects. >> number nine is yahoo!. number eight is continental resources. downgrading the energy company,
from hold to buy. >> at number seven, morgan the companyaded kraft food from overweight to equal weight. >> number six, given imaging. it will be acquired by company up for $360 million. expect to close that deal by march 31 big >> number five, mosaic. mosaic saying the move represents a major goal towards its goal of more efficient balance sheets. disney, paring with
paramount for a marketing deal. other wall street firms are being investigated according to scandals that are aimed reported here. the investigation is whether jpmorgan violated anti-bribery loss. after syscomping agreed to buy u.s. food for 300 -- $3.5 billion. >> the number one stock, mcdonald's. sales dropped for the fifth straight month in november. chicago therom
author and founder of average joe options. i am curious what you made of friday's move where we had these really surprising down numbers and the markets went up. is that a break here in psychology? >> good morning buddy, good morning cory. perceived aser was good. when you look at the underneath numbers, we're going to see that the number was not as good as we think, because this patient is at the lowest level in 33 years. i think what we're really going to find out is that there's going to be no taper. no tapers go delete equities going higher because with the free money, five percent of the world holds 82% of the stock. they're good to can get a bike because they have that competitive advantage to get sheep money. they have cheap money, they were able to go buy more stock. >> what about gdp? had a little blip
here in the last quarter, but in the first quarter we're going to see a drop down. , with the fed pumping $85 billion into the system but we should be at six percent or seven percent, not 3.5%. i think this will be a little blip on the radar that will not be very good going forward. we will continue to see the fed intervening in the markets. >> thank you. from the trade to the call on the markets, i wanted to get our chief market strategist at jones trading. this call is look out below. we're going to see a bear market in 2014? >> there's a good chance of that. qe has certain traits that have e2,urred, during q everyone but gold antibody these
-- watching gold and commodities. that pushed along into treasuries, that pushed the top of the bob goodlatte i'm concerned that qe3 will push the top and equities. >> is notion that gold is on a one-year bubble, goaltended 11 year run into last year. you could've said that every one of those 11 years could have been wrong. >> gold had a nice bull run s -- thend bp wa peak was formed by the hedge fund managers. we had this inflation trade going on, so gold is going up on inflation trades. >> weathers unemployment, whether it is gdp, a lot of
these numbers are picking up in the second half. like he said, the past three months averaging 900 thousand will be cannot have an average there. unemployment rate, if you project it out as a decrease in 2000 12 to june of next year, we will be at the same place we are today. nothing is really generating -- accelerating. >> the better economic data we have seen is a case to be bearish on gold. >> the idea that gold is a store of value is a threat based on its blended dollars this year. goal is headed for its first thatl drop in 13 years, has made it less attractive.
also reducing demand for a hedge against crisis. china still hungry for goal, but not enough to offset etf investor sales, and the lack of indian imports. >> what is the case for goldman? -- gold then? >> it has become a very speculative venture right now. that hedge fund trade of a few years ago is gone. i watched the commitment to trading report, and it has gone down a lot by the same way as it was in june. gold will start trading on its own merits, and this has had an incredible run for the past five years. >> mike, thank you. cory staying with me, because we will be talking about ceo and where the next crisis might come from. ."ay in -- "in the loop ♪
inside ups. -- thehe big assist busiest time of year for the world's biggest package company. more than 4 million packages a day are sorted during the holiday season. tomorrow is the against day, we will have the story of orion. the algorithm that is expected to save ups $50 million a year through math. tomorrow, all day. >> did you have to haul any boxes while you are at amazon? >> they made me do every other little lousy job. >> we have all had our first jobs about right? -- jobs, right? >> we have the executive editor greatkedin, with some
stories that are trending. let's make 2013 the year of the "unselfie." >> taking the "selfie" and turning it on its head. putting a picture up that covers her face, and says where you are sending her money to -- your money to. >> i want to see a start up -- he showed a phone them and said if you of 30 youhe age think the camera is on this part of the phone, but if you're
under the age of 30, you know it is on this part of the phone. >> one person i do not think will be taking a selfie will a piece on, he did nelson mandela. >> imagine a people bring together the blacks who were successful for so long, and the whites who were so scared, you issuesave fewer legacy come together to work for the betterment. he was on the scene as the news broke that nelson mandela had died. he ties it into a larger theme, the arabif you look at
uprising, the groundswell of a desire for good change, and no political leaders should they come into the next era, nelson mandela was able to do that. >> without the help of social media. >> exactly. it was a powerful piece. >> the connection of the top ic and the author. i have to ask you about this amazon store, because it dominated my world last week. it is fundamentally interesting and silly. it doesn't exist command is not legal, they do not have the infrastructure for this thing. why does that capture the fascination of the viewers? it was a huge story last week by deliver that ebay can you things in 30 minutes -- >> drones is where the future is going.
people want to be able to see around corners. firstf headlines when they started being talked about, people started to believe that what is not real today might be real in the future. it started to be debated, is this a good thing, or a bad thing? >> is this just a gimmick? tying into a true human emotion. as much as i would like to think as the popularity of "bloomberg west" is about emily chang, it is the real human optimism, they believe in droves, they value it isectric car company, all about fundamental beliefs. emily.s all you, and >> it is all me. >> you need to read poetry.
>> sam, thank you. >> time for today's egg number. 2.5 million. glocks roughly how many nine millimeter pistols have been manufactured. for are now standard issue two thirds of the united states police departments. ceo is going through a messy divorce with his wife helga. she is trying to claim a 15% share in the privately held company that she held when it was privatized. the former radiator engineer has since married a woman who was 50 years younger. stroke,ecovering from a and she was his nurse. >> i do not want to get that paired quick i do not see what she sees in him.
contributed significant assets to the company, and then was able to require -- three acquire those assets. >> it is fascinating about these companies that are in danger or the claim and even that was laid by his ex-wife on his empire. >> family, vision is the grunt , turning that over to the next generation is one of the most difficult job that these have to go through. , i am all fore it. he broke the rule. next, the blackrock
>> blackrock, the world's largest money manager is holding a symposium. eric, you have some big shots on the show today, what should we expect? >> as you can imagine, you should expect to hear a lot about investing in for the 14. is going to be a year after the s&p 500 went up 25%, and it makes all that much more difficult to decide where to put your money if you want to continue to be in stocks, fixed income, currencies, commodities, alternative assets. we will be talking about all of
that over the next two hours on "market makers." it all revolves around what blackrock calls its scenario matrix for 2014. they have identified recent areas that they believe are economy, the the market, liquidity, and how companies behave. there is a base case scenario, which they call low for longer, and they are a 55% probability. it is kind of like what we have heard from others, this whole notion of a new normal type environment. growth continues to be low about fragile, and there is a continued risk of asset bubbles building. andt conviction is low, comedies are not doing a lot of investing or hiring. there is a bold case scenario, -- bull case scenario, but that
only has a 25% probability. >> what an interesting way to look at the markets. what does larry fink have to say? >> larry, as it turns out, is not here. he is traveling in the middle east, he's going to be seeing clients byckrock's doing some investigation on his own. i did have a chance to sit down with larry fink on writing. we talked about something that is really important to investing, risks. where are the risks, and what hes he seem that's -- perceived as the biggest risk? here's what he told me. >> the next crisis will not be coming from banks. i do not know where it will come, it may not be in financial conveyed might be in technology. maybe it will be private
security that would back a lot of us. but the big crisis will not be in financial services as much a some people worry about. heard larryty, you there say we aren't going to see a crisis in banking. that is it from blackrock for the moment. much more coming next in the next two hours. >> i just got it was long and strong, board short anything -- don't short anything, buy, buy, buy. >> make sure to watch that special edition of "market makers" at blackrock. now time for the bloomberg outlook. the president and first lady are off to attend the national memorial for south african president nelson mandela.
mournershousands of commemorating the iconic leader in johannesburg. shanghai officials have warned children and the elderly to stay indoors due to toxic smog. it is the seventh day this month that schools and factories have air ordered closed as quality has hit record lows. >> you do not even want to go outdoors. new york is lovely this time of year, 14 degrees and hail going sideways. >> that does it for us today. tomorrow, ron johnson of wisconsin will be weighing in as lawmakers close in on the final hour to make a deal. at 8:00 a.m.row
>> it is approaching 56 minutes past the hour, which means that bloomberg television is on the markets. i'm scarlet fu. with 30 minutes into the start of u.s. trading, deeper questions are driving everything from stocks to the yen. risk on is pretty much the theme this morning. the s&p 500 is within spitting ance of setting
another record high. a stronger dollar would be lower gold prices, but gold has already lost 26% in terms of the u.s. dollar this year. joining me now with a look at what the charter thing about where it is headed from here is greg bender who used to trade oil futures. there are short-term considerations and long-term considerations when you look at chart. trap had a classic bear about which happens when you get below a certain level of and it can only stay down there for a day or two to and then immediately rally back up. we will the catching a lot of short-term traders short. now in the january futures, we're back above the 200 day moving average. a long-term trend line that we
had been back above for a while. trades isnd line with what to watch. >> does that mean that the short-term traders are changing their positions as well? >> they can have the ability to move in and out pretty quickly. they put on their most bullish bets than july. bythese are being driven data questions, and the better- than-expected data we have been getting. onwe had the jobs number friday, and some better data coming out of china, which is driving some changes as well. >> how much are people paying attention to speeches by the fed president? there seems to be no change in the tapering until next year. i'm talking to
seem to indicate that in the oil markets and energy markets that the taper is already built and. the question is looking back toward the iconic numbers -- economic numbers. positiveve some calle follow-through, that will not hurt either. >> the big news was the opening of the southern leg of the keystone i played. it caused a shift, why is that? >> it was the timing of that. that combined with the good economic data, plus we had an oversold market coming off of that bear trap that we talked about. we had some short covering, and some good news from the market. >> give us a preview of this week, what are traders watching? >> commodity markets right now are seeing a little bit of a shift. it is a good week not just in energy, but also natural gas. we had a good week in metals last week, the commodity industries are starting to turn
>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. done deal. willcan and u.s. airways form the largest airline today. will customers end up paying more for fewer choices? we will speak to the ceo of the merged company. and the year ahead. the largest asset manager will make some big bets on 2014. we will hear exclusively from the president of blackrock. striking back. herbalife opens a new front in the war with thla