Skip to main content

tv   In the Loop With Betty Liu  Bloomberg  December 12, 2013 8:00am-10:01am EST

8:00 am
flex who are in the loop. i am betty liu. food, movies, and social media. we begin by talking about shares of hilton. they have been trading today after the biggest ipo ever for a hotel company. both and raised $2.5 billion. one of the largest private equity profits of all time back in 2007 there that is the blackstone group. unusual ipo for amc. members to buy shares. it is really an unusual thing. so the worst. score one for pepsico. its beverages replaced coca cola at buffalo wild wings across the country. it opens the door for interesting food creations. we might be talking about doritos and crusted chicken wings or something like that
8:01 am
with this deal. qwest that sounds disturbing. >> that sounds disturbing. >> it sounds interesting. >> it appears he is heading to the fed. the former bank of italy's governor has except the job of vice federal chair reserve. why is everyone excited about >> there is probably nobody more respected, nobody better known. he is not a household name but he sure is in this perfection. -- profession. nolan freeman and the whole game , he went back to m.i.t. and taught there.
8:02 am
it is sort of the driving force behind economics today. he went on to be the number two person at the international monetary fund. finally finished as the bank governor in israel. he ran the bank during the global financial crisis. has been his pupil. these are the superstars of economic. >> it is an impressive resume. not be the chairman? >> he was a possibility for the job at the time. the president was handed in by the hold janet young and larry summers back and forth very he did not really get a chance to get in there. he was not american by birth. he was born in zambia. a dual american and israelis is in.
8:03 am
to know about his views toward the notion of stimulus area the economy is interesting. five this is an interesting question. it is like 1980. a co-presidency. along?ld these two get fisher has criticized to ee and has also raised questions about forward guidance. it will be interesting to see how they meld those two things. >> thank you. in washington, an all nighter thanks to partisan gridlock over nominations. peter cook has more. >> what you have is paid back over the nuclear option. the rules ofanging the senate last month.
8:04 am
republicans have basically tied up the senate floor and forcing harry reid to use all the for nominees. they cannot block nominees but they're forcing them to use every single minute of debate as required. they have been going for 16 hours straight year they voted on one judge at 1:00 in the morning. more most to do this morning. they are saying this will continue over the next couple of days. youy reid saying fine, if will do this, it is a waste but we will stay here and get these done before the holidays. >> yesterday, they were celebrating with a budget illiquid together. does this jeopardize the deal? >> it does not. it could flow in a. what is happening with the budget deal, it is expected to get its first vote today in the house of representatives. test of loyalty to paul ryan. i am told he has made a
8:05 am
compelling case for the deal. criticism it does not do enough for the deficit, i spoke to the chief deputy with. he tells me he is confident they have the votes. take a listen. >> there is strong support among house republicans for a couple reasons. it is an incremental that in the right direction. does not raise taxes during probably most importantly, it finally breaks into the idea of dealing with mandatory spending, which, as we all know, it is the real driver. >> house republicans, at least and the bigger question is democrats do not like it and it does not include an extension of unemployment benefits. >> what is the timing of and what kind of pressure does that put on it? >> the ultimate incentive for members of congress, the house friday.to leave town
8:06 am
john boehner says they're going to matter what. we want to wrap this up. a few other things, and then they will ticket to the senate. week onte votes next the budget and a few other matters. qwest they say the happiest day of work is the day before vacation. >> thank you. qwest pepsico ceo scored a big win over coca-cola. pepsico announced it is replacing coke at one of the nation's capital restaurant chains. pepsico's made by leveraging the full strength of our portfolio, we are able to partner with customers to co-create new products and launch exciting new menu options across both food and beverage. it may eventually include snack foods in addition to drink.
8:07 am
it is a chance to offset declines in retail sales of soda. havehain can capitalize on two boxes ties to baseball and the nfl. sounds like it is a match made in heaven in many ways. qwest we had dinner with someone the other night. pepsi's plans for the super bowl. halftime will be really big for them and they intend to take what they're doing with the nfl and really spread it across different advertising platforms. interesting about buffalo wild wings, they have been able to create a niche here in chicken wings and chicken and eat mcdonald's at this game. the biggest of sellers, the biggest seller of chicken wings. together ono match this, you can imagine what kind foodsferent frankenstein out there. >> we are really excited about
8:08 am
doritos. breakfast. amc, on the other hand, with vocal cola, investors buy shares from one of the country boxes largest movie theater chains. they offer that not just to bankers but to customers. julie hyman has details. julie, it is weird. all of the ipos that offer shares to friends and family. it is sort of like friends and family accept it is stubbs members. that is the name of the loyalty club. 2.5 million members of the club. $12 a year and they get discounts and various incentives. morealso tend to spend when they go into theaters on food and bed for -- beverage. this gives them the right so they can buy $100 to $2500 worth of shares which are expected to be priced at $18 to $20. it sets aside a little more than one percent of the shares. they can do it for a web night,
8:09 am
also an interesting twist. currently a website where you can buy stocks they're there has never been an ipo on this site. it is also helping to underwrite the deal. an interesting partnership. it depends on what shares will do. >> i am thinking when we were getting ready for facebook to open and it was revealed all the shares he asked for, he was getting her i thought, that is a bad sign. often, when companies are offering of shares who normally could get in on deals because nobody wants them. >> we are talking about a small percentage of the overall offering. >> what will they use the money for? class that is interesting. it is basically theater upgrades. they go into a lot of the dell in what kind of theater upgrades we are talking about. nicer seats, armchairs. look at some of the newer theaters. will you be able to get tickets
8:10 am
in advance on a number of different platforms? before, they just had limited partnerships. you can drink while you're watching a movie, so they will expand offerings. it's all of these different things to maximize the theater experience. why? they make more money. they charge higher sticker prices -- ticket prices. a big deal for a lot of theater chains, and expensive as well. >> yes. a conversion to better sound and better quality of the screens and the imac greens. all of that upgrading of the experience to get people out of their homes and into the actual theater. releases, manyw of them, you can buy on demand in your house. they are incentivizing customers. thing withe same sports. think of the nfl. it is easier to watch football
8:11 am
on your couch at home than it is to go to the avm. exact. -- go to the game. exactly. >> the investors have lost so much money over and over again. they recapitalize. >> people thought the theater business would die for years. somehow, it keeps on going. people still keep going out to the movies for the shared experience. so amc is trying to maximize that experience. >> thank you so much. julie hyman. more great stories ahead for you. edward snowden strikes again. hearing information the government may be tracking your moves with a little help from google. billionaire facebook founder, mark zuckerberg's sister, will tell us more about social media etiquette. after president barack obama faux pas.
8:12 am
>> not good etiquette. >> stay in the loop. we are just getting started. a lot ahead for you. ♪
8:13 am
8:14 am
8:15 am
collects you are watching "in the loop" live on bloomberg television. a u.s. national security agency secretly tagged along and companies like google are tracking the whereabouts. -- new documents from a trove exposed by edward snowden. it suggests tracking ability, the nsa can access personal information just like google. president obama has admitted.
8:16 am
joining us is mark young. former legal adviser at the nsa. this story is kind of amazing, that they're actually using the same,logy, exactly the piggybacking on google. i am not quite sure what they mean by piggybacking when you're talking about technical aspects like cookies and internet access and piggybacking just seems like a trite term. example it is another of how our intelligence community uses advanced technology to target the nation. >> this raises a lot of questions. number one is, does google even know this is happening at the debt happening? sure, but i would say based on my spirit they would have to know, but not in the way you are presenting it.
8:17 am
for example, if you have read any of the material that has been declassified by the office director of national intelligence, you will see an awful lot of information in there about the foreign intelligence surveillance court and the ability to issue warrants for the kind of data featured in the story. something aware of like this? most likely, but only through the legal process of being served a warrant to provide information to the government. wonder in terms of the technology and how this works, do you think the nsa would therefore work with google to find out what it was already doing or is it possible the nsa even worked with google to design a different kind of cookie that would give information that would be more useful to the agency? >> it is possible, but highly unlikely. like i said, the foreign intelligence surveillance court authority, that provides nsa exactly the information it is looking for, as documented. having to work with google and
8:18 am
derive something like a special cookie, it is possible but highly unlikely. oddact, it seems a little that companies like google and microsoft and other industry leaders are beaten up so badly about cooperating with nsa, when no one would say on the other you are doinghink wrong by complying with a court order. >> my question to both of you all american citizens in the united states using their internet and the on mobile phones, the bottom line is they want to know what information, when i am on my mobile phone and on my computer, is exactly being tracked by the government. not seem to be a clear explanation here. the first question these folks should ask is, are they communicating with terrorists or are they terrorists themselves echo if they are, they should be
8:19 am
concerned and dive deeper. as normal citizens and folks disassociated from terrorism, they should still ask the questions about what kinds of information they are giving up, whether it is their location or browsing history or interest, they should be asking the ofstion, what kind information am i providing to google and amazon and what we have seen in the commercial istor in the company i run that people actually like the tracking mechanisms and they want the convenience of being able to access gps. >> they wanted but they do not want it used against them if the government will spy on them. >> yes. that is a mischaracterization. there seems to be a theory that the government is snooping on everybody. i can tell you, just ask any of the large internet service is technically
8:20 am
impossible and practically it up -- absurd. nsa, very tailored and specific for a specific reason. i am sure they do not make mistakes except for when they do. that is the concern. concerns i hear in silicon valley is companies trying to be a global business such as facebook and google and concerned it is hurting international competitiveness. i wonder what is in the nsa when these programs are discussed. difficultng after a job of fighting terrorism. thank god for that. when they make these decisions, there is a discussion about what this does for the economics and the businesses affected or they feel -- that is someone else's purview. >> it is a little bit of both. msis also a bit of a false
8:21 am
in that, if you are charged with protecting the nation, the economic reputation of the be a highll not priority. having said that, a lot of folks rely on folks like the department of justice to say, if you are going to help me, you have to put that into your considerations as an intelligence officer, that is not my purview and i have enough on my plate to worry about the reasons why am going after this particular individual and giving the court enough information to show you it is a legitimate concern. to reiterate my previous point, it is not fair for the american public or for the global public, to bash these complyingsimply for with the legal process, which they have to do in every country they operate in.
8:22 am
for thear explanation public would probably save a lot of the criticisms being lobbied toward the government. --nk you, >> coming up, u.s. automakers in detroit, putting cities back on the road to prosperity. do not act like you are not impressed. >> that was a good ron burgundy impression. >> my personal professional hero. that and staybout in the loop. ♪
8:23 am
8:24 am
8:25 am
8:26 am
"in theu're watching loop." it is 26 minutes past the hour. remember we are watching closely retail sales numbers out just -- in just a moment. down 6/10 of one percent. we are on the markets again in 30 minutes. here is a look at bloomberg top
8:27 am
headlines each morning. < does years after its ipo, the social network has been selected to replace the benchmark index. jpmorgan date to a dollars to -- pro-whether it had turned a blind eye to more than $1 billion in penalties and prosecution according to the new york times. least partial a to blame for the international airport by july. the pilot being trained on a crashes7, the plane according to information released yesterday at a hearing. detroit, the renewed
8:28 am
commitment. cars helping to jb at two bottom line. contribute to the bottom line. ♪ ♪
8:29 am
♪ >> retail sales -- >> a big part of that.
8:30 am
and i at the corvette say, that is a cool looking car. >> a lot of it run by design, interestingly. >> yes. up 0.6%.les, the numbers out now. 7/10 of one percent gain. exclude auto and gas, 0.6%. double what the economy estimated, a gain of 0.3%. claims, 360 8000 claims. we have come back up a bit from what we saw in the prior week, below 300,000. the expectation is for 320,000 claims. these job numbers are a little bit worse. >> not as important as the monthly number. >> give me your take on this.
8:31 am
>> this is the holiday this season. a lot of people could not file because of the thanksgiving holidays. jobless claims are. they are better than good. they look for signs of where season.for the holiday corey's corvette help build by 1.8%. they thought it would go down a little bit. so strong. auto sales from the way the automakers reportedly do it on dollar volume rather than unit volume. still a small increase. you pay with cash at gasoline stations, down 1.4%. all of the strength season. is that her than expected. without the help from gasoline. food and beverages are down a little bit. as a category you want to watch
8:32 am
because you get discretionary spending and cut back a little bit. eating and drinking, we went out and celebrated 18 three percent closing sales. not good. downto that -- to set -- two tenths of one percent. 5/10. it suggests we will have some .trength >> it sounds like i need to add to that category. mike, economic editor. online marketplace between millions of products, many of which can be designed by customers and customize and carry merchandise from paramount and amazon. we are joined now by this el of café press. us.t to have you with >> like all online retailers, we
8:33 am
.ake notice the curve is pushed back. >> i was at an amazon distribution facility and fulfillment center. -- feelt you to fill fulfilled. they saw a lot of polls not just black friday but thanksgiving day. propertiesseveral and if you were smart enough to run the sales. >> does that mean they were spread out more? bigger as a result of days they're? >> i think we were able to it didte holidays but not seem to pull anything away from it. >> how our partnerships like amazon? how big of a chunk are they were your business? >> partnerships like that are critically important for us. not inventory. people can come in cocreated
8:34 am
products. because they can, it felt. it is what they love. getting it out in front of more people just means more sales for us. we have customers like amazon and a partnership with the hunger games and a new movie coming out. that really helps spread the word. >> is that where business is headed? more toward big commercial enterprises like that? knowr custom products, we when people tend to look at the time,irection at the same we want to take a look at that. we are ready to make those products. >> i wanted -- you did tell me if they're making more. >> we do not view shutterfly as a competitor. we overlap a little bit there, but no, i am not the death and his business do anything different than they normally do. they do a great job. >> the other one, vistaprint.
8:35 am
it seems like they have fallen off a little bit. >> they serve groups and small business and we service comes number. was with robert keane the other day and we agree we overlap a little bit. .e runs a tight ship i do not think we are major competitors. >> all right. thank you for joining us. the ceo of café press. >> coming up, president obama's controversial sulci. the phenomenon of taking pictures for yourself. americans often want to look and dress like favorite celebrities and do not want to get health insurance like the stars. . plus,bamacare campaign our special series, 12 days of bitcoin, a holiday special. stay in the loop. ♪
8:36 am
8:37 am
8:38 am
8:39 am
>> obamacare and kids are kicking off a new and roman enrollment campaign. class when i am in the office, call me president barack. ♪ if my critics get an attitude, i tell them to stop if you knew that -- need that new health care, sign up like it is hot. this health care, which has got it going on. ♪ >> i have a headache from that commercial. us now for more is our wrapping bloomberg surveillance anchor, tom keene. white house correspondent giuliana goldman. i want to start with you because this is a little desperate. class i do not know if i would call it desperate.
8:40 am
the white house released and roman numbers. what they're not telling us is the breakdown between the young and healthy and the older groups and rolling. that is the biggest fear right now. for the white house and obama care advocates. when it comes to the risk pool, that is the big question. if they cannot get the risk goal, then premiums are going to spike. to do noware trying is start creating a buzz and get young people thinking obama care is cool because the botched rollout has dampened enthusiasm. first impressions are lasting impressions, especially with young people. class i would go right to adam inine of maroon five, born 1979. i feel tell her -- terrible. a whole new world and a whole new audience they have to capture that audience. is a president who used a million different formulas and they work. more power to him as they try to
8:41 am
set up a demographic grid using every technology they could use. he looks like cory johnson with that. eric class i get that a lot. it is weird. >> there are so many celebrities being signed on for this. adam levine, scarlett e -- scarlett johansson. cory, scarlett johansson. hot, when like it's it is about insurance, i think that is risky. they will get a lot of buzz with bringing on all of these celebrities. is there a little bit of cynicism here? celebrities tell me about insurance? >> a few things. one, the silver lining is that young people procrastinate and , by need to enroll by march
8:42 am
the deadline. they are starting to create this was -- they want to get 100 million contact through social media. maybe the silver lining and the hope is that young people will start to run to the exchanges as we get closer to the deadline. but people from groups like enroll america, groups affiliated to try to boost enrollment, what they say is, we know adam levine, they will not force people to sign up for obama care. what they are going to do, andn, is create this buzz get people interested. the challenge is getting a follow-up e-mail and teaching these people how to use the website. theyll of this is great are doing this. what are the financial incentives for a 26-year-old hipster like you to do this
8:43 am
program? >> i am little older than 26. >> 28-year-old. incentive? financial class that is one of the lessons guys like adam levine need to impart on the youth of america. explain to them why it makes sense for them to be standing and take money out of their beer fund to pay for health care. they need to explain the consequences of not signing up for health insurance and not making the monthly sacrifice in order to protect themselves down the line. >> that ad is the most enjoyable part of the affordable care act so far. this is what is important. to make it enjoyable. >> if there is no financial reason to do it, there is no point. >> yet. we have smart interviews on this. the idea of balancing premium
8:44 am
and deductible and the idea that i will never get sick and do not eat health care and i do not need 10% of my gross income to go to health care when i am trying to get out of the studio in a one-bedroom apartment in brooklyn. giuliana has got a five bedroom mansion. >> like all the other 26-year- olds. >> thank you so much to tom keene. when they tell us they want to wrap it up, what does that mean exactly e i know we will be back shortly. ♪
8:45 am
8:46 am
8:47 am
>> the first "anchorman" was a box office success. ron burgundy has been everywhere lately.
8:48 am
long before the second movie is released in new york. twoook at whether anchorman bold campaign is working and if we will soon see copycats. >> a movie that came out nine years ago and earned antics -- a million tom a may well be the comedy hit of the holiday season. doubtthat is without a the dumbest thing i've ever heard. >> how did that happen? >> anchorman was wicked funny and became a cult classic things to dvds and that's like -- netflix. not know if this movie is good because i have not seen it yet but it is a marketing juggernaut. after it was announced, it was in a museum exhibit. a book. a mobile game.
8:49 am
cameos on tv. anchorman is taking things to a whole mother level that's a whole other level. taking things to a whole other level. tol ferrell is no stranger digital media. their website, funny or die, make $30 million a year. ron burgundy is a character that comes along once a decade and will ferrell is genetically engineered to play him. >> i love scott. it goes down into my belly. >> you could put that in the real world and you would love it. we love he is selling durango's and that there is an ice cream flavor after him. there is a reason why we are not eating the donuts right now. it could tank but it probably will not. because of that, you could be sure to see this marketing in a lot of other movies. a strategy does not work unless you have got the goods. i do not know how to put this,
8:50 am
but -- i am kind of a big deal. >> sam, the bottom line is all of this will work here or what? >> it seems to be working. you see pockets of resistance and people complaining the movie is being over exposed. they are getting a little fatigued. most people seem to like it. >> for a and -- for any will ferrell movie, there are bits that should have been cut out anyway. watching it use the new media it might be the best anyway. >> his movies can be up or down depending on which one. >> my personal favorite was his inwing up at a live newscast north dakota. what have some of the biggest it's been so far? have been for dodge fantastic.
8:51 am
he shot 70 of them. were shot overs the course of a few days on studio. dodge and themor because they just go viral and everybody starts sharing them and is -- it is promoting the movie and everybody also a happy. >> i love the whole notion of this movie breaks the anchorman thing and lets everyone know we do in fact drinks docked on the set and everything is fine. >> he said he was your idol. >> you think there is coffee in their? has been such a cult success. when it came out, it was like a moderately successful comedy. >> and it caught on. >> exactly. in the intervening years, it has really grown to this point. >> quirino if other films will try to adopt this as well? >> i'm sure hollywood studios, you read adweek and they are paying close attention. they will try to do it, as well.
8:52 am
but you have to have a beloved character or property to sell this. you cannot just do it with anything. >> yes. the way he is showing up across all these places is billion. they did a little bit of that with the earlier one. it seems to be much more ad hoc. >> it fits in with will ferrell's own appearances. he used to do ads that were only shown on a local market in wisconsin than it would go on the internet and get free media. much.nk you so >> thank you for having me. >> coming up, when big companies go public, usually wall street cashes in. even amc's lloyd -- loyal fans and employees will get in on the action as they are watching anchorman two. we will look at implications of potentially record-setting public -- we will be back. ♪
8:53 am
8:54 am
8:55 am
8:56 am
class is 56 minutes past the hour. bloomberg television is on the markets. equity futures still up pretty much -- it has turned around just a little bit. great retail sales coming in a little better than expected encore retail sales. you get the hilton ipo. that company is going public and will list and trade for the first time today at $20 per share. we will be watching the hilton ipo and how it performs today. we are on the markets again in 30 minutes. coming up, social media randy after the weighs in president of a controversial picture of himself at nelson mandela's memorial service. plus, liberty global looking to expand its footprints in europe. we got a look at the is 56 compy people will by now. you are watching "in the loop."
8:57 am
8:58 am
8:59 am
9:00 am
openingnutes to the bell. this is "in the loop." what we're working on. americans hit the mall last month. sales rose higher than expected. we may move closer to using cell phones while you are flying. are you happy about that? voteec takes a preliminary to lift the ban on in-flight calls. slave" and "american hustle" are nominated for golden globe awards. shop withbby bitcoin,
9:01 am
bitcoin,, -- bought a hopped with a bitcoin. a lot of people are getting into this game. why now? >> is one example that we see today. so many other guys, tim draper and his son adam are involved in bitcoin. peter teal getting money from now -- of bit hey -- bit paid.
9:02 am
>> -- has been complaining about a trade. he put in a trade to acquire bitcoin. it was excepted and then there was failure of the liver. deliver.e to that seems like a big deal. >> that is happening on all of the big exchanges. not consider itself an exchange. exchanges,e big these of the biggest major exchanges, they have problems with -- sometimes service will stop. customer service is slow or they will ignore customers. it is sometimes difficult to get your money out. >> who is responsible for making sure they work off -- properly?
9:03 am
i don't think there is anyone -- >> that is the point. mark would look at this and say that is our advantage. we can make a more stable marketplace. when there is a broken trade and there is no one you can go to and say they broke this trade, who do i sue? >> that is a risk you take if you're looking to get into with the size of a return. the bigger the risk, the bigger the reward or punishment. that is the case here. a square ato webster hall. this is the kind of place where i can go to people and trade person to person with cash. i will not have the kind of problems that you have when you're working on the big exchanges.
9:04 am
>> can't wait to hear. a bunch of dudes with their phones out. >> it is not a pickup up spot. remember that. >> it is a community. >> matt miller on bitcoin. moving and shaking a sour, president obama number one choice to be the number two person as the vice chairman. while in israel, fisher was the first central banker to cut ra tes at the start of the financial crisis. he has a long and esteemed resume.
9:05 am
hilton has raised nearly $3 billion in a record ipo. their holdings priced its initial public offering yesterday. stephanie ruhle joins us now. tell us about the pricing and what makes this a big story. deal, 2.5look at this billion dollars, it is the largest rutile -- hotel deal we have ever seen. the -- this iss the biggest deal they have done. the deal was 10 times oversubscribed. it is a blowout. they ended up pricing it at $20. cory, this should be interesting to you. after we look at where twitter price, they raised the price and squeeze more out of it, we saw the same tng out of facebook.
9:06 am
blackstone, hilton leads the money on the table because they are massively invested. >> they want move in the stock so they can get out of that later. they are in this because they've -- they want financial return. they can come back with a secondary or whatever to get out of the addition. >> laxton is thinking a point -- blackstone is banking a $.5 -- $8.5 billion in gain. you took asaying bath with this and they have written it out and what a home run. in the next 18 months, we could see them start to sell off these assets. to be owningant and operating hotels. that is not their business. >> why did they raise the price? >> they could have invaded -- they could have and they chose not to.
9:07 am
they could have, just like twitter and facebook, but this could be the face of -- the way that we saw deals priced 10 or 15 years ago when you're not squeezing everything out of it. this is somewhere in the middle. >> the turnaround is stunning. thing into a profitable business, margins are looking better. you wonder if they're going to take the hotels that they own, sell them for immediate returns and post -- >> who does michael waldorf -- >> i am all for it. >> stephanie ruhle on "market makers" on hilton. watching hard time entertainment shows, but golden globe nominations are coming up. here are some highlights. nomination for best tv drama include "house of cards."
9:08 am
that program has broken again -- ground here. >> what is interesting about this, while my netflix -- well netflix has the rights to show it for a little while, they don't have the rights for the long while. the great work that they have done is showing up. >> the recent head by disney, "frozen," it was nominated for best animated film. they beat out "hunger games: catching fire" this past weekend. games"my kids to "hunger and it freaked them out. peeves ismy many pet box office numbers as a sign of success of a movie. it is such baloney. box office is a sign of marketing spend. >> movies have longer legs. >> some do, some don't.
9:09 am
they have spent every dime possible on "hunger games." we will see what happens with "hunger games" and what it means for lions gate. "frozen" looks like it will be a big hit. >> "breaking bad" i don't know if you are a fan, but warren buffett is dressed like walt. he tweeted that earlier out this year. the series finished in september. home -- our whole team are "breaking bad" fans and i have yet to watch the program. >> can warren buffett get any better?
9:10 am
he is about as clever as it gets and then -- >> and then he does something like this on twitter. >> solid. >> we are speaking more about movies. amc is going public. you can get a piece of the action. we will tell you about the plans to offer shares to loyal customers. randi zuckerberg weighs on stealthy etiquette after the president came under fire for at nelson mandela's memorial. stay "in the loop." ♪
9:11 am
9:12 am
9:13 am
is hosting 200 million moviegoers every year. they're going public. blockbuster time to invest in a movie theater with so many on-demand media options? sweeney.s paul
9:14 am
the golden globe nominations that we talked about tell a story. cards" fromuse of netflix that is being nominated and topping the charts. had moreers have never choices for high-quality, original programming. they no longer have to depend on the theatrical release. we have seen great original and -- great original programming on hbo and netflix. own a movie theater, you are dependent upon hollywood. it tends to be a volatile business, but the movie businesses hanging in there in terms of attendance over the last five years, despite the proliferation of other choices that consumers have. i looked at the transition
9:15 am
that theaters are going through in terms of capital spend at yours, a big shift into digital. where is amc on that scale of transferring their hard assets into digital and digital distribution? the theaters, particularly in north america, have undergone transformation towards digital. people in the home have a better experience for consuming video products, movies, and tv shows, theaters have to keep up. cycle for the industry and amc has done a pretty good job. these theaters are getting a return on that investment. consumers demand a better experience in the theater. in order to maintain attendance, orch has generally been flat down, it is better than most people forecast. to maintain attendance, they need to invest in their product. >> talk to me about the super
9:16 am
tickets that are being sold at amc. the hobbit, you can get , you can get digital downloads of the first "hobbit." these tickets cost up to $40. >> ticket -- theater operators recognize that movie attendance is flat. if they want to grow their tickets, they can pull prices. 3-d has been a big plus for them. they can charge a 30% premium for a 3-d ticket. some theaters are trying a super a dvd or bundle in download or special seating or food arrangements. it is designed to charge premium prices for that small piece of the theatrical movie going audience that will pay for it. on the margin, it is a slight positive, but it is not a big
9:17 am
mover for the industry. >> these guys have a ton of debt. 2.2 billion dollars in debt. that is not nothing. >> they have had quite a bit of debt historically. these are good cash flow businesses and generally speaking, they can support debt loads of three the fourth -- tda.e to four times of ebit of if hollywood has a bad summer season, or a bad full year of releases and attendance is down three or four percent, that hits the theater operators directly. they are dependent on the success of product coming out of hollywood. >> we can hope that "anchorman 2" doesn't stink. john malone may be scooping up more broadband. for europe'sn mind
9:18 am
second-largest cable company. are you responsible? we're going to tell you about the most overused words on lincoln profile. stay "in the loop." ♪
9:19 am
9:20 am
9:21 am
>> john malone is revising its bid to buy ziggo. a 30% stake owned by liberty already, but that -- they're looking to expand the footprint in that region. long way.as come a they will become part of the s&p 500. they will be replacing teradyne. facebook stock is up 86%. if you are looking to refresh
9:22 am
brand online,nal there are a few words you might not want to use. the 10 most overused buzzwords are responsible, strategic, and effective at the top of the list. >> i love that list. you hate seeing those words. they are used to replace creativity. >> if i am interviewing somebody for a job and they put responsible, i am going to challenge them on it. if you are passionate, save your passion. >> how about number nine, innovative. >> i don't want somebody innovative working for me. >> if you are using the word innovative, you are not innovative. >> unless you are talking about -- in the in this
9:23 am
terms of bloomberg west. you can catch that on bloomberg. >> we are a few minutes away from the opening bell. we have a top 10 trade you don't want to miss. keep it here on too." -- keep it here on "in the loop." ♪
9:24 am
9:25 am
9:26 am
>> welcome back. you are "in the loop." i am betty liu. >> i am cory johnson. >> we are on the markets with scarlet fu. that you see behind me is not updating properly. slightlyfutures are higher. retail sales rose more than anticipated. though you can see on the bond market. they are lower and yields are higher. gold prices are declining. the feeling is the set is leaning more towards scaling back its stimulus sometime early next year. we are back on the markets in 30
9:27 am
minutes. >> let's count down to the open. let's start with number 10 boeing. 61 upgraded boeing planes will start arriving in 2017. cisco's business was rough last quarter. the stock is trailing the s&p 500 for the fourth straight year. >> son edison, the developer of will energy products restructure its debt. they lowered its fourth-quarter outlook citing market weakness. jpmorgan, they may pay about bo
9:28 am
resolve u.s. investigations related 2 to the ponzi scheme. street firmsg wall that spent years fighting off claims brought on behalf of victims. >> samsung is saying bye-bye to foxconn. they're shipping off to vietnam trying to get lower wages and defending profit margin. vietnam will be making more than 40% of samsung's phones. they named a new ceo this week while this morning a gave up an outlook that trailed analyst estimates. the reason is delays in merchandise. inut its profit forecast september. its shares are down about 10% a share. >> twitter. redesigns toing member's profile. saidson with knowledge
9:29 am
they are seeking to deliver revenue growth in line with several -- i feel last month. >> siena, the maker of fiber- optic networks. it is a lot better than the $.39 a share a year ago. it is also going to transfer listing from the nasdaq to the new york stock exchange on december 23. >> facebook. they will join the s&p 500 index next week. straight --ed for they achieved for straight quarters of profitability. film worldwide holdings. -- hilton worldwide holdings. they're expected to start trading today. they're owned by blackstone and raised $2.4 billion in a record ipo. that is the biggest ever for a
9:30 am
hotel company. we will wait for the first trade for hiltons hotel. we have a call on the markets. i wonder bring in a chief strategist at morgan stanley -- stanley. adam, great to have you back. tell us about the materials call. that is interesting. >> what we did for our 2014 outlook is that -- say we have high oil but we do not want to buy energy stocks. we downgraded industrials that have outperformed. prices will continue, but chemicals -- will be't think it because demand is strong, it will be because of a fear of a supply constraint. that doesn't bode well for energy stocks. think they will continue to do well.
9:31 am
>> so much over play on gas. oil does not seem to be a problem at all. about fear from stuff in the middle east, and makes the oil price go out and, not because fundamentals and demand a strong, but because of supply fear. you are increasing your allocation in tech for a little bit. it is above where it is in the benchmark. >> yes. we are overrun that -- over recommendation for tech. >> how are you changing that call? >> we have specifics that matter for picking stocks but we do not have dispersion. when you make a bet, you have to make a bigger one. i don't think companies are going to hire a lot of people. i don't think they will spend a lot of capital on buildings and tools. they're going to invest in productivity. software is the best way to benefit.
9:32 am
>> that seems aggressive to me. sales -- i was just doing the work yesterday and there have been $3 billion of acquisitions in the last three years. i do not see a lot of bending in tech land. they'll be a difference between the hardware and the old tech. one stock we are recommending is ultimate software. they are gaining share in a faster growing part of the market. we are old tech sparring partners from decades. >> it has 100 pe. it is trading at three times -- it is a store growth. it fast-growing stocks that are
9:33 am
cheap underperform fast-growing stocks that are expensive. >> in a certain market. >> because why? >> if it is already cheap, the market is doubting its sustainability. >> if they are fast-growing, they should be expensive. >> you should be growing into that valuation over time. you can santa like it because you will miss out on the highfliers that do well. ask you cannot say that i don't like it because you will miss out on the highfliers that do well. there are companies that don't make money that would be great stocks. it is about, -- >> isn't that confusing? >> they do until they don't. well until they miss revenue versus expectation. that will be the key for the expense of growth straw -- stocks is can they deliver? if they can, they will get more
9:34 am
expensive. there will be a harsh moment someday, but it could be a valuation from 50, 100, 200% higher. >> you also have calls in health care. scarlet has been looking at the bearish case. scarlet has them looking at pfizer. here's the thing. a breakup probably won't happen until 2017. if it does happen, it is the equivalent of selling off the family silver. the remaining business lacks long-term revenue growth profits -- peer atent expert . dividend, igrow the think -- means really well.
9:35 am
all got expensive when bond yields were low. i don't think you can only buy fast federal stocks. i don't think you can only buy high-yielding stuff. pharma was attractive compared to staples. they have better achieve ability, lower payout ratios and equal dividends. it is a better risk reward in other parts of the market. there always has to be some market strategy. one way we are thinking about the fundamentals and portfolio manager. really more of a strategy call. >> stay with us. we are going to take a dive into one of your picks. we will be back with adam parker. announces itp, gm will stop making cars on one continent. more on that in a moment. -- stealthygaates
9:36 am
te continues. we're going to talk to randy zuckerman -- zuckerberg. ♪
9:37 am
9:38 am
9:39 am
>> welcome back. you are watching "in the loop." to look at one company adam parker likes. cardinal health. company? given all the changes that are going on. fore have had a big bet over two years in medical distribution. there are three big names there. cardinal is one that we made a bigger bet any portfolio on after they lost some share in early marketing. the business benefits -- they look like they have a reasonable
9:40 am
price. they will have more customers coming through the system, almost guaranteed by the health care laws. you are looking for places where you're confident about demand and confidently growth will be there. you look across the market and it is hard to see that. secondly, when you look at health care and you worry about reform and the changes, businesses that have tens of billions of revenue and two percent margin are not the first place the government starts. i probably start with drugs that cost 500 grand or other parts of the chain. i think you have more confidence in the growth trajectory than other parts of the market. they are doing a decent job of returning some of the money to shareholders. that is something people have been focused on. analyst has a pretty saying and view of it. the growth trajectory looks solid. . think it is pretty good
9:41 am
i don't worry about -- >> explain the deal. it was to provide a 10 year agreement to buy generic drugs. thing with these businesses, i can see owning all of them if they lose share to each other to walgreens or other things, the view is you have demand growth that is going to be solid. otherve lower risk than parts of the sector to fundamental outlook. you have reasonable valuation and returning to the shareholder as a strategist. those are attributes that i like. i cannot find that many other areas in the market. >> their revenue has shrunk in the last five quarters. you see this company contracting. >> they lost one or two larger customers which is why the stock went down. i think it was in late february or early march. the stock is done well because people think the five-year growth outlook is better.
9:42 am
we are always buying our dream today. of the stocks in this group, the big ones, all that we have had in our portfolio have outperformed. it is because people are catching on to the consistency that these business models have. can lose some business, but if you own two or three of them, you will be safer in case of share shift. overtime, these look like earnings growers in the low double-digit range and pretty consistent growth. that is hard to model across the market. tothat has to be a hard job look at the health-care sector and pick and choose the companies you think will survive and thrive with the affordable care act when doctors, hospitals, patients, they don't have any idea how this is going to play out. quantum-mental. we religiously believe in this.
9:43 am
i plan on spending my whole career doing that. what we do is look for stories that have an underpinning. what analysts like that these quantitative approaches we have also like. when they agree, the performance does quite well. that is our philosophy for investing. >> interesting stock pick there. i am amazed when i see things that have fundamental shifts when the sales are declining in the stock is going up. the key.s are one last point -- multiple expansion for the market has expanded a lot. it is not just tech. if you look across the broader market, there are a lot of stocks because market multiples expand because there is more
9:44 am
certainty in peoples minds about the growth trajectory. >> the recovering short sale. >> you are never going to recover. >> adam parker, good to see is mine. was added to the dictionary this year. there are some rules of engagement you need to know before you do a selfie. randi zuckerberg is joining us next. stay "in the loop." ♪
9:45 am
9:46 am
9:47 am
>> this is what an inappropriate selfie looks like. thanks for making us do this. this is a selfie we took with adam parkey. >> that is a selfie of the selfie. here.are at work we are not going to take any flak for the selfie.
9:48 am
unlike the president did with his. the european leaders have tried to laugh off the criticism, but this faux pas got us thinking on the program. with new social media as part of is professional lives, cory tweeting as i speak. >> and i supposed to be paying attention to the show? >> to help us sort this out is randi zuckerberg. she is the ceo and author of "dot complicated." are you surprised at how much flak the president and prime minister's got for this photo? >> on some hand i am a bit surprised, on the other hand, i am not. of thefie is the word year. it is a global phenomenon and it is really taking off in every
9:49 am
aspect of our lives. our incessant desire to autobiographical he portrayed -- autobiographically or tray every aspect of our lives. every aspect of our lives. there was this great presentation where it was said that if you are over the age of 30, using the camera is in the back of the phone but if you are under the age of 30, you know the cameras on the front of the phone. >> the startup was called photo booth. it's funny because the selfie has always been around. van gogh painted self-portraits. andy wall -- were all was a self photographer. it wasn't until the iphone 4 put in that front facing camera that it became a global phenomenon. has us mentioned, this
9:50 am
thinking. there is a i'm on how you are supposed -- gm on howa new paradi you are supposed to behave on social media. don'tse these do's and with social media? what i always say, i am a big fan of documenting an important moment with your eyes and heart, and not your phone. if you feel like photos or did not happen, you must document, take stock of the situation around you. is there something going on that is more important than myself. a few occasions to not take a selfie would be in light of the tragedy if you are posing in , romney's car wreck son on thanksgiving. if it is going to gross people out, no bodily fluids. over romantic public displays of
9:51 am
affection that are meant to be private. my number one, never while driving. you see a lot of people taking driving selfie's. that is a huge no-no. that third point you made about romantic pictures. there was a story, i don't know if you saw it's where there was a teacher in colorado, a substitute teacher, she posted a photo on facebook. , he put herwas hands on her chest. she thought it was funny. she put it on her facebook. but herfired for that, husband who was in the same photo and work to the same it.ol was not fired for they fired her because she took the ax -- the action to posted on her facebook and her husband was the bystander. complicated"e "dot
9:52 am
if i can use my own term. where is the responsibility of the school to educate their staff on social media? i don't pick it is fair to assume people understand the etiquette. is it fair to penalize just the inter or is it anyone who is the photo. in the case of president obama, he was not the one that posted the photo. what if you're out and you are out drinking and you do something embarrassing and somebody takes a picture of you? -- are youhe picture a call for that? -- at fault for that? >> there are two things going on, we live in a world where it is easy to go viral. we need to be hypervigilant about what we are doing at all times. alls almost as if we are many celebrities. the second thing we need to remember is your reputation --
9:53 am
>> randi zuckerberg, thank you so much. ♪
9:54 am
9:55 am
9:56 am
thet is 56 minutes past hour. we are "on the markets." i am scarlet fu. are a littlestocks lower. the s&p 500 is off by 1/5 of one percent. they posted the biggest decline in the month. thanl sales came in higher estimated. the federal reserve could be leaning towards trimming stimulus. the dollar is firmer. by moreces are falling than two percent. the big deal is in treasuries. yields have been steadily grinding higher.
9:57 am
we check in with fred russi. he says we will continue to see weakness in the tenure -- 10 year into 2014. we got some data this morning. retail sales, import prices along with jobless came -- claims. what does this do? >> the jobless claim numbers were worse than expected. i think there are seasonal adjustments they are paying -- there. i don't think it altered expectations for next week's fed meeting. there's about a 50% chance that they will maybe taper. more likely they will announce that they plan on tapering in january or march. >> if you see short-term weaknesses in treasuries, how would you play that in futures markets? >> i don't expect a major selloff. st. louis president
9:58 am
bullard noticed that -- noted -- percent got up to in september, there were concerns because there was signs of economic slowing almost right away. they don't want berates tissue higher in the near term. modest weakness. i would look to maybe march put spread or in a brokerage account, a tlt. having a limited risk, but you would participate and have downside exposure if treasury bond prices move lower and yields move higher. >> you are looking at the 3% threshold because of what james bullard has said. >> it would not be a similar move, the yield on the 10 year right now is 2.8 six percent. a move to three percent be a
9:59 am
significant move, but not a significant move that we have seen in spring and summer. next terms of the meeting week, the announcement will probably come on the second day. what you expect by way of communication from the federal reserve? >> there is a lot of uncertainty. i don't think anyone knows. the most likely scenario, nobody knows for sure, but they're going to start to taper in 2014. we will give the markets important -- forward guidance and we will remain data dependent. it will give investors an opportunity to adjust their expectations and to also watch the numbers in early 2014. >> final question, what is the next data point that will be important? >> there is not much. there is the ppi next week before the fed meeting. keyation numbers, the
10:00 am
catalyst for the rest of the year will be the meeting and the post meeting statement wednesday afternoon. >> thank you so much. fred reffy. we are back in 30 minutes. "market >> from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> wall street watchdog -- senator elizabeth warren on the volcker rule, breaking up the big banks, and how she would pay for her plan to raise social security benefits. it is a bloomberg exclusive. theking into hilton -- chain goes public. we speak with the ceo. ronassy campaign -- burgundy reinvents the way movies are marketed. will another film ever be rolled

132 Views

info Stream Only

Uploaded by TV Archive on