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tv   Bloomberg  Bloomberg  December 12, 2013 7:00pm-8:01pm EST

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from bloomberg world headquarters in new york, this is "bottom line." the intersection of business and economics of a main street perspective. the house of representatives passage a budget deal as speaker boehner wishes back against opposition. on fcc votes to end the ban cell phone calls in flight. we look at the massive pr blitz for the film "anchorman 2." to our viewers here in united states and those of you who are joining us from around the world, welcome. we have full coverage of the stocks and stories that are making headlines tonight. su keenan has reaction to the
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strongest retail sales were ordered and i've month. -- five months. we will get to kathleen in just a moment. the house is given sleeping bipartisan approval to a budget bill pat -- backed by both president obama, his democratic allies, and a large majority of republicans. the measure was sent to the senate where republicans are more skeptical. let's go to kathleen hunter in washington. what does this vote mean? >> this big bipartisan vote favors this to budget agreement that was worked out between a republican budget committee chairman in the house, paul ryan , and a democrat in the senate. it is a dramatic departure from what we saw during the government shutdown. i think it shows that there is a different feeling in washington, particularly among house republicans. not want to be seen as
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intransigent when it comes to spending issues, they want to be seen as willing to compromise even if it is a all scale agreement. -- withall of the greek all of the gridlock in washington, should we be surprised that this path? >> it is surprising in some ways. in spite of the gridlock that led to the shutdown in october. when you dive deeper into the nuts and bolts of the deal, it becomes less surprising. with manyoes not deal of the issues facing government entities in congress. it is silent on entitlements which is the biggest contributor to the deficit and it doesn't do anything about changing the tax code or closing tax loopholes. a few years ago, it look like they were closely bipartisan agreement on that stop it once -- impact of the sequester it tinkers around the edges. it does not do much to address long-term spending concerns. it is a smaller deal than most
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people envisioned in october. >> what is next for the legislation? should be expect rubble in the senate? >> now goes to the senate where a lot of senate republicans have been keeping their powder dry in terms of their opinions on it. we're seeing a number of senate republicans who have primary challenges, people like mitch mcconnell, keeping quiet on what their opinion is of this budget deal. meanwhile, their primary have been strongly calling for them to oppose this deal. there are a few republican senators of -- with primary challenges to our between a rock and a hard place. it will be interesting to see what happens in the senate where they need to ask the votes to pass this. senate majority leader harry reid seems pretty confident that he will have the votes to pass it. one of my colleagues talk to dick durbin after that and he said, don't take anything for
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granted. they have not locked down the votes yet. >> kathleen hunter joining us tonight from washington. thank you. as congress prepares to pass its first partisan budget in four years, a bloomberg national poll finds americans believe that by a margin of 64%, the lawmakers will actually pull it off. that will avoid a government shutdown. the confidence and there. when asked if the white house and congress would reach a larger budget agreement that includes revisions to the tax code, 80% answered "unlikely." 78% of respondents believe that the nation's capital in 2014 will grow. a majority of respondents say that they have faith that the government that was the first to put a man on the moon can still conceive and execute big ideas. another boat in washington today. the fcc voted on a rule that would allow in-flight phone calls full top that means the
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person next to you on your flight may soon be chatting on the phone. all the way across the country. bloomberg's megan hughes has been following that vote. she has the details. the measure byed a 3-2 vote. that is a first step. it opens it up to public comment. you can bet that the commissioner will get an earful. >> it is bad enough being herded like cattle onto these lanes without having to listen to were city its have conversations on their cell phones. ots havesh idi conversations on their cell phones. i fear what i would do if my cutlery. no!! those are just messages for my family. [laughter] you can imagine what i got from others around the country. fcc lifts the
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ban, the department of transportation will be looking at this. anthony fox said that you will work on a rule on voice calling. congress is also considering legislation to ban passengers for making calls. the fcc is all about getting serious about limiting regulation. this one dates back to the 1990's and does not serve a purpose. >> without this proposal, you would not be able to text, e- mail, and surf the web. the department of transportation is going to address the behavioral issues. we are cutting away the technological underbrush on behalf of consumers and competition. >> keep in mind that the calls we are talking about would go through specialized onboard equipment, not through cell towers. it would be up to the airlines to decide what they allow. the comments during this comment
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period are already coming in. southwest ceo says he does not favor in-flight calls and does not see it happening. areoming up, more americans heading to the stores this holiday. what is pushing retail sales to the highest level in five months? we will take a look next.
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>> welcome back. this is "bottom line." it is streaming on your tablet, phone, and bloomberg.com. let's show you how the equity markets finished the session for today. stocks fell for a third day sending the s&p 500 to a one- month low. it improves -- improving economic data fostered speculation that the fed would cut eight stimulus acted for next week. the dow was down.
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by 104 point. and the nasdaq composite was 23998.ve point let's get you the stories behind the numbers. o 30 to 998 -- 3998. investors are digesting the exuberance of 2013. speaking of exuberance check out this hotel chain. it shares rose to 2179. they soared above the initial public offering price in their old -- first day of trading. sales and raising shares. this is according to the company.
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another standout stock, lulu , is also undergoing management changes. they named a new ceo as the founders that down as chairman after backlash from his comments to bloomberg on women's bodies that do not fit the company's pants. facebook was driving after an it will enterhat the s&p 500 index next week. twitter has gained this week on strong evidence of advertising. microsoft ceo search continues. you will have more on that. appears closegan to a settlement as well. >> according to people familiar with the situation, they are thinking of the qualcomm ceo as
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candidates to replace steve ballmer. that is according to people close to the situation. thewhile, five years after off,st of bernie mad jpmorgan chase, the banker for , they are now close to resolving a justice department probe. that is according to people close to the matter. litigation. lot of you read about madoff in the papers. we have to get this behind us. that is our job. want to get this behind us. >> that was jamie dimon speaking at a conference about resolving the madoff situation. a person briefed on the matter says that the $2 billion court
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deal could be reached by the yours and. ask for more on retail, i am joined by the chief economist at the credit union national association. welcome back to bottom line and good to see you again. been getting so many mixed messages this year about the state of the u.s. consumer. what did today's retail numbers tell us? >> the good news is that they are twice what expectations were for november. aboutk given what we know consumers, it is a good signal that we will start out not only with a decent holiday season, but strong consumer spending going into 2014. >> a few weeks ago, the credit union national association released their 14th annual holiday spending survey. the forecast is for a in overall holiday spending increased by consumers of 3.5%-four percent over a year ago.
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have you seen anything since the survey was released that would alter that forecast? >> i have not. this morning's retail numbers suggest that we may be on the high end of that. the survey we did, these are the strongest results we have had since 2000 x. -- 2006. i have not seen anything since then. there has been a change in the mix of spending, a little bit less going on at brick-and- mortar stores and a little more online. spending seems quite strong, at least 4.0%. quite a few mention the traditional brick-and-mortar stores. they have not been very well during this holiday shopping season, but online and catalog sales are on the rise. how worried should the brick- and-mortar speed and what might this -- brick-and-mortar stores be and what might this mean for mall construction? >> i do not know of one holiday season have that much change.
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they should be concerned about the long-term effects. we are in the middle of a long- term shift in the way that business is done. it is further evidence that they will have to make adjustments. >> what type of adjustments? >> they will have to plan to have less volume going through their stores. they will have to learn techniques in order to be able to bring people into their stores and by the spite the fact that goods are readily available online. it is a big game changer. speakingo being -- with the chief economist at the credit union national association. -- 100re 100 ready union million credit union members in the united states. how important is the pent-up consumer demand? demand -- weoan are having the strongest year this year since 2005. that is way before the recession. it is largely fueled by new car purchases.
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the pent-up demand is pretty strong. during the recession, an awful lot of people lost their jobs. and even -- an even larger portion of the population was concerned that they were next. people who kept their jobs cut back on their spending substantially. as an example of the automobile car sales million in did not happen in the last few years through the end of 2012. they would have happened had there not been a recession. it will not all happen right away. but that of a strong tail behind car sales. the same need -- the same thing happens for lots of other consumer organizations. we think consumers now are -- since the government in washington seems to be getting back together in terms of budget and he said -- shut down, that is not going to be a source of discontinuity for the consumer anymore. you think the consumer might spend more. >> you mentioned what is going on in washington.
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i don't know if there's trepidation in your voice, but we are sure that your fingers are crossed. theumers who are spending, search is being led by a wealthier households -- the search is being led by wealthier households. what about other americans and their discretionary income? >> it has been flat. therefore, what we think may turn a little bit in the first half of next year is the job market. get 200,000ack to jobs a month going forward or more into the first part of 2014. emily believe i may 2014, we will get levels of employment to back to where they were before the recession. that will boost disposable income of lower income consumers. it will not be fantastic, but it is moving in the right direction. >> a lot of third-quarter growth was the result of inventory restocking. are you seeing continued evidence of that this quarter? will seeot think we
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more inventory. it means that the fourth quarter, despite this surge in probably will not be a strong in the third quarter. we will get rid of these excess inventories with strong spending here in the fourth quarter. it puts us in good shape moving into 2014. ask how old is holiday shopping season pan out? what are your expectations? we will have a 3.5- 4.0% growth. we have a slightly shortened season. there was some concern early on that we would not have a good easy. -- season. this will be the strong as we have had since 2007. since then, we have had some pretty weak years. we're are back to normal just about. >> the chief economist at the credit union national association joining us from washington. always a pleasure to get your perspective. things for your time. continues, thee
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obama administration is counting on some big-name celebrities to promote health exchange enrollment. we will tell you which stars are helping the president out next. ♪
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>> after the rocky rollout of healthcare.gov, the obama administration is asking insurers to be lenient with customers who missed the december 20 for -- who missed the december 23 enrollment deadline. they are asking for treatment to be honored for patient to go to out-of-network doctors. some celebrities are coming out in an attempt to boost enrollment. obamacare advocates are kicking off a new campaign with the help of celebrities like the sexiest
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man alive, adam levine. julianna goldman has details from washington. >> the white houses counting on the sexiest man alive to spice up obamacare. today marks the push of a an effort to enlist celebrities to get young healthy americans to sign up through the exchanges. we know that 360 5000 people enrolled in obamacare through november. but the white house has not told us what percentage of that are the so-called junk, invincible -- so-called young invincibles . their biggest fear is that the botched rollout will keep the young and healthy away and result in a less diverse risk full which will result in higher premiums. than a dozen state exchanges and groups allied with the white house are trying to create some buzz around obamacare and make sure that the
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first impression is not the lasting impression. they are targeting young people, latinos, and mothers. some of these celebrities they are using include adam levine, people's sexiest man alive. ali,are also using tatiana kal penn, and others. they are using social media and videos. there is no obama impersonator rapping about the virtues of signing up for health care. they will do a live streaming event in january. they want to make 100 million internet contacts for open enrollment closes. not believe that millions of people will go out and enroll from one tweak, but it allows them to begin a substantive conversation about what is available. back to you. >> coming up, north korea's state tv confirms that kim yong -- kim kim jong wound
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jong un's uncle has been executed. the sure to check out the new edition of "bloomberg is this week." businessweek." we will also take a look at the sochi olympic games. because ofrotests gay rights issues. " bottom line" continues in just a moment. ♪
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>> welcome back to this second half hour of "bottom line." let's check where the markets finish today as we hit the bottom of the hour. the stock market fell to its lowest level in a month. investors worried that the ends might be nearing for the federal reserve costs of work for the economy. -- federal reserve's support for the economy. the s&p 500 was pushed almost 25% higher this year. the dow jones industrial average
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was falling as well. it was down 2/3 of a percent. the nasdaq composite index was falling as well. let's check some of the top stories that we are following for you at this hour. the soft -- south african government official who had a translator providing sign language says that he was not a professional interpreter. the controversy surrounding the deafroup after death -- advocates said that his hand gestures were meaningless. he was said that hallucinating at the time and angels were entering the stadium. there are talks for the european union. president bash the president of ukraine intends to sign a trade and cooperation agreement. people are worried that the
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president could ask and -- instead sign a russian agreement. russia has put heavy pressure on ukraine to join it's packed. the block effectively re-creates the soviet union. nasa is scrambling to figure out what went wrong with a key cooling unit on the international a station. one of two identical cooling unit shut down yesterday. the system uses ammonia to dissipate heat from onboard equipment. the crewontrol ordered to turn off some experiments and other noncritical equipment. the suspect valve today, that was replaced by spacewalking astronauts three years ago. software repair would be the easiest option. a spacewalk would be the most complicated. when this man is not running his wi-fi business, he is building
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and launching rockets in the california desert. the rockets cost tens of thousands of dollars to make and he needs faa approval before launching them. we hear about the connection between rockets hearing and teering and being an entrepreneur. >> i am the chairman and founder. amateur rocketry is my passion. certainly, i love seeing big rockets go up in the air with lots of noise. space race and reaching the moon has some fascination for rocketry. bigger, faster, higher. it can fly to about 30,000 feet. compared to what nasa flies, these are very much toys. we are focused on high density and high capacity wi-fi.
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we tackle the toughest wi-fi problems in the industry. rocketry allows my inner engineer to come out. is the downt part part. figuring out how to recover the rockets. that is very similar to running a business. you have to know how your supply chain works, and how your demand creation works. you have to have all the right pieces of the business functioning. in the same way, you have to think a list of play about how putting a project in the air will work. for me, rocketry has become a family affair. we all support the hobby in one way or another. it is great to see the kids link their first rockets. it is worth all of the effort.
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>> let's now look at the top stories in asia. north korea's official news outlet reports that kim jong- un's uncle has been executed. we have the details. >> hi there mark. this happens and it is the highest profile execution since power a yearhe ago. by thele was grabbed arms and removed from a meeting. he was stripped of all his leadership post. ofwas photo shopped out images and videos that were released from that meeting. yesterday, after a hearing, he was executed immediately. according to government or boards, he admitted to planning to overthrow the east a.
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-- the state. >> john kerry is expected in asia. what are the details of his trip? traveling to vietnam and then the philippines to focus on the region cost growing partnership with the united states. according to the associated press, kerry will visit ho chi minh city and hanoi. will chi minh city, he focus on expanding trade and cooperation and dedication. will focusdelta, he on the potential for u.s. and vietnamese cooperation on areas like climate change. and hanoi, he will meet with senior officials. it is unclear he'll be meeting with the president just yet. then he heads to the philippines where he will also meet with senior leaders. he is expected to visit a region that was one of the hardest areas at was hit by typhoon haiyan.
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this is a rescheduled trip. he was scheduled to go there earlier, but because of whether he was not able to do so. he promised to reschedule the trip. that are of asia growing importance to the united states. >> coming up, we look at the new and often bizarre ways to promote a movie, including a broadcast journalism school in boston named after ron burgundy. stay classy, san diego. the selling of "anchorman 2 was anchorman 2 is-- next. ♪
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x bloomberg entertainment news, 12 years is lave and "american hustle" led the golden globes nominations. amc is preparing an ipo. hollywood'socus on latest efforts to get you to buy tickets and the new models for making money in the movie business.
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an example of this new recipe for success, you may have noticed ron argan the has been everywhere lately. -- burgundy has been everywhere lately. grobart week's sam looks at whether the old campaign is working -- bold campaign is working. >> a movie that came out nine years ago and earned a respectable, but not extraordinary $95 million, is about to spawn a sequel that could be the comedy hit of the holidays even. >> that is without a doubt the dumbest thing i have ever heard. "anchorman" was wicked funny and became a classic. >> i dig it. >> i don't know if this movie is any good because i haven't seen it yet, but it is a marketing juggernaut. it has been a year and a half since the movie was announced
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and there's been a museum ahibit, tv commercials, mobile game, a cameo, and even renamed a college. thing,ie-ins are no new but this is taking things to a whole new level. >> this is ron burgundy reporting for espn. will ferrell and adam mckay are no stranger to social media. dier site sunny -- funny or makes $30 million a year. ron burgundy is a character that came -- comes across one thing comes past decade -- across once a decade. you can put ron burgundy in the real world and we love it. we love that there is an ice cream flavor named after him. there is a reason we are not all , mall copl blart doughnuts right now.
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see thisxpect to strategy attached two other movies. it does not work unless you have the goods. i don't know how to put this by -- >> i am kind of a big deal. up, athletes against the discrimination. some of the biggest names in sports are defying russia's vladimir putin. that story when "bloomberg bottom line" television continue ♪
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it's on's addition of sportfolio, a venture capitalist bought the golden state team for a record price. he is trying to create winners on and off the court. he also discusses lands for a new waterfront arena in san francisco. sportfolio, at 9:30 p.m. tonight.
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the winter olympics in sochi russia are about 1.5 months away. activists are continuing to defy vladimir pruden and his government's anti-gay laws. the law was approved by the russian parliament in june. it prohibits propaganda in support of nontraditional sexual relationships. haveore on the protest, we the founder and executive director of athlete allied. welcome to bottom line. gay, but you chose to stand with and support members of the gay community. what led you to this activism? it started for you back in college. >> i found it athlete allied -- three years ago. in college, i had friends who were personally affected by the homophobic language of the
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locker room. my senior year in college, i did an interview about why i am an out.and why i was speaking i got thousands of e-mails from closeted athletes across the country. hearing their voices and their stories made me realize that if a wrestler can make that kind of impact for being an ally to the lgbt community, if i could get a professional athlete or an olympic athlete to talk about the value of sports and speak out on behalf of the lgbt community, that would change the world. group started a campaign that is taken from the olympic charter and deals with, ironically enough, nondiscrimination. are you angry that the international olympic kitty matey -- international olympic committee is ignoring part of its own charter? \'s laws are antithetical to what the olympic movement is about. discrimination of any kind is incompatible with the olympic movement. it is unfortunate reality.
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as someone who loves sports and is a member of the athletic community, we have a responsibility to make people aware of it. ioc boarday the approved a letter reminding athletes to refrain from any protest or political gestures during the games. they also cited the olympic that no kinds of demonstrations or political or racial propaganda is omitted in any olympic site, then you -- or venue. are you encouraging athletes to protest? >> we chose principle six because of that role. by citing one of the charters of the olympic movement, we hope that an athlete is able to talk about their support of the only big movement and as a byproduct, speak out against unfair laws. we hope that we are not seen as political or as a demonstration. i am very much aware that
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athletes are there to compete at a couples lifelong goals. for me, it is about creating a movement of people who are standing up and speaking out and hopefully when the games arrive, there will be an athlete who wants to speak out. i am not in a position to ask an athlete to do that. >> let's talk about the sponsorship. gamble,'s, procter & they are looking to promote their brands. they did not think they would be in the middle of a political human rights protest. billions of dollars at stake. what is it that your group would like to see these sponsors do? sponsorsd like to see be explicit about their commitment to human rights. i understand the business side. i understand that being a top sponsor of the olympics is not only something that affects these games, but future games. it is not just about sochi. it is about all of the games to come. ofcannot ignore the fact what is happening to the lgbt
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community in russia. i think a corporate sponsor have a platform and an ability to let lgbt views in russia know that it is ok to be gay. they will not be discriminated against, and there are people in this world that care for them and said to them. it would be really easy on behalf of these corporations to at least make a statement about that or help support the lgbt community in their outrage. >> you've talked about future sporting events. showed world bodies like the ioc taking gay rights into consideration when they are awarding sporting events? should take all forms of human rights into consideration when they award these events full top -- award these events. you can say that a company should not host the games unless they have its dollar -- unless they have a stellar human rights record. you can also make the case that the ideals of what the olympics stand for this is an opportunity
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to change hearts and minds in a place where we otherwise couldn't. >> you think that is what de t ocqueville had in mind? >> probably not. but we have a possibility to make a difference in russia and support the lgbt community. i would like to see the ioc have greater consideration and where they chose -- in where they choose the host countries. >> hudson taylor, the founder of athlete ally joining me in studio. coming up, a shark tank. "hot shots" is next. stick around. ♪
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>> that is a look at the futures market. bloomberg brings you a market check at 26 and 56 at each hour after the trading day. we have a preview. su keenan standing by. we heard from the house earlier today and now the senate faces a self-imposed deadline to produce a budget that could replace automatics ending cuts set to start next month. that vote is expected next week. the senate finance committee is holding a session to vote on nominations.
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and the labor department releases the consumer price index for november. that is at 8:30 a.m. washington time. harryt interviews -- reid. su keenan, what else is going on? >> are you feeling lucky? mauro's powerball drawing could be the second biggest lotto in history. it is $400 million and climbing. the odds ofk down winning. astronomically low as they may be. radioshack, they got a lifeline, an $800 million loan that gives him three years to restore profits. will this turn around the store? the government is close to resting its case in on insider trading file. . former portfolio manager
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one of the government's star witnesses concluded testimony after nine days. you know if i win the lottery, it was nice knowing you. i will not be coming back. shots," somer "hot of the most compelling images of the day. sharks want some christmas spirit too. madrid zoothe aquarium set up a nativity scene in their taint. eight sharks circled zoo workers as they set up jesus mary and joseph and the three kings. as for what the sharks may be wishing for this christmas, the zoo director said that they wish to find mates. the zoo was hoping to breed it's sharks. the faces you see in these some of hongs are
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kong's latest celebrities. parents are eager to give their a competitive edge in college exams. the top tutors could make as much as $2 million per year. in japan, i man broke his own world record for running 100 meters on all fours. he finished the course in 15 seconds. the 30-year-old has been training for a decade. moves studied how primates from zoos and books. he tries to move on all fours in his everyday life. must make going to the bathroom complicated. get the latest headlines on bloomberg radio and streaming on your tablet and on bloomberg.com. that does it for this edition of "bottom line. out i'm mark crumpton reporting
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from new york. i will see you tomorrow night.

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