tv In the Loop With Betty Liu Bloomberg December 19, 2013 8:00am-10:01am EST
>> i and cory johnson. >> it is a historic day. record highs after bank started tapering the bond buying program by $10 billion, extended the timeline for zero interest rates. the company founded to sell track shoes, earnings reported from nike. a follow-on public offering for facebook or the social networking company and ceo mark zuckerberg will be selling 70 million shares. most of them belong to zuckerberg himself. pay money will be used to taxes on stock options. what do we read into this? clancy is selling $2 billion worth of stock. -- >> he is selling $2 billion
worth of stock. has happened to facebook shares over the last year. >> should investors be worried? >> when the ducks are clacking, feed them. >> in washington, it is official , the federal reserve will begin winding down its stimulus program. >> peter cook and the economics editor joining us now. newsere there for the conference asking questions. what do you make of this ecision? classes defense seems on track.
the economy is doing better. he justified the move on that basis. he thought as well about the budget deal in washington and how that gave perhaps a little bit more of a justification for making the move right now. he did thisasked if because he was about to leave and he wants to be there when the wind down begins, he said no . i do not totally buy that. i am under the believe he did want to own this to some extent and was there right now to be able to do that yesterday. just breathing room to janet yellen. it takes a little bit of the pressure off her. even if he did not mean to do it, that is what he has created here and that perhaps stood out to me the most. not sure i totally bought his answer there. the economy really improving? class it seems to be improving. wheree seen time before
we have had a lot of jobs creation. it comes along at a good time for the fed right now there is underlying question of them is, is the overall creation improving. the forecast says it is. might as well get it started right now. telling me it does not matter whether they do it in december or march and it does not matter given how much they are actually a pretty eerie it almost nothing. is sofor this but fascinating. we have spent probably the better half of the last half of 2013 reading over what tapering would be like and here, we have done it, and it is not that big of a deal. >> it is not to the markets. it is a testament to what they have done since september. they screwed up the markets over the summer, where they did not do anything expected, they managed to convince people tapering has tightened. thing.art of the whole
you look at the long-range forecast for interest rates. betweenely moved tuesday the fed meeting and today. did not move at all in the short term. people are buying the lower for longer. earlieru were saying you do not buy it and the timing of the exit is also why ben bernanke decided to her. you think janet yellen has banking to do for him? >> she does. i think more than just this meeting. it was striking to me when he was asked, does janet yellen support these specific decisions, and how emphatic he was there is no daylight between the two of them. he consulted her directly on this. was nominated to become the fed chairman. the message to the market is that he was not going to get a surprise. we are on the same page. that was an important message. this buys her a little more time it takes a little more pressure off her and sent a message to
markets, steady as she goes. inflation back on the conversation. we the it and with the overall numbers. question a lot of people are concerned that would continue. the fed is expressing more concern about it, that disinflation. it is probably more psychological. go backll think it will up your look at what they had been saying for meeting after meeting. the committee anticipates inflation will move back to its target. now they say they are monitoring inflation development closely to make sure it goes back up to the target. you can see that in the. charts. figure out what it means. the point is the difference between what they said there in september, and look at how those. come down in december. they think interest rates are
going to be lower. >> i am looking at what was the just now. lower docs mean what? >> that they take interest rates will be lower for longer. you see it reflected in the inflation forecast. it will be lower in the future. >> i love your chart. >> get some silicon valley guys to figure this out. click that is interesting to see the change in language. wonder why they didn't say this in the first place. it might ease some concerns in the first place on tapering. the bigger issue for all of us is you guys are great jesters. why did you not give ben bernanke advice on his entire yesterday? class we were discussing that when he came into the room. we were on set and too polite to say it. was in the room, so i will blame him. >> it is your fault.
qwest this man is not weren't all that much about his fashion. i was right there in the front row and i noticed the ensemble he had on and i felt it was a little funereal. the light was headed to a funeral. getought we were going to bad news when he first sat down. ben bernanke will not be known for his fashion sense. he will be known for a whole lot of other eggs. >> when you have a great side, it is an on their comparison. >> he was a college professor. perhaps he will go back and dress the part again. >> thank you very much. keep watching bloomberg tv. be talking to a senator from delaware, who held the first senate hearing on bitcoin. >> moving and shaking, a television series. a story will be based on a book
by nick hilton, hatching twitter, a true story of money and power and friendship and betrayal area lions gate is the reduction company. the model for all of this is the social games, the movie about start -- >> there is a great excerpt, a wonderful story about the early days of twitter. of silicon valley's, where the foundation myth is a myth and the notion that jack dorsey founded twitter is baloney. .e explores the drama behind it >> there is a lot of drama in the very beginning. and comingurning back and doors you leaving and startingck to a spoke, square, and coming back as ceo, forcing buddies to start the company with him, it is a
wonderful tale and i can see how hollywood got very dated. i will .weet out the link i do not want to take sales away from nick. it is cool stuff. is probably a great movie and all the big companies we have talked about. apple and microsoft. drama inre is so much business in making stuff and selling it for less than it cost. i thought it was well written. got slammed in the new yorker. but the new yorker is wrong. it is day nine of 12 days of it -- bit coin. what have you got from us, matt miller?
>> i have been using it on the weekends. for the purposes of programming, and folk business days of bitcoin. i have been fascinated by all the regulation around bitcoin. it has really heated up the last with the bodyslam that china put on the currency yesterday. when i bought it, we were just over 800. we had come down from 1200. one person probably paid $1200 for it and then we came back down. back up to 1000 for a moment. last night, at some point, bitcoin traded for $339. so, it has been a wild ride. i have done a lot of things of this. including buying a plane ticket to spain. i was thinking yesterday --
1200. >> i wasd thinking, where can i go over christmas? i will take some time off. map andd to pick out a look to see where i could spend my good point. china is an obvious ways where it will be terribly difficult here not only did they say that they cannot take it anymore, but in some dingyup room, a whole bunch of third- party companies that help you pay with bitcoin, and they said, do not ever do that again. when they say that, you probably spend closely. you cannot any there. i put this map together of the places in green where you can and it is accepted, in red, where definitely do not go, and yellow is find of on the right is going ont what in norway and denver and
germany. >> i had to europe and much every time i have vacation i'm. him of my country's to go, like theydy, denmark norway, are kind of undecided. >> is that oktoberfest? >> i would probably be able to spend my bitcoin there. denmark said to be free to spend it, but much like john -- china wants control over everything, countries like germany wants to tax everything. you can use bitcoin but they do not count it as a currency. it is a commodity. >> so the places you definitely cannot go to use bitcoin, where? you definitely, cannot go. if you want to buy or sell it in scandinavia or germany, you will probably have to charge. in the u.s. -- >> how much percent?
>> 17%. qwest for every transaction of bitcoin in germany, you are paying a 17% tax. quest for the purchase or sale of it. booth. set up a class for using it, not paying that tax? >> it is one of the duty of bitcoin. in the u.s., i put yellow on the get abecause you have to money transact or's license in 47 states and it is very expensive. class thank you very much. the 12 days of bitcoin. more great stories ahead for you. what every investor in silicon valley is searching for. the next big thing. the outlook in 2014 with venture capitalists. an early commercial for nike's air jordan said it has got to be the shoes. the decades later, it is still setting that case.
i♪ ♪ generation,e me, my nike, air jordan's. those commercials from back in the day when michael jordan -- in some ways, michael made no -- nike made michael jordan. >> when those sneakers started to come out, they were huge. >> now they have 11 basketball sneakers in the pipeline. including three special christmas edition shoes. kobe bryant, and this is bloomberg businessweek. we did ebert and to nike's
secret strategy. nike's approach is unique. tell me about your story. >> yes. they make somewhere around 175 million shoes per year. each one, they create a sense of scarcity. .hey prime the market a consumer feels it is unique and a different shoe. it is not like the 1980's. it is about the weird shoe, the colorful shoe. a stream of releases. >> i find this interesting about nike. of dollarst millions in endorsements. it is not unusual for companies to do this. with sports well -- sportswear, why does it work so well with companies like that? class athletes are the aspirational figures they are because of what they do with their bodies.
they are becoming more of a cultural icon. ma do it better than anybody. what they have done with michael jordan and the shoe, it has become a symbiotic thing. when the patent came out. they are amazing shoes. even when they make a misstep, they have got to go for this out -- athlete. they do it better than anybody. bring in the musicians to freshen it up, i wish they had stuck with kanye. i think it would be more interesting if he were still doing it. but i think they do it better than anybody and they should continue to follow that strategy. >> one of my favorite business books ever was "just do it here: -- just do it." the message of nike is very important as a polled -- part of their culture. is that unique? >> it is unique. they continue to focus on the idea of pushing people and
pushing to greatness. body, you are an athlete. pushing harder and going further. even if you have a technology, it is about driving yourself. tracking himself nuts personal biometrics. their brand has been about pushing it. among the advertising industry, getting in people who were not pushy enough. they have a focus on edge and pushing it and really pursuing greatness. >> they come out with six different sneakers. do they risk consuming -- confusing consumers putting it out there? >> yes. these are not 12-year-old kids. they are not going to buy three pairs of shoes in december. they need sneaker heads in shoes.to buy the
along -- as long as the demand is there, it is great. the question is if there is a point of diminishing returns. >> they keep raising the prices on the sneakers. onright, and leaving enough the table for collectors to sell on the secondary market makes money and primes the engine and keeps it going. qwest i wrote a story about ken griffey jr. and his ad campaign. it was very uncomfortable for him. a very high-minded campaign. griffey for president. i think it was 1996. i wonder, it is interesting they have tied themselves so closely to the athletes. athletes with trouble to kobe and tiger woods. how are they steered clear? >> i do not think they have been completely clear. he lance armstrong took everyone for a ride.
qwest good morning. the hour,inutes past which means bloomberg television is on the markets. scarlett has your check of how we are shaping up. class i like the headline out of when newspaper. the fed begins tapering and the world is not and. yesterday, the s&p 500 find to a record high. a little bit of a pullback at the open. on the tapering
announcement. nikkei 225 gained almost two percent. treasures holding onto their losses. that means yield on the 10 year, around a two-week high right now. we are getting jobless strains in just a couple of minutes. also, a firmer dollar right now. the dollar index at 8064. dip below $1200 an ounce. inflation still clearly a challenge with the fed challenging that level. >> thank you. off the redspinning lobster brand. the announcement is part of a plan the company says will enhance shareholder value. growth inans to spend the olive garden. blamesaid it is not to for a fire in a garage last month. reviewed saideing while there was a fire where the
vehicle is plugged in, the car itself was not part of that fire. change the way does business. recommendations that offered oversight of the government spying. it would still be allowed to collect u.s. phone records and spy on other governments and their citizens. class a look at this issue, 2014 holds for tech. class nice to see you. >> across the coast to be together did today. this is one of the most interesting years for venture capital that i've ever seen. class it is right up there. a bubble and not reminiscent. only in a certain number of select companies. been a year of recovery.
we have come out of the worst fall and maybe eight or 10 years since the bubble actually burst. and we arelly down just starting to come back. we have this panel the other day that i organized. generally agree the industry is back in balance, by and large. we are having a healthy year on ipos. i read somewhere recently -- >> healthy the last 10. class for sure since the 1999 and 2000 bubble. it will definitely beat 2007. >> one of the issues that has plagued silicon valley this year is what we just talked about with the nsa. it was one of the issues they talked about here at i'm curious to hear, from your point of view, how disturbing hasn't been to hear the information now about how nsa is gathering data and how private companies are
not in collusion but they actually have to comply with some of these standards. will itof an effect have? class it is very disturbing. all the recommendations they are articulating and the discussions being had with the president are completely appropriate. we cannot find ourselves in a position where most entrepreneurial and successful companies we have in the valley are being forced to do bad things and things that will compromise consumers and the citizens, just because of an arcane and out of date government policy. >> as long as that surveillance program is under scrutiny, it will hurt business. >> it is. -- you seen companies name it, not buying american products in china and elsewhere. in theiry explicit
last earnings release that their business fell off a cliff in china. >> because of the nsa. you are hearing that from private companies as well? qwest yes. isuse a cisco itself, that one of the companies getting it wrong so far this year? >> i made a comment that cisco has a dilemma of trying to protect their product line, which is basically a proprietary platform they use to run all of the features that make up networking there is a new development and new innovation coming. disrupts the proprietary platforms of cisco. that they have been experimenting with. if they disrupt their own product line, revenue goes down. is -- they are in the horns of a dilemma.
on one second. we have got news on jobs numbers. jobless claims out there is 379,000. a bit of a spike up from what we saw. a spike up from what economists had expected. three to 36,000. i know mike has got more on jobs claims numbers. life this is particularly bad news. jobless claim is the highest since march. the fed said yesterday the labor market was getting better. this means it is the holiday season. it is very hard to estimate the seasonal effects on the claims numbers. the labor department itself came out and said, do not pay attention to the week to week numbers. look at this four-week moving average. it is not nearly as bad as week to week numbers. there is a specific number we want to start paying attention
to. , they havehe people extended benefits because they cannot find a job. be kicked off the rolls starting in january. it will be a hard time for 1.2 million people. we will keep an eye on the number as we get closer to the end of the year. >> thank you. i know jobs is something you have been focused on. we have gone to washington. >> i am a little bit more optimistic for 2014. the green shoot that happened with a budget deal. it eliminates a small bit of uncertainty that every business across the board, large and small, complaints about. we are nowhere near where we need to be. >> in terms of jobs. >> yes.
everybody i talked to in the valley, including in stamford and all around, say the step on a budget deal was a good thing, but we need to follow it up with a good things, like immigration reform. think it is a possibility in 2000 14. nothing happened in the really short term. zuckerberg is very fixated on that. is that thereading president can actually get behind it. >> there are a have just a does this stuff
really matter to business? >> it really does. you probably know this better than anybody. and to anybody right now the price for really good talent is skyrocketing. one of the ways to fix that is to allow best and brightest educated in our universities, both undergrad and graduate, stay on board. that is back to the start up, which has gotten sidelined. >> sit tight with us. we will look at the national football league getting into the head of the football league. as tough as getting a ticket to the game. one of the biggest holiday gifts this season. look at what it takes to make it so special. ♪
>> we want to stay with the economy. joining in, the always colorful and wonderful tom keene of bloomberg surveillance. tom, we are near friday. a little happier. >> i am getting over tapering yesterday. i thought it was going to be a bore fest. and all of a sudden of the sudden -- >> there is some news here. great perspective. >> taking that in, we get our budget deal.
the chairman of the president council of economic advisers, jacob, was very constructive. merry poppins, speaking of the new mrs. banks movie. it is like when the met -- the weathervane turns on the house and the winds change. youuld like to know what think, but a shift in the wind. class it was remarkable. i think all ryan did a terrific job of reaching out to patty murray. class you will give chairman ryan all the credit. >> no. it takes two to tango in that situation. they sat down like mature adults representing constituencies and the american people at large. and they acted like adults. class and john boehner drew them back on against the -- the tea
party. class a small but significant step forward in the sense that it proves that if people do the way they're supposed to end the way congress was intended to function, that some things could continue to get done. i love the way he said on meet the press about how we decided to sit down and get to know each other. class i share with you the thatn that is discouraging there are discouraging things about increasing the problems in our economy. we talked to mom and the other day and the gdp would not be that great, although, we will be spending more money on things like military contractors and defense, and spending less money on unemployment. income gaps by the budget deal and that is disturbing to me. class i listened to that and
that is not the best thing that could happen. the real answer is, let's create a path to get the economic growth going beyond the modest numbers right now. i will say it this way. the economy wants to grow. the government wants to continue it can.ery day >> one of the things mom and also said that they would be it would be key to see any credibility with what the fed action is. he did not know at the time, business investment. he may have heard a whisper somewhere. business investment. what happened to business .nvestment after will be key class no question about it. newhat about this discussion about inflation? >> it is very tangible. no question. the framework is simple. deflation serious
issues, which is a grievous issue. can you have less inflation and yet have a robust economy at the canyon have the illusion brought on by inflation to generate the experience? do you need inflation different to be happier? >> i think so. a bullish have environment. we were just talking before you came that this has been one of many -- years in recent memory in the venture capital industry going back to 2000. >> coming up, a new debate over the nfl. you can watch the oakland raiders in oakland. saying you do not have a constitutional right to watch football. kitchen appliances used to be a
>> we love talking about sports and the business of sports on this program. is an issue coming up with the federal communications commission where they are about to rule on whether or not local -- broadcasters, national and local, are allowed to black out if the stadiums are not filled up. collects the oakland raiders, a team i care about, one of my two local teams, and one of my reasons i have been a 49ers fan is that i cannot watch raiders games when they are not sold out in my town, even though taxes
.re being paid for collects meal is on the phone with us, the former president of cbs sports. also joining us is one who is on the board for directv. he is pretty close to the issue. >> a big deal with the nfl. >> a huge part of their business here and how do you think the cutss going to go here? they may list a blackout but i do not think that is the right move. i think it is the politically correct move. i know there are politicians asking for it. where watching sports on television, notwithstanding the tax issue, is not a constitutionally protected freedom. the nfl could not televise its games and no one can compel them
to do so. i think they have legitimate reasons to ask for the continuation of the blackout rule. >> it is all in an effort to make things fair for consumers, to make things fair for football fans. this is really affecting football games. >> it does not affect that many games. the information from 2011 is it only affected watch her teams. i'm curious as to what happened this year. to watcht have a right sports on television. the league has a serious concern about maintaining attendance and maintaining the revenue screen -- stream. college football is also having a problem. they are losing attendance at their games because of hdtv and the comfort of watching at home. the league wants to its -- protect its home game. >> you know the business really
well as a result of being on the port of directv and deciding what the value of a broadcast is. directv is paying more money than anyone is ever paid for certain cable rights. what is the value? i wonder from our fan standpoint. the business of the nfl is not growing on some level because they are not showing the gains to everybody. has that happened? >> what i can talk about is there is absolutely no question about the it is one of the greatest assets directv can have. directv, that has strong discipline. there are certain situations where directv has refused to pay the price and the network has been asking them to carry their games.
directv's position is that we do and espn.ox the good games are available on those. they are disciplined. play.t to we balance the shareholder and wealth creation with the trade- off. >> great to see you. >> neil, thank you as well. big number,'s staying in sports, $50,000, what the best tables will cost when the nfl opens. eight pop-ups take house. -- here in super bowl .ake -- week it will be in a hotel in times square. there will be pro football players hanging around exhibits from the hall of fame. here's what you get.
food but no alcohol. >> you can have alcohol you just have to bring it yourself. >> four tickets to the game and you will get a parking pass. that is really valuable. >> you do not want to be jiving and drinking. that is why you get the parking pass. i do not know. coming up, whole foods is taking a stand with a popular brand of greek yogurt. an interesting changing their relationship with a lot of whattant brands because of goes into nothing food. we will talk about that a little bit.
yogurt. that is whole foods, a grocery chain parting ways next year. the company says there are so many brands of greek yogurts, it has to be selective with what it carries. whole foods is actually dropping chobani because it uses milk from cows whose feed comes from genetically engineered crops. 56 minutes past the hour. bloomberg television is on the markets. we hit the record highs in the dow after the fed finally taper to $10 billion in its monthly program. futures just a little bit lower. we sought jobs claims a few moments ago spiking a little bit for the past week. out -- we are on the markets again in 30 minutes. class coming up, red lobster. we will have more on that scoop next. bitcoin. is that an issue for national security?
>> 30 minutes to the opening bell. with betty the loop" liu. the countdown begins right now. >> welcome back. here is what we are working on now. the s&p starts at a record high after the said decided to slow the pace of bond purchases and maintain zero interest rates. year.warren buffett's big he had a good one. and we will talk about the future of bitcoin. >> the casual dining industry has been struggling. red lobster, the seafood chain
thee have been looking into breakup. was'm not sure there romance involved in this particular partnership. why redobster -- lobster in a complex red lobster has not been doing as well as other chains. -- >> why red lobster? >> red lobster has not been doing as well. jarden's declining sales have -- declining sales have been more consistent. there were other chains they were partnered with that were doing better. it is either going to sell it off or spin it. it has not decided it is -- it has not decided. people are going fast casual
and now they are staying away from fast food, is that if? >> that is part of it. npdt some sales trends from group this morning that shows the average check at casual dining establishments is part of it. the average check has been actually going up for the consistently, but traffic is going down. they are not necessarily getting people through the door. it is surprising that you would see that. were sayingwe earlier about inflation, there you have it. higher ticket, inflation. >> at the morning call this executives darden are talking about promotions. the endless shrimp promotion and the price of shrimp going up, that means lower margins. it partly has to do with the
volatility in seafood prices. in that is competition area and you have other places offering seafood promotions of various types also. but the thing is, darden is not just offering lobster, but slowing the growth of its other chains. is not going to expand with all of garden. it is going to slow the growth of longhorn and have modest growth in specialty business. all across the board it is tightening up. >> thank you, julie hyman. ♪ this hour.shaking lowe's chairman jonathan tisch, the home of new york's power breakfast at the loews regency next right nearby reopens month. it has been undergoing a massive renovation, $100 million. it is the most expensive for the
hotel chain since the 1970s. breakfast at the region has been a must for new york movers and shakers. jonathan tisch told me he had a hand in almost every detail of this renovation. lows will be able to raise roommates -- room rates by up to 25% because of this renovation. and they are almost sold out for super bowl weekend. records that the regency is .ne of the classics some of the early investors, much of it was plotted out over breakfast at the regency. it was a powerbroker place. i'm sure it will be when it reopens. >> it is interesting, because i had a chance to talk with jonathan earlier this weekend. all, he's not worried that the people who left over the last year because of these renovations, that they are not going to come back. he says they will come back.
been goingakfast has on for decades. >> i know tom keene a huge customer there. on occasion. a small presence. >> yes. what is interesting is he walked me through the renovation. they are almost there. we were in one of the rooms that was finished, and true to form, is 30 picked out -- this plus hotels. he picked every single item in that room, from the lampshade to the picture over the bed. personally tests the mattresses out. this is hands-on when it comes to hotels. >> usually that means someone who's involved with their business is a good thing. >> yes. i will see you at the power breakfast. >> is all about the power breakfast. or at least, the power. >> it's almost time for christmas. vita mix blender's have been a
>> that is incredible growth. >> that is one way to make confetti. >> that is incredible growth in that business. the blunders are expensive, and then more expensive. joshua green doing to us, our national correspondent in d.c. this company has been around for almost 100 years doing the same thing, making blenders. and then just in the last four or five years, the company's growth has exploded. that has been the result of three trends. one is the movement to organic foods. the second is the interest the americans have taken in these high-end cooking shows where they use blenders to make fancy
dishes. but the real driver has been the great american smoothie boom. the mania for smoothies and juices that has swept the country over the last few years. >> i admit i have been swept by that smoothie boom at home as well, josh. vita mixi don't have a blender that cost about $500. how do they get people to pay for that? >> it is an interesting challenge. you can go to the store and buy a blender for $50. it is difficult to convince people that they ought to pony up $500, $700 for a blender. ,hey have demonstrators hundreds of them. people who will go out to old foods or cosco and blend up food and try to get you hooked right there. -- over to whole foods or cosco and land of food and try to get you hooked right there. is main thing is that it tough enough for a rubik's cube,
if you wanted to blend one up. industrya term the uses. they say a vita mix smoothie has a silky her mouth feel and a thinner this custody -- silky mouth feel and a thinner viscosity. anything from grinding coffee to oring bread or ice cream, making smoothies or what have you. they are trying to convince the consumer that it can replace a lot of appliances in the kitchen and it's not just a blender. a lot of people are listening and responding by buying one. >> who can afford these things? is there a new demographic driving this? >> there is. when the company for started making blenders in 1937, the only people who bought blenders or thought about blenders were women. but in the last few years, men have entered the kitchen. men arethat is because
taking a more active role as dad and you can use these things to whip up healthy soups and smoothies for your kids. the other thing is men are big fans of these cooking shows like iron chef. they want to get into the kitchen and master these adventurous cuisines. one of the tools you need is a high-end blender. the company says its sales are now up almost 40% men and not just women. >> that might be dangerous, though, to try to be an iron chef in your own home kitchen. thank you so much, josh green. entire story, dig up the latest edition of bloomberg news on stands and your ipad tomorrow. coming up up, the made in the usa campaign today. we will tell you how much it will cost you to buy the company's patriotic products now. and we have a break down of the richest men in america every second, minute, hour, day this year, in case you are curious. ♪
>> it has been a great year for war and. yes at $11 billion to his fortune. about more than money. it always has been. i sat down with him to find out what he would like it to be. my kids could do nothing. them havell three of incted to spend every day enormous effort helping other people. that makes me feel really good. i was lucky. i was born in the united states. the odds were 30 to 40 against that. i had some lucky jeans. i was born at the right time. if i had been born thousands of years ago i would have been some animals lunch. i cannot run very fast or climb trees.
there is so much chance in how we enter the world. to make surented that your children and your grandchildren would be grounded. >> how you came out of the willing has nothing to do what kind of person you are. you decide what kind of person you are going to be. there may be an item of work in your life and it may be like fighting uphill all the time. but in my eyes, we are all created equal. but we do not all have equal opportunity by a long shot. , they work every day to try to even up the score. in that time, he has made about $20,000 while he has been talking. matt miller joins us with more on his performance. i would like to make that. second, 1.4er million dollars per hour, just unbelievable. he is worth 11.6 billion dollars
to date, and that is after giving five percent of his shares to charity every july. that is a lot of money. he would probably be the biggest gainer of the year had it not even -- been for that. how is this relative to others? >> mark zuckerberg is the biggest gainer this year. he is up about $15 billion this year. that is for the shape -- the sale of his shares coming up, but that is for tax reasons. sheldon adelson is up about $14 billion. bill gates and jeff bezos and then warren buffett. these are the five. >> whenever i hear buffett speak , i'm just so amazed. i hear the midwestern, optimistic humility from a guy who's only public display of wealth is his private jet. >> very much so. however, don't be deceived. he is a shrewd investor. if you look at all of the people
who are of the most, they are the people who control their industry. buffett controls berkshire hathaway. he still -- bill gates still has about 20% of his fortune in microsoft. jeff bezos owns about one quarter of amazon. these are the fabulously wealthy and you don't get to be there unless you own huge swaths of the big companies. >> he is a very shrewd businessman, but the way he lives is also the way he hires. the way he lives and treat money, he wants to see that as well in the ceo's he hires. he doesn't hire ceo's who are flashy or doing it for the money. he hires ceo's who are doing it for the same as him. >> for the value of the dollar and making sure you're not milking companies. xd likes making money, not spending money. -- >> he likes making money, not spending money. >> exactly. matt g gmail your --
shares from mark zuckerberg are a big part of that offering. 3.9entire words is what -- billion dollars. zuckerberg says he selling in part to pay big tax bills. with jack mock, exploring opportunities for his own company in china. at that -- apple is going all- american. taking the new mac pro computer to be built in texas. one -- $100 million in the made in america initiative. >> the cynical view of this is they are trying to turn lemons into lemonade here. because they have been criticized so roundly for having laborers in asia. >> they make a lot of money and they have high gross margins for their product. if they can figure out how to do it here instead of shipping it
>> welcome back. you are "in the loop" and i'm betty liu. >> scarlet fu has the latest on futures in the last moments before the opening bell. >> the taper is here and the global stock market loves it. the stock market climbed to a record high yesterday. retrieving a little bit this morning. an unexpected increase in jobless claims the cause. as treasuries are holding onto their losses, that means yields are higher. the 10 year a three-month high. the dollar still firming up, especially against the yen. and gold futures off by 2.7%.
again on the markets once in 30 minutes. >> thank you. let's count down to the open. these are the only traits you need to know about today. let's start with number 10, astrazeneca. the biopharmaceutical firm buying bristol-myers. to four .1 billion dollars. astrazeneca a possible new ceo has been racing to revive businesses by inking deals to restock its product portfolio. >> and number nine, target. about 40 million debit and credit card numbers may have been lead from target. law enforcement is investigating. online customers are not affected by the breach. >> let's go to number eight. hershey is gobbling up the chinese candy maker, golden monkey. looking to gain a stronger hold in china, which is one of the world fastest-growing markets for sweets. >> ge, general electric, the
company is predicting faster growth at its manufacturing movement -- units. earnings at the industrial division will grow at a double- digit pace in 2014. >> and number six, irc interactive. to tightenr is going things up around his dating service, match.com. it will be separated into its own business that will include the dating center as well as tutor.com and david byrne. >> -- daily burn. will spin off red lobster and forgo acquisitions of additional brands for the foreseeable future. >> number four, tesla motors. regulators say the model as and the charging system did not cause a fire in a california
garage last month. shares have fallen over 20% from the peak in september partly on that news. oracle third-quarter sales, interesting growth from the company, up two percent over the -- year-over-year. really seeing great benefit from the acquisition results announced last night. >> number two, right aid, the drugstore operator. posting earnings on continued sales growth. but shares are down in response to cutting the forecast. to date.still up >> number one, nike, the biggest isrts company in the world stepping up its sneaker strategy and has 11 new basketball shoes coming out the next 30 days. including a signature christmas edition. >> those were ugly shoes. did you see those?
?id you see them >> it depends on your opinion. [opening bell] is the president of trading advantage. i will ask you about the fed, not footwear. like, what kind of do we do? >> i think we will give a little bit back today. --t professional traders there are many of your viewers that are active in the markets. there was a knee-jerk reaction when it was announced it was lower. the s&p dropped about 10 points in three seconds. spentat being said, it the entire afternoon rallying in a big way. most traders were a little surprise, but certainly got on board when the market started rallying. today, i think we will give a little bit back. we will have to see how it plays out. to watch things like nike today.
and not necessarily talk about tapering. we are kind of, in the same situation. it would get into next year and bad economics come out, they will not do any more tapering. in fact, they may do more buying. nothing as far as i'm concerned has really changed. it will be nice to see more economic data come out on the good side, because i could help these markets. >> what else do people see on the floor when they were talking about what came out of the fed yesterday? >> one of the things that everybody kind of hung their hat on was that bernanke was not going to -- peter cook said this on your show, i think. that bernanke was not going to leave without doing this. for so long waiting for the tapering to happen and on his -- and bernanke way out, and so that is what people were talking about. there was no way it was not going to happen.
bernanke has little time left. >> think you, larry. from the trade to the call on markets. i want to bring in alan young, global equity strategist. -- call, we should have if should have expected the fed tapering. he did. and now the rally feels like it has already kicked in. you think it is going to take in even more so toward the end of the year, which is only a few days away. >> i have to give credit where credit is due. i did not expect the s&p. our chief economist has been calling for a taper for a while. >> the house view then. >> yes. this is good for stocks. number one, the uncertainty is removed. there is relief there. number two, it is a validation of the recovery. you have a respected body feeling that the economy is strong enough to remove stimulus. that is a good thing. guidancey, the forward was very dovish. they have been saying that when unemployment gets to 6.5% and we
are at seven already. now they are saying that an implement has to fall well below that. they also pointed to inflation still below. these are signals that tapering is not tightening and it will likely be 18 to 24 months before they start raising. that was a dovish message. you put it together and i think we've seen the removal of one of the biggest headwinds to this bull market. >> you have the bullet -- the one of thee on markets. what is a? -- what is it? >> people are now taking physical delivery of copper. the biggest reason is that global economic growth is picking up an intensifying. u.s. is live in the way and europe is following. chinese growth is still effective to do sit -- to exceed the developed world. >> do you have that view? >> know, we don't.
we have been underweight in materials. a bit ofsee quite commodity volatility. i like the global growth reflation argument. in --er looking at it looking at emerging market equities. but today, it has been a real loser. >> what about dividend paying stocks e >> i think dividend stocks is sort of yesterday's trade. the one fly in the ointment with this fed outlook is that we will see an upward drift in interest rates. we are focused more on cyclicals. the taper was a validation for cyclicals. that is where we want to be. we like discretionary, industrial, health care. >> coming up, bitcoin controversy. ,e will hear from tom carper who held the first senate hearing on the virtual currency. and one of the richest people
>> the senate homeland security committee held the first ever bitcoin hearing last month. senator tom carper of delaware joins us with peter cook. >> there is a host of issues you're dealing with. i want to talk to you about that going first of all. what is your take away after your first hearing about it , the future ofin bitcoin, and what washington is doing about it e >> -- about it? hearing to help
educate me and my colleagues, the members of the committee that showed up. a lot of people are still coming into town, so we should not be too surprised. we had a host of witnesses that included the fbi, treasury, the justice community, the department of justice. they have been focused on this for a wild, while a lot of us have been ignorant of it. idea of athat the virtual currency has a lot of promise. the promise for a lot of that, we know that. but also the potential to do a lot of good to enhance commerce and the flow of goods and services, and bring value to consumers, too. their advice was to, let's look at the bad. there is money laundering, child , all of thatdrugs is out there. but there is the internet. when the internet was young,
people said they were bad things if we had the internet. it turns out those that things are in part facilitated by the internet, but there's is so much more good that the internet makes possible. sure thatrd to make we can down the bad and that the good is able to flourish. >> how do you tamp down the bad? is there a federal regulatory role that needs to be put in place? there are questions about who actually regulates the coin. is it truly a concern -- a currency or is it more a security? >> we met last month to gather this information from a lot of different government agencies will stop we reached out across -- different government agencies. we reached out across the government and said, what do we need, regulation? is this good or bad? we will get a report next month and i will give us a path forward. in the meantime, this is not going away.
virtual currencies are not going away. we have to figure out how to let them exist to do a lot more good than bad. and then figure out how to deal with the bad. on thet now, no verdict legislation or washington stepping in. >> right. >> we got word yesterday from max baucus, the senate -- the chairman of the senate finance committee. the president is going to nominate him to be the next ambassador to china. you are on the finance committee. your reaction to that and what does it mean for finance reform in the next -- tax reform in the next year? >> i told them i'm putting a hold on his nomination. we have too much to do. health care, and reversing rates on medicare, and not to mention taxes. we are full and the president nominates him to be the ambassador to china, which is a
great job and he will do a terrific job at it, but it does not help. get anything to done on a good day in washington. but to have -- he has worked so hard to have common ground with orrin hatch. and then be pulled out and sent off to china. they have got to be sitting back and saying that corporate tax reform and other reforms are not going to happen anytime soon. >> nominations do not go quickly. even of our colleagues. there will be some time to get things done. can accelerate our efforts to do that. was passed in the senate yesterday.
what is the temporary deal? are you just kicking the can down the road? doesn't push it further away? >> the key is the reductions. we need to do three things, one, .ntitlement reforms we need tax reform that lowers the rates to make us competitive with the rest of the world. get better to results for less money. those are the things we need to do. and callspatty murray to get a deal. -- paul to get a deal. i hope is that we can build on that. >> what does that due to the debt ceiling? >> this is not the finish line. this is the end of the beginning, not the end. >> people are talking about the
bipartisan agreement in congress right now, but the february 7 deadline is coming up. no deal there. aren't we looking at another crisis over that? >> my hope is that my colleagues have decided that we don't need anymore fiscal cliff or shutdowns. there is something good that came out of this discussion. patty murray and paul ryan got to know each other pretty well. communication and compromise, and they showed a great william -- willingness to communicate effectively. they also need to be able to make some compromises. the glass is half full. we cannot just give up. >> the president says you are not going to negotiate over the debt ceiling going forward. is that right? are democrats going to be willing to offer something in terms of compromise? >> entitlement reform saves money. tax reform raises revenues. we will focus on everything we do to see how we get a better
result for less money. i will focus on that as we approach the next budget. >> janet yellen confirmation tomorrow? >> two thumbs up. >> tomorrow or friday? x tomorrow. -- >> tomorrow. >> back to you. >> good stuff with senator tom carper. coming up, russian president vladimir putin pardoned his top photo, it a jailed -- a jailed oil tycoon. more on this surprising christmas-y change of heart. ♪
significant this pardon is. you had mentioned -- you remember the time when he was held at gunpoint and jailed. this is a significant moment in russia. unlikes almost not people remembering where they were when president kennedy was shot. not in the sense that the russians at large knew where they were, but journalists who were covering food and cost rise 's rise.mir putin yet already been president. this was a big shocker. he had been in the office for this manee years and been under pressure. a lot of people said he was on the wrong side of vladimir putin. they said he should get out of russia and he said, no, i'm going to stay here. he got on -- and he began a
political move. to keep if you want your money under vladimir putin, then you have to stay out of politics. everybody said you should get out of town and he said no. 2003, i got a call that he was arrested at gunpoint at the airport. i was floored. i am just floored now that president putin said he is prepared to pardon him. >> why now? does this mean something that is happening now? >> it is very interesting that it is happening now. almost as extraordinary as president putin pardoning him is that he has to ask to be pardoned, which presupposes his guilt. he spent the last decade in jail in the far east of russia in
terrible conditions saying, "i'm not guilty." this is putin coming after me for political reasons. thought he was going to get out as early as next year. this is pretty extraordinary for that reason. president putin said it is a cut his mother is ill and he's asked to be released on you manager in ground. there is a lot of bad blood between russia and the west right now. some people will see this as an opportunity for president prudent to try to -- for president prudent to try to improve relations. >> he is in jail for 10 years. do we know what his conditions have been like? >> it has not been great. russian jails are no good place to be. i have been to them as a journalist. tuberculosis rates are really high. he has been ok. he has really changed over this decade. we have seen him appear in court from time to time while he was in jail.
he certainly grade. he has been. he is now 50. he was not the vibrant individual he was. but generally speaking, his health is ok. does that mean he's going to come back and now some kind of meaningful opposition to president prudent -- president vladimir putin as he might have worried he would in the past? it has been so long. you very much. that does it for us on "in the on bloombergere television. we are on the market next. ♪
>> it is 56 minutes past the hour, and that means bloomberg television is on the market. i'm scarlet fu. it is a day after the fed capering announcement and 30 minutes into the start of u.s. trading. he s&p 500 giving back some of its gains yesterday. utilities and industrials falling the most. -- joblessed jobs rate did not help as well. the dollar is getting a big pop, currently at a two-week high versus the euro. stronger dollar typically means lower commodity prices. it is now time for futures and focus and we are focused on gold. $1200tures dipped below
per ounce for the first time since june. phillip street bowl, a senior commodities broker says gold has a lot further to fall. he joins me now. we saw gold dipped below $1200, but it has gone back up above that level. clearly, that is support for now. >> it will be data-driven. i think the fed will continue to taper at about $5 billion per month going out to 2014. you will see gold do this stair step ladder down. with the data coming out, whatever you get this weaker data, you will see these pops up. but i think the downward trend will continue and continue to strengthen. most traders will look at dumping their gold holdings for years and. target of think the $1050 will be reasonable. >> will there be a bull market rally in between their?
>> because of the data coming out, if we do see some unexpected mrs. on the jobless numbers and you also see be -- some unexpected misses on the jobless data numbers and you also see other things converging, we may. they willke indicated begin to let off the gas pedal. ofand tapering because positive signs, particularly here in the u.s. you do like one metal, and that is copper. why? >> if you look at the supply and demand structure, supplies continuing to climb. indonesia controls one of the largest copper mine. they will shut off exports coming january 1. and manufacturing will continue to expand in china, the u.s., and the eurozone.
copper prices have held in there pretty well. they are backing off just attached here today. i think you could have a tight stop on it down to $3.17. but i think copper will be the metal that shines through 2014. >> how much do we look at copper tied to the u.s. economy, particularly housing and auto sales? >> definitely auto sales have been picking up. they have been picking up a little bit better in the eurozone. that will reflect latin him and palladian -- latin -- platinum and palladium. kind -- that kind of confidence with builders, then you will see copper really take off. >> thank you so much for today's futures in focus. we are on the markets once again in 30 minutes. market makers is up next. ♪
live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> guilty. the jury has spoken. michael steinberg is guilty of insider trading. we will tell you next as the governor cracks down on steve cohan's firm. we will shuffle the deck with experts and see if it will be all races in 2014 for the gambling business. social secondary. facebook ceo mark zuckerberg says the company will put 70 million shares up for sale. what will they use all that though for? welcome to "market makers." i am a very lucky stephanie ruhle. a christmas tree has been delivered right next to me. >> the grinch. i am the grinch.