Response to the better than expected gdp number. And Indira Lakshmanan on president obamas final News Conference of 2014. We will get all of you in a moment. First, some of the tales from the News Conference. The wideranging q a session sagging an essay, popularity, and a forward look for the u. S. Economy. 2014 can be a breakthrough year for america. Detail, we know theres a lot more that we will have to do to restore opportunity and growth for every american. That will require some action. We have a reporter roundtable on the final News Conference. Talevoined by margaret indira. Laxman secretary kerry has been working toward a deal on Nuclear Weapons with iran. Will this turn into a final agreement . What is the chances that they deadline . The this is the best something the president referred to when he was referred to about this iran nuclear deal, which is meant to curtail what they say is a peaceful program. Iran claims it is only for civilian and medical research. The u. S. , israel, and european allies concern are concerned that they are pursuing a nuclear weapon. The dealeed upon is a way to put safeguards in place and make sure iran does not break out and go for a nuclear weapon. At the same time, it will give them some sanctions relief. One of the key things obama was talking about was Going Forward into the next year and testing the deal out. All of washington is talking about whether new sanctions come a which were introduced in the senate yesterday, would be the best way to pressure iran to to pressure iran. He made a case for diplomacy as an alternative to a military strike that may become necessary if iran were to try to recover the deal. One of the things that the president was discussing, what was going on with the senate is week with 26 members, 13 democrats and republicans, saying they might back more sanctions. This in the middle of negotiations led by secretary of state kerry. Heres what the president had to say. We now have a structure in which we can have a serious conversation to see, is it possible for iran to get right with the International Community in a verifiable fashion . Confidence that any Peaceful Nuclear program to beave is not going westernized in a way that threatens us or allies in the region . Israel as the wildcard here. And the netanyahu government have some problems with this deal. They have expressed very strongly the feeling that the administration, secretary kerry in particular, went for two week of a deal. Deal. Weak of a what was agreed to in this interim agreement is that iran can continue to enrich at low levels for civilian energy. What we will have to see Going Forward is what kind of additional safeguards can be put in place. Israel is key. They are have not taken off the table the possibility to use military force if they felt iran was that the verge of getting a nuclear weapon. That is one of the things the president is worried about. Any deal that might cause israel to go forward with the strike. He is afraid that sections might cause that to happen. Margaret, we spoke earlier news prior to the conference. One of the issues was. One of the issues was. Care. It seems that changes are being made Going Forward. Tell us about that. What happens on january 1 is the biggest domestic hurdle that the president has to clear. There were so many problems with the botched rollout of the website. What they are concerned now is whether the new policies will actually work on january 1. And what about the people who had policies canceled . There are as many as 500,000 americans who will not have insurance beginning january 1 because of the canceled policies under obamacare. At thee president did last moment, the white house said, we will lift that mandate. We will give them a yearlong pass if the policies were canceled. This is something they held off against doing and now feel they need to do at the last minute. To ensure some sort of consistency during the transition. The president asked what he thought his biggest mistake was he immediately went to the health care low rollout. Whenere is no doubt that it came to the health care rollout, even though i was meeting every other week or every three weeks with folks and emphasizing how important it was that consumers had a great experience, the fact is that did not happen in the first month. The first six weeks. T allway that was a except the bull. Since im in charge, we screwed up. The president was trying to put a positive spin on some of the domestic agenda this year. , the spoke earlier frustrating part was some of the things he spoke about in his state of youth the Union Address last january, they did not come to pass. The reason was congressional roadblocks. Somebody things that he wanted to do and has not been able to get done. Heres the shortlist. Gun control, minimum wage, fending off the sequester. Government shut down and fighting over the debt ceiling that was the last place he wanted to go. The nsa controversy has created an ongoing country headache for him. He can take some credit for some positive trends. The economy gdp numbers. The fact that we will not be on the and in the white house trying to get a last deal minute deal between the white house and president. Are we seeing the same frustration on the Foreign Policy side . I wanted to say that domestic problems, particularly healthcare. Gov rollout, have overshadowed what are some congressmans on the Foreign Policy side. They might be temporary. It is possible that as we go into 2014, some of them might be falling apart. Lets not forget that the initiation got the iran deal. This is the first time there is deal. Een a negotiated theyalso cut the deal that pulled out of a hat, a way to get chemical weapons neutralized thanut of syria rather having to do a military strike. They cut a deal with karzai for Legal Protections of u. S. Soldiers. And john kerry got an agreement from the israelis and palestinians to reenter peace talks. The proof will be in the pudding oft year, but there are lots things they can accomplish. Speaking of next year, 2014, particularly on the democratic side because the resident was asked pointedly about his polling numbers it seems that he is becoming very unpopular among the American People do the democrats that are running for reelection see mr. Obama as a sort of liability on the campaign trail . Bucks some are concerned about that. You see it on two fronts. Hissee actively bucking request on the sanctions. You see it on the Affordable Care act. Democrats are now holding their breath waiting to see what happens on january 1 and whether this is something they want to say yeah, we were a part of this, or not. There are concerns that his year and his last status as a lame duck may hobble them going into 2014. It is a problem many second term president s face. White house correspondent Margaret Talev and Foreign Policy correspondent indira joining us from washington. Ladies, thank you so much. Coming up, facebook prices a second offering of shares just ahead of the holiday week. We will look at what it means when bottom line continues in just a moment. Welcome back to my this is bottom line on bloomberg television. Equityhow you how the markets finished the session for friday, december 20. Stocks rose, sending the s p to its biggest weekly gain since july. Boostedst confidence in the u. S. Economy. The Broader Market index was up eight points, almost 0. 5 . The dow was up 42 to 16 to two to one. 16221. Story behind the the numbers. Su keenan is standing by in the newsroom with the details. Good evening mark. The last full trading week of the year. We have fresh records at the close. According to one strategist, the market is feeling somewhat confident. Ceo says the recovery is on even. Uneven. There are still great opportunities across the country but it is still very fleeting. Something opens up and closes again. It is truly right place, right time. Is the right place for some of these stocks. Red hat surged 14 as the Software Company raised its forecast. Oracles agreement to buy re sponsys brought their stock up 40 . Carmax plunged. Remember the ipo of facebook . The stock is more than double this year. Ceo Mark Zuckerberg is selling shares to help pay taxes. Came out with an offering worth tree . 9 million. 3. 9 billion. The news he lped pushers up five percent. A total of six banks were involved. Shares moved up higher, five percent on dealnews. Brandsew york fashion has agreed to a 1. 2 billion takeover. And jones pharmaceuticals raised eight percent. Thatare buying a Company Develops drugs to treat Rare Diseases and conditions. Tores up 130 for the year date. Su keenan, thank you. Coming up, investors in blackberry were race foreign were braced for an earnings report. Coming up next. Like very is blackberry is trying to make a comeback. They announced a deal with foxconn of taiwan to manufacture the devices. This comes after a disappointing earnings report. Towford, welcome back bottom line. Great to be here. Lets start with the Fourth Quarter loss. It 4. 4 billion dollars. Loss, john chen says that they have a good chance of turning a profit in 26. 2016. In blackberry threw a party in 2013 and nobody came. Start. T out to an early it looked like they were going to get some interest. They just were not able to sustain that interest. 1. 1 million biker units in the quarter that is not much more than they shipped in the First Quarter they were shipping the device. You compare that to nokia, who ,as been shipping mumia devices they are now up to 8. 8 million a quarter. They are not moving in the right direction. That is why they did the foxconn deal. Crawford, but very has 3. 2 billion in cash. Ry has 3. 2 billion in cash. Will that help . They need to get out of a lot of the heavy capitalintensive businesses. In canada isces not sustainable. Foxconn allows them away to lose the hardware business down to a lower basis where they dont have to have the same property plant and capacity. This could be a way to elegantly wind down the hardware business. This partnership with foxconn , will it help blackberry cut production spending . This will help them spend less on production spending and focus where they need to focus their assets, which is on develop moreprises secure ways to message and communicate on mobile devices. That is the future blackberry. Looking at the mobile enterprise applications. Extend theto enterprise to mobile platforms. It may not be in the hardware space. It may be providing services that allow enterprises to do that. I am talking to crawford del joining us from west newton, massachusetts. With the new focus on Corporate Software services, blackberry started in Corporate Services after years of losing money. Will they be able to offload more of their manufacturing costs . They will move more of their manufacturing costs off the Balance Sheet. That ugly part of the Balance Sheet will move to a contract manufacturer. What you will see the company do , and what i will encourage the company do would encourage the company to do, is focus on their core competency. They have secure messaging. Y have a way to securely could offer a way to securely message on other platforms, like android or apple. This could be a way to securely message. What is the significance of the fact that blackberry is not licensing he its technology to foxconn . That really is not a change in strategy for blackberry. Believes company that to offer the most secure messaging service, they need to offer a end to end service. They are not licensing the technology to foxconn because they are not looking for other companies to Start Building these devices under their brand. They are giving the recipe to foxconn and having them billed for them. What part of the deal allows phones produce lowend can these phones turn a profit . They could allow blackberry sub 70ome of these low price points in emerging markets. That could be significant for blackberry, because they have a stronghold in parts of asia. Parts of latin america. Demand a lower price smartphone experience. Like barry needs a way to hit those markets. To getodays news enough enterprise customers to return to blackberry . Get into priceo customers to say, ok, there is a longterm strategy for blackberry to be relevant and to invest their cash in a new way to innovate. That is what investors should watch. One of the moves that they will deliver to deliver more secure applications for the enterprise . This buys them time. The executive Vice President of International Data corp. Crawford, always a pleasure to have you on the broadcasting are happy holidays. You too. Came together to pass a bipartisan budget bill. But it leaves a lot to be desired. We will hear from a republican senator when we return. Welcome back to the second halfhour of bottom line on bloomberg television. Im mark crumpton. Taying with us. Lets check where the markets finished the session as we hit the bottom of the hour. A strong report on economic report growth push stocks higher. We will have more on the numbers in a moment. Lets check the boards. The s p up 0. 5 at 1818. The dow rising 0. 25 . And the nasdaq rose over one percent at 4104. A check of the indexes for the week shows them all higher, about 2. 5 . Lets check some the top stories. The u. S. Economy expanded in the Third Quarter at the fastest clip in almost two years. 4. 1 limbed at a revised annualized rate. Up spending oned Health Care Services and Companies Invested more in software. After spending 10 years in russian jails for what many believe were trumped up charges, man. Ail is a free charges were a payback for financing Political Parties opposing vladimir putin. Safety checks are being performed at theaters in londons wes and after the partial theater collapse at the apollo theater. Many were injured when chunks of debris rained down on the audience during a plate. Investigators are trying to determine the cause of the collapse. That is a look at some of the top stories in the news. After passing the first budget in two years, senators left washington to return to their hometowns today. Senator rob portman flew back to ohio. The former director of the withe of budget sat down Political Capitals al hunt. Me that isappointed reluctantly just supported because i wanted to avoid another shutdown. It didnt address the underlying problems. Thirds of the spending is on autopilot. It will bankrupt the country if we do not address it. Incredibly important programs like medicare and Social Security are not sustainable. We have to get at those. The only way we have gotten that those is with the debt limit discussion. Limit, not todebt spook financial markets, but to give them more insurance assurance. , lets addressd medicare. Obama has been receptive to that in a general way. Would you be receptive to closing tax loopholes . Lets look at the logic. To say that we need to close tax loopholes, which is generally viewed as raising taxes on the wealthy, to do something that actually reduces benefits for the wealthy doesnt seem to be logical. Why would we have to raise taxes at a time when the economy is . Woweek too weak is not something rob portman would sign on. There is not a good logic to it. We need to be careful but the notion of means testing is that in medicare, those who are on medicare pay taxes through payroll taxes. On average, they pay one dollar in taxes for every two dollars they get back. All i am suggesting is people who make more than 175,000 a year start to pay a little bit more for their premiums. That saves a lot of money for the long haul. Max baucus will be designated the ambassador to china. He has been the leading democratic voice in the senate on trade. What effect will this have on any trade legislation next year . Fast track. Will anything happen question mark i talked to max yesterday. We are going to try to get some things done before he leaves. The president wants trade authority. This is the first in administration that did not want since fdr until march this year. Ttp, the transpacific partnership, has to follow. I dont think we can negotiate the final agreement without letting them know we have a fast track to get this done for a yes or no vote. We have to start with the tpa, clan, then wethe can deal with the transpacific partnership. Max baucus has been the champion of tax reform. That is dead now . On trade and taxes, i would make the obvious point that ron wyden is the likely successor as chairman of the committee. I spoke to him about this today. He is interested in the trade agenda. He always has been. He believes in trade. He thinks we need to knock down barriers. On tax reform, he has been very aggressive on that. He has his own tax reform proposal. Year, i think if we join forces with ron wyden, it can maybe happen. It is unlikely to happen right after the first of the year. Take on ahas to bill first. Orrin hatch is very interested in tax reform. I think we have a chance at it. If we do not do it, we are hurting american jobs during our tax code makes it more advantageous to be a Foreign Company than domestic company. That makes no sense. You see the best can see the entire interview at Political Capital at 9 00 tonight. Yellens nomination advanced in the senate. The 5934 telly sets up a final vote soon. If confirmed, she will replace ben bernanke. One of the reasons that yellen that that yellen vote will have to wait is because harry reid was hospitalized briefly. He was diagnosed with exhaustion. Senator reid suffered a mild stroke in 2005. Up next, Joe Brusuelas gives us the preview of the important economic numbers coming up next week. The week ahead, when we come back. It is time for our friday will feature, the week ahead. We preview the Economic Data and analysis for the coming week with senior economist Joe Brusuelas. The exclusive charts are out today. He joins us on the phone to go through them. Lets start with gdp numbers. The u. S. Economy grew at a solid rate from july to sit member september. Inthe growth was located increased intellectual Property Holdings and other sources. I am encouraged on the pickup and momentum. A lot of growth was located in inventories. That is something that is not sustainable. In the current quarter, we will acceleration of overall spending for households. Especially upper income households. We begin to see a bit of a drawdown in the current quarter. With two percent growth in this quarter. We are on sounder footing when it comes to growth. In 2014 for chance the economy to finally grow at the trend. At the full productive capacity, 2. 5 . About 1. 3 million americans will benefitsr unemployment. What will this mean for the jobless rate . 1. 3 million will fall off the rolls we will see the Unemployment Rate declined for 0. 2 . 0. 3 . T creates a policy program problem for the fed. The Federal Reserve will reduce the threshold to six percent. As they move away from qad, this will be their primary tool. This is bad policy. This is not something that should be done. This is a result of the political polarization. One hopes this gets fixed early in the next year. For the final month of 2013, we will also look at income and spending data. Talk to me about falling gas prices and the increase in average weekly wages. How will that affect the numbers question mark the increase in inflation adjusted disposable income has been sensitive to gasoline prices. The sharper portion more recently. This has supported the ability of middle income and upper households to spend more. Strong income and spending report. We have seen an increase in outlays under a bowles, specifically automobiles and outlays in durables, specifically automobiles and electronics. Ask what are you expecting from Consumer Sentiment . The university of michigan survey. Have shown strength. Thats right. Reboundseen sustained following the shutdown. Are poised in early 2013 2014 to see an increase. Fire tohe levels we saw the crisis, we do need to see a pickup in Capital Expenditures on the part of businesses that translates into a faster acceleration of job growth and strong wage gains. We have not seen this during the entire recovery. We will also look at durable goods orders. From julyoctober, a were week. They were weak. In orders . A surge when you look at the manufacturing sector, you look at autos and airlines. Sector. Trong everywhere else, not so much. Year you should expect to see a very strong orders of civilian aircraft. Newhome sales, what are you expecting . I am expecting the index to move largely sideways. We will not see much of an increase in overall newhome sales. One of the big themes of next year is the longterm rates increase. What is the condition of the Housing Market to absorb Mortgage Rates . Newhome sales are largely o upper income will keep you all wealthy people. Economist Joe Brusuelas join us from stamford, connecticut. Merry christmas. U2, thank you you too, thank you. Coming up, dreamworks picks up youtube player awesomenesstv. You look at the guy who is killing teen tv when bottom line continues. Awesomenesstv was acquired by Dreamworks Animation for 33 million in cash. It was the largest acquisition of the youtube player so far. The network says it recently hit 85,000 partner channels. It has more than 2. 6 million views. Jon erlichman traveled to santa monica to meet with the man who is killing teen tv. We are in santa monica california. This is a busy place. If you havent heard of awesomenesstv, you are probably not a teenager. Company is giving traditional teen television a run for its money. Lets meet the man in charge. Awesomeness tv is basically the online destination for teens. We are a u2 to Youtube Channel. We have one million subscribers. We have 85,000 partner channels, kids that watch our content and make their own. They started their own Youtube Channel under the awesomeness that are. Banner. If it werent for my kids, i would not have been so tuned into the behavior of teens. We look at our schedule. Not unlike a tv network. Monday through sunday. This is our studio, our ndstage, work we shoot where we should most of our shows. There is a green screen. This is our version of the view. Dreamworks animation and the acquiring awesomenesstv. Tell us about that. We met Jeffrey Katzenberg about six or seven months ago. It has been a great relationship. He is really passionate. He understands whats going on in the space. Let us know by like in this eo third let us know by like in this video. Jon erlichman, bloomberg. Up next, encore. Your guide to the biggest newsmakers of the past week. On bottom line. We will be right back. The first of what could be three spacewalks will get underway saturday at the International Space station. Nasa ordered the spacewalks to fix a broken cooling line. Station managers decided to send two astronauts to replace a pump that contains a bad valve. It is friday, so we bring you encore, a look at the some of a look back at some of the most notable newsmakers. This Congress Deserves that label. This was addition by subtraction. We didnt close the government. We didnt damage the economy further. That is all the congress are published. What we need are active steps. Steps to help the government become solvent fiscally. Were not doing any of that. This is a business where you have to constantly reinvesting your physical plant. Maybe even to allow some acquisition growth Going Forward. The Unemployment Rate has been falling 0. 7 or 0. 8 . This is a trend. That is not going to stop. They pull out their east to say, maybe it is going to stop. We have slow growth, two percent. And yet, the Unemployment Rate continues to fall. That tells you that growth is above trend right now. The rest of the world needs to get up where we are. We have been playing this game for the last one years. Saying, the u. S. Banks need to be brought down to the level on capital that the rest of the world operate at. I have been saying, that is the wrong way. The u. S. Needs to stay where it is and bring the rest of the world up. Even with the unemployment still stubbornly high, the that is not as important as the number of jobs that are being created, particularly jobs that are not our time jobs. Not parttime jobs. Buy a that can afford to house. The European Central banks policies are not appropriate for all the countries. Some are in dire straits. Some are prospering. Every separate country has their own entrusts to protect. When they try to has their own interests to protect. When they try to come up with the colette if when with a collective plan, it is complicated. You can now watch our interviews on bloomberg on apple tv. It a new experience featuring live, streaming, and on demand get the latest headlines on your tablet and that bloomberg. Com. That does it for this edition of bottom line. Thanks for joining us. Line will be taking a hiatus for the holidays and returning on january 6. Thank you for another great year. In the u. S. And those of you joining us from around the world, Merry Christmas and a safe, happy, and healthy 2014. I will see you next year