Though. We will talk more about bitcoin throughout the next few hours. And for the next few hours, the house has passed a bipartisan budget plan. It could help to lift the crisis that is hanging over washington. Joining us is our contributor. Also, the former Senior Adviser to president obama. Also with us is peter cook. We have our whole team coverage. Peter, lets start with you. Will this be a done deal . That is the expectation right now. You have to be careful that the Senate Relations are not that great. They have had two straight all miters because of this by. They are cranky right now. Everything that i am hearing indicates that they will clear the senate. There is a strong bipartisan vote. More than 300 votes in favor. Does anybody like this . Absolutely not. They do not see enough deficit reduction here. That is really something that stuck there. Americans could lose Unemployment Benefits. It did prevail because they end the crisis atmosphere. It is a big victory and john boehner took aim met outside groups for criticizing the deal. Moreis bill gets us deficit reduction than what we have under the budget control act. I came here to cut the size of government. That is what this bill does. Why conservatives would not vote for this is beyond recognition i can come up with. Of all the big implications from this legislation, there is as live between john boehner and the outside groups. Does it portend inks to come . Admonishing the tea party conservatives. What did you make about . Its about time. He has some backbone. Theyre going to be people who vote against it. I do think that they were forced here by the shutdown. They had to show that they could govern. There should not be too many victory clap. This is a sign of progress. Will congress build on this and do more to help the economy in longterm order they step back and say we have done the bare overum . Well have to see the next week whether that spirit of cooperation continues. We will bring mike mckee into this. The fact that the Unemployment Benefits ended right after christmas, that cannot be good for the economy. Good for the economy. This whole agreement is 10 of a joke in and of it self. Speak, they are not going to spend more money. Theyre going to cut money and pay for it with gimmicks. It really does not make a whole lot of sense. The only possible benefit to the economy is that it takes washington out of the headlines. At least the possibility of a government shutdown. It might give business more confidence to start investing. It is not something they should be proud of or that would give a major boost to the economy. We still have the possibility of a debt ceiling light coming up. And again, i have to think that this unemployment cut deal comes a horrible time for people. One of the great benefits of unemployment is not just being unemployed, the to the general public at large. People tend to spend everything they have. That money will not get spent. 1. 2 Million People get this benefit now. You have to be looking for work in order to qualify. If they all job out of the labor force, you know what will happen . The Unemployment Rate will go to 6. 5 next month. A lot of confusion. It is a real problem. You mentioned a good point. How can we build on this . We are not taking any victory laps. They fall short. How do you build on this . You have to have will. The reform probably gets done eventually. My view is that if they do not do it, we will have a very hard time during the primary. On the economy, the real tough stuff has not been done. Domestic spending has been cut. We dont was tax rate plaster. My guess isadline, not. Hattie think they have done in these negotiations . This is not a big deal, but they should get credit. Nobody could get along. The country could not be more frustrated. Even though it is a modest deal, they should be given a lot of credit. That house bill was a big boat. Yes, there were tea party members. They brought people up. Maybe you can build on that. They both have a lot of credibility, so they deserve a lot of credit. The senate isthat not just a gimme. Is the fact that unemployment is not in the deal, could that mean that they will not let this thing get through like this . If there is a problem, it will be because there are so many republicans who will not go for it. You have marco rubio and all of the folks who could be contending for that president ial nomination. They have all said this is a bad deal. Mitch mcconnell is expected to support it. Republicans have to step up and back this. We have not heard them step forward. I am hearing that there is an expectation that it will get the votes that it needs. There will be some drama and there are frayed nerves right now. A do think it will all be smokescreen essentially . They will eventually vote for. This is where all of the trouble has been. They have been the problem solvers. For now, they will throw the stuff the tracks. I do not see that happening. I think it will get done. There are a lot of questions here. Is this a single moment . I think so. What it shows is that they stood up to the tea party. The other republicans . Right. You can do this. What took so long . Is scary until you do it. It is not as bad as you thought. Immigration will probably be the next big test. Can they put together a coalition, even if they do it piece by piece . That is easy for david to stay. Running in a republican primary. Also, thank you. Qualcomms steve mullen ampf will mollenc become the ceo of qualcomm. Qualcomm is the Worlds Largest maker of chips for phones. The microsoft board was said to opf tosidering mollenk replace steve ballmer. We will see if that changes. To think that had anything to do with it . It is a fairly quick turnaround. He have to imagine that called him up and asked what was going on. We want to keep you and make you ceo. It shows you how qualcomm turns on a dart time. They said it could take up to a year. I am fascinated. Some peoples names have risen up and then they have fallen off the grid. Stephen from nokia was considered a possibility. Alan mulally has straps down the list. Within microsoft, there are differing views about the future of the company. Is the future of the company to fix microsoft and bring in someone who has turned around a troubled part of boeing . Look for someone who could fix the culture . Or do you go with someone who is running the Cloud Services business and could be the future of computing . Or do they go to focus on mobile . You can see the different focuses of the board as they try to sort through the potential candidates. They cannot make a decision. That ise korean true. And now to a company that is trying to get 20yearold. Were talking about mcdonalds. Not so much a big mac. If you are in the mood for some hash browns right now an app or that. It is the latest attempt to revive sales in the united date. Alix steel has been looking into this. I tried to download it. You can download it, but you cannot use it. It is only available in certain cities. Here is what it is. It is basically like a giant coupon. You get a hot and spicy for one dollar. Something along those lines. They send you a coupon and you go into the store and you redeem it. The goal is to expand the Customer Base, not only for younger people, but for people with higher incomes. It is difficult to get traction with them. What it is not as a way to order and pay for food online. Other stores are testing as well. You can download the app anywhere, they can only redeem it at 1000 stores. It is really a company struggling to keep it market share. They were down 8 10 of one percent. That was below estimates. This is something that you are probably fill your it. Chieflds created a officer position back in october. They were trying to ramp up part of its world. Really see mobile and digital as critical for business here in the u. S. What is so special about this app . Peschel or just different. On the one hand, the good thing is that it is a nap. Everyone needs an app. You come in to the store and you buy other stuff. You upgrade to fries and you buy a coke. That is where they make more money. About 70 of stores are franchisees. It is a different formula than starbucks. Even Grocery Stores sell starbucks. That is the model for how they should work. There is no algorithm. Theres work to do in the back. The Real Advantage is not having a different place to get a coupon. Ands knowing your customer their spending patterns. Then, you can start to drive sales. That involves a lot of work. Mcdonalds is really set up. That is why they have achieved digital officer position. Digital a chief digital officer position. About their Digital Strategy and the hiring of this is what he said. We were not going hard after digital. We have markets around the world that are doing some things in digital. We have areas where we are testing mobile payments. We have some areas where we have mobile ordering. We have some online ordering in some areas. We have not had many markets. We have a couple now, but not many who had Digital Engagement offerings. He says exactly your point. Mcdonalds has been late to the game. This becomes the law of large numbers. Theyre too big to grow. You need to attract new sales. Arepeople that you go to the ones you may not have jobs. They are very correlated to the job market. Over many years, they have been able to grow revenues. Be clear, they do make 2. 7 million per store. There is a big kill in that rough realm. I would still have a burger. It is not too early for that. We have Great Stories ahead for you. Ati was out and they have a cast of characters. And beyonces new album has stopped. No one knew about it. It was an itunes surprise. Stay in the loop. You are in the loop. Qualcomm has Just Announced that ollenkompf will be there new ceo. He succeeds the man who helped to steer them a former intern will become the first woman to run a major automaker. She has a science background. Joining us now with more perspective is our contributing editor, jeffrey hayzlett. He is also a strategy consultant for a number of fortune 500 companies. When the move here. Across the board. We are starting to see them get down to just a couple of candidates. Qualcomm,ofts was youre saying people going back and negotiating. He was mentioned, was he a real candidate . Probably. He gets to stay in his own house. Everything else. This is not a good time of year to recruit someone in seattle. San diego is looking really got. I wonder what this looks like. Paul jacobs and the board at qualcomm said you will not go. We will do something to make that happen. That is what has been going on with all of the other candidates as well. At ford, they have had that conversation. They have had more time with him. What youll see is that we are down to a horserace. Would you say that microsoft is doing a poor job . Should they have named somebody a while ago . Is a big company and a big change. Theyre really deciding what business we want to be when we grow up. Are we a cash business or a transitional business or are we a Growth Business . That takes a different kind of leader. My belief is that it will come from inside. He was brought in a couple of years ago. We might see someone come in from outside and really do it. Switching gears to another company. Gm just named a new ceo. You say it is just about time. Absolutely. Most women would say that. I think she is a good choice. It will be interesting to see what she can do. They actually organize the new team. They have been put in her spot and taken over the old spot. When a sharp individual. She does not have a background in marketing. Tell me about marketing in the car industry today and what rolled up lays. She did have a role in marketing. In gm, that is their line. They may have a more traditional role. It is about the product and developing the product. That is where you see the marketing at gm. They have made major switches. They have the design team beefed up. Theyre up 25 . Quickly, would your advice change for a woman ceo versus a man ceo . Not from a business perspective. From a politics perspective, without question. I looked around to see if they listed her age. I can only find it in a couple of leases. That kind of stuff goes on. We want to make sure she does not play those kind of games. Thank you so much. Host of the c suite right here on bloomberg television. Coming up, we chew on the risks behind it quite. Is it more of a threat than it is worth . And did you buy your Lottery Ticket . We crunch the tickets and have your odds on cashing in on the jackpot. You watching in the loop. Good morning. I am betty liu. Is 26 futures it minutes past the hour, so we are on the market. Equity futures are higher this morning. There was a threeday drop. Stocks have moved almost 300 points since september. This is a little bit of a respite. We are on the market again in 30 minutes. Stocks thise in year has been something amazing to see. How long can this market run . The hedge fund Dialectic Capital management bets against some companies. They look at the companies with the highest risks. They say the companies represent bubbles. We have talked for years. You are a client. Still am. You and i have talked for over a decade. You are talking about the current market. What do you see . Risk has been intentionally mispriced. What do you mean . The fed has easy money. People are taking more risks. Sometimes, there is a reach for yield. It could be in dividend stocks. You how we hadl so many people come on the still program to say to buy dividend stocks. There were pension funds. They are dying on the vine. That theybenchmarks are required to hit. Theyre doing everything they can and forcing up prices. We see this with the secondary effects. Short in a market that is going against you . It is a Risk Management environment. It is the opportunity that we have today to risk manager all the way up. You have to be humble and acknowledgment iran. When you are wrong. There are not many of us last. That is the untold story in the last year. How many short funds. You are longterm. You make big investments. There have been a number of short only funds. They have gone completely under the seer. It has gone from 103 at least. Sons funds . Of substance. Were seeing short ros. Borrows. Have been growing assets, but they have not been growing short bucks. Do you think that could change when the fed normalizes next year . If they do, that that could possibly change the scenario . We are are ready seeing a change. It has gone up. Stocks haveyer stopped acting to the right. It is not all about the expansion that it was. Fundamentals are starting to kick in. That gives us the encouragement that there is normalization happening. Thing . Hat calendar year people with a yearend results and say they do not want to be in this thing . This is typically one of the strongest seasons. We call for continued strength, but the weakest season was incredibly strong. We had strength although it through the latter part anyway. I do not know what to make about that. Where you think is the worst mispricing going on . Where is that the worst. It is the most extreme in certain areas of tech. If i was a short seller of the bubble, you are a very smart man to do that. We were sitting there and watching a company, i think it was junior. You were sitting next to me. He was wearing rattlesnake cowboy boots and talking on the stage. And starteder to me telling me things about their accounting. You said you sat down with the cfo and he was trying to explain something to you. He kept talking in circles and he said it was really compensated. You said great, explain it to me then. I will take the time to figure it out. That was a big change for my life. I could figure stuff out to. That has been your approach to your investments. You do the research to understand these companies. You do not let them off the hook. A lot of life is pattern recognition. You look for patterns. Then you have to go in understanding accounting and read the financials. Where do you see the same patterns been . In the same bubble. You see businesses that did not make money. I never thought i would say that again in my lifetime. Valuations are obviously unsustainable. Businesses are not profitable. Theres clearly a lot of risk in the downside. These valuations are greater than the total market opportunity. Printing, the market is 2 billion. So the entire cumulative sales of all of the Public Companies is 2 billion . And aggregate Free Cash Flow is negative or it. There is no Free Cash Flow. People are buying into that. You cannot measure by sales today. If they get one percent of the 14 trillion Manufacturing Industry the problem is that they are not addressing the Manufacturing Industry. They address a fraction of a fraction of that industry. It is not like this is new. You nameese bubbles it, they are all recycled. They have been around 25 years. It is a nice business. You are short then, right . 3d systems is a great example. You have a very promotional ceo. He set a meeting harder. I businesses 30 technology. Right . It trades at a high multiple. What did that mean . He says theres unprecedented demand. What does that look like . Sharp revenue growth. It should look like karma high margins that are expanding. It did look like shrinking inventories. Sell down your inventories. It should look like low receivables. We then look at the systems, do you see that . Inventory, that they recognize tripled. Is really like 13 of equipment sales. Why are they tripling . They are 77 days. They are supposed to collect according to financial statements. Somehow, it is 77 days. I started looking at the acquisitions. I ran a screen of all the companies that they bought since 2011. I could not believe. They have bought 13 or 14 companies. Basically one acquisition per quarter. There is not necessarily impropriety there. You could play cames with the accounting. They have only grown there enter sales by let me play doubles advocate. When he says off some, i assume and he means height hype excitement over 3d printing. It could be a game changer in virtually every industry. In housing, you could start fabricating homes. In retail, i assume that is what he is talking about. That is why people are buying into it. That is the multiple. You just described. If you go and buy one of these, what could be more awesome . Print me a coffee cup. That is where the imagination is wild. I let two of these figs. Things. It does not work cap the time. What about 10 years from now . We look at the profitability and the balance sheet. I think that is part of the thing. Were in the stage where imagination is king. With 3d printing, when you look at 3d systems as one company, how do you try to figure out when is the time and what is the time . Are the pieces that you see falling apart . You want to see a lot of things come together. There has been increased supply and stock. They have gone from two companies to six companies. That gives more liquidity. That is important, whether in software or service. You need enough way for the stock to go down. You also look for signs on the balance sheet. You need to start and stop making sense. When we see inventories jump up, you think there will be stuff. You look for those things. At some point and time, you have to see your thesis play out in the financials. It was important to us that financials did not go out. We cut values for the year. That was the sign of the beginning of the end. All right. Thank you for joining us. Great to have you with us. Up, change comes to see suite. What does it mean for other female ceos . And twitter reverses course. We will have the story in just a few moments. And the stars come out in Silicon Valley for the breakthrough ceremony. Onan obrien were out the red carpet. Stay with us. Heres a look at the top headlines this morning. North korea has executed the uncle of kim jong un. They accused him of trying to overthrow the regime. Collins sac capital is facing big changes. This is according to the wall street journal. Theyre also changing relationships. Y have lands end dan lamplight Insider Trading charges. And users will be able to tell if someone else on twitter has locked them. Twitter was trying to shield people from retaliation, but the new rule actually made it easier for stalkers to track the atoms. Ctims. Joining us now with tom keene. She hates me, she can block me. Completely. I can block you. I am more like the stalker anyway. Is it you that is stalking me . I am stalking you and you want. Of me. You blocked me. They switched it so you would mew me. I would still be harassing you, but you would not know it. The twitter sphere when not. You would know that i block to . Yes. You would mute me. They came out with a hint of dissent 8 30 last night. There is the press release at 10 35. They reverted back to the old policy. You blocks that if somebody, it was a complete block. And in your world, this is about revenue. Not only is she blocking me, because i said bad things about her. The serious thing is that view full women have to put up with this. It is about revenue. People are blocking tweets. That was the back story. It was really about ads. About revenue. They have to make revenue. If i block somebodies add, that is not good. Accountsare so many that theyre sending out messages. You can see why they are for new revenue sources. The discussion might be about stalkers. I think it is about stalkers. Absolutely. This is really serious stuff. You can make jokes about it, but it is about real harassment on social media. With in that is the idea of who is in charge. The twitter vigilantes really showed who is in charge last night. [audio deleted] absolutely. People have a real ownership stake in the source. The number of uses so much smaller. Did notho are active tell us which users are the whales. We know when one percent of users are paying a lot. With twitter, they did not tell us. I know that emily chang party girl. What was she doing last night . She is a party animal. She does all my. She also tweets all the time. She is like a whale. Your average twitter user is not the same. She tweets a lot more than me. I am a regular twitter as well. The Twitter Community can be very loud. We might think of it as stocking, but it is about bullying. I was going to save, it is in the larger context. It is not just the view of twitter, but also of facebook. Just as one idea, johnny cashs daughter was out last night. One of her people that she has been no doubt because of her father. Weve all had to block somebody. We have flocked tom over and over again. I think that it is interesting to watch qualcomm and twitter turn on a dime. Yes. You are dead on. This is a new world. I have to go. All right. Tom keene. At least you know it is him. Cant we all skip along . Coming up, buy a Lottery Ticket. You might want to splurge on one. Were going to make someone a lot of money. And he has gone to the ends of europe. What is he doing at the south pole . We will have the answer in just a few minutes. Cant we reach out and touch somebody . It is time for todays big number. The number is 400 million. That is the number of the people stand to win in the Mega Millions jackpot tonight. It is the secondlargest Mega Millions jackpot ever. Behind march 2012. That was a 656 million jackpot. Are you feeling lucky . It is friday the 13th. You will find out tonight at 11 00. You can quit your job on monday. It will just be easier if you won the lottery. Are you hinting something . Olivia sterns has been trying her luck and shopping for tickets. I would not quit. You would not quit. I do not think i would either. I am joking, i probably would. Nobody has one. The money has been piling up. Your odds are one in 259 million. That is not very good. You are about 30 times more likely to be hit by lightning. The closest i could come it is you are about half as likely or times the likely two as likely to make two holes in one. Cost one dollar apiece. If your warren buffett, you could buy all of the combinations and reap a profit. Other people could win. Some people are winning the jackpot. How does this compare . We compared to ces. Take a look at what jamie dimon made in 2007. One third of tomorrows jackpot. You do not make the big bucks a month own the company. Ralph lauren has made well over this already this year. He could have funded the lottery. With his bosses. That is a great stat. Facebook shares were up yesterday and Mark Zuckerberg made 1. 2 billion. You do not make the money until you get out of the position. I am feeling better about shark attack. There are warnings and things. It looks like i have people in kansas are probably at a lower risk of shark attacks. The other question all week is, what would you do . Would you take a lifetime payment . The option is to take the payout. The other option is to take it or to year annuity. A lot of people go for the cash, even though it does not make sense. Maybe if you have those hundreds of millions of dollars. Ila 12. Are you going to share . No. People just want to have some skin in the game. It is fun. Thank you very much. It is called the oscars of technology. Sergey brin joins other titans of tack and is donating money to science and physics. It is 56 past the hour, which means we are on the market. Futures are rebounding after a threeday loss. The dow is down almost 300 points. We will keep watching the markets. We are on them again in 30 minutes. Coming up, what are the biggest security concerns that bitcoin poses threat we will ask the National Security advisor about that. We will be back in two minutes. This is in the loop. Welcome back. Here is what were working on. Sac capital is considering major changes. They may even change their name. Theyre settling an Insider Trading case. New financing that could extend their timeline by three years. We will have more on that. Is still below the radar for most americans. Only 42 even know what the currency really is. Hollywood stars are on the red carpet in Silicon Valley. Providesnization resources for science and physics. Titanss donated by tech like Mark Zuckerberg. Emily chang was on the red carpet for all of the action. What was the question . This is a remarkable thing. Im hoping that hollywood will learn from the scientific community. Maybe all we need is science. I preferred this. The average sat score here is higher. This is going to be a fantastic evening. Can you make fun of scientists . No. You cannot. They are nerds. Of course you can. Amazing thatly there are these people who wish some of them all the time. What do you think about areo . We will win. What do know about the robot stuff . That question is for indie. You could give money for a lot of things. Why this . It could be transformative overtime trip it is great to see the geeks is time cyclical . You are worried about latenight television . Thank you. That microphone is not attempt to anything. Emily chang. It looks like those answers were black holes as well. How was that . Conan is even more funny in person than on television. This was a blast. Of siliconos who valley. Everybody who is anybody was there. Dorsey and the linkedin founder, nasa astronauts. David petraeus people from all walks of life. Including hollywood. They call this the oscars of science. Why does it need to be so glamorous . He says that scientists should be honored. I asked why the prize needs to be 3 million. That is three times the size of the nobel prize. It is far less than bonuses that people get on with wall street. People have money to work on future innovation. It certainly was a glamorous event and it was exciting. A lot of people turned up for their friend Mark Zuckerberg. I loved the answer that conan gave you. They are scientist, of course you can make fun of them. It is funny. He said that when he was growing up, the jocks were cool. Now the nerds are cool. It is all coming back. He said Something Like i guess i will be on the wrong side of history. Now, people are having a lot of fun. We talked about how these companies compete. They compete so fiercely in Silicon Valley all the time. But really, they do often come together to work on things like this. I asked surrogate brain about that. Sergey brin about that. He said he was going to live a short life. He cares about these people and he cares about this cause. Was one ofckerberg the only, if not the only person, who did not walk the red carpet. We were told that everyone would. He found a way to dodge the cameras. If it is your event, i guess you can do anyone. We were told that he really wanted it to be about the winners. He did not want it to be about himself. One thing that they did it via announce was a prize for mathematics. They could be giving out even more money. This whole sermon he will be broadcast on discovery science. It is really turning into the oscars of science. We might see you make an appearance. Thank you. Emily chang of bloomberg west. Moving and shaking with our, beyonce stunned her fans by releasing a new album overnight. It features 14 tracks in 17 videos. It is only available on itunes. She had not even said she was coming out with an album. She was bored with releasing music the way she has of the past. There are plenty of rformers on her album. Jayz is one of them, also drake and kelly rowland. I bet they are all on your itunes list. Actually, most of them are. That is interesting. We were talking about spotify. Some of the surviving members of led zeppelin now beyonce is only on itunes. They are making allegiances with different streaming services. Maybe they can get paid with bitcoin. It is getting a lot of attention these days. The price is back up. More places are more receptive to the payment. Jason is backing up bitcoin. There is also a lot of risk. Today is one of the 12 days of bitcoin. We are talking about securities. We went to turn to megan hughes, who is live from washington. Also, the principle of the Chertoff Group is joining us as well. What is it with this bitcoin growth . Only about half of americans know what this is. The biggest security challenge is how to track down users. Reporting, youis have to be pretty motivated to get into this and figure out how to use that. And you have to give up a lot of private information. If youre working your media rate. With even set up a peer network, maybe do not. Anarchists. Crypto, they are interested in the technology. Then there are criminals. Is an easy thing for money launderers. Is easy,d not say it but it does present a unique opportunity. They focus on the intermediaries. Problemshey addressed with transfers is through intermediaries. They are regulated and monitored. If you can have a true peers appear network, which is the idea behind bitcoin, then you can circumvent the minimum middleman. We have information about what people do know. Megan . The answer is not much. We have talked about all of the things that you can do. But a poll actually shows that most people do not know how to use them or what they are. This is a poll that was done over the phone. People were asked what it is. 46 had no idea at all. 42 didnt know that it was a Virtual Currency. Six percent thought it was a new iphone app. Six percent thought it was an xbox game. Of those who had heard of it, some heard of it being used by criminals. Close also interesting was the demographic. Those under 35 are most likely to know what bitcoin is. That could Say Something about its future. First of all, now that is established. A lot of people do not know what that is about. There are some bolder abilities here. Who needs to step in . Even in the government, they are not sure. There are nine federal agencies with a stake in bitcoin. The last congressional hearing, three agencies represented it. They have a stake. There are taxation issues. It is not clear. It is not clear how to regulate or who is responsible. Is there any agency in particular that wants to regulate this . Yes. We have confirmed that the sec didnt mention this. It will be a hot topic in d. C. It is also hot topic in the polls. Respondents were priests went here. They said that it should be regulated. 39 said no. Of those who did know about it when in the first place, not a lot of them dead. Not a lot of them did. Was a letter issued back in august suggesting that Virtual Currency could be considered securities if they bring in returns. Possibly, they could go under that agency. We will see that unfolded next year. I want to ask this question. You have an interpreter who turned out to be a fake at the mandela memorial. How video of the way close he was to all the World Leaders who were gathered. Is the white house sitting there wondering how he got so close to the president . The secret service certainly is. It shows you that even the most elaborate precautions can be defeated. Happened ande that they will do an extra review to figure out what happened. And after action review. They will find out what went wrong. Almost certainly, they will figure out it was someone they trusted. That trust was misplaced. I have a friend who is saying that it shows how inept they are. It is fairly amazing. Thank you so much. Thank you to our washington correspondent as well. We will be back in two minutes. Stay in the loop. In his latest attempt to revive sales in the u. S. , mcdonalds is introducing a new cap. App. Joining us is our correspondent, alix steel. Tell us more about what this is about. What this is is a giant coupon. You have a hot and spicy sandwich. Heres the deal. You download the app and they give you a coupon. You go into a participating store and order to redeem it. The goal is to expand the Customer Base to younger people and people with slightly higher incomes. What it is not is the way to buy and order food online. They began testing the app about a year ago. The expanded it to cities like st. Louis and boston. It isnt 1000 stores. The backdrop is really about this number. They were down 8 10 of a percent in the u. S. They have been struggling. Is this going to work or help . I think it will help. General, quite frankly, they are all looking for a deal. Giving them deals will be another way to drive traffic. Ultimately, across all generational groups that are looking for value today in addition to convenience and consistency. It does not, getting more creative than a coupon. It is an electronic coupon. The things that you could do to grow your business, it seems like that is not that clever. When you talk about mcdonalds, it comes down to convenience. 10 years ago, they were in the newspaper. Most consumers to not want to use them. Now, the mobile device has become the wallet. To have that coupon in your wallet will pay when you will pay with your phone, it is a great convenience. This does not address the other issue. That is the obesity debate. The continuing image on social media and elsewhere that the food that they produce is not itl and it is highfat. Contributes to the obesity problem. In consumers have grown up with that kind of view of mcdonalds. Supersize me. That was released 20 years ago. They grew up with that image. This does not address that image. That is part of the reason people do not go into mcdonalds. I do not think it is designed to address that issue. Today, indulgence and helpfulness are a balance. Most consumers are looking for healthy options. They are not necessarily taking them. Food, flavor, and taste is what drives most of the purchases. Many of those are fried foods and less healthy items. What did this do to margins . Discounts cannot be good. Today, it is all about driving traffic through the door. They have had six years of very positive success and growing sales. Eventually, that will flatten out. They can only service so many customers. There is sensitivity by consumers. To get more patients customers through the drive through through, that is what is important. Thank you so much. The executive Vice President and also to alix steel. We will be back in just two minutes on in the loop. We are just a few minutes away from the opening bell. We are seeing futures headed for a higher opening. The budget deal finally got past. I wonder what the ultimate Economic Impact will be. Have the top 10 traits that you not want to miss right after the break. Keep it here on in the loop. Welcome back. I am betty liu. And i am cory johnson. It is 26 past the hour, which means we are on the market. We have more right before the open. Futures have given up their gains. There is a drop in wholesale inflation. The house has its First Federal budget in four years. People are taking comfort from that overall. It is the first gain in the s p 500 since monday. Treasuries are higher, which is pushing yields. Also, the yen is rebounding. And futures are rebounding as well. On the markets once again in 30 minutes. Thank you so much. Lets count down to the open with your top 10. These are the only trait that you need to know about. At number 10, united technologies. They will probably fall below estimates. They cited sluggish sales. That could temper earnings growth. And number nine is sandisk. They make flash drives and usb is. They are upgraded to a strong buy. They raised the price target to 90 per share. Number eight is petroleum. They could be liable for a lawsuit over its 2006 acquisition. And shares plunged. Number seven is coca cola. The ceo has been trying to speed up efforts to move the distribution systems. He is replacing a leader. Coke is also said that the units into two business. Six is a company thinking about making the processors. Google. They have 95 of the market. And number five is texas industries. This is according to people familiar with the matter. Theyre reportedly working with citigroup to find it higher. Hilton. Mber four is they climbed in their trading debut yesterday. They are owned by Blackstone Group and raised 2. 4 billion in their public listing. They were listed as a new neutral. Number three as adobe systems. They posted a 10 decline during fourthquarter sales. Shares rose, however. There is an online prescription service. Number two is restoration hardware. The highend retailer raised its estimates for the year. Separately, Piper Jaffray downgraded them. And number one is qualcomm. Theyve named their new ceo just hours after the reports that he was in the running. They have said that he will take the man wholl remain chairman of the company. Joining me now is a representative from asset management. At least this our races one level of uncertainty for the market and investors. Absolutely. I am not the one to trump a good deal. At the end of the day, the market takes this as really good news. Less interference on day today trading. There are a lot of markets out there making substantial moves. One was the selloff of the british pound versus the dollar. The other is natural gas futures. They have gone to a oneyear high. We saw this last april. Unemployment benefits are not going to be extended. That is going to hit the economy. Does anyone their care . The market here does care. Why youanother reason will start to see more strain on employment figures. Youll also start to understand the economics on how the job market will sort itself out. All right. Thank you so much. From the trade to the call, i want to bring in john, the chief equity strategist met advisor at wells fargo. It could lead to tapering by next year. He says this is good for the economy. Great to have you with us. Say that theill fed needs to be normalized. This morning, they say they are mispricing for investors. Everyone has a right to be wrong. They are wrong. What the fed is trying to do is back away. Needed that we actually negative in the streets. Was getting easing us there. We no longer need it. I think we will get it. We have seen some incredible bubbles in the stock arc it. We were talking to john earlier. 3d printing and solar and software, it is Just Software with a different name. It is hard to disconnect those bubbles from the actions. They are part of it. They are tiny bubbles. Known market strategist. And a phenomenal ukulele player. Push theiny bubbles market forward. Some of them are silly. You cannot say they are stiff systemic at this point. They will not take down the economy than . They will pop and they will not take down the economy. They are doing recapitalization. There are some bigger things going on. You have dividend stocks that were being pointed out this morning. Theyre giving a big run. People are doing this to equities, not bonds. I do not know if it is riskier not. Up,r 30 years of going figure that out. I think that the stock market has less over the long term. Corporations are paid overhead to move the company forward. They are not necessarily proposing. Scarlet fu has been looking at corporations. We have been waiting a long time for that. We have record profits. There are a ton of cash on the balance sheet. It reflects a lack of confidence. They reward stock buybacks with dividends. Not much investing in their own businesses. This lack could be the greatest risks to a robust recovery. Would you agree . It could be. It is better to buy back chairs shares. Theyre doing this because it is the best use of their money. It seems like smoke and mirrors to me. They do not feel it is time to spend the money. They will. At some point, they have to spend the money. They have to keep up. They have to grow. I have seen billions of dollars wasted. Tears you on the fed and Interest Rates, how do you expect them to manage low Interest Rates while pulling back on monetary stimulus . I think that the market has priced into a certain degree of holdback. The taper is not unknown. People know what is. Argue that the things they cannot ctrolave already risen. They do have the base of the yield term. They will not let rates go up. That tends to keep rates low. Thank you very much. Still ahead, shark attack. We will go to best buy and radioshack. They will tell us what is going right and what has gone wrong in the business of selling electronics. And what is at stake for sac in their Insider Trading case. Were just a few minutes into the session. Stay in the loop. Sac Capital Finance manager is wrapping up his Insider Trading talks. His prepared to say whether he will testify in his own defense. They expect to finish presenting their evidence today. We want to bring in stephanie ruhle, who has been following the trial close late. Theyre outside the courthouse for us today. Lets start with how his chances are looking right now. The government is expecting to rest the case today. They say that the trial has not gone as smoothly as it would have liked. The defense lawyer did a pretty good job of creating doubt about the star witness. The prosecutors have another really big problem. They do not like to send a jury out to render a conviction right before the christmas holiday. With this about to wrap up next week, that seems to be what is going to happen. It is a bit of a risk. Cohen . About steve what is the dialogue around steve . It is bad for his reputation. The wall street journal reported that they are reconsidering their relationships. I think the story is a bit different. They will have to change their name. Weve seen them do it. But for them to reconsider their relationship . I say no way. Back in the day, they were the biggest in the account. They could demand great margins and big allocations. Has just paid fines. He is standing outside the courthouse in an Insider Trading case. He does not have the reputation he once did. What are the banks going to do . He has gotten preferred treatment from the banks with stocks and deals. Will that change . They have reported that they pulled the credit line. We will see this with other banks. We will see this as we report more. Getting those big allocations and first calls you will see a change from being a priority client to a counterparty. Will they interact . Sure. But there is a big difference. Acquitted . He is how does this impact other legal issues that he has to deal at . Sac has a lot of other legal things hanging over them. They pleaded guilty to securities fraud charges in november. They are waiting for that to be approved in march. There is another Portfolio Manager scheduled to go trial in january. Perhaps the most frightening of all the sdc is seeking to bar him from the securities industry. His relationship with the street could be impacted. That would mean that he never again could damage managed outside money. But most of the investors have taken their money out anyway. He is still sitting on billions of dollars. Of his own money. You cannot say this is not backing him into his own corner. Do you mean to tell me that you will see heads of equity departments saying we should give him the best financing . Fat chance. Why would that happen . Make sure there is only a little bit of stock available. On the margin, that could change results of that. Those results make a huge difference. When you were the biggest guy in the game, that made a difference. They see pressure in different ways. India. It will be interesting to see how this plays out. They brought in all of these different things. He was the guy interfacing. When you dont have that and you become this family, how you become run this business is a question. I do not think that he has all of this stacked in his corner. Much sure. U very turning to Silicon Valley, here are the top tech stories. Calling being called out as a johnnycome lately. He is being asked to return money to shareholders rid and his dreck tv is near an agreement to renew its exclusive deal with the National Football league to carry all sunday afternoon games. Companyest satellite has have the contract for 20 years. And yahoo has apologized for an email outage. They currently serve over 100 Million People. That is a long time to be out. It is out in pieces. There are server problems that they have had. Them, sheime i saw said everyone has a yahoo mail account. What does she mean . There are so many more accounts out there. At some point, everyone has had them. To we know how many are zombie accounts . They have purged a lot of them. That was annoying to some people on our staff. They have done purges and made things available. It is one of the signal strength companies. They arege trying to build up the rest of the company. Now, we learn that their deal is also one third. They emphasize their products, which is a big part of their business. You can catch all of the latest technology and media at 1 00 eastern. We are bloomberg west. Back in two. It is time now for the global outlook. The ceo of airbus says that they need to be more aggressive. The airlines have backed off on the plane that can seat 500 passengers. Thatsays that he is rising traffic levels should increase demand. We cannot deny that traffic will grow by five percent. Thanks to asia, china, and the middle east. To double every 15 years, imagine two times for traffic. You need them. This is the aircraft of the future. Staying global, prince harry is set to reach the south pole today after weeks under they are on the last leg of their track. It was originally conceived of as a race for walk for wanted. Wounded. That is pretty awesome. Turning to corporate america, eddie ishaq was shown thrown a lifeline. They could turn around. Adam johnson has been looking into radioshack. You have been all over this story. Best buy was effectively where radioshack is now about two years ago. They were filing bankruptcy. About a year ago, people were concerned. They turned this thing around. The numbers are an absolute disaster. It is like credit insights have called this an absolute last ditch effort. Let me show you with earnings look like. 2011, they arent . 90. Look at 2012. The expectation is a loss of two dollars. It does not get any better going into 2014. The problem is that they need this money. They needed to stay alive. That is why they call this a last lifeline. You look at the analyst committee, zero buys. 12 holds. Who wants to stick their neck out . That is the problem. You look to buy the stock. Ago, i member sitting on the couch thinking this is what you do. Right there next to the japanese maple. I was reading it and thinking this could be very interesting. It is. Looking for some signs of hope. They are not there. They have that the farm on crummy, cheap phones. I went tor been a radioshack last night. It was depressing. There were so few crawly products. I felt like i was going into a store offering stocking stuffers. Cases for phones, many which are phones that i would not buy. There were some iphone cases. You are the last man on earth to buy an iphone. It is a tech story 90s or early 2000. I would say the 80s. We did a comparison of radioshack versus best buy. You will appreciate that. Projected cash flow 158 million negative. Best buy is 1. 2 billion. The equity is 127 . The debt to equity is 100 footie seven percent. Thank you for bringing that to us. That doesnt for us today. We will be speaking to the Dunkin Donuts ceo as he celebrates five years at the helm. We will also speak to the managing partner at bain capital. In on the possible hike in the minimum wage. Have a great weekend. It is 56 minutes past the hour, which means be we are on the markets. Were 30 minutes into the start of trading. The house passed the First Federal budget in four years. It gave the first gain in four days. It is pretty fragile right now. Were up just to 1775 in the s p 500. The 10 year yield is unchanged right now. Wholesale inflation is showing an unexpected decline. Prices have dropped for the month of november. The yen is also rebounding slightly after all link against the dollar for a while. Focus natural gas is backing up slightly from two year highs. Meteorologists predict temperatures fluctuating. The joined by the ceo of spartan commodity fund. He is joining us from the nymex. Good to see you. This is all the weather. It is freezing here in the forecast is suggesting a moderation next week. Yes, right. Very cold weather. If we do not see more cold weather, we could see lower levels. Im really focusing on the 440 level for natural gas. If we settle above it, the higher we go. , tire we talking about . 492 for natural gas. Were talking about a lot more cold weather. Market topect the come off a lot harder, which it did not. We think there are a lot of longs in that market. Theyre waiting for it to go higher. We keep seeing natural gas bump up against the 440 level. That is where we were earlier this year. What would it take to get back to the levels of 2008. First, exceedingly cold weather. It would also have to be something with the infrastructure. Big bottlenecks within the infrastructure to get to that level. Talk about the supply situation. There is a tremendous amount of supply. We have supply coming from other regions that we used to never have, like in the north. We do have enough supply and natural gas. However, if we get a big cold snap and we get the natural gas from where it is stored out to the places that need it, that is the infrastructure issue. If we created and we have an infrastructure issue, we could see much higher levels. I do not think it will happen, but if it did, that would take us to higher levels. Weather is the catalyst. There are a lot of events on the calendar as well. The policy meeting is next wednesday. They will have a decision on Interest Rates and quantitative easing. Eventsexpect these macro to cause a fluctuation and Natural Gas Prices at all or is that a sideshow . In this particular case, i do not think it will have much of an impact. It could affect the war local market. I do not think it will have much impact this time around. It is really whether driven. If we have a cold snap, we see higher levels. If we have warm weather, we are coming off hard. The macro aspect will not have much impact. What about the effect on heating oil versus natural gas . Parts of the country still depend on heating oil versus natural gas. Very interesting play there. We have natural gas going up and heating oil is not going with it. It has been on its own. What i look at instead is that there has been a decline in crude oil. That allows us to have all of the heating oil that we need. It is very difficult to switch over to heating oil to natural gas in midwinter. Thank you so much. Alan harry. He is joining us on futures and focus. Youre onon the markets again i0 minutes. Is up next. S microsoft shortlist list for ceo is one name shorter. One of the candidates will stay at qualcomm and become the ceo there. We will speak to steve miller about the ups and downs of filling the fee suite. Suite. Ofwe will speak to one ceo one of the Largest Hotel operators in the country. Playing that 400 million