White house correspondent Julianna Goldman joins us now. How worried are the Insurance Companies about the numbers of those signing up today . Insurers are concerned. They are concerned about instability and consumer confusion. Aroundte house has said one Million People have enrolled in the federal or state exchange, but they originally hoped for 3. 3 Million People in by the end of the year. They are falling short of the deadline. They have not released the demographic data. The concern is while the website is working on the front end, the issues are still on the back end and will end up with the risk pool that is skewed to older and sicker people. They have announced over the past several weeks a number of delays and changes. What insurers are concerned about is that these go to the heart of the individual mandate. Last week the white house said your plan has been dropped and will not have coverage starting january 1. You can get a hardship exemption or you can be automatically enrolled. What the insurer say is these are people they were counting on to have had full coverage and full plans and that is what they were banking on in order to keep prices low. What has the white house been doing in order to prepare for today . They have been beefing up staffing. They have emailed 2 Million People who they have seen on the website. Out also said they sent 600,000 emails over the past several weeks. Just to make sure people are able to enroll. The big question becomes, what happens january 1. That is what has the white house most worried and why the on vacation. Ht he a lot of white house staffers have had to forgo their dictation. What they are concerned about is making sure people will still be covered. That they have treatments that are carrying over into the new year. It is the back and concerned that they are not fully confident about. Joe mansion more and the losses suffer a complete meltdown. The issue is that he wants to see a delay in the individual mandate for a year. Something he has been pushing on. He is a democrat. What he says is people are finding there is a cost explosion, if the plants are not what they expected, that is why the law could crumble. Seect that if we do not january 1, if we do not see the Health Care Law being implemented properly, that is a line you could start to hear in 2014, the line that they trot try to distance themselves from president obama heading into the midterm. Thank you. Day 11 of Bloomberg Television 12 days of bit point. Bitcoin. Today we are looking at alternatives that have been in the limelight lately. Matt miller has been doing this. Now there is a competitor called like wine . Light coin . Ofthere are a lot competitors. A lot of people feel the alternatives are a bit of a scam. It has become harder and harder to mine them. A lot of other currencies have popped up. They are easier to make money. Otherea is that these people are popping up to get rich quickly and not really as concerned with the movement of digital currency. Interesting. There are those who think it may be a scam. It is not that bitcoin cannot be a scam, it is maybe there are then using it to make money. There are so many others. At last count 3540 alternative all of theshows you possibilities. There is named coin. One of my favorites is doggy coin. It is interesting. There is still a massive advantage that bitcoin has over the other currencies. It has been around longer and more people use it. The market cap is like 7. 5 billion. That is a lot more than all the other alternative coins added up together. They all operate almost exactly the same principles. Chain forave a block the transaction. They all have a mechanism to decentralize for everyone else. They all have her protocol that minors use. Who is the light coin trader . It is someone who is now in charge of coinbase. Com. A coinhe monopoly trading site in the u. S. That anteresting to see lot of these alternative coins are experiments created as a way to see what other alternatives could work. Hen they are brought in bitcoin is evolving and changing. Interesting to see when someone goes out and create Something Like like wine light coin and then throws his money behind bitcoin himself as the ultimate champion. Thank you. Day 11. Moving and shaking this hour, kanye west. A sign that some luxury off even are turning the wealthiest clients. He has worked with Louis Vuitton on products that include 1000 pair of sneakers. Companys the parent slowed to three percent in the third quarter. The company has upped the price of the leather bags 13 this year. The company has not said anything about his comment. Mobile mogul Sheldon Adelson is taking an online stance against online casinos. Elliott walken had a chance to ask him if Online Gambling was similar to normal casinos. Arguments,can make and it may be familiar or similar to the argument made against landbased casinos. The point is it is some form of gambling and 48 states. Or indianer lotteries or native american casinos or commercial casinos or racing lotteries. There am a itdy is part of our society. , the one were to argue same argument can be made against landbased casino. The most important money in the justiceo department under which whose we highlye are the most regulated companies. We are more regulated than banks or any other industry. Of the Justice Department is know your customer. There is no way everyone can know their customer. You are opening gambling up to underaged children, ofage children, particularly College Students that cannot afford to play poker or to gamble on the internet. Problem of availability to which i object. I do not see any need for the government to allow operators to take a casino and put on every single Electronic Device that a young person is an expert with today and allow them to play anytime anywhere. They say you cannot whether or not a customer is an underage customer. An of age person could check in, or own own give his credit card and and then turn the phone over or the ipad or computer or connection to underage. Over. N turn that have someone legitimate check in and register and then turned that over to organized crime. Turn it over to money laundering. That makes every single telephone, Electronic Device and casino. I do not see the purpose of doing that. This is nothing that will help our society. Clearly he has thought through the issue long and hard. For more on him, be sure to check out our exclusive bloomberg billionaires index. Fromg up, the fallout raising the minimum wage. What it would mean for the restaurants that employ so many of the lowwage workers. By eating snacks . The Business Model. We will talk to the ceo in a moment. Not exactly the purpose person you would expect to see in your new neighborhood walmart. What was beyonce doing there. We will tell you when we come back. In the loop with betty liu will be right back. The fed may have to rethink the moderate tapering it the next guest is right. He has a bullish outlook for the economy, including a jobless bye just under six percent the end of next year. For more, i want to bring in don john herman. You are not giving up any ground here on your rosy outlook. Why is that . We have been looking at the we seery carefully something that we saw coiling in two thousand four. Those were times when the Unemployment Rate came in extreme came down extremely rapidly. Specifically what we see is this. Mathematical the coupling between the Household Survey and the nonforeign payroll survey. The household has been showing only 92,000 job gains. Whereas the nonforeign payroll 190200,000. I think what is going on is we saw that in previous episodes. The best i can determine is it is more like biased sampling, distortion. In these time series to verge done,e like they have they tend to the verge. It has been saying the non foreign payrolls are right. Harper when hot. Thehis case it will be Household Survey or Unemployment Rate that will do the majority of adjustments going into next year. 2016 you say the jobless rate will go down to like four percent. You do not buy into the new normal . Are a fewhink there factors. We do have the job improvement. The job market is very heterogeneous. Growth. Ve very good job we have structural elements that are not getting the attention of the fed. Chairman ben bernanke mentioned this and then exit speech. We have exiting baby boomers from the labor force that tends to bring down the Unemployment Rate very rapidly as well. Job growth going well. The exiting baby boomers. That is not per se job creation. And we have the issue whether we are appropriately classifying some that are more appropriate. I am not hearing in here an actual improvement in the creation of jobs or Rapid Improvement in the creation of jobs. Exactly. I am saying we should continue to run around the 190200 thousand on average. That would be my benchmark. I think you will have other elements that will coil. The unemployment will start to be a more accurate description of what the economy is. I want to play for you the ceo of manpower. Let me play for you one comment. He has the polls of the jobs market these days. Tide rises. Ly the very lumpy recovery across the united states. Is anhink lumpy discovery accurate description. When we look at the jobs silo a what we see is a jobs creation. Iny sit over large counties the united states. Los angeles, we see four or five counties in texas. Miami, new york city, boston. So we do have the silos that are therating the majority of job incidents. Geographically the way things look. Issue will be very tricky for the rest of the decade. I think the u. S. Has to look at itself as what do we really do well on a global basis that generates jobs. Baseent the big knowledge engine of the world. That is where jobs are growing. When you move out of that, you slip to lower skilled jobs. Then it is a question of two people have the skills to participate . So this is troubling. That is what we should be focusing on. That is what chairman ben bernanke gave us the message . We will be running into a situation in the economy were just doing cyclical Monetary Policy will not really solve this problem and reeducate or retrain the local label first local labor force. It is obviously a question of where the jobs are growing are going. It does not necessarily mean if the jobless rate will go down. Meandoes not necessarily we have to continue to taper or accelerate that. This is an engine that basically plays out asset prices, makes people wealthier. They buy a fancy watch. Workers inelp switzerland. It is not focused enough on the problem. Andissue is retraining rescaling and emboldening a huge portion of the population. Again, the areas the u. S. Has a competitive advantage in, we are the undisputed leaders. Businesses have done a lot of that. Look at my apple ipad, nikes acres. Sneakers. Business has made the decision for us. We have to recognize that and honestly admit it and then really focus on it. Then i think we starts getting back into more diversified economy. Great to see you. Thank you. John herman. Rate strategist at mitsubishi. Get ready to gray. A bitesized marketing push. You are watching in the loop. Morning. I am betty liu. Theer television is on markets. Equity futures climbing slightly this monday morning. This is going to be a bit of a slower trading week. We are waiting on personal income and spending numbers out in a few minutes. Up half a percent each for those numbers. An early glimpse of holiday shopping. On the markets again and 30 minutes. The iphone finally available in china. Apple in china mobile announced the longawaited deal last night. Sellings this in Retail Stores beginning january 17. 449 million in damages after us which mark watchmaker claims of breach of contract. That will be more inventive than he earned all of last year. Said it is extremely disappointed by the decision. It is conferring with the legal team about their options. The fallout continues from the hack attack that resulted in the data breach from 40 million credit card companies. In the meantime, two senators calling for investigations into the discount retailer security issues. And major Bank Monitoring customer accounts to see which ones have been sold on the black market. Butanies may be hiring, workers are still struggling. Increasing the minimum wage is a top priority for Congress Next year. Toreasing the bill from 7. 25 10. 10. Looking at the impact on the company. Irrespective of congress, many places have said they will increase the wage on average of nine percent next her. Depends on where you decide to do business. California planning to wage raise it by 10 . The companies that have more ranch ics have up buffer. The companies that keep stores in house may run into problems. Nicole miller reagan says these names have more than 20 of their stores in those states planning wage hikes. Starbucks is very exposed. Almost 35 . Bjs with almost half of its business in california put some more at risk. What about Company Earnings . You have to take of your favorite reader maker. To pull a could be hit by as much as 40 . Bjs a 33 impact. Could be hit by as much as 40 . Dunkin donuts almost no impact at all. Labor is a big hit for the casual dining. How do the companies mitigate the risk . Menuu can raise the prices. Through sales. What will they do . To makents could aim service more efficient. For example, starbucks testing a system where you can use your phone to order, pay for your drinks him avoid the line completely and pick up a copy. To raise prices by 1. 5 . Overall, the shortterm problem according to most analysts i spoke to is if it went as high as 1010, the companies would not be able to pass along all of the increase at once. There would be an increase on companies. The most difficult would be the Quick Service restaurant liked mc donalds. Center margins. Very interesting. Thinner margins. Says they will reject the proposal to acquire smaller mens the wearhouse. They will continue to review purchase opportunities according to the company. Julie hyman has the details on this. Preks this has been back and forth that has been going on for quite some time. We have had these parties make offers for each other and then reject them. The noises the companies have been making in recent days made it sound like perhaps they were closer to some sort of agreement. Looks like that is not the case here. A lot of analysts have said av it does at this point make sense for the companies to get together. There have been struggles in the greater retail businesses. Chairman says in a statement that the board undertook a thorough review and said theration of the of proposal not in the interest of the shareholder. Continue to review acquisition opportunities. If you are looking at opportunity, they are the two biggest and the specific niche. Unclear what other acquisition there would be out there. Makes it sound like perhaps it is a price issue. We will keep you posted. Will likely hear from mens wearhouse before the day is out. D be a raised offer thank you. We will be back with more on this. Joseph a bank rejecting mens wearhouse and their offer. In the meantime, i want to read to you the breaking numbers. Personal income coming in worse unexpected. Personal spending pretty much right on track. The revision and the prior month a little bit better than expected. On how Holiday Spending has so far shaped up this year. Higher. Utures are friday we told you about netflix for nibblers. A new Service Coming over from the u. K. That allows you to order snacks to be delivered to inr horn home starting january. For more on the concept of this, Anthony Fletcher joining us. Great to have you here with us. I must admit some of us are scratching our heads. Who really is the target market . Who will buy these snacks on a monthly basis and pay a monthly fee for this . Good morning. What we found in the u. K. Is we have been one of the fastest companies. We are selling 70 million worth of snacks now. It starts in the office. They were the customers who enjoyed the product first. Healthy snacks delivered to their desk. The snacks are waiting for them and they can eat something healthy. Office workers. You are targeting small businesses. Absolutely. All about the relationship of us and the customers. They can go online and order snacks. We can deliver monthly or fortnightly as well. In thenot buy these shops. Healthy, portion controlled snacks. The u. S. Market now . We have done very well in the u. K. We have recently taken an investment from a u. S. Firm, and were both excited about coming to the u. S. To offer unique fax over here. What about competition. What kind of competitive advantage do you really have . This was set up by individual to love film. They got the backend systems working. Spent another five years making it work here. The back end is the logistics. It is the way we respond to data. E make all of our snacks what do you mean by that . What will be key here in the u. S. . Could not agree more. If someone orders a box and pay for it, they wanted to arrive. We have a postal brain. An application that hosts that calculates data. Works outhe data and the best route to use. What are the margins like . They are great. We make our own food and resell it to the end customer. That is quite unusual. Selfer gamble has to through a retailer. They do not often make their own foods. We do both. It is speed and agility. I amline grocers is what thinking about. Amazon, fresh direct. Who are focused on same day delivery. Might they become a pretty big force to be reckoned with in your Business Model . I think the consumer need is a little bit different. What we are not trying to do is send a drone in there to respond unable in an hour. It is a regular thing. Website,ed on your granola, fruits, nuts. Are you looking at expanding at all . Doing other things. We make the food ourselves and have the relationship with the enduser. We are constantly analyzing what is popular and not popular and responding. Berry interesting. Thank you for joining us. Anthony fletcher, ceo of gr aise. Com. Slice, one to go to of chicagos newest restaurants, you will be out of luck. I do not take reservations and there is no waiting list. It is a stake restaurant. Bloomberg spent the day at the top secret restaurant to find out what it is all about. The restaurant is fed up in an unused conference room. The online delivery company. Everyone working here isnt fully at rub hub is an employee at grub hub. Are the bugs, opportunities and really get in the mind of a restaurant. This is a pretty big year. The combined company will do mill one Million Dollars in orders this year. It is part of a selfimposed crash force. The goal is to learn more so they can build technology that they will use to process even more orders than they do today. You can process the order perfectly and prepare perfect but if it does not get your to your house in time, you are pissed off. A tablet has to be really loud to be heard in a commercial kitchen. The company has began allowing restaurants to change menus on thefly. Seems to be working. Taking smart phone for drivers is a bit more difficult. Still in the testing phase. The director product has been driving delivery himself about three afternoons per week. Trying to navigate the landmines of getting into buildings. When they are not answering the phone is a lot more challenging than i was expecting. This is not the only way restaurants can take orders online, but it is the most popular. We saw a big interest in indian food. Restaurants should be able to know that earlier rather than later. It is not clear if that is really what restaurants want. Or many of them, the concern is commission. They start at 10 . The company ceo says the goal and clients goal are the same. I do not make a dime, unless you make a dollar. Slice does not have to turn a profit, and everyone else seems pretty happy. Appreciativeretty when you show up at their desk with a fresh piece of cake. Cake looksed velvet pretty good. The state department expected to get the final Environmental Assessment on the Keystone Pipeline soon. A look at what it could mean for jobs to oil prices. Retailers have their black friday, cyber monday. Apps might have download christmas day. Why the holidays are such a lucrative time of year. Taking a look at some of the most memorable cars of 2013 from a diamond encrusted rolls royce to a toyota that is like a television on wheels. Stay in the loop. By next year the Obama Administration will decide whether to move ahead with the Keystone Pipeline. At any moment emi or mental assessment is expected to be released. What will be the impact on jobs and oil prices if it is approved or rejected . Megan hughes takes a look. The Keystone Pipeline is it to Million Dollar pipeline. Dollar 5. 3 billion pipeline is approved, what does that mean for jobs . It will create 42 thousand direct and indirect jobs nationwide during the twoyear building phase. Almost 4000 are pipeline construction jobs. The pipeline only expected to create 35 permanent jobs. Suggests a razor thin profit for oil companies. Why . It created a glut of oil and the Central United states, dragging down prices. If they can make it to the gulf coast, it competes against the mexican crude benchmark. Projected at 89 billion per payroll. Per barrel. The 20 premium does not necessarily mean it profit. Most expensivehe to produce. It needs to fetch at least 65 per barrel to break even. Add in transport cost, included lubricant to get it through the pipeline and the price drops to 18 50 cents per barrel. If it does not get approved, who are the winners and losers . Transcanada stands to lose a lot. The company has two point 3 billion into the keystone project. Companies like Conoco Phillips could face hurdle getting the product to market. The next best option, railroad. 150,000 Barrels Per Day is moved by train run canada. Expected to increase to 360 euros per day by the end of 2016. The is much pricier than pipeline. That means investors like war and buffet could win big. Megan hughes joining us. We spent a little bit of time with the billionaire who has been one of the most vocal components. He wanted to dismiss the state Department First draft report going to it was not influence climate as much as people like him say it will. How important will that be for the president in determining whether to go ahead with this . The conventional wisdom is it will be very important. Of the Obama Administration, members of the epa were concerned about the original state department report. Interesting how the rail thelopment bolstered transcanada case. The big concern is global warming. Not so much the pipeline itself, but the demand for the tar sands that they say the pipeline will create. Crude, all of the energy it extracts, that is the big concern. The cousin the Rail Development is happening, transcanada says the demand is there whether or not the pipeline is there. That was essentially the crocs the draft report that we saw in march. What is the timeline . We spoke to the ceo last week. He said he thinks it is weeks, not months. He expects a final decision around march. In the same breath he said he would not be surprised at all if the Obama Administration left it up to another administration. The Company First filed the for the application in 2008. This has been a very long process. The conventional wisdom is this will be wrapped up within the next few months. You have heard republicans say lets just get on with it and get going. Thank you. Next, shoppers and suburban massachusetts got an early Christmas Present from the on site. He will tell you what she was doing at walmart. Stay in the loop. This mornings bloomberg big number, 37,500. That is how much money beyonce ended out in gift cards at a walmart in massachusetts friday. She announced her new record had just arrived and she would pick 50 for everybody shopping in that store. Walmart handed out a total of 700 and 50 get hard friday night. Pretty cool. She has been full of surprises lately. A massive credit card data breach may have hit target right where it hurts. Transactions at target was down threefour percent. Credit and debit card data for more than 40 million customers were compromised to hackers. Some accounts have been sold on the black market. We will be back in two minutes on in the loop. It is 56 minutes past the hour, which means Bloomberg Television is on the markets. Equity futures climbing. Coming inpending pretty much inline with estimates. Watch apple shares after the company officially made it made the announcement they will sell iphones in china. The markets again in 30 minutes. Coming up, we have been talking a lot about bitcoin, but it is not the only game in town. We will show how you the show how the other currencies are playing out. 30 minutes to the opening bell. This is in the loop. With betty liu. The countdown begins right now. Welcome back. A look at how one of the rich got richer in 2013. How Warren Buffett added almost 12 billion to the net worth. Consumer spending rose by the most since june. Americans income gained less than what economists had forecast it. Developers getting ready for their black friday. Christmas the biggest day for downloading apps. Stores are cutting prices by as much as . 75. You may be by hitting some of its coin. Ucts with matt miller and adam johnson learned a little lesson about bitcoin security when miller gave johnson a little bitcoin for christmas. Add unwittingly showed his private key. Here you go. You will find a private key on that you can access and load onto your wallet. This is what i put on my phone so that when i want to go buy or sell or whatever, i put this up on the computer. Is my account. That is right. Mistake. As a huge matt is here to explain. In thenteresting lesson security or lack there of of the bitcoin world. Is ifof all, what happens someone has access to your private key, that person is then able to access your wallet. Each one of the Little Christmas cards had about 20 on it. That, ther we show internet lit up. Said i cannot believe someone show the private key on Bloomberg Television. One guy wrote i saw that, too. Deep. Us age i took a screenshot and immediately and that empty the wallet. Hehis credit, the guys said would be willing to give the money back. We still may organize Something Like that. A greatou taught us lesson in bitcoin security. Go ahead and keep the cash. A lot of people thought it means bitcoin wallets are not secure. That is not really the case. You were to show your username and password on live television. You would not do that because you have been using the system for so long, you know if you did that someone would be able to get into your bank account in empty it of the funds. Part of this is you need to have the education. Exactly. People show public keys all of the time. This is my public key. Just like the story of the kid at the auburn football game, people hold these up and ask for money from charity. That is ok. The private key is the one that you want to keep. Has the funds that you clearly do want to keep. Very interesting. Thank you. Here is a look at the other top tech stories. Apple has struck a deal with china mobile to sell the iphone in the country. The deal has been six years in the making. It will provide the means to find fight the share in wireless providers. Having the backing of shareholders as the potential takeover move. It has delivered a total return of more than 462 since the spinoff of time warner back in 2009. Hoping that the gains will convince shareholders not to press for a sale. Rise afteres on the predicting an eight inch yoga tablet would be one of the five most popular gadgets this Holiday Season. Some of the new others are the apple ipad mini with the retina screen. Catch all the latest in tech and media every weekday at 1 00 and 6 00 eastern time only on bloomberg west. There will not be a union in the mens closing clothing business, at least not for now. Rejecting a 1. 5 billion takeover offer the mens wearhouse. Julie hyman has more on this. It looks like there may eventually be a resolution to the back and forth that has been going on for several months now. Joseph a bank came out with a statement to say we are rejecting your 55 per share bid. If you look at how dose of a bank shares have traded, they are down this morning. Joseph a bank shares have traded, they are trading down this morning. It looks like investors think it is worth more. Saying we would look for other acquisitions for us to make as well. The companies have agreed in principle that a deal makes strategic sense. This all started in october when joseph a bank made an offer for then mensouse, and wearhouse turned around after leading the offer expired and made an offer or a smaller rival. Some people call that the packman defense. Why does this make sense for them to join forces . For normal reasons of cost savings if you get them together. Purchasing customer service, etc. One analyst has also said it makes sense because of the lucrative taxi go rental business, which you could then expand out, that that would be something attract it. One other party that said it makes sense is eminent capital. They all nearly 10 of the shares and has been pushing for a combination of the companies. Also, the founder of mens , mens wearhouse was in something of a tumult to us after hevery departed the company under duress earlier this year. A strange parting. Thank you, julie hyman. Departing. Moving and shaking this our our, celebrating freedom and brazil after 10 years in a russia prison. Russias president said while asking for release. He said he will campaign for the release of other prisoners. I do not want to be seen as a symbol or a particular operation in snoring the fact that there are more political prisoners. Release ofead to the people whose release was not expected by anyone. By the way, not clear how much of his wealth is less. Is left. Coming up, a look at what Warren Buffett would say about this 2000 14. Is outlook for ibm out with the topfive innovation predictions for the next five years. We will tell you what they are and those predictions may surprise you. Stay in the loop. You are watching in the loop. If you are Warren Buffett who made 384 million 384 dollars per second, what opportunity would your eyes be peeled for in the new year . Chief investment strategist at legg mason. Also author of multiple books on warned buffett. First off, let me play for you, the consumer is always asking what are you going to invest . Let me play for you both a comment that he made earlier this year on where he is looking. I do not know where i will invest next. That is what makes my job interesting. If you went out and played golf, and every ball went in the whole, it would not be interesting. Fact that i do not know what i will do next. That is an interesting way to look at it. Certainly he wants to get more holes in one than not. You have looked around to see some of the targets. What could potentially be a target . What is pretty telling is what he did last year. The big acquisition is heinz and out of electric utility in nevada. There is definitely a preference. Has gone throughout his career toward Consumer Products company, and then more recently, he has been a more interested in capital intensive businesses. Big businesses like the railroads and Energy Utilities that have gotten quite big. You studied the way Warren Buffett invest for years. What do you read into that . He is looking for predictable businesses, businesses that have long enduring competitive as mrs. I think what is telling is Warren Buffett does not know where the next opportunity is because he does not know when market selloff will occur. For him, that is the next leg opportunity, when the market sells off. This market will continue to rally. Given that, are we likely going 2014 ornother deal in could Warren Buffett holdback . I think you could see another big hell. Just because the market goes up, it would not mean that Warren Buffett is held back from making any investments. It is stock by stock basis. I think he is looking for the right price. Even in a rising stock market there could be opportunities to buy stock. Let me play for you another comment that he made this year. The is about how he views succession at the companies where he is a large shareholder. Not know who cocacolas next ceo will be or ibm or american express. We have huge investments in those companies. They have changed ceos while we have the investment. I have never asked in the past. Warren buffett has been known to invest in companies because he likes the ceo, the person running the company. What do you read into what he says about succession . It is a great point, an interesting point. It obviously haynes against the backdrop of his own succession. It certainly is a factor. Recently there was a management shift at the big railroad that work sure hathaway owns. When he bought the railroad in 2010, he said that the longtime ceo was one of the main reasons he decided to put down the money for it. , it was announced matt rhodes would have a relevant elevated chairman and this guy named carl will run the railroad. What that tells us is certainly he is interested in knowing who the management is of the he may not know in the moment who the next in line will be. There are always questions about who will succeed Warren Buffett. Will he be able to keep them guessing next year . Toi think it will continue be a guessing game until that day comes. I did think it was interesting. It will get matt moore time tohaps to interact interact with the other affiliates. Berkshire hathaway is telling you is he has confidence in the board of directors and believes the board of directors will make a good choice for the next ceo. Do you have any further sense, robert, or guesses as to who is likely going to succeed Warren Buffett one of these states . Been a guessways between tony nicely, matt rhodes of Burlington Northern and the man who runs National Indemnity have been the names mentioned most often. Have those names changed for you . That havere the names come up. It is a guessing game. We know they have a front runner for the job but think it will be a closely guarded secret until it happens. Thank you so much for joining us. Robert stays with us. He will be our calls guest in a moment as the markets open up. Christmas day for app makers. A look at some of the strangest concept cars from 2015 that took look shareef features to a whole new level and sometimes a bizarre one. You are watching in the loop. I am betty liu. If you have missed any of the interviews today, you can watch them all on bloomberg. A brandnew experience. Make sure you check that out. A few minutes from the opening bell. The top 10 traits you do not want to miss right after this break. Keep it here on in the loop. Welcome back. You are in the loop. 26 minutes past the hour, which means Bloomberg Television is on the market. Olivia sterns has the latest. Futures are higher. Stocks set to rally. Get data out this morning on consumer confidence. Showing that Consumer Spending rose half of one percent in november the highest rating since june. Also keeping an eye out for Consumer Sentiment. Expected to show consumers sentiment increased to a reading of 83. Olivia, thank you. Olivia sterns. With thedown the open top 10, the only trades you need to know about today. About you. Ing not all blondes are the same. Number 10, facebook. Trading as part of the s p 500 index for the first time today. Shares gained more than three percent last week and have more than the world since last year. Global Oncology Company were upgraded by at least two analysts. The fda has approved revised guidelines allowing it to return to the markets immediately. Upgrading shares to outperform from neutral. The analyst citing compelling merchandise margins and demographic appeal. Number seven, micron technology. Bank of America Merrill lynch downgraded shares to underperform from neutral. Expect the ishares to weaken. To nearlye surged 250 so far this year. Expecting the shares to weaken. A company gave marketing approval for the oral version of the treatment for high Blood Pressure in the arteries. At number five, kb homes. Was upgraded to neutral from sell at citigroup. The bank citing valuation and more favorable to thousand 14 earnings outlook. Raising the price target to 17 per share. Number four, tiffanys. Ordered to pay 400 49 million ater the watchmaker claimed joint venture. The reward is more than they earned last year in net income. Number three, mens wearhouse. Joseph a bank rejected the proposal, saying is significantly undervalued the company. They will continue to review purchase opportunities. They originally made an offer to purchase mens wearhouse. Number two, target. Coming under fire after it was revealed that as many as 40 million credit card and debit cards may have been stolen. Two senators calling for an investigation into the security measures. There were tons of people in there this weekend. Target shopper, i can well imagine that. Number one, apple. Finally reaching a deal to sell the iphone in china. They will begin taking pre orders on christmas. They will be available in stores on january 17. A big deal for apple to finally get that done. Joining us from chicago, from the cme, todd horwitz. So many people have come on the program and have said even with the said tapering, the market is may be lowanother double digits. You will still stay out of the market . Good morning, we are seeing a legalized ponzi scheme being run by the fed. What do you mean by that . The way the fed is operating, this is a legalized ponzi scheme where they keep pushing down the money and hoping to devalue the currency so they can pay these debts back down the road. Weve got over 300,000 per family in this quantitative easing program. If they had taken that money and put it back into the system, putting people back to work and creating jobs and rebuilding america, we would have we would be out of this mess and not be dependent on the fed. But thats what the fed thinks its doing. But they have not created any liquidity for the average joe. 82 of stocks are controlled by five percent of the people. What we are seeing is a scheme that continues to roll out and we are not seeing the average joe benefiting. I dont know about that. Rates haventerest helped housing. Homeowners are benefiting from that. 57 of the housing has been done in cash. We have not seen the overall move in new mortgages and new money. Carrying a line of credit have had difficulty getting money and borrowing from the banks because the banks are taking the money from the bed from the fed at zero and putting it back into the government at 2. 9 . They are not loaning a lot of money at four percent right now. Thanks so much. Always with some sharp thoughts and criticisms of the fed. I want to bring back Robert Hagstrom at legg mason. His call is the one i mentioned that the market will rise in the low double digits next year. He just listening in called the fed a ponzi scheme. Betty, i will take the other side of that argument. We are in awhere bubble. We are trading about 16x next years consensus earnings which is not double territory. I think that that has done a fantastic job and doing the one thing they set out to do which was to avoid deviation at all costs. That was the number one priority, to avoid deflation. Done andhat they have for that reason, they have been very successful. In there are some bubbles the equity market in certain areas, would you agree . You can go from stock to stock may be and look at some stocks that look to be ahead of themselves on a price earnings multiple. The market in aggregate is not in bubble territory at all. Are looking at one sector that robert has been bullish on, in 2014. He says he does not think financials can have as good a year as they have had this past year. Many people say there is room for the banks to still run. There have been some terrible 13lines like the jpmorgan billion settlement and many banks are saying they dont know what to make of the volcker rule. Rough as is that as that sounds, at least those things are out of the way. Rule set incker stone, at least that reduces some uncertainty around creating strategy. Even though the Settlement Claims are huge, at least they are putting some of the biggest claims from the crisis behind them. Perhaps the strongest argument for buying banks is that they look pretty cheap. The s p financials art trading at a multiple of 13. 9. Robert, are you more skeptical . Just a little bit more cautious. Everything said was correct. It was the best performing sector last year, 39 up. They have had a good run and theres new regulation in front of them. If they are going to do well it will be because the consumer comes back and start to borrow more. We have not seen that but if that were to occur, that would the a big plus for the financials. How would we get consumers to borrow more . Confidence, its always a question of confidence. If you have longterm confidence in your job and your Employment Status and the economy and politics, its all about confidence. If the confidence is there, you will find people will borrow more money. Alex, you are looking attech. The question is how will the sector grow . Sales andlowing pc the u. S. Could fall 10 this year, weaker emergingmarket demand and we have heard this reporting a fall in firstquarter orders for next year. Also, the uproar over nsa spying could cost u. S. Companies as much as 35 billion in lost revenue over the next two years. It is because of those security dance. Tech is tricky. Where can you find that value in technology . The cheapest are in Information Technology is the four big horsemen you can look at ibm, cisco, oracle, hp. Exciting whennot you compare that to facebook or the other highflying stocks that those stocks are cheap, good Capital Allocation decisions, they buy back stock, increase the dividends i think they could do well on a relative basis. Robert hagstrom, thank you so much. Coming up, december 25 is being called a black friday for apps. Is nothing protected from retailers and shoppers this Holiday Season . We will have more when we return. Its the story of a Public Relations executive who made a dumb comment on twitter and the firestorm that followed. From iac stinesacco and she was boarding a flight from london to cape town and tweeted twitterrse that responded quickly and called her a racist and stupid and ignorant. There was even a twitter while she was in the air even donald trump weighed in saying you are fired. Thats exactly what happened when she landed. Iac parted ways with her but noted she was a person who was decent at the core. Hopefully, your Christmas Plans go better than hers. One group is set to have a wonderful holiday but we may see a record for most down most apps downloaded on a single day. Christmas has become the black friday for apps. This day is bigger than the release of a new iphone . Get their newe smart phones and tablets in the first thing they want to do is start downloading games or picture taking apps, all sorts of Different Software tools you can get through an Android Device or an iphone or an ipad. In people unwrap their gifts the first thing they want to do is take these gifts out for a test drive . They will be downloading these apps. What are the numbers we are talking about . Last year was the record that stood until this christmas and we are talking almost 400 million downloads in a single day. You can imagine that is a whole lot and that was 36 above the previous year. Onpanies are really focusing trying to capture that, Companies Like disney, electronic cards, they art tailoring their titles and releases to capture this kind of time. In your piece, you start off talking with this app called club penguin that disney decided they will wait until christmas to release. Yes, they have had this game online for a while but they have not released a full on ipad version. Last year, they were wondering what a good time of year would be to release it. They circled christmas 2013. About half ofting their subscribers for the whole year over christmas. Is disney and thats how they try to target christmas but there are other companies you mention in your piece to are trying to manipulate the apple rankings for most downloaded apps. Tell me how this plays into the story . The App Ecosystem is gigantic. Though google and apple store have about one million at each so it is hard to stand out. One way that app developer standout is they buy this advertising in a way that guarantees a certain number of downloads. It boosts your position in the apple leaderboard which makes you more visible when people are browsing. It becomes a vicious cycle where if you get higher in the leaderboard, you get more downloads. It is a practice that apple is trying to stamp out. It has been hard to do and continues. Very interesting, thank you so much. Time for our weekly check headlines. N this is the top story about ibm revealing its top five predictions for the next five years. Ellis what they are. Most of their predictions have to do with using our more digitally interconnected world to making zs your but the most interesting was that they believe that local retailers will trump online retailers in 2014. Really . They think if they can capture that local experience, you could walk into a store and the clerk as a digital profile of you and knows what camera you are looking for and they can direct you to check out these cameras. They could have a salesperson waiting for you. Do they mean momandpop local retailers . Ibm is thinking big. Who knows how it will trickle down. They want to see everyone using this technology but it may take a while. The big ideave, is in 2014, please dont make this new years careers resolution. This is an original piece on linked in. Up there with losing weight or other big resolutions are changing your career. She says dont do that. This is too big and it sets you up for disappointment. You start applying for jobs and you are not sure what you want and your applications get rejected and you get disappointed. She says you should set out a specific plan and think of one specific change you want to make to your career that is measurable and lays out certain steps like creating your own personal board of advisors like recruiting mentors and giving yourself a reading list. Simple incremental steps you can feel good about. What about the number three topic about the Music Industry . Last week, we had a couple of the pieces of music news, led zeppelin releasing its entire catalog on spotify and beyonce dropped her new album with almost new marketing and that represents two completely Different Directions and the led zeppelin move toward making their content free is the wrong way to go. It just contributes to this broken Business Model where if consumers start getting used to free stuff, they will not want to pay for it and beyonce went the other way and created this experience. She used an old style think giving people a whole album. Consumers should appreciate this. People value, you surprise and delight the customer and they will pay for it. Very interesting, that is the holy grail, make people pay for the content. If they want it badly enough, they will. Thank you very much. Coming up, we will show you some features of 2013 concept cars that are taking luxury to a whole new love all. Time for the Global Outlook unusual cars. Up paul allen takes a look back at the automakerslatest creations. Is a car or a tv . The futuristic toyota takes the prize for 2013 in the reliably odd category. Honorable mention goes to the micromex tiny bus. You will almost certainly never be able to die this car. This is a hydrogen car. The difference between a Hydrogen Fuelcell vehicle and a conventional vehicle is it generates its own electricity onboard. Praised but idea is absent from the roads. As for something you can buy,bu in dubaiveiled his car and three are available for sale at 2. 28 million each. The middle east is one of our largest markets in the world. It is always a pleasure to be here in dubai. Itsrolls royce showed off jewel phantom and crusted with 400 diamonds. Affluent population is trading up from motorbikes to cars and picking up parking techniques. Manufacturers of bulletproof cars are finding a ready market in pakistan. I am feeling very safe. On the subject of safety, ford showcased its Collision Avoidance technology in belgium in october. The car will take over steering and braking if it does not detect the driver doing the job. Ford expects less resistance to this idea been driverless cars. They might be saving that for next year. That is so cool. Under your tree for christmas. That does it for today, tomorrow, it is a Box Office Breakdown we will take a look at the hottest movies of the season and how the hobbit inaged to beat anchorman2 ticket sales. Ask for watching. Thanks for watching. Its 56 pass the error which means we are on the markets. We are 30 minutes into the trading session and stocks are rallying after the s p and the dow closed at alltime record highs on friday. We had some data out on Consumer Spending earlier this money showing that Consumer Spending rose 0. 5 in november. We are waiting for some data on Consumer Sentiment and hoping that will be the latest indicator that American Consumers are still spending. Its time for a check on the gold futures. Gold futures are trading at their lowest level since 2010. The precious metal is falling on speculation that less stimulus and an improving economy will cut demand for gold as a safe haven. Gold is trading below 1200. How ugly is it . If you are a long investor, this is an ugly year for you. This is the first big loss in 32 years. Investors are dumping gold at a record pace. So far, investors have pulled almost 39 billion from gold funds this year which is a staggering amount. The key level is 1200 per ounce. Ditchould be the last support for goal. The question is how far will it go . We know some of the big goldbulls have been feeling the pain this year. What is the outlook for 2014 . Goldman sachs is old is likely to grind lower but a lower gold prices predicted next year, about 1550 by the end of the year. It is about the Exchange Traded products. These are products that hold physical gold that investors can trade. How much more fast money is in those products . They restart record of about 28 tons from 2008 through this year which is 60 on annual mine production. What kind of washout can we expect to see. Not all investors were negative on goal. There is still investor money into these products. If the price continues to fall, will they be forced to sell, exacerbating the decline we have seen . One thing that confuses me is we keep talking about the accelerating economy in the u. S. Wereatest figures for gdp 4. 1 and the imf said they might up raid their outlook for u. S. Economic growth. If the economy picks up, i would think inflation is likely to pick up so what could that mean for gold . That is the bullish case. If the economy picks up, we still have record easing from the fed even though tapering 10 billion, theres so much more on the balance sheet, which will cause inflation. Gold bugs like inflation as a hedge to protect against a d valued currency. That theso pointed out fed will keep rates low, below 6. 5 rate. There is an accommodative policy. That could be some kind of catalyst for gold as long as it can stat a lot can stabilize. The issue here is lack of physical demand. China is importing 1000 tons this year but India Imports art because of higher import taxes. They might have the demand that they cannot import and china cannot eat up all the gold. Thank you so much. We will be back again on the markets in 30 minutes. Market makers is up next. From bloomberg headquarters in new york, this is market makers. Naughty or nice . A final weekend push for retailers, what is driving consumers to open their wallets . The top traffic counter joins us live. He is an icon in the casino business in the Global Political mover and shaker our exclusive interview with Sheldon Adelson. Down the digital chimney it is go time for santa claus he is going digital. Find out why we examine the top name in apps. Welcome to market makers