Decision was the grand jurys to make. There are americans who agree and there are americans who are deeply disappointed and even angry. Its an understandable reaction. The president did not rule out owing to ferguson saying he needed to evaluate how the situation is evolving. Treasury secretary jack lew ss the proposal to extend tax breaks as a responsible. Lawmakers are discussing a package that would reduce the budget deficit with permanent tax breaks for businesses. Record 35face a million fine for not telling safety regulators about injuries involving its cars. More than 1700 claims are at issue in the number of injury claims came up during the investigation of faulty airbags. Weve got a story of Insider Trading that comes with the files of the at ei. And analyst at set itself told agence he made millions of dollars trading on information from an inside source at dell. Need to be analyst nor the dell employee were sued or prosecuted. People familiar with the matter say authorities did not have evidence to charge the analyst and nine people who were convicted on Insider Trading tips. From ferguson, missouri, present obama responded as you just heard to the decision late last night. A statement from the white house urged peace and calm and peter cook has more on the white house reaction. The president had to choose his words carefully last night. Stepe did, at every single of this entire story, since Michael Brown was killed back in august him of the president chose his words externally carefully entered so last night. He said he did not want to tip the scales of justice and have a president ial influence on the out, but the grand jury decided. Now the grand jury has spoken and the earth americans to respect the decision. He called for the protesters to protest peacefully and he called for Law Enforcement to show proper restraint and work with communities trying to address some of the issues out there. He also made clear that there is still problems with Race Relations in this country. About that at some length last night. Situation in fergusons weeks to challenges we still face as a nation. The fact is, into many parts of this country, a deep distrust between Law Enforcement and communities continues. He said the federal government can play a role to bridge some of those tensions and he talked about the work that attorney general general eric older and the department of justice can work to ease tensions. There are still too federal investigations underway in ferguson into what happened. The government and the justice to armin is investigating the actions by the Ferguson Police if theyve shown tendency toward excessive force. A separate federal investigation into whether or not Michael Browns civil rights were violated by officer Darren Wilson is a high legal bar and that was acknowledged last night i the attorney general. Those two investigations are ongoing and that is at least one thing the family of michael round and supporters as well as members of congress are watching. Theit reminds me of president and the comments he made in the Trayvon Martin case questions about whether the president should be commenting at all on these cases. Youve got to expect that the resident of the United States who is the first africanamerican president of the United States will weigh in on these issues. He can play a role that can foster a more peaceful resolution perhaps in the community there. His words make a difference. They can be healing but there is a risk that the president is going involved in a situation and thats why he has the chooses words so carefully. He struck a balance last night and probably did not satisfy people on every side of this issue. I dont think the president expected to be able to do that. I think you will hear the president talk about this situation again, perhaps as soon as today. Over the course of the next weeks and months and perhaps the final two years of his presidency. Thank you very much. The city of ferguson, missouri exploded and violence overnight. Ferguson. To tell us the scene this morning. Is there more calm . Yes, most people have cleared the streets but there are still the remnants of what we saw last night with businesses earned out and some wires still smoldering and a lot of the lease. We saw some National Guardsmen guarding businesses in various parts of the region. People are preparing for another day of unrest. Do people believe come nightfall that there will be more rioting . They are are already demonstrations planned for this morning. They will be some demonstrations at the courthouse where the grand jury met. We dont know how long they will last but once night all, all bets are off and we will see a different element when it gets dark. When night falls, we see more violent demonstrations. Those are live shots we are showing. Of the remnants of the violence are. There were protests around the country and in new york city, the Police Commissioner was spattered with a blood and people were taking to social media that exploded last night into the morning. People on both sides of this case are both are voicing their concern. Where else will we see the protests and violence . There are events planned in more than 100 cities for today, more than 37 states and a lot of places where there have been police killings. Hasissue of Michael Brown resonated in many communities where other people who are unarmed have been killed. As york is one place as well oakland and washington, d. C. In front of the white house or if there were hundreds of people in the streets. We are expecting to see more of that today. There is a picture right now of commissioner bratton in times squares battered with fake life underscoring the emotion around the country on this Michael Brown case. We heard directly from the family and they issued a statement shortly after the decision where the family said what else have we heard from Michael Browns lawyer and family and supporters . The lawyer for the family has said the entire system has failed the family. The family will do a press conference later this morning. They were distraught last night and Michael Browns mother was crying in front of the protesters asking why this happened. They are also appealing for calm and dont support the looting and violence that has taken place but they are distraught and have been expressing themselves and we expect to hear from them later today. What about Darren Wilson, the Police Officer . Does he go back to his job or resign . He is still under a federal investigation. Status right now is in limbo and we dont expect to see him back on the argus and police fergusonlack on the police force. We dont expect them to see him on the street anymore. He recently got married so were not sure what he will be doing moving forward but he is a reman and after the federal investigation, he will make a determination of what he will do next. Thank you so much. Moving and shaking this morning, ceo, they filed chapter 11 last week after the desk the Supreme Court violated federal they violated copyright laws. Some giants lobbied against the service. Aerio tilde bankruptcy judge there is plenty of interest in the company. Since the Supreme Court decision, hbo, showtime, and cbs have introduced their own plans for video streaming services. In an exclusive interview looking back at the asreo abouty, i asked the ceo them doing exactly what he was trying to do. I think if they had done that before we did this, it wouldve saved me a lot of time and money. All of these consumers that want to be able to have the lex ability and by a la cart and do all of these things would have been great. You would not have started aereo if that had happened . There is an increase in people not taking a cable bundle. There is an interest in the market place. Theres opportunity to do something. It had nothing to do with fighting with anybody. Customers tend to skew very young and they tend to see the same trend so it made perfect sense as a Market Opportunity to think about this. I dont know what the price point and whether its right or night and i dont know if the consumer will be motivated. 15 for hbo . Or maybe eight dollars. I think the market will take care of itself. I find it ironic that the same eet of folks who said a la cart is bad and we will never do this are now saying yes we acknowledge that there is a certain population of people that is growing. That want to consume in this fashion. I dont know if they said a la cart will never happen but they always said it does not make economic sense for you they say will not be good for the consumer. I tend to have a slightly different view of that. I am purely driven by whatever happens in the marketplace. If you think its bad for the consumer, i think the consumer should get to decide. These companies have responsibility to ask them and put your best roddick out there and charge the best price you can. Somebody is willing to pay for it, great if not, find another way. Ceo and was the aereo founder of we will have more of that interview in a you moments where he reveals who might still by the company. The stevead jobs movie gets a rescue. By today, the government wants you to know how many calories are in the popcorn you are eating at the movie did her death at the Movie Theater. Lets get back to our exclusive interview with the aereo founder. The barry diller back startups sought accuracy protection last week. In his First Exclusive interview since the Supreme Court decision buried the company, he reveals exactly what will happen to aereo and who might still by the company. After the Supreme Court decision which effectively put us in a strange situation because the court used its analogy that said you look like cable but are not really a able company. A cable company. There is a lot regulatory uncertainty so we took a while to figure out what to do. There was a lot of interest and still is in buying the company and the assets of the opening. Tilt of the technology we we built as an coating fabric which is pretty valuable. Interest. A lot of you might sell the technology . As we analyze the various paths, it was clear we have to deal with litigation in some way, shape, or warm. Or form. It made sense to look at chapter 11 as a way to deal with these issues and at least unencumbered the assets which are truly valuable. And the legal costs. Walk me through how chapter 11 will work . This is my first and hopefully my last time. Its intellectually interesting. My understanding is that it is a transparent process with the court are people who are interested in buying the assets andhe company come forth are able to buy the assets or good use whether they want to use it or online video or mobile video or whatever it happens to be. Hopefully they can do that without the litigation stopping them. The only disappointing part is the team is not together. That depends who ends up wearing the assets. Theres a small chance we decide to restructure the company. Whats the possibility of that . Its on the low end. 5 . I wouldnt know but given the interest in buying the assets of the company, i suspect that is a more natural course. Financially, its probably a more rewarding course for shareholders and other creditors which is the primary responsibility we have. Who has expressed interest in the assets . They range in a few fortune 500 companies and some internet companies, people that provide video today. Its a diverse set of people who looked at what we had built and thing wethat the key did is because the online world and thensitive to cost operating cost is very low, aereo had done well was reduce the implementation cost and built a heist a high density solution. Everyone is looking at the Broader Market and that is attract it. Attractive. It will not drop immediately but the foundation is nows set. How much would the assets behind aereo be worth . What is the value of that . Thats purely a function an old mentor told me that companies not that are not sold, they are bought. So how many people tend to buy. Suspect that will be the case here. Ceothat was the aereo speaking with me exclusively about filing for chapter 11 and any idle hopes for the company. In the next hour, we will have more including his take on the streaming industry and where the cable industry is headed. Twitter did something he probably should not have on twitter. , storeall shopping owners will do anything to get you in the door this year. Good morning. You might want to rethink the large tub of popcorn at the Movie Theater because it packs a whopping 1000 calories. There will be new menu labeling rules being released by the f ea. Fda. The saks fifth avenue store on fifth avenue in new york is one of the most valuable Retail Properties in the country valued at 3. 7 alien dollars. 3. 7 billion. The Parent Company announced it took out a loan against the flagship store. The steve jobs movie has a new home at universal pick hers. Its twoyear development that we could go. 30 million was paid for the title. The hour miles past which means Bloomberg Television on thequote is markets. We will get more economic numbers today including the second read on third order g the but also case schiller. Hat will be out at 9 00 it is a retrospective look at the housing recovery. Rum r service to and there are some of the enticements that mall owners are using to get shoppers to get into their door the season. In an age when customers can simply buy gifts over the internet, will these gimmicks increase your traffic numbers . Malls,yman walked of the some of the biggest ones in new jersey, to find out how retailers plan to thrive this season. One of them was the garden state mall . My home base. Do you frequent the garden state . Not the garden state but other malls. You have everything from a Payless Shoe Store to a Louis Vuitoon so it spans the range in terms of appeal for the retailers. We were their midday on it writing and there was not an enormous amount of traffic but there was traffic there. Everywhere, we saw forsale signs. I was with an analyst from keybank and he says 40 is the new 25 in terms of the percentage off you are getting at the store. He says that is taking a toll on the retailers in addition to the other things they are spending on. Margins are under pressure, instore promotions, reading a great environment am a shipping online. It is the sales as well but its also things like you were referring to, the various services, things that are pulling people into the mall versus staying at home and shopping online. At this mall, there is a carousel and a center santa. Its those sorts of experiences that people associate with Holiday Shopping that malls and retailers are banking on my comes to getting people out this Holiday Season. That is some carousel. It is fullsize and going fast. Rattners original mall in yonkers Just Announced a partnership. They have a gene. They have a dream place they are launching. That is partly what you are talking about. The total that these kinds of projects are taking on laws and times of the cost. Definitely come it is getting more expensive. Especially in a time when trending downward. It is declining less but still downward. Inventory levels. The retailers are going into this Holiday Season leaner and meaner. Third quarter inventory growth, this year it is less than 1 . Last year it was Something Like 6. 6 . I also talked about the inventory question. The problem is, even if your inventory is ok, if your competitors is not, you might be force to cut prices. About black really friday. It is about the saturday, the weekend after black friday. These are the times we are watching traffic closely. Black friday will be busy, it is the time after we watch closely. He was talking about black friday. Stores need to continue momentum beyond it. The idea of inventory, if one store cuts prices because it inventory is too high, even if have lessitors inventory, they will cut prices. Who knows how to elevate the Shopping Experience. The ceo of the Home Shopping us. Boostings sales with the help of celebrities. Gdp, a second rate of thirdquarter gdp much faster than expected, 3. 9 percent compared to 3. 3 originally. ,rsonal consumption up 2. 2 higher than reported previously. Matt miller . You hit it with the headline numbers. A bigger gain in gdp growth than expected. We were looking for a job. A survey bloomberg conducted was looking for a revision down to 3. 3 from the last rating of 3. 5 . We got a revision up to 3. 9 . Same was true for personal consumption. 1. 9 forecast. O most and partly, the court the core pce, the inflationary indicator the fed looks at closely was 1. 4 . In line with estimates. The fed would like to see that closer to 2 before it is comfortable raising rates. That is what everyone is going to be talking about when you. Ake away the headline number people are going to be looking at inflation numbers. Thank you, matt miller at the breaking news desk. Starting at our record highs. They are continuing to build on gains, ever so slightly given the second rate on the gdp numbers. After that, we need a weather check. Thanks giving 2 days away. Parts of the midwest have seen snow, rain, Power Outages and forecasters are predicting a highimpact storm will hit the northeast as millions of travelers had to the thanksgiving destinations. Mark mancuso joins us from state college, pennsylvania. Is it going to be terrible . Travel today or early on thursday in the east. It is not looking good. Already we are seeing a conveyor along the easte coast. There is a disturbance in texas. That will bring us our storm for tomorrow. Travel is pretty good in the northeast across a good chunk of the nations midsection. Trouble spots on the south, i95, it is raining. In the west, too. In the rockies, snowy and windy. Winds with Tropical Storm force. In the west, in the heart of the rainy season around seattle. Today in the east it looks good. O problems on i95 tomorrow our coastal system unfolds, it rain will advance of the coast. Philadelphia,nto new york. It will star as rain in boston and changed us know. It could get heavy around new york city and boston. Snow could be significant. A highimpact event. Blue is where we are thinking greater than 6 inches. 36 inches into new york city and 6 or more in boston. Does not look good does not look good on the highways. Also the airports, rain and snow will cause problems at these hubs. And if you are at another airport they will be waiting for your flight. It may not come because of the equipment having a hard time getting out. Travel is going to go downhill on wednesday. On thursday is everything supposed to clear up . It will be much better on thursday. Wednesday looks poor. Thursday should be dry. It should settle down for turkey. Kind of chilly. Wait until early thursday morning in boston, new york, selloff you, d. C. Philadelphia, d. C. It should be ok. For the west, a different story. East, big improvements on thanksgiving day. We will make sure we had our Winter Weather clothing in our shovels. Mark mancuso, accuweather meteorologist, on your thanksgiving weather. Speaking of thanksgiving travel, without thanksgiving shopping. The roast largest retailer might be facing a management shakeup. Oops, twitters ceo tweets at a private message on business strategy. Details ahead. A fascinating story. Twitters new chief Financial Officer anthony noto had an oops moment. Noto accidentally tweeted out about buying a company. I still think we should buy them. He is on your schedule. We will need to sell them, i have a plan. A Spokesman Says it was meant to be a private message. Joining us with more on this gaffe is tom. Its more than just a gaffe. How difficult it is, even for their own management, to use some of the features on twitter. Have we triedmes to search for something and put out a tweet or tried to message somebody and send something publicly we regret. Most of us are not as prominent as anthony noto. Fo, he should know better. You do not show your hand as a dealmaker. You do not want to let the counterparty know where you are coming from. Clearly an accident. Whoever that was absolutely knows what the intentions are. Im not sure whats going to happen with the deal. It makes for interesting fodder. It does. Isnt this called fail, direct message fail. It is easy to accidentally send a message when you meant to send a tweet or vice versa. It has created a problem. Can all think of instances where we made mistakes. Woulduld think twitter find a way to make it easier to send private messages, especially in a world stock gaffes. Something like are you sure you want to send this. You want to make tweeting fluid and easy to jump into the conversation. Our private tweets need to stay private. This is why Companies Like facebook are spending so much pps that messaging a make it easy to have conversations on the side as you are part of the public conversation. Having said all that, if you know twitter, you should know the difference. If you work at twitter, you ought to know. You can only cut him some slack. Is this going to hurt him . I dont think so. If this was a really big deal you would think it would undermine their bargaining position. Lets be honest. Anthony noto has already become a very public face of twitter. Very prominent on the calls. As you say, from Goldman Sachs. His credentials are very clear. This is a very minor gaffe, in my opinion. Find, over will time, let people will look at is his reputation. How is he managing the finances. We do not know what, hes talking about. We do not. People have chai to get on there and see who is he following. He followed people from a company, a new service for young people. It is interesting and it has raised intent around the company. There is no way of knowing and no one is commenting. Aren a separate note, you watching the ferguson press conference. On twitter, it exploded. Lohs pressing mccul conference. D. Was watching the fee this is something twitter experiences with big news events. How do they leverage that . A way to follow the conversation in a public arena, whether it is a press conference or a sporting event. These were photos that were on twitter last night. Exactly. You and i were talking, you are watching tv and following it there. You are following it just as closely if not more closely on your twitter feed. What do my friends say about it . Theire they what is conversation. It is just as valuable if not more than the conversation happening on tv. That is something twitter demonstrates time and time again. How do they monetize that . That is the secondary and how do you do it tastefully . You do not want to monetize ferguson. You do not want to put ads in the twitter feed. It is a delicate dance. We will see some very interesting things from twitter in the coming days as we head in to the holidays about ecommerce. Great to see you. Aereos assets . Our exclusive interview with chet kanojia. Aereo is down, and at trying to fill the gap aereo has left behind. Aereo may have fallen, the legend may live on. That is what founder and ceo chet kanojia suggested to me yesterday. I think we definitely feel like we brought the conversation to the forefront. The court there are Court Cutting there are cord cutting forums everywhere. People are buying antennas. We raised the question in consumers minds, is very differently to skin this cat . I dont know what happens after this. D cutting startup operates a little bit differently but similar to aereo. You connect a 200 settop box to your network. You can record over the air broadcast television and watch it from any mobile device. Mark eli is the founder and ceo of simple tv. At the least, can you say that aereo paved the way for your company . Was at aereo tapped into consumer desire to get broadcast content, great tv content, on all devices. They created a National Dialogue around that, which is fantastic. It is. Now you see everybody going towards video streaming. The biggest difference between you and aereo is simply that you have your antenna within peoples homes. It is not stored in some warehouse, which is how aereo operated. Fundamentally we use the power of the cloud to help manage the services and managed the connections. But the capture point, where the tv is recorded, it starts in a users home. Was there ever any point where listening in on the aereo conversation at the Supreme Court, that you thought your Company Might be in danger . I dont think so. We followed the case with a lot of interest. That where weeve sat was very close to or identical to what devices like tivo do. When you put a dvr in the home and capture content. We felt we were bringing the dvr concept into the 21st century. In a way that echoed how things operate today. We mentioned barry diller, at theked aereo, was Supreme Court and has been every step of the way with chet kanojia on this company. I want to play one other segment of the interview where chet kanojia mentions his relationship with barry diller. I loved every interaction i had with barry. A greatremendously mentor just by observation. In terms of how do you react to certain things. How do you overreact, how do you under react. What did he tell you . Did your best, something good will come out of it and has already come out. Do your best and find out the right path. Let me know if i can be helpful. How helpful was it to have a media titans like barry diller in this space . It is essential. It points the way to what Consumers Want and where technology is going. Having people that are willing to step in and innovate helps everybody. I think that relationship meant a lot to the aereo folks. Having people who understand media is helpful to everyone that tries to move the ball forward in this area. For simple tv, what are your plans . Are you getting aereo customers . We are moving more technology to the cloud, lowering the cost of entry for the consumer and making it easier. We are expanding outside the u. S. Looking at europe and will be rolling out services there in the First Quarter next year. We see this as a global phenomenon. Consumers everywhere want instant access to content wherever they are. Thank you for joining us, mark ely, founder and ceo of simple tv. H that broke the internet. Sorry, kim kardashian. There is a new viral sensation in town. The big number, after the break. Todays number. 2. 2 million. That is how much Media Exposure nike has gone from the unbelievable cast sunday night beckham, jr. Made this amazing grab for a catch. Beckham was wearing nike gloves. Nike tweeted, drop jaws, catch everything else. With a link to where you can buy the gloves. Some pretty talented photoshop editors. Bloomberg is on the markets. Equity futures are slightly higher. We just had a second grader of Third Quarter we just had a second rate of thirdquarter gdp numbers. Consumption up over 2 . That bodes well for the Holiday Season. On the markets again in 30 minutes. Countdown to black friday is on. We will hear from the ceo of the Home Shopping network. Hsn on how they are preparing for the Holiday Season. More on my interview with aereo founder chet kanojia. Why he thinks the legal system, the courts, were afraid of his company. You are watching in the loop, live on the number. Streaming on your tablet and bloomberg. Com. Welcome back to in the loop. 30 minutes away from the opening bell. Breaking news on caseshiller. The caseshiller numbers are out. For home prices in the top 20 metro markets. This measures housing recovery in september. 2 months back. A breakdown. S we are continuing to see a slowdown in price. Gains a deceleration in home prices in september. A gain of. 3 on a month on month basis for september. On a year over year basis, the a decrease from august. The northeast region saw its first monthly negative return since december 2013. Because of weakness in boston and washington, d. C. Est west and the southw are seeing gains strain. The south is the only to see growth, led by florida. S p futures up at the moment but before the report. Thank you, scarlet fu. Heres a look at our top stories. Futures indicating stocks will be higher. Hi after the case shiller numbers are the government said theeconomy grew faster in Third Quarter than previously forecast, gdp grows at a rate of 3. 1 . Almost 4 . 9 , calm in ferguson, missouri. Chaos overnight after the grand jury did not indict a white Police Officer after the death of Michael Brown. Looted andwere police cars were burned. St. Louis county police chief john belmer. John belmar. There are a dozen buildings that have been set on fire, total losses. There are two police cars that have been basically melted on the road. Weve had a lot of incidences with officers being hit with rocks, batteries. 150ead i heard about shots fired. President obama urged protesters to protest peacefully and caught on police to exercise restraint. A story of Insider Trading from the fbi. An analyst at citadel told agents he made millions of dollars trading on information from an inside source at dell. Neither the analyst nor the dell employee or suit or prosecuted. Authorities did not have evidence to charge the analyst. Nine people at five firms were eventually convicted for trading on tips from inside dell. Lets count you down to the open with the top 10 headlines before the bell. Matt miller and alex sherman joining me. Number 10, the steve jobs movie that will not go away. Is there another . Pictures, we were talking about the second one that was going to be produced by sony. They let go of it. Universal pictures has taken it up. A myopic of apple cofounder steve jobs. It has been a Musical ChairsChristian Bale has passed. He opted out. And leonardo dicaprio. Michael fassbender. What steve jobs would have thought about all these hot guys playing him. Demanded not shower. The man did not shower. It is based on water isaacsons biography. But it will be loosely based because it is written by aaron sorkin, who showers six times a day. You are steve jobs fatigued on movies . I did not see the first one. I love apple products but i do not to see a movie. There will be a lot of walking and talking. I love the book, that was enough. Number nine, red box announcing plans it will byrease dvd rental prices 25 . Dvds will cost 1. 50 instead of 1. 20. The Parent Company saw shares jump 12 . Analysts calculated it is still cheaper to rent from red box. 99n it is to have an 8 subscription from netflix. If you are watching dvds it is cheaper. Price versus quantity. The idea is that the price for this and maybe fewer people will watch. Who is watching red box . Clearly people are. They have about 600 million in revenue a quarter. Theyve had a rising revenue every quarter except the last two. For the first time six months ago they started seeing a drop in revenue. This will boost that. If you are watching dvds i dont think if you you care. This might be a great private equity play. If you are going to stay public, boost growth. Maybe Warren Buffett will combine it with duracell battery. An eastffers from mentality. Broadband is very secure. Netflix is an easy way to get content. In other hearts of the country, broadband is unreliable. In michigan, where . Broadband is everywhere. No it is not. Rural areas, you are right. Networkre getting dish and red box, that type of customer. 8, a bloomberg exclusive with aereo ceo chet kanojia. The Company Announced it would file for chapter 11. I spoke with chet kanojia in his final exit interview. I asked whether you see similarities between aereo and napster. I think both companies, and others in this area, you think of them as not causing the change but reflective of being the bellwethers for articulating that the change is required because it is already happening. You can make the comparison. Napster tried to disrupt the Music Industry and they got crushed. Except napster was popular. As much as i like chet kanojia, hes a great guy. They were shut down they had about one Million People waiting to subscribe. Maybe not so big that they were building. Alex makes a good point. Those of us who are old enough will always remember napster. I doubt it will be the same with aereo. Youre two guys. Frozen. I adore this film. The most coveted toy for girls. Barbie from the number one position for the first time. According to a survey from the National Retail federation. 20 of parents plan to buy frozen gifts, versus barbie, chosen by 17 . Plays]t go idina menzel, who sings this, was singing in our courtyard. I got goosebumps. Its an amazing song. The franchise is incredible. Mattel has got used to having barbie as the number one toy. It might be time for them to let it go. [laughter] mattel does own this franchise for now. They make these dolls. Its going to shift to hasbro in 2016. Is that what we are getting you for christmas . I already have a full line. Chief merchandising officer is set to leave the company. Frozen toys. Big category for walmart. Theyve been having inventory problems. Heads are starting to roll. Right before the Holiday Season. You wonder what is going on. We will see if they have a strategy shift in 2015. Maybe it is to the man. He was passed over for the ceo. The u. S. Ceo. He was chief merchant in canada and then the u. S. Walmart sales have not been on fire. He was not picked for the ceo role. That is why hes leaving. Walmart probably has their strategy in place. They probably have since the beginning of the summer. Him leaving is likely not going to affect what walmart is going to do. It is too late. Their strategy is to pay their employees as little as possible and put pressure on their suppliers. Every time you go to walmart that is how you feel. Our countdown continues with plans at hsn and how it to keep you on the couch this black friday. We will be joined by ceo mindy grossman. We continue our countdown to the opening bell. Time for our deep dive. Whichme shopping network, thrives on consumers not leaving their couches. Sales for Clothing Stores and online retailers have been stagnating. Electronic sales were down last month. Hsni is broadcasting a different picture, Holding Strong with 13 thirdquarter growth on online sales. Ceo mindy is hsni grossman. Good morning. Season going this to be different than what you saw last year . What i think its going to be different, lets put it this way, is going to accelerate even more greatly, is mobile. Not just on the couch. Our customer is interfacing with our brand 24 hours a day three digital, mobile, through and through the live show. This is the most personal device anyone can have. It is being utilized. We expect mobile sales, which in the last quarter grew at 46 and now is 17 of our total company sales, we expect that to accelerate greatly. Are they buying Different Things on mobile . Is it accelerating, are they making bigger purchases . What are you seeing that is different . Our customer is comfortable, whether they are making a 20 purchase or 1400 purchase on the device. Consumers are smart and they understand all the components of value. It is not just about price. We spent the last year per we spent the last year planning for this quarter. It is about exclusive content and experience. A double down in our efforts to create mobile and digital experiences. That is what we are seeing. For us, how we differentiate from other retailers is we make the Shopping Experience personal. Mindy, we mentioned apparel and some months we have seen lackluster growth in clothing. Particularly womens clothing. Electronics have not been big sales either. As you are looking at the categories, im curious whether you might start to deemphasize categories like electronics, which are becoming lower and lower margins. And emphasized some highermargin products. Strength across all our categories. If you look at this weekend, on saturday, 150,000 sets. On sunday, 100,000 pairs of jeans. Beats headphones we had as an exclusive configuration. I agree on electronics, if it is about a race to the bottom price, that is not where we will put our investment. We have worked with hp, samsunb, beats to haved exclusive values. The element of exclusivity and the customer knowing that is what they are coming for is what is driving our business. She is responding. On celebrities, you have partnered with keith urban, selling a guitar line. A makeup line from tyra banks. You have got Britney Spears and others. These celebrity partnerships you youputting together, are seeing sales accelerate faster than your overall sales when you partner with a celebrity . Entertainment is a core component of our strategy. Of experiences. For example, when we launched tyra, we saw an 18 increase in increase innd a 40 times she viewed the show. We saw a younger and more diverse demographic. We have keith urban coming back. We are launching Shaquille Oneals watch line. On december 15, we had damon from shark tank and debbie from goldiebloxx. We have a show about the best products from entrepreneurs. I dont know if my credit card can handle it. We have 24 hour jewelry today. Im there. Mindy grossman, hsni ceo. Our countdown continues. Welcome back to in the loop. Bringing you the most important stories before the bell. Matt miller and alex sherman joining me. Number4, arent you on a diet. Yes, a weightloss contest. Is going to tell you how guilty you are going to feel about everything you are eating. From the popcorn at the Movie Theater to the burger at the restaurant. I was reading some of the calorie counts for some of the food at a regal cinema. A bavarian pretzel, 480 calories. 80 calories. They started doing this years ago. I remember walking into a dunkin donuts. I used to get the chocolate chip muffin thinking it was healthier than a doughnut. It was 300 times more calories. I firstember when discovered that a large popcorn and a large soda or over 2000 calories put together. Im glad to have the information. Dont know that, i whether to laugh or cry when i think of our modern regulatory society. My producer just said you lost 4 pounds in three weeks. I am on an allbeer diet. Are you checking the calorie count . Number three, hard admitting it failed to report more than to0 injury and death claims u. S. Regulators. That would be one of the biggest violations in history and could lead to a record fine of 35 million. Thats a head scratcher. Defined as not seem like much. 35 million . That is incredible. This is a major screwup. Deathsd not report 1700 or casualties, not necessarily deaths. 35 million. U. S. Regulatory structure. This modern brazil bureaucracy that has gone out of control. You have to have a japanese s. Policesend u. Reports to the national highway traffic and safety administration. Betterthey not have access to this Police Reports than a japanese manufacturer . A great point. Number two. Twitter. Publicly tweeting out about a plan he had to buy a company. I still think we should buy them, we will need to sell him, i have a plan. It erupted. Who was he talking about . That is going to be my job as a reporter, figure out who he was talking about. Hard to say. Amazing that he misused twitter and that is how we are finding this out here at the cfo of twitter and he formerly worked for Goldman Sachs. Maybe that is where i should start. A love not give you confidence that they do not even know how to use their incredibly simple product. How do you publicly tweet something . How many times have you emailed somebody by mistake . This happens. Ago. Couple, like 10 years thats the hardest part of twitter. Bloomberg is on the markets. Heading for another record we will be back in two minutes. Welcome back to in the loop. Lets get back to bringing you the most important stories before the bell. Matt miller and alex sherman joining me. Drumroll, number one. David teppers 20 Million Hedge Fund plans to return assets to f the year. His fund has been one of the best performers. Meanwhile, a new report from Goldman Sachs says the average hedge fund has lost 1 in a year in which the s p has risen by 13 . Many of Hedge Fund Managers are putting their money into equity Consumer Discretionary stocks that have been poor performers this year. It is like the investing christmas bonus, right . I put my money there and there is my reward for the year. They have actually done well. Great reward that may be says something about how much money he wants to manage. Maybe he wants to keep that limited in order to keep performing the way that it does. Many of them get too big. Exactly. Especially when they have had big successes, the money rolls in and it is hard to say no to that liquidity. On the flipside, why are investors still paying those fees when they are getting subpar returns . I think a lot of the Fee Structure is changing from when we were kids. When you are investing in hedge funds . [laughter] also, no currency comes close to the dollar in terms of appeal, with net bullish dollar bets now at a record 48 ilion dollars, outperforming the euro, the yen, the pound, and every other major currency. Steve, i know that you like europe. But if you just judge by where people are putting their money, they are still betting on the u. S. As the outperform her. If you could imagine all of that. Manual. Probably they could do the same thing. The strength of the u. S. Dollar, we are in a central bankers world. The United States has tapered qe, but we are still in a very accommodating environment. Ae japanese double down couple of weeks ago on their qe. The europeans are going cap to get very busy very quickly. The European Central bank has to start printing euros. Theould be the hope for weakness of the euro that gives them cyclical recovery and export strength. The ability to look at Better Companies in europe, because the European Central bank is it because their currencies so we they will do what mario draghi wanted to do . I was actually looking. I read the story that betty is talking about and i have been thinking about the fact that the euro is going to weaken. It is cooled you want to buy european stocks when there is blood on the streets, right . I looked at a couple and i found some that actually purchase european stocks that heads the currency risk and i was wondering what you think about those kinds of investments. Multiassetl we do strategies. Looking at globally diversified multiasset strategies, that would be one where from the bottoms up alpha perspective the stock pickers would Fund Investments like europe. Opportunitiese for future growth, and understanding that in the currency basis there is a risk there. Within our portfolio the ability to manage the risk and get some of the better stocks where valuations are more of an active environment for central bankers governing next year as well as this year and you need those more nimble active strategies. Are there particular sectors you are looking at . Not broadbased. There is the challenge nations. Greece, italy, portugal. All the places i want to go. I would as well, but also northern europe, in the terms of anybody who is going to potentially see a bounce from a cheaper currency, but also a stimulating European Central bank where they are going to create more funding and more liquidity within business. There could even be some Retail Consumer oriented sectors in the medium term the benefit from this. But that really is an name my name, casebycase, Balance Sheet by Balance Sheet situation. We were wondering a lot of times you come on and recommend active investing because, as you talk about in your book, it is in your interest. I wonder, at russell, it is not always, right . Do you sometimes recommend more index oriented investing . Exit is not either or or, it is what makes sense in the environment. There are a lot of budgets that we need to be sensitive to and what we have found for a lot of people is that active and passive to create the total portfolio where you can say what are the pockets of risk that we identify . Where do we exploit risk . That becomes global. Sometimes its effective in another market cycles it might be more passive. Give me that scenario for passive. I would think that for clients that want a broad exposure without the ability to do research in emerging markets, the more esoteric or exotic areas, they might want to get exposure by looking into the path of opportunity. But they also might want to spend their budget differently, doing the reverse, going passively in the market and doing a lot of the Research Budget allocation in areas where they think they can exploit. It is that great conversation about where they think the risk is. That was the budget you were talking about earlier. Steve, so great to see you. News in the world of billionaires. Alex, you can speak to this, the Harbinger Group is going to resign. Tough sleddingn for phil falcone over the past seven years. People unfamiliar, he tried to invest a lot of money in this new wireless network. It ended up having gps issues. It went bankrupt. They have recently been negotiating a settlement out of their debt personally. It looks like something may worked out there. Falcone did not like to deal. He wanted control, it looked like he was going to lose, now we see this today. He has given up . Apparently. We will have to hear from him directly about his thinking, but it was just a series of bad rulings, bad decisions, bad outcomes for him. We will have to see. He has a lot of money, obviously. And it sounds like you will get more. My producers are telling me he will be getting 20 million in a lump sum to exit harbinger. He is a billionaire. Thats right. But it is just a facesaving move, perhaps, as well. Alex sherman and matt miller, much more ahead, my exclusive interview with the founder and ceo of area, telling me the real reason he thinks his company lost in the Supreme Court. We have a look at our Top Technology stories on the bloomberg west radar. The chinese government, shutting down a popular website that offered hbo programs for free. They will show series including boardwalk empire and game of thrones. Someone has hacked the sony computer network. According to a person with knowledge of the matter. To the sent a message sony Network Morning the private data would be released as sony did not meet undisclosed the mans. We have been talking about twitter all morning. The cofounder is not concerned about the management of the company. This year dick costolo has replaced the coo, the cfo, the head of engineering and head of products. For more on both, heres emily chang. From day one. I have always said, and i think that said this recently, but you know, twitter needs what it needs when it needs it. I have always thought of twitter as a living thing. It needs who it needs when it needs them to guide it. That is really what the job of the executive is. Just guiding it. It has this life force of its own. Well, as we have been discussing, i sat down for an exclusive interview with the theer and ceo of aereo, service that filed for bankruptcy last week after the Supreme Court judge that their service violated copyright laws. He gave me the true underlying reason that he thinks the legal system exists this way for his company. Was think that there novelty, that was a big issue. If you were new or different, you must be scary. Obviously i have no idea what goes on inside. You know, novelty scares people. I thinknd of the day, we need to step back and say what did this Company Really do . It was opening up a marketplace and we were absolutely right. I think it was an incorrect decision, from my perspective. To the extent that there was discomfort from my perspective, to the extent that there was , congress is perfectly capable of fixing this and, in fact, the incumbents have a lot more control over the congressional process. They spend a lot more money and have gone around the block a few more times. There are multitudes of problems , so maybe they should. To be clear, obviously they have a perspective on this and i understand that. It. Ver you look at it is what it is. The technology was not intended for any full content. It was only specifically for broadcasting be. Obviously that didnt succeed. You know, the consumer having a right to an antenna. It obviously doesnt doesnt matter if the handheld is on my roof if the antenna is in my roof when the handheld. I am releasing that specific development. How you do it doesnt really matter. If it looks like cable tv to accompany, we must treat you as such. And you must pay for the content. And that is where it is even harder to understand. The compulsory license, which is what you are required to pay under copyright law. Challenge was that the market involved in the early and and that is not copyright law, by the way, where we were sued. There is this mishmash of competing regimes that came together. I think it is obvious that from the day that we started as it existed back then. A mechanism in which there was a framework to power online providers and we would have done that, but it didnt exist. Therefore we had to create that argument, that question, that opening. You know, we took the approach that we took because we thought it made the most sense. You have been immersed in this world for three years. Should content be free . Should it just be free . I believe in the market. I believe if the content provider wants to charge 100 per month for that, they have every right. If they want to provide it for free, they have every right. If you are a broadcaster broadcasting free to air to a puter with an antenna those companies were not broadcast we did not do this with turner or hbo, anything like that, it was very specific to broadcast television. They would like 1 million per hour for their content . Great, if the market bears it. Again, that was the founder in ano of area aereo exclusive interview. Speaking of entertainment, coming to a theater near you, calorie counts. The government, imposing new rules on Movie Theaters. There were some big numbers involved. Regal, a bavarian pretzel contains 480 calories. A plate of not chose, 780 calories. A large popcorn . That packs a massive 1200 calories. Our bloomberg journalist joins me now, she wrote the story for bloomberg and joins me from washington. Why now . Why is the fda doing this . They are doing it now because it started way back in the Patient Protection and Affordable Care act. We call it obamacare. Labeling rules passed under that law. Years toas taken a few figure out exactly the best way to implement it, who to include and who not to include. They are trying to get at some of the obesity challenges in the u. S. Maybe consumers will read these and make some better choices, and also some of the restaurant chains might be able to make some menu items that are a bit healthier that look of it at or on the boards with the calorie counts next of them. I, for one, hope that it does change and we get healthier offerings, but is it time to hit the Movie Theaters hard . I think it is still yet to be seen whether the Movie Theaters will people will walk in and decide that they dont want that popcorn or that they may be one a smaller popcorn. There have been some spaces in the cities that have implemented similar rules around menu labeling, but they have been in a limbo for little while while they waited on the fda Jamaican National standard, since they knew it was coming, so we will have to see how it plays out in the decisions people make a snack at the Movie Theater. You mentioned restaurant chains, grocery stores, they might get pulled into this as well. Do we know if there are going to be any exemptions Going Forward . There were some exemptions. Now, really, there are fewer. The fda put out some draft rules in 2011 for people to look at and comment on and make changes to. Movie theaters will actually exempt were exempt the first time around, now they no longer are. Also ill call it averages. The fda is doing this. They obviously want people to be healthier and make healthier choices. Do they think that this is going to be a keying gradient, so to speak, in helping people to . T obd obesity ingredient is the right word, it will be part of a larger plan, possibly, for other steps to take. This could be a step in the right direction, helping people out if you are trying to lose weight. You want the calorie count to be helpful rather than looking it up online. If the companies are actually putting Better Things for you on the menu, it could make a dent, but i dont think anyone thinks it will solve the problem. Not by any means. Anna, thank you so much. More ahead on rupert murdoch, betting on indias real estate boom. The latest decision for the news corp. Portfolio, next. The Global Outlook in india, the real estate market, murdoch to acquire theng operator of realtor. Com in the u. S. New chairman is shaking up things two months after taking over from her late father, anna burton has replaced the ceo into directors of the spanish bank. All but certain to take over rio tinto to create the Worlds Largest mining company. We spoke to a number of hedge funds who said last month that they were abandoning their bid for rio tinto. That does it for today. Tomorrow we will continue our conversation on the future of media and technology with the ceo of tivo. We talked to a Venture Capital firm crossing arbors for tech investing tomorrow at 8 a. M. Eastern time, right here on Bloomberg Television. 56 minutes past the hour, time for Bloomberg Television to go on the markets. First data ligety index is here and you will see that we have you know what . Take a look at apple first. Year to date, up 50 . Not a bad gain after 2014. Reached 700cap billion this morning just after the opening bell. Shares, as you can see this is one, they have been on a tear for a long time. On track for their best annual gain this year since 2010. Now lets take a look at the but Broader Markets. Once again, not Much Movement on the Dow Jones Industrial average. 2007 p 500 is unchanged at. These are records, even if you only 31 hundredths of 1 three 100s of 1 , that is again. Investors have a lot to be thankful for this year, it may be headed even higher if history has anything to say about it. Mike reagan joins me with Historical Perspective on something that we talk about every year in december, the santa claus rally. Like you said, it is a very wellknown trend. Not just the size of the game, but the frequency. Time stocks the have gained in december since the postworld war ii era, and what is really fascinating is that the trend seems to have strengthened over the years. If you look at decembers since 1900, the average gain was less than 1. 4 , but since 1990 the average gain is 1. 9 . Over the last five years it is 2. 4 . Maybe it is a bit of a self fulfilling prophecy, people really believe in this. Is it unique to those places where santa claus delivers toys . Is it an american, western european position . Its not. They did a comprehensive study looking at Global Benchmark indexes and they found that for 18 of them december is historically the strongest month and of those 18, the u. S. Is actually the weakest return among them. Argentina, which is a volatile market with doubledigit percentage gains that are not uncommon. December in argentina, the average is 11 gain. Turkey, about 9 . Of course that is on 30 inflation. Exactly. The same goes argentina, i assume he makes it down there . Delivering toys to the boys and girls who have been good, which i suppose is questionable. Why are people so eager to buy stocks in december . This mentality of there being a rally that i want to get in on . That is part of it. A lot of people get yearend bonuses that they may invest in in december. Some managers tend to window dress and make their portfolios look like they had winners all along. In sure, there yearend performance might not be as bad as it could have been. Politics often calms down in december. Geopolitical issues. It is just the holiday spirit. We will go out on that. Thank you, on the markets again in 30 minutes. Builtup tone build holcomb call it christmas, and now he is stepping down as the ceo of the publicly traded Harbinger Group. Mall operators want you. They will do anything to get shoppers and the stores. Taylor swift, her complaints are just the tip of the iceberg. Facing billions in losses because of copyright laws. Good