Evoke on the larger spending bill. Here is john boehner. The appropriators did a marvelous job and i wish it had been done last week but it wasnt. Here we are and im proud of the work theyve done and look forward to passing a bipartisan majority in the house and senate. Democratic leaders agreed to rollback rules preventing banks from making risky derivative trades. Senator Elizabeth Warren and others call that a giveaway to wall street. According to a person with knowledge of the matter regulators have found that Deutsche Bank and barclays may have used our rhythms on the Trading Platform to manipulate the rates last month. Algorithms on the Trading Platform to manipulate the rates last month. According to the wall street journal, ebay may hire fire as much as 10 of its workforce. The job cuts may be part of a plan to make ebay and attractive takeover target. The nfl has implemented a tougher personal conduct policy. Owners are voting to take away some disciplinary power from commissioner roger goodell. The first peertopeer Lending Company to go public begins trading today. Expecteda larger than 870 million with shares priced at 15 per share, that is above the range. Joining us now is our ipo reporter. Like they were pricing it for a pop. You would want that . People say the initial valuation was a couple of weeks ago, that valuation was priced to pop. It was conservative based on their late latest rabbit funding round and where they could have priced. They raised that price range and then priced above that range. Some of this is psychology you want people to get a sense that there is strong investor demand and one way to do that is to price it above the range. That of course makes a more expensive valuation so it is to be determined whether it is priced to pop that will find out. Tell us more about lending club and the ceo, how much does he stand to gain and what does he plan to do . He came up with this idea in 2006 when he opened a credit card statement and saw that he was being charged 70 interest while holding deposits at the same bank for about four to 5 . He said there must be some way to narrow that spread. This peertopeer lender inserting more technology and therefore making it more cost efficient. What he stands to gain is quite a lot, he is the founder of the company and it is the biggest in the industry with a 40 market share. He is looking at 200 million stake in the ipo base. Ipo andover the Alibaba Morgan Stanley was one of the underwriters as well, and they used the alibaba model . In certain ways, there are a couple differences, alibaba in terms of bankers had five bankers five or six that split the fees equally and divided the work. Lending club as a more traditional process, they had one lead bank that took the reins and that was morgan stanley. A similarity is that their Business Model they are both marketplaces which is that they hold a platform to bring two types of people based on supply and demand. Alibaba has more to do with ecommerce where lending club has more to do with finance and bringing borrowers and lenders together. It is a similar model but a completely different process. Much,. K you so moving and shaking this hour Jeffrey Smith he is at it again, he may be setting the stage for a merger of Office Supply retailers staples and office depot. He is taken a 5 stake in staples and has boosted his sake and office depot to 10 . He says the shares are undervalued and the industry has been under pressure to consolidate. And office depot are being challenged by retailers such as amazon and target which sell Office Supplies at a discount. Oil is rebounding slightly after trading near its lowest point since 2009. Look at this chart, it has been a roller coaster ride that is mostly down but the plunge also raising 1 trillion worth of global equities. Is also having an impact on the state level as well. Oilproducing states are bracing for a hardhit to tax revenue and adjusting their budgets and oils new normal may prove to be very tough to run the government. Taylor rakestraw just now and covers the municipalities. Which states are likely to be hit biggest . The ones we are looking at our alaska, new mexico, louisiana, texas and north dakota. What you need to look at is what do they forecast the price of oil heading into the budget season and what percent of their general fund revenue comes from taxes. If they forecast oil at 80 a barrel versus 100 a barrel they will have different problems Going Forward. The have to look at their general fund revenue, they get 5 of the revenue from oil or 85 , that will also vary the income tax. Those states you just mentioned, they had predicted what . 85 oil . It varies, in alaska they predicted 105 a barrel and they get 80 of the revenue from oil related taxes. On the other hand in north dakota and texas they are very conservative and had projected 80 per barrel and they only get 5 of the revenue from oil related taxes. So they are going to be doing better. You had a few states come out and revise their forecast lower. Louisiana came out last week and cut revenue by 2 because they said they had over projected the price of oil and theyre Forecasting Oil price drops for the next few years. As you light up expenses with revenue youre ok but clearly this drop is going to be a problem. I do think anybody predicted 60 oil this quick or even where it is headed, but isnt there kind of a flipside to this which is the consumers, they are spending more they are seeing lower gas prices so that has to be a benefit for the state, one thing that the states are looking at estate tax collections, oil sometimes is the word largest revenue stream for the states and incoming sales and tax revenue are one and two. When im paying less at the pump in i spending more and how does this affect my sales tax, Going Forward lets take a look at the state sales tax revenue and see if that offsets any decline in the revenue drop. Well see that the come. Becky so much taylor rates of bloomberg news, much more ahead as i mentioned the house on the verge of passing spending that would prevent the Government Shutdown will talk with one very outspoken republican congressman steve king who is voting no to the bill. Plus the mcdonalds menu going on a diet, the latest attempt to boost sagging sales at the u. S. Restaurants. As weve been counting down all week, the house is going to vote on a 1. 1 trillion dollars growth will avoid a Government Shutdown by the end of the day. Republican leaders in their confident in the outcome of opposition from the right and the left hasnt out. Or this is a done deal it looks like there could be a couple surprises . Still reality is there is ,. As a, there are some conservative House Republicans , weare not going to vote know as well there are House Democrats opposed because a particular policy provisions within the bell. Bill. John boehner said it is a good bipartisan bill worth supporting. It is a monumental achievement for showing how we can work together. We can get the job done. Today is theestion math, how Many Republican defections weatherby and how Many Democrats will actually vote for the bill . If they do approve it they will also vote on a two day extension of the current resolution and that would allow the senate time to vote as soon as friday or saturday. What of the provisions that bother the democrats the most . Capping the list is the change to doddfrank, it repeals a rule that forced major banks to move out there derivative trading businesses on their depositary institutions. The banks have been lobbying for this for some time and right now your democrats saying this is a total giveaway. The person leading the charge is Elizabeth Warren. This is not about compromise, this is about reckless behavior. It is about a giveaway to the largest Financial Institutions in this country and it is up to us to say no. Upsetocrats are also very about a change in campaignfinance rules that allow people to give as much as 324,000 to Party Committees that is a tenfold increase from the current cap. The question is whether democrats are so opposed that they stand in the way and risk the possibility of a shutdown. Thank you so much, the chief washington correspondent. You been hearing from peter expressing his confidence. Tomorrow we will pass a responsible bill that keeps the government running. Without the threat of a Government Shutdown this will pose a direct challenge to the president s unilateral actions on immigration when we have new majorities in both chambers of congress. Conservative republicans still oppose the bill saying it does not do enough to stop the immigration actions and now they want to stop it. One of them is steve king of iowa was planning to vote no against the legislation, thank you so much for being back on our program. Call . T heed boehners we have heard this we will fight another day for some time. I river going back to obamacare and steering we will make it and doing it i remember going back to obamacare and hearing we will make it and doing it. It and ding it. It took us a while to get to the and we did end up with the president shutting the government down. This is different, as bader points out your party as john boehner points out your party will have control. When i analyze this from where the votes have to be we would be giving up leverage if we fund all of government except the department of Homeland Security until say february 3 seven you only have Homeland Security leverage to use. If that gets shut off and they will go forward anywhere anyway and issue the lawless edict through uscis. The president wont care if we shut down part of the funding to the department of Homeland Security and our leverage isnt there. That is the bad part am a have leverage and we should put it all into the big cr and do it very shortterm until january 30. We need to cut off all the funding to the things he has the river 20th which are the foundations of these acts. It is all a constitutional violation. I know you will vote no on the spill, how Many Republicans will stand with you . Butight now it is a yes there was an amendment to the rules Committee Last night that had 57 cosponsors and that would indicate that many of them would vote no. I offered an amendment that had some of those and some additional and most of them would vote no and some have not had a chance to sign on to anything. I would guess there is a number of 50 to 70 or more who would vote no and that would tell you the speaker will need maybe 40 democrats. I will pick the democrat votes are as reliable. There will be some drama. 50 to 70 as you say, there will be a lot of drama on whether this bill can in fact pass. We just conducted at bloomberg am a a political pull and it showed that republicans are enjoying the highest Approval Ratings in five years. In fact 45 of americans approve the gop party which is a lot higher than they have seen in years. That good will with the public by continuing to be the party of no. No . Maybe we have that higher rating because the public believes we will do what we said we were going to do. I think that is a big part of it. Goingook at the selection into november 4, there were two big things that the republicans ran on. The first was the repeal of obamacare in the second was to stop the executive amnesty of the president. When we give and both when we oath when we give an to a poll the constitution it doesnt mean when we feel like it. If we go forward to fund the lawless act of november 20 we have missed an opportunity and that goes against us. We will be popular if we do our job as we said we would do our job. It takes 218 votes to block this funding to the president s lawlessness so why not now . It will take two thirds in the house and the senate to override a veto if you want to go that route. Even in your own party and among conservative voices they have been critical about who ,hey believe are rightwingers conservatives and others who they believe are undermining the progress of the gop. We are at a high here in good will among americans, no thanks to people like steve king. Post sheshington writes, there is no place in the party for remarks such as those king has muttered on immigration. She has called you antiillegal immigrant antiimmigrant as well. We know that is completely false and i dont want anyone things Jennifer Rubin knows anything. I would remind those people that have an amnesty open borders agenda that they find a way to be critical of me because they are defending their amnesty agenda. I would remind on these numbers that they dont seem to handle very well we picked up 15 seats in the house of representatives for republicans and nine seats in the senate and a majority and im having people say somehow we were punished for the shutdown the come the president committed or two months ago. We were rewarded for standing on principle and thats how it should be. You will have your ill a Freedom Summit and Chris Christie is going there your iowa Freedom Summit and Chris Christie is going thomas some people call you the king maker, who do you support . I am committed to a level Playing Field and i want people to engage and i want access to candidates and people to have access going into this. Im very much committed to the process and ive long believed you can take the best possible rom material for president raw material for president and they would not be near the president they would be after they go through the full nomination and general election process. Thank you for joining us. Steve king of iowa. The hackers are still going after sony, the embarrassing emails that keep piling up, this time against the ceo. You are watching in the loop live on Bloomberg Television. It is nearing 26 minutes past the hour. About an hour away from the opening bell. Oil prices still at those fiveyear lows. Another read on the American Consumer retail scales. It is expected to be up about half a percent month on month. We will see how black friday sales did. We are on the market again in 30 minutes. Mcdonalds is taking steps to reverse the slump in u. S. Restaurant sales. Eight items and five extra value meals. Mcdonalds sawek those sales fall almost 5 last month. Here is something to tweet about, more users than twitter. It is instagram, owned by facebook. 300 million active monthly users that beat the 284 million users that twitter claimed in october. More inside information about sony on those hacked emails. One studio executive emailed, stick by the side a river long enough and your body and the body of your enemies float by. Asked for a sitdown with the top u. S. Executives. They want to discuss cost cuts, the same thing that download had loebdemanding that dan had been demanding. For more on what will be released, paul sweeney, the director of north American Research for Bloomberg Intelligence is joining me and provides unique Realtime Research on companies and industries. Who knew that you would be analyzing the salaries of sony executives . This is a big problem for sony, not just at a corporate level but at a personal level, hollywood is kind of a small town, and incestuous town so with this type of data whether salaries are how people think about each other it gets out, it can make doing give doing business difficult. Looking at this latest batch of emails between michael mittens and his batch of emails. Dan loeb was maybe right here, that there is some mismanagement going on. What was interesting by the ceo of sony overall, he asked for this meeting between Michael Litton and himself and said on the agenda one was to streamline Sony Entertainment and the second was to modify the Compensation Plan and the third was to valuate the future of sony corp. Of america which sits atop of video games in to tame and music. All of that tells you what . I think it says tokyo is looking very hard at u. S. Businesses from a profitability perspective. When you look at the Sony Entertainment business in terms of box office it is every year number two or number three. Theyre very good at making movies. Look at the spiderman franchise. A lot of good movies get made there and a lot of people want to do business with sony that when you look at the profit margin they are about half of what their competitors are. Sonys operating margins are 6 or 7 why is that . Cost. It is always a cost issue, that is always a challenge than a very high cost business in terms of you got pay people a lot of money, you have got to pay actors a lot of money, and all the executives that manage the business. That has always been the issue. You are sony, you say, listen, i think there is at to trim their. There. To trim makes 3 million a year, double what his boss makes. What do you think of that . But that is not unusual. Following the entertainment this for over 20 years. A lot of people think wall street executives are overpaid or highly confident they did. They do not compare at all to hollywood. The executives, the big media companies, every single year among the most highly paid executives in the area, and it goes right down to the studio lot. It is a very high variable costs business. Thank you so much. We are just getting retail Sales Numbers for the month of november. We will see how black friday sales did. Much better than what economists had estimated month on month. , up 6 10 of 1 . Julie is at the breaking news desk with more. We have seen a big benefit from the drop in oil and gas cases. As our bloomberg economists the first week of october, regular gas is only down about seven cents. By the end of the month, it was down . 27 yearoveryear. By the time you got into november, that is when consumers were really feeling the first effects of that. It looks like that is exactly what happened. The headline number of 7 10 of 1 . If you back out auto and gasoline, many of the auto Sales Numbers came better than in the last month. Gasoline stations, you will see age rob in sales. You back that out, you have an increase of 1 . Better than estimated. Initial jobless coming in and of the varies slightly than estimated. 294,000 last week. The Still Holding below threshold of 300,000 a lot of folks are talking about going into the holiday season. Not as many companies, perhaps letting their workers go. Finally, import prices. Looking at the drop, a smaller drop than had been estimated month over month of 1. 5 and yearoveryear of 2. 3 but and. All right thank you so much. Julie at the breaking news desk with retail sales and jobless numbers here much more ahead. Sounding off on the u. S. Economy and the markets, plus, seasons greetings on everything from mason to sony to everything else. We will have it on our program in just a few moments. Global real estate market. There is a connection and we will tell you about it in a moment. Conditions are fantastic in the u. S. For real estate. Consumption overseas in europe, but also in countries that rely on what is now cheap oil. Owns upscale Retail Properties in paris, mexico city, and also montreal. Joe, everything is great here. We had property players marched through the studio. Miami is great, new york is great, san francisco. But what about overseas . The picture, i would describe it that a dealer put out a new deck of cards. That is being affected by oil, the rising strength of the dollar, technology industry, and commodity. Countries that have exposure to commodities like oil, their suffering they cut their Interest Rates. Amazing when you think about it because recently, they were the star child. If you look at it globally, it was about the middle east and the new emerging market. Now, those countries, whether you look at brazil, russia, china, african nations, oil exporters, and all the sudden you say, wait a minute, i need to revisit. Sure enough, this Little Country not talked about for a few years as anything exciting, was as in isis in america now, probably potentially the greatest story of the next decade. We may advertise that, but i get your point. Now that bloom has come off the road. You have Retail Centers there. Mexico has got to be hit right now by the oil price slump. Are you seeing that reflected in your property there . Certain companies only have internal growth. Young countries, a growing country, a modernized country. They are getting a lot of the Ripple Effects of what happens in the United States here, which is now going to the intel revolution way. What i mean by that is, as a of uber, all the wild evaluation, among the mounts of capital is flowing into the and countries like mexico. You are seeing the valuation go up in those countries . Certainly. The flow of dollar. Only about six years ago, and you have 208, a wild shift. Same thing you see in the United States, all this money, chasing the next uber. More particularly back home, the Ripple Effect in markets like mexico, there are thousands of everyies being started day in the United States. Company, everything but your home. They handle Technology Driven this is at cincinnati. Fly cleaners, the hoover cleaners concept. I know among many passions you have, infrastructure is one. Betting big on infrastructure, i know youre working a lot in new york on upgrading our airports. Did you see this oped by Larry Summers . Will read for you a quote he said, it will take almost half as long to fix the escalator in laguardia as it took to build the Empire State Building 85 years ago. It is embarrassing but true. It is probably a National Issue we have. The Colorado River is starting to run dry. We need to revisit highways and rail here it starts, to me, with the airport. It is pitiful. The fact you could not get a governor or a mayor or president together to do the right thing by one of the most important cut airports in the country, and i am hopeful through our putnization that we will more focus on it and hopefully accelerate it. Award . I hear you won an entrepreneur of the year . Congratulations, joe. Of equities. E, ceo digital is killing all of traditional media. I am joined with a look at the challenges a Radio Business is facing. We will be back. U. S. Ad revenue grew by 4 in 2013. More than expected. The bright spot was Digital Media ad revenue expected to grow by almost 16 so far this year, way ahead of television, which saw less than 5 growth and saw a comparison to sprint where revenue fell. Not as bad as newspapers and magazines. Join me, the secondlargest owner and operator in the u. S. , how do you feel when you see a chart like that . That was somewhat anomalous. The second and Third Quarter were birth both off this year. Why is that . We had big sporting events, the world cup, olympics. Politics, political advertising, why didnt advertising grow as fast as you might expect . Picks, we do not mostly participated in that. That is mostly television. Local television took a lot of thats because the rest of the climate was soft, so they have the inventory. There is generally a waterfall that goes to radio and there was not as much left after the local tv spot and cable were filled. Advertising for next year im a what are you seeing . We think advertising will be up here the question is, how. Uch is it up next year of their splitting their dollars between television and digital and radio and newspapers, what are the Big Questions theyre asking . Figure out how we reach an audience, how we engage with an audience. They have more choices today than ever before. About really in home versus out of home, the in homes they scott a with , and all theable services, online video is feeding into that. Outside of the home, it is really just radio. The other 30 , which historically has been music you buy and playlists you may, is now done through digital services. That is addressable now. Our participation is to really and sell the ads and the other 30 we did not participate in before. Not always take advertisements. They were subscription only when i started. Management, lets start looking at the advertising world and aching ads . It was their plan all along. This was a shift they made a month or two ago im a to create free ad supported product there that is what, customers are demanding. For a custom playlist, that is the way that we are creating that product with them. Right. They compete with spotify and pandora. They seem to be the big leaders here. How does it catch up . They have a head start and it is a question now of trading awareness. The product is terrific. With our platform, we reached 235 Million People a week. We will help get the word out. To broadcastiment their the 225 may people we reached in the billion in revenue there, this is a way for us to complement that. Leo is tried we always try to find an excuse to bring up staying. The music artist. He said about streaming sites. I want you to listen to it. Is changing and i do not think the one we have at the moment business fairly the one that will be there in ive were 10 years. We need something that is a little more at the double. Spotify,models, ardoin what happens when you have music taylor like sting and swift and others who take a bigger stand and they, we want to be paid more money . The artists have every right to do that. It has to be a system that actually works and we believe it will ultimately move more toward. Subscription model if the record labels can have 100 million americans paying 10 a 12th to listen to music, may not industry up threefold from where it is today and everyone wins. It has to migrate more in that direction over time. For the ondemand, i think youll always have it on that support. Also, as expected, the content of our radio stations, we are able to create podcasts. Take on demand content ourselves and put online and access it anytime, anywhere. Radio, will that eventually move digitally as well . Does that work streaming wise . It is content. If you think about it, radio is visibly and in car daytime medium. That will not really change. , it is not an problem. There are 250 million. If it aint broke, you know. All right. Great to see you and thank you for stopping by. The chairman and tel of cumulus media. Much more. The 2015 golden globe nominations just came out moments ago. We will have details on the nominees next. Were talking award nominations. Award season is coming up and it could not come soon enough for hollywood. Till really from the sony hack attack and the emails about Angelina Jolie and others. The nominations for the 72nd annual golden globe just announced. Who better to talk to me about this band scholar scarlett, who loves following hollywood. Angelina jolie was not mentioned in any of the nominations. Maybe it comes out after christmas. Takes after a month of serious campaigning by everyone. A lot of people on latenight talk shows, so get ready for that. Hbo leads all the nominations with 15 and showtime with nine. Takes after a month of serious campaigning by everyone. Netflix comes in with seven. When you look at some of the nominees for best supporting actress, from homeland, from house of cards, and crazy eyes from oranges new black was also nominated in a tv john mark. Orange is the new black is nominated for best tv comedy series. This year, at least actresses were nominated for drama. What they do is nominate them for both categories. Whatever will get you more nominations. Abbey, game of thrones, house of cards. No mentions of madmen as far as i could tell, even though they just aired the first part of their final season. Getting tiredre of that and he is not getting his due. People love this because it is intimate and a celebrity friendly group. People are loose, they have not gotten into the keeping score of who has and who has not one. They get drunk. It is a lot more relaxed. By the time you get to the oscars, six weeks after the Golden Globes are hosted, everyone is very tense and you can see the tension in the room as they announce peopless names and people try to smile for wes anderson,a David Fincher of gone girl, that was a big hit this year. David fincher, in the sony emails as well. ToAngelina Jolie wanted him direct cleopatra, which would start her husband as well as have her kids americas well. That will make for an awkward award season as everyone tries to jostle campaigning. Can you imagine, i didnt say that. Much. Rlet, thank you so the hour. Inutes past Bloomberg Television is on the markets. Equity futures are slightly higher. Retail sales are coming in much better than what economists estimated. It looks like it was a pretty Good Shopping season after thanksgiving. We are on the markets again in 30 minutes. Oil prices continued to punch. Now trading near 60 miles an hour barrels per dollar. Plus, it may be the most alibaba. Ed ipo since lending club. Welcome back. Were 30 minutes away from the opening bell and here is a look at our tops tories this morning. Retail sales rose in november by the most in eight months. Initial jobless claims also dropped last month to 294,000 claims. The Bank IncreasedInterest Rates for the fifth time this year. The bank of russia increased its rate one percentage point to 10. 5 . It has not fallen this much in 16 years. A rapid fall. In washington today, the house is expected to avert a Government Shutdown by passing a spending bill. To pass a measure giving the senate until saturday to pass legislation. Unhappy ts here is senator Elizabeth Warren. This is not about compromise. This is about reckless behavior to the largest Financial Institutions in this country. It is up to us to say no. Leaders of both party are on the board for the spending bill. John boehner mix it will pass in both chambers. Google is shutting down its website in spain. Spanish copyright laws let publishers charge Internet Companies for content. It is googles latest problem in your the eu is investigating for possible violations and they called to break up the company. A billionaire investor got chased off the stage while giving a speech there it happened at the university of berkeley. Began banging on the door and finally, the door was opened. The demonstrators were protesting the death of eric garner and Michael Brown at the hands of police. 30 minutes away from the start of trade. Radar before the though. It was the dutch Olivia Sterns is with us. It has been a while. Got a bunch ahead. Number 10, lets start with this topic in europe. Onjust heard what was going with russia and oil prices and how that might he hurting not only the eurozone, but other parts of the world. Bank,ropean central longterm loans came in at the low end of analyst estimates. Largescaleto start quantitative easing. There have been calls and calls for that. What do you say for that . He does what he has to do to stimulate inflation. 22 of gdp, so it would be nice. We are looking at 2016 as being the Year American companies and European Companies 2013 is going to be slow. Do they get the tailwind because of mario draghi or because actual real demand comes back to europe . Both. You have got the hiccup from russia. And i forget the price of oil. An estimate on this pair number nine, a new report by bank of america, the number over the in the world age of 60 is expected to double from 841 million in 2013 to more than 2 billion by 2050. 2 billion. That is something they say is an investment theme that could change the world. You can imagine you will need more housing, senior housing, more medicine. Dont ignore diverse. When we look at that market, we have been looking at this for the last 10 or 12 years. This is not new. In terms of that, within third party, europe is doing that. In addition, we talk about body parts. As you get older, you need care, eyes, teeth. So i will say it it, you also may need viagra as well. [laughter] question number eight, a lot of changes. Congress brought back safety rules, ignoring the plea of consumer activist. A provision added to fund the u. S. Government error checkers will be able to work as many as 82 hours a week. You i know you are betting big on infrastructure, but we have not been able to get much Infrastructure Investment in the u. S. Both of congress have not been able to come up with infrastructure. We know we need to put money back into roads and bridges and everything else. Think about the aviation system. We have got to do it. Laguardia is a third world airport. I was in singapore, and tokyo, and airports are really so we will do it. Trucks are booming for a lot of reasons. And their suppliers. Number seven, mcdonalds is cutting eight items, five extra value meals from its menu to speed up service and reverse the worst domestic sales slump in a decade. I think the big mac stays on the menu. But this is all part of the changing consumer tastes. Fresher, healthier, less caloric meals, and they do not feel theyre getting that in mcdonalds anymore. Everyone is lining up after aaa. Bullet promises a healthier product. It is trying to do everything they can think of to respond now, hoping they will get customers in faster. I am just not what they are i am not sure what theyre selling is in vogue right now, essentially. One of the stocks i am buying is the cheesecake factory. Keep thinking what youre thinking, but i have to be practical and the rest of the world is not thinking the way you are. Plus, were looking or Ingredient Companies that can take products that accommodate to the changing taste of the american public. We want more food of all nations and the ingredients. Manhattan with a new ceo, 100 100 dollarses, back. Cheesecake factories when the worst offenders when it comes to calories. Is one of the worst offenders when it comes to calories. We do worry about it. Go there and try it. I have been there. Number six, last investor day of the year. In a few hours, we will speak exclusively with a ceo. More people buying cars than ever. 14 million cars will be sold this year. Is that right . No, 250 million in the united , and the market is 20 million in europe and slowing down about 18. China is booming. More power and leslie. It is on its own version of a diet. Are you buying into the actual carmakers . Lyon a little bit of ford and we are obviously looking at ferrari if we like the luxury goods managers, the echo system of lyon a little bit of ford d they selliously looking cards, parts for the cards and in addition, we will be live with ford and we have an interview with mark shields. One of the questions is how well they are turning the production lines to manufacture the f1 50 trucks. Much more ahead because related to autos is the deep dive we have seen in oil prices. Mario will stay with me and tell me how he is investing off of 60. We continue our countdown to the opening bell. We are about halfway through. Number five, lets talk more about oil and how is falling deeper and deeper into the bear market. The governor of Norway Central Bank says that these openness or is facing a Major Economic downturn, cutting Interest Rates now. I am joined again by a legendary investor. Is a huge interest of yours. It is starting to hit these countries. Norway is cutting their Interest Rates. At todaysill import prices about 250 billion. We give our money to countries that are not of his friends of ours all the time. Dennis welle that and iran and russia problems, i do not care. And decides to do something to distract, that would not be good. To the degree that somebody decides to do something in saudi arabia, that is not good. 60 oil is a major plus to the users, the individuals like you and i who drive and to the degree of not only save you money at the test, but psychologically, it is important. America a task that for. Get theirity, theyll bills and they will see how much they save, and more fundamental than that, you feel good when you pay x dollars per gallon like in new jersey the other day i was able to buy for 267. In addition, the users are companies who sell parts of the cards, the companies that spend multipliert is a effect because the money you save at the middle income level, you will have a multilevel. So you are adding onto what . Usersthat context, the would be beneficiaries like auto distributors, but they are to had a really big move. There are Convenience Stores where you buy gasoline like in the midwest. They just reported earnings in the morning and the numbers are terrific. What about costco . They have some stores, but that is not a major part. You get gas and then go inside and you have a little money left over. And in that a pizza that will be very helpful. Airlines will already benefit. That is a costly dynamic to the degree that European Airlines and the Global Airlines have a constant price for travel and the demand is up and cash flows are improving and evaluation go up and make by an airplane. To a degree that the entire structure, the analysts will figure it out. You want to buy those kinds of companies as well. Ofit sounds the first line buying for you will be these retailers. That is correct on the user side and also consumer side. On the other side, you have to look at producers. We are coming in within the next 60 days, a dynamic we have not even a onetime or did be cheaper for companies to sit down with their boards and say, were buying oil on wall street. Out and buy these companies. Xyz stock has gone from 90 to 30. A terrific asset play will be worth more. The strips, three year from now, he still has 71 oil and they will be higher three years ago three years from now. Start putting together a pool of capital, and you will make a mix amount of money in the next years and maybe the 30 days. Everybody will sell their stocks. Do you think some of these factors will go out of his . Class of course. If you are too highly leveraged and you may decisions, this is not everyone will survive, but the strong will get stronger and they will do extremely well and in that context come a american technology, and fracking, have created a change in the world. It has indeed. Stay with me. We will have much more. Walking to the open this thursday. Much more ahead, the house prepares to avert the Government Shutdown. Not everybody is happy about that. Plus, this getting ready to roll out its service. Something will be missing from it and we will tell you what it is. Welcome back. Lets get back to bringing you the most important stories you need to know before the bell. Ok. Lets continue with number four. We have been watching the inflows and outflows of various funds. 800 million sought in long flare longterm inflows now. Down about 2 month over month. I know janice is on your radar. You have been a longterm total holder. You treated a month ago, nelson, when he stepped down from the board, you said, thank you for providing tailwinds. That is something else. The notion of having companies that manage money is fundamental. The total investable assets, public retreated bonds, about 100 trillion, and i these is dixie 5 trillion. With joe sullivan running it now, having been the survey, and hugeg back their stock, it cash generator, even at 54, you have got to buy it. What you think of bill gross . He is built. He is a professional. He is very good. He will do extremely well to the degree he decided to move out of pimco. There is nothing wrong with that. Him 509. Os just gave i would give him money. A couple hundred million dollars. Bill, i will do it if you do home and home. Home and home and you have got my 200 million. Ok. Number three, dish network get them ready to roll out its online tv service. It wants to leave out the broadcast channel. Charlie has been at it, against looking fornst cbs, lower rates. Now, rod casters when i go online. As our colleague likes to say, this is the cheapest man in media. You own dish . We own dish. Youve got to spike to 80. On the auctiont because i am in it. What he is doing is an interesting dynamic. Who will not want to watch cvs and football . It. Not know how he does start changing our habits. Comments asee the few weeks ago when he compared the broadcasters to the horse before the cart . Pay 19. 95 at all i want is clarity of signal in terms of basic. To the degree i look at cnbc and fox as basic, it will be an interesting tugofwar. Power versus power. This is terrific. My 10yearolds do not watch broadcast. Collects that is great. You are a tiger mom. [laughter] 2006 has been a great year for m a. Deal, i know, mariota, you own some shares in both of these companies. Good price, good move . Tryinghe degree you are to get into biotech to position yourself for certain types of antibiotic drugs, we had a report and we had a health and. Ellness fund to the degree they want to own it, they did the right decision for five years. A little hiccup when it judge ruled the stocks are 95. Them ande context of others, the United States has a fundamental problem, global taxation versus territorial. Until they solve this problem, you will still have this. They have thrown a wrench. It is the dumbest thing ive ever seen in terms of the impact strategy. What do you think activists should do next . There is 190 million cats and dogs in the United States. That is a different product and a different line. We will be back with the opening bell in a moment. Others, the united love come back. Lets get back to more stories you need to know before the opening bell. Theing me right before open, ok. We hit our number one story. A 1. 1se expects to pass trillion ending bill. Upset is aimed at losses caused by derivative sales. Elizabeth warren comes out and says, this is bad for consumers and just another reason why wall street is corrupt. Right. Why has she lost the plot . Says, this is bad for consumers and just another reason i do n the Banking Industry in terms of that segment of the doddfrank notion of theole impact on mediumsized and community banks. The journal today laid it out, and i will let you guys read it. What you were saying was quite interesting. The journal today laid it out, and i will let you guys read it. What you were saying was quite interesting. The more regulations, the more the news is tightening around big banks not think she understands what is going like. Might see it that way. A they that is too bad. Will i put my money . I want to put the bank that has the Bigger Capital ratio. I have a bank in Southern California that has been around for 100 years. Because it survived without government help. Jpmorgans are winners. Well banks are winners as people want to play this bashing wall street. That is silly. This is a concern at this albeit a beginning of a republican onslaught to repeal doddfrank. I do not think it is doddfrank. Less regulation, and practical and make america competitive. It is not jobs anymore. I was five years ago. It is wages. We want wages to go up. Stocks are about to start trading. I want to bring in someone who can talk about wages and the economy. Joining me, news. Carl. The fedintroducing spectrometer here as part of bloombergs economics. What the heck is that . A geeky engineer economist title there. It measures were something falls on a spectrum. What we have done is we have taken all of the members of the fed, voting members and nonvoting members, and we assigned ratings to them based or dovish they tend to be. It provides an easy way to keep track of who is saying what on the committee. So where are we now in the spectrometer . What is interesting here is we have got a couple of talks rotating on the committee at the end of the year and retiring next year. If we look at who is voting in the versus who is in 2018, actual average rating of the voters moves in a dovish direction next year. Fixture, g fisher, and there is only one real hawk on the committee next year. This is significant for monetary policy. Next year is likely the year of the great fed liftoff, and we have a more dovish fed next year. So skewing dovish, and may be, slightly arguing the case that the fed would move a little bit later rather than a little bit sooner. I am at the other end of that, but that is a brilliant way to picture it. It is a heat map, edit makes it easy for the investor to look at that. The surprise will be how fast rates go up and the market is not prepared for that, particularly on the short end. The economy is growing at an accelerating rate. Where the engine of growth on a global basis is, we have to be careful about a lot of things. Unintended consequences. One of the things this Research Shows is people tend to underestimate the speed and the timing of liftoff. That is good. T makes the market area what do you see that makes you think wages will develop accelerate faster than expected. If i was running the country several years ago, my focus would have been jobs, jobs, jobs. Notwithstanding that, the private sector in particular has been giving us a great liftoff. We are now starting to see scarcity in terms of qualified individuals. We have to left leave no unemployed behind. To the degree we have loosened up requirements for areas of opportunity like housing where there is structural unemployment, that could be extraordinarily helpful. Howdy thing oil changes that thinking . Asked the inflation factor is obviously a strong dollar and inflationausing the dynamics to be lower. But 70 of inflation is due to wages and 30 is due to other material. It is the wages we focus on and to the degree we would like to participate in what we have created in this country, wages are going up. Provide aces significant stimulus. Falling oil prices, it is an oil price shock. The most important lesson for central banking in the last 40 years is you do not provide resa onetime price shock. Just as it would be a mistake to fight inflation more vigorous silly vigorously, we should not do the opposite and panic just because were are seeing a relatively short drop in oil prices. I do not think the fed should really respond to this. Rather, they should respond to the broader, economic issues, which is that this is a big raise for the American Consumer, something we saw in sales as well. It is. It is a big boon to the consumer. What about for the markets that have been weaned on this great stimulus over the last five or six years . As we get into next year, can the markets absorbed any kind of rates . Absolutely, we cannot see the types of gains we have seen in the last couple of years, but corporate profits, the outlook is positive, stronger consumer spending, stronger business assessment, and not much pressure whether it be for labor, wages, and other inputs like other Commodity Prices as well. That is a strong backdrop for corporate products. As the fed moves also zero in terms of Interest Rates, that is only easing their foot off the accelerator youre not hitting the brake pedal. Are a longo 4 . We ways away from the fed actually stepping on the brakes. When they step on the brakes, that will hurt markets. Camp. Are in the same it is a question of shortterm rates going from three to nine yesterday to 1 at the end of next year. In that context, it is just a it occurs. The day a year ago, i would never have suggested the tenyear today before the christmas of the year 2014 would be 2. 16. It is a dynamic that reflects the global. Read why go as an investor . Nominal profits will grow and the best way to survive will be capital and preserving your wealth and personal powers to own gas cash Generating Companies that have pricing power. I love this. This is what mariota brains. That is bourbon and Tennessee Whiskey. It has got pricing power. A country in western and christian contemporary are a very powerful john the jon runyan and bourbon goes hand and foot and Tennessee Whiskey i was at a meeting yesterday with an array of products, and i did not want you to call me your honey. Ok. Karl. Thank you so much. Sterns, marriott stays with me as well. We will talk about the lending club. Set to start trading. We will get the first price in a few moments. What with this ipo mean for the rest of the lending industry . [laughter] with trading underway, we are focused on lending clubs. Lending club. An interview you do not want to stockn this day in the trade. How does it feel moving the needle for other nonbank or peer to peer lenders . I want to bring the founder, fundsrman, and ceo, which Student Loans and mortgages. Isguest coast host staying with me as well. Mike, lets start with you on this. A lot of people have said, what. Xactly is peer to peer lending why do we value these Companies LikeTech Companies where they just basically lenders like any ther bank . What we have been able to do is create marketplaces that take advantage of other marketplaces. It is chileans and chileans of dollars. What do you think of these peertopeer lenders . After bitcoin, the notional of did the notion of additional currency, this is all part of the free system. There will be pushback, but at the moment, it will be of interest to all of us. Will it feed into, eventually, bank share . So what. It is another technology of delivering loans to individuals who do not have access to the banks they need it quickly. From what i learned about in the bronx in the 40s and 50s. From your local, nonbank person. A loan shark . That is what they call them. But this is more fundamental. It is a very good technology. The time has come, whether it is peer to peer lending, but there have to be constraints and safeguards and individuals who will take advantage of the system. It is a great point. Right now, Companies Like yours and lending club and others are growing, but they are growing unfettered. There is really no true regulation around companies. What happens when regulators catch wind now and you have enough loans out there that regulators begin to say, hold on and wait a minute, we need protection here. Look at our marketplace. We focus on super prime with mortgages to deliver a better project product. Cooperation, high regulated in that context. Regulated through the fcc. I would not say it is unregulated. I would say the issue is we do not have the burden that comes from insurance or what comes with that. It is one of the big advantages with the industry and why youll see us trading with different multiples. That is correct. The beauty of what an economist said a long time ago is creating a disruption. What were doing with these companies is part of the process and it is healthy for the system. Wish you think do you you were in a company like this . In one of the best businesses of all time. Every day i come into work, i can find out how stupid i was or how smart we were. But do not confuse a market with brains. In that framework, we are in a terrific if business. Their field is not necessarily greener than ours. All right. Hang on. ,ike, thank you for joining us and i want you to hang on because we will get consumer comfort, that data in just a few moments. 41. 3 measures essentially what it sounds like. How comfortable consumers are about the economy. Julie hyman, i know you are at the breaking news desk with more. The consumer comfort index, it is for the weekend of december 7. Of 2007. Ce december a sevenyear high for the index were looking at. It rose 39. 8 from the week before. Some of the elements we have been talking about before and some that we boosted the retail sales earlier are helping Consumer Confidence and comfort in the parlance of this particular index. That is for gasoline prices, also improving the john market the job market. Initial jobless claims numbers also coming in. It is all along the same lines here, lower gas prices making consumers more comfortable, adding into corporate profits. For 2015, that will be part of the scene . It has already been there. The lower oil price, it was not part of my case of why you have to be optimistic on the American Economy in 2015. Earnings are good. However, we do have potholes. 20 of the profits of the United States are not u. S. It is such that those profits that those will be worthless. Everything is in balance. What about companies . Is on the corporate agenda in 2015 to make them feel better . I do not think anything needs to be changed except when you look at the surveys, we want the american tax system to be reexamined and we as investors want that to occur. Have this to notion of global versus territorial, that is an important ailment. Then we examine regulation in light of the practical side of our country and realize that we need an energy policy. We had one for 40 years. Everyone was bashing fracking. Now look at what happens. Yes. An economic benefit. There are environmental issues. Grow. To are veryng rates attractive. I want to make acquisitions and step up the excel ridder. I will do deals and by companies on wall street. I think Corporate Tax reform, if it is on the wish list, it fort not be granted because americans, immigration, the fiscal deficit, health care reform, tax reform, it does not make it into the top five. That is your nickel and mine is different. In the framework, the notion of simple things, we have got to eliminate that very we have too many lobbyists with too much of the dynamics there. I do not know anyone who does not want to pay less who is working. Thank you so much. Great to see you this morning. Absolutely. It is fantastic. The best 50 minutes you could spend this morning. All right. We will hear much more from the first peer to peer Lending Company to go public. A deal coming up in just a few moments. Dont miss the interview. That does it for today on in the loop. Tomorrow, we will take to the skies. A company had a good start to the week, but we will ask them about the impact of Lower Oil Prices paired with the travels reach some of the awards in lower ticket prices . That is tomorrow at 8 00 pm right here. It is 56 past hour, which means Bloomberg Television is on the markets. Lets take a look at how stocks are trading or any minutes into the session and after a pretty substantial selloff yesterday. Up about 1 . Recouping most if not all of the losses yesterday. Lets look at oil prices as well. At crude inook particular. Per barrel. It looks like it was getting ever close to 60 and we should. E watching it closer we are talking about all of the Ripple Effect and asset prices. Lets talk about what is going on in the credit market. Joining us to explain the connection is lisa abramowicz. We have been talking about how it is everywhere. Yesterday, we were talking about how other monarchies were being affected by oil. What about treasuries . That is not a connection you would normally think about. Really starting to see particularly the notes really gaining value, down the lowest since may 2013. Basically what they were saying is we will look at the oil prices as an arbiter of growth, a signal of how much the Global Economy actually is growing. The data is somewhat fickle. Much the on just how economy is accelerating. There has also been talk the low oil prices if the fed a. Ittle more leeway you will not see inflation with things like this. The fed is giving a mixed message. Theyre looking at the data. You and see that oil prices are going lower. If they should expectations should probably go lower as well. Lower oil prices will reduce prices all around. Why go ahead with their hiking. Investors are saying, lets look at the data as well. From government debt, lets talk about torture as well lets talk about oil prices. This month alone, we are seeing a 7 decline. Declinesally builds on at the end of august even. 14 decline since the end of september. Some credit sites said they are expecting default rates in energy bonds to double next year. A billion dollars since 2010. It actually caused true fundamental results as oil prices and revenues also go lower. Could that ripple into markets as investors start to fill the losses feel the losses . Chris we will see what happens with that. Thanks. We will be on the markets in 30 minutes again. Market makers is next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. The scourge of wall street takes it on the chin. To be the prosecutor, reversing a two insider trading. You will hear from the ceo. And fuel prices rise. Does the gas tax rise . We will see if Congress Prepares for the first time in a generation