There was enough in these numbers to suggest that this might be sustained through then. The economy is not going at a speed consistent with zero rates. Chinese shares declined well markets were little changed ahead of the christmas holiday. Former president george bush has been hospitalized at a hes in at a houston hospital after shortness of breath. He was admitted as a precaution after being taken by and feelings. He is the oldest living president. A Police Officer shot and killed an unarmed black man in berkeley, right next to ferguson, the epicenter of the protests this summer. The man was shot after pointing at handgun at an officer at a gas station. Sony pictures will release the interview in about 300 theaters tomorrow. So far, none of the major theater chains have agreed to show the film after threats of violence could we will have more on this story in just a few minutes. It is down to the last minute and holiday packages. Everything went well after missing deadlines last year. The shipping company hired more temporary workers and benefited from largely favorable weather this year. And i want to turn back now to the markets. The records we saw on the dow and the s p 500, backed up by a friendly fed and strengthening u. S. Economy could look at yesterdays monster 5 gdp rating showing the fastest growth in more than a decade. I want to bring in a chief Market Strategist at oppenheimer wh called for 20 years and, about two points from where we are now. His target for next years 2311, which would mean another doubledigit percentage gain. Good morning, thank you for coming in, and well done. How did you get it so right . We have been positive on the Recovery Process of the u. S. Economic landscape as well as the corporate landscape. Since 2009 in january of that year, it has been a process of all the efforts of the u. S. Central bank and the federal reserve. , which growthica has been extremely modest as the economy has come back, and consistency on a global basis, cooperative efforts by Central Banks around the world. We were looking for Better Things and this year we certainly realized. Did you see 5 gdp coming . That i did not. I was looking more at 4. 5, to tell you the truth. We have set our sights, we think, relatively modestly. Looking at about an 11 gain from where we are now through the end of next year. Earnings growth is somewhere between 6 and 8 overall. Process. We were really in trouble in 2008. The process, we estimated, would take a long time. We thought the seriousness of the situation called for extraordinary efforts. As ben bernanke said, quantitative easing works in practice but not in theory. Were big believers in ben bernanke and we were we are big believers in janet yellen. We think the fed has been more accurate in terms of the data it utilizes, its reading of the federalen prior reserve, particularly that of alan greenspan. I would say that janet yellen didnt see 5 gdp coming and it is a lagging indicator. But with the jobs created in the month of november, 5. 3 on a clinic, do you think janet yellen starts to get a little less patient . We will have to see what happens in the fourth quarter, how the growth comes out, where we see various revisions going forward. Third quarter terrific. We have to look at the fourth. Consideration moving forward is how the First Quarter of the year comes out. The markets have been spectacularly resilient so far. We consider maybe a bit of a pullback on profit taking after the celebration. And positioning for 2015. Where do you find a value 18,000 . This is the legacy of bernankes relative valuation market. Inyou really want to be bonds with investable assets, 2. 26 last time i looked bac . Take a look at where commodities are, and consider the demand for commodities. The efficiencies that have, on producing commodities, utilizing them. The real, energy is that we utilize energy in such a more efficient manner than ever before, whether it is in automobiles, heating homes, cooling homes, input. Longterm dampening of demand. Better to be a shareholder than a worker i noticed in your last note, december 15, u. N. Chevron and valero. You had chevron and valero good are you ready to buy back into energy names or is there more downside . We look for early adapters of trends. It is not a bad time to start layering into energy. With 60 a barrel on wti, it makes sense to consider the fact that if you look at a parking lot, it is not a parking lot of teslas, but rather, it is mostly gasolineburning automobiles. We work on gasoline, natural gas yeah, but you were just saying you see longterm declining demand. Right declining demand now is being felt as the Global Economy comes back, as europe comes back online, as china turns its domestic demand into a real driver, especially when you look at the emerging markets, they are inefficient burghers of energy. Burghers of energy. When those economies come back, reflecting the growth in europe and increasing expansion in the u. S. , Energy Prices should come back. I dont know if they will come back to triple digit overnight, but we expect that layering into energy is not a bad call. That will fuel the s p 22311 by the end of 2015. We have got to leave it there. Thank you so much and Merry Christmas. From stocks to bonds, the santa claus rally has made for some tough sledding for the bond market, as equities rallied this week, bonds sold off your today good the treasury bond indexes on track for its biggest annual gain since 2011. Joining me is Bloomberg News lisa abramowicz. , asjust heard john everybody comes on the show incredulous with where treasuries are trading this time in 2014 versus last year, but lets start with what happened last week. Bonds did not seem to like 5 gdp. It is interesting, john and other analysts talk about how the bond market is really overvalued at this point. There is a flip side to that. One could argue that perhaps the bond market is right and stocks are overzealous. That would be the flip side to it. Rons react, the front and in particular, highest since april 2011. On the back end, 30year side, bond yields are still really low on the im on the 10year, 2. 3 . That is down from 2 at the end of last year. They are down from the highs we have seen fairly recently. They react to the number by giving up a little bit blipping up a little bit. We are down to 2. 25 . Junk bond traders have had the roughest ride. What is going on . Not just this month, but really since the end of august. Oil prices tumbled, 50 from the high of 2014. A lot of the energy dependent junk rated companies have seen their debt just plummet in value. Weis an incredible have seen a completely reversed with the oil prices in the past couple weeks. Falling off the cliff. And it hasnt completely reversed there it is. That is an incredible chart, lisa. It is an incredible chart. Merry christmas. Thank you. [laughter] you have to understand that junk bonds, about 17 of the junk bond market in the u. S. Is energy companies. This is a major portion of the junk thats outstanding. Any selloff is going to have a big effect on all of those Mutual Fund Holders that own shares of junk bonds. This has a contagion effect where people start seeing the returns turning negative and negative and negative, when frankly, emitting a seems to be Everything Else seems to be positive. What if people start pulling their money and then it kind of snowballs . What if oil prices dont rebound . How many of these families can sustain themselves and 50 a barrel . It is what every shale producer is trying to talk you late calculate. Sounds like tom keene i love that chart. Lisa abramowicz covers the bond market for bloomberg. Now for the latest in the sony saga. They are reversing the decision not to show the film the interview on Christmas Day and james franco expressed their joint on social media. The people have spoken. The people on the president have spoken. The director of north American Research at Bloomberg Intelligence provides Realtime Research on companies and industries. It looks like the show will go on for sony as smaller movie chains are stepping up here. It looks like it. When this first broke it was such a unique situation that sony, much less anybody else come at any idea how to react. The initial reaction was just to pull back and they pulled back the film and just to see how the wind blew, what we have seen the last couple of days is a swing of the pendulum back towards releasing this film, most notably expressed by president obama. I think the pendulum has swung, public sentiment has swung, this film needs to be shown. Sony as we speak is looking for ways to distribute this film in the most reasonable way possible and the safest way possible. Initially we have a number of independent theater owners ringing the film out. I think we will see a slow rollout of this film domestically over the next couple of weeks as more theater chains get comfortable with it, and i think sony would still like to think about a more aggressive over the top internet maybery scenario, netflix, at some point in time to get this movie out as quickly as possible, safely as possible, to the largest audience possible. Certainly i can see myself watching it after all the presents are open if they get it out online. It is tough to criticized sony for for popping because this is uncharted territory, but they havent seem to have had any coherent strategy. What prompted this latest flipflop to show it . Thehe sense that in community and the marketplace they were hearing a lot of feedback from a lot of parties, whether it is the creative community, distribution community, some of the cinemas, politicians and everyone has been weighing in and the pendulum has kind of swung over the last several days. This is a film that needs to be released. The freedom of expression issues have come to the for a little bit more over the last several days and sony got a little bit more confident that they would have more air cover if they were to bring this film to the marketplace in a gradual fashion , in one way that suggests they want to get the film out for artistic purposes and yet they want to be responsible in the way they bring it out. They are doing it in a gradual way. The key issue is what did a major theater chain here in the United States carmikes and regals of the world the what is their policy . How is it going to youve the next several days and weeks . A lot of them are still worried that they are taking a Security Risk if they do in fact show it. Thank you, paul sweeney of Bloomberg Intelligence. Still to come, cali blob law, go pro, golly bla alibaba, gopro, the best and worst ipos of 2014. Havent finished Holiday Shopping at . We have a look at the last minute shipping options that will be to santa claus dierdorf. Beat santa claus to your door. Raised 88anies billion through ipos in the u. S. This year, the most since 2000 at the height of the dotco m boom, but not all were slam dunks for investors. Leslie picker has this years top winners and losers. Lets start with good tidings. The name that performed best this year, alibaba. Everyones favorite winter came roaring through the gates. Investors still have an appetite for this thing. It locked up an agreement last week but by and large it is one of the Key Performance for the year. Another one is gopro. This one has skyrocketed and that one really surprised me. I was really skeptical of the whole business model. But they are valuing and as a Media Company. They saw a higher valuation as a Media Company as opposed to consumerElectronics Companies. The risk with Electronics Companies is that you have to keep producing and provide better products for consumers and that is most notable of apple this year as it seeks to keep on revamping its iphone. Is taking the footage, the adrenaline seekers onto youtube, trying to capitalize on to that. Digital Media Companies these days tend to a lot better. Nothing i like better than go pro footage shot in the back of a dog. What is the reason these ipos did well the fundamental business, that i like watching these dog videos . I would boil it down to one word and that is alpha. Records yesterday, 18,000 on the havethe benchmark indexes performed so well that Mutual Fund Managers need to find another way to outperform them, and ipos traditionally, especially when the stock market is roaring and volatility is quite, Mutual Fund Managers know that when they buy into ipos especially ones like gopro and alibaba, it is not an arbitrage situation, it is not slamdunk, but if they see a significant discount in the ipo price, those shares will rise. Ipos did really badly. Not always a slamdunk. One of the biggest surprises for the year was energy. You look at Parsley Energy down there, and oil and export company, down 11 because they got caught up in all the issues surrounding oil prices. You dont want to be a producer in this environment. Another one on that list was king. King had a rough time getting out of the gate. There are concerns around the onehit wonder of candy fresh. They brought on any cru which a lot ofa, people criticized is just being another version of candy crush. That certainly makes sense. They need one of those Kim Kardashian game apps. You listening, kim k. . Candy crush is your next stop. Couldaking of ipos, uber be a big one for 2015, but the ceo is in trouble again, this time with south korea. And in an effort to shape 3 billion shave 3 billion offer its annual budget, cocacola is saying goodbye to 2000 employees. You are watching in the loop live on bloomberg television. I am olivia sterns, in this morning for betty liu. Ride sharing for app uber. In company has been indicted south korea. They are all charged with violating a local law that prohibits rental cars from operating as cabs. Uber says it is confident that the south korean courts will uphold the sensible judgment. Cocacola is making some major costcutting moves. Drink giant plans to cut 2000 jobs in the next few weeks. The wall street journal reported that he canceled its lavish Christmas Party and told executives to take taxis instead of limos. Deviceof british medical maker smith and nephew surged in trading on reports that striker is planning a takeover bid. Michiganbased striker plans to offer a significant premium. Is noty that stryker planning cap conversion with this deal because of limited benefits and political risks. It is 26 minutes past the hour, which means that bloomberg is on the markets. All the benchmark indexes are up. 1 , this after the dow and s p closed with record highs. Clip, growing at a 5 fastest rate since 2003. Equity markets closed at 1 00 p. M. The bond market closes at 2 00. Officeyou are at the without time to finish her shopping, you may not be completely out of luck. Julie hyman is here with a procrastinators dream. I noticed you have been doing a little shopping this morning. Amazon prime, this new service that amazon is offering, orhour delivery for a fee two hour delivery for free in certain areas of manhattan. We have seen some of the other shopping sites do this. Google does it, ebay does it same day, but amazon has upped the ante by doing it as onehour shopping. I did it earlier for surveillance and got the crew some gifts for the holiday. I ordered it at 6 16 this morning. Half an hour later exactly half an hour later i got a call that the courier was downstairs. These offices on 34th street in manhattan and are offering 25,000 different looks as part of this different products as part of this. They take it from this office is quite right courier by bike courier. It was at our doorstep in about 35 minutes. There was even tracking on my phone to show me his progress, just like when you order at uber. You can see the car when it moves towards you. I could see the little pin on the map as the bike courier you could actually physically run to him to take up your gift to bring them you could. Not everyone has access to this. It is only within a handful of area codes in manhattan. Coincidentally, major media organizations have been in these area codes, which is probably good press for amazon as well. Probably no mistake where they chose to do this. 7. 99 if you want to onehour delivery. A prime have to be subscriber. You have to do that 99 a years instruction to amazon. Subscript and to amazon. It really is limited at this point. Similarly amazon if its successful fullscale it to some degree. It sounds too good to believe good eyesight you get these goods for tom keene and the crew including brendan greeleys very tacky sweater. We were planning to put this to the test in rushhour traffic. Very early in the morning on Christmas Eve would be easy, but yes indeed, we should see if we can do it again. It says onehour delivery is available to here and we should get it by 9 28 a. M. Ive taken the liberty of taking a couple of items out, not just for you, but for matt miller as well. I dont want you to know what i got, but i can just show you quickly, they have a couple categories everyday essentials, gifts, travel basics. The courier pulled us that a lot of people order toiletries instead of going to walgreens. They order it from amazon instead. I will go straight to check out. Oh, i dont want anybody to see what we got. People are very lazy. I have relatives who have been ordering people towels on amazon prime. I thought you were ordering paper towels. Ordering them for the apartment. Im going to place the order. And shortly i should get a issage that says your oder order is on its way. Im looking forward to it, julie. We have breaking news and we will get out to make miller matt miller. Were looking at initial jobless claims, rolling out at 280,000, less than what we had expected from a survey of economists, who were estimated 290,000 jobless claims. About 10,000 better, about 10,000 better than the same time last week. I thousand better. But that is not bad. Considering the numbers that we saw with the economy, you can expect markets to react positively to this news. Or if you want to go with the good newsbad news route, you can see it go the other way. This compares to the estimate of 290,000. Better than economists had estimated. Thanks so much, matt. We will get reaction to the better than estimated initial jobless claims and yesterdays much, much, much better than estimated read on gdp, 5 in the third quarter. We will get the reaction from Mohamed Elerian. And the santa claus rally continues on this Christmas Eve. Futures are pointing to a higher open after stocks closed at record highs yesterday. We are an hour away from the opening bell. Ever heard of these islands . Could you locate them on a map . You probably have not heard of donetsk, ukraine earlier in the year. These hotspots have implications for the Global Economy. Bening me on why we should keeping a close eye on them and the neighbors is your fellow and Deputy Director of the asian aturity Pacific Program the center for a new american security. Thank you for joining us. A story on how china was literally building islands in the South Pacific see. I was excited to find out that they were in fact the same thing. Incredible story 6 Different Countries lay claim to this area of the world. Explain to us what the status quo in the region is. This is in fact one of the most important waterways in the half of worldover trade. What happens there absolutely matters to the world economy. The reason the area is so contrasted so congested is, as you mentioned, these islands in the South China Sea, there thousands of islands where sovereignty is contested by 6 of the governments that ring the city. Aboutt think a lot sovereignty issues in the United States but these issues get to the core of the legitimacy of governments in the region and they are central to the politics of Southeast Asia and china. Is it about resources and gas under the ocean floor or is it really just a strategic location . It is about all of those things and that is the reason these have been so hard to solve and manage. As you mentioned, there are large fishing reserves, potentially large reserves of castorrbons, oil, and there are political factors that i mentioned, combining with an upsurge in nationalism in the region. ,e do have what appears to be at least on the part of china, an effort to increase their strategic leverage by building facilities around the South China Sea through which they could patrol the region and potentially project power onward. It is all of these things wrapped together and that is what makes it such a complicated dispute. We are literally showing images of how the chinese reclaimed land on top of reef island byly build an funneling millions of pounds of material on top of the coral reef and they have built boiled eggs on top of this coral built oil rigs on top of this coral reef could tell me how concerned you are. Is the situation intense right now . How likely is it to flare up in 2015 into a conflict . China is not the only one engaging in these activities. Other countries in many ways beat china to the chase on these reclamation activities. What is different now is that the size and scope and scale of chinas activities, because of its capabilities and growing wealth, are much greater than the rest of the region combined. They are really having a profound strategic effect, and the concern is that china appears to be moving toward a pattern of trying to advance its interests and settle these disputes through the use of coercion and the use of force. If that continues, it could be incredibly destabilizing. There are countries in the region such as the philippines that are defense treaty partners with the United States, meaning that washington is directly implicated in these disputes. It is very much into political hotspot and not just a narrow issue of countries in the region arguing over arcane islands and rocks. We have a partnership with the philippines. What would it take for the u. S. To get involved . Is he just simple, i dont know, as the chinese shooting down a fishing boat . There are ambiguities within the u. S. Philippines mutual defense treaty that dont take that perfectly clear. But in the most simple sense, if there was a conflict between china and the philippines, the United States would very likely come to the defense of the philippines, putting the u. S. Military against the military of the chinese. Thank you for giving us something very important to worry about for 2015. Appreciate your time this money. All right, thank you, olivia. Still to come on in the loop , we are getting into the christmas spirit. Step aside, ugly sweaters. Holidayinspired suits have gone mainstream but is wall street ready to rock a reindeer pattern from head to toe . Speaking of fashion, duck dynasty, what happens when an oldfashioned shoe company cannot satisfy demand . Christmas sweaters have long been the rage during the holiday is still allt about the christmas suit and the christmas time. And no, im not talking about and stripes and paisley. It is the latest craze hitting the christmas fashion scene. They are crammed with all the christmas elements you can think of. What will men who wear our suits really give these a try at the office . Joining us is the cofounder of office suits, the man behind the craze, and also, matt miller joins me now, one of the best dressed guys in the office always, and particularly this morning. Can you see me . I can see you. I would say he wears it better than i do. We have you on split screen with matt miller. You both look terrifically handsome. These not asng fancy dress or a costume. You want people to take this seriously. This is a fashion item. I guess it is a fashion item. It is not that we say that people have to take themselves too seriously. It is something that people would not necessarily where to in every day working day. It is more of a funding that people wear to a party or a fun event. Why do you think fashion suits are going to take off . Say it again . Why do you think fashion suits are going to take off . Why will they caps on like ugly christmas sweaters . Well, all the press we have been getting over the last all the press, all our fans and consumers, they have gone absolutely wild about our range of christmas suits. This is the new trend. Unfortunately, all the stock has gone so quickly we only have a couple of. For 2015 we have set the new trend. I think you are 100 right. I absolutely love it. Suite the blue stripey going by could how do i get one of these . A taylor,ed obviously, or i would need to lose 30 pounds. How do i get one of these . We have them online. We have an online channel where officesuits. Com, and Department Stores all over the u. S. And europe. Hopefully by next christmas you would be seeing them all over the place and it is affordable and accessible for young and old. It is good fun. 99 for the whole suit jacket and trousers. Including the tie is well, dont forget. I think i might switch it out for my own time. Ive got the tie and it looks Good Good Good are you going to be making suits for women . On a daily basis from women asking wheres the female line. We are extremely busy and to scale our concept on a global level, because we have three distribution centers, one in u. K. And one in the u. S. And one in europe and for women we may lose focus if we dont scale our concept, a male brand. Do you partner with anybody for dissolution . There distribution . There are places where i like to find crazy clothes like this. Beta brands comes to mind, the name of making it obvious what they do. I can imagine you could partner thrillistr media or or another this division channel for website to get these out. We have been featured on all the big content websites. If you are talking about all the papers such as fox and bloomberg , we have had a huge partnership of people. But also, celebrity endorsements. For example, jimmy kimmel was wearing a for his Christmas Show last week in new york. It shows you the type of celebrities that would be wearing these that are pushing the brand and are promoting us as ambassadors. How about other holidays . Any plans to expand into pilgrim wear for thanksgiving . We saw fourth of july. No . Opposuits is really a yearround product. We have peaks around the big Holiday Seasons christmas, thanksgiving, halloween is big for us, but also fourth of july. Fantastic Stars Stripes suits with all the college kids and younger people raving. It is a yearround product and next year, 35 different styles. Right now for next year we are planning to at least add another 15 on to it so we get to a good 50 different designs. Im going to order mr. Lover lover for valentines day. Are you . Lucky maria. I am going to say no to pumpking. It certainly was for others. Up with auld team golf brand. People wear absolutely absurd things to play golf, including matt miller. Thank you, cofounder of opposuits. Style,s are more your this is how many backorders l. L. Bean is dealing with for classic duck boots for the holiday. The classic rubber soul was invented by the companys founder, leon bean. Orders, l. L. The bean has hired 100 new employees and invested nearly 1 million in additional manufacturing equipment, which they hope to install in the new year. Look at that. How do you not have duck boots already . Who is ordering duck boots that didnt have a pair . You dont have them . I guess manhattan. If you were ohio unfortunately, matt is going away ill be back in the Neiman Marcus christmas book this year, highend sneakers like these involvement numbers. 890. The curator is going to join us in the next hour. She has something you are going to want to see. 2015, tomook ahead to keene spent time with an outstanding panel of experts to get their take on the year ahead in markets and the economy. It is a special show that will air this friday at 6 00 p. M. Eastern time. He started by asking about the stunning collapse in oil prices. Is clearly has to help countries that bring in oil, europe, and it has to help the United States overtime. Last time i looked on a map, 71 of gdp. The consumer has a great Balance Sheet, jobs are rising, wages are going up, and the combination of wages, jobs, confident every day you are feeling good when you go to the pop, this is good. I think of the lack of energy policy. This american renaissance and now it is like, ok, every interview i do, he is adamant that america will be fine with oil in the vicinity of where we are right now. Yeah. Well, i think we have inadvertently struck on a good policy and we are going towards selfsufficiency and i think that these Energy Prices are good for the economy. Wages have been stagnating. Hey are finally going up a bit gasoline for working men and women is a big part of the household budget. It is good and it increases spending power throughout the economy. The good is unambiguously good. This is a massive tax cut, the equivalent of a massive tax cut to people who really need it. I dont think there is any doubt that this will result in higher gdp growth. But there is a bad and the ugly. That that is that this is going to discourage future investments in energy, this may be a repeat of 1997 and 1998. You get lower investment in alternative energy because oil prices are so low. And then there is the ugly bit, and it is somewhere that you want to go later on with geopolitics. It makes russia a massive wildcard for the Global Economy. Sallie krawcheck, when you start to see what i call quadratics, what does it signal to you . Said, ithamed is an unambiguous good for the consumer. What they do with the tax cut do they go out and spend it . If we want to go back to the banks, though, as traders, when you dont know is who is sitting on potential loss out there. The banks are made quite leveraged and we could see some pop at the end of the year which could have a limited watch our special edition of 2015 surveillance, friday at 6 00 p. M. And a 9 00 p. M. Eastern time. Bloomberg television is on the markets. Futures are moving slightly higher at the hour. The dow and s p are set to extend into record territory. This truly is a santa claus rally. He dollar is slightly stronger remember, it is going to be thin trading on Christmas Eve. Equity markets close at 1 00 p. M. And the bond market closes at 2 00 p. M. We will be on the markets in 30 minutes. Coming up, Mohamed Elerian joins us with a look at what yesterdays blockbuster gdp report could mean for the market and the fed and next year. Forave seen some valuations private tech companies. Could these be next years hottest ipos . You are watching in the loop live on bloomberg television. Welcome back to in the loop. We are 30 minutes away from the opening bell. I am olivia sterns, in four betty liu. Point to a lower open. The Labor Department says that first time jobless claims dropped by 9000 in the past week to 280,000. That was less than forecast and the lowest number since early november. Former president george h. W. Bush is currently in a houston hospital for observation. He was rushed know last night after experiencing shortness of breath. He is the oldest living former president , older than jimmy carter by just three months. A new wave of protests as started near santa was after police shot and killed another black teenager. Police say that the teenager was shot at a gas station after raising a gun at an officer. Saw protests area over the shooting of an unarmed teenager, michael brown. Sony has changed its mind and will release interview in theaters tomorrow. It will be shown in 300 smaller theaters with an additional 100 theaters getting the film next week. Chains showing the movie included the Alamo Drafthouse. None of the major chains in the u. S. Are showing it as of now. Japanese company under fire over for the airbags. The president is out just 18 months after taking the job and it is unclear if he resigned or was forced out. The Company Chairman and a member of the founding takata family will take over the president ial role and will take a pay cut for 4 months. The airbags have been linked to five deaths. We are 30 minutes away from the start of trading and lets count you down with the top 10 headlines before the bell. Matt miller joining us and also mia saini. You both look terrific. Happy holidays we can say Merry Christmas big happy holidays on, but today, Merry Christmas. We can say Merry Christmas all month, depending on to whom you are speaking. Facebook has scored a Big Partnership with the nfl. The league will begin posting short video cuts on the social network service, which include game highlights as well as nfl news and fantasy football advice. All the greatest parts. The only part you really want to see that is not how it works my facebook feed is going to be cluttered now by all these nfl you will probably be able to turn it off. The facebook feed is pretty customizable, one of the big benefits of it. When i was reading the story this mind, i was thinking, i dont care about highlights. I want to watch the whole game. Buy a tv. A cashier, touchdown there cap here, touchdown there, not as excited. I just want to see the highlights. I didnt think that was so spectacular. Are you kidding . You are also going to see some ads as well. However they going to make it not distracting . It comes at the end you can turn it off. Number nine, cocacola. The atlantabased Beverage Company plans to release 10002000 job cuts in the coming weeks, the largest in 15 years. The moves are part of a 3 billion costcutting plan. People what analysts say that coke has become a very bloated company, they are behind the wagon in the consumer goods a bigger bureaucracy than the dmv. I get bloated drinking coke. I cant touch any of these things. Diabetes. Do i look like i am going to get diabetes . You do not look like you are going to get diabetes. Very sweet. A lot of consumers do not want to buy these caffeinated beverages. They want to go towards healthier water. If you lose your job at coke find a job in the Coconut Water place. Do you actually like Coconut Water . Do you like cherry coke . Do you like coke . Yes, cherry coke. My issue is dasani. Number eight, minimum wage increases across the United States will prompt walmart to impact about one third of its u. S. Locations. This is according to an internal memo revealed by reuters. I have a problem with the government regulating Something Like minimum wage. Big,e other hand, a profitable and player like walmart should be paying his workers at least 10 or 15 hour. Sad that thehis is government has to get involved but this is a step in the right direction. 22 states are looking to increase the minimum wage. More and more states are jumping on the bandwagon and saying that we need to pay our employees the right wage. Will it always be a perfect wage . Is is anther entrylevel job not wars dortificial price not work but how do not have enough compassion shareholders want bigger returns to the keep cutting costs. I dont want someone working a fulltime job do you shop at walmart . To shopon you are able at walmart is because prices i dont shop at walmart because the employees seeme so depressed. Pressure is dealing with a rating cut from standard poors, saying it is a 50 chance it will cut russias status. The ruble has been in freefall. Because of the declining price of oil and the sanction. Everybody thinks essentially that Vladimir Putin has no point but to implement the country like junk rated four weeks now. They have been intervening with the s p essentially said yesterday, which is hey, look, if russia doesnt get its act together in the next order or so, we will cut their country possibly to junk. Does the Ratings Agency ever make the cut before the disaster or we learn from the crisis that ratings agencies are a lagging indicator. If that is not junk debt, i dont know what is. The next thing is they take your money and they never give it back. Number six emma wouldnt be a day without uber in the headlines. The ceo kallineck, like calisthenics. Was indicted in south korea. It is the latest incident of government scrutiny of the company. What i found fascinating about this was the report from the news agency saying that the violation for doing this was either two years in prison or 18,000. Pay the money. It seems so onesided. So lopsided that you could spend two years in prison. Korea twoin south years in prison is worth 18,000. They are already lined up to 18,000. If they gave him two years in prison he is definitely not going to south korea anytime soon. Obviously he doesnt have to be there. The strategy they move into the market first and then they apologize later. They break the law first and then get regulars to adjust the law. I would break the law, too. Coming up, we continue our countdown to the opening bell. The dow closed about 18,000 for the first time ever. Mohamed elerian joins me with a gdp,at one yesterdays wow as he calls it, and the better than estimated initial jobless claims could mean for the fed and the markets next year. Thats wow gdp we continue to count down to the opening bell. We are halfway through, and that eeans it is time for a deep div at number five. Emerging markets stocks fell for the first time following the gdp figure showing that the American Economy is growing at the fastest rate in a decade, or grew at the fastest rate in the third quarter. A stark contrast to what we are seeing overseas in europe and japan. I want to bring in a bloomberg Mohamed Elerian, former ceo of concurrent, who joined us before the crack of dawn on the west coast. Thank you for coming in. Thanks for having me on. 5 gdp looks like confirmation of what we have been talking about all fall and winter, this divergence, the u. S. Economy powering ahead while the rest of the world is slowing down. What are the consequences of divergence for emerging markets . The major consequences of divergence for emerging markets is that Monetary Policy in the advanced world will go in different directions. The u. S. Will tighten, europe will continue to listen, japan loose. Uber Exchange Rates currencies are going to move and the emerging world will have to navigate a lot more currency volatility. Talk to me about russia the s p said that the Sovereign Rating is on the brink of junk and Vladimir Putin is doing a lot of things to try to rescue the selloff in the ruble. How does russia get through the winter here . First of all, it will be downgraded to junk recently because they dont have enough reserves to meet all the requirements. And it is not just protecting the credit worthiness. It is external debt, slowing down capital outflows, stabilizing currency, meeting input commands when exports have been cut by half. 400 billion may sound like a knot but it is not enough of these multiple objectives. Some things are going to have to give and one is the Credit Rating and secondly, controls. What russia is looking at is periodic, inflation, pressure on the currency, and mr. Putin looking at an important decision on whether to reengage or not. What is the collapse of the russian economy me for europe . Growth is the engine of and a major exporter into russia. If it is just the collapse, it means lower exports to russia for europe. The concern is elsewhere. Response not by engaging the west constructively but instead, either to divert domestic attention away from the economic situation, if instead he expands his ventures regionally in the ukraine and the wests push to impose more sanctions, there is the threat of counter sanctions. If you get, sanctions on the Energy Supplies to europe, it is a completely different outlook for europe. Europe can manage a slowdown in russia. Countert manage well sections that impact the supply of energy and that is wanting to keep an eye on. Every winter in europe everybody starts to rebound gas being shot off from their starts to worry about gas being shut off from russia. Lets talk about oil, the other big shockwave going through the economy. What are the consequences of the collapse in the price of oil . Im thinking about venezuela and nigeria here. Is a net, this positive for the Global Economy but it is not without what i call the bad and the ugly. Is that it discourages investment in alternative energy. The ugly is that it may hit certain countries russia being one, venezuela, nigeria the high absorption ones, the ones that cannot cope easily with a sharp decline in oil prices. Olivia, this is a fundamental change in the oil market. When you have heard over and over again is that the paradigm has changed. They will no longer cut supplies. They want to protect their market share rather than prices and that is a fundamental change in the supply paradigm. Know they say that, but it is hard to believe that if oil goes down to 20 the saudis will not do anything. Finally, i want to ask you about greece. They had round two of these aections to put in place new president and it seems like a ceremonial procedure and now it seems like we could have snap elections. How worried are you about a resurgence of the greek debt drama . Im not worried in terms of contagion to the rest of europe. Europe has built a lot of defenses. I do think that greece as an issue, which is that it has too much debt and it cannot continue forever trying to get over that disparity. There is a fundamental issue that greece has to deal with, which is excessive indebtedness, that is something that the greek citizens have to decide. But i dont think this is 2012. I do not believe we will get contagion through the rest of europe. Is greece going to need a third bailout . Either a third bailout and or debt reduction. That means a haircut, which essentially is a bailout. Correct, and this time around there is a lot more official debt than private debt, so the official sector is going to have a really difficult decisions. , thank you so much. You are staying with us. Mohamed elerian, former ceo of pimco and Bloomberg View columnist. Things keep getting worse for meredith whitney. Now she is being sued. We are in record territory for the Dow Jones Industrial average. We are near the opening bell and will keep you covered on the markets. Futures point to a slightly higher open. Welcome back to in the loop. Lets get back to the most important stories you need to know before the bell. Matt miller and mia saini are back with me. Number four, ups. They wanted to avoid the problems they had last year when millions of packages did not make it in time for christmas. They put a limit on air express deliveries as recent retailers exceeded previously agreedupon limits according to people briefed on the situation. I think that the express shippers really just got lucky that we had good weather. It is a fascinating story that gave me a lot of insight we did not have before as to how these shippers work with clients. They have been discouraging clients from offering, for 24hour, free overnight shipping, which is something you would not have necessarily thought they would be in such close contact with. It is good that they are doing this. If you think about it, it is crazy to offer free overnight shipping on december 23. Have to at least try somebody to dissuade them from taking that route. But it makes the difference between selling something or not. True pit i think this entire Holiday Season coming year in, year out, the shippers are the heroes of the Holiday Season. The fact that they are able to do what they do on the scale they do regardless of whether it is there or not, they are playing santa. Kudos to the shipping companies. I believe that children are our future. Oh, lord. Three,hat note, number meredith whitney. Investors. G sued by this is according to people familiar with the matter. We are recording at least as of last friday that Michael Platts fund was trying to pull money out of meredith whitneys hedge fund. I love to be a fly on the wall because they made the fund. 46 million, 50 million to be the biggest donor initial money out. I used to cover hedge funds and my old job and there is a defense between a soft lock and a hardluck. The lack of peri lockup period usually means one year to you cannot take out money during that timeframe. This looks like a oneyear time period so it is unclear why the company is not getting their money back. With like a pretty clear legal matter. She is down, what, 11 on the fund . Right hedge fund has the liquidity in place and are continuing with the investments but i dont know what the terms are for this lockup, but in a typical case, one year seems to be the number. Getumber 2 matt, excited, you might be able to see the interview this christmas. Yeah. They will release it in 300 theaters tomorrow. A few chains, including one called the Alamo Drafthouse love it. This is disturbing, because if something happens, at least everybody in the texas theaters will be armed. [laughter] let me dissuade you from the notion that the Alamo Drafthouse is only in texas because there was one in yonkers, new york that i go to as often as possible. Are you going to see the interview . I would definitely be going to see this on Christmas Day even though i dont get the concept of seeing movies on Christmas Day but maybe that is just me. I dont understand why the big theaters dont have the cojones to show this movie because there is huge fear. Were talking about north korea. They are going to assault a theater . I dont buy that. Shootings at the dark knight you think kim jongun would do it himself . Welcome back to in the loop. I am olivia sterns, in forbidding you could thats get you back to the most important in for betty liu. Matt miller and mia saini with me, dressing very festive. Stocks are pointing to a higher open following a fiveday rally, fueled by the feds decision and yesterdays wow gdp report. The dow has now climbed over 1000 points in this past five trading days. That is an incredible run. You know what, those days when you call in sick no. And you see something workrelated and it makes you keep yourself in the butt great day of news to be at work. I called in sick yesterday and then the dow 18,000, and i thought, omg. Missed all the fun. Lets not forget, in october it was the opposite. Just a couple months ago we do not think we were going to see these levels. Full of civility volatility was i levels we are not seen in a long time and there was no sense of the Global Economy wears. Was. We have a clearer picture where it pertains to japan, china, russia. 20lets get back to stocks starting to trade in a few minutes. I want to bring in Mohamed Elerian for his take on the markets and the jobless numbers. 5 gdp, and that together with 321,000 jobs created in the month of november. Do you think janet yellen starts to get a little less patient . Do you think she changes the time of liftoff . I think they are going to hike rates in the middle of next year, and remember, what they need most of all what we all need is broadbased, inclusive growth, because if they get that, then they can normalize Monetary Policy gradually while minimizing the risk of a policy mistake they are going to look at this as caught that further confirmation that growth is widening and broadening and it will make them feel better about race in the middle of next year. How will the markets react . Dont they be reassured by back , healthy raising of rates in a regular way . Yes, provided three things. The rest of the world does not completely fall apart. We get impacted. Second, that u. S. Growth continues to be both robust and widespread. Third, something you just talked about. We had 51 record highs on the s p. That is one a week on average. That is despite a 9 correction in september and october. What is that telling you . ,here is a lot of cash Corporate Cash coming in to support the market through either dividends increases or share buybacks. Its important that cash continue to come in. If we get those three things, you can normalize Monetary Policy without giving up anything on stocks. If we dont, there will be some tradeoff. The u. S. Is not an island. I want to talk about europe because january 22 seems to be the deadline that mario draghi about garner support quantitative easing. Where do we go from there . I think he gets it. They will do something on qe and look to expand the Balance Sheet aiming at one trillion euro park. Mark. Economynot impact the 20 great extent. The problems they have cannot be addressed by Monetary Policy. Timeost they can do is buy , minimize risk of a big disinflation. They cannot deliver Economic Growth on their own. They need the help of other policymaking institutes. It seems like the answer when we ask your peers about what happens on the structural side of things, no one has there needs to be more structural reform. You can apply that to japan where that has to be pulled as well. What timeframe do you have for meaningful reforms on the structural component for europe and japan . For the u. S. As well. There is a at reason why we are not bouncing back. Invested too little in Structural Reforms and too much in the Financial Sector. The Financial Sector cannot be the engine of growth. It has to be progress Structural Reforms. Where there is the will to spend, there was no wallet and where there is the wallet, there is no will. There is too much debt in certain sectors. And on top of that in europe, you need to get better fiscal integration, better political integration and you need to complete the Banking Union and you see why the ecb cannot liver growth. Deliver growth. Thats why the ecb can buy time, but on its own, its not the solution. I want to ask you one last question about the american consumer. We have cheap gas, more jobs, more confidence. When will americans get raises . When will we see Wage Inflation . That would be one encouraging elements of the report. Rages are starting to move up. Wages are starting to move up or you will see healthy weight growth next year. The risksnforce for the u. S. Economy are not internal. They have to do with what is happening in the rest of the world. They have to do with not economic issues. The u. S. Economy were left to his own, it would continue to gain strength. Thank you so much. We appreciate it. , former ceo ofn pimco. I want to check in on a special delivery this Holiday Season. Amazon has rolled out a service that promises onehour delivery. Joins us now. 60 minutes ago, she placed an order. You are a hard one to shop for. I got it within 30 minutes. They took the subway this time. Ande is a little tracker the pain was not moving for a long time. It was because it was underground in the subway. It is a handful of zip codes within the city. Tracker anda little was not moving for long time. I did get something format and olivia four matt and olivia. Shopper tractors reported this morning that traffic last week. As down 9. 5 i talked to a retail analyst this morning who said maybe that is partly because of procrastination. We know how much you guys like the movie frozen. Anna has to be for matt. Anna is the good one. Else that gets all the attention. She goes up in her mountain, doesnt want to come back down. I told julie to get you tv barbie but she thought that was offensive. Build au want to snowman it doesnt have to be a snowman. Very cool. I will put mine on my mental place. Im sure you will. Mantle place. It will be writing on the front seat of his new porsche. Always a pleasure. Today especially. Merry christmas. Merry christmas, everyone. A booming year for tech valuations. Clubnies in the 11 figure. There is one thing to reflect on this year, it would have to be the obscene valuations of Companies Just a few years old. , interest, making the list. , pinterest, making the list. I had a 24yearold on the show yesterday with you jack. He has raised 300 million. What have you got . I had a 13yearold on the show this week. A 13yearold inventor on the show who as part of a seventh grade science project in midapril printer that came in at 20 of the braille printers on the market right now. Intel has backed him. That is thek interesting thing about 2014 in terms of new companies. Valuations, the multibilliondollar valuations represent a significant change in the funding environment. We see across the map, whether its the news this week that x valued at 45 billion, there had been fantastic private round valuations where bigname investors are putting a lot of money into these companies. Have we ever seen these kind of late round valuations before . People are saying this is reminiscent of the 2000 dot com boom. Companies were going public with 300 million ipos. Much smaller deals. Billion Dollar Companies went public with a bit of shares going up. Was about in the best of times. We have a couple of companies acquiring great private rounds long before theyre ready to go public. Well before the Financial System suggests they are ready to go public. Xioami raising money from dsp oligarchs dst. Profit in the singledigit percentages. A very different kind of notion of where those returns are. This is about the low Interest Rate environment. Is that why you think we are seeing this huge why are we seeing this . Lipcar raised 1 billion, sold 20 of their stock. These are late round investors who want to be there. They may not be adding a lot strategically but they recognize these things are about to go this will beink the last chance to get return on this money but get there late into the process right before the ipo. What kind of terms do these late round investments carry . I had a friend who just started working at uber. Equity was pretty sparse because its already worth 40 billion. That is an issue to continuing to acquire talent. We dont really know what the terms are going to be. Typically, these deals will have some sort of liquidation preference. The last money in, the first money out. Or nobody can get money out before them. Surprised as we start going through that we find some fogging us, some reset, some investors that come in late guaranteed not to lose money. The price of the deal goes down, their percentage stays intact, cramming down those early employees. They will get the short end of the state. They will have worked all those years but found that new investors have created delusion. That is painful. Theyre interesting stuff. Very interesting stuff. You can catch cori and the latest in tech and media every weekday at 1 00 and 6 00 on bloomberg west. Up next, if price is no object for you, Neiman Marcus can show converting from jet ski to allterrain vehicle. It is on their fantasy gift list. That is coming up next. On this Christmas Eve, we are focused on the business of getting. While nobody can corner the market, every year and Neiman Marcus tries with a fantasy li st of gift ideas. A limited edition 95,000 ginger joins us now from Neiman Marcus is hometown in dallas, texas. There is a close correlation between u. S. Going on in the stock market and how much people are spending on luxury goods. Are you expecting this to be the best Christmas Ever for your ifts . Y get people seem to be buyingt lots of gets for themselves. Oneofakind items. Who are buying these . Americans, men, women . Its all across the board. Crazy texans buying things . Its all over the country. We see cars delivered all across the country. His and her gets, the quadskis delivered in several locations. You never know. We have given up trying to predict what thats going to be. Give us a few of the examples of what made the cut this year. What are your favorite items on the list . We had quite a number of experiences this year. What seemed to catch the imagination were the his and her gifts, the quadskis. We decided to spruce them up a print from the french bathing suit maker. We sold a number of silk peacocks. That was exciting. A oneofakind custom locket along with a trip to germany by the jewelry maker. Interesting. I saw a personalized bottle of perfume for my part of thousand dollars. How can a bottle of perfume be worth that much money . For 500,000. Not everyone can have a fragrance customized for them. It has been around for over 100 years since the turnofthecentury. They work with you about memories you have and create a fragrance that is yours and yours alone. You do get a firstclass trip to paris and a solid gold bottle. You are not going away empty. You get a lifetime supply of your custom fragrance. Perhaps it is actually worth it. For you, doesnt really matter ts sellof these gif because this is really about marketing. It absolutely is the we want to be sure that if somebody buys one of these gives that gifts that they are happy with it. For over 50 years, we have been ifts tohese fantasy get garner interest in our catalog, in our store. Its a great thing to know that you can buy lipstick at a place where you can also once upon a time by a camel or a maserati. Love it. I really like the quadski. Inc. Is a much for joining us. Theure to check out fantastic fantasy list. Thank you so much for joining us. We will be back on friday with a jampacked show. As we head into break, a quick check of where futures are trading right now. S p sector to extend into record territory. Past the hour. Bloomberg television is on the markets. 30 minutes into the trading session, lets get you caught up where stocks are trading on this Christmas Eve. We have some green right there on the right side of the christmas colors. 1 5 of the percent. Anderdays 5 revised gdp the price of oil helping the markets here. Close to session highs at the moment. As we head into what is traditionally a quiet week between christmas and new years, there are some stocks that can see even more upside. One joins us with a look at of the stocks you might want to put on the list to give santa. What are those stocks . There is this thing called the santa claus rally. Bit,cided to shrink a between christmas and new years. R santa has done all the heavy lifting. You talk about the indices come the s p 500, the dow jones. Between christmas and new years rankings went back five years and the bestperforming stock on average was a semiconductor company. They are up on average 2. 11 . You have other names like johnson nutrition, a housing manufacturer and gilead. There is technically no oversold stock in the s p 500. Gilead has the lowest relative strength investment, a signal of what is the equivalent of coal . Stocks you do not want santa putting in your stocking. No surprise that leading the back is Chesapeake Energy given oils decline. T be energy has been down average losses over 3 . You have some big name bluechip retail stocks. Netflix, priceline, fossil, whirlpool and amazon. There are a number of stocks with fiveyear negatives. Years christmas and new coming each of those years when negative. Amazon, petsmart, coach, ebay, cardinal health. All very interesting. Youre able to go back and look at these seasonal patterns. Can traders make any real moves . Analysis if you want. Im not making any recommendations off this. There is a point when you look at the past five years and you see meaningful moves in a stock between christmas and new years. Ticket it or leave it. You see stocks up every single year, it might be something worth considering. If you look at the s p 500 ,verall over the past 10 years this santa claus rally is less pronounced. 2014 has certainly been a volatile one. Until we get some clarity from the fed, hike in Interest Rates, we expect to see a volatile 2015. A lot of options traders are looking for more volatility. You have to have promotion to get good returns. My thanks to you. Happy holidays. We are on the market again in 30 minutes. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and step numeral. Stephanie ruhle. See you in court. Another setback for the onetime wall street start. Because overnight is not fast enough, we do last Minute Christmas Shopping and test out amazons new onehour delivery service. Does it work . Seth rogen and james franco win. The top