Earlier, we saw that massive fire that engulfed a luxury burj right next to the khalifa. 15 people reported injured. One had a heart attack. The fire broke out two hours before midnight. Burning debris had been raining down. The dubaioned, authorities are saying that 15 people have been injured, 14 of them light in injuries. Thousands of people gathered, waiting for those fireworks in dubai. We will keep on top of that. We are now less than an hour away from the markets close. Julie hyman has a latest on the markets. Excited because there is suspense on the year to date are the year to your return. As betty mentioned, we are hovering near the lows of the session, lower than typical volume as we are in a holiday week. , the yeark at the s p to date, which we have been checking frequently, it is now in the red. Now, down. 4 . I want to check on apple as well. That is one of the stories we have been watching. We always watch apple. It is such an enormous company. But it has been underperforming the s p 500 and is set to have its worst month since january 2014. If apples going down, that is an issue for the overall market. It is down 5 for the year to date, worst year since 2007. Betty one of the worst years for crude oil . Julie not the worst. Last year, in percentage terms, were as worse than this year. A reboundare seeing of 1. 5 . It is down 30 for the year. Look at the heat map. The end of the year has been particularly problematic for oil the last few years. Here you have this years november and december, 10 declines in each. Here is last year which had even sharper declines at the end of the year. And then you had a streak of declines for oil prices. So that is two years of down oil, not only at the end of the , it has been particularly painful. Betty Ramy Inocencio has more from our news desk here at news desk. Ramy according to the telegraph, all 2000 Police Officers authorized to carry a gun will be on duty. An Intelligence Agency has warned that islamic terrorists may be planning an attack in a european city. Chinas Financial Capital of song i shanghai closed another year with dangerous pollution. Pollution hit seven times the recommended level. Back here in the u. S. , more than 8. 5 Million People have signed up for individual health plans through the Affordable Care act s governmentrun shopping market. The u. S. Has estimated that nearly 10 Million People will be enrolled in a ca lands by the end in aca plans by the end of 2016. A shakeup in ben carsons campaign. And there is a major shift in strategy for jeb bush. He has canceled planned advertising in South Carolina saving his campaign about 3 million. Bush is falling further in the polls. The nominating season is just weeks away. Betty thank you. Its been a year when many of us are making new years resolutions. We thought it would be appropriate to look at companies that could use some resolutions of their own. Lets check lets get off with chipotle. So far thismost 30 year. That makes it the worst performer in the s p restaurant index. So what can be done to turn around this company . Joining us now is jpl years jp eggers. Professor, it is not just to play not just to play not just chipotle. Dr. Eggers this is a big problem for chipotle because there advantage in the market was based on quality food and this repetition of a trust and a belief that the food had integrity. Intend toey mostly think about Sustainable Sourcing and ethical production. But many people can make the association with is it going to be right for me and will it keep my family safe . Betty that was there advantage. Before, there out isnt a lot of loyalty loyalty. the restaurant quick serve does not have real loyalty at all. Betty yahoo , i feel like this company i mean, every year we talk about when it will turn around. Is 2016 the turnaround . Dr. Eggers it does feel repetitive. Maybe this is the year we figure out that there isnt going to be a turnaround at yahoo the senses that they will never become as big as google, as successful as apple. Soy are so far behind in many key areas. What they need to do a step back and figure out what do we really do best . What are we good at . Where do we have an advantage . And even if that ends up being much smaller in scale or ambition than where they would like to be, that is the best but to focus. That have made a great job at compartmentalizing news and weather and things like that. And apps for the phone. Maybe that is where they can focus a lot of their efforts. Lets not try to be the big broad google. In certain aspect of content or delivery where they have an advantage. On content alone, they dont really have any real advantage. But they are really good at packaging it and delivering it in a way that consumers react to. Even if that means a smaller overall scale, that is where they should focus. Betty ibm surprisingly has been one of the dad bets for some very big investors. Even Warren Buffett bad bets for some very big investors. Even Warren Buffett. Dr. Eggers Warren Buffett takes a longer view on things. He is thinking is there still longterm potential here . Ibm is in a tough place. They have done a good job in devasting and spinning off businesses before they became unattractive, before they went sour. Theyve gotten out of so much. But the new stuff coming online has a been there. It hasnt grown as fast to replace that yet. Betty watson though . Dr. Eggers watson is what they are pinning big hopes on. Productizehat we can big Data Delivery i have seen it. It is very impressive. I think it is a lot of longterm potential. But it will take a while to get it looking as good as they needed to look and do the things they need it to do and to get companies to pony up the large dollars for it. Betty what about walmart . Dr. Eggers this is been one of those years where walmart has been underperforming. There has been to there hasnt been one incident betty their stock has gone down almost as much as chipotle. Dr. Eggers walmart has been on a long the client throughout 2015. They have been investing lesson ecommerce and in their than in the physical retail. But this is where walmart has an actual advantage. I think investors are still valuing the company for a while as if there would be a chance if they would be the next amazon and compete in that space. I think we are realizing that is not going to happen. Too busy working on largescale brickandmortar delivery. It will still be very successful and there is a lot of money to be made. It is not sexy. It is not huge growth. It will not be this highflying tech stock. But it can be profitable all a long period of time. The market is realizing that it has to be shifted. Betty thank you so much for joining us. Look atke a moment to the fireworks display in dubai. The show went on despite the fire that consumed that luxury hotel. The fire broke out two hours before midnight. Burning debris had been raining down from the building. Dubais media office said there had been 14 light injuries from that fire. [fireworks explosions] betty welcome back. Its time for the Bloomberg Business flash and a look at some of the biggest stories in the news right now. Goldman sachs got it wrong on the treasury yield this year. But sticking with the forecast for 2016. They say it will reach 3 in 2016 in though it hasnt been that high in two years. It is the benchmark for everything from or he just car loans. For the first time in five years, sugar prices will post an annual advance. And nextup 4 in 2015 year may be better. Producers can give the credit to el nino. It has hurt crops in india and in thailand. The worlds biggest banks dont appear to be finished with cutting jobs. Since 2008, banks have eliminated about 600,000 jobs. Almost 50,000 of them came in the fourth quarter. Deutsche bank says it will get 018. Of 26,000 jobs by 210 the daily mail says that malone investigated discussions with vodafone. A program thats provided Free Basic Internet Services to more than 3 Million People in egypt has been shut down. The social network site was launched three weeks ago. Disappointed it is in the move and hopes to resolve that situation very soon. We will be back in two minutes. Betty welcome back. One of the biggest stories this year for markets was the collapse in oil prices. Will it still dominate headlines in 2016 . Our guest weighed in on bloomberg surveillance. John my thing oil will be the big question for 2016. Is it going to go further down . Blago the high 20s, wifi for wti . Maybe 25 for supply and demand is not as great as we wanted it to be. It is quite anemic. Betty he also spoke about saudi arabia spending controls. John it is tried to be fiscally prudent. It proved the imf to be wrong with its fiscal deficit forecast for 2015. They ended up having a 13 to gdp deficit instead of 22 that the imf was claiming they would have. Betty the s p is currently on pace to snap three straight years of gains with straight declines. It has left just the nasdaq in positive territory for this year. Julie it is down to the wife of the s p. Is it going to be up . Is a going to be down for the year . Joining me is scott bauer. Thank you for joining us. We are past the first interestrate increase now. You sent me your notes earlier today. Maybe now we can focus on what matters most, the economy and earnings. Personally, i say that is pretty optimistic. Im sure the fed will play into it as well. Certainly, economy earnings will be a big part of the scenario in the early months of the year. What are you expecting . Scott i agree with that. And i hope for everyones sake is that is what we can get back to, fundamentals. Theres good to be the angst and anxiety about are we going to raise or not. It is really being factored in for 2016 that there will be somewhere between two and three rate hikes for the year. 60 chance right now that there will be another rate hike in march. But it seems like the pressure is off. Hopefully, we can really focus on corporate earnings and the economy here and really get back to more fundamentals than some of the extraneous things we have been watching. Betty i know you have a specific stocks here trade. I want to ask you more broadly how youre sitting yourself off from a macro perspective. 2016 will be a pretty decent year. I think the s p is went to raise it will probably be up somewhere between 5 and 7 . Nothing gangbusters, but barring any sort of macroeconomic or multinational event, anything coming out of the middle east, it is going to be a good year. If we can focus on earnings. If we can get back to the economy. If we get some of those interestrate highs this interestrate rises. Its been dismal. It has been a dead carcass. There is nothing going on. , at then get that going end of the day, if we can get some inflation, that is better for mainstream america in the end. We are not overvalued here. The s p is somewhat fairly valued. So if i percent or 7 upside is really what i say i see. Julie we have had a couple investors come on recently who have been pessimistic who are saying that we could even enter recession this year, this coming year or the next year. Curious you, but i am to give us your chicago sentiment. It doesnt sound like something that is widely held. Scott not from traders on the Trading Floor and from the people i speak with. I think most of the people down here and i hate to say that i am part of the pack where they heard because i am usually one of the contrarians but most of the guys down here they there is differently some down here think there is deathly some decent air. Definitely some decent air. My advice would be stay in the market and protect yourself. And take a little insurance as we go along. Julie you are looking at Lockheed Martin and that has to do with the u. S. Government and a new Super Hercules aircraft. What do we take from this stock and what is your strategy when it comes to lucky . Scott the announcement today was not unexpected. This was really a verbal agreement they had back in october that was just officially announced. Albeit 5. 3 billion deal is a big deal even from lockheed. But the stock really stalls at some major resistance, the 50day moving average. With this news at and the stock down a little bit today, i think the near term here, we start to come back down and start to trend back toward the 200day moving average, which is a major support down the 204 level. I am going to buy six weeks and i will buy that to 10205 put spread. I can do that right now for a hundred dollars. That is great risk reward. I am risking a dollar here and i can make four dollars on this trade. The thing i really like about it just throwing a dot at the wall. It is looking at technicals. 11 a 12 move between the expiration. If we get it at the downside, we are at the 203 move where i will make some money. Julie great to talk with you. They betty much more on Bloomberg Markets straight ahead. Stay with us. Bring your family and friends together to discover the best shows and movies with xfinitys winter watchlist. Later on, well conspire as we dream by the fire a beautiful sight, were happy tonight watching in a winter watchlist land, watching in a winter watchlist land xfinitys winter watchlist. Watch now with xfinity on demand your home for the best entertainment this holiday season. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Betty you are watching Bloomberg Markets. Lets get a check in on the first were news this afternoon. Arrived in dubai a short time ago along with a big fireworks display. It took place across the street from a luxury hotel that is now engulfed in flames. 40 people have been injured. Firefighters 14 people have been injured. Firefighters have been working on it. Been arrested for plotting to attack revelers at a restaurant in rochester. Also chicago officials release hundreds of emails today related to video of a white Police Officer fatally shooting a teenager 16 times. The release of the video after a years delay set up weeks of protest. New information about the woman accused of intentionally plowing a car into a crowd in the las vegas strip. She tested positive for marijuana after her rest, but they dont have plans to add that as a charge. One person died and dozens of others were injured in the crash nearly two weeks ago. And ted cruz raised nearly 20 million in the last three months. That is up from 12. 2 million raised in the previous quarter. He is currently leading in iowa. That state officially kicks off the voting season in february. Betty thank you so much. Green as we near the end of talk withnt to Abigail Doolittle about the winners and losers on the nasdaq. Abigail the composite index is the only major equity index to finish the year higher relative to the other equity indices. This will be the fourth straight yearly gain, ontrack to end 2015 on a record closing high. The 100, worst on were looking at wynn resorts. But the worst is micron. The stock hassay bottomed recently and say that micron may in fact be a turnaround sought for 2016. Lets end the year on a bright note and go to top performers amazon at netflix amazon and netflix. They were up more than 120 in 2015. Even though netflix is the top percentage winner, amazon is the one that really stands out. The triple digit stock pulled a of analystsith 83 bullish on amazon, 2016 may turn out to be a strong as well. Betty thank you. The break, we will be talking with the same distressed investor. Wilbur ross joining us here and out where he is looking for opportunities in 2016 and what he thinks about the growing crisis in puerto rico. Betty welcome back. This month, janet yellen said sent said something that gold prices on a roller coaster ride. Some are predicting there is only one way gold prices are heading next year and that is down. It is heading for its third annual loss. Is jo do. Now this is the worst in decades. Why . Joe we really like to dig down into those quarterly numbers. This is the longest stretch in more than 30 years. 1984. We saw a lot of this come on when the fed looks like it would raise rates and in fact they did. Once that happened, it was a done deal that goldman is not going to have a chance of moving higher this year. The gold bullsis looking for next year . Joe they have been calling for a number of rate hikes for next year. People that are on the other side of that trader trying to say, ok, fed is not going to go as quickly and you have easing around the rest of the world. The ecb, the bank of japan betty it seems like everybody us is easy when the fed is hiking rates. Where do they see the price of gold at the end of next year . Joe the bears are obviously looking at 1000. The bullish folks, i think they are less inclined to give you actual numbers. Betty they have been burned. Joe they have. Three straight years. And they have not been good years. And they have not much of a good reason to believe they will get much of an upside in gold. Some traders say, well, we can see it going 11,000. Thats easy. 1100. Thats easy. But these people are a bit more skeptical. Even if they say i am more on the bullish side, they are not saying that they are entirely optimistic. Also the dollar has been going against them as well. What do they say about the dollar . Joe the strengthening dollar, the bulls think there should be some sort of a pullback because the u. S. Had such a strong year. But they are the same was her saying that maybe the fed is not going to hike as quickly as some people expect. Betty thank you so much. Rico, a la oerto Garcia Padilla saying that their government will default on 87 million in bond payments tomorrow. The island seeks to restructure its 70 billion debt burden. Joining us now with more from boynton beach, florida, is wilbur ross. Youur, good to see particularly on the last day. A nice day to end our show in the hour, the last trading are of the year. Is this the end . Is this a deadend for puerto rico or what . Wilbur i think it is the beginning of the end and the end of the beginning. What i mean by that is this. Puerto rico does have too much debt. It does have debt that it cannot made. But those are the results of some fundamental problems. The real problem is not the debt itself. The real problem is puerto rico has too many government employees, too many government retirees, too many people on welfare, not enough people actually in the workforce, and it has a dysfunctional economy. It is more or less the u. S. Version of greece. Betty it surely seems that way. You have heard the puerto rican governor out at the creditors, calling them mulcher funds. Do you think he is governor lash out at the the creditors, vulture them funds. You think he is right . The idea that it is a bunch of gravediggers is really not very accurate. It just is not. But in any event, nobody forced that money on puerto rico. Puerto rico invented all sorts of schemes to borrow it. Variouslateralize sources of revenue. They set up different agencies. They made different tiers of guarantee a nonguaranteed. They worked very hard at couldzing the debt they take on. And now, because they have steadfastly refused the most fundamental structural reforms, now the moment of truth is coming. So now they suddenly blame the bondholders. Betty is there an opportunity here in puerto rico now . Wilbur i think there is an opportunity. You can argue that, if the government made the necessary reforms, and if it fixed at the big public utility, which uses the wrong fuels, its notoriously inefficient if they fix that, which contributes greatly to the excessive cost of operating in the island, then it would be rational to talk about some sort of a debt system. But no one is going to go along if puerto rico just says, look, everything has to stay like it is accepted the investors dont get their interest and their principal third thats not going to work. Ple. Nd their pinci thats not going to work. Cities and counties can file chapter nine. That is the tax exempt equivalent of chapter 11. But states and territories are not permitted to do so. And they should be. If they were, you would suddenly unitedlinois filing, california filing, a slippery slope. Betty not setting that precedent is what congress is talking about. Great to see you. Thank you for joining us and taking a break and being on our program. Fromwas wilbur ross florida. We will be back in two minutes. Betty welcome back. We are 15 minutes away now in till until the markets closed for the entire year of 2015. We asked some of our guests with the biggest risks they think are going into the new year. , whatn you look into 2016 is the biggest single risk that you see . The biggest risk in the economy is further deflation in much of the world economy. We have this thing called the virgins. We are diverting policy and that, in my opinion, is the biggest risk. Diversions between geopolitical risk and the i am isnomic risk that concerned with because that would be difficult to leaders to deal with. The significant out turn of u. S. Inflation is much higher than anyone expects. A large number of companies that have used low Interest Rates in the United States to fund themselves and some of that funding has not gone to the right places. Gameig came changer changer, if the fed actually achieved liftoff, you would get to the point where investors pay more attention to bounce sheets. The risk comes from the United States. If we have a dollar overshoot, then that will bring up the chinese for nimby simultaneously. Renminbie simultaneously. We dont have the political will to have fiscal stimulus or to go back to qe. The biggest risk falls under the category of lack of cooperation. Iraq is probably the biggest risk once more. There areuld a stand, reports that even in the even in kurdistand, reports that they are unstable. No growth. Of slowdown in growth where it is happening and no growth continuing where it is not. I think we understand how important it is how we, as an ,nternational community cooperate. Hopefully the engine of the car is turned over and it cost per if not, i dont think we are prepared for the downside. Investors over the last six years have enjoyed tied lifting. And now you have to pick your spots. There you go. Those are some of the risks. Now time for the bloomberg is miss flash. Bloomberg business flash. Americas shopping for the holidays were the most upbeat about the blight the buying climate. Mortgage rates rose last week for the first time in five months. The average 30year fixed mortgage went up 30 . Warren buffett has purchased another newspaper. The purchase includes the freelance star and prints and a readers, both located in prints innovators, both located in fredericksburg, pennsylvania. Investigation of blue bells handling of the listeria outbreak. If bluebell know new about the outbreak and how they responded to aid. Contaminated ice cream was linked to at least three deaths and dozens of illnesses. Is the price of a hamburger likely to get cheaper. The ground of meat used as fat in a burger known as trimmings has fallen to a threeyear low. There is more trimmings because candles filled their cattle with because farmers fill their cattle with cheap grain. Mike hollins is a flat year isnt so bad. He spoke earlier today on bloomberg surveillance. Mike it was a banner year if you think about where we were a year ago. The Federal Reserve said we are taking the training years off. Training wheels off. Now we are going to stop doing that. When the fed moved away just a little bit, it didnt cause the world to come to an end. We had a flat year. Thats not so bad given all the things that happened during the year. Vonnie [indiscernible] property markets are also richly valued. There are no doorbusters available in world financial markets. What do you do that . Then . T do you do we started in 2000 eight. That includes real estate by the way, you didnt mention commodities. At the end of the day, each of these markets, there are some stocks in each of them, some properties in each of them that are properly probably mispriced. Charts game one is to underscore this point, the point you are making about what to expect in a year like 2015. The question is whether 2016 is going to look like this. Reward is not really the foundation of capital markets. Something is going to break down if for more than one or two years we end up with flat returns in corporate and treasuries, measurable returns on negligible returns on stocks and that kind of return on highyield. Michael i think you stopped on something. Cash is not a bad thing to have. The reason i say that is not so much that i am concerned we will go into a huge bear market. We simply have another year like 2015, that is probably ok given what vonnie just described and everything is really, really expensive. Bear marketing to a as a cyclical kind of thing. The largest 2015, risk is terrorism. Everything is just fine with what we had so far. If i am the head of isis, i think i can do some thing about that. Betty that was mike holland speaking earlier today on bloomberg surveillance. And now we have all of the oliver r all of her enick. Oliver we are getting close to the repeat of 2011. There were a lot of things that happened. There was an epic decision that people were waiting for a long time, which is the fed finally moving. If you actually look in terms of how this has affected traders and stock market investors, i think it is a distinct change in the sentiment, in the way people respond. There is a lot of caution. When you go through an experience of august where stocks drop 11 before the market opens with some companies more than 10 below their lows and huge moves happening, it jolts people and wakes them up and says, look, even though we are still in a bull market, perhaps there are some tracks starting to form pair of you have corporate suite we. You just start to ask questions. Betty we do feel like the momentum shifted in 2015. Investors, are they expecting the American Consumer to keep us aloft . Oliver a lot of that is driven by fuel prices and that americans will have more dollars in their pockets and bring back a stronger economy. What is interesting about it is that this is a sector that was the biggest can biggest performer on the year. But it has some of these biggest winners for the year but also had the biggest losers across the entire market for the year. So you have this disparate types of companies. You have old school served macys betty walmart down 30 . Oliver people go and spend their money elsewhere. Discretionary category, the emotional growth categories, netflix, amazon, high multiples, expenses are presenting an opportunity just expensive the ones that are expensive are presenting an opportunity for growth. You have to search for growth when it comes to these companies. A lot of the gains are that is a great point. Just when you think there is a direction, it is actually a lot more nuanced. Lets head over to julie hyman for a quick check on trading as we are just about to close for 2015. Julie i hate to be the bearer of bad news for the bowls but it looks like we are going to post a loss for the year. Asd 1 was the law set oliver was just talking, Consumer Discretionary stocks were the winners this year. Amazon, netflix, some of the other more techrelated Consumer Discretionary. Counterbalancing that and outweighing the gains, of course, commodities. Commodities are the big market story of the year with energy down 23 , materials down about 10 , and utilities also losing on the year. Finally, if you look at the individual stocks in the s p , netflix and amazon. On the downside, again, coming back to oil. There were questions about their Balance Sheets and liquidity throughout the year. You got southwestern energy, chesapeake, consult that are some of the underperformers here. Chesapeake this year. Jersey,here i am in new i am certain to finally see deeper oil prices. It has taken a while. Son of some of these bowls prices that lower oil will help consumers next year, that may pan out. Julie but you have to look at spending patterns. We did not necessarily spend it at walmart. We did not see necessarily the benefit. We have seen people go to netflix. There did seem to be at least a perceived Tipping Point this year perhaps in how people are spending their money. Betty what are you doing for new years . Julie i will be at Madison Square garden tonight. Betty that sounds like more fun than me. I will be home with the kids. [laughter] the grass julie the grass is always greener, betty. Betty she was saying, it looks like we will close out this year on the s p lower. We will not eke out that gain we might have seen. We lost that rally we saw in the earlier part of this week. The nasdaq is also basically the only index that is going to be closing near its record high. That does it for Bloomberg Markets. Happy new year, everyone. On monday, dont miss the exclusive interview live with loretta messer. It is back to business in 2016. Scarlet we are moments away from the closing bell. I am scarlet fu. Joe weisenthal and alix steel are off today. Scarlet u. S. Stocks finished lower on the last day of 2015. The s p 500 in the red for the year. The question is, whatd you miss . We show you the detail that missing,len might be and what that could mean for Interest Rates. And, how much will residential investment increase in 2016 . 2016. He biggest risks in you will hear from experts in the business about what they fear the most as we ring in the new year. There you have it, a live shot of moscow as they get ready to ring in the new year right there. That is, i dont know the name of the river that is red square in moscow. New years day in much of the rest of the world, we are still