I dont now. If anyone in my family or anybody you know where shopping this year it sure sounds like it were at nike. They killed it yesterday. Lets start with the first word. Vonnie thank you so much, human Rights Groups russia could be guilty of more crimes in syria. They are dropping unguided weapons on densely populated areas. The group says hundreds of civilians have been killed. Government troops are fighting Islamic State forces. He was spokesperson says and a rocky victory is inevitable but once the greg or easy. American drivers up at 1. 6 billion back into their wallets during the holidays this year and it is all thanks to cheap gas. Prices are under two dollars a gallon. Bloomberg newss power 24 hours a day in more than 150 markets around the world. Firste a look at off futures. Up across the board. Back again back to sticking off the week. Could this be day three . 0. 2 . Ht now dow jones up about a third of one percent. Upe a look right now at wti, for a third day. Big gain yesterday we started the week at 3450. Pretty good week so far for a commodity that has had a pretty rough time of it. Thehart of the day is convergence. Take a look, i have graphed the two over a month. Comean see, they have together in price. The rest typically a spread here, why have they converged . It is likely that opecs gambit to push u. S. Out of the business is working. Is dying off,n that is holding the u. S. Price steady as brent crude dives down. Today. Fascinating stuff also, nike, take a look at the shares in the premarket after coming out with our earnings that beat expectations. 25 to revenue was up about a billion dollars for the quarter. Defying the rest of retail. At othereen looking retailers, and have all done pretty poorly. Nike is up 37 . Stephanie retailers have done poorly, but not specifically in Athletic Apparel and footwear. Clearly, nike killed it. Up 35 . Lready whether we are talking nike, adidas, under armour, compare lauren, tommyalph hilfiger, any of the department stores. You are looking at a tale of two retails. Kyle you can only where so many pairs of shoes during a day. You push the envelope. Stephanie but, more and more we are wearing Athletic Apparel. Nike is proving this time and time again. Live events and sports are what you care about the most. In the world of connected fitness, more people are wearing Athletic Apparel. I do try to push that, more people are wearing sneakers. More than just trainers, it has become lifestyle apparel. 19 of their sales is running, 40 as basketball, the rest is amorphous. Regular workout close, streetwear. Stephanie what is driving this . It is fashion, it is style. They had a huge quarter in china. This quarter particularly, i think the mild weather helped. Toward summer where, so i think the fact that it was a warm fall jason, one of the things that the jump out at me is the china numbers. What is the consumer doing . This would indicate is doing pretty well. Jason china also plays in as know into this megatrend synthesize this with some of the things people are talking about with this active lifestyle. The to china from an athletic outpacing north america. The chinese just bought iron man. This massive middle class in china that is pivoting towards a trend weve seen in north america which is athleisure. Way we dress is fundamentally changing. Stephanie think about all the basketball players, and the impression they have. Remember linsanity. China shit do thisut down to watchi guy play. Kyle they will love it. David something struck me with the numbers is all of this, the move to athleisure wear gave them pricing power. Son what do you think its them in the way . Kyle i think his big push to direct to consumers in like a great idea. Is a lot of low hanging fruit. They can just open web stores that is easy to do. That is easy money. Ban theckly, i will term athleisure. The rule is only stephanie gets to ban terms. Nike is the runnerup when you look at the big athletic wear stocks. I will stick with that. A 37 again. Adidas soloman, i made a chart here for stephanie, how has nike been doing . Versus regular retailers, i put in nike iin white, then my my favorite, lululemon, and using Michael Cores which makes handbags and ralph lauren which makes the preppy clothing that he never thought would go out of style. That is doing the worst. The athletic wear it has to be the shoes. Stephanie ha ha ha, thank you. Matt are they making money for wearable tech, or compression underwear . It is really the shoes that differentiate them from the other guys. Stephanie i spoke specifically about wearable tech because they stopped producing that. An apple watch. I continue to do that. I am excited about where the apple watch is going. I know that is a huge priority for the company. We will see that grow and develop more and more. Nike will be a part of that. Stephanie this is what is interesting. Number how closely tied nike is to apple . Theyve made a very clear that connective fitness is what theyre focused on. The fact that it looks like nike has pulled back, could there be something between those two Companies Call it hardware for a reason, it is hard. Both of these Companies Love locking people into the proprietary system. I think people that work out these days they might want their own data. They might want their heart rate and the straight facts which they can get at other companies. Or underit bit, armour. David you asked earlier what will knock them off this quest for world domination. Are up 20 . They will have to spend more money on marketing with the new lebron james deal. Mattis had indicate that this is a crowded field. This is not this is not just there to take forever. I personally would keep an eye on lululemon. Down, inen up, and terms of the stock price. But they have a lot of people nipping at their heels. A lot of Smaller Companies coming after this. On, do youhold believe that is why nike signed a lifetime deal would lebron james . Just a few years ago nike had no competition. If you remember kevin durant nike was giving do you think that is why they signed lebron forever . Ason they are thinking about not replacing jordan, but that legacy of a franchise player. Stephanie what would motivate them . There inas just out portland, apparently lebron came there and sat down with a couple dozen people from their Marketing Department and said ask me anything. Them sothat made comfortable with who he was as a person, and an athlete, that they said lets do this thing. Nike invented the idea of the branded athlete. Have someone like under armour that is right in their scrapping and out. They have to make these big deals. , wehanie the one category talk about is so much. Workout we want to go out and experience and these of the companies that facilitate. About ane nike ads are experience. Stephanie all of them. David thank you for joining us, kyle. And jason, you will stay with us. Vonnie welcome back to bloomberg. Ec says demand will continue to slide into 2020. The annual World Oil Outlook says they need 30. 7 Million Barrels a day by the end of the decade. And a million less than the group pumped in just november. Consumer purchases climbed in november by the most in three months. Economyd in the u. S. Was gaining momentum into the Holiday Season. The spending match the median forecast. The u. S. Movie industry is on crack 11 billion in annual ticket sales for the first time ever. Thanks to blockbusters Like Star Wars the force awakens world. Assic that surpassed the Current Record of 10. 9 billion set in 2013. That is the Bloomberg Business flash. David now lets take a look at some quotes around the world. Have jason kelly with us. And matt miller, would you like to come all the way over here. We have to let jason talk some. This first quote is from a fantastic story. This is a businessweek cover story inside to pull lays crisis. Crisis. Tles there is no e. Coli integral like, it is a very exciting time for us to be pushing the boundaries on food safety. We are embracing this as an opportunity. [laughter] stephanie that is an aggressive headshot. It was jarring. We are pushing the boundaries on food safety. I dont want to be involved in the kind of boundary pushing involving the safety of food i put in my body. Good luck with that. David you love chipotle. A delicious lunch, or an e. Coli weight loss. That is not a strong way to start the quote. Matt i talked to some of the guys who worked on the show yesterday and did a whole, almost all of us have gone to chipotle. Look, it is kind of a roulette thing, but it is there and fast and accessible. , i and never, no going to be in a situation where culinary roulette. If you go back a year everyone was saying mcdonalds was over because of chipotle. Jason it is amazing. Stephanie i cant, i cant. Jason this is from the head of m a at barclays. He says there they are in the late stages of the cycle. We will see higher number of deals next year. This year has been dominated by the megadeals, it is likely that will slow down. It will come from suffering. From oil prices dropping, we will see m a by default not opportunity. Manyve balance sheets, how are going organically. We will see it for a very different reason that you. Jason what is consistent throughout the story, they do a great job of breaking lots of news, they make the point is that it is much smaller deals that we will see. So, the stress and debt, high yield, this is from the head of the hedge fund talking but the distressed debt trade. It is like a cancer spreading throughout the body. Mining,s, metals, and health care, they are all impacted. Stephanie this is the question are they going to be in fact outside the world of high yield . So far, we are seeing it somewhat contain. The real issue is high yield is trading at 6 and that december the wrong number. Now possibly we are getting things right. Jason price action is the cancer. Nothing to do that the fact that they have taken loans at higher Interest Rates than the fed. It is just the fact that the price the floor has fallen out for prices. That will hurt any of the debt they have held. Jason doesnt really get into the equity market, to your point . Stephanie or was it unsophisticated investors suddenly buying highyield . Jason and matt arent going anywhere. We give a shout out to one of just added to the management committee. That is a big deal. You are one of the richest women in america, what are you want for christmas . In million ski chalet of course. We have some amazing amenities, a heated driveway and a spa with a private wine shaft. House,phone operated maybe a special place to earn some Weight Watchers points. We will be back with more just a few minutes. Stephanie some of the biggest headlines in 2015 where the drug industry. These trends are not going anywhere. Analysts just published the 2016 outlook for pharma. Sam, in your 2016 lookahead, is pharma please and poisoned . Anwell, i think that is interesting phrase numeral the drug companies. See theyoull probably rhetoric will continue into 2016. I dont think there is any opportunity that will be lost by politicians if they can. I know another example to use potentially on the price rises and some of pharma the Liquor Companies have a putting in. We haveity is that quite a bit of indepth analysis on this. The probability of changing the law could bring in more control by the government and the drug prices. At least it is low in the near future. I think what is reality is that doing a lot better than they have been in terms of curing patients and meaningfully significantly enhancing the survival of a cancer patient. And Pharma Companies are pricing in a way they think is relevant. That is where i think payers are more interesting in terms of what they will do. David this sector has done very well over the last several years compared to the s p. Where does the growth come from . Saw during 2015, i think that rerating of pharma took place. Somewe started to see stocks specifically moving. If you look at the gulf between losers, 53 on a total return basis compared to novartis. You get very wide disparity. The same happened many u. S. In the u. S. Same will be the same story 2016. Jason are there specific areas where you are seeing a lot of investment . Sam i think, again, we will a replay but on a much bigger scale of the oncology revolution taking place. Pharma and the science has figured out how to remove the invisibility cloak of tumors own immunetients system. I think we will get a lot of news there. There was an outcome studies where they are really trying to ae whether their drug makes huge difference to the mortality of their patients. Drugsare some new lipid that will be about that. That is the areas where we could see a lot of excitement. Stephanie we will leave it there. In our london bureau. When the come back, were talking brexit. David welcome back to jason kelly is still with us and tom keene is joining us here. Lets check first with vonnie. Vonnie robert durst will face a murder trial in los angeles. They have agreed to and next tradition by mid august extradition by mid august. Prisoner releases are suspended in Washington State until a computer glitch that freed inmates early is fixed. 3000 prisoners have been released by mistake since 2002. Some inmates got out nearly two years early. Holdout, Universal Music Group says the songs will go online tonight and minutes after midnight. David that is a very big story. Original uproar a million years ago and neil young screaming about the fidelity of streaming, that is a big deal that the beatles will finally be out there. That is a real landmark announcement. David totally right, totally right. Stephanie lets talk come and listen, what is your must read . And radio, coming out of his kitchen. Theyre making christmas cookies, adding the first one was 40 proof. [laughter] lets do Larry Summers hit with christmas cookies. Byry talk about this in due dubai. The geometry of john hicks from 1939. Which is all the deflation and disinflation around the world coming back in and effect in the u. S. Economy. David, this is a mustread. David i totally agree with you. For those of you that dont know much of a the i. S. Curve, what i took away is that we are in a new world of zero or low growth. We have a lot of people making decisions based on the old models. Phelps it is very important speech seven years ago, we are looking for the new new to jumpstart where we are. We are in paris with climate control, maybe that is a new new. That is there, that is what we are searching for. Stephanie you mean tom Larry Summers is your a respectful to the optimist criticizing him. He is not doom and gloom. He is just saying theres a new dampened tone. Stephanie when i think Larry Summers, the first thing that comes to my mind is respectful. It was interesting to try to figure out what he thought the fed should do. He was calling into question the latest action around raising Interest Rates. They are doing this, it is not the end of the world, not that they are wrong. What the probability of where we are next year and that huge risk that they raise rates a couple of times that have to go whoops, like the japanese did. David it is not theyre doing a good job, but they may be the wrong people. At some point, was in the Central Banks cant do it. It is clear Monetary Policy cannot do it. Tom in our discussion, secretary summers three times r ipped into the Port Authority for not rebuilding jfk. The leadership of the United Arab Emirates was there, and we cant fix jfk. He kept circling back to that as a kind of funding that would help. David that is fiscal stimulus. Stephanie he has been calling for this for years. The fact that it is now playing saying is sitting there how do you like me now, because he was right. Tom are there any christmas cookies here . David only with a lot of bourbon in them. Jason do you think the fed is listening to Larry Summers . Yes, whether you agree with him or not, everyone listens to him. What is so great about him is he respectfully disagrees. You know what, they both listen to each other. Stephanie he wanted Janet Yellens job. David he was a candidate. He was a candidate for the big dont want the job, they wait to be called upon. Professor summers was not called upon. Stephanie i think he wouldve liked it. Lets get a quick check on the markets. Lets take a look at the markets here. Up across the board if we open up and close out it will be the third day in a row for the s p. , an interesting stories agreement reached over a drug to sell it. He first and 20 22 the first in 2042. Take a look at bed, bath, and beyond. They had some disappointing forecasts out, and preliminary earnings reports. Samestore sales will be down. Its not a gain there, but how much can you buy back when it is ng at it to gains for the third quarter. We hadlook at micron, sales miss estimates. Analysts expected the company to miss their own estimates. So much. Anks we will return now to a story with covered quite a few times on this program, the story of syrian refugees. At least 13 migrants tragically were reported dead this morning at a small plastic boat sunk off the coast of a greek island. These were some of the more 4 million registered refugees seeking resettlement from syria. The International RescueDavid Miliband joins us now. We know this is a big problem. What are the specific actions that can and should be taken to start addressing it . David the three things that are absolutely paramount now, syrian is the humanitarian catastrophe of 2015. First, the sheer mass murder and terror going on inside syria is driving people out of the country. 37 of the people arriving in europe this year, they came straight from syria. Away from the barrel bombs and the terror of isis. Thendly, there is no top of organized routes for these peop