And you will meet a woman who has turned her success into a lucrative business career. We will explain. First, lets get the headlines from carol massar. Alcoa reported Fourth Quarter profit that missed estimates. Shares falling by as much as 21 in late hours trading after casting a fourthquarter loss. And Stephen Cohen of sac capital was one of the biggest winners today. The firm is shutting down its Investment Advisory business after pleading guilty to securities fraud. The hedge fund owned almost one million intercept chairs as of november 7, translating to an intraday gain of more than 200 million if the state is unchanged. Back to you, pimm. Those are the headlines. I know, you were going to go there. New Jersey Governor Chris Christie apologized for a traffic jam that was triggered by an aide as an act of political revenge. I believe that all the people affected by this conduct deserve this apology and that is why im giving it to them. I also need to apologize to them for my failure as the governor of this state. To understand the true nature of this problem sooner than i did. In response, governor Chris Christie fire the staffer, saying the conduct was completely unacceptable. I am embarrassed and humiliated by the conduct of some of the people on my team. There is no doubt in my mind that the conduct they exhibited is completely unacceptable and showed a lack of respect for their appropriate role in government. For more, i want to bring in our Political Capital host, al hunt. He joins us from washington, d. C. What is your reaction . You know i have covered politics for a long time, and im not surprised at at president ial politics when money or carousing becomes an issue. I never thought i would see the day when the George Washington bridge became a major topic. I think this is a really bad story for Chris Christie, potentially lethal. It plays into a larger image. Having said that, i thought that his almost twohour session today with the press was a tour de force. It was as good as it gets. It ought to be taught in last rooms about how you do an apology. The issue now is whether more will come out. If this is all over, he may be able to contain the damage hurt, but not lethal. But if there is more there any federal investigation, then he could lead to an end to his political aspirations. Does this really jeopardize his 2016 chances . If this story has legs and continues, yes. I will tell you why, because it is not just somebody doing something dumb. And he fired two very important people, which was a brilliant reaction, but what they did was thuggish. The motive was, this guy didnt endorse the governor, so we will show him. We will create a traffic logjam for hours. Nevermind, some people may have to go to the hospital, some school kids may be late for school, people will miss work. I think that plays into the whole sense of jersey tough that is not very attractive. Jersey tough that is not very attractive. Would it undercut his political appeal to his potential followers . Or is this an attempt at others . Part of his appeal is authenticity. Up until 11 00 today, he didnt look very authentic on this. That is why it matters whether more comes out or not. The right wing of the Republican Party cannot stand Chris Christie anyway. They will use this as an excuse to go after him. I dont think it is just a passing two or three day story. It is bigger than that. But it is premature to say that his president ial hopes are doomed. You can see more al hunt on Political Capital this friday night at 9 00 p. M. Eastern. He will be interviewing senator Elizabeth Warren right here on bloomberg tv. My next guest has worked to create a usa network and made a successful business. He is also on the board of pacific. They include liz claiborne, juicy good tour, kate spade and lucky brand. And she was the former chairwoman of the national womans business council. Thank you for joining us. Lets tie up the Chris Christie issue today and what al was talking about. You sit on the board of a publicly traded company. If you had Chris Christie as the ceo and this had happened, did he do the right thing . I think today he probably did the right thing. He did take full response ability and did apologize for it and he was very forthcoming about it today. The leading up to it in former press conferences and interviews, he was completely insensitive to the situation. I think he will have to answer for that for some time to come. I dont think the story is going away, because i think he will be attacked from the left and the right on this. When you were listening to al hunt describe how it was the right wing of the Republican Party that was going to use this, you are not in agreement. I agree, they dont get along. He has taken them on. He doesnt respect the extreme right wing of the Republican Party and they dont like him. That is not new. He certainly knows that. He has had several opportunities to address this issue before. And it wasnt just for me. People around the country it wasnt just for me. He will run the country think we are just talking about fort lee, new jersey. We are talking about the entire state of new jersey. There are many communities involved and affected by this. That is a serious proposition. I think he will have to answer for it. Al hunt also talked about how the image of thuggish behavior would be conveyed. As a business executive, do you see more of that in government . And does that poison the atmosphere to do business . I dont know that a poisoned the atmosphere to do business. I would not necessarily look at it like that. This is an individual. This is an individual trait of governor Chris Christie and he does take a heavy hand in positions in the state. He is not afraid to take anyone on and he is very heavyhanded about it when he does it. It is his own personal trait, for good or bad. There is an authenticity about the way he does it, because its how he feels will stop we are not mistaken about where he is going. Do i feel it is bad for business or is government being thuggish about business . I dont think so. I think government wants to be seen as a driver of our economy. As the founder of the usa network, the concept of authenticity is always being bandied about as only the preserve of social media, whether twitter, facebook, or other kinds of this type of interaction. Isnt authenticity what this business always been about . I would like to think so. I dont think everybody is often taken business. The best brands and strongest brands are authentic to the people who follow them. They have a core belief. They follow their core belief of what the businesses, who is being sold to, what the customer wants. I think it is becoming much more apparent which ones are succeeding with social media. Because it is not just selling or advertising these brands anymore. Its how they are interacting with their customers on a number of levels, including social media. People in social media detect when you are not being authentic. I have they have that ability quite rapidly. It is almost like a little meter, isnt it . It is. And they can tell quite instantly. And what is happening with governor christie right now is probably going to happen for some time because people will weigh in on it. We will continue in a moment. In the world of shopping and department stores, we will learn what kay has to say about jcpenney as well as gap. And later, a 3d printer that is perhaps, affordable. Details coming up. Gap holiday sales up over one percent over the last year. Macys announces job cuts and jcpenney is still a work in progress. My guess is a board member on fifth and pacific. You may recall it as liz claiborne. Some of the brands include Juicy Couture, kate spade, lucky brand, and as a footnote, kay just happened to found the usa network and was the chairman of the National Womens business council. Just a couple of things on her resume. A lot of different confluence of interests. Lets talk about retail right now. What are some of the big changes . Retail is changing dramatically in a way that, yes, we still have our shopper stores, Retail Business that is brickandmortar. Still the majority of sales are there, but sales are moving rapidly to online and mobile. Retailers have to integrate, both instore and mobile and online. They have to reach out to the customers in any way to keep them connected to their brand. They have to figure out how much they will do instore and online and have available on mobile inventory. And how they will compete with someone like amazon. Com. And of course that is always another issue. There is ebay out in the market place trying to support local retailers by being there on time Delivery System for them. There are lots of changes in the marketplace for retail. And one of the things that i think is really challenging in retail today is that we are training the customer to wait for massive sales, to take it vantage of highly Promotional Sales that are diminishing the margins of the business. We saw that today. We heard from bed bath and beyond today. A very highly promotional season. Retailers are really struggling with that. Of course, gap had its problems in last few years, so you would expect them to have stabilized and starting to gain sales against last years numbers. But still, it is very hard in this environment with the highly promotional nature of sales. And we are training the customer not to buy at full price. That is something that is challenging for retailers. You get a telephone call who knows, in the middle of the night. And it says, jcpenney would like to talk to kay. What would be the two or three things that you would want to get into the ear of those in charge at jcpenney . I think they are returning to a traditional expectation of the jcpenney customer. The jcpenney customer is a loyal customer. Half of america shops at jcpenney. But they were offended by the change of policy, taking away their promotional coupons. That was part of the brand. It part of the customer expectation. You could tell the customer that the prices will be lower, but if you take away the promotional coupons, people like to think they get a good sale price. It emotionally takes away their interest in buying other things because promotional coupons are to bring people into the store so they use the coupon, but they buy other things while they are there. I think they are returning to their core brands that they have available in the store. Mike coleman, who has returned as interim ceo, he has been bringing back his old team that knows how to deal with the customer. I think they are luring their customers back into the store. That is pretty good in this environment. Does that say to the challenge of transitioning a brand to a Consumer Group . I look at abercrombie fitch, they managed to do it, but it also in a sense has narrowed their demographic. Right, and they are struggling now. These things have their cycles, i think. A 100yearold brand or Something Like that is really in the market and can be lost. And can be revised as well, right . Yes, as abercrombie was, but it is rare and hard to do. Sears holding, for example. Exactly. They were losing market share, and it was stable. Consumers are so much more aware of how to come prater compare prices today. They are more sophisticated. They are. They have more tools than they used to. We will continue the conversation with k koplovitz throughout the hour. Later on, the sweet smell of success continues. I will talk with a lady who has become a leading expert in perfume. And you will learn about a special condition that she has. It helps her achieve success. Call it the wild west, if you will. There is still a sense of manifest destiny in content creation in which young studios are hungry to take market share from those stalwart veterans. Jon erlichman is our own veteran senior west coast correspondent. He witnessed sunday of this during his time at the Consumer Electronics show in las vegas. He joins us now from los angeles. What are the changes and who are some of the big names . Who threw the best party . [laughter] some of them are secret, and others not so much. It is a Party Atmosphere here, everyone telling you about the new technology, and the new platforms, too. Obviously, talking about netflix and amazon. They are changing things for hollywood. What does that mean for some of the hollywood players . Relativity media does film and tv. Here is what the ceo said when we caught up with him. Digital is probably the single rated demand for content. It is a great time with a world with netflix and amazon and hulu and google and at t and verizon. It is just everywhere you look, whether it be from traditional suppliers, over the top suppliers, digital suppliers it is content friendly. It has created for us an opportunity where we can get the content that the consumer wants over to the platforms that they want to have it. There is this legacy of putting it out one way, and now a little bit more fighting potential. What if you go to one of those new platforms first . There is tons of Television Content as well. You have a company like netflix. Maybe you will try original movies on your platform. You have lots of options on where you can put your film and television first. How do you decide . For us, there is no first. Our model is to give the consumer what they want. It sounds kind of funny, like it is everybodys model. You have guys who are 50 and 60 years old that are running this deal, so they could effectively say ok to this concept. When you have those who are 40 and 50yearolds developing the concept. And then when they spend 100 million they show a bunch of 18 yearolds and say, what do you think . And they say, oh, we dont like it. And then they spend 30 million trying to fix it. Our whole model is to do the reverse, use every medium available to put the consumers voice into our model. We are not giving it in a way that we are forcing them to have it. We are a technology company. Netflix, ironically, we were the first studio but that just means we are the only studio that can show our movies on every other service. You listen to him and you get the understanding of why you get this mix of technical and media and righties to have to work together. Thank you very much, jon erlichman. Kay koplovitz, how do you respond to what he was talking about . When we started this back in the 1970s and 1980s for cable television, it was like we programmed to what people watched and we try to guess and understand what they watched. Today, you dont have to guess at all. You can program a sonnys consumer. There are many different consumer interest. There are a lot of different formats today that were not viable before. The consumer is in control now. Thank you very much. We have more with kay koplovitz. We will tell you about a medical condition that could land you a job. This is taking stock on bloomberg. Im pimm fox. For a look at the headlines, i want to go to my radio cohost, carol massar. U. S. Jobless claims have dropped to the lowest level in the last month. Declining by 15,000, to 330,000. In a recent interview, janet yellen said she was confident the economy would grow this year, possibly as much as three percent. She will take over for ben bernanke as fed chairman on january 31. Her First Priority is to work to reduce joblessness. And california governor jerry brown proposed a record 106. 8 billion dollar budget. It is the biggest surplus in more than a decade. He called for 8. 5 and spending with money to pay off loans as well as increased funding for schools, welfare, and health care. Thank you so much. It is estimated that one in 23 people have a condition known as synesthesia. And Many Companies are glad that they do. In the latest issue of Bloomberg News this week, we explore what synesthesia is and maybe how to pronounce it and what unique skills people have that habit. Don is the cofounder and sent director of the firm 1229. And she has synesthesia. Also with us, of course, kay koplovitz. Have you met anybody that has ever had synesthesia . No, but i understand what they do. This is an opportunity for me. Tell us about synesthesia. How did you know you had it . Is a condition where you can use one sent to comprehend or understand another. I understood i had it in preschool when i was training my nose. I had a mentor that would paint perfumes for his clients. I understood the perfumes from the pain. Tell us about that. When i smell an odor, i involuntarily and automatically see color and texture. If you tell me you want a sense that smells blue and has the texture of velvet, that i can create that for you, and not just for you, but anyone that smells it. This is fascinating. Did you know these kinds of skills existed . I knew they existed, but i did not know that companies were now trying to take advantage of people who have it. It is not just sent. In our article, we talked to an engineer at ford who basically in his mind can visualize he will touch something and see shapes in his mind. He can touch the leather of a Steering Wheel and decide whether or not it is the right texture because of the shape that he is seeing in his mind. They are paying him to do this and they are saying that the car seat designing are more pleasing to drivers. This sounds like the conquering of the consumer. The consumer being in charge. It really is, and its fascinating that you get these images. I think this is a fascinating career. It really is. Tell us about your company. It is an olfactory branding company where we create brands. We take the brand identity or personality and translated into a smell. We use that smell and through different touch points, products, packaging, pretty much anything that they want to use to communicate that brand message for the consumer. And you had some pride not ask featuring kate moss, heidi klum, lady gaga, as well as victoria and david beckham. In my previous industry, i work for cody. I did most of the celebrity perfumes. What are some of the most popular sense that people want to create . What kind of feeling do they want . It is very cultural dependent. Depending on where you live and your age and demographic profile, what you want will change. For someone like lady gaga, who may be talks to 16yearolds in china and 25yearolds in brazil, you have to know the cultural touch olfactorily for those consumers. What was the touch point for lady gaga . You have to take into consideration so many cultures and so many age groups. In the end, she ended up creating something that was good for all of those different ones. I wonder about how the different perfumes and scents work on different people, because people have different skin types and moisture composition. One thing that was great on one person may not be great at all on another of the same demographic description. I find this fascinating. I think it is kind of individual. What we do when we create cents for brand we mostly do not create them for skin. We do it through an environment or through a scented production. But will he do create them for skin, wed keep that in mind. And it does change on your skin temperature, texture, what kind of climate you live in, food you eat. It is fascinating. The synesthesia part of your talent, basically is that in your article you talk about how other people will understand that this scent works with the brand, but they wont be able to connect that because our neurons are pruned apart in a way that yours arent, i guess. We will also sense that the sent his correct, but we cannot exactly pinpoint why. But she can. There has been Research Done by scientists and psychologists that shows that when you give normal people odors, they can choose which color the odor connects with. But they cannot involuntarily tell you the color themselves. I see that backwards when working with a brand or working with a person or celebrity to therefore translate them into a smell. I mentioned that one in 23 people have or could have synesthesia. Are there some other people that you know that habit, famous people . Can they had four different types of synesthesia. He could touch you in so many different ways. There have been many others. There have been many musicians. Billy joel has synesthesia, which is interesting, too. He created this amazing music, so maybe he did it through one of his other senses. And now they are creating things specifically for people with this, especially in the design area. The guy at ford has his own cross sensory design title. Fascinating. Thank you all very much. Fascinating. To read the latest issue of bloomberg businessweek, just download the app. It is free on your iphone, ipad, android, everywhere. Coming up next, youve heard about companies popping up on the bitcoin bandwagon. We will tell you why. The easiest way to get a bitcoin may actually be to buy one. However you can also create your own. Here to tell us about the world of virtual currency, yes, we have kay koplovitz, member of the board at fifth and pacific. We will talk about some selling and reorganization there. And joining us now, bloombergs resident that point expert, matt miller. Dont look so down. I was thinking, can i buy some Juicy Couture gear with bitcoin . How long until can they come out and say they would do that . They will, and you know i spent a couple of weeks only using bitcoin, not using u. S. Currency at all. I bought groceries and a lot of beer. I bought a plane ticket, concert scenes. And it all worked well. It did. The whole thing is whether it is a better investment to just buy a bitcoin straight up and hold it, or to buy some very expensive equipment and mine for bitcoin. Obviously, it is not the traditional pickax and wheelbarrow mining, but you buy these computers that are specially made to help you keep track of the worldwide bitcoin ledger and solve these incredibly complex mathematical problems. And as a reward for your work if you do some of this work, you get paid in bitcoin in this system. The question is, which one is more profitable . While they are debating that, the really smart guys in the room are saying, you know, im just going to make the machines and sell them. They dont want to go mining for gold or buy any gold, but just sell the pickaxes and wheelbarrows. Do you understand this . I have a general understanding of bitcoin. I think there are a finite amount of bitcoins. Exactly. If you are out there mining, there is not an infant amount to mine, and infinite amount to mine, and it is very complex. I dont see the average investor knowing how to invest in something that is very volatile today. Definitely very volatile and it is in its infancy. And it is very complex. By the same token, if you ask the average american how the Federal Reserve increases the money supply, truly 95 of them will have no idea. I thought youre going to say that they would respond bitcoin. The u. S. Government has taken a view on bitcoin, right . Yes, they have. Even bernanke has said there may be a future in bitcoin. Let me just say for the audience, bitcoin is almost like kleenex. There are hundreds of currencies out there. Bitcoin happens to be the best promoted. But when i go to the store to buy kleenex, i usually buy kleenex. There are a lot of other brands, and they do not work as well. There are a number of companies that do it. Coin terra does it. Butterfly labs makes these machines. There are not many out there who do it. The interesting thing is, you used to be able to mine bitcoin at the beginning of the bitcoin era with just your laptop or just your videogame console. Because the computations were not quite as complex. Not as many people were trying to get into bitcoin. But now that so many more people are and people have poured millions of dollars into this equipment to do it, they had to make the computational problems become more and more complex, part of the genius of the code. And you have to get specialized equipment in order to do it. There are only 21 million bitcoin that will ever be mine, and that is between now and the year 2140. There are 9 million and it is hard to get them. It becomes a race. I dont believe you. I do know that some of these machines used in order to do these calculations, they are installed in iceland. That is a great story by the New York Times about two weeks ago. There is this guy, i think from england somewhere, and he has bought millions of dollars worth of equipment for bitcoin. It is not so secret anymore. It is not at all secret. He will take your money if you want. It was cool. He was looking for a place to put his machine, and some of the biggest expense was the energy bill for cooling these chips. He said, listen, i will put it in iceland. They put a hole in the floor and they have like iceberg cooling that comes up through the floor. Iceberg fans. Exactly. These Mining Operations are not really secret, but some of them are closed and you can really get into them. There is a company, 21 east six. They are raising an arsenal of bitcoin miners to try to get the bitcoin for themselves. That is one of the things that concerns people in the community. It is supposed to be a decentralized currency, a democratic currency for the people and by the people. But if only the biggest millionaires can get it and poured it, that is a problem. And there is no regulation. It is purely marketdriven. The whole network regulates it. There is no one central regulator, but all of the miners can control that regulation. Im watching your hand movements and i just have to say, you do the shopping. Thank you very much. Matt miller from Bloomberg News. Next, more with kay koplovitz. Find out how and easy to use 3d printer can make art. My next guests are attempting to make 3d printing tape knowledge he universally acceptable. They along with two friends have raised over 250,000 on kickstarter in order to fund their project. Also with me, kay koplovitz. We were talking about 3d printing and you were speaking and looking at what the gentleman had brought. I want you to start off by just describing what you are holding in your hand and how you made it. This is a 3d printed hunter head. Our printer extruded plastic. You can see there is a hexagon shaped over here. It extruded it out and we created the object. This is approximately two dollars of plastic i wait. You buy a pla school and put it into the printer and it prints. How did you get into this . I have been tinkering with stuff since a young age. I read that you took apart everything that you could. Yeah, and if i couldnt put it back together my mom would have to buy a new appliance, unfortunately. We got into this when i found out that my school had a powder based printer that was really expensive. I said, why dont we make one of these and assemble it. It will be a lot cheaper to print him one of these plastic printers than a powderbased printer. We submitted a grant and we got it and we built one. Since then, we realized there was potential for this. In educational institutions. We pursued the idea to make affordable 3d printing. What do you think about this . Im a big proponent of 3d printing in a lot of different areas, not only for home use, which i think is what you are looking for, something very affordable in the home. Just like your paper printer in the home. It will be affordable like that. Im also a big proponent of 3d printing of human organs, which is coming to the marketplace. We already use it for industrial. Parts on submarines, aircraft, and all kinds of big industrials. Now it has moved to the consumer market. It has been on the market for a long time. One of our companies that spring boarded is geo magic. It was one of the Early Companies in 3d printing. I have been following 3d printing for quite some time. I think the reason it is bursting onto the market right now is because it is becoming a consumer product. You are getting the price point down. That was one of the main goals of the kick starter. In putting this all together, there is obviously competition. How did you get the price down so much . Basically, we tried to simplify the printer. We took away all of the non necessary parts. We put together only what a 3d printer should have and that is it. It is just the basic super component, and that is all. There is also an artistic element in this. I noticed that sculpture is a big part of what you do. Yes, it originally started with sculpture. We wanted to make it from casting, from bronze pieces. If you are a mechanical designer and you are trying to make prototypes, anybody can use it. Have you used it to make any of the appliances you took apart . We actually designed a printer using another printer. These things can replicate each other. You can print the parts for new 3d printers. That is what we did when we designed this printer. What kinds of things would you like to make with this . For me personally, this summer, i was working on an invention in my school and i have to make a plastic prototype. I cannot disclose that information, but i made the prototype on this printer and i got to use it and test it out and keep working on it and proving it and continue making it. And improving the design. What about raising the money on kick starter and what is next for the company . We launched on kick starter and had 2000 subscribers before we launched. We had a fan base waiting. I was just looking at the numbers and saying, no way this is happening. We sold 100 kits in two days. We raised about 100,000 in two days. We had to see where it went and we surpassed our goal of 195,000. We realize that it had exploded, so we added more kits. I look forward to all of this. Thank you very much. And my thanks, of course, to kay koplovitz. Thanks for taking stock