Transcripts For BLOOMBERG Street Smart 20131227

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all the odds, this market rally. week after week, we have dealt with so many issues. >> so many headlines, and yet we have persevered and pulled through. can we do it again in 2014? >> that is the question. there is a chart you need to see right now that will tell you what is happening. the s&p is not quite there. we are down less than 10% of the point. way, 5.5% growth. look at the 10-year yield, it is up three percent, a 30 month high. finally, the japanese yen, another high, the highest since two thousand eight because japanese inflation is at its highest since 2008, 1.2%. >> let's move on to the big three. top stock we the have to be watching today. street it was on, it is down after being downgraded. stocks are up, however. making anof jets is accusation -- acquisition of beechcraft. finally, a glitch at delta trip fares for six dollars and $.20 to hawaii. delta is now honoring those fares. stock is up. >> historians are going to look back on 2013 is a pretty impressive year. new record highs in the major indices. the best performance on the dow since 1996. and the s&p 500's best year on record. we had a fed taper, a congressional showdown, a .overnment shutdown this year in equities would be tough to follow. let's get to our panel and see if we should really be celebrating. it is great to have all of you here. mr. siegal, what do you think gekko can we keep up this momentum into the new year? >> i think 2014 will be a good year, not as good as 2013. this was oneh why of the very best years. we had three worries on the market. to be a paper tiger. democrats and republicans came to an agreement. there was not going to be a debt ceiling fight in february. ran, -- iran, there were negative views hanging over the market. i don't think anyone should've been surprised by the big rally this year. >> you certainly were predicting it. what do you predict for next year? >> i think we are going to get 10 %-14 %. my data says when you are in this interest rate range, you can have 18 % a 19 %. >> john manley at wells fargo. do you agree? did a study.ll, we we looked at years when the s&p was up more than 20%. it has not had an effect. i think the single most important factor could be interest rates. >> they think they are going to keep them low due to unemployment. >> they are looking unemployment versus earnings. to raisea lot of room money. >> let's see if we can get a unanimous vote here. does the market continue to move up? echo a lot ofould the same points as far as why the markets did so well this year. there were a lot of close calls, obviously. we narrowly avoided quite a few disasters. ultimately, you remove a lot of the uncertainty, and investors have once again been able to focus on the underlying fundamentals, a stabilizing economy, corporate profits doing well, and improving housing market, less austerity here as well as abroad. >> the only caveat i would throw it all of you is the reality tryinge market is always to anticipate what is next. staytors are trying to ahead of what is happening if they get it right. the economic news has certainly been getting better. my only question, and jeremy, i will get back to you on this, 29% this year. have investors basically priced in the recovery we are all anticipating? >> you are right. you always say that the market climbs the wall of worry. of worries are gone, maybe we should look out. why i don't think we are there is the public -- it is beginning to go in from a trickle to a stream. we see some shift, but it could go a lot further before i say hey, everyone is bullish, now let's watch out fo. >> if the strategists are right and we'll have 5.5% earnings this year, upcoming year, that means for you to be right, we have got to get multiple expansions, people willing to pay more. why should they be willing to pay more? >> interest rates are still low and bonds in a place to be. where else are you going to go? 5% growth -- if you just get a pe ratio, youint will have your 10-12%, which is a great return. we don't need as much expansion of p.e. as we did in the last 2 years, but with 5 comment 6% growth, mild expansion would be normal. >> let's say i am a new customer at jpmorgan wealth management. i have money to invest. >> you want to be going into risk assets. i would echo a lot ofprofessor siegel's comments. over the course of the next year you will see the good returns in the equity markets, despite the fact that we're getting closer to fair value markets never stop once they hit a fair average. improving economic backdrop and confidence, markets moved higher. to adjust by the spiders, s&p 500, do i put in a couple of different sectors? >> globally the u.s. you should do well, but i would not be devised if you see that returns out of europe. and it isss austerity a story there about operational leverage. as far as the emerging market, i would be very selective. >> the good news we are hearing from all of you that for anyone at home, or anywhere that is watching this show and saying "did i miss it, is the opportunity over," what you all seem to be ca is that there is room to run. >> watch how people get scared at the first 5% correction. that is the real trick. watch how people get scared. i think people still remember 2008 very well. and it will come back. >> great to see you. thanks for coming on. we are taking a look back at some of our very favorite moments here on street smart. what a year it has been. we are going to hear from richard branson, bill clinton, and we are going to revisit the merger of the year between american airlines and tom gordon. and i am going to show you what i found in today's global outlook. >> all right, everyone, today we are taking a little walk down memory lane and looking back at the moments that were special, good, playful, all that kind of thing. start with to billionaire richard branson. not a bad assignment. he took me on a tour of his which anyone, anyone at all, could rent, as long as you have enough money. of your paradise. it is one of the british and four sir richard branson, founder and ceo of the virgin group, it is the place he calls home. from this location point, you can see the entire island. write down there, a flamingo pond. >> this was on the market for 3 in truepounds, but branson style, he managed to get it for just $150,000. he has since built it into a kind of playground for himself. years after building his utopia from the ground up, a single bolt of lightning hit. >> it was the most horrible, stomach churning feeling ever. the house caught fire with branson and his family inside. they watched from 200 yards away. were flames coming out of the roof above us. mother, daughter, nephews, nieces, all the closest people to you were in the house. they werere safe. >> everybody got out. >> everybody was fine. >> when he five months and $17 million later, the house was back in 20% egger. -- bigger. it feels like the most beautiful home in the whole wide world. >> clearly. a home you and 30 of your friends can rent for $60,000 a night. the island is all yours, and a staff of 100 is ready to keep you entertained with tennis, feeding endangered lemurs from field trip or on a down a zip line. that $60,000 a night works out to $2500 an hour, so rain or shine, you have to hit the water. >> branson, obviously an airline mogul among other things, but i have two for the price of one. last winter i flew to dallas to talk to the men at the center of an airline deal that ultimately became the years biggest merger. the two of them estimated that combining their companies would result in an additional $900 million in revenue. i asked them about that. one, you increase connections. the existingake fleets and optimize the aircraft. now we have a much bigger fleet that we can go and do even more optimization than we do individually. lastly, having put the numbers together, there are a lot of corporations that buy travel based on how you book them all over the globe. we will now look more corporate travelers than either of us could independently. >> how is it you can have six hubs? close any of them? >> all of the hubs are collectively strong, important, profitable hubs. this is about taking that and building off of it. one of the biggest events, of course, of the year is the clinton global initiative. we sat down with president himton himself and asked the question on everyone's mind. will we see another clinton in the white house? >> chelsea is still too young. [laughter] [applause] i -- look. of the last month trying to reorganize our foundation and make sure we had a good space for hillary to come in and do a project. this has been fun for me. i don't know what hillary is going to do, but whatever it is, i expect to support it. we should not just fixate on the next presidential election all the time. we need to take a little time off to work and think about what our country needs and what we can do together, think about what the parties can do together and how we can reach across the lines that divide is and make something good happen for america. up, a face only a mother could love. >> that's not true. >> only my mother would love that particular phase. -- face. >> this is "street smart." it is time for today's global outlook. we are focusing on the best of "street smart." we could not leave out brazil, home of the olympics and world cup. the entire country has been going into overdrive to make it all possible. i went there to see how operations were going. take a look at this. >> is rio ready? for thethe question world cup in 2014, followed by the 2016 olympics. games are not just about two weeks of tourism. they are about 10 years of infrastructure. >> it is a good excuse to get this kind of thing done. from transportation to sanitation, rio's basic infrastructure has not kept pace with brazil's recent growth spurt. >> we're very proud of all the things we're doing, but if you compare our infrastructure to new york or paris, we are way behind. has invested more than $30 billion on projects aimed at improving life. tos compound is designed house athletes during the games, but afterward will be turned into apartments. the city is upgrading its transportation system. used byis going to be the average new yorker. >> 100,000 people ride buses every day. by 2016, the city expects to move 20 times that number. >> when i look at these major events, again, i do not look at two weeks of events. i look at what it means for the city. >> dinardo grinder is the coo of the 2016 olympics. >> when you wake up the morning after, is the economy still going to reap the rewards? born dream would be to be in rio in 2020. it will be a new city. a new generation will come up after the games in a fantastic city to live in. iconic stadium, which will host both the world cup and -- sockpics, scientists construction delayed by four months. you say this is a developing economy and the olympic games will show the world that? >> the olympics will help showcase the new brazil. >> a local researcher studying the effects of the games is uncertain whether this new brazil as possible. >> there is no evidence to suggest that what the olympics are bringing in terms of infrastructure will have a long- term benefit to the city. >> i am not saying things are perfect, but everything is ready. we have a lot of work to do. i probably will not sleep until december of 2016. >> there is no business like show business. check out our best of hollywood with less mooned as, david nevins, and perhaps our favorite moment of the year, when adam traded photos with dan aykroyd. >> welcome back to the best of "street smart." some of our most interesting conversations this year took place with media moguls. i sat down with lessman does to discuss the shifting business television.oadcast one big issue is network shows online. -- too much has been written about it. it is not something that keeps us awake at night. what you said is essentially right. they are taking our content, selling it, charging people for it, making money on it, and we are not. and always we said was if you want us to continue reducing shows the cost -- reducing shows the cost a lot of money, we have to get paid for it. we view it as piracy. once again, it is something that -- area was a very small blip in the system. it is not something that really concerns us a great deal. barry miller said it is a pimple. that is how we look at it. >> did you ever look at or consider bidding for hulu? are a lot of bidders out there. ironically, we were the one network that did not join hulu in the first place. put ourit was better to own content on our own website, which we still do. what you get on hulu, you can on cbs.com, but it's a cbs product. bidders fork at the hulu, we are interested in who gets it. some of our content is on hulu plus, which is not the free hulu, but part of the subscription hulu. we are happy to do partnerships with them as long as we are getting paid, but as far as bidding for it, we are not interested. >> what is the future of broadcasting? >> 20 million people watch ncis every week. it is still the big tent. you know what the highest-rated comedy is on cable? big bang repeats. so, there is a lot of talk -- and by the way, there is a lot of good programming on cable. don't emmy rossum. we do own showtime -- don't get me wrong. we do own showtime. his word begins. people are watching all over the place, -- broadcast is where it begins. thele are watching all over place, online, on their phone, on their ipad, but broadcast tv is where it begins. to have agoing special episode on the entertainment business. i sat down with the producer of , showtimeevelopment president david nevins, and the , steveind modern family levitan. >> netflix is going to become very popular. we have house of cards and arrested development where you can binge watch, watch all the shows at once. i think other platforms are going to get excited about that. but it is all built on original programming. somebody has to sit at a desk, write a story, produce a show. things have to connect. i always say i am in the feelings business. unless i am producing a feeling, i don't think anything is being communicated. i am not saying anything so original. walt disney started with an animated character that became one of the largest content companies in the world that bob eiger is the chairman of. it starts that way. it has been happening for a while. of serializede television -- i was involved in shows as aose producer. "24" worked out that way. "friday night lights" worked out that way. binger" people wanted to on the dvds. >> does it help create buzz? >> it helps people catch up after season one. you see the snowball effect. shows come back on our network to grin season two and bigger again in season three because in seasone -- bigger two and bigger again in season three because people have caught up and are ready to watch in real-time. i have heard a phrase recently, "tantric television." that is the pleasure of watching one at a time. our shows work both ways. you can catch up and injured all at once or you can be part of that conversation. >> it should not matter if it is going to be watched this way or that way. at the end of the day, you have to be truthful to the characters, to the story, to the emotion of the peace. that should not matter. ,f you tell a compelling story people will want to watch it a multitude of ways. >> they say imitation is the sincerest form of flattery. no wonder wall street loves trading places. we sat down with a star, dan aykroyd. let's take a look. >> nothing you have ever experienced ken prepare you for the unbridled carnage you are about to witness. in this building, it is kill or be killed. take no prisoners. one minute you're up. the next minute, but am, the kids don't go to college. are you with me? weand here at street smart, have always been fans, in part, because my cohost looks a whole thelike louis winthrop third. you see the resemblance? so, the special treat, we have him here on set with us. and ceo.yd, actor such a pleasure to have you. >> how are you? like when thorpe, but you don't look like aykroyd. >> there is a very strong resemblance. here.great to have you this is a movie that is still on the street.ed i remember summer analyst at us the sachs showing orange juice seen. lost duringing was the terrible attack on 9/11, but it was a wonderful project to work on because we actually were in the pits with the real guys and they were teaching us how to call, how to sell, to buy and sell after we did it. guy on the corner. he had the numbers on. he saw that she had the trading jacket. he saw the trading jacket. i said who is that? they said one of the biggest aluminum traders in the world. they were a real guys making big money and losing big money. by the end of that scene, we really believed we were there. >> the similarity is unbelievable. looking, i will say. >> no. he is a good-looking guy. it was 30 years ago. he is a smart guy. i will say one thing. the guy has a businessman. he is a smart guy who understands a lot of different angles. you think he is just a funny guy, but to be funny, you have to be pretty smart in real life. >> he is a very smart guy. that is a great movie. coming up next, adam gave it his best shot, but he just could not break the gorelick last. the gorilla glass. also, adam went to hsm headquarters. >> giuliana rancic, by the way. talked to her about how you can get these products any time you want them. >> welcome back to the best of street smart. one of my favorite projects this year was a thing recalled how they do it. we went behind the scenes to reveal what it takes to make the products behind the profits. i started at the headquarters of corning glassware they make the glass for the iphone. it is almost indestructible. >> wrapped around your phone is an ultra thin, ultra strong piece of body armor. hard to believe this is glass. >> that is the hottest thing i have ever felt. , backe at the test labs in 2000 six, steve jobs asked for the impossible, to turn something fragile into something indestructible. >> at the same time, if someone happens to drop it, it is highly damage bowl. >> corning's answer? gorilla glass. it covers the screens of one point 5 billion devices from 30 brands including samsung, of course, apple. >> whether it is on your phone, your computer or your television set, about 50% of the time you are looking at our glass because of that invention. >> fusion makes it all possible. two streams of molten glass flow down a form and unite to create a single pure sheet. the interior is untouched and nearly flawless. cracking andists bends without breaking. >> i am pushing as hard as i can and i cannot break it. >> hard-core science from the company that made edison lightbulbs in the 1880's and cookware in the 1950's. chances are, she'll buy it. >> the next breakthrough for , curved,rass -- glass bendable glass. >> we have begun to work with a like of other industries automotive, architectural and withances to combine glass other materials and give it something unique. >> college breaking the mold. -- call it breaking the mold. 135 patents. >> in all of these other businesses, we are in different cycles but we continued to put ourselves out of business by inventing new things. if you want to be around by years, you had better do it by renewing yourself. >> and keeping your eye on the ball. >> that was my best shot. your smart phone together to getting you to use it differently, the home shopping network has expanded its mobile presence and doubled its profits. we went down to saint petersburg, to get an inside look at its 24-hour operation that combines showmanship and salesmanship. before amazon and before ebay, hsm showed you how to shop from home. now they are revolutionizing business once again, making your hsm shopping experience mobile. >> i felt that the time was right to take this convergence of media, technology and shopping and create a whole new experience. >> ceo mindy grossman beat ralph -- built ralph lauren's jeans theness and in 2006 joined then struggling home shopping network to become the eighth ceo in 10 years. she has doubled the business in two years. >> it makes them ultimately inspired to buy. >> it is why hsn is trying to create what they call the 360 degree shopping experience. >> we are really recognizing that the world of e-commerce is changing. people want to be in control. they want to be able to watch, shop, play, do what they want when they want to. >> pockets. ,> if you miss travel channel , orntha brown's new luggage jay-z's stylist june ambrose -- >> metallica is on fire right now. >> i am not wearing my metallica shoes today. >> don't say that twice. >> just download one of the videos from your computer or iphone and rest by if you like it. it is an immersive experience. new shopping advance. >> one of her latest projects is --ming up with products teaming up with disney on products inspired by the movie oz. >> we had people go over there while they were filming the movie and bring back all of that inspiration. more global brands signing on with hsn. it is a unique collaboration, affiliation we are trying to do. great brands who can both achieve a common goal. >> it is a goal they work to achieve 24 hours a day with military like precision. >> this is where the products come in from our sample warehouse as they prepare for air. so, is hsn offering value? >> value is a consumer's perception of the worth of that product for them. againstre going up amazon. >> we all know we live in an amazon world, but we feel we are creating a very different experience than amazon. >> it is a collision of pop culture and commerce made possible by technology and innovation. >> it is a lofty goal to reinvent the future of shopping. >> she is onto something different. >> she said there was an awe moment where she woke up and said, you know, i am watching the food channel and they are selling me a whole lifestyle, not just products. that is when she made the switch. >> it is like she is a television executive while also being a retail executive. very interesting combination. more best of street smart after the break. >> we have the top 10 stocks you need to know about today. the close is next on street smart. plus, controversy with spike lee. mostve some of the year's heated moments. we bring it all to you right after this. >> if you missed everything that happened during today's session, don't worry. for your top 10. delta airlines down three percent. the airline accidentally sold very cheap tickets yesterday because of a computer glitch. delta has said it will honor the tickets sold at incorrect prices, including round trip to hawaii for $6.90. >> i admire that. that is very noble. made an additional order of four airplanes. earlier this month, boeing ordered 21 planes. the stock is trading down today. pharmaceuticals is number eight. .hares are surging they are paying $12.5 million in cash. seven, the utility company has been upgraded to outperform the market. a potential bid is integral to positive shares. renewed a request for a sales ban on older samsung products. found last year it infringed upon apple's patents. morer five, herbalife down than half a percent. the price target has been raised from $81 to $91. are up morerbalife than 130% this year. what an incredible gain for a product that -- i don't know one single person that uses the stuff. >> but, but, but. take that back because -- >> do you know anyone who uses it? >> no, but i saw someone the other day going through security and he had a bag full of it. >> does anyone know someone who uses herbalife? >> to be fair, it is bigger on the west coast than the east coast. >> none of the five of us -- and we all know a lot of people, but not one person uses herbalife. moving on. entertainment giant is in talks with the hong kong government to build a new hotel. kongxisting hotels in hong disneyland. >> print is up eight percent. an analyst at wells fargo boost -- sprint is up eight percent. in analyst at wells fargo boosted her evaluation rate. >> home brothers up nearly one percent. sharesve sold 15,000 according to regulatory filing. shares of a homebuilder are up 13% on the year. >> do you know people that have bought toll brothers? >> i do. but not with herbalife. >> i find it amazing that it is up 130% and i've never heard of anybody using it. >> gm motors has fallen one percent. has a recallartner problem, one of the biggest on the market. it is endingp looks like down just slightly there. 1841. what a year it has been for this market. the dow jones industrial average, we will see how they settle, ending the day almost flat. additional context with alix steel. we will see how this settles out. >> the real winners today were energy stocks. hitting $100 al barrel for the first time in months. the stock market helped by the santa claus rally. making adjustments toward the end of the year. a really sexy movement in the 10 year yield. >> the 10 year described as sexy. [laughter] me and her looked at was excited. >> i took notes. >> it was pretty significant. the highest in more than two years. widest since 2006, underscoring how good the u.s. economy is doing. >> maybe the spread. >> the stories we are tracking ahead of tomorrow. >> the holidays or the best ever. or than one million users became users of their prime programs in the first week of december. almost 37 million items on cyber monday alone. they are selling 1000 xbox one and ps for -- ps4 consoles per minute. make bracelets out of rubber bands. >> and enough hot wheels to stretch around daytona. when amazon releases these little fun facts, they don't tell you exactly what the order flow was overall for the holiday season. they give you all of these little snapshots. what analysts have extrapolated, they have tens of millions of prime customers. the number is probably in the low 20 million range. amazon has to pay for their shipping, so it is a cost for them. they spend a lot more on amazon than the average customer. at 37 million items sold, up 39% from last year. the margins, the net profit margins are anywhere from .7 to 1.5%. you would think that somehow with that kind of volume, there would be enough higher margin products. another stock we are watching is twitter. finally been taken down a notch. ,e are having a downgrade downgrading the stock which is up more than 70% in the month of december alone. they say shares have gone too far, too fast. we believe nothing has changed to justify the rise in valuations. twitter is guided over $41 billion as of yesterday's close, making it larger than cvs, delta airlines, and target. feeling an analyst was watching our show yesterday. is this not what we were talking about? >> everybody has been talking about it. >> and everybody watching this show. >> it could have been this morning when i did the morning show. a long day. a lot of people want to have a social networking company in their portfolio. facebook, it is new and it is fresh. of therings in the power retail investor, to your point. but how fickle are they act oh will they move in and out of a stock based on recommendations? managers want to have that. you ask about this this morning. what other options are there? i was listening on the radio like i do every morning and there are companies that you don't necessarily think of that are still a play on social networks. >> is the nsa phone surveillance program unconstitutional? courtons by u.s. federal mean that the supreme court may have to decide today. that thek judge ruled program is lawful, a ruling that comes 10 days after a federal judge in washington said it is probably unconstitutional. this blunt tool only works because it collects everything. he might've been worried the nsa will kill him if he ruled differently. judgeshave two different saying two different things and the supreme court will eventually have to rule. >> i checked with constitutional scholars. the supreme court doesn't take on every case. it can sit there for a long time. >> those opposing on each side will go to appeal and if each appellate court upholds the original decision, then it can be dissented -- presented to the supreme court. the first decision that was against the nsa, the judge gave the nsa time to stop doing what it is doing. way, it is still -- >> time for tread stone, right? completely un-american and ridiculous. knowsjudge in the country that. >> about to embark on a new year's tv advertising blitz. they are in a race to get brand recognition before an fda ruling in january that can curb their use. overicians are worked up regulation. additional cigarettes have not been able to advertise on tv since 1971. in the first nine months of 2013. $1.1 million. >> this is very american. finding a new way to do drugs is an incredibly american thing. >> only you are doing those drugs. nicotineare inserting in a more efficient capacity. >> this will be a lot of money spent on those ads until there is some kind of ruling. $30 million for next year. this is before they have to curb the tv ads. watch out. >> it would be great if there is consistency. if it doesn't use secondhand smoke and doesn't hurt anyone else, you should be able to use it. why can't people? can the nicotine be in the air? using there just secondhand smoke argument to push through the ruling that they wanted. it was simply rhetoric. >> lobbying hard against it. >> the only big company that is pushing this. >> they have been rolling out very slowly. >> very reluctantly. >> you need to get on the bandwagon. if you're going to sell a product, having it be physically addictive makes your job so much easier. if you helps marketing think you're going to die if you can't have it, right? a merger in the jet industry, extra on his buying beechcraft for $1.4 billion. the deal by the way is coming after beechcraft emerged from bankruptcy. is hopingn merger that their turboprop planes -- they have been making those since the 70s. 60% of the 12r billion in sales. how am laughing about excited he was about jenny mccarthy and how excited you are about this plane. >> i will start with a quote and i will tell you the story. i got any guy i wanted because my dad would fly them in the air. tos was written in a letter martin scorsese and leonardo dicaprio. it is a complaint letter. she is saying that because of her father being involved in the , she no longer has the range rover. you people are dangerous. even as the country is reeling from another round of wall street scandals. they made the movie, basically. of glorified what happened. but isn't she doing that as well by talking about what kind of drugs she was taking? sanity that was a had no base in reality. and she said the movie essentially did not show them enough. >> i am angry martin scorsese made the movie because it is horrible and i wasted almost three hours on it. the ending fizzles out and it just dies. it is so boring at the end. jonah hill is quite funny. controversy.rt we will hear from spike. >> much to your chagrin. >> and who can guess this lemon founder. it is about the size, how much pressure is there. >> see you back here. ♪ >> welcome back to the best of street smart. we are no jerry springer but our show has seen some controversy this year. we spoke with spike lee over the summer and it was a little awkward. take a look. >> do the right thing is what many are saying that spike lee is. they call him the famed director to end his kick start a campaign. we are going to go there. >> why do we open like that? a we will let you answer in second. we are all about controversy here. >> how would you open like that? kick starter uses crowd sourcing. you upload a video and it is mostly for up-and-coming novices. what is an oscar-nominated director like spike lee doing on this set? without we would ask him in person. >> i would like to refute the opening. you've got a lot of money. why would you go to kick starter -- >> first of all, you don't know how much money i have. you have never seen me before in your life. for you to assume what my financial state is is wrong. i am an independent filmmaker so plm appealing to my base to edge as little as five dollars to help me get my new film made. >> $1.25 million. >> we are going to make it. much to your chagrin. we will make it, people. >> it was a fair question that he needed to answer because kick starter is not designed for people like spike lee. >> it could be used to fund anything. >> he sort of eventually answered the question but it took a while to get there. it was a rather awkward moment. controversy that really got the most attention this year was the we lemon founer mon's der, his response was unbelievable. >> women will wear seatbelts that don't work or they will wear a purse that doesn't work or frankly, some woman's bodies don't work for it. >> they don't work for the tansey e >> -- for the pants? so. don't think it is really about the rubbing through the thighs, how much pressure is there. >> are you sitting on cement, g round -- >> not every woman can wear a lululemon pant? >> they can, but it is how you use it. >> are you looking for a new ceo? want to find someone fast, good people aren't available. >> they will take time. don't have to move fast. we have incredible management and great people in place. there is no reason why we have to have anyone less than the best. from the retail space, from the tech space? retailing. someone globally experienced is what were looking for. >> someone that is the right cultural fit. it has a great culture and i believe strongly in developing leaders. it is finding that fit, that is critical. how do you feel with this competition right now? under armour is strategizing really hard to take more share in terms of women's athletic apparel. ardor that is yoga. art of that is yoga. part of that is under armour or nike. >> just in our previous conversation, we may not be so much about athletic of pharaoh --apparel as a leadership company. that is the differentiation and how we treat people. you founded the company. it would you consider going back to the ceo spot? beenthink what we have missing from a management point of view and even on the board of directors is the creative br and product piece. quite frankly, we are maybe two wealthy now. his controversial answer was why they were having the patch problem. -- pant problem. he said some women's bodies don't work for it. the moral of the story is you do not tell a woman she doesn't look good in those pants or that it is her fault that your product isn't working. it wound up costing him his job. this is part of the controversy that followed and he eventually stepped down. >> and it cost stockholders 10 bucks in stock value. definitely it took on a life of its own and they now have a new ceo. >> we have the inside scoop on britney's new sin city show that is coming up. ♪ >> the one question every investor wants to and needs to answer, are we in a stock bubble? he will try to answer that question right now. there it is. the 25 year chart of the s&p 500. you can understand why people are wondering if we are in a bubble. first, we will look at interest rates. our higher interest rates a problem? we overlaid the yielded you can see the shaded areas where we have had both rising rates and rising stocks. growth, not suggest necessarily bad for stocks. it doesn't support the notion of bubble. howle are talking about many bowls there are out there. i defy any viewer to look at that chart and find any correlation. it is a relevant -- irrelevant noise. what about the notion of higher valuation? the p/e ratio, about 15.8 times. that is the estimate among the strategists. we are in the middle range and it doesn't look like a bubble to me. when we come back, we had to vegas. britney has a new show at caesars and we have the head of caesars entertainment to talk about the new show. ♪ time to bring you the scene, business behind media and pop culture. britney spears entered the building. here is what fans can expect. hits, including bottle service. they have worked with caesars in the past with elton john and celine dion. is it going to work for britney here and her younger fan base? it is almost showtime. how did this come about? how did you bring britney spears to vegas? we talked about how it would be and getting britney on board. as soon as she heard about it, she was ready to do it. what goes into the actual production? are seven set changes, a variety of elements. water, fire, technicolor. folks workingf for nine months now. >> why britney ? changing demo in vegas from an older generation to a younger one. it is written a lot by the nightclubs but folks, the younger customers are coming to vegas more and more. the average age was 51 and it is now 46. we are capturing that trend and the resident business has always been a good one for us. it is happening at planet hollywood. how does her brand aligned with planet hollywood? about fame, the celebrity element of it. >> once you get all these people there, it is a different crowd and a younger crowd. how do you keep them there and had eu keep them spending? to keep them here. it is a nightclub capital of the world. coming here to be here for the parties and the djs. consider doing a nightclub tonight, they will do a nightclub on one night and britney on another. >> do you let people hang out and party? >> a pre-party in the theater, the show starts at 9:00. they will relax and order bottles. the show ended about 10:30 p.m. or 10:45 p.m. >> order ticket sales looking like? >> superb. >> you run entertainment at flagss, and he was at six -- >> entertainment is a big part of it. >> britney is one example that can be done. >> the idea for this theater is to have a rotation of pop residents. she is the first artist to have a residency in vegas. we look for artists that fit that different demo. they open up billboard magazine, find the top 40 folks charting that can do residency with us. >> justin bieber? >> that is a little young. >> he will retire, why not go to vegas? >> it sounds like we could get you to the show. itself is a fascinating place. i have a documentary upcoming on vegas and the gaming industry as a whole. are going to vegas not necessarily just a gamble anymore. they can do that anywhere. they can go there because it is a destination. how critical is entertainment? >> it is crucial. we have some of the biggest and best shows of the world. this is an international destination. from celine to shania to britney , we have folks you can see other places. >> we wish you all the luck. >> return to sender, online returns are going at a faster rate, what is fueling the return frenzy coming up on street smart. and we have a countdown. ready for this? find out why the show will go on on today's "weird wall street." ♪ andiscounts have run far wide this holiday season. old and the line on prices is not without risk. our very own julie hyman joins us now. resistrs have tried to this pressure, right? have notare some that discounted or discounted as much. if you look at the ones we are was oneabout, lululemon of them and it suffered. not promotional in the words of retail. things were marched down, but not very much. the other one is buckle, they have their own merchandise. one analyst used a pull strategy. it put stuff out there to see what works and at what price point. anthropology is owned by urban outfitters. is also not really a lot of discounts there. ugg boots was another name that came up. the cold weather created demand for this merchandise. there are some out there. show.were talking on the maybe one sign for 75% off. the stuff you want to buy is not 70% off. specialty retailers are where we see the broad discounting. for some of these retailers, it has really worked. expressst margins -- urban outfitters is tough to break out because it is the biggest part of the company. the ones there that are impressive. by 23% in the last quarter and others have been mixed. >> good info. the christmas shopping season winds down, the return season is kicking in. it looks like there will be a lot of returns this year. they are set to rise about 30%. >> one in three americans will return goods this year. i really feel like this was the year that the e-retailers itfted up on the -- stepped up on the shipping policy. when you have the policy of free returns, there is no penalty for returning goods, you're more likely to check out. the other piece is the discount. analysts are telling us that the entry point for consumers is 50% off. it,not sure you will like but that price you are to take the risk. >> i do a lot of shopping online because stores around this time of year is not a ton of fun. it does mean that a lot of stuff goes back. >> does it bum you out? >> yes, but it is easier than going to the store. in many cases, it is free shipping and free returns. >> it depends what kind of retailer you are. other items, those are not being returned as much. the numbers do show that women return more than men. >> i could comment about that but i am not going to. >> women return 36% of goods and men will return 31%. gift that rarely gets returned, alcohol. >> so true. >> wine is even becoming robotified. >> robotified? >> is that a word? vineyard, the heart of napa to get the first look. >> people have been making wine for centuries. this is the future of winemaking? but never like this. has one of the first to incorporate automation. this new technology replaces hand sorting. the job is to identify the best fruit. >> it compares against those grapes and if it is not a match, it will take those out. this makes it all possible. takes pictures at 10,000 frames a second and analyzes them instantly. >> the picture was taken and excepted. this is dumped into the bins. there will be a puff of air that blasts out what doesn't match. this is what was rejected. i definitely don't want that going into my tank. the old method, there were hand sorting. there are different things that affect the condition of the grapes. this allows me to have an open season. >> wire the critics skeptical? because it goes against tradition? >> i think they like the romance of having people sorting. >> this is the old way of doing it? >> old-school. >> how many bottles are here? >> probably three or four bottles. >> american do more than three or four bottles. >> what kind of investment was the optics order? 0000., but we will see that return in a couple of years. >> how do you expect the optical sorter to impact business? >> we think that it will pay off. >> they expect this to be their best vintage yet. >> if more wineries start to adopt it, will we see better wine? >> every vintage is better if it goes to the optical sorter. online while naked. shocking new data on online shoppers next on "street smart." ♪ for weird wall street where bizarre is just business as usual. i like to shop online, right? >> and you said you will be returning more. >> a lot of people like to shop online for goods with laptops and smartphones. but apparently, they do so without any close. there is a chance that someone ordered holiday gift while naked. see the video. roll the video, please. >> 11% of shoppers shop online naked. >> with socks on? >> paypal commissioned this poll to learn about the browsing habits. 15% like to drink alcohol. >> i am surprised that is not higher. i think 15% of people drink alcohol while they do everything. >> what was my weird wall street? >> something about a dog? >> yes, there is a device called no more woof. it translates the thoughts of man's best friend. , headset that can monitor isolate, and translates a dog's into english words. the invention of the swedish research lab has launched an i ndie-gogo site. >> i wonder if it works. >> i'm sure it doesn't. [laughter] but i tell you what. even though i am 100% sure it doesn't work, i am still going to buy one. >> and you will put it on your dog. new year's eve is fast approaching with times square ball dropping. the annual event will go on after a heated battle. the judge has opposed a motion , thecapturing a possum judge says it will be dropped. >> they drop it nicely. >> you've got to love the south. have a terrific weekend, everyone. ♪ the hour,6 past bloomberg television is on the markets. let's get caught up on where the markets ended the session. today,a little bit lower the s&p down ever so slightly after finishing an all-time record high. we also saw the 10-year note getting the highest level since september of 2011. amazon shares pull back after hitting an all-time high this morning. the retail giant had a record- setting holiday season. the johnson look at how packages went from the phoenix fulfillment center to your door. heinz ketchup, beats headphones, the bagel slicer. every product sold by amazon. the loading dock of a massive warehouse. , and there iskers automation everywhere. done by people, not robots. the first empty space with no rhyme or reason. it makes for unusual bedfellows. as soon as something is sold. jokes riddled with brainteasers, it is picked from the shelf and sent packing. they select just the right box, even cutting off just enough tape to seal the box. then it is stamped and labeled. slidesicated series of routing the box to the right truck where another set of packed the truck with an impossible tetris like task thomas gleason in his many as possible. an incredible architecture, something they have never seen before. >> for a look behind the record- setting holiday season, amazon is released a little bit of data. >> it was the second thomas o see a lot of orders flow. based on that, you can see revenue coming in ahead of the $26 billion that analysts are estimating. they pay $79 for premium service. >> they have admitted that they have tens of millions. >> analysts want this information. >> those people tend to spend more and it also costs amazon more. how much more revenue they get. >> research firms have released numbers that are not so positive. to leave itave there. thank you, julie. i am olivia sterns. ♪ >> this is taking stock. i'm pimm fox. tonight, we are going to clean up, literally. business.p is big first, you need a franchise such as "the walking dead." telltale games and the approach to making money. startup offers -- housekeeping magic. and a clean tax shelter right here in the usa. first, headlines

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