About a. M. , existing home sales. Earnings after the bell we get nike and carnival and 50 days until sochi, olympics. Do they have snow . Theyre going to have snow. It is a little dicey snow . Maybe they will get snowblowers in there. And seriously, mr. Putin speaking in russia. We have that on London Television this morning. Look for that at bloomberg. Com. We scour the newspapers, but before that, lets go to the data check because this is a big story. Real movement off of what we saw yesterday afternoon at 2 00 p. M. , futures negative 2 after a huge surge yesterday. Here is the story yield did not move. Everything else moves, but it was really priced out of the bond market nicely, eurodollar weaker, yen dollar stronger. Screen. To our next vix moving to a complacent 13. 80. There is the dow well above 16,000, gold craters and the yen weaker come out that important 104 level. Theen and others looking at 104 level for a weaker yen. Alix steel, there is gold plunging. You willg below 1200, have a lot of shortcoming in the market, betting against any price swelling. Does this price effect a gold mining, gold investment, getting gold out of the ground . It will as long as it stays below its actual support level. 6, 12 month is when you will see minors taking stock. It is not like the taper came out of the blue giftsaccept guess of gold for christmas . I do. Hearings would be green eyes. She takes gold for the holiday season. We started the front page here is scarlet fu. It is all about the fed. The fed begins tapering and the world is not a miracle, ben bernanke leading to a slowly scale back with the 85 billion monthly Bond Buying Program to 75 billion less. The Economic Forecast were more dovish. Well cut the time and employment falls below 6. 5 , that is if inflation stays below that 2 goal that the fed has outlined. The press conferences get better, and i thought one of the best question yesterday was from torres, andws chris he said are you out of a toolkit, are you out of tools, is that what this really is about . Chairman bernanke he a very thoughtful answer. Well, he isd a lameduck chairman. You have to wonder how this set up janet yellen for 2014. How much did he help her by starting the process while he was on his way out . Moberlymorning, mario Mario Barbara lee and peter mario garbelli and peter orszag joining us later. Fighter jets contract to sweden from boeing. Brazils president had complained that the nsa had some bite on her government. We lost in the french lots, has been be fair, saab desperate for International Business they have been working hard on that. They also offer higher levels of Technology Transfer meaning that they might have had a better business. If you are the worlds number one and number two, i mean, the contract is yours to lose and boeing is going to get it. A convention in the sac larry somberng Larry Steinberg guilty of Insider Trading. Italy took them a day to come up with a verdict. A lot of drama around here. Some people call it acting. Really . This is really incredible, new york federal prosecutors bringing 87 Insider Trading cases over six years, and now 77 convictions. That is incredible. Can he appeal . Would not know yet. We have not got the night yet. The role news is this puts pressure on matthew martone, whose trial begins in january, since its steinberg trial did not go over well. And Stephen Cohen has not been charged with anything, but his firm has paid up. Those are frontpage stories. This thursday morning as we raced to the end of the week. I will be on vacation, our guest andhis our, chairman managing partner of sonnenschein partners. Ofhael wolff is founder active, former yahoo board member. Yahoo mayer is a ceo at as well. We had a fed taper yesterday, and gentlemen, lets go to this. I would say a less uncertainty. Marshall, is this a boost for 2014 . I think that is right, tom. I think maybe theres somebody something for everybody. We expected a little bit of taper, we got a little bit of taper. We expected a little bit of clarity because bernanke is a clear speaker, he does not speak in fed speak. Than i would have expected on this zero policy for a while longer, but he was clear and he had a something for everybody. Michael, this has to be good news away from economics. This has to be great news so bad but you can move on. Was interesting most of our is the most of all is the consumer there is easing in the markets did not collapse. Provides a great deal of confidence to consumers, especially also reported as we go to the final days of the christmas season. Policy, what fed is the humility on the west coast going into next year . World has had a challenging year to say the boost. A Major Economic the biggest hit in the gut heaven wouldve happened with techsa, but from a perspective, they are looking at the something good, there should be continued interest in the sector. The 10 yeart see yield move at all, but as the fed continues to taper and we see that slowly move, what does that wind up doing for the m a Business Climate . Does that end up spurring more deals to take advantage . Sort of. I do not negatively moving of the yields that facilitates m a. It is the gaining of confidence. Below money environment we have lived with now for a half decade since the financial crisis has propped up equities. That is not prop up m a. M a is a longerterm marketplace. If yields are moving up, because people believe that money has value again and that we are going into a mode of growth again, that is facilitating of m a. Wolff,eby you, michael things are going to start to return to normal. We are not there yet, but we have taken up first important step. In the valley, what is happening is these streets are paved with gold matter what. They continue to see more and more consumer interest, but i think the fact that the Financial System looks like things as he said the world did not end, give them a lot more context. Ofmarshall, you have a lot experience. What year does this remind you of . 1994 . Is there a moment, as we end to 2013 that this feels like . 1994 was not bad, we were coming out of the 1992 recession in the gulf oil crisis. There was a sense of relief eared we are five years past the real crisis. In some ways, bernanke has been right all the long in a stating the simple truth that this is not like anything. This is all new, and lets face it the will did not and a bang, but we still had jerryrigged economy with way too much debt, and while we see no sign of inflation, paul krugman has been right on that, i think that there is always going to be some vulnerability that when there is a release of animal spirits, there will be a lot of cash. There is a protection reduction for 2014 during we will continue this conversation with marshall sonnenschein Marshall Sonenshine and michael wolf. And that is our twitter question of the day whats your biggest worry for 2014 . I am worried about goal, but i am also worried about the employment picture. I am worried about what is going to happen on kindle. Scandal. Me too. Astrazeneca targeting diabetes. Astrazeneca will pay as much as 4. 3 billion to take so control. Myers will focus on building Cancer Treatment instead. Onus is that citigroup will be little changed this year. Bonuses at citigroup will be little changed this year. This move comes at citigroup ceo tries to reduce costs to curb shareholder pressure. And a Sacred Service investigating possible theft to credit card and debit eta at target. It is believed the reseller was had by hackers over the black friday weekend. The breach may have affected as many as 40,000 card devices according to the secret service. That is todays company news. That is a lot. I stopped at target for the first time in my life on black friday, spent 20 and i was on my phone this morning trying to find out if i got hacked. It is a scary. When is the last time you buy something at target . I am watching scandal this weekend . Do not read that Wikipedia Page because it will give you spoilers. Leastt leas at no more, spoiler alert. Here is what is coming up on 14. 5 billion, well iscal full footwear sales. This is bloomberg surveillance, on Bloomberg Television, streaming on your tablet, your phone, and bloomberg. Com. One of the most interesting guys in academics dean henry thisbe on Market Makers morning, peter henry from jamaica, firstrate education, he is the force behind the nyu stern school. On Market Makers this morning live at the clock a. M. , that will be with the Stephanie Ruhle at 10 00 a. M. That will be with Stephanie Ruhle and me, tom keene. I am here now with alix steel and scarlet fu. Nike launching six new limited edition holidaythemed sneakers in the last 10 days of december. That is a lot of sneakers. That is in addition to the three signature sneakers by nba stars lebron james, kevin durant, and kobe bryant. Kylemberg businessweek joins us. It sounds like too much. Is it . Headseakerhea sneaker will buy them. The secondary market on this is huge. It is a lot. They might be hitting some diminishing returns. Are they responding to demand or creating demand when they create these limited editions . It is a little bit of both pure that of a brilliant and risky part of the strategy. There is not a lot of competition there is a lot of competition of ideas, reebok adidas, reebok. Is a growing . It is growing, but it is predicated on the fact that theyre commencing consumers of supply is short, but that is not that short if theyre rolling out one or two every week. For years and years, the death and nike, a continues to be a moon shot they made 18 in the last 10 years heard what is different now as they go into 2014 . What do they cost . About 140. So they are acceptable they are accessible for a large body. That is the nike formula. That is the formula, but it is not that scarce when they have got 11, just on basketball, 11 shoes in the next 30 days. I have 11 pairs, i could go pair. He next 12th we are about technology and shoes. As much as nike does these custom shoes, i think they will sell out. The kobe bryant model, for example, it has a snakeskin, alligator skin look. I think everybody is going to want one of these. If you collect sneakers, you are going to want one of these shoes. Is in part of the technology you have the new, whatever, air things in the bottom of your feet . Isnt that part of it . I do not think it is as Much Technology i think it is people collect them. There is a cool factor of people seeing them on your feet. When i was growing up, everybody wanted a pair of air jordans or the reebok pump. There was one it sneaker. There is not any one it sneaker. We are talking about all these different pairs and it does not matter if one sells 100,000 pairs, right . It is almost like the opposite of that. Keep consumers to lust after what is of skier in the very rare, odd looking shoe, which is different from the 1980s in 1990s. Obviously 50 of revenue comes from sneakers, what is next . Basketball shoes, running his big, they are doing great in europe. Whereis the big place they are missing right now. What did you learn about this, financial . Theyre making tons of money, they are constantly being the gloom expectations that ive known for, what, 20 years or more. What does the management say the interesting sneakers will do to continue to drive that equity performance . It is furnishing the brand, and the thing about it is they are doing it because they can, and the value in the company is in the supply chain. They can run off 10,000 pairs of shoes. Why dont the other sneaker people do that . I do not know where reebok is are now. I have four or five adidas. Yeah, because you run all the time. She can give it right back. [laughter] where are the other Sneaker Companies . They are doing the same thing, just not as well and not as much. Exactly wherenow to distribute, they know when to get them, they know when to push them into the market, they know how to hype i. T. Can you see me running through central park . So fast, so fast. You have to get some lebrons on your next run. Tothat is what it comes down nike has the stars. That is what has driven their business, and that is one of the things, besides manufacturing in every thing else, that has made them continue to win. This is something we will continue to watch for. Kyle stock of bloomberg businessweek, thank you for joining us. Coming up on bloomberg surveillance, why microsoft is focused on the wrong thing when it comes to microsofts next ceo. Good morning, everyone. Breaking news here at bloomberg surveillance, this has to do with facebook and mr. Zuckerberg it is at tech time, and they are to offer 27 million shares. The headlines just coming out. This is what overhangs successful Growth Company offerings, those of further shares. Scarlet fu has the details are Greg Facebook will offer 27 million shares, and Mark Zuckerberg, the founder and ceo, will be offering 43 million shares by certain selling holders. The majority of the net proceeds of zuckerberg will get on the taxes will satisfy incurred in connection with this sale. That is only one part of it. Ebook sales down in the shares down in the premarket. This is distinct it appeared at about the guys in this ever before. Facebook, zuckerberg, to gift 18 million Class B Shares in december. The class b gift to be converted to class a. Our gift of the morning you get lucky sometimes with us, with a lot of work in Silicon Valley and yahoo , michael wolf joins us. You have seen this before, you the share there is overhang and they have to go out a movie shares. It worries investors but there is a motto in Silicon Valley which as you raise money when you can, not when you need it. They are taking advantage of this moment were people think the stock is doing well, the company is doing great, and it has gone back up. So it is striking that balance between what is going to be that overhang versus good moment to raise money. How do you discern a company doing this right whether it is fancy talk of gifts, class a, class b, and a company that is being devious about it or less transparent about it . The big indicator is how long does the ipo are people giving out their shares or selling their shares . Had ament, facebook initial wave of people who left, but for the most part we have not seen a lot of that. The initial shareholders, asshall sonenshine, help us well, knew this was going to occur when a bot of those shares. They knew this would happen. Yes, there are lock up options and postlock up option should expect insiders to sale. The gifting will not hurt anybody initially, but later on if the sets of a foundation, he gets a full tax credit. Slowdown, this is a sonenshine alert. Give me all the literature you brought today. Showed up with his iphone, marshall has enough he actually knows what he is talking about. You are presuming mr. Zuckerberg is setting up a gift transferred to set up a zuckerberg foundation. Scarlet said he was selling some shares and there was a news item that he was going to give some shares. I assume, i do not know, but i assume he will set up a take hisn, texas taxes and the letter a to b is the a to b. I think he is going to buy the San Francisco giants. Yeah, right. Telethon leading innovator and will it do it again this year . Cut morning, everyone. Bloomberg surveillance, breaking news again facebook out with a secondary offering third scarlet fu well have details on that. Let me do a quick data check. What a celebration yesterday. S p futures back above a few hundred, dow closing 16,167. Stronger bernanke and yellen this morning, they take a victory lap. Terrific news on facebook. This is a real validation of their shared price performance. Facebook is selling cash. Mark zuckerberg is offering 43 million shares as part of this. 1. 6 andreessen is selling million shares as well. Part zuckerberg is making a gift of 18 million Class B Shares and converting 18 million of them to class a shares, which are the general shares. Is. Morgan securities handling this. Michael wolf is with us with his great experiment on m a, Corporate Structure in Silicon Valley. Michael, this class a, class b, explain that to mere mortals. From the beginning, Mark Zuckerberg has controlled his company. It is one of the reasons he did not sell out to people. And right now, he had special shares, just as the founders of google and other people, so he certainly if he is going to give those shares away, he certainly wants to convert them from b to a so he maintains that control. Offacebook says the majority shares to zuckerberg are to satisfy taxes of sales. What part of this is motivated by shares having rallied big from the ipo, and what part of this is normal tax rotation . Every analyst has a buy on it at a much higher price. They do but their average rice target is up to 60. Right now it is that 55. Is this an indication of people within facebook do not see the stock of going that much higher . It may be just a moment. I think they have a lot of confidence in the business and facebook continues to be a growing phenomenon. We will discuss this later in the hour. Newsfeed front and center across the zeitgeist. The zeitgeist for 2013, while it was disruptive, disruptive as well, it is so 2013. Next years word of financials like this financial zeitgeist maybe constructivism. A for morenenshine, and m a what is a constructivist . First welcome i made up the word, and they said they had a strategy to buy lots of shares from families in institutions that one out but only if the management or board would say that they would go along with some of their ideas, i. E. , be open to their suggestions . I said you better not call yourself an activist fine, but if you want to change the company on those terms, you should call yourself