Analytics reporting bargain hungry shoppers bought less. Sales fell by mid single digit percentage at brick and Mortar Stores on friday and saturday. That compares to the same days last year. But, heres the important part, it does not include online sales which of course have been the story of the season. Wellknown industry analyst dana telsey will join us with her thoughts later this morning. In the meantime, Steve Weissman has the headlines. Apple announced it has signed a longawaited agreement with china mobile to sell iphones to the worlds mobile phone users. It could add billions of dollars to apples revenue. It will start january 17th. China mobile will begin preorders on wednesday. Eunice yoon will join us. Tiffany must pay swatch 449 million in damages over a failed joint venture to produce and market watches. Tiffany is cutting its full year profit outlook. Boeings unionized machinist workers will vote january 3rd on the latest contract. Where boeing makes the 777 voted two to one against the companys initial offer. Under that deal production of boeings next jet would have remained in washington state. In the aftermath of that boeing said it would look for other places to build the 777x. Steve, todays the day. What is today . The deadline in washington. The day of the day, the deadline for americans to sign up for Health Care Coverage under obamacare. Unless youre one of the groups that somehow got some type of exception to the mandate, and its all very confusing. The white house says the website is going to be able to handle the lastminute demands. Well see. Theres some americans that will get more time. Theres a hardship exemption to prevent them from signing up for it at all without a penalty. Catastrophic used to be available to people under 30 and then there are the people who have encountered problems with the website, the interesting statistic is going to be whether there are more people or less people that are going to be covered. How do you prove that you tried and failed . I think that they know that you were on the website. If the website is messed up like they say i cant imagine anyone who doesnt want the penalty will say i tried. I would say i tried and i failed. Did you see what the journal said about that . Thats. An exemption on oe obamacare. New tie and new shirt. Big day. I thought to honor you were right about the taper and you. So wrong. I know. I know. You didnt say that last week. You didnt cop to that. I know. I was bowing to you about i just let it happen. I didnt comment but i bu to him. I do bow to him. But you because he was right. When you had a chance to back him, you didnt believe him about december. I i was struggling with it. I was struggling with it. It all made sense. He was the guy. In fact, it even got to the point where his reporting aside he just said heres the three things that needed to be done. I didnt even need him to know that they were going to taper at that point. I have to admit, you know, you try to read the sort of tea leaves and whats going on at the fed and then you try to read the tea leaves whats going on inside steves head which is a separate issue. I thought in my own little way that he was actually backing down a little bit in the days ahead. Just at the very beginning. He looked a little anxious and therefore i got a little anxious. Therefore, thats how i got to that result. It wasnt his fault. I saw something the other day, that was him getting a bunch of hairspray in makeup. I asked you thought that was weird. It was like alice in wonderland. It was a lifetime supply. A large can. They were putting hairspray. Then i thought that was not hairspray, that was some type of wax. No . No, it was hairspray, joe, because, yeah, there is hair to spray there, joe. Okay. Joe, are you feeling inadequate or insecure this morning, you have to emphasize the differences between us. No. No. No. That you have this healthy, robust head of hair there and i am folicly challenged . That was not enough stimulation i just gave you about about the other thing. Youre right, i should have taken them in context. I struggled mightily to come up with a word without, you know, saying something bad. Steve, always remember. The reason that there isnt hair up there is because he has more testosterone. That is true. Do you know about that . No. All i know is that somebody left some rogaine on my desk, three boxes of it. No, that wont work. No, if you have it, i want it. I still have a shot at saving i think it might have been steele. I have a shot at saving what i have. We have other news this morning. The situation around target and the fallout of that data breach. The wall street journal reporting that the retailer suffered reduced customer traffic over one of the busiest shopping weekends of the year. Saying that the number of transactions at target fell 3 to 4 compared to last years final weekend before christmas. Meantime, this may be the bigger story actually over the weekend, the nations bigger banks have been monitoring the situation and responding to consumers concerns on saturday. Heres whats going on, chase, if youre a chase customer, i am a chase customer though im not affected by target, they are limiting debit card accounts to cash withdrawals to 100 a day and 300 a day using the card. The bank calls it a precaution from taking money from customer accounts. Because of target . Yes. If you had shopped at target during this period, theyre reducing the amount of cash you can take, theyre reducing the amount of money you can take. If youre outside of the country with a chase card, you cannot use it at all. I have to say citigroup is not doing this, bank of america is not doing this. Nobody else is doing this. This is not for the protection of the individual because guess whos on the hook for that, the bank anyway. This is for the protection of the bank. I know enough people and looking online, whoa, it may make sense in some regard but youre a customer. And to think if this theyre doing it to cover their butts. Yes. Cya situation. And which is fine except for the fact that if theyre going to react this way to a breach like this, what happens if something really bad happens . What do you think of that, steve . I think you make a really interesting point. It hadnt occurred to me that thats really about protecting the bank and not the individuals. This is a much larger issue. Now we know if someone did do that, you know who has to pay for it. It would have been the banks. The banks would always have to pay for it. They guarantee this. Theres a separate issue which i believe visa or other card issuers, theyre setting a new date where they may try to put the retailers and the banks hooked to the retailer on the hook. Theres a whole thing going on. Doesnt American Express guarantee everything . Visa. Used to be a 50 thing. Are they both zero now . No, its now all zero. The other thing youll see i think over the next two or three years, in europe if you ever look at a credit card, it has a little chip on it. That makes it much more secure. None of the u. S. Banks have ever wanted to could it because of the cost of putting the chip there, in all of the retailers having to change out their devices has been so high and the fraud has been so low that theres not a need to do it. I expect over the next two or three years whats your thought . Are you worried about online fraud . Im worried about online fraud. What do you do . Do you buy things online . I buy things online constantly. How do you protect yourself . I dont. I have we have a chase account is one of our accounts. I dont want to say where all the accounts are. I assume that, you know, if theres a problem, the bank will take care of it. Im hoping to be part of the great wash in terms of theres so many people out there that i never get targeted. We talked about this on friday. My atm card was skimmed at one of those my Corporate Card was. My atm card at bodega and all of the money taken out in israel. Over a month they took out a little bit of money every single day. I had a guy go and buy a bunch of gas and kids toys with my Corporate Card. Thats like a new york story for you. Youre getting cash from bodega out of an atm at bodega. Thats a business i wish i had been in, by the way. The off premises atm machine. What a business is that . We have cars and we have banks and they have like, you know, satellite offices that you can go through. Right. Its all very orderly. This is the convenience of every fruit stands. This is the convenience of every single block having an atm machine. Fairly convenient. Lets check on markets this morning. What a great santa claus rally we had last week with the strangest ignition switch. You predicted a stronger market. 300 points. And more the next day. Today, more. Another 80 points, steve. Pretty sure the fed was pleased with the market reaction. Its almost like pretty sure the fed was. The first time around almost Spring Loaded the second one. The first time they didnt do it, that friday. Initially it was okay on the thursday and then the next day it sold off. It was like, wow, why didnt you taper . Talk about glass half full, the fed will do 460 billion of qe. No, its nice. If it goes on a decline every meeting. We have that. You have both. Oil markets this morning looking 98 weve been right around 100. Its been kind of like not that interesting to watch. Its been between 90 and 100. The ten year, im not stuck. My thing was 2. 873 and then by the end of by the end of friday i wanted to do the close today. By the end of friday 2. 891. That was less than 2 basis points. Youre very close. The spirit of the law was that it didnt move. It was pretty orderly. The dollar which by davos, this better be lower even though its obviously franks are different than euros. Thats. 368424. Are you ready to predict next year the year is the euro will stop. If germany didnt keep currencies low they wouldnt be able to sell to all of the countries that theyre giving credit to. I dont know how it works over there but its all legal apparently. Now this guy is out, this russian buddy of yours. Khordofsky . Yes. Is he talking . I used to run into him at a restaurant on the way outside of moscow. Used to be hanging out there by himself. Walk up to him, talk to him and say hello. You talked to him in russian . I did. He was a really nice guy. At one point westerners were arguing to me that he hadless oil company the best oil company in the world with the best audited accounts that was better than exxon, better than bp. He became a threat to putin. Because of the profit motive, he created a westernize the oil company and they took it in one of the biggest charades of a government. And how much of putins 100 billion net worth is i think a lot of it. Now ross nef owns all of those assets and he may have to turn that around if Oil Production doesnt keep pace in the former soviet union. Over here you take advantage of someone on a better deal. Over there you put the guy in jail and take his stuff which is so much better. Easier. So much easier. So much cleaner. Theyre acting in their own selfinterest. Yeah. Yeah. Lets do global news. Chinas inner Bank Borrowing costs spiked to a sixmonth high. Equity investors appear to be shrugging off the rise of rates saying liquidity has seasonal factors. Well talk with eunice. Eunice is here. Shes right there. Im looking at her over there. Wow. Excited to see her. Eunice is here on the other side of the wall. Get a camera on her. We have eunice there. She will give us a bit of the global markets. Thats not eunice. That is time for the global markets. Thats not eunice. Carolyn roth standing by in london. Good morning to you guys. Lets take a look at the european markets. Modestly high. Continuing on the gains we saw last week. In fact, euro penal markets saw their best performance in eight months. Stocks are up 2. 1 . As we head into the holiday shortened week volumes will be quite a bit lower. Thats why we could see some choppy trading. Zet kra dax is close to 9440 points and the ftse 100 seeing some nice gains from around. 4 . If we look at the sectors, Technology Stocks are doing well. One of those is arm holdings in the u. K. You can see here up by 2. 6 . One of the best performers on the footsie 100. This company is a major supplier for apple. Theres a report out about a really good christmas elf here in the u. K. The stock move youre seeing today, this is closely related to the deal between china mobile that youre going to talk to eunice about. Swatch group up by. 6 . This is a swatch Group Winning the battle against tiffanys in the west. Tiffanys ordered by a dutch Arbitration Court to pay swatch 450 million. This is because of the failed jv, joint venture back in 2007. Swatch is saying tiffany moved too slowly to launch and promote the products. Tiffanys, as you said, cutting the guidance. Back over to you. Thank you, carolyn. Joe . Yes, steve. I wanted to make sure youre paying attention. Im not. Im going to intro eunice. Yes. Not only did we talk about seeing but we said there is eunice and it wasnt you. We mentioned apple is one of the corporate stories. The company has a long way to deal with cnbc. Eunice yoon visiting from beijing joins us on set. 700 Million People. 750 million. Possible apple customers . Thats right. Thats right. So thats why everyone says its a really big deal. People are very excited, right . Long awaited. Everybody is waiting for it. Apple went up a lot. It did. People say this might be something. Thats the thing, i wonder how much is already in the stock. I dont know. But that is huge. How many customers do have they now . Oh, 1 for iphone users . Yes. 45 million. Those are people that buy the phone unlooked. Those are unlocked for china mobile users. 23 last year . 23 last year but it was 45 Million People go to hopping congress, buy an unlocked iphone, then theyll go back and then theyll hook up with how much does that cost . That is something that everyone is wondering about. Whats your guess . Same price as the u. S. . Cheaper . They dont sell to china but china unicom can give away iphones for free but only if you buy about 1,000 worth of minutes so the pricing has to be at least as good as that. I know this is a hard question. How many people are on par with u. S. Incomes in china such that they can lets say it costs the same in the u. S. How big is that market in china . Its pretty big because it costs 850 to buy an iphone there. Its not something you would bias a middle class income person, people see it as a status symbol. They are willing to save up. Thats been going on for quite some time. People who buy their phones through china mobile will now have the opportunity to buy iphones. The difference between these are their two major carriers. You have china mobile who has a reputation for not so Reliable Data Service but very good voice service. So i7 not sure what will work better. In china people prioritize voice. Now theyre in this position where a lot of people are talking about, wow, now i can upgrade to another phone. It doesnt have to be a blackberry. It doesnt have to be an an droitd. It can be an iphone which a lot of people like. The estimates are that it could boost the number of iphones anywhere from 15 to 30 mill next year. A nice sam stung is real good but it doesnt hold the same theyre almost 3g. No 4g. That is really key. Like i said, china has this Bad Reputation for the service. China mobile doesnt have the 4g . Nobody does. Everybody is getting their licenses. The 3g for unicom is better than nor robert. Do we believe its already priced into the stock . For the past six months this was going to happen. I would assume the stock already moved on that. It was interesting. When i was checking online to see what the reaction was, there wasnt as much reaction in china among users as i would think. The last couple of weeks weve been hearing, this is going to happen. No, they denied it. Not really. Joe, do you want to ask . I have a question. A bigger question because im such a worldly guy. Im afraid. Yeah. Be afraid. Is this shoe guy usurping the other guys economic role . Now hes more powerful . Yeah, thats what a lot of people are talking about. It was the other guys cameron. He goes, no, its going to be my zblaert right. Basically everybody has been talking about it. Really . Yeah. Is that theres reports about it. You. You have to find out about things on posters, whats going on. Somethings happening here. Basically. You have to read a lot of tea leaves. What about the rise in Interest Rates there and how chinas going to stomach whats happening here in the United States with tapering . Well, its strange because people were really, really creeped out in june when we saw it happen. The level of fear isnt so big. Theres something natural about companies coming in. Theres a demand for funding, but the central bank did come in and inject liquidity relatively quickly, even though so there isnt quite as much fear as there was in june so is 14 a year when you expect more economic mobilization in china, both with the currency right. And there were some moves that were just recently made about Foreign Companies in china. I think 2014 and Going Forward just seems as though there are a lot of signals from the top that they do want performed. A lot of that is selfinterested. Now china is in a position where they actually need the reform in order to really move their economy forward. So its not as though by changing the valuation, the currency is the case in russia, too, joe, you were talking about that. Russia reformed economically when the economy went down. That was the only time. When the economys great, the state comes in and grabs everything. Theres no reason to move. Right. All of a sudden you have a dip down and that motivates economic reform from the top. Where do you live . Do you live in a high rice or something . I do. Its really expensive. Are you fluent in mandarin . No. Over there if you dont speak mandarin and canton, can you get by . Yeah. Yeah. Even you could get by. Really . Yeah. You should come over. Youll be walking around. Im clueless. Youve been there. I have, yeah. Im scared. Did you go to main land china or hong kong . Mainland chien nampt shanghai, beijing. You understand some . Yeah. What did you think . The scale of it was amazing. You could feel it. You could feel it. I was about to say its in the air. Theres Something Else in the air thats not so great either. Yeah. Theres something remarkable thats going on over there. I find it so funny because when youre reporting there youre constantly told th