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tv   In the Loop With Betty Liu  Bloomberg  January 3, 2014 8:00am-10:01am EST

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betty liu. chrysler sales are coming out at any moment. last year was the strongest in many years. sergio marchionne making a bid. flagship fund for pimco's bill gross was hurt by the fed. a severe storm is making life very icy and snowy on the east coast. in feet of snow have fallen some areas, causing travel issues for many. temperatures are in the single digits. december u.s. vehicle sales on chrysler were up 5.7%, falling short of estimates of the rise of 8.4%. matt miller has more on the numbers. >> i am looking through the release. it is a miss, something we're
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not used to. usually the car companies have been beating estimates, but it is still a gain, at first the 45th%, which omit consecutive month of year-over- year sales increases for chrysler. they started at a low bar during the bankruptcy, it has come roaring back under the leadership of sergio marchionne. yesterday we talked about the deal he clinched, purchasing the rest of chrysler from a union group with a lot of chrysler's own cash. a real coup for sergio marchionne yesterday. of 6%.e have a gain the 45th consecutive month of sales gains.
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the best december sales chrysler have seen in six years, better than they have done since 2008. 9%.-year sales are up about the strongest annual sales growth since 2007. marchionne isgio a self subscribed corporate fixer. we will have figures out from ford, gm, what do you expect? >> ford is expected to post sales growth of about 4.3% in december. gm is expected to be 1.5%. more interestingly, we are expecting all three u.s. usemakers, and i will "u.s." because chrysler is
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technically italian. all three will show gains in u.s. sales. that is the first time they have done it in a decade. whenthe exception of 2011 japan was slammed with this and not me that's outnumbered action withnda and -- was slammed , they have not done it. >> millions of people are waking up to a snowy landscape brought up by a blizzard. bloomberg meteorologist bonnie schneider is with me. where is the storm? >> it is still right over us here in new york. the wind is blustery. temperatures are brutally cold.
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wind chills in white plains are -15. let me show you this radar animation. we have quite a bit of snow working its way across long island. it is moving through eastern massachusetts. cape cod is getting hammered. blowing snow make visibility near zero. most flights are canceled. let's move to the next graphic. we are still tracking other conditions. snow -- ao to ice and lot of people are trying to get out there and shovel, and that is one of the biggest injuries. most of the time it happens in car accidents were just being caught in the elements. , evenrack in the forecast if you are a veteran of snowstorms. most casualties occur with men
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over 40. we are monitoring the storm. we are looking at the wind chills. we are looking at brutally cold temperatures calling -- causing shutdowns with new jersey transit. and teterboroark airports are open. visibility will get better. tomorrow,e we get to you should be able to catch up on your flight. the advisories continue until about 1:00 p.m. it will take a wild for the storm to leave. once the storm exits, we will get a reinforcing blast of arctic air. that will make a huge difference. temperatures will get colder tomorrow morning. -- those of you expanding planning to spend time outdoors, be careful.
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any areas with exposed skin could get frostbite within 15 minutes. it is a serious situation. >> thank you, bonnie schneider. a major snowstorm is causing headaches for most, but creating profits for others. julie hyman has a list of the companies benefiting. i will go out on a limb -- home depot and lowe's. supplies you have to get, and natural gas springs to mind because when it is super cold, the demand for natural gas tends to go up. natural gas providers like chesapeake partners. ferrellgas partners, suburban propane partners, and of course they do not just benefit with the spikes of cold weather, but
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the entirety of how cold the winter is is important for them. backup generators tend to be a big business as there is concern the power will go out. toerator sales can add up $50 million in sales. 97% of homes do not have a backup generator. we saw a pickup after superstorm sandy. pimm fox actually spoke to the genera yesterday. >> everything interacts with the grid. when you get into safety type things wear daily care is necessary, you have to get power. the more dependent we become on electricity, the more you need a backup strategy.
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>> that is the residential and commercial use. >> speaking of commercial use, what about plows? >> you have them all over new york city. in the winter season, people sign up for contract. when you know the big storm is coming, the demand might pick up. we spoke to a company that sells that he goes on the front of the truck, and they say it adds to sales. >> when everybody is home and cooped up, do retailers benefit? is there nothing left to do but shop online? >> there is surprisingly little research, but in seattle there was a study to examine the more -- the weather correlation. there, it was more of a question of rain.
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it is a correlation between rainfall and traffic. if you look at home furniture 10%-12%s, they saw a bump when there was inclement weather. apparel retailer saw a smaller bump because people refer to try things on, so the commoditized items tend to do better. >> fedex, ups, if you order things, will you get them? >> they say we have been doing this for a long time and they have meteorologists on staff to prepare for things like this. >> makes sense. >> yes, there might be delays, but they have been doing this for a wild and they keep it under control -- doing this for a wild, and they keep it under control. you, withyman, thank the business implications of the
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snowstorm. moving and shaking this hour, bond guru bill gross is coming off of a year to forget. his total return fund had its biggest decline in two decades. the fund is no less -- no longer the world's largest mutual fund. he misjudged the fed's plan. he did worse than two thirds of his peers last year. we will shift gears and take you down to washington, d.c., because members of congress will be getting back into town next week with a long to do list. white house correspondent phil mattingly, finishing on a high note with this bipartisan deal in december, what is the lookout for the way forward? >> it is not clear what kind of
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has. life that goodwill house republicans announced they will do and obamacare-related vote as soon as next week. for the key thing i will watch for is the senate. benefits, 1.3 million people lost the benefits on december 28. there's a bipartisan bill in the senate. it will take a test bill. if they five republicans, that will put a lot of pressure on something they do not want to touch. janet yellen's final vote was moved to january 6. by january 6, she should be officially confirmed as fed chairman. couple of weeks into the future, the budget deal that was sealed at the end of last year, lawmakers will vote. house aides and senate aides say
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they feel good where they are. we should have a finalized spending bill. is an election year. we are coming off of the least productive congress in history. what can get done? >> when you start with that, it is a pretty low bar. when you look at the last three and a half years, everybody looks at the fiscal fight. there is only one on the horizon, a debt ceiling increase, with a limit supposed to be hit around february. march or april would be the roadblock. looking further all along the line, you will see politically based votes. democrats have seized on the minimum wage issue, economic inequality. it does not have a chance in the house, but from a campaigning
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perspective, it is a big deal. there is a lot of buzz trying to figure out where house speaker weiner isr is -- john on immigration. to figureership wants out something to do with immigration, what pathway they take. we might see an answer to that in the first couple of weeks when congress gets back. >> phil mattingly, thank you. back, deal or no deal -- mergers and acquisitions activity down 20% compared to 2012. what happens in macau stays in macau -- we will tell you why casino revenues are soaring there. snow -- we will tell you the best card to navigate in. stay "in the loop."
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we are just getting started on this friday morning. ♪
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>> all right. that is a look at snow we new york. it is very icy. dangerous outside. work, beve to go to careful. when he 13 saw a 20% drop in mergers -- 2013 saw a 20% drop in mergers and acquisitions. aboutpert guest will talk deals this year. he has worked on deals such as marshall, thank you for coming in. statistic,d this 20%
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the drop-off. there were some big tech and telecom deals. there was an airline deal. what can we expect this year? >> there was a drop in the numbers from about behind the numbers there is a story. equities are a good leading indicator of some form of recovery. we do not have a perfect recovery. we have been technically out of a recession since 2009, but we .ave not recovered equities and mergers and acquisitions are correlated. currently, that has not been the case. equities have been strong and m&a has been stuck here at >> what is the missing ingredient. -- stuck. >> what is the missing
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ingredient? , you on the flagship deals have not seen the big volume of private equity-left deals we saw in bull markets. that is important because it tells you the medium-term is the hardest to predict. we do not really know where we are in 2, 3, four years. >> there are reasons to do deals, and if you look at bigger companies, it seems like they cannot innovate from the inside, so they have to buy if they are going to grow. >> exactly. that is the point. if you are unable to look long- term from a strategic perspective, there is plenty of in manylid, grade a m&a
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sectors. .odafone >> that was the second biggest ever. in that markets has to consolidate. vodafone was out buying. you were talking about sprint and t-mobile. that deal has been rumored. both stocks are up. acquire stocks go in this market, many are listed. if you look at this morning, .irei >> if you stay ahead of your peers, you have to do something.
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>> that is right. if you are willing to look long- term and put down capital, any sector you look at you will see evidence. in media, we started with nbc and comcast and finished with liberty and version. we had an airline merger. that was a special situation. but every category, there is plenty of good business. , one bigll sonenshine team has been activist investors taking on big companies. who would have thought that apple, for example, could be targeted? what do you think of the role of activist investors? in a lot of cases there are activist investors for smaller, less well-known companies. >> i actually appreciate
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activists for what they do when they do it well. they shine a light on companies that are not performing optimally and need to. for truthas a market in it. this year, 2013, you have had good and bad activism. i would argue that some of what bill ackerman did with pershing was not right. dell was done by one of the most narrow boats. -- votes. it is not a ringing endorsement. >> marshall sonenshine, great to see you. thank you for making it in on a snowy friday.
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we are back in two two minutes with more "in the loop." ♪
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>> you are watching "in the loop " live on bloomberg television and streaming on your phone and futures are indicating a slightly higher open. yesterday, the first trading day of the year, all three were closing lower. 2013 was a record year for stocks. .he s&p 500 was up 29% we are on the markets again in 30 minutes. the east coast is blanketed by snow. ofis the first winter storm the year and some parts of the country will be covered in one
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foot and a half. bonnie schneider, a lot of people are coming home from the holidays. what can they expect? >> a lot of trouble from the snow we still see across the area. i want to look at the things you may encounter. we have blowing and drifting snow. blizzard warning toward eastern massachusetts. the temperature is 4 degrees with a wind chill of -10. we are also looking at a ingerous windchill, -25 up the state of maine. at white plains, here in new york, we had -16. very dangerous. that are this cold can give you a frostbite on exposed skin in 15 minutes. travel is something we are keeping in mind. we are watching for flight
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cancellations and delays. some airports are open, but not operating, one of them being jfk. >> what about the local commute? >> if you go to our radar and satellite perspective, i can show you new yorkers will be dealing with the situation east of central new jersey. plenty of snow into coastal connecticut. we are watching out for dangerous conditions in terms of wind chills. we are looking at conditions that are really cold with cold temperatures and the wind making it feel even colder. >> thank you, bonnie schneider. we will be checking in with you throughout the morning. chicago cut its homicide rate 18% last year, with the killings the fewest reported since 1965. .hicago reported 415 last year
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los angeles, 250. chrysler missed analyst estimates. 5.7%, but up estimates were looking for 8.4%. they had their best december in six years and reported a sales increase of nine percent, a fourth consecutive year of annual sales growth. hyundai is teaming up with google. drivers will be able to use -- pre-lass for paris driving situations. nissan will also integrate the wearable data devices into their vehicles. alicia keys is saying goodbye to blackberry. she will leave her post as the director oneve
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year after she signed on for the position. i will bring in our expert on all things musical and blackberry. hugo miller joins us from toronto. even the fabulous ms. alicia keys could not save blackberry. is that the takeaway? >> exactly. the wording was clear. it was not clear anyone was firing anyone. it was merely described as the end of a one-year collaboration. ceo,akeaway is the new john chen, this is not in his game plan. froms decided that phones a consumer perspective are not part of his future. he has outsourced the entire production and design of the consumer-oriented phones to foxconn in a deal that was announced last week. this will be about going back to
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lawyers, bankers, civil servants, and few of them have probably even heard of alicia keys. >> what? nobody has heard of alicia keys in canada? what is going on? she was brought on before the launch of the blackberry 10. this was all-in for blackberry, with a new product they hoped would rescue the brand and she was part of that. back 12f you rewind months, things were looking good. people were saying this would put blackberry back in the game. alicia keys stepped on the stage in manhattan just under a year ago and people thought this could work. then, when the sales did not "flop" wasd the word associated, it quickly spiraled downward. john chen is saying no more
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sponsorship, no more razzle- dazzle marketing. i would not be surprised if you see the relationship with grand prix racing also sidelined as they go back to basics, lawyers, banks. the basicsgo back to if you have something there. what are their choices at this point? >> you are right. how can they sell the phones if nobody is buying them? it might be a case of being a loss leader. they are working toward becoming more of a software player. 's oute paranoid cio there, they are saying whatever phone you use, you still need to softwareur security because we offer a solution in tech that is far superior and
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safer than our rivals. >> what about the fact that blackberry is walking away from a possible takeover -- what are the choices? shelved, clearly, for the six or nine months. investors are willing to give john chen until at least next activistsore investor or analysts talk about acquisitions and breakups of the company. even though the founder of the company and inventor of the blackberry dumped his stock and that prompted the shares to fall, the stock is still up 22% since the last earnings, and even though the earnings were ,bysmal, the stock is up 22% and that is a sign that investors are willing to give john chen breathing room.
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means they like what they are saying -- what he is saying and appreciate his candid approach. by next august, the wolves will be howling at the door if there is no sign of turnaround. >> hugo miller, thank you. >> you are welcome. >> when we come back, it is bowl season that we will give you the statistics on the big season for college football and why it is so important to the es pn bottom line. bottom line, and we will show you statistics on gambling in macau. we're backing two minutes. -- back in two minutes. ♪
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>> casino is this is in macau
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are hitting the jackpo reporting $45 billion of 2013, sevenenue in times as much as what is going on on the las vegas trip. they are hotel rooms, shopping malls and entertainment chose to draw in chinese tourists. is brianith more miller. we have spoken with sheldon adelson, the chairman of las vegas sands, and i have asked them why not change the name of your company because you are getting more than 90% of your revenue from macau. of course, he is not going to do it, but macau is where everybody is making money. wynn and lasy for vegas sands and it is true to a
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lesser extent for mgm resorts. andhat is driving this pair know there are currency controls in china -- this? we know there are currency controls in china where money can not leave china. >> in las vegas, you have a casual gambler. in macau, they are hard-core. china has currency controls, so especially at the high end you have a junket system in place, which finances high-end gamblers. thee are currency controls chinese government has and that is fueling the growth in the market. gambler that is there, the vip business that is sponsored by a junket that keeps them very rich chinese people there as long as they like.
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>> that is true. that is the high-end business, and it is facilitated by the junket. these operators realize there is a risk. they like to diversify into a non-vip market. lower-level gamblers are bringing in their own money, and the operators want to entice those people to do more than gamble -- they want them to go to events, dine, and spend money in other ways. and las really wynn vegas sands that are there, but there are chinese competitors and a big malaysian leader. how much can the u.s. businesses compete? so far, so good for las vegas sands, but how can they continue to compete with more locally-run
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business? >> right now they are on equal footing. , heing at sheldon adelson continues to pour money into projects. 2014 will be a pause, but after that there is a lot of new supply coming into the market. you mentioned 20% growth in 2013. las vegas sands was a big part of that. after 2014, it is still supply- driven and we will see what happens when the new supply comes online. >> brian miller from bloomberg industries with the latest on macau, thank you. when we come back, taking your four-wheel drive for the snow. traveling in style -- airports that boast the best luxury lounges. we will tell you about some of the perks when we come back.
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>> you are looking at a live shot of manhattan. if you are just waking up, you will see it is covered in snow. if you live in the northeast, you will have to drive in the snow at some point. bloomberg news columnist jason harper -- which car is best for navigating in these conditions? drive is great, as our tires that are good all- wheel drive tires. there is no perfect car. i spent a week with the lexus 350. it did a nice job in the snow. -- ver, i would not want >> what were the conditions
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like? roveray i have a range and that is a fantastic vehicle, and do you know how i got here? subway. .> true new yorker >> all-wheel drive is helpful, but not magical. forrester,s or a which is a great vehicle, all- wheel drive will help you, but it will not save you. there is no miracle car out there, but in general, do you have tips? >> the first is obviously slow down. slow down way earlier. in the range rover i had a piece of gravel that was on ice and i split about 10 feet in the range rover. you think you are impenetrable.
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if you are stuck and you have to drive -- >> we were looking at a camaro that was stuck since 3:00 in the morning. >> start in second gear. do not grind on the gas. people think it is not moving, push harder on the accelerator. that does not work. you can also put things on the rear and front tires. helps.itter if you are going out today, consider throwing some kitty litter in the back of your vehicle. that will add traction if you get stuck. also, some warm clothes. subway man, but i am also a city girl, full disclosure. you have one of the best jobs --
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you get to drive all these new vehicles. what is the coolest you have driven recently? >> the coolest was a hybrid, a portion 918 -- a porsche 918 that is a super sports car. it is also all-wheel drive, a hybrid, new technology that is very exciting. ford ando you think of the concept car next week with solar panels on the roof and the idea is you do not have to plug it in. tesla has panels on the roof. it is a great thing. you are saying technology filter down to brands like chrysler, gm and ford. in 10 years, almost everything will be a hybrid in some form. >> 10 years.
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what about design? >> it is interesting to look at a brand like ford which take something old like a mustang and interprets it in modern ways. cars are culture. it is architecture. these are things that move us every day, so it is fun to see design move forward every day. ford is doing a great job as is hyundai and kia. we can combine interesting cars you would not have found 20 years ago. cheap cars do not mean cheap. >> well said. jason harper, thank you. speaking of transport, airlines are trying to make your time that the terminal as comfortable as possible if you are lucky enough to have access to exclusive lounges. we checked out some of the top airport called this. -- clubs.
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♪ ♪ >> when we come back, there is a critical vote facing boeing's largest union. thousands of jobs are at stake. we will tell you the significant details. signed, sealed, delivered -- congress will look to end saturday delivery as it tries to trim the postal budget. we are back with that story as well in just two minutes.
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>> congress comes back from break next week and tackling the postal service budget is one item on the agenda. and a lot -- netflix are lobbying hard against ending saturday service. what is the argument from the company perspective, megan hughes? >> if you take away saturday delivery, you take away a service they offer customers. options are other carriers, but they might bring more expenses. --ommerce companies -- ebay they handle the five percent of ebay shipments. -- cvs says five million packages of prescription drugs go out every single saturday.
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financial service companies -- .pmorgan, american express they have exposure forms and statements. they are lobbying against this. greeting card companies, hallmark, netflix, and even time warner cable which has magazine subscription services. january will be a critical month. >> the postal service says it is necessary to cut costs. >> it does. it is no surprise the postal service has had a lot of trouble when it comes to finances. they have the emergence of the internet and the increasing in the use of internet from everything to bill paying to e- mail has led to lost revenue. the pension and health care costs they have been grappling with -- but from some perspectives, there have been
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improvements in terms of cutting costs and increasing revenue. the postal service lost $5 2013.n in the fiscal year the number was $15.9 billion in 2012. one of the things they need congressional approval for is making this change. ,> megan hughes join us there our washington correspondent with the latest on the post office. it is 56 minutes past the hour, time for bloomberg television on the market. futures indicate a higher open. yesterday, on the first trading day of the new year, you had the s&p 500, the dow and the nasdaq closing lower. we are back getting you closer to the opening bell in just two minutes. ♪
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>> 30 minutes to the opening bell -- this is "in the loop" with betty liu. the countdown begins right now. >> welcome back. you are "in the loop." i am deirdre bolton, in for betty liu. chrysler sales are up, but fell short of estimates. hasnow italian chrysler lost sales for 45 months in a row. hyundai is planning a google cap -- threerive app.e-drive
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several thousand flights have been canceled. with more on the storm, bonnie schneider. where is the storm right now? >> it is impacting new york, massachusetts, and rhode island. we have blizzard warnings in place. .ook at the radar picture snow bands are sweeping across eastern new england. the question is how much snow did we get? here are the totals. six inches in central park. boston asght snow in i look out the window at lexington avenue. rhode island, eight inches of snow. it is still snowing in the new england area. it is also windy and dangerous. we can show the windchill factor.
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in many locations it feels like -10, negative 20 or even -30 toward northern maine. it is dangerously cold. as we go through today and tomorrow, the windchill will be a huge concern. >> we are getting information from jfk. it seems the airport will open in a half hours time. it looks like there is an easing up of passengers being able to get in. what else do we need to look out for? >> we need to worry about the windchill and what we expect in terms of strong wind making it feel a lot colder. i want to put the cold in context. you might think how cold is negative 20 or -30. if you look at the average surface temperature of mars, it is -67. the lotus -- lowest temperature
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135.8 -- - earth is 135.8. schneider, we will be checking in with you throughout the morning. from storms to a transport- boeing's largest union in washington will face a critical vote. at stake, billions of dollars and thousands of jobs. adam johnson is with me now. what are the biggest issues? money.y, money, the deal is so big, rating agencies have said they will potentially downgrade the rating of washington. >> boeing is a huge employer, along with microsoft. you are talking about a handful of companies. >> that is why it is so crucial for washington state.
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boeing has already offered terms of a contract for the production of the 777, which is the newest, latest, and arguably the largest boeing wide-body in production. boeing has already offered terms to the machinists to keep jobs in washington and it was twice rejected. boeing wants to shift the benefits from a pension plan to a defined benefits program. >> contentious. >> yes. it would save boeing a lot of money. union leadership says they do not want it. agreement, youno mentioned the 777 -- what happens? >> boeing might look elsewhere. , isleston, south carolina one possibility. it is bad for washington state
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and the machinists that live in washington state. ultimately, it will be produced somewhere in the u.s.. boeing has high hopes. if you look at the backlog, it is about one-.. .- one-third the expectation is the number will increase as more airlines need the new, larger, wide-body that can be more fuel efficient and faster. >> adam johnson, thank you. shifting gears and looking to football, it is bowl season. the ncaa, the nba -- will crown a champion when the auburn tigers take on the florida state seminoles. it will draw big numbers for espn. jon erlichman joins me with how
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important college bowl games are for years p.m.. in some ways, it is just as big four espn.-- in some ways, it is as big as the nfl. >> that is a good point. after monday night football, you have major league baseball, the nba, and these college bowl games that get enormous audience. for deserves credit ultimately having a hand in how the schedules have worked. it results in advertisers paying spots --for the 32nd 30-second spots.
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cable companies will feel good about paying fees to espn if you have millions of people watching. the other piece of the pie, when espn signs these contracts, they think about being able to show the games on all kinds of platforms. this has been an opportunity to push people toward their watch espn app. foxone fit in? story,alked about this .he launch of fox sports one rating so far would suggest espn , and thatust fine might be how the sports season has played out over the last few
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months. x does have a lot of college sports. they have the rights to golf and ultimate fighting which has been a huge ratings driver. anecdotally, people that watch sportscenter have noticed that ufc coverage that might be influenced by fox sports one. >> jon erlichman, thank you. tech and mediat news every weekday at 1:00 p.m. and 6:00 p.m. right here on ."loomberg west when we come back, keeping your personal information safe -- that is what we will focus on. robots,e small step for one giant step for robot-kind. last year, robots went everywhere.
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we will tell you where they might show up. stay "in the loop." ♪
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>> first. bloomberg. >> you are watching "in the loop ," live on bloomberg television, streaming on your tablet, and on the syrian electronic army says they got skype, twitter and facebook access. i'm joined by a senior security advisor. chester, thank you for joining us. we know this is not the first has the syrian free army
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done this. what are their goals, publicity? pr. merrily they are 8 -- primarily pr. they are a pro-assad group. there is not much proof that they are in syria. all we know is they seem to be supporting the syrian regime. >> what do social media companies need to do to protect the data? we spoke about snap chat and how 4.5 million data points were people said snap chat deserved it as many told them their system was too weak, and they ignored it. media companies, particularly facebook and twitter have taken quite a bit of action to thwart attacks,
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unfortunately organizations have to take advantage of the things provided to stay safe. there is something called two- .actor authorization it appears skype did not have them turned on. >> at number reading this morning that they were actually users inout it, asking a polite way for individual data. distinguish if it is politely phrased between something that is legitimately coming from the network, and something coming from a hacker? >> i guess you should trust no one? -- no one. when you receive an e-mail with a link, experts like me say do not click links. it is human nature that sometimes we see things coming from twitter, facebook,
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whatever, and it is difficult to tell. that is what this is set up to do, put a barrier in the way where i cannot just be asking you nicely for your password, but need to access your phone, which is not practical. turning these things on, in particular in protecting big brands like microsoft, but for you and i, if we care about our advantageital, take of things in security settings, and they will largely protect us from little accidents where we might be tricked. >> when you mention microsoft, either companies you think protect -- are there companies you think protect better than others? >> we usually find out when you
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fail. we saw the situation with the target credit cards. whenever a brand makes a big mistake, we criticize them and tell everyone what we think they did wrong. the ones that are doing it right are the ones we do not hear about. it is difficult to know whether somebody has been lucky, or whether somebody is doing it right. i am not so sure. >> how many new businesses will arise that have to do with protecting your security? asked the security industry is enormous and exploding -- >> the security industry is enormous and exploding. a couple of competitors announced acquisitions you talked about on the network. by leaps androwing bounds. the question is can we make the tools simple enough that people can utilize them. there are brilliant startups with security businesses, but it
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has to be something you and i can use, and if it cannot prevent the attacks, or if it is too complicated to me it will be falling by the wayside. >> good point, chester. thank you very much, chester wisniewski. facebook might be intercepting your personal messages and selling your information. theill give you details of companies allegedly violation of your privacy. hyundai going high-tech -- the company is teaming up with google to make your driving experience less stressful. we have an exclusive behind the scenes, he hind the wheel look at this new -- behind the wheel look at this new partnership. stay "in the loop." ♪
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>> here are your top tech stories from bloomberg west -- facebook being sued over allegations they intercept private messages with allegations that there are links thatird-party websites and facebook shares information with advertisers.
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facebook has denied wrongdoing. -- fireeye has made a necklace addition. of a sedans owners will be able to use the google glass application. lower --atest move to lure buyers with tech features. catch the latest technology news at 1:00 p.m. and 6:00 p.m. every day on "bloomberg last." we are back with the opening bell in just -- "bloomberg west. we are back with the opening bell in just a few minutes. ♪
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>> welcome back. ."u are "in the loop i am deirdre bolton, uniform betty liu. it is 26 minutes past am mark -- past the hour, and lubricant is on the market. -- bloomberg is on the markets. the dow last year was up 26%. the s&p 500 up 29%. we are on the markets again in 30 minutes. we want to count down the top 10 trades. julie hyman is with me, as is matt miller.
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micron technology. the semi conductive equipment company falling after a downgrade to a sector perform from outperform. last year, the stock was up more than 250%. >> number nine is twitter. shares are continuing their upward climb. evercore partners raised its price target saying they are in a strong position to capture video advertising dollars. , asumber eight is vodafone they are in early talks to acquire an indian mobile company that would give them a stronger foretold in the emerging markets and create india's largest telecom companies -- company. >> number seven is sirius xm radio with evercore upgrading
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them on hopes of rapid growth. number six is walmart, as they are recalling dunking meet -- donkey meat. they say they are boosting testing to make sure it is genuinely dunking meet -- donkey meat. >> number five is john the jews. juice.a , generaluing with food mills. they are stopping the use of genetically modified ingredients. they said they are not driven by
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safety concerns were pressure from critics. >> number three is rated. they reported a 2.9% rise in december with same-store sales fueled by growth in its pharmacy section. they posted a profit due to a boost from its loyalty program and renovations. >> number two, groupon. sail -- sellwill its entire stake. shares are up more than 140% last year. >> the number one stock we are watching, gm and ford -- you can see the premarket december sales figures. will bring you the figures as soon as they cross. we did hear earlier from chrysler and while they missed didmates from analysts, it
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log a game for the 45th straight month. that is the opening bell. you can hear their area we will it inou from -- hear there. we will take you from new york cme, larry levin from trading advantage. how are you setting up? >> we had not seen too many down days lately, and we are already off to a down start. i think we will see more of the same. the volume will pick up. i do not think the downward move is over. you will see more profit-taking. the volume follow-through with what we saw as far as the move is concerned. >> larry, thank you. we want to bring you the numbers. 1.7%, this is lower. the same story we saw with chrysler.
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lower than estimates for a rise of 4.3%. matt miller has more context. >>'s once again we see a -- once again we see a miss. we saw the same thing earlier with chrysler that came out with a number that was almost 6% 8%wth, but lower than the growth we were looking for. you will see superlatives like best sales year since 2007. chrysler had 45 months of sales gains in a row. for ford, you will also see a number of superlatives, especially in the case of market share because ford has done so ion versusthat fus toyota and the honda accord.
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they have also done well with keeping their price up. , and we ares waiting for general motors in about 30 minutes. post theexpected to smallest growth, only looking for 1.5%, so if it misses by the same amount, it will be a drop for december. it looks like december was not as easy for these carmakers as analysts estimated. >> matt miller, we will check with you in a bit. rob morgan is with us. he is a chief investment jet adjust. chiefll is keep -- officer.t his call is to keep your chips on financials.
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why do you think this is a good place to have money? >> they were one of the areas that were crushed the most, so the pe ratio contracted the hardest. i still think that even though as you say, the group did well last year, there is balance sheet repair that has to go on with big banks, and the other niche financials -- insurance, processing -- they are churning out earnings. you will see a combination of earnings growth and multiple expansion. roxie julie hyman, you have been looking on -- >> julie hyman, you have been looking at financials. the banking index is up something like 40%. you have done further digging. >> there is a consensus their case. -- bear case. the kbw index has the best
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performance since 1997, but projections for this year are not as stunning. analysts are looking for the blanks -- banks to declined .2%. at 80% of theing valuation of the s&p 500. the historical average is 76%. they are trading at a smaller discount than is historically. this is important. what will happen with rates? short-term rates are not predicted to rise until 2015, and that means the yield curve may not widen significantly and the margint, portion at the bank will not expand meaningfully in till 2015, potentially. these are all reasons we see the more bearish case.
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>> julie hyman makes a compelling case. >> i tend to think unemployment will fall faster than people think. if you look back to the jobless recoveries of the early 1990's, .nd early 2000's i think we will see rates going 2015.s year as opposed to i think there is a good chance they break that promise. i think we will see a steepening in the yield curve. three-year gets up to point five percent, which should be wind in the sails. -- 3.5%, which should be wind in the sails. >> matt miller, arguably the fed surprised the market twice last year. >> right, by not coming with a taper as early as expected, and then by doing it earlier than
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expected, right before janet yellen comes in to office. expect production in qe and raising rates more quickly. at that would be another 15 moves. we saw the raid on the 10-year .ove up 10 bips where will we see interest rates after this? be athink there will least more talk about rates going up this year from the fed, because as you said, the expectation is the rates do not go up until 2015. it seems like the first two years of janet yellen's term is laid out. i think the 10-year reaches 3.5 -- 3.5%. thatuestion is could and
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whole people out of stocks and into bonds? you would probably need to get up to 4%. rob, thank you for your time and insights. rob morgan. back, tack in las vegas -- the consumer electronics show will show you what companies and gadgets are creating all of the buzz. we will be back with more "in the loop." ♪
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>> it is a big storm -- parts of the u.s. may get a foot and a half of snow. we bring in a bloomberg meteorologist bonnie schneider. ?here is the storm moving >> i would like to say it is moving away by those impacted, but it is still impacting so many people because we have the rain, snow, and we also have
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-20er windchill as cold as in some areas. westan see the wind to the that will slide eastward. the question going forward is what to expect. we can expect big changes without blowing snow tapering off. dangerous when shows are near northern new england. -- wind chills are near northern new england. be careful, even if the roads are open and clear. it will still be icy out there. >> thank you. we will be checking back with you throughout the morning. bloomberg meteorologist bonnie schneider. new york city mayor bill de blasio will give an update this morning at 10:00 a.m. on the winter storm and you can watch it at our live event channel at
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vegas, forrk, to las more on what you can expect to see, we bring in senior west coast correspondent jon erlichman. which companies are getting the early buzz? >> i am always amazed by how many companies are there. there are so many. you have football fields full of products -- 20,000 products, 15 different tech categories. some will talk about the phones and the televisions and others will talk about the smaller stories like digital health. there is a great story that highlights you have about 300 different companies there, fitness apps and wearable devices. also, connected cars. biggermentioned some companies, some smaller
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companies. of ito the giants get out -- sony, samsung, the like? >> this is the one time where everybody's attention at the beginning is -- "what do you have?" we do not talk about televisions or even smart refrigerators. they have that kind of stuff they want attention for. it is also big for the traditional pc players like microsoft, and apple is not there in a big way. if there is no apple-related news, it is a big opportunity for others to get their stories out. >> jon erlichman, thank you. catch jon erlichman and the whole team with the latest in tech and media news every day at 1:00 p.m. and 6:00 p.m. read
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here on bloomberg television on "bloomberg west." we are back in two two minutes. ♪
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>> first. bloomberg. >> it is bowl season, but that is not taking attention away from the nfl. the green bay packers, the indianapolis colts, the cincinnati bengals, all selling tickets for first-round playoff games. many tickets are still available. sosnik is -- scott with me along with matt miller. what do we need to know? >> these teams, especially the packers, iconic franchises with
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a waitlist for tickets, they cannot sell out. the temperature will be -15 degrees. that is not the windchill. this is the nfl. the top sport in the end -- in the u.s.. three teams are not able to sell first round playoff games. that speaks to the big problem, stadium versus in-home experience. >> i would much rather sit at my house and watch on my television screen with various angles with fireplace, aide, a cold fridge. >> presumably no wait for the bathroom. >> other than going to lambeau field because i would rather see a green bay game been sitting in my living room, but other than that i will not go anywhere else to see the game.
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>> what about the risk of the blackout for television and local markets? what does it mean for the business of the team and the business of the nfl? >> it is actually a big deal for the nfl because the fcc is trying to lift the blackout rule, which means even if games are not sold out it can be so -- shown in the local market. the nfl plans to oppose this victory. there is a tug-of-war. many fans, as matt, said -- as matt said, he would rather sit at home. said we are saying nothing. >> it is an nfl issue. it is not a fox issue. a lot of the teams see the stadiums as cash registers and they require that the stadiums be packed. did thee teams that
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best jobs building stadiums not have this problem? if i could sit in a stadium and would good a of of you, i -- of a view, i would rather be in the crowd. if i want to go to cowboys stadium, that is fun because you have the biggest jumbotron i have ever seen. what owners and league officials will tell you -- the game experience is unrivaled and unmatched. >> in dallas, but not here in new york. >> they will tell you that everywhere. there were only two regular- season blackouts, so they say this is not a big deal, but now you put three first round playoff games on top of that, and there is worry. but the original blackout rule was created something like 40 years ago. everything has changed. as matt was saying, unless there is an awesome stadium, maybe you
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want to be at home. then,evisions sucked back for one, and social media was not in existence. if your game is blacked out in green bay or cincinnati, you would expect an uproar from people, especially during the playoffs. >> in green bay, perhaps it is the playoff fatigue. they are used to success. they would get involved in the championship game. in indianapolis, they have a new quarterback. cincinnati is not used to sustain success, you would think that is not the case. >> the nfl says if this happens the teams would have to buy back the tickets. >> teams look to sponsors to buy blocks of tickets. sometimes the owner themselves might buy the tickets to get the stadium full and left the blackout. miller. sosnik and matt
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we will shift global. it was the hottest year, believe it or not, on record, for australia. mean temperatures were 1.2 degrees above average. this year does not look to be different. hit 120 degrees fahrenheit in the southern part of the country yesterday. that doesn't do it for this week for thist does do it week on "in the loop." we are on the markets next. ♪
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>> this afternoon on "money moves" i'll be sticking to the founder and ceo of round hill ss.ic, josh gru it is 56 minutes past the hour. it is time for boomer television on the markets. i am joined by michael purvis -- bloomberg television on the markets. i am joined by michael purvis. what the stocks are doing supports your longer-term view with the s&p 500, the dow, and the nasdaq moving higher after yesterday's close lower rate you
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think they have more to gain. why is that? >> we can make lots of arguments, but the biggest allocation is happening in lots of markets and there is one logical place, u.s. equities. some will end up in international equities and other asset classes, but u.s. equities to the most logical places absorb these types of flows. up 26%.el, the dow was the s&p 500 was up 29% had people say this is -- 29%. people say this is overvalued. over valuation arguments, but the overarching principle is that flows will keep multiples expanding. >> whether people are right or wrong, stocks will continue to move higher. >> right, and the key is to
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learn how to invest in that climate because it is somewhat inevitable. the torrent of fixed-income flows might not be in a mess might not be -- enough this every month, but it is steady. europe versussee the u.s.? >> the gap has narrowed. i think the u.s. will trade better than europe. europe is getting anxious. we have some stress tests coming up that might cause ultimately some deflation trends in europe. right now, i think the u.s. will continue to be the most obvious place to invest. >> when you talk about stress tests, it is hard not to make a reference to the banks. how do you see u.s. banks versus european banks because it seems the fed is on a different path than the ecb?
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>> right now, if you stand back and look at the ecb versus the fed, there is one major difference, they have not done the aggressive quantitative easing. >> they have had the lt ro. >> they have had little types of things, and we might see more of that which could put downward pressure on the euro relative to the dollar. i think our tapering framework will be gentle. we will have more tapering, but it will be done in the way it was done a few weeks ago, gently, and i do not think janet yellen will want to rock the boa t too much. we are not in a wonderful economic environment here. financials.g what other sector do investors have to watch? >> tech has been a huge out performer of the broader market, and there are several reasons i can continue. there are value components
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capable of showing growth. in a growth-starved world, investors will flock to that. good, old-fashioned value stocks, which had done poorly if you think about it, allocators getting money from the bond flows will want to find good stocks at good valuation since the market is not that cheap. coming in.u for the chief global strategist with lehman. we are "on the markets" again in 30 minutes time. in the meantime, "market makers" starts now. live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> snow day. flights are canceled and the bitter cold in the northeast is upon us. we will find


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