Cut reduction. Production. Police battled prodemocracy protesters in hong kong. Patience is growing thin for the protest. A blow for Prime Minister abbe in japan. The Credit Rating was cut by one level. Is uncertainty about japans plans to increase growth and cut the deficit. The economy make the focus of his campaign. Had aent barack obama series of meetings about the unrest in ferguson, missouri. Black friday fizzled with consumers. Consumers did not spend as much as a year ago. This is according to the National Retail federation. Shoppers were confident enough to skip the initial rush for lower prices. We have breaking news right now. Researchers have just released a report stating that hackers with wall street expertise have stolen mergers and acquisitions data from more than 80 companies over the last year. Olivia sterns has more. Says that areport group of hackers with market expertise have stolen information from more than 80 public companies, more than 100 companies in total were targeted. They appear to have wall street expertise and were specifically working looking for market moving information, correspondence, sec forms. Alleged to be americans who worked on wall street. What they did with the information is not yet clear. That they likely themselves traded on it and profited on it and they most likely sold it as well. More than two thirds of the companies were health care and pharmaceutical companies that were targeted. Those tend to be the focus of insider traders. It is very interesting. A very interesting story. It looks like this could be a whole new wave of insider trading. It certainly does. Thank you so much. We will continue to follow that story for you. Lets get back to our other top stories. Opecsston decision decision not to cut production pushed oil prices through the floor. The ruble weakened almost 4 off the news. Commodities are down across the board. None more so than oil. The current price environment is kind of like a stress test for the oil producers. Is in pain over their budget. Jamie webster said that you have eight out of 12 countries over their budget. That is compared to five over 12 out of 12 the previous three years. Her qatar and kuwait will be able to balance their budgets. They may have to turn to other industries to keep from overreliance on oil. Of global oile prices is limited. Oil supply overall has been rising, even as opecs share has been down versus one year ago. That is your white line. Total oil supply is blue. The is all because of dramatic increase in oil supplies from nonopec countries, notably the United States. It sounded like they were basically targeting the u. S. Oil producers. U. S. Oil producers, at what point do they say that is enough . It is a waiting game, like a game of chicken. Resources has said it will continue to drill and they will continue to profit at well below 70 per barrel. Investors have already discounted ahead. Shares of Continental Resources plunged 20 on friday. Friday was only a half day of trading, which gives you a sense of how quickly investors are abandoning ship. Be estimates that it will six months before Global Oil Prices slow Production Growth. Companies have already invested in the equipment and the drilling and are not just going off thes big it spigot off. Companies really know how to cut cost and they are putting that to work right now. It is better news than what we had thought. Better news for them, at least. Thank you so much. Scarlet fu, our chief markets correspondent. Hour isnd shaking this billionaire investor david einhorn. At Main Hedge FundGreenlight Capital gained 5. 8 last month. For the year, they are up 11 . They invest moakleys mostly in equities. David einhorn said he plans to raise money in november and december. What happened . Nearly 6 million shoppers did not show up over the weekend. Spending over the weekend tumbled 11 . Julie hyman has a rundown of the numbers. We were seeing all of these great deals. Stores were opening early. What happened . Spending down, that is the first number. 50. 9 billion. 11 . If you look at that on the level of the individual shopper, the average shopper spent 6. 4 less. You can also look at it from a traffic perspective. Traffic has been down. That trend appears to have continued. Down 4. 5 . What did happen . The first caveat with these numbers is that they are just an estimate. The chairman of the National Retail federation says, i dont believe that down 11 number. He thinks that is an underestimate of what happened. Realver have actual numbers from the weekend. If you talk to the nrs, they give several Different Reasons why the number looks disappointing. Traffic and spending is more spread out over the holiday season. We saw earlier promotions happen at many retailers. , as they arent trying to look on the bright side of this, maybe the economy is Getting Better so people dont need the deep discounts and they dont want to take the trouble to go to the mall to get the discounts. Monday, which is now starting to sound like a 1990s term, those deals are not expected to be better either, right . We are expected to see an uptick to some extent in the sales. The National Retail federation is not looking at an increase in traffic, they are looking at a slight decrease. Sales were the weekend were up 15 . Ibm said sales were higher. We are looking at estimates. It looks like online is getting a bigger piece of the pie. I thought about you over the weekend. You were saying that black friday not just a u. S. Phenomenon anymore. I went online over the weekend and i did one of the google trend search results for black friday and this is so interesting. In the u. S. , number one. Romania of all places, number two. Apparently that was introduced into the country a few years ago and it is just starting to catch on. Canada, paraguay, jamaica, some of the most popular countries. Maybe they were looking for deals from sites here potentially. Everybody likes a deal. No matter where they are or who they are. [laughter] thank you so much. Lets stay with shopping. Amazon, one of the heavy discounters this weekend, says they are seeing high holiday demand. They are turning to robots for help. Thanhave installed more 15,000 robots to transport goods across where houses. For more on the robots, i want to bring in cory johnson. He is at the Amazon Fulfillment Center in tracy, california. I see you here every year. Tell me about the new fleet. Different a very facility from last year. Year, i was in phoenix at a facility where there were lots of people walking lots of miles. Fulfillment centers because we are supposed to feel fulfilled. This is a robot system that carries a giant cart. They take things that come off a truck. He finds somewhere to stash it, a laser gun tags it with a barcode. Robots know where they put everything and stash it away back here in the catacombs of this facility in tracy, california. It is a very different system than the library like facility at the rest of Amazon Fulfillment Centers. Now, the workers stay in one place. They get through a lot more packages in the course of a shift. They managed to fill up to 70 more in a facility like this. That helps the cost of capital. They are building peas much closer to customers and much closer to urban capitals. We are one hour from sacramento here. Talk to me about shipping costs. It is fairly amazing for amazon. They are spending even more on shipping. 2 billion spent on shipping in the last quarter. Behemoth ofat the their shipping operation, it is a massive money loser. They have lost 3. 9 billion in shipping revenue. They are spending so much more in shipping than the actual cost of that. It is adding up to about 900,000 every hour. This kind of facility is meant to lower that cost and increase the efficacy. Thank you so much. Cory johnson. From tracy, california. Much more ahead. Netflixs 90 million bet. They want to keep building a media empire on marco polo. Fury over brad pitts war movie. Cyber pirates. Viewersixs millions of will get new movies this month. What really counts is this. Marco polo. The new original series, one of the most expensive tv series ever made. At a cost of 90 million. It is just behind the cost of hbos game of thrones. The latest gamble. You have been pretty outspoken that they have a huge amount off their Balance Sheet on acquiring content. Over 4 billion. So what is 90 million . [laughter] it is not just one of the most expensive productions ever in television, 10 million per episode. Why . Because their subscriber growth in the United States has slowed down to a trickle. Around thesion plans world are running into lots of serious complications, payment problems, local competitors, quotas on u. S. Content. You have 15 million subscribers right now, but they need to pump it up to keep the momentum going. Where are they going to pump it up . Marco polo is a genius selection. It has europe, asia. It is historic. This is just pandering to the chinese viewers. Has zero franchise in china. It will reach people in southeast asia, in europe. It will ring a few bells in the United States. Hastings is still acting very much like the king of the media empire. His bravado speak. He was at the conference in where he set about broadcast linear television, he the, it is kind of like horse, it was good until we had the car. I think he is right in principle. He is wrong because it is already happening. 2015 is going to be a real ,ransition for major media particularly broadcast. Congress is going to be looking at the issue of net neutrality. The cable industry is looking at breaking up the chinese menu and offering over the top. You say his 2030 is too long . He is wrong by 10 years. We are in the middle of transition. Next year will be the year that we see erosion of linear television. Sony is the victim of a cyber attack. [laughter] they have lots and lots of problems. This is one that they should have done something about. If cyber crooks can steal 50 million credit cards from home depot, why cant they get half a million copies of brad pitts fury . This is a huge problem for hollywood and any content producer. And other have been some piracyy groups that say costs billions of dollars. 75 billion might sound small to what it really costs. It is a critical problem and it is probably never going to be solved. Cyber criminals stay one jump ahead of the people putting up the security. A guy on talking about all of the credit card scams that have been attacks that have been going on. The Security Companies said, we cant really stop it or read the best we can do is slow it down. Great to see you. Much more on movies. The latest hunger games squared off with a bunch of penguins over the weekend. We will have the box office results. Where will stocks end up for the year . That is next. You are watching in the loop. Good morning. Im betty liu. Here is a look at the top company news. A crucial week in the stock of to caught up takata. They only have until tomorrow to begin a national recall. Hunger games won the box office. It brought in an estimated 163 million over the five day holiday weekend. Penguins of madagascar came in second. It is 26 minutes past the hour. Bloomberg television is on the markets. Oil. Et fu has more on it is time for futures in focus. Oil futures keep heading south. Briefly dipped below 65 per barrel. Isning me now with a look greg bender and todd horwitz. Reactionsaw a dramatic to the opec nondecision essentially. This morning, we are seeing a little bit of a turnaround. You had an interesting Inflection Point on friday. Prices were sitting right at the 70 level. Below there, you had a lot of margin selling. Future straight on margins. When prices go against you, your broker can aggressively sell your position out. Prices got below. ,nstructions to your broker are get me out aggressively. You have speculators and other traders stepping into by a deeply oversold market i n to a deeplyo buy oversold market. We had a blowout to the bottom overnight. Buy with a trade up to 70. That 70 was a great support level. Toant to buy with a trade up 70. I have no idea where we are trading now, but 65 to 66, i am a buyer trading up to 70. I am looking to sell at 70 and ride it all the way back down. I think we are going much lower than we are right now. Right now, it is trading at about 66 per barrel. You said you would be a buyer of oil at around 55 per barrel. You do expected to go to 70. Oil trades and contracts of 1000 barrels. Trade. E 5,000 on your greg, are you expecting that oil will continue to be volatile over the next four days . When you have different players active in the market, not just your regular physical you have speculating, you have stop orders and margin selling going on, when you have news hitting the tape, this downtrend has been going on since september. It is strong new participants to the market. Options volatility is high. Does that bleed over to other parts of the market . Whether it affects other asset classes. I want to get to our word of the week. We often hear the word dominant. The dominant futures contract is the one with the highest open interest, so generally the most liquid. Involve little markets, you want to make sure you are trading for most dominant or most liquid future. Otherwise you cannot get out when you need to. Thank you. Will be back on the markets once again in 30 minutes. You so much. Scarlet fu, our chief markets correspondent. While oil is plunging, stocks are trading near record highs. Where will stocks end the year . Mike, you talked with some of and most accurate forecasters. What do they say . They predicted 75. We are pretty close to that right now. Both are pretty bullish for 2015. We have seen a healing in the economy, the healing is not over. In this market is enough to keep it higher until you hear. There are a lot of Fund Managers trailing benchmarks. They are inclined to try to keep keepth the rally buy to up with the rally. On december,ly what have we seen historically . Historically, it has been a great uptick in stocks. Even in 2008. An average gain of more than 2. 2 . Datever you dated from it from, it is always the strongest for the standard and the 500. It is up about three quarters of the time for that month. People get yearend bonuses. Tend to shape up their portfolios for the next year. Told me politics columns down in december and geopolitical issues come down. What about oil . This has been unexpected. Oil dropping is generally considered a bullish thing for the economy. That was not as much of a nobrainer this time. The Energy Industry in this country has grown so much in the last few years. Could this have a negative impact on the stock market . Energy companies are in a bear market down 20 . The rest of the market has kept the rally going. Andss it gets even worse there are a lot of unforeseen circumstances then we will see. There is potential damage to begun be done, but so far, so good. Thank you so much. It looks like cyber monday sales after black friday was a bust, we will be speaking to pablum rodriguez and why apparel did route well. If you are looking to so support to support the new york jets, you could be looking at a record low price. Stay with us. 120 7 million. That is how many people are expected to shop online for cyber monday. That is down 4 million shoppers from last year. Are taking advantage of earlier and longer sales promotions this year. Cyber monday is not that big of a deal anymore. Maybe we should just get rid of it . When is it not cyber monday . With sales predictions not looking that great and black friday spending down, are americans falling out of love with a big, fat deal . You have crunched the numbers. You have seen what people were doing, particularly through their mobile phones. , was it were seeing consistent with what the National Retail federation is reporting . Mobile is on the rise. Declaredisclaim that the Holiday Shopping season started on september 30. We are seeing merchants bring more offers before black friday, even into thanksgiving. We crunched some of the numbers in terms of mobile shopping. It is on the rise. Euro for year, we saw a 62 increase in mobile shopping, as compared to last year. On thanksgiving, it was 47 . Is that faster than last year . It is. It is a complete uptick as consumers are looking for convenience. We saw that the most usage of mobile device shopping was in chicago, second was in houston, third was in los angeles. This is the first time we wanted to look at that. On theire staying couches, asking their kids at the thanksgiving meal, and then getting what they want online. We look at the data in spikes on mobile shopping. 4 00 and 5 00 p. M. Eastern on each of those days was the uptick. I thought it was going to see a different take on those. What is magical about that hour . I think it is that people are done with the thanksgiving meal, they are online, they are shopping. It is something that is a new. Ccurrence what are you finding people are buying on their mobile phones . Is it different than what people are doing on their computer . The number one piece was apparel and jewelry, followed by electronics. This is a crossborder trading story. Merchants here in the u. S. Are enticing overseas consumers with things like Free Exchange and free shipping. Did you find that quite a few people were on their mobile phones outside of the u. S. . We did. Those were global numbers as well. Regardless of in the states are internationally, consumers are shopping when and where they want. A good deal is a good deal whether you are in the philippines are the u. K. Or wherever. There is another number out that i thought was interesting. The amount of money that was spent per shopper fell by 6 to 380. I dont know if you are crunching numbers on your platform as well. Did the amount of people were spending shrank . Or did it grow . We looked at the volume and we looked at the number of shoppers. The number of shoppers increased. We will continue to look at those numbers. When we looked at the number of shoppers on mobile devices, on thanksgiving and black friday, we saw those numbers increase. We will look at numbers today as well. Earlier, it is not cyber monday anymore, it is cyber month. I feel so old. [laughter] the 1990 prosperity lets stop using the term. Going into december, what is going to happen . I think we are going to carry the momentum. It was interesting to see some of the photos. Some of the consumers in the where shopping on their phones at the same time. More detail this month, but when will they want and that is what mobile does. It is both exciting and a little bit scary at the same time for retailers. You have a much more informed consumer. Thank you so much. Thank you. Coming, chinese entertainment and retail group tries to keep up with hollywood. They are making a bid for lions gate. A big interview coming up tomorrow. The one and only staying. Sting. We will be talking to him tomorrow. Another star producer is joining us to tell us how difficult it is to bring home a showstopping hit on broadway. Tomorrow, a big interview you dont want to miss. Sting is joining us. We will be sitting down with the rock legend and talking about his latest project, the Broadway Musical the last ship. He will be joining the cast of the musical he created. It is struggling to win ticket sales. Is losingllion show 75,000 per week. To look at how hard it is to launch a Broadway Musical. Great to see you, ted. Sting tond of hope for conquer profit. What is going on . Broadway. What is going on . Misery victory of broadway is how do i our critics and audiences alike the mystery do you appeal how to critics and audiences alike . That sting hast admitted this is an autobiographical story and has been singing some of the songs, he feels a close connection to the peace. Canim coming into the show raise the whole profile of the show, i think it will be good for everybody. Itll must ask the question, why he didnt think of that in the first place. To do eight shows per week is not what you are used to as a rock performer. Im sure he did not necessarily love that idea. When you are putting together a new musical, that is a lot of work. There are fixes that have to be made all the time. Changes, new songs, songs deleted. You have to work well with your collaborators. Putting on a Broadway Musical is a major undertaking and for the first time out as a composerlyricist, better that he was looking at it. [laughter] there are those who have tried. I love the idea of him going into it. Is that it will create a higher profile for the whole show. Some are saying that people will buy tickets who would not have bought tickets before. That is probably true. May be a younger audience . Yes. Interesting to see if this thing fans the sting fans who see will go plunk. Own money for a broadway show is a difficult to do it . It is difficult if you dont hit it big. Expenses for a Broadway Musical is about 600,000. If you dont bring 600,000 at the box office, you know you are in trouble. In the case of spiderman, their weekly breakeven was over 1 million. They had to gross 1 million plus to just pay the bills. That is where gets tricky. If you are the book of mormon or you can send every weekend for years and you sell every ticket in the place, there is money to be made. Week, is 75,000 per that actually relatively speaking pretty descent . It is tricky. Whatever the capitalization, the initial capitalization, the company that is formed to produce it on broadway, if you are a smart producer and the last ship has very several several very smart producers, you will bring in a cushion. Im sure the conversation has been about the margin. A 75,000 goes to 15,000 and then moves across, you are in good shape. Are in000 dollars, you trouble. The audience was generally older. I walked outside and everybody was generally older. Upnt to see the lash couple of weeks ago. A couple ofship weeks ago. Broadway has always looked for a younger audience, but it is a tricky grab with the ticket prices. Lottery forave a inexpensive tickets in the front row or other places in the theater. Nobody has the magic solution to getting a younger audience in. You have to do shows you think will appeal. It is not the kiddies. It is the age group of my kids who are just starting to go on their own and what can and ties them . I have said, go to the box office with your student ids, show your student ids. Once the curtain goes up, they are not selling the tickets. Usually, you can get some sort of deal. With your own shows, do you find that you are having to use different ways to market . Are you using other marketing techniques . All broadway shows have to keep up with various marketing techniques. Rodgers and Hammerstein Cinderella has used extraordinary techniques through either land on holidays or announce new people coming in the cast. It is interesting to see the kind of mailers and email blasts and things like that. You have to be on top of that or you are sunk. Will just hope it roll out. That is a few years back. Great to see you. Thank you so much. Be sure to join me tomorrow for my conversation with sting. Much more ahead. Speaking of entertainment, and other problem. Hackers. Sonys Holiday Box Office sales are at risk after fury was stolen by hackers and leaked online. Is back to work for congress. Lameduck lawmakers returning to capitol hill with plenty of work and not much time to get anything done. We are 30 minutes away from the opening bell. Decliningures are being dragged down by concerns of a plunging oil price. They are down to five year lows. We are on the markets again in 30 minutes. Coming up, Holiday Shopping season is here. Is a car on your Shopping List . Automakers are hoping to entice shoppers. Are the deals going to work . Atare going to take a look how low Oil Prices May go. You are watching in the loop. Welcome back to in the loop. Futures indicate stocks will open lower. In november. 2. 5 it has been quite a rally in stocks. Low. Itting a 5. 5 year to 65 per barrel before rallying back. How much further will oil go . From a technical point of view, somewhere around 50 will be about as low as it will go. I will not be surprised if the bottoms out. In november. 8 Vladimir Putin is in turkey for a state visit. The two countries disagree over syria and the war there. But turkey is dependent on russian gas. Moodys cut japans Credit Rating. Firm says there is uncertainty about japans ability to reduce its deficit and boost growth. Black friday appears to have fizzled with consumers. Spending dropped 11 from one year ago. Shoppers were confident enough to skip the initial rush for lower prices. That is the positive spin. To the openyou down with the top 10 headlines fitting our radar before the valve. Sterns fu and olivia joining me. Good weekend . Yes. Cyber monday. Girl scouts are selling cookies online for the first time. Digital Cookie Initiative will ly 800 millionar in annual sales. Go girls. [laughter] the tradition of selling cookies at your office by bringing your daughter and will not go away. It will be on the channel channel selling. There you go. Building survival skills among girls and this is great that they are building web building skills, ecommerce marketing skills. What took them so long . Everybody has an app. Theyve been building at themselves. [laughter] Chinese Holding Company wanda group making a bid for lionsgate entertainment. They already control and see. Amc. Has also held discussions about investing in mgm, which is also the independent producer of the james bond franchise. Back in august, wanda group said they were going to invest so they could hold meetings and be more involved with hollywood. There was a meeting between the chairman and the chairman of lions gate. No word on what was discussed. Apparently, they have been talking to lions gate and lions gate only wants to sell a minority stake. You see some kind of synergy of owning the physical cinema chains and owning the media as well. Maybe we will get some kind of experiential play. You will the hunger games in some special location. It is also bizarre timing. After hunger games, what does lions gate have left . 7 . Hunger games wanda group needs to change their name if they want to be trendy in hollywood. [laughter] fury has been a hit, but not at the box office. The movie was stolen in a cyber sony film studios. It has been downloaded 500,000 times from one service alone. Shame on sony. It is a hit in the online piracy world. They would be disappointed if it had not been a hit. It is a leading indicator. I was surprised that annie was on the list. Annieet audience of knows how. Because they are old . Because they are young girls. Im sorry. Im thinking of annie from my day. [laughter] a remake. If they were trying to send a message. There are reports that north korea might be behind it. I heard the executives that on film studio got a gop their screen. Apparently guardians of peace saying they are going to release data unless undisclosed demands were met. Called thea movie interview. About a cia plot to kill kim jongun. It doesnt even look like him. If you think hollywood films are expensive to make, the trend is moving to tv. Netflix will plan to launch a 90 million series, 10 million per episode, called marco polo. If you are right, i think it is pandering in many ways to an audience. To chinese audiences around the world. Internationalthe rights to this series, where it does not do it for house of cards. It showed how morally bankrupt and corrupt american lawmakers are. [laughter] did you see waterworld . It was the most expensive, biggest flop ever. Me of that. Reminds is in a dangerous to come out with a huge budget for a totally untested series . It has adventure and violence. It has gratuitous sex and violence. It is game of thrones in a different location. [laughter] i am waiting for orange is the new black number three. We need to see olivia and it. In it. At number six, jets versus dolphins. Guess a much these tickets are . 11. The face value of these tickets is 66. Nobody wants to see these guys. The jets. Giants would be lucky to get 10 per ticket after last nights game. It is ugly at metlife stadium. The nfl must be hitting themselves over the way the schedule has panned out. This is a monday night football game. Who is going to tune in . You have little boys. Could you really bring them to a game at 8 30 p. M. . No way. If you always wanted to see a game at metlife stadium, show up. Im going to, hom at all area in and ask them how many tickets he might want to buy mohammed all area and and ask them how many tickets he might want to buy. Jumping on the black friday bandwagon. Auto sale numbers are speeding up. We continue to count down. Time for our deep dive on auto sales. Automakers are jumping on the bandwagon for black friday. Tempting deals to leeward and consumers. 299 per month lease. Can you believe that . Here to discuss is ed niedermayer. When did black friday become such a begin for automakers . In the last couple of years, ande has been a huge uptick this is going to continue. The car market is being driven by credit expansion. The credit deals continue to be important. Is this discounting we have , is that does going to push sales from november into december . Some. Could pull what isrs happening is that cars are being discounted of certain models. You are seeing money coming off the cars themselves. How are they going to keep their margins . That is the question. Right. How do they preserve their margins amid all of this . Who is offering the best deals . I think the companies that have the biggest inventory issues are offering the biggest deals. Gm with the buick and cadillac lines, they are offering incredibly good deals on some of their models. Look for the slower selling of the brands with bigger inventories. We are going to get auto sales out. Up to 1. 2 8 million vehicles. Is there a chance we could exceed that . There is certainly a chance. Oil prices could have stimulated prices in the short term. We will see for tomorrow. Is underr note, takata pressure with the faulty airbags and this recall. They are supposed to be issuing today their formal response. There is a hearing on wednesday. What would be likely to hear from to caught a takata . I dont know that they have any real good answers for us right now. This is a big mess that cuts across a lot of manufacturers out there. Already, we have seen chrysler and honda get pulled into this. I think there will be more manufacturers getting pulled into this. I dont know how high the stakes are for taktata. Andink that as you see more more manufacturers getting pulled into the mess because they are part of the problem, i think that is where you are going to see some of the impact of this. What are the next steps . I think they are looking to address the problems before they become as big as they have. Honestly dont know how much a regulator can really do about some of these problems, given the fact that the company themselves are not able to find them before people start dying. They are going to have a real problem on their hands. Their budget is not well allocated given the importance of the investigative duties. More money for investigative duties is definitely part of the solution. Really think, i this is something that the Auto Industry has to work through on its own. I think regulatory pressure can be ramped up, but automakers have to figure out these kinds of quality problems before we can get to this kind of autonomous future that people are talking about. If quality is not good when cars start driving themselves, these companies are going to have real problems. Real problems indeed. Ed niedermayer. Much more ahead. The black friday weekend, as we have been telling you, was a bust. Where shoppers just waiting for bargains today . Some wall street veterans taking their talent to the cyber world. According to one research firm, hackers with financing backgrounds are moving online to help disclose Company Secrets surrounding m a. Welcome back. Lets get back to the most important stories. Scarlet fu and Olivia Sterns turning me joining me. Congress is back at work. Their holiday break. They have less than two weeks to figure out how to keep the government funded as the white house and government republicans continue to fight over immigration reform. This was supposed to be the easy one. This was supposed to be the one without a showdown. After president obama went ahead with executive action on immigration, many conservatives are promising to oppose anything he puts forward, even if it is a consensus stopgap. Republicans are not all on the same page. They cannot agree among themselves. They want decide on a strategy until they convene tomorrow. Toexpect some talking points come out after that. Some jawboning about what kind of action. What is the best Case Scenario . That we pass something that keeps spending levels at this level . If we pass something that gets us into the end of this fiscal year, republicans would like to go into 2015 to be up to start on their agenda and approve that they can pass legislation. Now that elections have , hopefully they will get something done. Resistance is shortterm continuing resolution. Packers with wall street expertise have stolen and monday data. M a thisa, i know you broke story earlier this morning. This might be another way for insider trading. Exactly. This could be a new wave of insider trading. We could also have an accompanied crackdown. Is said toof hackers have stolen information about m plus deals from 80 companies. They checked people, executives, lawyers, consultants, they tricked them into providing access to confidential data to try to figure out when deals were going to figure out. Two thirds of the companies were pharma and health care deals. They did not infect malware, instead they stole email logins and logged in as phony people. They also think it is wall street alums because they are familiar with the investment terms. They think they are americans who worked on wall street. Not clear what they did with the information. Did they trade on it themselves or sell it to third parties . A disappointing start to the Holiday Shopping season. According to the National Retail federation, spending over the weekend tumbled 11 . Fewer people are expected to shop even today online. A great piece on this saying that the nrf has a terrible track record. It is based on surveys asking people what did you spend this year versus last year. Most people cannot recall what they spent last year. Are you saying this is an underestimation . He said they are always overly optimistic with the forecast. Says herman of the nrf does not believe the 11 drop numbers either. He is the chairman and he does not believe his own statement . He said they probably overestimated the decline because they are very anecdotal. He thinks the actual numbers are probably in the single digits. There is also a great story today arguing that cyber monday might not be that important of an indicator this morning because it used to be relevant because that is when people came to work to shop. And now you can do it on your phone. Ok. We are nearing the opening bell. Bloomberg television is on the markets. We are lower on this monday morning. Welcome back to in the loop. Number one. Oil prices plunging down to a 5. 5 year low. Dragging down other commodities. Are hurting. This is becoming a pretty big shock. Everyone is wondering when the u. S. Companies will start throwing in the towel and say, i cant do this anymore. In terms of what companies are saying, they are saying that they are sticking with the opportunity to drill, but Smaller Companies are overleveraged. Parts of oklahoma that have not been doing as well. They may be the first to say that is it. Producershe smaller are highly leveraged. Any further drop in prices is going to become breakeven or even at a breakeven point, they cannot afford that level. Their debt may not be due for a couple years. They may be ok for now. If you look at the car rent Current Oil Prices when the debt is due, it we are back up to 80 per barrel. 80 is still below the 100 plus we were at this summer. We are at the open or will be at the moment. Stocks are falling back in little bit this morning. At least for equity futures. It looks like we will be dragged down a little bit by oil prices despite the fact that we have seen a rise in equities, despite the oil crashing lately. How much longer can this rally hold with rice is declining like interestingt is an question. Declining oil prices puts money in the consumers pocket. The rule of thumb is a 10 decrease in the price of Oil Per Barrel at about half a percentage point to global gdp growth. Lower oil prices are good for everybody. You said it is tough to find good ideas and it would have been nice to have a bigger window to invest in that downdraft. Is it time to consider picking up a couple of these Energy Stocks . Continental resources plunged friday on three times the months trading average. You really do need to be above to forecast oil prices. That is something very few people have expertise in. Unless this is something you pretty much spend your life doing, understanding the , this is really an area where most investors are better served by chevron, exxon, or even bp. Falling oil prices is pretty much good for everyone except for the energy sector. A cannot diminish how much source of Growth Energy companies have been in terms of investment capital. Also given what is going on in emerging markets for some of these oil exporting companys oil exporting countries, this could turn into a pretty big problem for them. Weve seen the ruble fall about 4 overnight. There are some side effects that could catapult into a bigger effect for the overall it economy. Concentrated pain, diffuse game. A roughneck in oklahoma, this is bad. If you are putin and propped up on the back of oil prices, this is bad. World are note located in exporting oil countries. Most of us consume it and do not produce it. You have lots of people, lots of companies that will have a little bit more money in their pocket. That is harder to get a headline out of them Continental Resources or russia that is heavily dependent on oil prices. You make a good point here, witches oil prices declining is the first leg. Energy and gas, 20 capex in your 20 capex here in the u. S. The bloomberg u. S. Airline index is up 50 since the start of the year. At some point some of those stocks look a little expensive. Are you interested in bed in buying Airline Stocks . Frankly i have never been interested. Probably one of the Worst Industries in the world. This is currently nirvana for airlines. If have low Interest Rates and cheap fuel. Is kind ofe this an absolute gold mine for airlines right now. If you do want to buy airlines, i think the place to look is easy jets in europe. The lowcost carriers have a lower level of penetration and there is a lot more share at stake in germany and france, travel is more dense. Shorter routes are more profitable for airlines. You have a lot of legacy carriers propped up by governments in europe. In thenot been the case u. S. , which has a lot of room to high costs arent sustainable in the face of increased competition. Itts where i would look if is a space interested in play. Facing a strike now as we speak. Thank you so much. Pat dorsey, the chief investment strategist with captivas trust. We are going to continue our drill down into oil. Will discuss with the editor of the short report, who is bearish. And the tweet heard around the world. Mogulu see this media Rupert Murdoch getting into it over a movie casting controversy. We have the details. Take a look at this tale of two markets. Oil plummeting 20 this past month. On the white line, the s p has long. Allying all year some economists warned this will not last after oil fell below 65 dollars per barrel. Many speculate this could cause Oil Companies to rethink their capital investments, which has driver of economic growth. Joining us now i want to bring in stephen short, a technical analyst. Also Erik Schatzker is taking a deep dive into oil prices with several guests on his show, coming up at the top of the hour. Are pretty much bearish across the board on oil, gas, and several other commodities. At ist we have to look where we were at the beginning of the summer. We had a lot of supply concerns in terms of living reduction. Also of courts the threat isis posed in iraq. We get through the summer driving season and we never lost those barrels from iraq. Back up touction is one Million Barrels per day. What has changed between now and then . Decent chili it is concerns of the Global Economy. Japan is in recession. The properties plummeted in china. And germany are on the cusp of recession. It would only look like the United States is the only Strong Economy on the globe right now. We were just having a debate about this. Abovesee Oil Prices Stay or even go lower, isnt that going to be a positive for the Global Economy . Dont believe oil prices are a lagging indicator. They are a leading indicator. If we are having a tremendous pullback in price, oil below 70 , this is certainly an omen of potential bad things to come. A lack of demand in the market, too much supply, what does this tell us about the economy . At 70 or less, how long does it take before we of oilrop in the growth production and how long before we see a drop in production out we are well on our way there. They were cutting back productions. Assumed that oil between 70 and 75 is your economic break even for most of north american production. Are oil well below that we going to see significant holdback in capex production now going into the winter and into the spring. Concern is the lack of investment this is going to encourage with regard to production elsewhere around the globe. There is a reason why markets are selfcorrecting. Low prices are the best cure for low prices and the producers are going to respond to oil at this level. How do the independent producers define break even . Howdy how do you define it when analyzing production . Is it just the cost of production . Do you factor in asset replacement and the cost of capital . Cost of capital is the biggest concern. This has been the biggest concern in the past 10 years with the manipulation of yields. A lot of companies dont know what the cost is. You create artificial demand. A lot of these independents are heavily leveraged in this production. Certainly that is going to be a big factor in how much production is held back over this winter and into the spring. There are already investors feeling the pain of this decline. Was a story that ran over the weekend about the mat about the Hedge Fund Management firm. They were a 70 million commodity fund. So they closed that down. I know you are going to have several guests talking about this investment and how that is hurting them. What are you hearing . At the oilooking price from two angles. Heavily Oil Dependent countries. All that oil is supposed to go into the keystone pipeline. It is facing some serious budgetary concerns. That is one angle we are going to look at. Long does it take before we see a material contraction in u. S. Oil Production Growth and perhaps a drop . In the 11 00 hour, jeff curry. Last month he made a call that oil for the next six months will be 75 per barrel. Talking, how much lower can it go . It doesnt look like the brakes are on just yet. Stephen, thank you so much for joining us. Editor of the short report. And Erik Schatzker from Market Makers taking a deep dive into oil on his program. Here is a look at the top tech stories this morning. After all the speculation there will be no shakeup at the top of samsung electronics. Samsung keeping its leaders. The company just posted smallest profit in three years. It a spaceport strong ship. Will land the latest version of its reusable rocket on this floating platform. And the movie coming under fire for having white, nonegyptian actors. What does Rupert Murdoch do . Heat tweeted critics we critics read tweeted his comments thousands of times. He said catch all the latest in tech and media every day between one and. P. M. Eastern time hackers have been stealing m a data for more than a year. More on those incredible findings next. Hackers are testing the Financial Systems cyber defenses. Asearchers have uncovered group of hackers who have been stealing m a data from more than 80 companies for more than a year. Bloomberg neat bloomberg legal News Reporter wrote the story and joins us from d. C. What do we know about this group and who is behind these attacks . Often when you see a big hack of the Financial System it goes back to russian or northeastern hackers. It might be americans. They seem to have a huge command over the way wall street works, exactly the kinds of things you would go after if you wanted to manipulate the market. They also speak english perfectly. They send out phishing emails that make it feel more american. That sounds much more ominous as well. Certainly a new group of perpetrators we hadnt looked at before. For insiderdicate trading that hacking is the new black when it comes to doing this . Iswhat we have seen prosecutors have really cracked down on all kinds of insider trading. There were a series of cases that involved old fashion ways of scraping information through connections and network. This may be one way in which you replace that. You could get sensitive m a information. You can target the right officials. You can do it in a way that makes it much much harder for the fbi to trade. They couldnt discount the information that was being sold and wasnt being handed over to some entity like a hedge fund. Perhaps is there anyone pointing to some collusion within these companies as well . It does seem like one possible target for this kind of information would be some of the people involved in the deals. It could be possible they are doing this to see the other sides hand. Is thing this does show hacking, which is a way to get raw insider thoughts from lawyers, from executives, is a great way to spy on your competitors or to gather data you could use to trade off of. A great way but certainly illegal. That is absolutely right. Sony another front, pointing possibly to North Koreans behind the piracy of their movie. There is a lot of intrigue with this one. There is discussion about whether this may be a shakedown. They have given sony some demands about what they want, if they want their information back. Mightssibility is there be a hidden hand of north korea behind us. Background sources are looking at this possibility. One movie that has yet to be released created quite a fuss among North Koreans. They called it an act of war. There is one possibility that this could be there could be a lot more intrigue than meets the eye. Mike riley reporting from washington. That does it for today. The 16 time grammy award winner the Broadway Musical the last ship. Can he hit all the right notes . So miss my interview tomorrow at 8 a. M. Eastern time. Bloomberg televisions on the markets. We are 30 minutes into the start of the u. S. Trading day. Lets get you caught up on how stocks are trading this morning. A slowdown in chinese manufacturing weighing on risky assets. Also a tropical 11 . Crude oil after finding a bottom. It did below 55, which is the lowest in five and a half years. The ruble weakening. That is the u. S. Dollar strengthening. Market, loweran bond yields. Now at 2. 61 . Gainings seem to be more confidence that yields are going to stay low for a very long time. They are still the safest government debt. Is lisabreak it down abramowicz. What has changed. People are holding back the expectations of what surprised there could be with the upside to inflation or growth. The focus is on oil prices. This has been a huge story. As Oil Prices Decline you have two factors. Inflation outlook deteriorates. Also you have to expect the reason why oil prices are declining is because growth is not accelerating enough. Bearish on growth and good for bonds. Both of those things are playing into peoples calculus. Are saying, lets go buy bonds. They do not see it is going to change anytime soon. Are we types of debt losing out in the month of number member of november . You have energy debts, lost 3 . Venezuela lost almost 13 in one month. U. S. High generally lost about 1 . Speculativemore debt that has vulnerability to slower growth. It is a bifurcated market. What are trading investors saying about how things will play out as we head out . People are watching the European Central bank. You have that dynamic playing into everything as well where you have european policy makers saying we need to stimulate the economy more. We started a round of debt purchases. That is also playing into yields in europe. Does look at europe and says yield is so low there it is going to keep a lid on yields in the u. S. As well. Prices, looking at oil is the stabilization real or is there room to fall . Still expect the 10 year yield to end at 2. 65 . That has come down a lot. They still expected to rise. It is 2. 61 . It can move very quickly. Thank you so much. Marketsbe back on the in 30 minutes. Market makers is up next. Live from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and stephanie ruhle. To be battered by the shockwaves . This will be a survival of the fittest. , will cyber monday be any better . We will talk about that talk with the head of ecommerce. You may start paying more for your habit. Farmers arent making enough to grow cocoa. This is Market Makers. I am Erik Schatzker