Author of the prize. You wont have the maneuverability that he has had. His basic argan has been that he will deliver up at her economy and hes delivered a lot that her economy. Of theof the founders prodemocracy protests in hong kong said its time to give up. The government has refused to mans. Students say they are going on a hunger strike. Congressional aides have learned that criticizing president obamas daughters is not a good idea. It began last wednesday with the thanksgiving tradition, the president pardoning a turkey. Melia and syosset were there. They were looking like teenage girls. They were looking toward. Thats enough the aid to a tennessee august with. She wrote that the daughters should try showing a little class and dress like they deserve respect and not a spot at the bar. She resigned. Internet shopping sales rose 8 yesterday. That is less than half the growth rate of a year ago. That may start with the earlier. Tart to shopping season i amazon and others were offering deals. Chrysler is just that with their november sales, they are up 20. 1 . That is above estimates were at 60. 9 for november. Matt miller is at the news desk. We did get again of 20. 1 . We were looking for 15. 9 . Better than the median expectations, Brian Johnson at barclays added at a 20 aint. He was spot on. Jeep rane sales of the the continue to do well. They are up 27 . It was the best november ever for jeep. It was a best november overall since 2001. We had a really great month for car sales. We are going to look and see if this november will be a better november industry l wide for car sales. They did well with the chrysler 200. They sold one half times more than they did this time last year. This was the 56th consecutive month of consecutive sales gains for the chrysler group. I know we are going to get gm and ford embers numbers and about 90 minutes. Oil prices are falling again today. There was a brief respite yesterday. Said lower prices will be good at for the global economy. It will add to gdp. That is little comfort to some of the Energy Companies that are getting hard hit i lower prices. Scarlet fu has a look at who is suffering of the most. All the Energy Companies and oil service providers, the lower the price of oil, the less economical it is for them. They have large builtin costs. The less demand for a quick of the goes along with that, this is bad news. This is a reduction in spending taking place. Expect shake it in the industry. We are going to get some Companies Going out of business. Its going to lead to a potentially slower rate of growth. Months,next six investments are going to be baked in. Three years out, we might see a shortfall. Thatll take time before investment comes home. Investors are placing their bets here and you only have to work at the worst performers in the s p 500 since oil began falling. A lot of them are these Traditional OilService Companies like halliburton or neighbors industries. They are down by almost 50 . Credit analysts say watch out for these Service Companies. Beforeok at total debt earnings. This helps you determine how years will be required to pay back the debt. It is alarming when that rate goes over 3. Neighbor is getting close. Halliburton is doing better. Its not just the Oil Companies here in hedge funds are down. Reduced spending is step one of cash conservation. Next. They may be holding off on the dividends. They are looking ahead to more m a. Weve already seen them add purchases. There is going to be more divestment in the industry. Thank you so much. Moving on to a shocking report from Cyber Security firm silence. A twoyear long investigation deals with evidence that iranian companiesmed at 50 around the world. The hackers infiltrated chemical companies, defense contractors, universities, Energy Companies, and transportation providers. With me this mornings stuart mcclure. Michael reillys who focuses on cybercrime for us. But start with you on this study. Who are these hackers in iran . You can never really know exactly who is behind the keyboard. You can certainly see a lot of anecdotal evidence and personal evidence that they are coming straight out of iran or other infrastructure around the world from iran and usually it is in terror on. If it looks like a duck and walks like a duck, it ready much is. Iranian government has been backing these groups for long time. Us, weve been tracking these groups for many, many years. The first evidence of this kind of attack started back in 2007. The last two years it has really picked up. You were just alluded to my question, if this is statesponsored or not. Do we know what they have gathered and who would be the biggest targets . We do from our perspective. We tracked over 50 different victims around the globe. They are all Critical Infrastructure companies. They are companies that are in charge of our life and our power and our presentation transportation systems. Why is the question. They are going after control of these Critical Infrastructure companies. They have burned themselves inside these organizations at some of the deepest levels. Why, we dont know. We can speculate. They do like to have negotiating power. It might be something more. Mike, let me bring you in a. The industries they are targeting, airlines, airports, utility companies, energy how might they leverage this information . Its an adjusting report. We know about Russian Hackers and chinese hackers from a series of reports. This the first it feels act what iranian Cyber Espionage looks like. They are going after airlines and airports and thats interesting. They could get into systems that andude Cargo Handling passenger manifests. They could get into Security Systems that allow them to impersonate airport workers because they can print out fake badges. You have to think about Cyber Espionage as an intelligence espionage in cases like this. It could be used for lots of reasons. They may not needed for their own reasons. They may give it to allies or proxies. There is intelligence relationships between iran and north korea. This could be something that they are swapping. Some of these things are bone chilling. It is. I just want to list some of the companies and i know are listed in the report. Korean airlines, pakistan airlines, others. Do we know what the response is . What has been the response so far by these companies . Them governments selves . We dont name any victims inside the report. Evidence of starting to come out about them. It really depends on the organization. A lot of people like to put their head in the sand and not really deal with it. Hackerkes the job of the far easier. Nobody has identified them or call them out and slapped them. It is unfortunate, but that is the way of the world. People dont know how to defend themselves from these kind of attacks. They just ignore them until he gets brought up into a fire in front of their face. Thank you so much for joining us, both of you. Moving and shaking this hour, stinger. You might say that every little thing he does is magic. His latest project is a Broadway Musical called the last ship. He is jumping into play one of the lead roles. I spoke with him about that. I was interested in taylor swifts stand. I thought it was a brave stand. She also brought it into the public debate. That was good. People need to talk about this. What is good for music . Music is important to our society. It must not die out or it it is a vibrant part of society. I am in a situation where i have to work. Its a difficult situation and i am prepared to do the work. If that means going into the play, thats what i will do. Bring you much more of my sitdown interview with staying at coming up next. That is music from its things broadway show the latest ship. Is doingrs old, sting what a lot of his ambitious peers are doing. They are embarking on new careers. The show had not been a big success yet read he announced that he will join the cast on december 9 to boost ticket sales. As he told me, working on broadway was worth the risk to his career. I have chosen the most difficult thing you can do on broadway. A musical, and an original musical. Most musicals are based on preexisting robberies, properties, a movie or something everyone knows. A storyentirely new, that is completely fresh and that is the most difficult thing you can do on broadway. I knew that going in. So satisfying to fight this battle. Once we get people in the theater, we win the battle did people stand up and applaud. Its very emotional. The perception outside is different. What is this about . Its set in a shipyard . Musical . A jukebox we are fighting to change peoples perception outside. Once we are in, we have them. My job is to invite people in and tell them they are going to have a great time. Its a wonderful musical. Has it been a nailbiting experience . It still is great we are trying to keep the ship afloat. Every day is a new surprise. We had a stellar week last week at the box office. I announced i was going into the play. That was a surprise for me. I did not anticipate this. Keepver it takes to the should afloat, i will do. I am an join the struggle. That . T triggered looking at the ticket sales . We are fighting the same battle on broadway here in have the same kind of figures. We have a secret weapon, which is me. I announced it and we took a stellar Box Office Last week here and that is clearly working. What is stellar . Can you say . We did 3 million in a week. That was a more than 50 rise. That is good. How come you didnt do that in the first place . That was not my intention. I was happy with it without me in it. This is something they will enjoy. I hope that bike going into it for five weeks, we will reach a tipping point. Word is very good, but wordofmouth is slow. To tell you to see it before you decide. Maybe 50,000 extra people will see it and then wordofmouth will take us to the Promised Land of survival. I look at you and you have had an amazing career. For you to go out again and risk your reputation one more time, why . Nothing of value is avoiding risk. I enjoy the risk. I am not risking my life. Risk withays taken artistic decisions i have made, whether its the music i play or the way i present myself as an adult. I am a 63yearold man. I am not pretending that i am a kid. A a 63yearold man with 23yearold body. And a 14yearold mind. It is exciting for me to do things that are difficult and. Hen succeed, we hope you rea i have a good track record. I went to see the last ship. It was good. Thead through some of the inner critics and what they said about the show. Most of them were big fans. The New York Times wrote a nice review. , theyrt of it struck me seem to all really like the music. To go fromhard contemporary rock music to a score for a musical. Its a different thing. My idea was not to write a rock n roll musical. It was to write a more traditional score that was rooted in the fall music of my area and a tip of the hat to musical theater. Been richardldve rogers. As a child i listen to all of the rodgers and hammerstein musicals. Augmented chords from richard rogers. We steal from the best. This is a more oldfashioned musical than something rock n roll. The New York Times said that for all the haunting beauty of the score, it often feels dramatically landlocked. I think critics are desperate to find a ship metaphor. There is no logic to that. It doesnt make any sense. We will have much more from sting later in the hour. You are watching in the loop five. We have more company news. A big takeover in insurance industry. Has decided to buy friends life are in china will cut 250 jobs in an efficiency move. This will come from the merchandising unit area they are trying to raise standards in china. The next generation of google glass will have intel inside. They will be made by texas instruments. Intel has been trying to grab a foot wall in the wearable device market. We are on the markets. What a walkie market it was yesterday and apple tumbled in the first halfhour and did recover. The markets seem calmer today. You have equity futures starting off near the record highs again despite continued tumbles in the commodities market like oil. We are on the markets again in 30 minutes. Speaking of google, the tech giant is one step closer to rolling out its superfast internet in tennessee. They have filed for a franchise authorities to death desk certificate certificate. They may be using this opportunity to get out ahead of potential competition in nashville. They are affected by at ts decision to pause investment following the call to reclassify the internet as utility. Joining us now to bring us up to speed on the Net Neutrality anate is the ceo of organization that represents manufacturers and suppliers of hightech munication networks. It is great to see you this morning. This seems like a crafty move by google. Sure. It perfect sense. They are different from other Internet Service providers that they are on both sides of the equation. They deliver Internet Services but they also deliver content. To stay on either side of the Net Neutrality debate. How do we know how google fiber has performed . How have they performed in various cities across the country . You are just turning to see the rollout. You havent seen the results. I dont think you will see much of a difference. Its essentially the same technology that is being rolled out by at t and google and earlier by verizon. At t, they are in hot water. Upset over what they believe is going to be unfair regulation of their business. It that they were going to stop investing or rollback investment. What does that mean . They are going to pause a for the rollout . Investment inbout getting a return on the investment. Their concern is if we get into a Net Neutrality fight again, which we have been in in the past. Investment, it delays innovation, it delays deployment. We are at a time where argues of the internet is exploding. Its going crazy. Without further infrastructure, we will not be able to accommodate all the needs that we have with our phones, cars, etc. Bluffing . Y i dont think they are bluffing at all. They need to get a return on their investment. I would be very cautious about how much you invest. 10 years ago, we went through this. Over four years following the deregulation of the industry, investment in infrastructure increased 80 . Spent 24en verizon billion building its network area is hard to imagine they would have done that without the deregulation. Stem to expand their network and create new markets. Hitegulation is going to and the incentivize. The extent to which you treat them like utility, it will be incentivize them. They will have to get approval for approvals that they make improvements that they make. You will treat them like a monopoly. We are looking at a competitive market. We are applying rules that we dont need to at this point. Well have a problem. You can imagine why certain lawmakers feel like the industry has gotten big enough that everybody is online and off that now we need the government to step in. Franken, hefrom al has been very proNet Neutrality. People rely on the internet calls, itsion, phone is a Telecommunications Technology service. There is no doubt about that. There is no question. Its an argument that plays very well. I dont take its getting to the bottom line, which is how do we fund this infrastructure . When the Telecommunications Act was first passed in 1934, we were talking about monopolies. We are not in that situation right now. Isont think we need. This all about investment and making sure that we can build up a network that we need for the future. Note, we are getting auto Sales Numbers this morning. I know that you used to be in the industry. At t has mentioned that they want to be in the industry. They see this as a 1 billion sales opportunity. What is the outlook for connected cars . I think its the future. There are so many great opportunities for at t and verizon. Whether it is communicating with the cloud or the internet or together, all of that is going to be done on the backbones of their networks. It will create more business opportunities. Now they have to work with the existing legacy players. This is exactly what is so exciting about us whole industry. It is transforming for your eyes. It will be completely different in five years. Absolutely. May be quicker than that, who knows with the way things are going. Scott, that you for joining us. Much more on Technology Companies and their fight for immigration next year. More by exclusive interview with sting. I asked him how he listens to his music and taylor swift and spotify. Net neutrality is not the only thing on congresss agenda. Congress needs to address the executive action on immigration. Up tech sector is ramping reform. They want targeted reform for high skilled workers to be addressed sooner rather than later. Shapiro. S now is gary they represent 2000 tech companies. I hate to make this sound like we have heard this all before, in many ways, we have heard this all before from the tech industry. They want Immigration Reform sooner rather than later. They want it focused on high skilled workers. What is different this time around . You have heard it all before. We dontd putting up a want you sign to people coming to the United States. Workers. Ighly skilled they are the basis of innovation. They produce more patents and do more Creative Work area they are the fuel that drives our nation. We are a nation of immigrants and innovators. That is who we are. That is our secret sauce and we want to continue that. Far, that has been falling on deaf ears in washington where they dont want to focus on high skilled workers. They want comprehensive reform. You have been unsuccessful in the last several years and getting any of those initiatives passed. How are you going to change or newic of tactic with the congress. The new congress will be republican. Legislation actually passed the senate. We think there is an opportunity. We think there is an opportunity for congress to pass legislation that is copper hence of. President obama will have to make a decision. You tiebs said that if the highly skilled immigration to the comprehensive, you will kill it. He did nothing about that with the first two years of his presidency. Will he do what is best for the country for jobs. We will see. You have seen him do something. This is a subject of great the base debate. It is going to be a republicancontrolled congress. What will your dialogue be with the new and reelected republican members of congress, the leadership. Who are you going to be talking to . Who are your targets . Overwhelmingly, the Republican Leadership favors highly skilled Immigration Reform. There is no question. The democrats say they favorite day they favor it. They wanted to be in a copper hence a package. Republican say that as well. Are willing to go with a loan on highly skilled and i think they will do that in the next congress. The problem here is we are making the great become the enemy of the good. Innovation taste economy with highly skilled people with masters degrees and the hds. Phds. One thing i want to ask you about, you work with levers of congress, Silicon Valley put together a lobbying group. Have they done anything . The more voices the better. Everybody is on the same side of this. 90 of americans would say we need these highly skilled workers to stay here. We have republicans and democrats already agreeing in principle on this. We should be able to get it past the finish line. If obama is presented with legislation, we will see. We will see what happens. Thank you so much. Gary shapiro. We have much more ahead. Strike well the iron is hot, we will hear from the cfo of the largest producer of iron ore. There was a freefall and commodities. The latest artist to speak out on the taylor swift controversy was staing. How does he listen to music . I prefer silence to almost anything else. I dont like music why havent elected to hear music. I dont like restaurant music. I dont like music why go shopping. To elect the kind i want to hear. I like to concentrate on it. Differently inic that i am listening to learn something. Taylor swift boat be shaking it off when it comes to being paid for music area she took her music off spotify, saying that they need to be paid in paid well for songs. Continuing our conversation with sting, he started when there was no itunes or spotify. I asked him about technology. I dont think the model we have at the moment is necessarily the one that will be there in 10 years. We need something with more equity for musicians. I think musicians need to be paid for their work. Its fine for me. I have made my money and i am welloff. Young artists beginning their careers, the idea of making a living in this is this is tough. Its increasingly so. I think the streaming model is a good one. We also need to be paid. You are on the streaming services. In some ways you do support these models. I think they are evolving. I was interested in taylor swifts stand. I thought it was rave and she trotted into the public debate. Brought it into the public debate. People need to talk about this. Music is important to us as a society. It must not die out. It is a vibrant part of society. You agreed with her . I think it was good to get the debate up. Whether she goes back to spotify or not, that is up to her. To raise the debate was a good move. When that happened, it created some seismic changes. Some people have no id he is that there is an issue. On the other side, i would hear people say why should they feel like they have any rights to be making tons and tons of money like they have in the past . Its making a living. In this industry, you can make a killing, but its hard to make a living. I think it needs to be more equitable. Should more artists push back . I think the streaming companies have got the idea now. They are trying the best they can to make it better. Its evolving. Every day is different. Im intrigued by where its going. I am glad i am not starting out now in the music is this. Do you think you would be able to make as much money as you have today . No. About makinglt extravagant amounts of money. I worked hard for it. I worked extremely hard. Im still working hard, that i enjoyed it. Im still out there taking risks. What do you think of the new artists today . I feel sad sometimes when people leave school and they have a hit on decks factor x factor and then they have nothing to compare it to. I dont know how you stay sane. The pressure is a norm us. Enormous. Ofess you have some kind grounding, it must be hard to survive. Industry bee music more responsible to that question mark . Andhe media is responsible society. This is difficult to sustain. When you are a young person, you become famous and successful and you think you are entitled to that forever. That doesnt help. You never let that get to your head . No, because i had a real life before. That may not be possible now. I am glad of that time. Saga, more on the spotify i want to bring in paul sweeney. He covers all things media. Sting has said that musicians need to make a living. What are they doing in response to what taylor swift has said earlier . I think what he mentioned is its going to bring the streaming services and the Artist Community together to talk about what rates should be. Artists are being paid by streaming services, are they eating paid enough . I think he means more for the artists. What is happening in music consumption today, people are not owning music the itunes. Reported a decline in itunes sales. People are not owning, they are streaming. They are renting. Again. El has shifted now they are just renting songs. The industry has to evolve and the Artist Committee has to say we need to pay more attention to what we are getting paid by the streaming services. We have a quote from what he said. Songwriters are hurting. I applaud taylor swift and everyone for standing up. It begs the question. Have older artists who have made millions and millions of dollars like garth brooks or the beatles or peter gabriel, they have decided not to let their catalogs be streamed on spotify. Should these older artists be taking stronger stands . They have more leverage. Clearly, if the beatles as an entity were to come out it would clearly raise the conversation. Taylor swift is one of the most popular singers on spotify. This is her audience. When she takes a stand, it really resonates throughout the world. I think the Music Industry and artists in particular should say we dont want to repeat the mistake we made 15 years ago with itunes. They lost control of the content and lost the ability to monetize the content in a digital world. Now they see the business going to streaming. Before this gets too big, we want to have a big seat at the table. What is an equitable split of the fees . Equitablee term thats up for interpretation. Paul sweeney, thank you so much. We have much more ahead, including telling you about the oklahoma billionaire who lost half of his fortune in the last three months. He is a victim of the oil crisis. How the russian president was pressured into abandoning his black sea oil pipeline. Today, the big number is 12 billion. Fortune hasmuch his fallen in three months. That is a decrease of more than 50 . Continentalo of resources. By theve been battered plunge and oil prices over the last month. He is not worried. He predicted prices will back bounceback. We are on the markets. Oil is not battering equity futures. We are looking for a slightly higher open in just about half an hour. We are on the markets again in 30 minutes. Ahead, Commodity Prices are trading at a fiveyear low. What are Mining Companies doing to boost their profits . We will be hearing from the Worlds Largest eye and or producer coming up here in the ceo of lending tree joins me. They will be the First Company to make its trading debut. He were watching in the loop on Bloomberg Television. Welcome back and are 30 months away from the opening bell these are our top stories. Stocks will be open at the open. The China Central bank will add stimulus to jump start the economy. Russia may be on the verge of verge of a recession for the First Time Since 2009. By economy has been battered Falling Oil Prices and the impact of sanctions over the ukraine. The ruble has been in freefall. Vladimir putin is backing down to european pressure. Plans for aing black sea oil pipeline. This would let russia send oil to western europe by avoiding ukraine. This may curtail his power. This is daniel juergen. He wont have the maneuverability that he has had. His bargain with people has been i will deliver a better economy and he has done that. Let me run the show. Chrysler is reporting sales rose 20 last month. That beat estimates. Cheap fuel is driving sales. Says dozens of the biggest european banks dont have enough capital to withstand a repeat of the 2008 financial crisis. Deutsche bank and others were mentioned. The stress tests were flawed. Isht now, jeh johnson defending the policies of the president s executive order on emigration. This is a live shot right now before he testifies before a house subcommittee. You can watch it on our live event channel right now at bloomberg. Com. We are under 30 minutes away from the start of trading. Whats cap you down to the top 10 headlines. Matt miller and julie hyman are joining me this morning. We start with a little bit of a downer. Number 10, matt look sad. Analysis, the new american middle class has seen as deep increase in the price of health care and other necessities over the past half decade. People have cut back on spending and consumer goods and luxuries. File this under nss. This puts a fine point on it. It gives them an exact figure. Food is getting more expensive . Are you serious . The squeeze of the middle class, the crunch continues to get smaller and smaller. All of this are happening as wages stay stagnant. I think the coolest thing about the story was they say we have to pay more and more to stay digitally connected here it you dont really. 20 years ago you werent. I guess you could live without it now. You could make the argument that Tech Knowledge he has made things cheaper. People are cutting in other areas. They are willing to pay more. You are adding to those expenses. In any case, this is a sad state for the middle class in america. Speaking of the consumer, we saw the black friday numbers. Walmart is cutting 250 jobs in china. They want to improve efficiency. This comes from merchandising and marketing divisions. They are raising food Safety Standards after fox ena was found in meat it was selling as donkey. This is ridiculous. You think you are buying talking meat and its really fox. Donkey meat and its really fox. Walmart is cutting 30 people on the executive level. That happened last week. This is reorganization. Its happening here and in china. Its happening companywide. , it looks like there are some organizational changes being put in place. There is a Ripple Effect from the u. S. Operations. They are closing some stores in japan. They are sticking with the plan to open more stores in china. Monday, growth slowed as consumers embraced the convenience of Online Shopping over many days and not just one. Cyber monday has, less and less important. Shopping rose 8 . That compares to 17 last year. Like ar monday sounds term from the 90s. Its outdated. It doesnt make any sense in this day and age. I just learned it last year, but its out dated already. Where have you been . You are right. I am looking to buy a washing machine. I was all set to look last night, but the deal was effective through december 5. Julie is right. The Holiday Shopping season has been drawn out. Black friday started happening on wednesday. Cyber monday is going to happen for the next week. I can get the same deal the rest of the month during. I feel i can i can get the same deal anytime. Sachs is being offered 700 million in convertible debt. This is according to the financial times. Uber will be able to tap into goldmans more elite companies. Things is the kind of where the rich get these great opportunities. To juicy what chris rock said about the rich . Did you see what chris rock said about the rich . He said if the rich four people knew how the rich really get, the perks that they they get a piece of the action. Uber preparelping for an ipo. Uber hasess that gotten lately has not put a dent in somebody wanted to invest. Morphology of a hack attack at tony pictures. They uncovered the salaries of some of the top paid executives. They listed the salaries of 17 executives. I dont know if you took a look. , she is one of the paid 3 million a year. If only poor people knew. Way, if poor people feel guilty about stealing fury, they dont feel as guilty today. Numbers, variety act up on them. What fusion picked out of these numbers is there are very few women. Amy pascal as the exception. Much like the rest of corporate america. I am not sure that that would be my big take away. Whatever happened here in this attack, there was a tent to embarrass the company intent to embarrass the company. Much more ahead. The countdown continues with a deep dive into the lending space. Be ceo of lending tree will talking about the lending club ipo. Stay in the loop. There are 23 minutes until the opening bell. The countdown is brought to you by invesco. We continue to get down to the opening bell. It is time for our deep dive in number five is lending club. This is an alternative to Traditional Bank loans. They are filing for a Public Offering to raise 692 million. At 4stimate the company billion. They are the first to go public. Traditional banks are taking notice at this space. With me is the founder of lending tree. This is like expedia for lenders. Andpers can look at lenders banks can look at Consumer Lending groups as well. It is great to see you. This is another moment in evolution or these peertopeer lenders. How big will this ipo going to be received . Im not the stock expert. I think this will be very well received by investors. You are seeing an explosion of interest in innovation in the Consumer Lending space and new types of lenders coming online. This will be the next big Growth Engine on the internet. Obviously for consumers and their borrowing needs, are these peertopeer lenders really peertopeer . There are two models. Weve got 13 of them who are doing personal loans on our network day. About 20 is peertopeer. This is an individual making the loan. The big innovation is that these loans are being bought by hedge funds or major Fund Managers who used to invest in Corporate Bonds or treasuries and are now investing directly in the consumer. This is another outlet for the consumer to get loans. This was a state that was very opaque. They would go to a cash advance place or go to a Traditional Bank. Buyers are these institutions, what about the funders of this group . You mentioned individuals. A place whereng some the funders are coming from wall street . Absolutely. The buyer of the loan is the funder. Ding club ands processor and prosper to the underlying and the risk evaluation. They sell it to an institution and they own that want. The peertopeer platform does its processing. Judged on how good their new credit analysis and their underwriting is and how the loans perform. You are not a stock analyst, i would imagine, how do you value a company like the lending club . If you have more of the funders that are from institutions and looking more and more like an end to touche the lender, where eer . He p we are thrilled. We have been public since 2000. We are happy to have other people in the public arc its with new and different types of models. There are going to be Great Expectations for significant growth. Over time, things are judged by their earnings and their growth rates. Will orthat company just as our company will be or any of the others that are going to come public. Just installment loans, expectancy ipos in the Small Business space and the student loan space. Mortgages were the first big categories to come online. The rest of the 11 trillion consumer reddit market will be more transparent credit market will be more transparent. They will be able to steal their fair share. Thank you so much for joining us. He is the founder and ceo of lending tree. How were the sales at ford and gm . Will find out in just a going to see why so many hedge funds are shutting their doors. Welcome back. Lets get back to bringing you the most important stories. Matt miller and julie hyman are joining me. Lets start with number four or it russia is getting hit on all fronts are in the crash and oil prices and entering the first recession since 2009. The economy has been battered by western sanctions and oil prices are in this has led to the weakening of the ruble. Also boosting inflation by. Uite a bit worried it is bad for the people of russia. How much is Vladimir Putin carrying question mark his Approval Rating is still 85 . That is massive. Reportedly. Will be sanctions be enough to get him to pull back . They have already started. That was my question. Will this cause any difference in the actions in ukraine . Thats the main issue. Will all of this work . Point, histo matts Political Base is still very powerful. What happenstter on the economics front. Number three, chrysler is leading the way with november sales. Ford and gms sales are due out in just a minute. The numbers did not surprise me. Chrysler has had strong numbers continually. This this the 56th consecutive month of growth for chrysler. Main this is one of the reasons. The Jeep Cherokee sales have been amazing. I was looking for about 20 and they came out at about 1 . Gm is estimated to post a gain of 2. 6 . We will see how they actually do. Ford will show a drop of 2 because of the changeover. We were it amazing . Talking about how the middle class are being squeezed, that hasnt stopped anybody from buying cars. They worked buying cars several years ago werent buying cars several years ago. You get to a point where you have to buy one. There is a lot of Financial Engineering that goes with that. Number two, a key witness will be the late apple founder steve jobs. They are going to show his emails or it you will see a video deposition from when he was alive. I think of the ipod of such a dinosaur. There was a time when we were buying all of our music from the itunes store. Emails, this centers around the ipod. Who buys an ipod anymore . According to the plaintiffs, it lock to win. You in the. U. N. You in. This seems like a relic. Ironic, people used to steal music. Now people pay for music and now people rent using. Bloomberg television is on the market. A quick check on how futures have traded. We are slightly higher. It looks like we are headed for a rally. Welcome back to in the loop. Lets bring you back to the most important story that you need to know before the bell today. Met milley matt millers joining me before the bell this morning, with julie hyman. Weve been talking about crisis,s with an oil Energy Companies, but hedge funds are going through a lot of pain, closing at a record rate, this could be the worst year for closures since the financial crisis. Yesterday we reported that howard and other hedge funds have closed their commodities fund, and no surprise given the lack of returns we have seen this year. Four hundred 61 funds closed in the first half of the year alone. Essentially been a positive return. The index,know about then. You have to wonder what would kill the hedge fund. In 2009 more than 1000 of them close that year. It was then resurrected. They will be back. They will be back. You know what i say . I dont shed a tear for these hedge Fund Managers. I am sure it sucks to lose your job and do something else, but these are some of the most well paid people in the country, doing a whole lot of different stuff. Hopefully they have saved up enough to get through this issue and they can become teachers, for example. I like that. Yeah. Like they could do a little good is that what youre saying . Anyways, theyd lose money for people to. On the flipside, bill ackman, david einhorn, dan burrell, they have had some of the best returns in the last month. [opening bell] facing to be outliers. Exactly. I want to bring in the president of Outlook Research in chicago. Jim, you are on our program a few months ago, in september and october, you said at that time that stocks were fully valued. We went through our october miniature crash, you could say. To you feel better about valuations . Or are you still pretty worried . I am still worried. The market is not overvalued, but it is just a little bit forward pe the favorite metric that is at nearly 17 for next years earnings on the s p 500, well over 20 for smallcap stocks. Those are pretty heady numbers right now. For the market to move forward from here you would need strong earnings growth, Strong Revenue growth, and guess what . What wall street has been cutting those numbers rather aggressively. Can the market go higher . Yes, but it would have to go into overvalued range. To stay fully valued you would need a stronger economy with strong earnings and no one is looking for that right now. Is it ok if i break in here . I just noticed that lord and gm are out with the numbers. Light vehicle sales were down 1. 8 , a little bit better than the estimate. Bloomberg news spoke to about 13 analysts for an estimate of the drop of 2 , ford beating that just barely, but gm really knocking it out of the park. We were looking for a gain of only 2. 6 . Gm, doing a heck of a lot better there. Is reason that ford is down not because people are not buying as many cars as they are gm, of course gm is a much bigger company, but because they are switching production from the old f1 52 the new f1 50. It is their biggest selling vehicle in the country. Hasnt europe also been a problem for ford . And for general motors. They pulled chevrolet out of their completely. They are both seeing a little bit of a recovery, and gm seems optimistic. How much of a benchmark do you see these auto Sales Numbers on . With the exception of so far, you have some big eats coming out from gm and chrysler. Isnt that kind of a source of comfort . The economy, jim . Yeah, with the chrysler beat earlier this morning youre looking at numbers in the high 16 or 17 millions. Those numbers are very good for the United States. You mentioned europe. Europes numbers are a disaster right now. They are at like 20 year lows in terms of auto production and they are not turning around any time soon. One of the bright spots in the economy has definitely been auto production. Part of that has been driven by the replacement cycle. People have just been forced into buying new cars because their old ones were breaking down, but no doubt that is a positive for the economy, unlike the Energy Sector that has been a big negative for the economy. Weone of the other reasons see auto sales doing so well is because financing is so cheap, right . The fed, as you have spoken about so many times, does not even seem like it is ready to think about moving Interest Rates up. I remember you used to say never and you change that to sometime in the future. Closer,tting closer and do you think . Are they getting closer to that point . I am still let never. Not to poke fun at wall street, but wall street always says its six months away. They have for four years. They will continue to they and continued to say that when it does happen they will say look at what i said six months ago. The new york fed president said of course, for the midyear hike, but he gave a bunch of escape hatches to. Changing that to a date in the future when i think it is coming , my point is i think it will be well in the future and you are right, it will keep down Interest Rates and keep financing cheap. Companies have been benefiting from the resurgence of subprime lending since 2006. You can get an 84 month loan on cheap credit just like the last cycle. Got to leavee have it here. Make you so much for joining us. We have got much more on the auto sector. They have until today to expand the u. S. Recall. We will speak with one of the automakers pushing for that recall tom a Richard Blumenthal. Righto have breaking news now, Ashton Carter, the former deputy secretary of defense has now been named is said to be the obama choice for the defense secretary to succeed chuck hagel. This is just coming across our wire. Ashton carter, the former defense secretary defense secretary, to be nominated by president obama to be the next defense secretary. Much more after this break. Mentioned,st breaking news out of moment ago, president obama has reportedly chosen a new defense secretary to replace chuck hagel, the former Deputy Defense secretary chuck carter. Peter cook has more and is standing by with Richard Blumenthal. Peter . That is right. Remember the Armed Services committee . We want to get reaction to this breaking news. Nominated toill be replace chuck hagel. You know ash carter, what is your take on the story . A very solid choice. Ashton carter is a penultimate for fashionable. He knows the department of defense inside and out. He is the former defense secretary for acquisitions and Weapons Development and is a real professional, diggs down, drilling down on questions, a very solid choice. You have events a vested interest in this . My son is in the marine corps, i have another in the navy. I have come to know Ashton Carter in his capacity not only is deputy, but as secretary. I think that as a scholar i hope that he does something to inform the acquisitions process, the contracting, and how best to eliminate waste and fraud with challenges ahead in downsizing the numbers of green and Army Soldiers with a lot of general challenges around the world for isis with isis and others. Towe asked you to come here capitol hill to talk about this, the situation with ricotta airbag, the japanese manufacturer. They could be forced to initiate a mandatory recall process, something they have not done in decades. You have any indication of whether they will be responding affirmatively . I hope that there will be an announcement today. Certainly tomorrow the company will be pressed before the House Committee about whether they will do so and i hope that they keep the calls that i and others have made for a National Recall, there is absolutely no logical or factual basis for issuing regional recalls, which as been , regional recalls limited to areas of the country with high humidity or he. After all, cars from connecticut are driven to other people states. As do many other parts of the country. The response of this point that by focusing on these high humidity areas they focus on the areas of primary concern that if you have a National Recall you put more people in risk because the repair kits go to other parts of the country where they should be going to these high humidity areas first . Keyhat is an absolutely point. Their response, to delay, is not the right one. Literally ats are risk as they drive these cars. What needs to happen for them and for other airbag manufacturers to produce at a committede, they have to going to at least 450,000 a month, replacing parts up from the 300,000 they have in doing so far, but the auto manufacturers need to go outside and go to other men other manufacturers. There was a hearing last month on that issue. Exactly right. It was the chrysler and honda witnesses as well, they needed to commit breaking whatever pride is this they had. You had been pressing the Justice Department to look into this. Are you convinced that there has been criminal wrongdoing . I am strongly convinced that there is a need for investigation. I am reaching no conclusions. There will be a time once the investigation is completed. The department of justice is apparently, and i say that because they never confirmed they are doing so, but they are apparently conducting some sort of justified inquiry at this there may be other obstruction of justice documents. I know you are troubled with what you have heard so far, but what about the automakers you have heard so far . These all are using products. Honda has started a financial recall, but i am not satisfied because theyre recall relates only to the drivers side. There is nothing magical that makes the airbags less dangerous to the passengers as opposed to the drivers. It ought to apply to both. Gone that farot yet . They have not. Typically they are unfortunately behind the curve on this one. Thank you so much for your time. Hill for canal on the a moment as they face the deadline today. Our chief washington correspondent, as you just saw, with senator Richard Blumenthal of connecticut. Here is a look at our top tech stories, the holiday wish list , the ipad is facing a lot of competition this year on thanksgiving day. Advertising rca tablet, and what of taylor swift, a big fan . Thinksllow superstar move towardsut her spotify . Sting told me that he admires her. I was interested in her stand. She also brought it into public debate. Talk about this. What is good for music . Music is important to society. Be sure to check the full exclusive interview online. Freefall, weies in will hear from the largest producer of iron ore next. Theell, oil is not taking fall alone. Commodities across the board have been trading at fiveyear lows. The largest producer of iron ore is hosting an investor today in new york city where, among other issues to discuss, they have just disclosed the Capital Expenditure program for next year. 10. 2 billion dollars, slower than the average that the company has spent in years past. The cfo of valley, joining us now from the New York Stock Exchange with an exclusive interview from seattle. Joiningu so much for us. For a lot of folks it has been about how much you are going to scale back investments in light of the decline, the rapid decline you have seen in commodities prices. You have shaved that off slightly, why . If i understand your question, as i am not getting perfect audio, you are asking me about the profile we should expect going forward, given the decline in commodities prices. Correct. We are in the middle of the journey. We still have two strong years of spending before we get to the point where we complete the Investment Program and we are working very hard to reduce the spending and try to do the same projects. We expect casual investors to make sure that we will be able to go through this by spending less resources. We also expect that we can see that we have the means to while inhat program the development of lower prices. Lower prices have only gone lower with your projection of iron ore prices. I think we are going through a healthy adjustment. There is there is about 200 million tons of capacity for the current prices. Yesterday we had a great african miner announcing the shutdown of a top mind. It is one of the most competitive in the world, we are thisconfident that after suggestion goes through we will see prices recovering towards the no the more natural equilibrium. Speculationa lot of that you might ipo your base metals operation. What can you say about that . Sorry, you are talking about the ipo base Metal Operation . Correct. This is a possibility that through the venture they will give considerations, but obviously when you see everyone predicting nickel prices to this year, with all the options to be considered. As thewe see it as early time frame for this . , according some time to each stock exchange. We want to be ready sooner rather than later to take the opportunity when it presents itself clearly, if that is the case. She is already listed in the New York Stock Exchange, so that is a natural place for us to consider if we make such a decision. To haveto be prepared the flexibility, if the weather arises. How much do you think we would be able to value those operations . How much value would we expect . For the valuation, correct. Last yeared investors with the whole division generating between 4 billion and 6 billion. We are about to reach guidance and we believe that the trading multiples are from seven times the disaster to nine times the disaster with ipo considerations. We think it is an easy calculation to see how they could reach 35 billion in market value. Luciana, thank you so much for that. Joining us there from the New York Stock Exchange with that exclusive interview. That does it today for in the loop. A special guest is joining us to discuss all the recent negative publicity over uber. Is 56 past the hour, meaning that Bloomberg Television is on the markets. Were 30 minutes into the start of the u. S. Trading day and stocks are attempting to mount a comeback. Gains rightg modest now, the s p 500 is off almost three points, gaining three points with overseas markets firmer. Investors betting on further monitoring on the easing there. The on the strauch the back of a stronger dollar, you can see the nymex is up, with with coal futures more on the driving influences thegold, i am joined by middle spread. There is a lot to talk about here, from the technicals to the fundamentals. We started this placing gold and oil trading together. Much is the trading of oil influencing the gold move . Immediately this is the big mover. Friday we saw everyone coming back with oil going down quite a bit. Yesterday we saw a huge jump in oil and it was like every time we saw brent crude we move higher with gold moving right with it. I spoke to a number of treasuries and i asked what is pushing this and they said it was an oil story. Lockstep. Gold moved above the 50 Day Moving Average yesterday and is now back below it. Longtermove the trend line was october 15, where we saw the big selloff in net goodies. Is goal just reaction reacting to the market . Of demand for gold . There is a lot of tug and pull on where gold should go. The fed says we should be raising Interest Rates next year. Across the board it seems that the the dovish and hawkish fed said that they would change things, but there is this unbelievable move tugging every commodity. Even though we have had these big swings in the gold price they say that if they are looking in the midline we are not expecting the gold to move too much higher or lower. We could see a sideways trade. As we mentioned offscreen before , gold is trading higher for the year. I dont think many people would be surprised if we wound up even for 2014. Of course, that followed from 12 years of gains. Heading into 2015 what are you hearing from the big investment houses in terms of where gold is trading given that Inflation Expectations have come down so many that is why so houses are not out there being bullish on gold. A number of people are saying yes, the prices will come back, but it is always difficult with gold. Especially with the bank of japan and ecb out there with china contributed to global stimulus and the United States not so much. Even though most people are not as bullish as they have been in the past, they are still cautious. When is the demand highest . About the Chinese New Year and the indian what a wedding season to be something to talk about keep in mind as well. You have them both coming into the market in terms of them buying on that end. Right now seasonally it is pretty pretty positive. Yet everyone is still expecting 1200 for the year. Thank you so much. Again in 30ts once minutes. A big month for the big three at gm, ford, and chrysler, all beating estimates for november sales. Counting all the money that you will save from federal energy prices, one Economist Says to stop right now. Makers on the comeback trail headed back to the aggressive marketing, including everything from ringo starr to racehorses. This is market makers. Good morning. T