For christmas. We have a lot to cover. Its time to take you to the news feed. Apparently, the take overall her was not a good fit for joseph a bank. The clothing retailer has rejected an offer from mens wearhouse saying it significantly undervalued the company. Joseph bank says it will review opportunities. With thejoining forces largest mobile carrier, china more thane, it has 760 million users. It has agreed to sell iphones. The move may help both companies by declining market share in china. Ford is getting ready to unveil a new aluminum version of the bestselling f150 pickup. The new pickup will debut at next months Detroit Auto Show and will be lighter than the steel version. Fuel efficiency may rise from 23 miles per gallon to almost 30. I think i know what you did this weekend. You might have had a lastminute run to the shopping mall. Millions of americans were finishing or maybe starting the Holiday Shopping traffic. Has its finger on retail. Bill martin is with us from chicago. The single most important factor in getting consumers to buy this season . I dont know when to shop anymore. This weekend was a pivotal weekend for retailers. Day, saturday, sunday these were the top shopping days of the year. In chicago, we saw an abundant amount of foot traffic up and down the street and many consumers carrying rack edges. It felt like it was a good week. Today is important this is what we call fathers day which is when the male shopper gets into the pattern to complete his Holiday Shopping. The day after christmas is always pretty strong. Aboute are seeing now is two percent increase in sales over last year. We have projected 2. 4 . We need strong sales this weekend to hit that number. We are fairly confident that the consumer really went out and tried to finish their Holiday Shopping season this weekend. Even though you saw a lot of foot traffic, are they buying enough . It seems that every single store has a coupon or promotion. We dont even know when the best time to shop anymore is. I found myself in stores yesterday not knowing if it was the right time because we could be days away from being 70 off. I agree with you. The discounts are pretty volatile this year. We saw heavy discounting during black friday and that weekend, thanksgiving was a strong day this year. We also saw some discounts this weekend. We expect the largest discounts to come after christmas when we will begin to see retailers trying to shed themselves of an divinatory of inventory. Asare up against a deadline christmas is wednesday and people will need to finish their shopping by then. We expect we will see a strong day on the 26th and many people out over this coming weekend we can expect to see large crowds. Lackt used to be that friday and then the day after christmas and maybe there was a little bit the day before. It seems that the deals keep coming now. They do keep coming. I think the retailers have convinced the consumers that there will always be a discount. There will always be an opportunity to shop. We saw that with a couple of strategies this year. People tried to go to Everyday Low Price but the consumer likes the discount and likes to think they are getting value for the money. We are conditioned. It is our expectation that we should see 30 off or more. Thatnk that is a trend will continue throughout this year and into next year. Is there a retail strategy that has not worked this season . Its hard to know what has not worked. Many retailers create a strategy that was developed in april and may this year and they have to run their strategy based on what they brought into the store. Theye products dont move, have to modify the strategy to create a larger discount and get the product off the shelves. What product category sorry, continue. Product categories seem to be the strongest in apparel. That is because they had a soft year last year. The weather was very mild last year. This year, we have seen the cold come earlier. We see a lot of the winter apparel moving off the shelves. If i am target or best buy or walmart had why combat that everybody is buying apps . That does not help my business. Stores have abox good strategy and a good product. They are trying to entice their loyal shoppers to come in to entice other shoppers to come in. There is a lot of promotions and tv advertising. There is good opportunities for them as a retailer as well as their clients to come in and engage in the retail world and get good products were fairly good value. I know i cannot get a vita mix for a good price but i still love it. Thank you for joining us. 10. 10 is what workers could be making next year for the minimum wage which is supposedly a top priority for Congress Next year. The starting point is a bill that would increase the hourly salary from 7. 25into double digit. Alix steel has been looking at the impact on companies. Which companies are most at risk . It is all about location. States are increasing the minimum wage on average nine percent irrespective of what congress does. California is up almost 13 . Sector, it isant actually Franchisee Stores like mcdonalds that are best insulated. Actual Franchise Stores will take a hit but corporate will be fine. Stores that manage all their businesses like a starbucks or panera or chipotle or pjs, these are the stores most at risk. One analyst said these companies have more than 20 of their stores in these states and are planning wage hikes. How do these companies mitigate the risk . If this law is coming, it is what it is. Its not like they have been weight raising their wages. They pay slightly above the minimum wage. You could fire people. Some analysts say people will be as lean as they possibly can. I dont think chipotle has extra employees. The third option the second option is efficiency. I talked to one analyst taking a look at starbucks. They are testing an app where you can buy something on your app and pay for it and cut your line and go pay for your coffee. It might not cut workers but it could help efficiency which helps sales. The third option is you can raise prices. To and het i talked said bjs would have to raise its by 1. 4 . These are somewhat manageable figures. Manager of manageable for whom . Well the customer be willing to pay more . Chipotle has not raise their price in the last 1. 5 years. They are starting to raise their prices next year. That is a big risk. People are eating out less and trading in for groceries instead of restaurants. Isp did research stating that fact. You can make the argument that people are making more and perhaps have more money to spend. The Economic Policy institute said the federal minimum wage could put 35 billion in peoples pockets. Isnt the argument to raise the minimum wage because people cannot live on it . They should not necessarily have more disposable income. Thats why we are not all as he makers. You could make the argument that if you raise the minimum wage, it will cut out certain people from the workforce Like High School kids. We would not make good policy makers but we can talk about this. Thank you so much. Back, weve got to talk about target. They are trying to make amends with customers after the massive data breach involving credit and debit cards. They offered 10 off this weekend. We will talk to a top Online Security expert. Where is that beautiful Christmas Tree . Its right here at the bloomberg world headquarters. Target had a nightmare before christmas. In response to the breach that exposed credit and debit cards of 40 million shoppers, Jpmorgan Chase imposed spending limits on 2 million debit cards that were swiped at target stores in an attempt to stave off fraud. Three class action have been filed in response to the breach seeking 5 billion in damages. Lets bring in an Online Security expert. He has been looking at the massive data breach and joins me now from boston. I was in a target over the weekend and i cannot say i thought about the Security Breach going in. When i go next 10 off at the end, i thought i was going to shop here anyway. What do you make of this . Gratuity is nice. The public direct their anger toward target is funny because they are a victim of a crime. While they are supposed to have systems in place to protect their customers, which they do, there is something called an advanced persistent drip which means they are under attack all the time like most retailers. Its not a matter of if but when. Should we be blaming target or saves is just a case of what is happening in this new world . Ciber hacking is a day to day threat. Target takes some responsibility but this is not a victimless crime. This is happening to our government and major corporations. They are being targeted 24 7. While they have systems in place, somebody at some point will get breached again in the next week and we will talk about them, too. Those of us who are blaming target, do you think we should lay off . This could have happened to anyone. You want to keep on these corporations to make sure that they are, in fact, keeping our data secure. Not you back off, they may spend the right funds on information and security technology. There has to be checks and balances. If you are assaulted, youre not to be blamed for being victimized. If your home was broken into i dont think this is negatively going to impact them in the long run. What does target need to be doing . Is this the price of being a major retailer . If you think about the value of customer data, this tremendous. Offering an apology is the right thing to do. Offering discounts is certainly a nice thing to do. In the end, they will learn from this as many others will. For those who this is happened to, what is their course of action . Plain and simple pay close attention to your credit card statements. Some do it monthly and others do it weekly online. My cousin got breached for 250. You have to be paying attention via mobile apps. Should we not be using our smartphones to be buying things . There is so much hacking. You clearly dont have the proper protection in place yet, should we slow down how we pay for things . Yourf you want to use mobile phone for an application to pay, its perfectly fine as long as your device is secure. Same thing with your pc. How does the average consumer know if their device and their pc is secure . I have not done anything to check but when im on my phone and see something on amazon, i buy it. How do i know if i am secure . As long as you have updated operating systems and updated antivirus. You want antivirus on your android, making sure your pc is antivirus. If youersecurity 101 have that in place, you are safe to shop online. Credit Card Companies have these systems in place. Thank you so much for joining us. People need to Pay Attention to your advice, not to the advice from Stores Offering deals. You want to be protected when you are out there shopping. It could happen to anybody. Obert sicilianiano when we come back, the offer was not suitable joseph a bank rejects a takeover effort from mens wearhouse. If you missed any of our interviews, you can now watch them not just on bloomberg. Com, you can catch it on apple tv in a brandnew experience. Tv is thesays apple coolest and it just got a little cooler now that it has bloomberg. Welcome back to market makers. Clothing retailer, joseph a bank, has rejected a takeover offer from mens wearhouse saying it significantly undervalued the company. They think the suits are hotter than others. Julie hyman has been following the 1. 5 billion takeover bid. Give us the latest. I cannot say i have been to a joseph a bank ever. We are still talking about mens clothing. This started back in october and thats when joseph a bank, the smaller of the two, made a bid for mens wearhouse at 2. 3 billion. Mens wearhouse did not accept that did and turned around and made a bid for smaller competitor. It is the pac man defense. Why should these companies merge . Coke and pepsi or mcdonalds and burger king doing this . Beenany people who have watching this are talking about cost savings and saving on marketing. About menstalked awareness mens wearhouse having a lucrative tux egov rental business. Many shareholders are pushing for this. Mens wearhouse has pushed for this change ever since George Zimmer was removed as chairman of the company. Aga. Is an ongoing s likelylyst says it is joseph a bank looking for a higher bid for mens wearhouse. The stock has been trading above 55. That means this is not a done deal . They are dancing. Happen,ow it does not if joseph a bank is sincere and wants to look for other acquisitions, its not put in a good position. Both of the stocks will run up. What other acquisitions good there be out there . There are other businesses not in the same league. If they dont get together, you look at them as coexisting businesses. Mens wearhouse is probably in a slightly better position. Joseph a bank might go casual. There is not a lot of choices. What about lands and . I dont know, there are not a lot of names that come to mind that are very logical when you talk about other companies. You are throwing everything out there. These two companies are dancing in their rented tux he does. We will see what happens. We are approaching 26 past the hour so it is time for me to take you on the markets. Lets take a look at some of my favorite companies. 500, the dow, and the nasdaq are in the holiday spirit, up across the board. The nasdaq is up almost one percent. There is some positive momentum today. Label i like is michael kors which is dropping today. They have had a good year so maybe people are taking profits. They have had higherthan expected markdown inventory. Their stores were busy over the weekend. Facebook shares are rising today. People want to check out one anothers feeds. An additional one million facebook shares were priced friday after the bell at 55 dollars per share. Said facebook was a disaster on the day of their ipo but it does not feel like one now. Casino billionaire Sheldon Adelson wants to stop Online Gaming and we will share our exclusive interview with him when we come back and mobile App Developers have their own version of black writing, a day when people cannot wait to start downloading. That story is coming up. Live from bloomberg headquarters in new york, this is market makers. Welcome back. Magnetaire casino Sheldon Adelson says he will spend whatever it takes to persuade lawmakers to lock the rollout of Online Gambling in the United States. He spoke exclusively with elliott gotkine. He says this is not about the money. The guide is not become a billionaire from not caring about money. That rather than the money, its a moral issue that allowing the proliferation of online ambling in the United States would be the same as putting a casino in the hands of anybody with an electronic device, especially younger people in the perhaps people without the money. He is putting his money where his mouth is. I will spend what takes to get the point across. Its not going to take a significant amount of money. In my position, whatever it takes is ok. Im very much against it are in i am morally against it and i think it will kill the entire industry. It has the potential to kill the entire industry. It is already doing that in europe. Internetjust allowing gaming in europe without any consideration for the landbased casinos. Its also sell reservation. It has nothing to do with my business. I am not in that category where my customers would play on the internet. We take thats better quite significant. We take bets up to 1 million per hand. The Online Gambling in the is in three u. S. States and could be in a dozen more by next year. He is not looking to get out of the business entirely. He wants to make macau another place is bigger than they are . If only he could. Hes already got five resorts in macao and that accounts for more than half of the revenue than the las vegas sands. He owns more than half the stock but he is building more resorts and that would take him to a total of eight. He is resigned that the eighth one will be the last. Can support as many resorts as there is land for. There is no more land left. On which they can put resorts and if it will stay in the same area. Acronym for the names of two islands. That is the name of the area. That land is rapidly being used up. We have reclaimed the land. We filled it with the sand and compacted it and put him pilings. They go down almost one almost 300 feet. It goes between 35 and 100 meters. There is not very much more. Most of the land is already been given up. There is an adjacent island that is maybennel 100 yards away, if that. You couldactually stand on one side and yell to the other side and someone could hear you. That is the mainland of china and the mainland of china will not allow gaming facilities. The gaming portion ofmacao, i think, has reached its limit. Unable to take any more casinos, he is looking toward other frontiers in asia and in particular, he wants to be big in japan. Did he say anything in terms of Current Events . His name pops up a bit. Did he have anything to say about the Current White House . We would have loved to have asked him what he made of the obama Political Capital in terms of supporting the peace talks between israelis and palestinians and chris christie. The minute we mention anything remotely political, his pr advisor jumped in. We did squeeze out that he does not a peace between israelis and palestinians as possible because in his view, the palestinians do not want these. That was the most we could squeeze out of him as far as politics. Inauguratesrael to the opening of a Business School that will bear his name. It is just north of tel aviv. He says he might pop over to give a lecture or to take a lecture. He says you never stop learning. Thank you so much. Back, Johnson Controls, the countrys biggest maker of auto parts, wants to reinvent itself and we had a chance to speak with the ceo. You are watching market makers. Welcome back to market makers. Johnson controls is trying to reinvent itself outside of the car market. Matt miller caught up with the ceo of Johnson Controls at the new york stock exchange. Tell us about your conversation. How do you reinvent yourself . Johnson controls actually was born as a company that made thermostats. Company thatvac reinvented themselves as a car parts maker and do a wide variety of other things. Do they want to get back to their roots . They want to diversify into other industries and they are going they get in china. They opened a new headquarters in shanghai. Unfortunately, the Company Recently announced profits next year may fall slightly short of analyst estimates. That is because of weakness in the european automobile market. U. S. Car makers are going gang osters. Confidentid he was that growth would continue in 2014. For the nearterm, i think we are in good shape. For the suppliers, it is good and i think there will be a lot of competition for the oes but i think the market is good. How do you get a jump on your competitors . I dont think about our competitors. It is about serving our customers. For the automotive business, it is stability and leveraging your fixed costs and making sure quality stays in place. Your customers are very interested in china. Its amazing what we are seeing there for gm and ford. What about you . You put a new headquarters there. It is imris on stu the success we have in our business. Our automotive seating business is number one in china. We have a 41 market share but we have a strong franchise business in china with their joint Venture Partners and our building business, we are very strong. Is growing business rapidly and china is a big deal for us. Lets talk about the building business. People dont realize that your Company Started with a thermostat. Do you want to build that business out . I know you want to diversify into other industries. Core of business is the our business and always has been. We have been fortunate in the automotive business and the last 20 years with outsourcing but we will continue to focus outside the automotive business and within the building business. We are in the right spot. People think about sustainability and energy cost, green energy, that is the sweet spot for Johnson Controls. Thermostats,ink of i think lately of Technological Advancements that are kind of weird. In car controls, technology has played an important part as well. How key is that to Johnson Controls . Its very important. The thermostat went to computer controls and we are a leader in that. And you think about commercial controls, thats were Johnson Controls makes its living and helps its customers. Its not just the equipment. Its how we control the information we get. I was recently in the Empire State Building and looking at your work there and you making it into a Green Building and that is a massive project. Our other big buildings getting into Energy Efficiency . Absolutely, thats a great project but we announced yesterday the largest contract we have ever gotten, 150 million dollars, the state of hawaii, with their department of transportation. Their energy costs are very high in our ability to save them energy is the kind of example in building efficiency where we are unique and have a great opportunity. You want to get into Different Industries and i diversify your revenue stream. What else are you looking into . Building controls is more than 30 year profits and automotive control is about half so what else can you look to . The way we look at our business is 1 3 of our business is and automotive and 1 3 of profits come from hvac and the other third comes from our Energy Storage business. It is an aftermarket business and that business is highly profitable. It is something that is growing rapidly. How much is that moving into the future as technology is concerned . I think of a battery for a car as a ring i would pick up and carry it around. Volt, h tesla and the the battery is a whole new game. It is a game that will leave all. There is a characterization of the new technology that it will revolutionize the market. I think it will evolve and we will be a big part of that. Think ofn you batteries, you think of one in your car and thats where we are. Good stuff. Johnson controls, the biggest automaker supplier out there. How big is this company . I follow this industry pretty closely. I am the car guru. 170,000 employees. It is bigger than i thought. Bigger than mcdonalds. Its huge. Thank you so much for joining me. It is sad to see the 12 days of bitcoin and. Thats tomorrow. I will be on later to tell you about alternative coins. We had a snafu on friday when adams bitcoin got broken into. I cannot wait. Tomorrow is the 12 day. When we come back, for all of you waiting for santa claus to write back to you, that longform correspondence, and it is stressing you out, it is time to get your appon, santa apps, of course. This is market makers, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Forsuper fuel viewers super cool viewers, we are on apple tv. Have you been naughty or nice this year . There is an app for that. It is called the portable north pole and is a leader in the s anta aoo business. Login info and you get a customized message from santa himself. Hello, stephanie. Its good to see you. I am glad you have not forgotten your old friends santa claus. By the way, i received a letter from one of your colleagues. What a remarkable person. To know if you will be on my nice list this year. Ah, there you are. Have the best smile. I have not been on the nice list for a few years but it never stops santa from coming down my chimney. For more on these apps lets bring in alex girard. Welcome, how did all of this business come to be . I live in an oldschool house where letters are written and mailed and delivered but we have not used their computer once. When did santa become digital . We started this application back in 2008. We started first with a website and there were traditional letters for santa but with the new generation, they are usually very tech savvy. Create a first line video message directly from the computer to the kids. How do you make money . We have had the website since 2008. It is called portable north pole. Com. How does it work . Go there and there is a free version of the app and go through the forms. Fill in some questions. There is up to 17 elements of personalization. How do you cash in . The free version is good because it gets viral and people like it. We have a premium version. Good for a family like you who has lots of kids. You can have more segments and for some allies more things with more pictures and personalize more things with more pictures. That is the premium version. Christmas comes but one day per year. How do you make money the rest of the year . There is lots of work to prepare all this year after year. Newave been creating a production year after year. After the season when people enjoy their video, the family wants to keep it so after the season, we offer you to download it as a keepsake. Discovered the kids like to watch their video in july. We sell the download version. Some birthday video messages from santa. Are you targeting any other holidays . Thats a good theme for us in the future. We have been so busy with the supplication, to be honest, we started this and we have been busy since 2008 with more than 80 million personalized videos being created. How do you stand out . Whats so special about the north pole . We have been dedicated to this christmas app starting with the website and now we have a mobile version. Thiso have a new game whichlled santa sprint is popular. We also have an eshop. We can have a customized personal letter as well. Its too late for me to do that one. We have two left and can still go on the website. Definitely, i better get on it, congratulations and thank you so much. He is the ceo of yougroup media. Portable north pole. Com. i will be honored today at 12 01. When we come back, we have more time i will take you to off the charts. 342 checks in the Boston Harbor and a wing of the Republican Party takes its name for that event. If there is no love 14 across these states, scarlet fu joins us with this mornings off the charts. Are you on the north pole. Com app . I have to check it out. You keep it real. You are hardcore. Do you drink coffee or tea . I dont really drink either. Me neither but apparently the u. S. Is a coffee nation. Weve got the historical ties to tea but that does not change our love for joe. Quotation today americans now drink three times more coffee than tea which is the reverse around the world. Their art three drinks of tea around the world compared to coffee. Coffee is the United States and parts of central and south america. South korea and the philippines is where the u. S. Has close ties are popular as well. Your average american says they cannot believe these numbers. We drink a ton of coffee here. Rest of thethe world especially the u. K. Where things have changed we were definitely a legacy of the u. K. Eating a former colony but we switched over to coffee. The rest of the u. K. Former colonies all drink coffee as well. Some people go out for a meal and drink green tea at the end. The idea of who drinks coffee and tea is a legacy of trade patterns that have shifted over the years. South korea and the philippines is where coffee beats out tea because of that ties to the United States. Giving your work schedule, you eat lunch at 8 00 a. M. What time do you drink coffee or tea . I dont drink either. The last time i drank tea was sleepy time tea at 7 00 p. M. Thank you so much. Makers will be back in a moment and making sure you keep up with the hottest toys. We will speak with the publisher of the toy insider. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. Apples new chinese connection. They will start selling the iphone. Success. For the company that ignored advertising and built a cult following for its tshirts. Ofwill talk to the ceo johnny cupcakes. Movie of the year comes up a little bit sure. This anchorman did not stick to the script. Welcome the market makers. Is braving the elements in canada for christmas. I am here all by my lonesome. I am going to turn to a tech story. Apple shares are soaring on news of the latest foray into china. More than 760 million appleibers 10 turn into customers in early 2014. Is this dealortant to apple . Important. Ry this is the worlds biggest carrier. Anytime you can add 750 million potential customers, it is a significant moment for the company. Appleis a huge market for , they are counting on it to reignite growth in the new year. Is this enough for apple to challenge samsung . You have to think about it differently than just market share. Apple is not going to catch samsung in terms of overall market share, but what theyre going after is the more wealthy customers, the most profitable customers who can afford an iphone. These are the customers that might be deciding between buying a Samsung Galaxy smartphone antonelli have the opportunity to get an iphone. Small these of the market, it is a profitable one and import and import one to both companies. Help us understand how small that pieces. When we hear 760 million china hazee users, dollar signs over our eyes. Morgan stanley did a survey and they looked at it and thought that apple could sell potentially 12 million iphones to china mobile next year. What china mobile subscribers. That is still a significant number. If there is 100 million or so potential smartphone customers, that is the size of a significant carrier in the u. S. Or europe. , ithen i look at the year was below 400. Were going to end the year around 600. What do we think for 2014 . It made sense to own it and not sell it, but what does apple need to do in 2014 to stay on this high track us mark high track . Is optimism that the company will return to Profit Growth in 2014. This deal will help show that. They put in a dividend, they have been buying back shares. Investors are starting to get a little bit more optimistic about the stock heading into the new year. That is why you have seen the runup. Could growth be on the product front . The growth we expect it was new apple product. Became addicted to it. Even more than that, it is slight modification. What should we expect in 2014 . Big questione around the company, what will be the next big ring. Big thing. A thinner ipad, a thinner iphone, bigger screen, smaller screen there. What is the next big thing . Are they going to do something in television, some sort of wearable device, something we havent thought of . Something that investors, analysts, and customers are going to be waiting to see. Thanks for joining us. I know i will be at the apple store before we get to the 25th. Thanks again, adam. I want to take you to washington, d. C. It is a big day for the Affordable Care act, even if the president is in hawaii. It is the last day to sign up for insurance if you want your coverage to start on january 1. Happensunderstand what if you cannot get into the website . Luck, are out of basically. Today is the day you have to sign up if you want to have insurance beginning january 1. The next deadline will be january 15 to have insurance starting february 1. There are a lot of question marks about what january 1 will look like. That is keeping white house and tend up at night to the shop to make sure that things run smoothly on january 1. The big question marks out there is what will the risks look like, are there going to be more insured than uninsured come january 1. That is something that insurers were counting on. Also, insurers are concerned about some of these changes that the administration has been making over the last several weeks. Chips away att the individual mandate and goes around a centerpiece of the law. You say the white house people are up that night. White house messaging has been that somebody people have begun to sign up. Is it enough for insurers . When numbers will make them fill comfortable . What numbers will make them feel comfortable . There are about a Million People enrolled right now, but that is below the 3. 3 Million People they had been hoping for. They are not telling us with the democratic have them look the demographics have been looking like. That is what insurers are looking for. That is why, when the white house announced that people who had lost and been dropped from their insurance plans starting january 1, when they announced that they would be able to get a hardship exemption, to not have to face penalties, or they could sign up for catastrophic coverage, that had insurers concerned. They were counting on those people signing up for fuller coverage. Lets fastforward to march 2014. What happens is not enough young people sign up . That is the centerpiece of the law. That is what it is based on. That is what white house officials are concerned about. Thatave a Democrat Warning if the costs, if we see a cost explosion and people are finding that these Health Care Plans they have signed up for is not what they expect, the law could crumble. He has already been pushing for a oneyear delay of that individual mandate. You talk to white house officials, they say no way. That you could start to hear democrats, especially those facing elections in the november midterm start to echo some of that language and messaging. The latest onor the rollout of the Affordable Care act. For the newsfeed. The top business stories from around the world. A texas ice cream store, more than two weeks ago, is still affecting holiday deliveries at ups. The storm shut down the companys operation for a total of three days. Ups called in 900 managers to help with the backlog of deliveries. It says packages that were guaranteed delivered before christmas should still make it. An unusually cold start to the new year will boost heating demand. Gas prices were up close three percent here in new york. An arbitrator has ruled that tiffanys must pay swatch 449 million in breach of a contract case. It is more than tiffany earned last year. The case involved an agreement the two companies had to develop and sell under the tiffany brand. It is day 11. I thought the 12 days was over. Day 11 of the 12 days of bitcoin. Matt miller, are you ready for it to be over . I dont think it will and. End. The 12 days of bitcoin will be over at bloomberg tomorrow. No spoilers. On friday, by the way, you have a couple of boys, and i brought a little process present for them. Walletse little bitcoin and you give them to the kids. They are old enough to work a computer and probably understand more than we do about bitcoin. This is the public key of the wallets. Inside this, if you unwrap these wallets from dont unwrap it. Let me show you what happens on friday. Friday, here you go. Trish, here you go. You will find a key on the inside. You can access that and load. Nto your wallet this is what i put on my phone if i want to buy or sell or whatever. I put this up on the computer, the computer reads it, knows to debit my account. That is basically the pin number to your account. What we learn on friday, this has been an incredible learning experience, but sometimes it is a little bit costly and you dont ever show that public key. The inside qr code, this is like a 20 bill, except in bitcoin form. Is a pin code and , he frozerom reddit that high death picture and nked that 20 worth of bitcoin off of adams wallet. I told him, great lesson in bitcoin security. Here is my Merry Christmas levinsohn. Lesson. Receive a bitcoin gift. I am like the afterthought. Really . Thanks, matt miller. You can keep them. You want to make me get first pick, you know where to find me. Too much hypeack, for the anchorman people . We are going to talk about the big weekend or not. You are watching market makers. Welcome back to market makers. I am stephanie ruhle. Beenovies have ever marketed as much as anchorman 2. That, the movie had a disappointing opening this weekend. It grossed 27 million. That was only good for second place behind the new hobbit film. Were going to bring in paul sweeney. Are you surprised by the performance this weekend . I remove are seeing the first anchorman and thinking eh. Onthey were counting wordofmouth to drive traffic. The 27, 20 8 million for the weekend, they were looking for more like 40 million to 45 million. It was not for lack of trying. Will ferrell was everywhere promoting the movie. The fact is, it is a very competitive time of year. This is the most competitive release window we have seen for christmas. They have the number to get to make it a success . When i think about will ferrell door,o went door to but its not like the studio was spending a ton of money. He was going on every random show, he was at a curling competition at an ice cream parlor. A goes back to the issue if you want to promote a movie, buy ads on thursday night to promote your movie. Are really are people really tuning in . What we are seeing out of a mix of is traditional broadcast Cable Television the tried and true way and a lot of internet advertising, wordofmouth, facebook, so on and so forth. Opening. Decent it probably grossed over 40 million from tuesday. The movie will do well. Opened at the best time to open, right before christmas. You have 10 days of heavy going movie going times. This is a movie that had a lot of legs. People think this will still do 100 million domestic and the kicker is going to be International Box offices. The first one do internationally . It is a cult classic in the u. S. In the first movie, do not translate. What has happened over the last several years, it is international more than 50 of an average moodys box office. When this movie was released, International Box office was not a big deal. As much as i love Veronica Corning stone, i also love snl. Have jimmy fallon, justin timberlake, dominating. How valuable has this franchise become . Take a look. So many great answers. So great, my man. [applause] timberlake is playing jimmy fallon. Jimmy loved it so much he could not even contain himself. This franchise has been a juggernaut for nbc. Might haveyear, they some down years every once in a while, but this is a show that has been on for over 25 years and continues to mint money for nbc and now for comcast. Atare people watching it 11 30 on a saturday night . On theit on a internet. How does that pay out for comcast . Time shifted viewing. The key thing is to try to get paid for the viewing no matter where it happens and when it happens. It is very important for nielsen to capture that viewing so nbc can turn around and sell advertising against it. They have done a good job. How . How do they caption the fact at 1 00 i watched that . They caption see three. Afterill caption viewing three days. Capture going to viewing for seven days. Amdo they know what i watching it on . They do a little bit. The tv networks no that most ansumers consume media on tablet, on the phone, on the go. Im sure i will be watching gibbskit and the barry talk show at least 11 more times before the new year. Thank you for joining us. When we come back, were going to talk about something my kids might care about. Finding the perfect toy. We are going to show you how the insiders do it. Any of our interviews, you can watch them on bloomberg tv on apple tv. It is a brandnew experience, featuring live, streaming, and ondemand videos. Stay with us. You are watching market makers. Mexicos economy has just had a watershed moment. That is today latin america report. The oilure opens industry to private drilling for the first time in over 75 years. Listed thethe credit grade to triple b plus. S ps lead analyst calls the energy bill a watershed moment. She said that once it kicks in, the new law will grow jumpstart growth and that is todays latin america report. It is time for bloomberg and me to take you on the markets. They are feeling the holiday spirit. In the green. All s p Industry Groups are rising except or consumer staples. Except for consumer staples. After reaching a deal to sell the iphone through china mobile. 5cy will sell the 5s and starting in january of next year. They have 763 million users, which is over twice the population of the United States. Of those consumers today afterlling the credit card Security Breach has become front and center. Chase bank has put limits on debit card use at target to preempt use of using stolen cards. When we come back, i will be speaking to the ceo johnny cupcakes. How he mixed up the hottest selling tshirts. This man knows one thing, branding. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. I am stephanie ruhle. You are watching market makers. I am way into this next one. Johnny cupcakes is a fashion brand with a colt like following. The company can pull in a crowd with a limitededition sale that rivals nikes air jordan. They spend the next to nothing on advertising. This is about cult branding. What is their recipe for success . With me is johnny earl. He is the creator and ceo johnny cupcakes. We met at a branding event. This is what you know best. Before we met, i thought you were another exclusive cotour highend cupcake store. Tell me about your business and where you got the name. I was working at a record shop and did not know what i wanted to do with the rest of my life. When i was late for work, they call me johnnycomelately. Johnny cupcakes came out of nowhere. I made a tshirt when i was getting short shirts made for the hardcore metal band that i was in. Of these slightly miserable customer started looking up and laughing and saying what is that . Is it a bakery, an adult movie store, its a funny weird name, i want one of those shirts. I made more shirts and the wordofmouth cap spreading. Before i knew it, i was selling them out of the trunk of my car. Popgan poking fun at culture and replacing icons will cupcakes on tshirts. Would be a plane dropping cupcakes instead of bombs. Then theres our famous logo. That pokes fun at all of the tough guys with the skull and ross bowen shirts. I could not believe it as it took off. It turned into a fulltime thing. Do you have peoples coming into your store thinking it is a bakery . The stores do not sell food. But when you come in, you see the refrigerators, you smell frosting. Vanilla scented i air vanilla scented fresheners behind picture frames. Half by shirts and the other half leave with a story too short to share. Terrible reviews on some of the food rep sites. Parkinge are paying for and they say lets go to companies cupcakes after dinner and they walk into my tshirt company and they look around and there are no cupcakes at all. It is just tshirts. Talk about the fact that they are limitededition. Clearly, you want to mass produce and sell a lot. What is the trick between making a limitededition. It is creating an experience with it. Of the time, we do not print them again. Some people get the logo tattooed. I have seen over a thousand people with my tattoo. How did you create this . They cant just be im a pretty rad guy. Cool and nobody is tattooing my name anywhere on themselves. I was freaked out when i first heard out heard about it. I do a lot of lectures at high schools and universities and events on entrepreneurship. Some people get the logo because they are inspired. Some people arent obsessed with the tshirts. How many styles have you made . Every two weeks we come out with new tshirts. Is that too many . Does it lose the specialist the specialness . Absolutely not. We do 4 million in sales and we are still a private company. We come up with innovative raise ways to grow. We have about 40 employees. Five retail stores. Marthas vineyard . Rocker wall, heavy metal. Marthas vineyard feels nantucket resume. Is this irony . Thats where they met and fell in love. We thought it would be a cool way to pay homage to that. It is a little weird and a little off, but it is been a great turnout, especially in the summer. That myre going to win two son. Withave a partnership the teenage mutant Ninja Turtles. How does this work . They called me themselves. Donatello called. I couldnt hear him because he was in the sewer. Nickelodeon wanted to collaborate with us because they see the Value Proposition of our brands being this excitement, this thing that a lot of millennials are obsessed with and that they want that excitement. They want the lines of people, the tattoos. When i was longer, i never nickelodeon wants tattoos . They want to expand into other markets. You are going to have this partnership and what are you going to do . We are releasing tshirts. We did one part where the Ninja Turtles came out to our london shop. Anytime we do a they came out of the sewer and went to your london shop . They did. An amazing story. If that is not an extraordinary entrepreneurship tale, i dont know what is. When we come back, president obama faces the decision over the keystone pipeline. We will tell you about potential winners and if there are winners, there has to be big losers. You are watching bloomberg tv. Stay with us. We will be back in a few. One of the biggest issues facing president obama will be to let the keystone pipework pipeline move forward. Transcanada wants to build itline that would connect the canadian to the gulf coast. It will have met ramifications for the environment. An hughes breakdowns breaks down the winter and the losers. Oil to the pump refineries on the u. S. Gulf coast. If the pipeline is approved, what does that mean for jobs . About 42,000e direct and indirect jobs during the twoyear building phase. Almost 4000 are pipeline construction jobs. To pipeline is only expected create 35 permanent jobs. Profits, a razor thin profit for oil companies. Recent shale Bloom Movement created a glut of oil in the United States. If the oil from the tar sands can make it to the gulf coast, a kurt it competes against the mexican crude benchmark. The 20 premium does not necessarily mean big profit. Canadas heavy crude is the most expensive to produce. It needs to fetch 65 per barrel to break even. Add in transport costs tom a including extra lubricants to get it through the pipeline. The profit drops to 5. 50 a barrel. If the pipeline does not get approved, who are the winners and losers . Of thenada, owner proposed pipeline, stands to lose a lot. They have 2. 3 billion dollars into the keystone project. Suncor energy, conoco phillips, they could also face hurdles getting their product to market. The next best option, railroads. Is,000 barrels of oil a day moved by train to cant from canada. Rail is much pricier than the pipeline. That means real investors could win big. The longer the pipeline gets pushed back, the higher the demand for rail. Megan is going to join me from washington. When is this going to be made . I feel like we are talking about and i dont know when the end date is. Nobody does. The next step we are waiting for is the final environmental assessment. We expected a final decision somewhere around march, but he also said in that same breath that he would not be surprised if the administration didnt just kick it to the next administration. There is some frustration there. The fact of the Company Started this process back in 2008, even if it does get approved, it will take two years to build. Were talking 2016 at the earliest. Is the environment the deciding factor . It is a big factor. That is what the Obama Administration has said was going to be the threshold of making this decision. That is what the state department has been focusing on. Released its environmental report back in march and they said that the Environmental Concern isnt necessarily the pipeline, it is the extraction of getting this oil out of the tar sands and all of the Greenhouse Gases and Carbon Dioxide emissions that come from that. Is ideas that the pipeline going to create demand in all of israel and all the rail expansion that we have seen has proven that there is demand without the pipeline. Saw from thewe state department. Environmentalist from the epa do not agree with that. Thank you for doing us the latest on the keystone pipeline. When we come back, were going to be speaking about toys. What is the next big thing . They are on social media. We will speak with the publisher of the toy insider. You are watching market makers. On bloomberg television. Stay here. If you are on the lookout for the next big trend in toys, the one and only team at the toy insider says all you have to do is turn to social media. Toys are coming to market in new ways thanks to youtube and facebook. The toy insider is with us. I feel like i am constantly chasing, looking at magazines, trying to figure out what are the hot toys. If i ask my children, they would tell me everything. They know. It was about how toymakers brought the toys to market. It is either inhouse developers that are creating toys or inventors that are dead. Social media is playing a big role and how toys are coming to market. We were just talking about the rainbow loan. Loom. It was developed by a dad, his wife, and his two daughters. They started putting tutorials on youtube. Once they did that, they could not keep up with the sales coming out of their house. People start to say follow me on youtube . Everything is when they want it on the computer. Medias why the social aspect of it is so interesting. Once they put that on youtube, there was a following. Couldnt keep up with the orders. Michaels arts and crafts found them. S at theas these toy shelf, it was sold out. They had a builtin market. Anther example, there was eccentric inventor and he created a 12 foot giant robot and he called it the giant robot project. He started having a cult following on youtube. A attracted the attention of u. K. Toy company. They collaborated in the created the attack that the attack nid. Sneak peek video on youtube, over 2 million the downloads. Memo we have seen mine craft. For those who of us who are saying we dont want to just buy toys, some of these games have gone off the computer. You have this game developed and in one of the modes, people can build. It is 3d cubes that they are building with and they are creating things. They started screening creating skyscrapers and worlds and they started sharing it on youtube. One of the fans was the 10 or 11yearold of a toy company. He introduced them to mine craft and they were like, oh my god, what they did was reached out and now they have papercraft. Paper,s are taking the folding it, making the cubes, and creating all of the same kinds of things that they would do in the videogame, but theyre doing it as a craft. Hearing you say small toy company. Companies phone the larger Toy Companies have inhouse development or they use outside inventors. Most of the big stores are coming from the smaller ones. The small ones are winning this christmas. We will be back. That is it for todays market makers. Tomorrow, we will be sitting down with the billionaire that was released after 10 years in prison. We will hear from him. That sound like a big interview you do not want to miss. Is 56 past the hour, bloomberg is taking you on the markets. Olivia sterns has more. It is time for options. You have twitter in your portfolio and you want to squeeze out a little more profit, i have a man that has a plan for you. Has two trades for us. Lets start with the basics from twitter. Here is a stock that has doubled since its ipo last month. It is still not making any profit. Why do you want to be long on the stock . We are constructive on the stock. It is covered by rob sanderson. He believes it has the strongest of fundamental is this momentum fundamental business momentum. It has a number of drivers that could accelerate that. There are plenty of reasons to be positive on the longerterm on twitter. Just to frame it a little bit, implied volatility is almost 70. Compare that to facebook and linkedin which are about 25 volatility points lower. Fact that in late january, early february, twitter will report their First Quarter as a public company. There is inherent risk in that as far as how they communicate and that is an event we would like to hedge out if we are sitting here long the stock. Pamela was the First Options . There are no earnings that impact the straight. What we want to do is take advantage of implied volatility , now that the stock is up 140 since the ipo. With twitter around 61, we want to sell a 61. 5 call. It is covered. We already long the stock and we would be committing to selling a stock about 14 higher in four weeks if the underlying is above 67. 5. If not, we pocket about 2. 5 annual. What about the second play . The First Quarter is a public company. The important metrics will be on revenue. Users, if they were to whistle on both, we see risk down to the or so. There is Downside Risk to this. The stock is trading 30 times and senses 2014 sales. That is rich by any measure. What want to do in this position is sell a call out in february that will capture earnings and turn around and use that premium , 48 putase a 57. 5 spread. Thisre getting paid to put position on. You risk down to high 40s or so if they do miss on revenue and user metrics. If you have enjoyed the gains in the stock, why not put it on a free edge . Why not just buy more calls . We see this risk. Stock of 140 , 50 just in september. Josh just in december. We are very bullish on this name. It just makes a lot of sense to us to hedge out risks into their firstquarter reporting as a public company. Theou are focused into First Quarter. These are january and february calls. Any interest in playing options on twitter further out . We will see with the quarter looks like and then we will turn around and devise our next plan. For the time being, we are focused on the First Quarter. Thank you for joining us. Also want to take a quick check on the markets to show you where they are trading right now. At the s phigher and aware extending gains after reporting record highs on friday. And the s p is up. You can ceos are creeping up slightly on the 10 year. The 10 year yield trading pretty much close to where wasnt set temper. In september. S finally, quick check on what is happening on the gold markets. Gold is trading below 1200. More in 30 minutes. Welcome to lunch money. We try to get the best stories, interviews, i am adam johnson. We are in the final hours of the Holiday Shopping spree. Keepd card, you better your bitcoin safe. I learned the hard way. Rodman is returning to north korea, but do not call him an ambassador. Private equities in the market for homes as it turns out hundreds of thousands of them. A wolf has come to wall street