Are you feeling . Outside. 19 degrees freezing. Brutal. Lets go to our big picture, the free charge you need to see to let you know kekua what is happening. Look at the s p 500. We may be able to eke out a positive day, which will be the first time in past 40 that will will be up we will be up. Back to the flat line. Taking a look at the dollar index, it has generally been up today, right now also flat. We have the fed meeting next week, tuesday and. If in fact what we see this week is better from gdp to retail sales to play with, the fed might taper sundar. You would have the dollar rallied off off of that, that is what has been keeping it on a flat line today. I know you are a commodities gallant heart. Crude oil is down today. . 96. Down almost a dollar over the last two weeks group has rallied several dollars. Now the big three stocks to watch into the close, let go to olivia sterns. Lets start with adobe, shares up almost 12 . This is a news that the company signed up online subscribers in a faster clip than analysts subscribers analysts projected. As more more people move to using clout software. We also have shares at texas industries, those shares up by 11 . Texas industries is looking to put itself up for sale of a were hearing that theyre working with citigroup on trying to find a potential buyer. One person million billy with the deal has told us that potential suitors include u. S. Rivals. The game maker behind bestsellers like the call of duty, up 5. 5 . Is huge, simply this is the first gain on the month in nearly two years. This comes after both microsoft and sony came out with new consoles. Pretty sure matt miller bought one of those. Im quite certain. We will see you again at the close. Now onto to our big story. Twitter going behind 140 characters to trading at toys of ipo price. The company upset users last night when it converted it block function into a mute function. It fixed it before midnight last night. It is expanding its Member Profile kind of like facebook. Out there are changes. We are joined by cory johnson, bloomberg west editor at large about the ceo of Global Social media etf, and the internet analyst. Why so much change . Over the last nerdy days about or over the last two years, what we have seen in a survey we did this morning was a real market increase in advertiser interest in twitter. Specifically, we surveyed about 900 online marketers and found that 50 to 60 in teased increase their spend with butter. Only 4. 5 plan to decrease. What you are having is in advertiser embracing of twitter, that is why the stock is moving higher. Do you think that this thing thing is going to work . By any outdie for there. I the twitter sphere, you and sort of freaked out about they were, while they spent a long time trying to make this change, they made a change and turned on the time to correct it. This happened at about the same time the qualcomm guys decided that they would make a quick turn on a dime and make their guy the ceo. I see both Companies Really fixing problems before they got to be too big. Do you think it is going to work . Yes. Dell a very early stage company, both in terms of operates for consumers, and also offers for advertisers. They mistake we have seen it a few times made in the past, they want to be very careful about valuation here. Were going to see more innovations to the next six month and if we do not see more, this stock will correct. About suckers, it wasnt about trying to make used, itally easily was all about ad revenue. And twitter feeds, loosening the restrictions, so they could boost revenue. The whole reason you want to block the block function. You have your hands of lots of social media pies. Talk to investors, what is their biggest concern about this group of stocks . Beenearly, we have invested in the market for quite a bit of time. Valuation is becoming an issue. It is gone up tremendously over the last year. 26 times forward earnings, they are worried about that . I do not want to say that they are worried, they are looking at valuations close to leak to this is is exceeding under the same business model. Billy, valuation clearly valuations is a issue. Any changes to the growth projections are going to create a lot of volatility in the pricing. You do the same thing with twitter that you did with facebook. You do not buy it on the open, you actually waited a few days. In facebook, you waited a quite a waited quite welcome when that proved prudent. Why in each of these cases did you wait . Ourhat we wanted to do with sf axis to the complete social media space globally, and when space, we saw it toes a deep days for it process. When you wait, you see the speculator started, and the longterm investor start to come in. Tenduy them at prices that to be more reflective of a long term bow use. We treat all the time, please corytv. At 59th time sales, there is no cash flow that they are growing the business with a goal that they do not have to do that right now. Reallyn, which is a interesting business, the valuations are so skyhigh. What do you do . You are running an etf on some level. We absolutely care. We want to offer access to investors, but we want to act investors to do well. It is a little bit of a binary event. If the committee does area well and and lamenting, you could do well in your investment. You could lose a lot of money as well. The benefit of an etf is it provides diversified axis, not only to the u. S. Social media names, but to the credited world. Cap been a need to lose money is on the rising to today you just raised your right target on twitter to 60. You also had a price target of the 60 on this book on facebook. Why the raise . There is a very different set up on twitter then facebook. Twitter came out with twitter zero ad revenue, and that is the single biggest trend going on in internet revenue i. Facebook recommend until that thing corrected down to 20. Twitter came out and it solved mobile. That made it safer. The second major trade that trends that they played in, it looks to us like all of them are trading online. This is not a back up the truck by, but the Valuation Case can be made. It is the highest Global Growth in the internet section, and has the highest earning rate two. Too. They presented some nongap earnings numbers, dripping out , do you think those numbers are appropriate . . Dca pastor profitability do you see a path to profitability . This is extremely obvious. Copies with a percent growth margins are able to develop longterm. They do not need to spend a lot of money on marketing to bringing consumers. Those committees will generate a percent to 40 , 50 options. In facebook, that is where the company is already, even on a pure gap cases. I am almost certain that is what twitter will get to longterm of us know that means you have a triple digit Revenue Growth but he just company but that is unusual earnings power. September, 800 50 million, the whole reason for buying it was to try to put ads on mobile. How do you is working . That was a playoff for mobile ad revenue. There is still plenty eunice lynch of twitter on its own site , programmable devices that they monetize. They are still hardly stage there. One little data point about in germany, twitter has won ad salesperson on the ground, and that is a pretty big gdp comedy to have one salesperson. Monetization efforts are still very early. In these kind of deals, we are going to get a lot of exposure, will probably take a year to really prove that deal. It makes a ton of sense strategically, whether the numbers work out or not. If you look forward, and maybe you take us out three to five years, revenues this year around 640 million, what is the revenue in five years . I think this company can sustain, and will probably get ready closer doubledigit growth thenhe next year, and you will see a gradual deceleration in the growth rate. They should be able to generate 5 billion or 6 billion in a fiveyear timeframe. That is what you said see. More portly, you will see Earnings Growth dramatically higher than the Revenue Growth, because we will see scale in this business. That certainly gets my attention. Valuation or not. Conversation, thank you for being here. If you like the dollar, youre going to love u. S. Stocks. That is todays insight in action. Plus, we have an exclusive interview with the ceo of airbus. Find out what he said about the comedys battle with boeing. More street smart after the break. Like the dollar ahead of next week that meeting, youre going to love u. S. Stocks. Im for insight and action. Let me show you what you we are talking about. First of all, there is the dollar. We are looking at the dollar over the course of the past year. Looking at how the dollar rallied when we were talking paper, and has cents sold off when we talk about no taper. That means because the that is going to keep putting dollars into the market, it debate devalues the dollar. That is about to change when the fed meets. Heres a chart that looks very similar to this one. Up, and the way back down. This is what were looking at. The priceperformance of Domestic Companies versus big exporters within the s p 500. And other words, there are 105 companies in the s p 500 that sell only within the u. S. , there are 395 that fell globally. When the dollar rallies, those to rustic only companies and if it. When the dollar falls, it makes our goods cheaper, so the exporters do well. Domestics when is the ratio goes up, domestics losing at the ratio goes down. If we combined the dollar with that chart, and i want to thank our friends over at this poker doing this, it is very similar, a tight correlation. The dollar goes up, the domestics win. The dollar goes down, the exporters when. Next week, were going to get some sort of indication about tapering. 34 believe that we are going to get some sort of indication of a taper, up from 60 last month. Too many for me to go through, im going to post all of the tickers on twitter in the next commercial break. If the fed comes up next week and announces a taper, or says there is going to be sooner taper, it is the Company Selling here to benefit if the dollar goes up. Looks clothes or says he cheap, and who does not like a discount . September,he took in by the end of next year the s p 19. 50. At 90. 50 earnings yields have really tracked bond yields, but that has rocha down over the next last few years. Really broke down with when europe started to come under pressure. What weve seen over the last couple of years, year and a half, youre starting to see the value of stocks and the value of bonds a getting to come back together. Just of the in perspective, stocks can rally Something Like 20 to 25 and still not look expensive relative to the cost of bonds. When you think about it, that stock and hold that discount, and bond yields are really the discount rate that applied to stocks. Why can yields of bonds just follow . Fall . They had someplace in the middle. But with stocks under 15 right now we think it can easily be somewhere were sick stocks are a 60 multiple 16 multiple. That is the multiple expansion argument. It is cheap compared to the cost of capital, to bonds, to other things. Theres a second chart that you brought, of the pe right now about 14. 1 times versus the imaginepe of that, 14. 1. We are at a reasonable valuation. Getsreally hate when he compared on average, because you have a range that is gone from six to 25. Theres a lot in between their, but a stunned history, were not even in the ballpark of thinking bubble or concern. We think about valuation alone. Think is Retail Investors need to back into the market push these indices higher. Be can see why there would fear in that demographic. Im not sure you need to get retail nesters, but it is these, when weut turned into two thousand 13, Mutual Fund Flow started to turn positive for Retail Investors. You now do have positive flows of a from the general public. About that. The little guy, that basically got crushed in 2009, 2000 10, 2011. And now this year, with the market coming some kind of return. Normally what happens is the Retail Investors come in right before the market rolled over. I think if we have a slow recovery, which is what this looks like, it is more likely to be extended for a number of years. The result is that the Retail Investor may actually benefit for a chunk out of extended rally, which could be good news. Hoping. Coming up, boeing flies into airbus territory. Trade in our pilot have firstinning will action. It has been a huge week for gm, does that mean it is time to buy . In todays local outlook come a jet battles. As canadas just drop airbus the carrier for jets. The ceo of airbus does not seem too worried, in an exclusive interview with bloomberg he says that orders keep coming in. 1040e already at 100 aircrafts shoal at the end of sold at the end of november. We have growth. Where is that growth coming from . China, middle east, two times traffic. The battle continues. Im fascinated by that argument that buys the population accelerates, you need the bigger plane. I not think thats not not contact, but it makes sense. There is a trickledown gm has had a killer week. Should you bet on a new air at gm . Free to plant. Three ways to play it. This was an epic week for General Motors. With a years worth of headlines in five days. That gm announced the ceo becoming be next woman first woman as they had of a hot carmake r. Near an alltime high, so how does all of this change affect the future for gm . Caldwell with the study, and sean hyman with the trend. Week forever seen a one company this crazy . We saw some pretty crazy stuff during summer break absurd times, but during the breaks but gm isimes, really in a dramatic transition now as he wraps up his tenure. He had to pull ahead his departure because of his wifes battle with cancer. He is making changes left and right. Pulling chevy out of europe, and Everything Else you been mentioned. It has been a really transformational time as he tried to finish the bankruptcy. Gm didnt have a chance to restructure completely in its pay griffey because it was so quick. There were more things that need to be done, trying to get the ball diane so we can head off i cleaned gm to mary barra. This whole notion of really coming back to the u. S. , adding brady not selling chevy, what you make of all that . Is definitely representing a new era in General Motors gave the government got out of ownership, theres going to be a new ceo, they clean house everywhere around the world. I think he with your code that is a big problem. Europe sales were better than they were, but that is not shall thats saying much. The effort there was really needed to make that in the future a better financial prospect that it is right now. Mary barra will be taking over the reins and a couple of months. Obviously, she is a longtime veteran and very active already. What you think is at the top of her dual to do list . She had a lot of things to do. Continuing this cleaning of the house is going to go on for a while. Of the big one is just maintaining the midterm. Have a money in r d, and made in the probability that they have had recently. Cleaning up europe was a big thing of and keep throwing themselves into china. She has a lengthy of things to do right now. Sean hyman, as you look at the stocks, it iis kinda tricky, as it is hard to make of the charts like that. What do you see . I am cautious are a few reasons. We see gm on the weekly four year chart on him in 2011, and early 2012. Target of us a rice nearly 37 per share. They spent the next year and a half getting their. Right now they are so far away from their trendline, that it really needs to close that to to the tune of 37 dollars 34. That would be a 50 correction. It is in dire need of or correction that will become interesting to the traitor. For the gm investor, i would avoid it altogether because i think about two thirds of the uptrend is already gone. Call. T is quite a as i look at the earnings estimates, 36 is the subject of growth for next year going from 339 to 461 next year. As someone who knows detroit intimately, what is happening on the ground with the auto business, rick six percent growth, how realistic is that 36 growth, how realistic is that . Gmnext year is the year were has a lot of new vehicles out, and most important leave their new Chevy Silverado pickup, and sierra pickup. These are the moneymaking pickups, and combined they sell the silverado is the second product in america. They have the opportunity to make some hay next year. Theyre wellpositioned to have a good year by their hitting a sweet spot. Jessica, you are nodding. Im. I think of as he mentioned, those of the moneymaker vehicles. The silverado, the sierra, that high profitability. People are paying so much more for trucks than they ever have in the past. They are not your basic things that you do for guarding. Re is so much confident content in them, and that is would help the gm bottom line. Some of these suvs youre talking about, these are 55,000 cars. Gm might be that pricing itself out of the market . We are still tried to grow this economy. Theres a lot of that demand for suv and truck sales. But people out there are demanding content. They see all of these cool features like real backup camera rear backup camera, and it doesnt matter if youre having a small car or a vague and cv or pickup, people wanting these options. They are paying for them. They sure are. That is a fine looking car. Jamie, jessica, chandra they get for being here. Some americans are clueless about bitcoin. The 12 days of bitcoin coming up on street smart. Going for has a lot it these days. The prices back up, more places as gupta for payment, but does that mean more people actually know what it is . Megan hughes joins us with more as part of our 12 days of bitcoin. Im a little hazy on bitcoin, what do the polls show . We know that it can be used to buy tshirts, too many more things. Many people do not know how to use it, but more people do not know what it is. A phone survey from the summer six through december and night, people were asked what it was, and six percent had no idea at all two percent did not did know it was a Virtual Currency, and six percent thought it was a new iphone app, another six percent but i was a xbox game. Join for a little bit. A couple other interesting things on this bull. Of those who had heard of bitcoin, a lot of them had heard from the second world busts busts. D they associated with a criminal think. G. That is a little more than i might have thought. The respondents were asked about regulating bitcoin. What was their response . Talking about in europe, but they were also consider it here. It is starting to get somebody senior in washington. , 46 of theres pundits said there should be 45 of the respondents said there should be regulations, 39 said no. Almost half of those who knew what it quite was said it should not be regulated. Mary jo white issued a letter back in august saying that urrancy could be subject to sec regulation. That is something were going to see play out here in washington over the next year. I wonder if they were libertarians. Thank you so much, megan hughes. The Virtual Currency also comes with a ton of security challenges. Security adviser Richard Falcon rent joins us with more. If you had to pick the single greatest risk at bitcoin poses, what would it be . Facilitates crime, topit provides a way for rugby, weapons, what have u you to move around the World Without regulation. It seems that china, norway, and europe seem to understand that. They are striding away from his this using bitcoin, but the u. S. Is not. What are we missing . White isary jo talking about is regulating it as an asset. Bitcoin asset that you sell back to some of them and then bill the return. It is a separate matter if you regulated as a currency. The different agencies involved in different issues, the u. S. Approach is to only regulate the middleman. The people who translate it point assets bitcoin assets into real dollars, yen, whenever you have. Not the people are doing a peer to peer in a virtual world. It is a very subtle the stage one. Ut it is an important suffered ly sovereign. This is something i cannot wrap my head around. That coin is supposed to be appealing because it is anonymous. As people start to transact, they have to create these wallets. There is an electronic trail. Even as youre transferring, there is still some piece of electronic data out there. Why is that not trackable . It is trackable if you possess the physical server that has the wallet. That is incredible thing about it. The burden here is on the end user. This is a peer to peer architecture. It does not have a centralized administrator, peertopeer is a crowd sourced way. It is not stored on a central server . It is stored on many different servers who basically store centralized ledgers of what are valid bitcoins. The part that makes a bitcoin useful as a currency is stored on your computer. If you have access to that computer, and you can decrypt the file, you could deduce where it comes from. If you dont commit is just an anonymous ip address that is hard to track. He could go one with this, so we will see you next week for days six through 12 of our bitcoin, we have seven days left to go. Funds,e traded some of the year possibly get loses, perhaps theyre ready for a big bounce. What is the top of your list do for a bounce. One etf is the emerging markets etf. The rising story of middle class, it is cliche at this point, but there is a lot of data behind it. The etf survives the wackiness here. Him new assets this year , only one of the eds is to stay above water. Im watching this as we go forward, and another one is china. China has not done that bad, but the global china consumer, back to that story. Three zalicus one is if youre fxi, you would want to go and get those stocks. This may be a good accent onto your exposure. Not as much as the tech sector, but that is too high flying in makes me nervous. And finally, this one is for this is a wildcard. Every year, the worst of list has some that are on the next years best of list. When it bounces, it bounces way higher than gdp. These are smaller miners, right . Minors, right. This is as hated this year as solar energy was last year at this time, and we know what happened to solar. Ishares 123 treasury bond etf trade if youre feeling the markets are frothy, you want to take some profits toward the holidays, you put it in here. It is yielding about 25 basis points, that is pretty but nothing, but it is three to five times more than the money market mutual fund. These are part of the eds that yielded little more than the money markets that are safe. An 8 billion etf. I like it. Our thanks. Lines. Look at these one of them describes the economy right now. Do you want to guess which one it is . We will be right back with chart attack. Attack, we weart have a couple of charts that will make you smarter. Unapologetic bull, and you have a couple of ch arts. The first one talks about the direction of the economy, which has been really weak. The economy has been going at about half the pace of their covering for four years in. What it does is it eats the fed printing money, and buying bonds, and he keeps the fed engaged. What you want to see is an upturn in that weak economy. We are beginning to see that. That is dramatic. Our recovery, it is way below trend, if you look at the other recessions we have seen. Quick it is the worst recession since the great depression, and the weakest recovery on top of that. Lowis week off the no point, and that is why the fed is printing money. You have a little bit of a crystal ball into the future. Youre looking at isn data, and extrapolating what it means for gdp . You want to find some thing that tells you where the world is going, and isn leaves the general economy by about four to six months. What you see is that the last ive isn readings have been really strong, which tell you that you have an economy that is going to look between now and june that is going to pop up. Isn manufacturing is artie started to turn up, whereas gdp is still right now rented we found out that gdp and Third Quarter was 3. 6 . We are doing better. Past gdp was a bit of a head to stake because of all the positive inventory. Were going to see better inventory the next couple of quarters, they really should be a help for the market. Glad you are worth us today with us today. We have the top 10 stocks you need to know, the closes next on street smart. If you missed everything that happened during todays session, do not worry. We have you covered. Were going to get you caught up on the only start you need to know. To die time for the top 10. The company says it has signed up more online subscribers than some analysts have pretty good in the fourth quarter. The largest maker of Graphic Design software on the slumping market. United technology. Saysndustrial giant revenue next year will probably fall below estimates. U. S. Government sales, and changes that analysts temper. Replacing a leader who was once considered a contender to succeed him. The business will be let into two units. The stock lower as a judge rules that the company may have to pay into a case on a number six, were going gaming. U. S. Sales ofrts video games and hardware just 58 in november from the prior year. At the same time, battlefield and call of duty have sold reasonably well. Number five, time warner cable, up about. 5 . According to a person with knowledge of the matter, it will as early asnd stock next week. This is interesting, because the cable industry overall has been in a time of consolidation, but a lot of analysts are warning that they have to be careful not to pay too much for time warner cable, because it is losing so many video subscribers. Time warner is really devoted to premiums. There are goodlooking views conflicting views. Youre renting too many movies. , charter itself is trading at about seven times. Olivia. Electric,r, general shares are up more than one percent, it raises its Quarterly Dividend by 60 . As a record as of the close of business. Seeing coflat after ceo will step down to lead lucky brand. He will continue to serve as a member of the board, and remain a Significant Shareholder in the company. Have you tried them . A fluffy ones . They are my favorite. Flash Company Makes its debut on the new york Stock Exchange. An interview with the ceo coming up here on street smart. Motors, shares are up a fraction today after an epic week for the company. Governor government unloaded the last of its stake in the company. Ceo of the company ipo today, and we will be joined by the ceo. Meanwhile, we finished flat on the dale day. It was 34 days of losses. The s p was down. E were down 2. 0 ful olivia sterns, what do you notice . The s p has dropped the most since august. We have seen data coming out, last week the jobs report was up. Then we had those huge retail numbers out yesterday. After two years, we finally got a budget deal out of washington. That assumes that the senate actually approves it next week. Will being we will see. But the same number of democrats and republicans voted for in the house. That is a good sign. But we have to see how soon they will taper. Exactly. Investors are weighing the odds that the fed will start to taper next week. According to the latest survey done by bloomberg of economist, 33 of economists believe that the fed might reduce the bond purchases at that meeting next week. Roundup, olivia looks good at that screen wearing her orange dress. Its red. Oh, its red. Excuse me. Stock gm why one gmy. They were on mice show this week. Coincidence . I think not. It is a subsidiary. It is now a new company and doing very well. It is moving up in the marketplace. Lets talk about the management chain. We have a flight risk here. Qualcomms chief operating officer got promoted. He is going to become the ceo of qualcomm on march 4. This move marks the first time in nearly three decades that they picked a leader from outside the founding family. Him out as a replacement for steve ballmer. What is interesting is how fast qualcomm made this move. They have been talking about this. You do not make a move that fast. We like to think that is the case but they have been doing this for a wild. Operatingchief officer of that company. It is an important thing. He is running every aspect of the operations. When these people start to leave, you have that brain drain on the company, it does affect the stock and the value of the company. Why is microsoft taking so long to find a new ceo . It is not a long time. It usually takes over one year on the average ceo change. Before we know it, it will get leaked out before anyone wants it done. Now we have the top candidates. We are getting down to a three person race. From thee someone inside or someone from nokia . This is one of the worlds most valuable Tech Companies. It is normal that they are taking their time. I will give you that. Is renewingwhile their wedding vows with the nfl. The sunday ticket has been carried on directv for 20 years and they plan to extend that relationship with a multiyear deal that should be announced this month. Last year, 2 million sunday directv customers paid for sunday ticket. About 50 aat month. It is not cheap, but it is worth it. The current agreement expires at the end of 2014. It is awesome to think of watching any and every nfl game whenever you want because you are watching them live no matter where you are. If you are a new york and the giants games on, you are watching the giants. I want to read the fine print on this agreement. I want to see what the rights are. A 20 Year Agreement would be crazy. I want to see with the online rights are. Does a give somebody a chance to come in and grab those, like google . That is what i want to know. These Tech Companies are competing to try to deliver tv over the internet. That will be a big threat to traditional providers. That is where the young people are starting to watch. That is where i am starting to watch. I want to see another game at any given time, that is what i want. Iwatch literally bloomberg tv on my iphone. It is not shameless, it is what i do. Watch it well i am walking down lexington avenue on my way to work. Every station isnt making tv live and on the iphone, i dont know. Dont be watching us what you are walking or driving. Thank you very much. Bloomberg tv does have a new app on apple tv. I want to know how much that cost. It is a lot. We are moving on to beyonce. She dropped her latest album and it came out with no promotion whatsoever and no warning. The selftitled album debuted at was italy on itunes and there are a staggering 17 videos. It is known as a visual album. Her husband jayz features. Fans rushed to download the album. How can you make 17 music videos and it does not get out in any way . There had been leaks. There were rumors that this album was held up. I think the real story here is the brilliance of this move. More importantly, no marketing whatsoever. She doesnt need it. Should let this wedge and her fan base she flips the switch and her fan base goes crazy. You have aial media, couple million followers and you put the word out, it is out everywhere. Daughter also makes a cameo in this as well. That is cool. Speaking of the power of social media, beyonce posted a video explaining why she chose to make a visual album. I think this couple is brilliant. But they are. They are inspired. She said all the promotion on the album, she wanted to get rid of the height and speak directly to her fans. She did not want the height h ype to lose her message in translation. But lets talk about the lottery. The Mega Millions jackpot has climbed to 400 million. It is currently the fifth against jackpot ever. It has been growing since october 1 and there has not been a winner in 23 drawings. The money is piling up. The new york lottery is selling half a Million Dollars worth of tickets every hour. There is a chance. Somebody wins. I have a chance. We are a body and. My husband bought in. I am retiring very soon. I will get a resort home. I would give a lot of it to charity. Hink that is a good reason glad the tax break is so big. You should give to charity. Lets live have breaking news involving verizon. We will go right out to Jon Erlichman in california. We can tell you that Bloomberg News verizon is very close to acquiring intels tv project. There could be an announcement as soon as next week. This is a really big deal. There is so much fascination and you guys were talking about the future of television and apple creating its own fullscale television. Intel has been working on it and telling us about it. They are very close to selling it to verizon. That is a major development. There is a new ceo, and when he took over, he looked at this project, which started in some ways as a way for intel to showcase the power of its technology and see how it could be demonstrated through Something Like television, but the challenge for intel is not just the cost involved, but the retail role that would be required. Ad is not something that intel traditionally does. Operate,ot the way we why cant we find a partner who already has content right to work on a deal . They looked at a Partnership Idea and it has resulted in the ultimate theyll of this business to verizon. Sale of this business to verizon. By the way, why is verizon paying up for this . If you think about what verizon has with files, here is something that competes. You guys were talking about directv, while the is the main nice footprint in video. They have the content. They become a nice fit for this technology. Inizon is only available certain markets. If you want to roll out more markets, that is a big cost. There is a lot of infrastructure involved. The technology that intel has does not require that an kind of build up. Service inoffer this a lot of markets without incurring a big infrastructure costs. Jon erlichman joining us with breaking news about verizon. Jeff, i want to go straight to you. Expanding, andn you are trying to build on what you can offer, and then there is intel, which cannot seem to go beyond. They had a hard time getting into mobile. It is a smart move by verizon. Anything that increases their volume, and a move into technology where they have a buyout, that is a smart move for them. I wonder if it will require a new contract for verizon . Instead of the usual files provider contract. S provider fio contract. Ok guys, good roundup. Thank you to olivia and jeff. We will be right back and we will be joined by the ceo of his e. Com. Gazell we will be right back. Do you want cash for your old iphone . This company will buy your old equipment and fix it up and sell it on ebay. The business is up 74 this Holiday Season. We are joined by the ceo of gazelle. What is selling the most right now . We see a lot innovation in the marketplace this Holiday Season of stop google have a phone. Number one item that people want for the holidays is an ipad. Our customers tend to sell whatever they have in the house and whatever is lying around. They are selling old iphones, old ipads. They want to buy new gifts for the holidays. After you get your new ipad and iphone, that is when we see theificant growth in customers who have old in the house and trading it in. After the holidays . We see both. After the holidays and before the holidays. We have a lot of new gifts and theyre coming to gazelle. What is different from say fives tradein program . Best buys tradein program . There are some big differences. You have to sign a contract. There is no contract here. You get a credit for the purchase. If you get the ipad as a gift over the holidays, you do not have to sign a new contract. That is a great option because we get the cash. The new iphones they came out, i imagine you are selling that people are selling you the old iphones. Is that right . Yes. 5s. Aw a lot of iphone just a week and get a sense of this thing. My phone is less than a year old. It is in good shape. What can i get for a phone like that . Everything has value. And 80 . You could get over 200 for that. Even with the crack in the glass . It is driven by demand in the marketplace. Who will buy it and for how much . Frankly, this product will end up in china. Someone will pay hundreds of dollars for because the only comparison point they have in for 1000. Buy new people in the u. S. Sell the product to you and your enduser demand is in china, not the u. S. At walmart, you can buy an iphone 54 129. You wonder why you would spend more money for something that is the same . In other countries, you cannot buy it for that price. Arbitrage. Ographic that is what you are doing here. Were moving product from where the innovation occurred. There moving into where late adopters are. Dont people want the new, sexy product . Not at that price range. 2 or 3 of the population can afford it. And iphone 5 would probably cost 300400 dollars. You did a survey, why dont you give me the 200 . Tell us about your survey. There it is, some of the results of the survey. The number one product that people want for the holidays is a tablet. They want an ipad. 39 , followed by a laptop or desktop. Tablets will be a phenomenal order. The new product they came to the market, the ipad air. I just love it. It is a great product. It sure is. Thank you for being here. Former seniorthe adviser to president obama will be here. The house made a budget breakthrough yesterday. They passed the first bipartisan deal in four years. Speaker john boehner was happy. Positive step in that direction. It is progress. It is what the American People expect us to do. We are coming together and finding common ground. Majority leader harry reid is hoping the bill gets a greenlight from senate republicans. The republicans must pass it. It is a landmark agreement. Not because of the massive side it, but the size of because of what it does for congress and the American People. Will it cost . Pass . E will it john boehner and harry reid seem to be on their talking points, but what does this mean for 2014 . It will pass the senate. It will go in one of two directions. Congress may say this is as good as we can do, we have done the barebones. Or we take this very Going Forward and we try to work on things like immigration. The harder stuff is still left to be done. That is for sure. What do you think happened behind the scenes that enable 332 congressmen to come together . We have not seen that kind of coming together in a long time. Other than post office, you do not see that sort of thing. The shutdown was terrible for everybody. The republicans hate a price. The American People cannot be more angry about that. They felt that they had to do the bare minimum and do no harm. If you talk to Business People today, they are happy that there is some certainty. And you have the longterm Unemployment Benefits that were not resolved. They got cut, right . Aside from the pain that that will cause families, all of that money goes right back into the economy. From a macroeconomic standpoint, that is not a smart thing to do. You have made the point you are an adviser to president obama. You advised democrats, including the president , that they have to fix entitlements. This is something that they want. Explain why that is. You see almost universal agreement between democrats and republicans that the discretionary side of the budget is too large. Outstanding issues are ifitlements, tax reform, you are to do a longterm Debt Reduction package, that would fix certain issues. We have to do a reduction in debt. Student loans, medical research, innovationthere there he has to be room in the budget. With an election coming up every two years, what is the probability that a big deal will happen . We tried on two different occasions. We came very close. What is good for the economy is good for the country. Now that we have a budget on the table, the deficit has fallen. You do have the debt ceiling coming up, and congress will work on that. They will take leadership on both sides. Geyser to president obama and now i bloomberg contributor. Were fortunate to have you here. Thank you. Coming up, the battle for your information. A storagelk about company that debuted on the Stock Exchange this morning. We will be right back. Hollywood may have the academy awards, but Silicon Valley has the right surprises. They reward Research Innovation in the Life Sciences and physics. Money is donated by tech titans like Mark Zuckerberg. Bloomberg wests emily chang is on the red carpet for all of that action was stopped all of that action. To come to an award show that is only one hour is a remarkable thing. Maybe all we need is science. You prefer the real oscars . I prefer this. The average sat score is higher. Of actors often, do you make fun of scientist . No. You cannot. They are nerds, of course you can. Amazing that the people who are pushing the envelope all the time are completely unknown. . What is the latest on aereo we will win. Can you tell me about the robot that they are working on . I think this is exciting. It is bold and has the potential to be transformative over time. Geeksis great to see the and the nerds get a fantastic night. We are here to discuss the fundamentals of science, the time spains the time space continuum, are there black holes . Nightre worried about Late Television . I dont know what to think about that. Elementberg west anchor emily chang is here with more. Where was Mark Zuckerberg . It is interesting, everyone was waiting for Mark Zuckerberg. We were told that every Single Person who would be at the event had to walk the red carpet. But he never showed up. He found some sort of back entrance and made it inside. When you are Mark Zuckerberg, you can figure out a way to bend the rules a little. He did not want the event to be about him. He wanted it to be about the scientist. Was. Ally they awarded 21 million in prizes. It was a starstudded event. It was a whos who of Silicon Valley. You had people there from jack dorsey, who founded twitter, to apple designer jonny ive jony ive to people from hollywood. They wanted it to be a glamorous evening. They wanted to give science its recognition and the kind of recognition it deserves. That was coming in the form of a monetary prize, 3 million per winner, that is more than a nobel prize, and a glamorous event. The whole thing will be televised on Discovery Science next year. Was like the oscars of science, a different kind of oscars for people like kevin spacey, but it was a funny thing. Did he tell you what will happen on season two of house of cards . I did ask. I asked if there will be a season three. There has been some question about that. Kevin spacey likes being in movies, and the producers are not sure if therell be a season three. Netlist has said that it is happening. Kevin spacey says he does not know yet. He made it sound like it was not a done deal. I hope there is one. I am a fan. I am too. Thank you emily. Used to be that little usb memory stick you put on your keychain. Now flash has gone big time. It is making its way into enterprise servers. Good luck cooking that on your keychain. Nimble storage just had an ipo this morning. They closed at 33. We are joined by the ceo. Suresh, congratulations. Thank you very much. Our decision to go public was based on two goals we had. The first one was as we think about the opportunities in the market, we want to invest in those resources and in financial expansion to go after that opportunity. Gaining liquidity and capital was one goal. He fundamentally believe that we can survive as an independent Public Company in the long term. A couple ofbeen other competitors of yours. As well. Had ipos they have traded down from their ipos and you traded up significantly. What do you think makes your Company Different . Are a couple of very major differences in the way that we approach the problem. We have figured out a way of combining flash memory with low drivess drives disk to go after a part of the market that involves midrange systems. There are tens of thousands of potential customers. The second thing that is different about us, we are a commodity hardware combined with very delicate software. Our structure is higher than other companies that may be more hardwarecentric. Factors have convinced investors of the potential in us. Why did you choose to go public on the new york Stock Exchange instead of the nasdaq . One of the key factors, there were a couple of key factors. One was simply the Brand Recognition of the nyse along with its momentum. Another one was more along the profits of the team that we worked with, and they were very helpful in guiding us along the way. You think about your business, storage, and there is so much need for it now. Buildupe we in the process to make that happen . Or perspective, if you go back far enough, there were not enough credible lines cable lines to send cable tv into homes. And with all that we had to build cell towers to get signals. Where are we in the process of building storage for all this information . Alwaysone thing that has been true of storage is an insatiable demand of accumulating data and building up storage. Whether it is large operations or midsize operations or cloud services, i do not see in and to the pace at which we accumulate data. That bodes well for our industry. If you are making a lot of money at nimble. When are you going to be profitable . One of the things you will notice if you look at the trend in our profitability over time is that we have revenue very quickly. , but ourking losses Revenue Growth have been ahead of our operating costs. Our operating losses have diminishing. Our revenue is increasing. We expect that trend to continue. Plan to drive growth and we expect our growth will be ahead of our expected growth. We wilbreak even andrew ladd to profitability. We will break even and move on to profitability. Congratulations on your big day. The ceo of nimble technologies. It is also a big deal for me because the hobbit has arrived. I am so excited. Ein film is atk the box office. We will get some buzz. Also, the ultimate pub crawl. Why it may be more nice than not he. We will talk about that on todays weird wall street. It is now time for bringing you the business behind media and entertainment and pop culture. I have been waiting for this day since i was three years old. I get to see a hobbit fight a dragon. I might be willing to shell out 20 a ticket. Timesthe two towers 11 in the movie theater, but what about you . Rings return of butking Reigns Supreme interest has waned in middle earth. Eric joins us now. Aull see hundreds of movies year and you probably own a seat at the theater. What are we looking at with the the hobbit . I think it will be an interesting blockbuster. Already worldwide it is outpacing the first one. It had the second biggest midnight opening in december. Here at home, it may not reach the opening of the first movie. The first one opened higher. Interested. It was awesome. Anddwarf saying, sang, the people are wrong. Exit will obviously win the weekend. But how big will it do . If it does not reach those numbers, it will be interesting. What is more for it my ticket that i will buy tonight to see it . Or someone who will buy a ticket to see it in china in a few months . They were shooting in china, and now lots of movies are shooting in china will stop transformers is coming out over the summer. Parts of that movie were shot in china. Buying a ticket is very important right now. We will see the global numbers today. If you think it is so expensive to go to china do you think that is done because the producers, they want to have the chinese in their cap . Camp . They want to say they filmed it there and they want to show the film in that country. Yes, i think Everyone Wants to be in chinas camp. Shot in china with chinese actors that we never saw. It was just released in china. That is what they are doing right now. Talking about promotion, what is the distinction between anchorman 2 and the hobbit . What is the future of marketing . Ron burgundy sells everything. They have super ticket, you spend more money and you get stuff to go with it. I think that will be the future of marketing. The future of marketing will be the experience. Theater,ience at the and people who go to watch movies. Thats what is the stomach for the price tag for ticket that will cost 40 . You would do that for the the hobbit i would do that. You get to see it with a crowd who is as passionate as you are. People will spend money to see that. Bring ine not going to adam johnson to see the hobbit by doing that. They are going to do all different kinds of things. The alamo draft house chain is a cool chain. They do a lot of cool things. It is just about finding that middle ground. People do not want to spend a ton of money, but they do want to have a bigger and refreshing experience. I might spend some money this weekend. What do you think about American Hustle . A sexy new york movie. It is really good. It has gotten a lot of golden globe nominations. Christian bale, bradley cooper, he is outstanding. Jennifer lawrence, they are fantastic. It is a very new york movie. This december, we have a lot of new york movies. Llelyn davis the new coen brothers movie. Are there more movies coming out now . They all of these award contenders in december. They stagger the release. There are 20 movies hitting. Does well . Ually what are the topperforming movies . It depends on what kind of year. In december, the awards movies can do well. By many. Loved i want to go see it. I want to see the movie that everyone loves. But there are also blockbusters in december. Thanksgiving in the holidays, frozen and catching fire are still doing bigmoney. Fire, which i saw last night, it was awesome. Say the hobbit multiple times, i am sure. Thank you so much. Take ang up, we will trip to gingerbread lane where fairy tales come to life. We will check that out. It is time for weird wall street where the bazaar is business as normal. Welcome to gingerbread lane. A 300 square foot village made entirely out of gingerbread, i think, and candy. It is on display in queens. Largest gingerbread village in the world. There are 160 gingerbread houses, candy, even a gating rank. Gating skating rink. Can you eat it . It looks delicious. Im talking about santa. It is a Santa Convention where the santas get really drunk. The event leaders are hoping to contain that crazy crowd. There were complaints by shoppers from roving santos last year. S last year. They go to the bars starting at 8 00 a. M. Adam, you know you do that every year. Have a great weekend and we will see you monday. It is 56 past the hour which means that Bloomberg Television is on the market. Lets get you caught up to how the markets ended. It was a mixed session. The dow and the nasdaq both eked out a small gain. The s p 500 was ever so slightly in the red. To the s p the drop 500 to about 1. 5 . Talks are in the air. There is a better than estimated november jobs report that adds to speculation that the fed will reduce its monthly bond purchasing. Director by the adrian miller. Thank you for joining us. Investors are upping their bets that the fed will in fact start to taper next week. We did a survey of economists and 34 think that the fed will move to reduce for next week. What do you think . Im in the january cap. Camp. I think it will be close, and there are pockets of strength, andretail sales are good, the nonfarm payroll was good, but on the margin, there is not enough evidence to definitively convince the fed to actually taper next week. We are looking for a january taper. It is not even eight will they, wont they issue. They, wont they issue . They areot think necessarily convinced. We would like to see it done next week because we think the costs have longawaited benefits from the standpoint of price manipulation. From the feds perspective, it will be a january decision. The s p 500 was up about 24 year to date. They yield on the 10 year treasury market is up. Close to where was in september. Do you think stocks and treasuries have improved . Not fully. I think bonds are ahead of equities. What is interesting this week is that we see equities act up a little bit. The bigger concern with equity is is whether there will be a sufficient handoff between artificial growth and actual growth . That may be the case. The equity market is pulling back a little bit. The data is getting better. To answer your question, with markets to a largest then have improved, but not fully. And you are a january taper man. News coming out of different Central Bank Next week. Which of those meetings are the most important . The bank of japan and the bank of india are important, but japan in particular. We are curious about their most recent views on their economy. We are interested in how they will move growth along. We expect and many others expect more on thell put Second Quarter of next year. I do not think they will get that 2. 0 they are looking for next year. Abe isse, Prime Minister ,ooking for those three arrows especially liberal labor liberalization. That does it for on the markets and we hope you have a great weekend. In is taking stock for friday, december 13, 2013. Im pimm fox. Were going to focus on revival. The t is looking to have ultimate revival. Plus, Gold Medalist scott west scott, the olympic snowboarder. Hell tell us how hell bounce back from his injuries in order to reach the podium once again at the Winter Olympics in russia