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leaders in the house and the senate supported that bill. international blowback after the release of this disturbing cia torture report here at the center of feared -- revealed that suspects were treated more brutally than previously known. in 2000 nine.ded president obama spoke about the report in an interview. >> i can categorically say anyone who engaged in any behavior like this will be -- directly violated my executive orders and my policies as president of the united states and would be held into account and was breaking the law. >> it will not prosecute cia officials. after rebounding for one day, the price of oil is falling again. lowerexas intermediate is as well. the forecast is the lowest in 12 years. but it is a boon for american consumers. jpmorgan already facing the highest capital surcharge. $20 billion by 2019 to meet new fed standards. says it is well capitalized and plans to meet the fed requirement. e-mails. documents and e-mails, sony's a cyber have led to attack. more on an explosive e-mail for you in a moment. quite a read this morning. back on the spending bill, an agreement on tuesday on a spending plan. if approved, it would avert a government shutdown. willveryone in congress like what they find inside the belt. had -- iknow what you know you have been tracking this. >> there was last-minute trading which is why we're pushing this deadline. the bipartisan bill would avoid a government shutdown assuming the house and senate passage later this week. we will talk about that in a moment. wille the legislation, it make people very happy and others it will give heartburn. big picture in this bill, it funds the government. one exception we talked about all week, homeland security only nextng funding until early year as republicans take a whack of the president's immigration action early next year. money here for ebola. the than $5 million, overseas operation. .ig deeper into the legislation the wall street push out. it is a repeal of the dodd-frank rule that would have required major banks to an out there trading businesses. this.an will benefit from you also have republicans pushing to ease rules requiring truckers to drive for only a certain amount of hours. funding for legalizing pot in the district of columbia. republicans which for that. favorite, and endangered specie. john boehner goes behind closed doors this morning with house republicans to sell them on this legislation. we will know in about an hour or so whether there were any problems. the senses that we will not get any, on the public -- on the republican side. >> how are they responding? >> nancy pelosi says she is hopeful house democrats can support the legislation. but she said they need to review the bill. they have not seen all of the provisions within here. some democrats i can assure you will not like everything inside here, including the wall street provision. elizabeth warren calls it .eckless >> peter, thank you so much. it looks like we will make it here no government shutdown. equity futures. joe wrote about greece's presidential votes this week which will be held next month. it says "watch out, -- if you would see the slide is months in the making. investors have been selling off on grief for quite some time. >> yes. more and more people were paying attention to it. greece was sort of the center of the storm in 2011 in 2012. then it got quieter. in 2012, they had an election and a majority stable government was able to get together. the issue now is that coalition government is not stable, they might need to snap parliamentary elections earlier this year. if they do, the party leading is the far leftist party and they .o not like the existing system it is hard to see, it is really about what will happen, but you have an issue where the entire platform is against the way the bailout is structured. they want to stay in the eurozone, but, they are diametrically opposed to what eurozone conventional wisdom is veered >> could we see a repeat? bringing up the ugly nightmares from 2011, but could we actually see a repeat of what we saw in greece and have that contagion effect? >> it is possible. in 2011 in 2012, a lot of focus was on debt sustainability and whether these various countries had too much debt. it is a similar story now. be a real political crisis in the eurozone and does that start with greece? >> oh boy. years and years. thanks. moving and shaking this hour is the uber ceo. it seems as though the service is either being banned or sued. false assurances to customers about driving background checks. this all comes a week after the news that they raised a new round of funding, valuing uber at a whopping $40,000. i want to stay with uber. the early stage investor in companies, like the huffington post. uber? to get your take on >> it is pretty crazy. i think the company is fascinating and fantastic. i do not think anyone has argument, that is a great service. everybody uses it. >> it is fantastic third there which isof great miss, inevitable. literally record-breaking rates every single day. i think they're having trouble keeping up with it. they are having issues with how to handle the scrutiny of being a company everyone is looking at. be ay figure out how to big company. weeks to doave had it. >> have you ever seen a test on a new company like this? it. >> have you ever seen a test on a new company like this? >> there are very quick turns on this.ies like physics takes a turn. remember groupon. company everybody said growing in the whole world and three weeks later, they said, it sucks and we hated. -- hate it. this happens very regularly. >> the privacy issue any amount of data they gather. it is not just uber. do you use this tool? tell me about the data. who owns it. who is looking at it? i want to play a little bit of what the founder said about privacy. >> as we have grown, we have added more and more safeguards to those privacy policies internally just in the last few weeks. certain employees are able to see in regards to users information. a good conversation to be having, and one we are open to working with him on. this like companies like need to get more data out? >> personally, as someone who is not too concerned with this i do not attest about my personal data. there have been lots of concerns over facebook and there are a bunch of companies, google, who have extraordinary amounts of data. is scary to have the data out there, but at the end of the day, i think the stuff around them targeting specific users, that is sort of terrifying, but generally speaking, i am not concerned uber knows where i am going. think, clearly there is a level of access in a system where someone like travis can go see where i am going and how i spend my money, but i'm not concerned that they're using that information against me or how that would possibly do that. much more ahead, including, it is the best kept secret at amazon and fedex, making sure your holiday president -- present gets to where they're supposed to go. we will be back. ♪ >> no matter what you buy this holiday season or how you buy it, a good chance these on your gift list, walmart, amazon, fedex, all around their packages through a distribution facility. the company has $15 billion worth of space across 21 countries, checking crucial supplies along the way. also with me is my guest host. there is a story out about how amazon, being worried about what happened last year with fedex and ups, they decided to take more control over distribution and shipping and that, is that the trends to come? last i do not know for sure, but it makes sense that a company that is very active in this kind of activity, would want to control more and more of the logistics there it if you think about it, they are a logistics company. for them to get closer to the customer that way, and do more of that themselves, it is a logical progression of their business, i would think. our business is great. that.ry ceo says >> the business is the best it has been probably since 99 and 2000. the reason is not because we are in a great economy. people have been disciplined this time around. we have not overbilled the market. demand is ok. supplies great era meaning there is not very much supply. we are getting pricing power, and globally, we are a -- at about 90% occupied. havees at the highest you had? >> the highest since the late 90's. read less corridor went up 10% year-over-year. we are getting pricing power, andpant the, rental growth, there was one segment of our lagging, the was small consumer, space under 100,000 feet. we were worried about that. that was late coming out of the recession. a lot of it was tied to housing. small business formation, which is always in the engine for growth and job creation, finally kicked in in the last six months. speaking about small businesses, you see a lot of entrepreneurs and small businesses. what are you seeing them? surprised you are seeing all these small businesses coming and going. there is obviously a boom of entrepreneurship and a boom .round e-commerce you are playing in the right trend. are you finding that for you, is it specifically e-commerce tracking the growth? is a really good question. e-commerce is about 10% of our overall business. but in terms of our new development activity, it is about a quarter of the business. that is growing at 20 percent per year. growth rate is higher and the shares are going up and it is a much eager share of the new development business. >> yesterday, a story came out about how twitter, speaking about e-commerce, twitter will start selling books, with their buy button. i know facebook has tried this as well. mediare you seeing social lies, people actually conducting transactions? >> we are seeing it and we have been doing some tests specifically with instagram, where we partner with a company that enables you to use a #and i want something, and you get sent an invoice. we are seeing that actually working. it is a very small part of the business and interesting place to tests. it eventually would be compelling if you could transact using apple pay and not having to use any credit card information, and just buy on the spot. but i think we are a long ways off from this actually happening. allill believe facebook and the social networks, pinterest will be interesting, but facebook, twitter, instagram, are still great places to consume content. but i think they are pretty far removed. >> i have to say, i am surprised pinterest does not do more commerce on their site. i know for you, you do not care. wherever the dollars are flowing in, it is final -- fine for you. stay with me. we will talk more about retails and consumers. much more ahead. consumers are not the only ones in love with online shopping. we have got much more on that. plus, a big jump in sales of warehouse. costco earnings coming up. ♪ >> you're watching in the loop live. good morning. i am betty liu. a look at our top company names. ,eating wall street estimates sales rose 7%. by comparison, walmart's sales rose just one half of 1% in the last quarter. airline posts higher than reported -- it may rise higher than next year. credit to a stronger economy, yes, and also a cheaper fuel. close easy oil prices coming down next year, saving the industry a certain amount of money. down, so willcome the average fare. not all of that will go to the bottom line. relatively good global economic growth here that is the main driver of improved results. classes that if you have the strongest earnings performance so far this year. quarterly profit rose. a company says it expects results in the next fiscal year to be similar to the one that ended in october. the average price of one of these homes, $747,000. thousand recovery is underway and we are back down again. we are on the markets here, about an hour away from the opening bell. s&p futures are in the red down 2/10 of 1%. growing concerns of global growth, but also political turmoil in greece. we are on the markets again in 30 minutes. retail, the e-commerce boom not only being driven by consumers, but also investors. many are betting on fashion. case in point, harry's, a start up, trying to undercut companies like gillette by being the parker of shaving, just released a new round of funding and $75 million. , a slew of eve retail related companies. with us who is also in retail, a chairman and ceo on the backend of all of this business. why is this so hot right now? i know these companies have been butsted in tech companies, they are really fashion companies, right? >> if you look at e-commerce, the elephant in the room is amazon, who owns the market very what amazon is amazing at is the fulfillment pieces, like the backend logistics. at creating as good the emotional connection with the end user and that is why you are being these, whatever category continuing to emerge. these guys are figuring out how to use the digital world to create these relationships and use the market channels that exist and you social quickly in a space where amazon cannot compete because it is not what they do well. that is why you see some many people invest in this business. growing pain for companies like this? >> the challenge is obviously getting recognized and building a brand people start to think about, when they're going to make their glasses purchase, for instance. >> it is not making the classes themselves or getting the shaving kit. >> no. in harry's example, what they did is they found a facility in germany that was making really high-quality razors, and they went out and started producing razors with them and ultimately raised a ton of money for typo -- tiger mobile and bought the facility. so they owned it and to end. they are critically integrated now. that is why they have raised so much money. andly, to fund the purchase expansion of this facility, that is really their play. with a lot of these other guys, they're using other production companies, in china or whatever it is, to go until the product. what they're getting good at is the interface with the consumer. see companies like this, they are all going after amazon, but are still just a small piece of the whole pie. do you see them eventually being customers of yours? you mentioned before there is an element that deals with companies like this. >> sure. we deal with companies small and large all over the map. is it isappening getting much easier to start a business. manufacturing in china, fulfillment, all the pieces you have to own before are getting easy to rent in some form or fashion. companies can experiment and get into business. are six -- that are successful can then do a cheaper. >> as it seems like harry's did in one case. >> so it is much more toeresting and much easier start businesses today than it was 10 or 20 years ago because all these pieces are available. companies like amazon will do a huge amount of business. if you add up all these little companies, they probably amount to 10 or 20%. it is a niche product but i think it is important and certain segments, it is very important. >> how do you scale up something like that? >> there are a few different side, but one of them is, for millenial consumers, i do not think it is michie. these kinds of businesses are where they want to go. i think they care where they spend their money and who is making a product that they own. they consider the product they own to be an extension of themselves. nichek these little businesses over time will not look like little niche businesses. they will grow into an -- two important big businesses. to take a big bite out of a company who owns the licenses to every single fancy sunglasses brand you have ever bought. >> right. but then does it yet tricky? does it get tricky when you start to go from that and now you will open physical stores and then you will get into manufacturing? time is,estion over does it look like a traditional ?usiness that remains to be seen. they're opening a bunch of stores successfully. there are two schools of thought. one school is that the retail as as are doing it marketing channel, as a way to build equity and breakeven but have the brand appear bigger than it is. >> but why they -- why do they need to do that? >> amazon is a special case i do not know there will be a lot of amazon. it is amazing that alibaba exist and that there is another amazon. amazon is a totally different business there it almost all the products, they do not own. these niche is mrs. have much higher margins and they are really about creating the moa -- the emotional bond. the way they will get valued by wall street, when these companies become public, is really as brands, and not just getting valued -- but getting valued for the brand equity they built. >> you would rather rent to amazon than you would one of these companies? would rather rent to anybody who would rent and flexible buildings. not comehey make it or at the end of the day, if you have a company designed well, -- of course we want all of our customers to be successful and we have larger company like credit is their better in all of that. but at the end of the day, we are agnostic here it is long as the channel continues to grow and more and more consumption goes through the online channel, this is three times as spacex it. >> because they're shipping everything. >> in small units as opposed to pallets. the shift in consumption into the channel increases the space. >> is it more likely amazon would become a competitor of yours, then become a smaller business? >> absolutely. their return on capital is much higher. the return on capital people , innd in real estate effect, we have slower growth. i do not think it really makes sense from a capital standpoint >> great to see you. thank you for stopping by. much more ahead, the new start for the new republic. employees washed out last week in protest over the company's changing direction. we will dive into the new world of online publishing. stay in the loop. ♪ >> a new report says disney's one of hundreds of companies that benefited from lower taxes in luxembourg. according to a report, and corporations lower their tax will from less than 1% of our profit. also name disney -- documents in the sony .ttack e-mails between the top sony executive and a producer. it was focused on amy and her leadership skills and her ability to focus on producers like this who blasted them. this one focuses on angelina jolie. that was one of the tamer ones i took for you guys. i want to bring in my guest host. we started off this story this week with, they have been attacked and the movie had been pirated. who knew the real drama would be internal office politics. imagine it is pretty unpleasant to be working at sony today. >> yes. it has got to be unpleasant for anyone who runs a company, who sees that they can be the honorable. this is unusual not -- in that it is not just, ok, i am pirating movie. it is going after you personally. a new age of cyber attack. >> the idea is north korean government is doing this. that feels terrifying to me, the idea that a dictatorship government would be coming after my company. it would probably make me uncomfortable. security is a big challenge for a lot of the businesses and until you have a alwayson like us, it ends up getting pushed. i know as a -- as i look at our tech every quarter, we see hardcts where it is always to justify the resources for, but when you don't and something happens, you really regret it. i think there are safeguards you can take to avoid these things, but ultimately, they spend money elsewhere. >> what is your return for your shareholder? it is an insurance partner and it is hard to quantify what damage can be done. does this mean angelina jolie will no longer work with sony, or does she expect this is happening at all times and she does not care at all because she has thick skin? spend onch do you security? what we call systems hardening, but making sure our users data is safe, things like credit card information. we work with security vendors so we are not responsible. >> other big news is new republic, and the whole staff is locking out. chris hughes, the facebook cofounder who bought the new republic, he wrote this washington post op-ed on friday and said, if you really care , you do nottitution walk out and you roll up your sleeves and fight. is he right? >> i do not know what the inter-workings were that happened there. the editor in chief was fired without actually being fired. in the else was hired background mar hiring new people right under his nose. members of the team were loyal to him and loyal to the history of the magazine and all the changes in the leadership and without clear communication, that can be disconcerting. i think that is where a lot of the anger comes from. makingre the moves he is are those he believes are in the best interest of the future of the company. traffic has an growing online. class of has been in decline. going tothink that was be happening independently of whether he was there or not. it was a place where he needed . infuse newnk could life into it. i know i -- chris a little bit and think well of him. there are management issues so i am sure the people who left are totally justified to do that. i do not think it is a situation where you can say chris is wrong or the team is wrong. everyone is doing what they think is best. focusing on digital is a must for them if they decided they wanted to be in the same business they had been in the last 40 years. they were going to head not in the direction they ultimately wanted to. >> all right. also, would you let your son play football? the majority of parents would not. towill hear from an nfl star talk about the dangers of the -- the on the dangers of the game, roger nadal is meeting with team owners to talk about new rules off the field. stay in the loop. ♪ >> today, nfl commissioner roger nadal plants unveil a personal conduct policy at a meeting with nfl team owners between domestic -- it has been a growing -- grim year for the nfl. most americans don't want their sons to play football and only 17% think football lost his popularity will grow. speaking about some of these issues, including concussions. ok. sherman joining us. also, our guest host, ben. ben, you had a baby boy, right? would you legislate football? -- would you let him play football? >> it would take me a little time to warm up with that. he is only a few weeks old. but i love football. i am a football fan. but i would probably let him be the quarterback. i think so. if he is skilled enough, which i fully expect him to the, i think i would let him be quarterback. i do not know if i would want him playing any other position where there is a ton of physical contact. >> even quarterbacks have histories of concussions. had double.ith has the rule changes have gone into effect where they held up the quarterback position more than any other. alex also has a young son, so i put the question to him and said, would you let your son play football? would zero he said. >> i grew up in a football family. i did not play tackle but itl until it is no, was something i wanted to do. i date my dad and did not do it until later. i certainly will not put my young sons in football early. i think you can develop the need for this word doing other things. to playhave a desire doing older, it is not something i will stop them from doing. >> that is an admission he would not put his fun he -- his son in football right away, not tackle football. quarterbacks are thinking about as much differently. >> he has had some of his own concussion issues. i must play to his views. chris absolutely. but i think it is much more than that. ofs around a variety different players and a variety of different ages and has seen the long-term effects. they are around a community of football players and many of them are dealing with severe health issues. >> there is always a tension between, you make it safer, but it is not as fun to watch. the more dangerous and looks on the field, the more entertaining it is in many ways there it i know you also talked about the abuses, domestic abuse and child abuse within the nfl. what did he say about that? >> he is married and he has a son, and i asked him, more or less, do you think the nfl should out right dan players if they are arrested for domestic violence? little moreas a measured. >> everyone is trying to get this right. as athletes, we have a chance to change the culture for the better. a little bit of responsibility. i think it is the same thing. everyone is trying to get it right and do the right thing. as players, we need to be accountable as well. >> you are a football fan, what do you think? asked that is a good answer. very diplomatic. just havehink you can a black-and-white policy where anyone who is arrested gets banned for life. first of all, you have to be convicted. he cannot just be arrested. i think the league has to tighten this up. the biggest problem the leak had is the inconsistency. saying, there should not be a ciccone and policy, but there has not really been any policy in the nfl. it seems like they have been in denial about these issues in the nfl. >> right. it seems to be very little policy, if any. we'll start to suspend people on the irs. is when they are charged, or there is a video of it. all sorts of different elements. >> roger goodell, the commissioner, asking him, how would you deal with some like this. on one hand, it is good he has done this on the other hand, goes to show he does not have any policy or framework. thank you so much, alex sherman and dan, thank you for joining me this hour. great to have you. we will be back in two minutes. ♪ >> bloomberg television is on the markets. equity futures are lower. down about 2/10 of 1%, just slightly lower. also, concerns about global growth is weighing on the markets. much more ahead. airline stocks are soaring. companies reporting record profits. levitt -- will the good times checotah -- trickle down to us? ♪ >> here is a look at our top stories this morning. futures indicate fossil be lower . at capitol hill, congressional leaders agreed on a spending plan that would avert a government shutdown. some democrats not happy because it rolls back restrictions. the senate expected to pass the measure. china is last in the u.s. as --ocritical upon release china has been cracked -- criticized for cracking down. harsh techniques interrogations. >> the truth is sometimes a hard pill to swallow. it sometimes causes us difficulties at home and abroad. it is sometimes used by our enemies in attempts to hurt us. but the american people are entitled to it nonetheless. itself -- himself was tortured as a prisoner in the vietnam war. likely going from bad to worse. the weakest in 12 years. the price of oil resumes its fall this morning. now training at below $63 per barrel. how low can it go? it was like jpmorgan will have to come up with billions in capital. they may need more than $20 billion in additional capital in 2019. jpmorgan already faced the highest capital surcharge under new international rules. we are under 30 minutes away from the start of the trade. let's count you down with the top headlines hitting our radar before the bell today. matt miller and alex sherman is back with us there it number 10, and ipo in the works. the price set after the bell today. i feel on thursday could leave a ceo equipped with $700 million in cash and a richly valued stocks to use on acquisitions to transform the way we borrow money. >> and incredibly richly valued stocks. >> lending club, from my understanding, takes a person's money and lends it to another person. that is a bank. why are people comparing -- >> no, because lending club does not earn interest. it just takes fees, transaction fees. lending club and gave them 50 dollars and then you said, i want to borrow $50. the two of us would come to an agreement on interest iler -- byron. lending club just acts as the middleman. it does not act like a bank. notou're right that is quite a bank. why would you compare that to shutterfly orrville oh? >> it is being valued as more of a tax dock than it is as a banking stock. >> a financial services company. it seems to be pushing it a little bit. >> i see it a little bit as a hookah. it is like tinder. >> number nine. if netflix won't release his numbers, cvs will be doing it according to their chief officer. more than 10% of their time watching original series like house of cards and netflix. he added, i welcome them to provide anyone with the correct numbers. >> i got my nba from nyu. a >> i took appeared he's a magician, and excite the pdf of figures. i would believe him over anything that is out there, different analysts reports. this is sort of the best we can about whatistics exactly viewers are watching. >> and netflix does not release their numbers because they do not have to. not have to, but maybe they would if they were fantastic. that is the cynical point of view. >> i only watch netflix original series. outlier, but i only watch it for things like the killing or house of cards. >> clearly, you are the outlier if you believe the data. to cbs's whatval he's trying to say. >> speaking of rivals, the chinese technology billionaire following the footsteps of elon musk. seeking to build electric cars in the world''s largest auto market. he says he will bank on his experience, managing disruptive change. >> disruptive. have they really even picked it up in china? at a time whens elon musk is trying to get into the chinese market. what bigger electric car market is there other than china? >> would you buy a luxury car from an internet maker tv? >> i would not buy one from a chinese manufacturer. they make inferior products with automatic -- automotive's. i root for them, and i hope they become more successful and build higher-quality products. good luck to this guy. >> he is not the first chinese is meant to say he will buy electric cars. several years ago, they said they are putting together an electric car. that,re supposed to sell starting in the u.s. next year. we will see how it goes. arier seven, for ari -- for -- for ari. -- ferarri. >> that in italy, those things go hand-in-hand. believe it.t do not there is no way they will move unless af italy, company like most like and buys for ari -- ferrari. bully tactic?a volkswagen wants to buy fiat but only because it wants ferrari. i mean, they will sell serres -- shares so they can sell it. what a fascinating drama, but it will never leave italy. nothing is more italian than for ferraris. italian through and through. >> i have a feeling it is a personal thing format as well. ok. a story that just will not die. i know people at sony do not. a hack attack. now, heated e-mails have been late. in one example, it is what is presumed to be an exchange between angelina jolie. scott writes to her, you better shut and you down before she makes it very hard for david to do jobs. and yes, he wrote it in all caps. >> he was like a giant hollywood db. half the town will not cost you any more if you do not produce jobs. who wants to see the second one? oncee story for me, can we and for all, do not write e-mails like this. pick up the phone. why are executives still doing this? >> one of them said, i have been trying to engage with you and you have not talked to me on the phone. read. a good morning our countdown to the opening bell continues with an in-depth look at the airline industry. their stocks are soaring. a plane was grounded though. the macadamia nut scandal, have you seen this story? all the details are next. ♪ >> we continue to count down to the opening bell. about halfway through, it is time for our deep dive. have you heard this story? heather and daughter of the chairman has resigned after she was on a delayed fright from new york. she demanded the removal of a flight attendant who failed to server correctly. it was basically over a bag of macadamia nuts, she was served in a bag versus play. she drilled the flight attendant and wanted to know what the protocol was for serving macadamia nuts. with me now is the airline industry expert. brian, you made it your life to test out service and figure out which airline is better than what here's a funny story, but i think it's the slow larger story about service and customers for airlines. press here in america, a lot of us are happy when the flight attendant does not yell you. it does speak to the point that the airlines are very in tuned to premium customers. trying tos, they are make it bigger, but it lacks behind singapore. she maybe had overreacted, but she had had it. >> she grilled the flight attendant. cannot tell her exactly what the right procedure was for serving. that was just peeking volumes about the overall lack of service in the old -- in the whole airline. all about the premium customers these days. >> it is. delta is introducing five classes. american airlines is also trying to serve the premium customer. this all comes at a time where we have falling oil prices as well. is good for consumers. go for it is not really watching a new type of service. focusing onen premium economy, just kind of changing the way they market and sell. if they want to compete against airlines in certain leisure the treatu cannot get changes and things like that. it is smart. you do not have to pay if you do not want. about add-ons. airlines are making billions and airlines are making a lot of money, and it is because they are investing in products they do not want to give away anymore. >> given what has happened in oil prices, are we going to see ticket fares go down come 2000 15? >> i do not think so. we have seen less competition with consolidation and mergers. why would the airlines really drive down fares? we saw jet blue on a business product. we will see airlines making their premium products better and travelers, we will see confident or maybe a little bit, but i do not see it happening. overnightoke with us and i want to play one part about what he's said about oil price and the impact on airlines. >> oil prices coming in -- coming down next year but of course, as oil prices come down, so will the average fares. not all of that will go straight to the bottom line. we are seeing relatively good global economic growth. that is the main driver of improved results. >> global economic growth has been well. affect say it will not ticket prices much, but for budget airlines, it might have an impact? less with the budget airlines, they actually might be having a little more flexibility to be a little more aggressive. we have seen norwegian airlines fly in supercheap transatlantic fares. now that oil prices are low, it is kind of fun to see what all the different kinds of airlines will do. new -- a new secret you can tell us about flying? >> a lot of people have done up their hands and said, this will not work anymore, but they actually are, find japan's first-class to tokyo i ticket .or 62,000 american miles >> so you're flying to tokyo for five dollars. >> five dollars and $.50 is the total out of rocket cost for that ticket. you can still win the game, you just need to know how to do it. .> thank you so much we have got much more ahead, including staying with falling oil prices. coming backt anytime soon. plus, fedex just one of the american companies that received a sweetheart tax deal. stay in the loop. ♪ >> welcome back. let's get back to bringing you the most important stories you need to know for the opening bell. ok. number four, we are speaking about for ari in italy. sales on the affair. fedex is among the hundreds of companies in secret deals with luxenberg according to a report by an investigative journalist. can you blame the companies able to pay less in taxes? why not? >> you can make the argument that there is a much larger tax structure here. around the edges, it would probably be difficult to stop companies from going overseas. >> another wake-up call for the government, get it done. >> yes, but i would go further. why do we have a corporate tax at all? all of the shareholders will eventually be taxed on any profits they make from that corporation. you are taxing the same money twice. i do not really buy into the whole corporate tax thing to begin with. >> you think we should go to zero tax? >> yes. we are already taxing people on that corporation. >> disney is paying an average of 34% corporate tax, pretty standard for the u.s. this stuff is more around the edges. not paying a taxes. >> exactly. moving the needle, so to speak, for disney. number three, more problems for uber. the company being hit by a number of regulatory legal issues. saying that they need better background checks. yesterday,saying death by a thousand cuts. all of the world, they are being burned here. affecting the valuation? there are two things in ghana the same time. i agree with you this is a company young by a you -- to run by a young management team. but at the same time, their valuation keeps going up. are these things going to collide at some point? >> they are not doing themselves any favors with tr. the product is fantastic. i am bummed out. i am going to spain next week. i will not be... satan uber there. havee same time, i really a lot of sympathy for drivers who signed up for one thing and end up getting, having to pay another thing. >> i will say one thing. i think uber works great in san francisco and new york. itas in d.c. with uber, and is great. i am not sure they can get the consistent service in every city there opening and here it that is part of the growing pains. number two, looks like the government shutdown is being avoided. congress is reaching a spending bill that would keep the government funded. did we really think the government was not going to be funded, that the government was shut down? >> it is just a relief we are not going to this again there last time around, all the drama with the affordable care act and the partial shutdown for several weeks. there is a general sense of relief at least that we will avoid it here. >> the last shutdown, i thought it was fascinating and wonderful. for us as journalists, at least on the to work on. i have friends who were to the government and i do not think they'd enjoyed it so much. when you shut down the government, anyone trying to live for a job, the whole system shuts down. maybe you are thinking you'd get your new job in january and you not until april or september, so a lot of problems. >> my friends got a lot of domestic home improvement products. >> you clearly have different friends. let's get a check on futures where they settled ahead of the open. we are lower on this wednesday here midweek as we mentioned oil prices resuming their slide. we will talk about that as a top story in the opening bell, next. ♪ >> welcome back. we are getting back to bring you the most important stories that you need before the bell. numbers, we have to talk one. below $63 back down per barrel, opec cutting the forecast for what they would need. not surprising for people watching the slide in crude oil. out the big problem that a lot of it is a determinant of price oversupply. we were just talking about cars during the commercial break. horsepower, but you don't need to use that much gas. need as much gas. >> a problem for opec, maybe, but potentially a good thing for the u.s. economy. obviously it is sort of a mixed bag. >> it could mean it needs -- the job creation drive in the u.s. requires a shale boom. we won't be able to add those jobs anymore if it becomes unprofitable. >> we have seen half of a million jobs created. who knows how many other ancillary jobs have been created. driver myself in the suburbs, i am enjoying the lower gas prices. says it will take several more months before we see any sustainable rebound. do you feel that we are starting to feel for a bottom here and oil prices? >> not yet. [opening bell] 1986.s reminds me of oil went down further than anyone expected. thing ishe same happening now. we are in a situation where they can tough it out and they plan to do that. they don't want to lose market share, so they are increasing output. it will take time for other producers to cut. i am going to meet with the ceo of a major energy company. >> what is a good question for them? >> i think they are all in denial. the ones i have spoken to so far have these pitches to wall street analysts about the outlook. tangled in oil, it is up there in the 80's. way, in the 80's, what you're talking about last sort we got it down to $10 per barrel, right? do we have anything like that ahead of us now? >> no. most of the damage in the oil price decline is behind us. i think it is still heading to the south, but we are not going to more. nobody really knows where it will end up. it is not really the only supply and demand factor in the market. the next step here, and this has not happened yet, is going to be shutting down. they are cutting now. it was one of the earliest intelligent players to cut the head cap. next you will see some marginal producers go out of business. they are highly leveraged. the financial costs are very high. they will have trouble refinancing. the high-yield market will soar in terms of the amount of distressed energy. you will see m&a. >> is that big enough, by the way, to destabilize the financial markets? >> there are effects that are destabilizing. i think that is a good point. one of the things happening here is we are seeing increased volatility in the market that i think will be characteristic of 2015. not only because of the oil but because of a lot of macro factors. we have said rate hikes are likely to be forthcoming. we have europe teetering on the recession. greece, now. >> is there one way to play this in the equity markets? want one pure play, you have a picture of an airline up there. i advocated u.s. air on betty show last year. it is the best pure play, the only pure play on lower jet fuel prices amongst the airlines. >> they have not hedged? and they have no profit-sharing amongst their employees. it is going to add about $2 billion. >> $2 billion? >> including those macadamia nuts. >> only on a plate. i won't eat them any other way. >> thank you. thank you to alex and matt for joining me this morning. much more ahead on the markets. the next ceo the joins me in a few moments. ♪ >> one month ago i sat down with gary geyer, who started his own firm in real estate with sam zell. there are opportunities now in those markets. >> this is attended consumerism. capital markets disrupted in most emerging markets, creating investment opportunity for us with investor sentiment locally and internationally being down with emerging markets being positive for the business. >> kerry announced a $100 million investment by new york life. with me to discuss these deals and more, new york life investment ceo, drew lawton. great to see you. >> great to be here. >> what convinced you to invest with gary? >> very talented. he is just one of these people with great insights into the market that he serves. that is what we like to do. we think these people have an edge. we have not had that much exposure in the past. rather than trying to do something ourselves, we think that is the way to go. >> what about the timing now? that we are talking about in the prior segment. we really are not a company that is concerned about near-term timing. we are long-term in thinking about the things that we do, our own investments or the things that we do for our clients. six -- theer the next 6, 12, 18 months, i think it is something we believe it is. >> you have been buying metro , so what other acquisitions are you looking at? >> we have been looking at the space for a while. sponsored really in the u.s. market, the growth has been amazing. another big growth area in the market as well. of this team, they are the intersection of those etf's. being able to take advantage of a company like that is very innovative. we think it is a great advantage. >> you looking for more like that? >> not necessarily. we like what they do for us in the space. it gives us a great platform to launch the funds that he has in mind going forward, as well as the multi-boutique structure. goinges us great options forward, we are perfectly high up -- perfectly happy with what we have done. and with what we are bringing to market next year. >> so rapid, does it give you pause to invest in the commodity class? >> frankly, what it does is give us a better opportunity to better educate our advisors and clients on the market. we don't know what it is yet, but being able to back up and talk about asset allocation and how alternatives and commodities don't really correlate to what happens in the u.s. market, necessarily. this gives us a great opportunity over the long-term. >> drew, thank you so much for stopping by. ceo of new york life investment management. we have a lot more ahead, including the prices we have been talking about, car sales plunging, how is automated taking advantage of >> what do the following oil prices really mean for costco? we are joined with more from shelby. sounds like oil prices are a big win for costco. >> they are -- they are up about 1% right now, 20% for the year. prices usually mean low markets. when gas prices plummet, kosko benefits, they are incredibly smart buyer of gasoline. number one, thereby in bulk. number two, they've purchase from abroad range of refineries. than contracts are shorter the average gas station contract. it is much faster than the corner store selling gasoline. maybe one week to two weeks faster than your typical gas station. they can take advantage of the margins and don't have to lower prices until the competition does. for weeks they have been taking advantage of larger margins. from the oil price information service goes up about 6% this year. today ineing that their earnings report. they are very tightlipped about their gas business. hundreds of millions of dollars this quarter. >> i can imagine, right? is this something that investors care about the long-term? well when gas prices plummet and when they rise. they want gas prices to be at the forefront of the mind of the consumer. about isinvestors care that costco uses gas to lure people into their stores. one third of those in the tank going to the warehouse and by most in bulk. the frequency of the visits are up about 5% this year. more people are filling up their tanks and going into the stores and loading up the scars -- their cars with books. makes perfect sense. i get my big jars of peanut butter there. thank you so much. shelby holliday of bloomberg, thank you so much. staying with those dropping oil prices, consumers are buying more cars, perhaps. car sales are at an all-time rise ofnovember, a almost 5% last year. one automobile dealer says they have a plan to increase sales even more. rolling out their new service called smart choice express, an online service that allows customers to pick a car and finish their paperwork at home before picking it up at a local dealer. joining us to explain how this new digital storefront will work is mike jackson of automation. mike, great to have you back. >> good morning, pleasure to be here. let how is this different from the other sellers that i see online? like cars direct? >> the third-party providers attract traffic to their sites but then generate leads. they sell the leads to multiple dealers. it is just a different way of marketing, but you ultimately end up back in a very traditional process. i think that the customers are very unhappy and dissatisfied with this disconnect between their online experience and their in-store experience. ambition is to unify it into one experience and for that to happen our online sites have to become transactional, where you can look at real cars and get real prices and reserve those vehicles and all the work that you do online is recognized as the starting point when you arrive at the store. if you change your mind about something in the store, you could pull out your smart phone and survey other inventory and get the express price right there on your mobile device. you can seamlessly move back and worth the between online and the store. >> it sounds great, mike. the only one that i know that i can think of who was successfully doing it online it is, of course, elon musk, buying a tesla online. but others have tried this before. didn't gm try to sell the cars directly on ebay? kia has tried it online presence in the does not work. buying have trepidation a car online, if i could not actually go there, see it, feel it, and drive it. secret is that the that one company has to control the whole experience. doing witht we are automation. it is the reason we branded all of our stores automation and the reason the website is branded automation. we control everything from the website into the store. we own the entire process and we can come with an integrated technology solution that you can control what happens in the store and online. are absolutely right, the in-store experience has tremendous validity. people want affirmation and confirmation that they have made the right decision for a big purchase. tesla's unique, it is one simple model. complexity that exists in principle is mind-boggling between the financing programs and accessory programs. >> so confusing. >> online technology can solve a lot of that complexity and save the consumer. >> i want to pivot to another bubbling pivot in the auto world. more people would not so great credit are getting auto loans. there was a report out says that subprime lending and .elinquencies have jumped by 9% is this a bubbling issue that could possibly turn into another financial crisis? >> i don't see that at all. company, 7% the own are written by subprime loans. plays anhat subprime important role in the u.s. economy that people would challenge credit. that people would need to transportation to get their kids to school and go to work. thing about car loans that people have discovered is that people pay them first before they pay for their mortgage or their children's education. the other interesting thing is that they pay off their car loans very quickly, while the average term on a car loan is 63 months, typically they are paid off within 40 months. compared to other lending segments, student loans or mortgages, delinquencies on car loans are a fraction of that. so, between the rates and the fact that the outstanding balance grows so slowly? i don't see it as an issue. >> mike, we have to go. take you so much, mike jackson. >> good to see you this morning. >> good to see you as well. that does it for today. tomorrow, jill fitz will be joining us. ♪ thet is 56 minutes past hour, welcome to "on the markets." that's get a look at where stocks are trading 30 minutes into the session. low, not so bad, the s&p is down 6/10 of 1%. the nasdaq, which was again or yesterday, down half of 1%. should you be investing your money? i am by mike croft from the philadelphia trust the. welcome. first let me ask what you thought about yesterday. we had a global selloff overseas that finished badly and in the u.s. we recovered at the end of the day and now it looks a little bit like the reverse. we have some games overseas that have opened up well. >> you are seeing the market selling liquidity, selling what they can get out of the prophet because oil stocks are holding the commodity itself at a significant loss this year, so you will sell what you can. or you will just grin and bear it for what you don't want to hold for the long-term. believe i have used the ridiculous phrase santa claus rally so many times this year. will we see it? >> i think we will. they have ignored russia. they have ignored extremely china and iraqi. it is now ignoring oil. it will eventually ignore that. the fundamentals are in place, corporate balance sheets are strong, corporate engineering has taken a huge step forward. >> massaging the numbers. >> no question about it. now it is up to the economy. the economy looks strong. ,f we can keep it up to 4% pundits are saying that prices are too high, but that is only when viewed from the perspective of known history. we are in unknown history, with interest rates this low the markets have never really operated this low for this long. >> is there any risk that investors look behind the curtain? >> there is always that risk. the risk is that the market correction will come from somewhere that no one is expecting or maybe one guy is sitting in a room somewhere and calculating all day long. >> or any of the head with is that you just named. >> any one of them. >> the china financial engineering may be worse than ours. russia is a real problem. >> and europe. they are experimenting with the concept of pool solve -- pool sovereignty. whether or not the euro makes it is a question of some debate. i am not sure that they can do the type of stimulus that they want. they may be just bluffing. >> we could have a series of shows on that. let me change the subject oil. what do you think happens here? do we continue on the way down? >> long-term it is great for this country. if oil goes down, americans have always innovated. get better, more efficient, cheaper, we have always innovated. not only in a way that protects the margins, but increases the margins. are down one we dollar 84 cents right now. mike, thank you for joining us. stay tuned. "market makers" is. -- is next. ♪ ♪ >> live, from bloomberg world headquarters in new york, this is "market makers. >> real has got tobound, it be great news from those in the construction business. raising the specter of a new financial crisis. happens when the world's largest retailer wants to spend your product? >>
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