And shall be holiday buckles and and scans the dashboard of huber, the taxi uber the taxi transport company. President obama has just signed in order authorizing additional sanctions against north korea. The word comes as sony expands the number of ways you can watch its movie the interview. Theatrical it is expanding, and time warner and verizon expanded access to the movie. North korea has denied responsibility for the hacking and threats to theaters that screened the fictional comedy about the assassination of its leader. Lets review other top stories. Stocks are lower today. The s p 500 trading down nearly nine points. Looking at the Dow Jones Industrial average lower 56 points, 0. 3 . The nasdaq composite, falling 26 points. Oil falling to the lowest level since 2009, down another 1 . 52. 66 for a parallel west texas intermediate a barrel of west texas intermediate crude. Saudi arabias royal court says King Abdullah is being treated for pneumonia. His condition stabilized after doctors inserted a breathing tube. The 90yearold king is in a Military Hospital after experiencing shortness of breath. The Euro Currency hit a 4. 5year low against the dollar weakening to 1. 21 after mario draghi hinted largescale quantitative easing may be on the way because of the risk of deflation. Bond prices were bi higher bid higher in italy and spain. Politicians and leaders are remembering former governor mario cuomo, who died yesterday of heart failure. He decided both times against running for president. He was 82. He was such a strong believer in whatever it was he was advancing. He would mix it up with people when he thought he had to. She could have been president of the united states. He was that great. That is a look at todays top stories. 2014 was the year of the make a deal. Comcast megadeal. Comcasts proposed deal with time warner cable, for example. And another deal a combined 100 billion of deals. Bloombergs deals reporter is here with more. What more megadeals in 2015 . All of the characteristics that were there in 2014, improving Economic Confidence the economy rebounding and rising stock valuations. That should continue barring any major geopolitical event or change in industry. And being able to borrow money at very low rates . Yes. As long as that continues, we should see more and more deals. It got a little jittery at the end of 2014, but right now it looks like a goahead. I mentioned the comcasttime warner cable, halliburton and baker hughes. What characterizes a megadeal . Over 10 billion . It is kind of a moving line. We see some deals of more than 50 billion like time warner and Comcast Directv and at t. But there were also deals over the 10 billion range, and that added to the total volume in 2014. We talked about the telecom and cable deal also pharmaceutical companies and energy. Are there any sectors that were dormant in 2014 that you expect to have more activity this year . We didnt see a lot of energy deals in 2014. There were some but it wasnt a sector that was particularly hot. Thats likely to change in 2015 especially with oil prices as low as they are. Thats making some companies a lot more vulnerable. And Big Companies he would never have thought of as takeover target a few months ago are now a lot cheaper. The u. S. Dollar at a 4. 5year high against the euro. Does this also mean maybe u. S. Companies get to go by things in europe . I think so. People we talked to about 2015 m a are calling for more crossborder transactions. You will not see in versions like in 2014 but theres a lot of cheap companies in europe right now. If you are looking to boost growth there can be opportunities over there. European banks have to look at investments because they will have to go through various stress tests. Does that mean they have to shed assets . European banks . I think there will be m a in the european financial sector. People talking about the u. K. , banks need to consolidate to become these challenger banks. There are opportunities with companies that are weaker and cannot need stress tests, who could find themselves becoming targets. What about in asia . China in the past has tried to do energy deals in the united states. They own amc the Movie Theater chain showing in some areas the interview. More activity from asian buyers . Asia is not my particular focus but i know they were issues with Asian Companies in the past buying energy companies. Im not sure how that will play out. But there is certainly appetite. I want to thank you very much. Brooke sutherland telling us about deals in 2015. Heres a retail story with a healthy twist. Going to the mall for shopping . How about getting your physical webbing you are there while you are there question mark health care has gone retail, and yang yang is in washington with details. As video and bookstores become relics of the past, oncestruggling shopping malls have found a cure in doctors and even obamacare. If you have not gone the way of Retail Health care yourself, you are likely still familiar with the concept. Walkin clinics in storefronts staffed with doctors or Nurse Practitioners to treat common ailments and minor injuries. The cvs pharmacy Minute Clinic is popular here in d. C. Write a jumped on the bandwagon riteaid jumped on the bandwagon in april. There was big growth in the sector, according to the Urgent Care Association of america. The number of walkin retail clinics in the u. S. Was 9400 last year, up 20 since 2009. The trend is explained in large part by the need for more Convenient HealthCare Services now that more than 10 Million People are insured under the Affordable Care act. But the big an unexpected winner here . Shopping malls. Not only are onceempty storefronts getting filled with vacancy rates at 7. 9 this year, but we have seen an improvement. Medical tenants pay higher rent, with good credit and tend to sign longer leases. So this is a rare example of obamacare actually being good for business. But what about the walkin clinics being good for consumers . They are big for consumers. I happen to go to one a few times a year because it is so convenient. It is a big plus for people like myself who cant get lastminute appointment with doctors or dont want the hassle of dealing with an emergency room. It is also so much cheaper, which is a big deal here. Last year, treating a sore throat would set you back more than 590 in an emergency room. In an urgent care clinic, the bill was only 94. Flu treatment is about 128. The same procedures would total over 800 in an er so not only is it a win for patients, for insurance companies, but also for shopping malls. Is this the beginning of the end looking at the cost per square foot of being in the malls . If you want to follow the money more broadly looks like this is the beginning. According to Research Private equity and venture capitalists have poured more than 3 billion into urgent care clinics in 2010. That is a big bet on Retail Health care. Research suggests the growth in walkin clinics has not outpaced demand. So as long as obama care is still the law of the land and remote areas dont have enough primary care doctors patients will continue to turn to ers and neighborhood urgent care clinics. Yang yang joining us from washington, d. C. Coming up, will u. S. Stocks continue to attract investors . We talked to one strategist who got it right in 2014. That is next. This is bottom line on bloomberg. Im pimm fox. Some Money Managers got it right, and some got it wrong last year. Michael purves of Weeden Company got it right. Great to have you with us. How did you do it . What ended up transpiring . My price target was 2100 by the end of the year. We stayed at that level on new years day. My eps call was below consensus if you look at the bloomberg consensus forecast. So i was not a wild bull on the economy on earnings. That earnings would be a nice single digit drive of 6 or 70 7 . Thats what looks like what will happen. The unusual that i made was for expansion this year. Tell us what that means. Paying more for the same dollar of earnings. Exactly. The price ratio of the s p. Why would you pay more for the same thing . Theres a few reasons. One of which, you certainly had cash on the sidelines that was steadily creeping and. After the trauma of 2008 and 2009, and a relapse in 2011 with crazy volatility it takes a while for stability to come back not just into the economy, but the market overall. So we started the year with sort of an average multiple right on top of 30 or 40year averages. We are talking about 15, 16 . Now were up to 17. Anything wrong with that . People like to say thats a little too much but you have to look at the context of Interest Rates, whats happening overall. You can make strong arguments for 21 times earnings, and we have seen that in the early 1960s during a time of very low inflation. What does your work tell you about 2015 . More of the same. We will see priceearnings multiples continue to expand. We will see another decent, not great, year in earnings. This goldilocks has been recharged. Low Interest Rates a study grind in gdp and earnings. 5 for the Third Quarter stronger u. S. Dollar stronger u. S. Dollar. Share buybacks will be a dominant thing this year. Let me ask about share buybacks. That is simple math. The same number of investors putting the same amount of money into the market and you have fewer shares the price is going to go up. It will reflect a higher price. Sure. Synthetic Earnings Growth is what it is, but it works. You can say that to any company that ever bought back shares. You can debate whether it is questionable for a company to do but in terms of increasing earningspershare usually the math will work. The math gets harder with higher valuations. Companies are issuing debt to buy back stock. That is the risk factor. But those companies include corporations such as apple. Sure. And they say we have lots of cash but why spend the cash when you can issue debt . The Interest Rate on the debt are deductible from corporate profits, so in effect you have taxpayer subsidizing the purchase. The question is do you want to does dividend the cash out instead as a way to return cash to shareholders . We will let them debate that. Meanwhile for stock buybacks are on the table for 2015. Any specific Industry Groups that will do better than others . Right now, utilities for example, a little bit of a sideline sector. A huge at performer this year. Outperformer this year. The dow utilities was at a new high in december. A massive outperformance. Partly because of lower Interest Rates, certainly lower fuel input costs. Theres a lot of Financial Leverage in there. That is a sector to be careful on if we get moves in Interest Rates. When you look at market multiples creeping higher, you have to be mindful that value stocks will get bid. This year we saw value tech solid names, microsoft and such outperformers. This year that theme will play out, but maybe with different sectors. Value energy . Once there is some stability returning to that sector, you can pick up highquality energy names at much lower multiples than in the past. But thats not going to happen until we see this very dramatic move in oil start to stabilize setting the stage for value stockpicking. Thank you very much and congratulations on last years call. Well done. Michael purves chief global strategist for weeden and company. Up next, Lisa Abramowicz joins with an update on the first trading day of 2015. Later on a second term for brazilian president Dilma Rousseff began yesterday. Willem marx will explain how the government will cut pensions, battle inflation, and deal with a corporate scandal. All in todays latin america report. This is bottom line on bloomberg. New years eve means so much to so many, so was it in an uber night for uber . Search pricing and the state of uber. Uber delivered two million rides, in line with expectations and 10 times higher than last year. Two million rides . It was their biggest night ever. Also, at peak they were dropping off 50 trips a second. After midnight, more than 28,000 people download the app. It was not as that giving rides. It was but gaining customers. It was all over the world. What we learned from this paris parties the hardest. That blue line is paris after 4 00 a. M. Other cities, new york, san francisco, sydney search pricing was around 2 00 a. M. Overall, a great night for uber. They do deliver the 2 million rides they were hoping for. Whether they hit 100 million in revenue that night, we dont know. So two if we say if we say two million rides, explain what surge pricing means. It is when there is so much demand that you dont pay the typical price for cooper uber, you pay two or four times as much. But uber said only 25 of new years eve rides fell into that search. Surge. Some people said they cant win because you are promising drivers a lot of money and customers dont want to pay a lot of money. But this data illustrates, a tremendous year for ubert. They started off 2014 in 30 countries valued at 3. 5 billion. 12 months later, they are in more than 50 countries and worth, valued at more than 40 billion. Rapid growth. This company is only five years old. So they had in an uber year. Did they make a lot more money because of surge pricing or does that money go to the drivers . Is a private company, so they dont disclose all that information. But it is rumored they keep 20 of revenue. Not bad for a night with two million rides. We will have to check in with you and get the details. Thanks very much. It is 26 minutes past the hour. Time for bloomberg on the markets. Lets get you caught up with where stocks are trading. All three major indices are down on weaker manufacturing data. One individual mover is weight watchers. Even as new years resolutions promise to bring people looking to shed pounds, shares tumbled as much as 15 . Investors are not impressed with their moves. With all the new apps promising to tell you how to lose weight and tell you how many sets to take it is contribute into falling sales. I am Lisa Abramowicz. I will be back with another update in less than 30 minutes. More bottom line after a quick break. This is the second half of bottom line here on bloomberg. I am pimm fox, in for mark crumpton. When it comes to commercial real estate, ditch new york and washington d. C. He is on the road to places like houston, austin, and dallasfort worth for bargains. Thanks for being here. Happy new year. Lets talk about real estate and the idea that it is a little too expensive for businesses to locate in places like new york and washington, d. C. Not terrible for investors, but prices have gotten high. Investors are looking at places like houston and denver and raleighdurham. What qualifies as high when you talk about real estate prices per square foot . It really depends on your yield expectation and youre holding period. When you get into thousands of dollars per square foot, for apartments or office buildings, investors look at the cost. Do i really want to hold as long enough to get the return i want . Houston is less expensive, youll is better employment is better, the demographics look better. So you say houston, places like dallas and austin. Does it have anything to do with the oil business . There is definitely a correlation. If you look at the gross metropolitan product of places like houston boy was driving that. But that economy is very diverse oil was driving that. But the economy is very diverse. One thing that you love is economic diversity. Houston is interesting for a lot of reasons. If you wanted to relocate to houston, what number should you look like for costs . On a square foot basis . You have rents in the teens and the 20s. A place like new york city or london or washington, d. C. Rent is two or three times that. It depends on the business and what expectations are for the longterm. There is an exit strategy if you are in houston because other investors like it. In the past, markets like that did not have depth. We talked about houston, austin, and dallas. What about other areas like phoenix . Phoenix is great. Boomers like it. Millenials like it. Phoenix used to be thought of as a retirement community. But now there is job growth two there. What about charlotte . All about the Financial Services industry coming back. You have two or three Financial Services powerhouses there. One of the things we saw this year in real estate, the jobs are chasing people not the other way around. So people have to find affordable places to live, and the jobs go there. Or they go to school there they like it there they find jobs there. Employers are going where the people are. More employers come because the people are there. Is there a commercial Real Estate Market right now that has been left for dead that is just not attracting attention but we will be talking about it maybe this year . Detroit. Whats interesting, in the survey we do last year we surveyed 51 cities and detroit was number 51. This year we increased to 75 cities and detroit is in the 30s, right in the middle. Is it expensive to be in detroit . You can buy for significantly less than replacement cost. There are startups in detroit because the cost of doing business is so low and rents are so low. Startups are going where there is cheap operating cost. Detroit is a city i would look at. And you have the university of michigan and a lot of educational institutions. Tell me about Residential Real Estate for a second. There is that equation, rent versus buy. Rent. When vacancy rates are around 4 year over year and rent growth is in some markets double digits renters are getting priced out of the market. In some markets, like in atlanta, it is cheaper to buy then to rent. Wha