Though. We will talk more about bitcoin throughout the next few hours. And for the next few hours, the house has passed a bipartisan budget plan. It could help to lift the crisis that is hanging over washington. Joining us is our contributor. Also, the former Senior Adviser to president obama. Also with us is peter cook. We have our whole team coverage. Peter, lets start with you. Will this be a done deal . That is the expectation right now. You have to be careful that the Senate Relations are not that great. They have had two straight all miters because of this by. They are cranky right now. Everything that i am hearing indicates that they will clear the senate. There is a strong bipartisan vote. More than 300 votes in favor. Does anybody like this . Absolutely not. They do not see enough deficit reduction here. That is really something that stuck there. Americans could lose Unemployment Benefits. It did prevail because they end the crisis atmosphere. It is a big victory and john boehner took aim met outside groups for criticizing the deal. Moreis bill gets us deficit reduction than what we have under the budget control act. I came here to cut the size of government. That is what this bill does. Why conservatives would not vote for this is beyond recognition i can come up with. Of all the big implications from this legislation, there is as live between john boehner and the outside groups. Does it portend inks to come . Admonishing the tea party conservatives. What did you make about . Its about time. He has some backbone. Theyre going to be people who vote against it. I do think that they were forced here by the shutdown. They had to show that they could govern. There should not be too many victory clap. This is a sign of progress. Will congress build on this and do more to help the economy in longterm order they step back and say we have done the bare overum . Well have to see the next week whether that spirit of cooperation continues. We will bring mike mckee into this. The fact that the Unemployment Benefits ended right after christmas, that cannot be good for the economy. Good for the economy. This whole agreement is 10 of a joke in and of it self. Speak, they are not going to spend more money. Theyre going to cut money and pay for it with gimmicks. It really does not make a whole lot of sense. The only possible benefit to the economy is that it takes washington out of the headlines. At least the possibility of a government shutdown. It might give business more confidence to start investing. It is not something they should be proud of or that would give a major boost to the economy. We still have the possibility of a debt ceiling light coming up. And again, i have to think that this unemployment cut deal comes a horrible time for people. One of the great benefits of unemployment is not just being unemployed, the to the general public at large. People tend to spend everything they have. That money will not get spent. 1. 2 Million People get this benefit now. You have to be looking for work in order to qualify. If they all job out of the labor force, you know what will happen . The Unemployment Rate will go to 6. 5 next month. A lot of confusion. It is a real problem. You mentioned a good point. How can we build on this . We are not taking any victory laps. They fall short. How do you build on this . You have to have will. The reform probably gets done eventually. My view is that if they do not do it, we will have a very hard time during the primary. On the economy, the real tough stuff has not been done. Domestic spending has been cut. We dont was tax rate plaster. My guess isadline, not. Hattie think they have done in these negotiations . This is not a big deal, but they should get credit. Nobody could get along. The country could not be more frustrated. Even though it is a modest deal, they should be given a lot of credit. That house bill was a big boat. Yes, there were tea party members. They brought people up. Maybe you can build on that. They both have a lot of credibility, so they deserve a lot of credit. The senate isthat not just a gimme. Is the fact that unemployment is not in the deal, could that mean that they will not let this thing get through like this . If there is a problem, it will be because there are so many republicans who will not go for it. You have marco rubio and all of the folks who could be contending for that president ial nomination. They have all said this is a bad deal. Mitch mcconnell is expected to support it. Republicans have to step up and back this. We have not heard them step forward. I am hearing that there is an expectation that it will get the votes that it needs. There will be some drama and there are frayed nerves right now. A do think it will all be smokescreen essentially . They will eventually vote for. This is where all of the trouble has been. They have been the problem solvers. For now, they will throw the stuff the tracks. I do not see that happening. I think it will get done. There are a lot of questions here. Is this a single moment . I think so. What it shows is that they stood up to the tea party. The other republicans . Right. You can do this. What took so long . Is scary until you do it. It is not as bad as you thought. Immigration will probably be the next big test. Can they put together a coalition, even if they do it piece by piece . That is easy for david to stay. Running in a republican primary. Also, thank you. Qualcomms steve mullen ampf will mollenc become the ceo of qualcomm. Qualcomm is the Worlds Largest maker of chips for phones. The microsoft board was said to opf tosidering mollenk replace steve ballmer. We will see if that changes. To think that had anything to do with it . It is a fairly quick turnaround. He have to imagine that called him up and asked what was going on. We want to keep you and make you ceo. It shows you how qualcomm turns on a dart time. They said it could take up to a year. I am fascinated. Some peoples names have risen up and then they have fallen off the grid. Stephen from nokia was considered a possibility. Alan mulally has straps down the list. Within microsoft, there are differing views about the future of the company. Is the future of the company to fix microsoft and bring in someone who has turned around a troubled part of boeing . Look for someone who could fix the culture . Or do you go with someone who is running the Cloud Services business and could be the future of computing . Or do they go to focus on mobile . You can see the different focuses of the board as they try to sort through the potential candidates. They cannot make a decision. That ise korean true. And now to a company that is trying to get 20yearold. Were talking about mcdonalds. Not so much a big mac. If you are in the mood for some hash browns right now an app or that. It is the latest attempt to revive sales in the united date. Alix steel has been looking into this. I tried to download it. You can download it, but you cannot use it. It is only available in certain cities. Here is what it is. It is basically like a giant coupon. You get a hot and spicy for one dollar. Something along those lines. They send you a coupon and you go into the store and you redeem it. The goal is to expand the Customer Base, not only for younger people, but for people with higher incomes. It is difficult to get traction with them. What it is not as a way to order and pay for food online. Other stores are testing as well. You can download the app anywhere, they can only redeem it at 1000 stores. It is really a company struggling to keep it market share. They were down 8 10 of one percent. That was below estimates. This is something that you are probably fill your it. Chieflds created a officer position back in october. They were trying to ramp up part of its world. Really see mobile and digital as critical for business here in the u. S. What is so special about this app . Peschel or just different. On the one hand, the good thing is that it is a nap. Everyone needs an app. You come in to the store and you buy other stuff. You upgrade to fries and you buy a coke. That is where they make more money. About 70 of stores are franchisees. It is a different formula than starbucks. Even Grocery Stores sell starbucks. That is the model for how they should work. There is no algorithm. Theres work to do in the back. The Real Advantage is not having a different place to get a coupon. Ands knowing your customer their spending patterns. Then, you can start to drive sales. That involves a lot of work. Mcdonalds is really set up. That is why they have achieved digital officer position. Digital a chief digital officer position. About their Digital Strategy and the hiring of this is what he said. We were not going hard after digital. We have markets around the world that are doing some things in digital. We have areas where we are testing mobile payments. We have some areas where we have mobile ordering. We have some online ordering in some areas. We have not had many markets. We have a couple now, but not many who had Digital Engagement offerings. He says exactly your point. Mcdonalds has been late to the game. This becomes the law of large numbers. Theyre too big to grow. You need to attract new sales. Arepeople that you go to the ones you may not have jobs. They are very correlated to the job market. Over many years, they have been able to grow revenues. Be clear, they do make 2. 7 million per store. There is a big kill in that rough realm. I would still have a burger. It is not too early for that. We have Great Stories ahead for you. Ati was out and they have a cast of characters. And beyonces new album has stopped. No one knew about it. It was an itunes surprise. Stay in the loop. You are in the loop. Qualcomm has Just Announced that ollenkompf will be there new ceo. He succeeds the man who helped to steer them a former intern will become the first woman to run a major automaker. She has a science background. Joining us now with more perspective is our contributing editor, jeffrey hayzlett. He is also a strategy consultant for a number of fortune 500 companies. When the move here. Across the board. We are starting to see them get down to just a couple of candidates. Qualcomm,ofts was youre saying people going back and negotiating. He was mentioned, was he a real candidate . Probably. He gets to stay in his own house. Everything else. This is not a good time of year to recruit someone in seattle. San diego is looking really got. I wonder what this looks like. Paul jacobs and the board at qualcomm said you will not go. We will do something to make that happen. That is what has been going on with all of the other candidates as well. At ford, they have had that conversation. They have had more time with him. What youll see is that we are down to a horserace. Would you say that microsoft is doing a poor job . Should they have named somebody a while ago . Is a big company and a big change. Theyre really deciding what business we want to be when we grow up. Are we a cash business or a transitional business or are we a Growth Business . That takes a different kind of leader. My belief is that it will come from inside. He was brought in a couple of years ago. We might see someone come in from outside and really do it. Switching gears to another company. Gm just named a new ceo. You say it is just about time. Absolutely. Most women would say that. I think she is a good choice. It will be interesting to see what she can do. They actually organize the new team. They have been put in her spot and taken over the old spot. When a sharp individual. She does not have a background in marketing. Tell me about marketing in the car industry today and what rolled up lays. She did have a role in marketing. In gm, that is their line. They may have a more traditional role. It is about the product and developing the product. That is where you see the marketing at gm. They have made major switches. They have the design team beefed up. Theyre up 25 . Quickly, would your advice change for a woman ceo versus a man ceo . Not from a business perspective. From a politics perspective, without question. I looked around to see if they listed her age. I can only find it in a couple of leases. That kind of stuff goes on. We want to make sure she does not play those kind of games. Thank you so much. Host of the c suite right here on bloomberg television. Coming up, we chew on the risks behind it quite. Is it more of a threat than it is worth . And did you buy your Lottery Ticket . We crunch the tickets and have your odds on cashing in on the jackpot. You watching in the loop. Good morning. I am betty liu. Is 26 futures it minutes past the hour, so we are on the market. Equity futures are higher this morning. There was a threeday drop. Stocks have moved almost 300 points since september. This is a little bit of a respite. We are on the market again in 30 minutes. Stocks thise in year has been something amazing to see. How long can this market run . The hedge fund Dialectic Capital management bets against some companies. They look at the companies with the highest risks. They say the companies represent bubbles. We have talked for years. You are a client. Still am. You and i have talked for over a decade. You are talking about the current market. What do you see . Risk has been intentionally mispriced. What do you mean . The fed has easy money. People are taking more risks. Sometimes, there is a reach for yield. It could be in dividend stocks. You how we hadl so many people come on the still program to say to buy dividend stocks. There were pension funds. They are dying on the vine. That theybenchmarks are required to hit. Theyre doing everything they can and forcing up prices. We see this with the secondary effects. Short in a market that is going against you . It is a Risk Management environment. It is the opportunity that we have today to risk manager all the way up. You have to be humble and acknowledgment iran. When you are wrong. There are not many of us last. That is the untold story in the last year. How many short funds. You are longterm. You make big investments. There have been a number of short only funds. They have gone completely under the seer. It has gone from 103 at least. Sons funds . Of substance. Were seeing short ros. Borrows. Have been growing assets, but they have not been growing short bucks. Do you think that could change when the fed normalizes next year . If they do, that that could possibly change the scenario . We are are ready seeing a change. It has gone up. Stocks haveyer stopped acting to the right. It is not all about the expansion that it was. Fundamentals are starting to kick in. That gives us the encouragement that there is normalization happening. Thing . Hat calendar year people with a yearend results and say they do not want to be in this thing . This is typically one of the strongest seasons. We call for continued strength, but the weakest season was incredibly strong. We had strength although it through the latter part anyway. I do not know what to make about that. Where you think is the worst mispricing going on . Where is that the worst. It is the most extreme in certain areas of tech. If i was a short seller of the bubble, you are a very smart man to do that. We were sitting there and watching a company, i think it was junior. You were sitting next to me. He was wearing rattlesnake cowboy boots and talking on the stage. And starteder to me telling me things about their accounting. You said you sat down with the cfo and he was trying to explain something to you. He kept talking in circles and he said it was really compensated. You said great, explain it to me then. I will take the time to figure it out. That was a big change for my life. I could figure stuff out to. That has been your approach to your investments. You do the research to understand these companies. You do not let them off the hook. A lot of life is pattern recognition. You look for patterns. Then you have to go in understanding accounting and read the financials. Where do you see the same patterns been . In the same bubble. You see businesses that did not make money. I never thought i would say that again in my lifetime. Valuations are obviously unsustainable. Businesses are not profitable. Theres clearly a lot of risk in the downside. These valuations are greater than the total market opportunity. Printing, the market is 2 billion. So the entire cumulative sales of all of the Public Companies is 2 billion . And aggregate Free Cash Flow is negative or it. There is no Free Cash Flow. People are buying into that. You cannot measure by sales today. If they get one percent of the 14 trillion Manufacturing Industry the problem is that they are not addressing the Manufacturing Industry. They address a fraction of a fraction of that industry. It is not like this is new. You nameese bubbles it, they are all recycled. They have been around 25 years. It is a nice business. You are short then, right . 3d systems is a great example. You have a very promotional ceo. He set a meeting harder. I businesses 30 technology. Right . It trades at a high multiple. What did that mean . He says theres unprecedented demand. What does that look like . Sharp revenue growth. It should look like karma high margins that are expanding. It did look like shrinking inventories. Sell down your inventories. It should look like low receivables. We then look at the systems, do you see that . Inventory, that they recognize tripled. Is really like 13 of equipment sales. Why are they tripling . They are 77 days. They are supposed to collect according to financial statements. Somehow, it is 77 days. I started looking at the acquisitions. I ran a screen of all the companies that they bought since 2011. I could not believe. They have bought 13 or 14 companies. Basically one acquisition per quarter. There is not necessarily impropriety there. You could play cames with the accounting. They have only grown there enter sales by let me play doubles advocate. When he says off some, i assume and he means height hype excitement over 3d printing. It could be a game changer in virtually every industry. In housing, you could start fabricating homes. In retail, i assume that is what he is talking about. That is why people are buying into it. That is the multiple. You just described. If you go and buy one of these, what could be more awesome . Print me a coffee cup. That is where the imagination is wild.