Microsoft. The company is in talks of buying the maker of the raft. Ive videogame minec my kids love it. President obama is set to set out his strategy to attack islamic militants in an address this evening. Kerry went toohn iraq in an unannounced visit. Nearly two thirds of americans think it is in the nations interest to confront Islamic State. I want to bring in White House Correspondent phil mattingly. Speech comes one year to the date at the president gave a primetime address on possible airstrikes in syria and he failed in that effort. So, what is different this time around it is a total around . It is a total aboutface. Will of the the United States citizens to have a more active engagement from the u. S. Is up nine point. What we have seen since june with the Islamic State advances in iraq, with the murder of the u. S. Journalist has galvanized support. What you will hear from the president is to lay out how they will address that, and you need to keep a close eye on what members of congress are saying. There is skepticism about what the president might present, something Speaker John Boehner outlined yesterday. Take a listen. What we need is a strategy. Therethere is a strategy, is no reason to talk about the specifics because i do not know how they fit into the broader strategy. What you will hear from the president is a multi pronged strategy trying to address the concerns of john boehner. There will be an announcement is ready to expand into syria. With apple pay, your credit card number, the 1980s technology of the magnetic strip is irrelevant. You will no longer send your numbers from the card. There will be an encrypted process where you are sending a secret code. Apple will never know where you spent the money, how much you spent, what you bought. It is an agreement they struck with all of the Credit Card Companies. 83 of total u. S. Credit Card Transactions will be able to take place on apple pay. It is a next generation of security. They are saving the Credit Card Companies from any investment they are making on this front. Credit Card Companies they are not going anywhere. Will still see plastic. Credit Card Companies are actually transitioning. Instead of the magnetic strip, theyre hoping to put a chip in and they are hoping we can this will accept this security because it will be expensive to change over. Hopefully apple pay will put fire under their feet. Ladies, thank you so much. Coming up, a new ranking of americas most political politically powerful billionaires. Find out who did not make the cut. Road jack, alibabas warriors they are getting a great reception as they prepare for the recordsetting ipo coming up. They say money buys power. If that were the case, bill gates would be considered the most powerful billionaire because he is the richest, but a new book says otherwise. It ranks industrial brothers charles and the coke number one. Sheldon adelson and Rupert Murdoch are among the top six in this new list. The director of government studies at the Brookings Institution outlines just how powerful these billionaires are when it comes to politics in his upcoming book billionaires reflections on the upper crust. Great to see you this morning. You certainly stirred the pot a little bit with the early leaking the release of your rankings. It seems pretty obvious, but explain to us how you came to say that the Koch Brothers are number one. Are 492 billionaires in the United States, so what we did was to look at the political activism. Some of them are making contributions. Some are running ads. Some are engaging in advocacy. Others have organized a network of nonprofit organizations. I ranked the Koch Brothers number one just because of the amount of money they are spending, the network they have put together, and the fact that this year they are focusing on those senate races to try to win the republican control of the senate. That has been hard to come by some of this information, right . Some of it is not public or easily discovered. How are you sure about this ranking . This actually is the biggest problem in looking at the political activism of billionaires. When you look at the system of campaign finance, we really have gone back to the prewatergate era of secrecy which is always a competition for democratic systems, but a lot of billionaires do self disclose how much they are spending. Michael bloomberg, for example, it is putting 50 million into fighting gun violence. The Koch Brothers we can track Television Ads so that our public metrics you can look at. We have to say, michael bloomberg, the majority owner of bloomberg lp, but on the Koch Brothers, some might say they spent hundreds of millions of dollars. They will reportedly spend about 300 million in these midterm elections alone but they have had failures. They failed to elect mitt romney for president. They failed to repeal obamacare. 2012 was a big failure for them, but these individuals are smart as the guys. What they did after business guys. What they did after 2012 as they concluded their advertising and political advocacy was too dry, too analytical. What they have done is retool their messaging. They have ordinary couples sitting around the Kitchen Table talking about obamacare. They have a much better chance of doing well in 2014. The early guess is that republicans had a great job at winning the senate act. Tomow did you come with stier being ahead of Rupert Murdoch, sheldon adelson, and others . He was probably the least known, and he is very rich. His issue is Climate Change. He has pledged 100 million in this election cycle alone to raise Public Awareness on that issue. He also funded state campaigns in california and is put money into government races at, so he is ending up his level of political activism. Some are calling him the Koch Brothers of the left. We were with him on his ranch and he said i would spend whatever it takes to further my cause is. So far, he is not been all that effective, for instance, with trying to get it key stone pipeline get the Keystone Pipeline completely canceled. There certainly has been a mixed record on a lot of these billionaires, and raising the Public Awareness of Climate Change is a huge challenge. Getting immigration reform, fighting gun violence even repealing obamacare what we see is these billionaires putting a lot of effort, a lot of money into the process. So, the rest of us need to Pay Attention to what they are doing, how they are spending their money. Thank you so much for joining us. The Vice President and director of government studies at the Brookings Institution. He also has an upcoming book. By the way, that is not all. Be sure to catch the special that we did with tom stier, titans at the table, that includes my in depth interview with former Hedge Fund Manager who takes us inside of his 1800 acre ranch in northern california. Go to bloomberg. Com video and search titans at the table. Coming up, the ferrari parent wants the sports carmaker to shift gears and well tell you who won the battle. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone and bloomberg. Com. Good morning, i am betty liu. The chairman of europe secondlargest bank has died. He was 79 years old. By sendformed santander spending more than 70 billion on acquisitions. There is speculation that his daughter will succeed him. It appears that ali babas roadshow has been a huge success. Ali baba received enough orders for its upcoming ipo to cover the entire deal in just two days. The Public Offering is expected to be the biggest ever in the u. S. A shakeup of the italian supercar maker for ari the chairman will step down ferrari. The chairman will step down after a battle with fiat. Overo marchionne will take as they shift into upscale cars. It is 26 minutes past the hour. Bloomberg tv is on the markets. We are just slightly lower. It has been pretty much unchanged for the past several sessions ahead of the opening bell. Earnings are still coming out, including krispy kreme which disappointed, trailed forecasts, and that stock is lower in the premarket. We are on the market again in 30 minutes. The apple ceo tim cook delivered on his promise to take the company into uncharted territory, including wearables and he unveiled a smart watch that combines health and fitness given abilities with smartphone like features like messaging and maps. It is as much about personal technology as it is style and taste. It seamlessly combines materials in software and technology, and we thought not only of the function, but of the way it looked. Apple also announced its own mobile payment system, apple paid a unique system that they hope will totally replace your wallet. How impressed is the Tech Community . To me from boston, there it david aronoff. David, you know quite a bit about the two markets that apple is now entering into. David, you said after listening to tim cook and apple, you are glad you did not invest another wearables. Yes, good morning, betty. Thank you for having me. It is interesting. Over the past two years we have seen a number of companies go into the wearable space and the phenomenon around connected devices. We have probably seen one dozen or more related to fitness, identification. In the wake of the announcement, it is hard to look at a lot of them and see that there will be room for them to breathe. Do you think someone will be put out of business . I think they will. I think there are a lot of fledgling companies that garner a lot of interest. Certainly some venture firms put a lot of money into these companies. The question harkens back to when the first iphone touch was released, and you had connected music players, including a company we invested in and fortunately sold before that came out. Which company was that . It was a Company Called zing that dell bought. It was a successful outcome, tremendous prescience in understanding something was in the air. Good timing, you sold out before that happened. David, the other wearables, and i think about in the health space, you have fitbit, which has Something Like a 68 market share, the nike field band, jawbone do you expect those big players, they could be put out of business themselves . It is something i have been thinking about since the announcement yesterday. They are largely singlepurpose platforms. They are certainly much smaller. They are a lot cheaper than the going to be. In thinking about the spectrum of offerings, you could imagine they will be room for things that are singlepurpose and far less expensive. The thing that is interesting aout the iwatch is from different facets it covers from fashion, to fitness, to hardcore workouts. Take me into the mind of a vc. After you see these presentations by tim cook, the new devices, would you invest . How will you try to invest off of that . I think the way that we look at it will be to try to figure out the ecosystem that it is likely to create. So, this could be a watershed that form the way that the iphone was hurt when we think about the app economy, the ad economy, the accessories economy that has been created in the wake of the iphone seven years ago, you have to wonder if the same thing will hold for the apple watch. Fitness applications like runkeeper, they are up and running, have great following, have raised Venture Capital money, and apparently are doing quite well. So, you think about other opportunities for that App Ecosystem that willy wahl because of this new device, and i think that is probably where we that will probably evolve because of this new device, and i think that is where we will turn to. What about security tim cook said Identity Theft will be virtually impossible using our devices. So, could that area be put out of business . I do not know. That was one of the more bold statements tim made yesterday. Yeah. That masters work was in area, computer science, and ive been investing in it, and i was developing it for quite a long time, so i look at it with skepticism. The bad guys always figure out ways and they are always steps ahead of the good guys. I think there needs to be more data around that and certainly more education. Stormok at the icloud last week and apple was very quick to diagnose the problem and say it was more a pilot error as opposed to anything compromised with icloud, but for lay folks not involved in technology, i am not sure they get the distinction. When tim goes on stage and says boldly that this will eradicate Identity Theft, you really have to understand what that means, and also, kind of, silo that into the i watch works only with the iphone six, or the iphone five. When you think about that being the method of identity protection, or the new iphone, there is more than needs to be revealed and explained. It would be great if indeed that happens. Your question, the impact on a bunch of other companies you know, this is a space, in terms of the enduser identification, where it is still emerging. It really is still emerging, so im not sure it puts companies out of business that are huge, but we will have to see. Right. It certainly is going to change the dynamics. David, thank you for joining us. David aronoff, the general partner of fly bridge capital. Moving and shaking this hour legend is him soccer David Beckham, who is trying to bring in Major League Soccer team to miami and it is not that easy. Miami has rejected his proposal to build a waterfront stare him stadium, and he told Mark Crumpton that he has not been discouraged. I have said that i want to bring a team here, and i will take 18 to miami, but obviously there are politics, speed bumps, and we have come up against those, but to be honest, i have been very cheeky in a way because i have gone into miami and i have said, ok, i want to build Wembley Stadium next to buckingham palace. Adium ono have our st the waterfront. It has not worked out like that. We have alternative sites, and like i said, it will happen. Well, you can watch all of that interview with David Beckham today on bloomberg bottomline line with Mark Crumpton at 2 00 p. M. Eastern time. We were speaking about wearables , and we will have the ceo of watch, what the new apple means for him, and whether they might be going byebye because of the apple watch. We will tell you which retailers are forecasting the hottest toys that could end up on your childs list. It might not feel like it, but the Holiday Season is back for top retailers. Companies are using all the tools at their disposal to figure out which will be the top sellers. Walmart called in a team of experts. The linux very. There she goes. Oh snow globe. Alpha doll. These are a few of the toys on the chosen by kids list for the Holiday Season. For the second year, walmart invited hundreds of kids to dallas with one important, but fun task, play with toys. No. The kids ranged from 18 months to 12 years and voted on their favorites, and with the kids in charge, they discovered what they wanted. Creativity and crafting with girls flocking to the decorate your own phone case and the sewing machine. One word frozen. Holiday hot wheels remotecontrolled flying car. They are being touted as a way to get insight into what their tots want. Rtantly,even more impo walmart uses a list to drive inventory decisions. Last years top seller for girls was an earlier version of the. Lutter by terry ferry we really realize we needed to have more to have more to satisfy all of the girls that were going to want it. This event helps us see that in a way that the buyers sitting at their desk would not have known that. The end goal, which can be a challenging 1 the right tools, the right price, the right amount to stock shelves and fulfill orders. That looks fun. Julie hyman jointly with more. What is going to be popular, using kids it seems pretty obvious. Traditional you have done Market Research with buyers and distribute it tried to figure out the trends. This is the second year walmart has done this brought in the kids themselves. They are broken up into different age groups and given a curated group of toys. It was kind of fun. What did you like . I like the bow and arrow. There was one boy enthusiastic about that. It was infectious. There you are doing it. Ferry, the fact that it levitates the girls were into that. They do this because of Inventory Management as well. That is part of the story here. That is really part of the story here. For any retailer, whether youre talking about toys or clothing, you do not want to end up with too much of the stuff people do not want and not enough of what the people do want. If you look about one month before christmas last year, just online, walmart was looking at a relatively high outofstock level. There i am riding around in one of the toys they had the event. [laughter] target also had problems with outofstock and the company that is the least problems, not surprisingly, amazon. While mark has the issue that it walmart has the issue that even if it hasnt has them in the store, they are not able to get them onto the shelf bec