No direct ties to the Islamic State. So far, it is not known if they escaped or were released. As many as 15 others may still be inside. Hostages are forced to hold up his white flag. No word on what they are demanding, if anything. We do not yet know the motivation of the perpetrator. We do not know whether this is politically motivated. Obviously, there are some where itns that could be. Click through the highs and the decade. Minister the prime calling elections. That that has paid off. More than two thirds of parliament, he says it is an endorsement of economic policy. Only halfway there. I have noticed the changes. The election result was the voice of the people saying this is our mission to repeat such change and we feel we can do that. Since he began his program two years ago, the index is up more than 70 . And it is the biggest leveraged deal of the year in the u. S. Bought by a group of a british firm partners. Petsmart is hurt by growing competition from amazon and other retailers. Selling a Power Transmission business. Price tag, 1. 4 billion. The unit no longer sits in with his longterm strategy. The busiest mailing day of the year. The Postal Service says it will million today. It will be the busiest day in history. Packages through delivery. Failing to deliver thousands of pages in time last year. That was a gain of many peoples existence for christmas. Hours after five hostages fled the chocolate cafe in downtown sydney, police will not say how are left in the building or disclose the identity of the government. Our plan, our only goal tonight and for as long as this takes, is to get those people currently caught in that building out of there safely. I want to go live to sydney with juliett, reporting from our bloomberg bureau. What have you learned so far in . He past hour the last time we heard from the commissioner was a couple of hours ago now. Now entering into its working power. It is midnight here in sydney. ,part from the Police Presence most of the city is how it is faring monday. And have goneleep home. People havew that either escaped or are being released. Police have not confirmed whether or not theyre being released, but it looks like they ran out the door. Have not had enough this is a couple of hours ago. A lot went down about three hours ago. Incredible footage running out of the cafe. What do we know about the government . Understood the government is known to the police by the police. Unconfirmed group boards that he was out on bail. Police are staying tightlipped about this as they try to negotiate with the government. They are now negotiating directly with him and not to a third arty. These reports are still very much unconfirmed because police are trying to keep everything close to their chest, as you can imagine. In september, we did have a terrorist alert. Australia, to its highest level in a decade following antiterror riots and there was a plot uncovered to behead under the flag. All of these things tie into the fact that this is an intense situation. Do we know who the hostages are and how many . What is going on exactly inside the cafe . Sadly, again, quite sketchy. We know five people escaped ier and two look like the other three are workers because they were wearing that uniform. Was told earlier that normally, they have got about 10 workers on that shift. We would imagine there is another seven workers, and it is a very popular cafe. Theorders going through 49 30 this morning. Quite a lot of traffic coming through and quite a lot of people sitting down to enjoy their coffee and hot chocolate as well. People as well. Us,hank you for joining reporting from sydney australia. President obama monitoring the. Ituation peter, we do not know if he has any official ties to the Islamic State. Theo not even know what black flag with arabic writing means. What is the white house saying about this . The president was briefed by his chief counterterrorism official, his advisor there last night. We learned more from the state department at this point because right there is the u. S. Consulate. We know from state department chiefals that all personnel have been accounted for. Big concern for the australians. A close ally in the fight of against terrorism around the world. But for the most part, the message were getting from the White House Administration is we are watching this closely and can. Ing whatever help they another focus in washington this morning is obamacare. Todays the big deadline if you want to sign up for coverage, you better sign up today. Are we seeing any problems with this . We are hearing from the health and Human Services department that the wait times for the call center is a little longer than would be expected normally. But the website is functioning properly, as it has basically throughout the entire and romance enrollment period. 1. 4 Million People had enrolled through december 5. 48 percent of those were new enrollees, people who had not signed up last year. 52 of people renewing their plans. That is important because the government is really trying to reach out to people last year to make clear to them that you need to go look again. More than seven out of 10 people could find cheaper coverage than they could last year. If they do not look, they could be auto and rolled in their own programs and could find premiums next year. What us to we know about total enrollment going to 2015 . Do they say that this was a success . This time around, the administration picked a figure for 2016 and they hope to have 9. 4 Million People enrolled in obamacare by the end of this in romans period. They think it will be easy for them to reach that mark. Werellion people projected. This andation was at other outside groups and said that there is no reason why they cant get past that. Arguably would be functioning at a higher level than last year, bringing more people just as republicans take control and pledged to dismantle this as best they can. Thank you so much. Lets stay with politics. A new headache from the president. He is getting a lot more pushback on a variety of issues from the banking legislation to tax a version issue. Those are just the latest troubles for the car service. We in the media often talk about the white houses relationship with the gop and the infighting within the party. What about the president s relationship with his own party. The democrats . Has laid bare a over in theften is past six years. Phil mattingly joins us now from washington. Passed and bill just lays some disagreements within the democratic party. That is right. Interesting dynamic that will start in full in january when republicans take control in the senate is if the president wants to get everything done, he has to deal with republicans. A brief look into what that might look like with the spending process of these two provisions that are unpalatable by democrats. On derivatives, and campaign finance. The white houses in general agreement, but there is recognition that if they want to get something back, they need to give something to republicans. It gives them the opportunity to fire back on some of the key things president obama might get done going forward. I want to bring in our guest host for this hour. A big media investor in intermedia partners. Is this going to be a split and a party that will only get worse in 2016 . I think it is pretty darn bad right now. Dissed his own party and frankly congress for six years. He is now in the minority sodas not have his caucus behind him. He did not have it behind him when he was in the majority. He has a sensitivity to the three branches of government, particularly congress. His own way. Gone right after november 4, david, harry reids chief of staff, really laid out the discontent within the Senate Democratic caucus about the lack of image integration between the president s agenda and their personalities, etc. To lead thee tries democrats as a minority, he did not we them well as a majority. Let me get you back in here. The question is whether the dissent he sees in his own party will be as bad as the dissent we johnseen within the gop to boehner and other folks . It is a different dynamic but i think there are real problems. Relations between congress and leowhite house, leone up nails it. They were to try to make it better, but even last week, nancy pelosi felt cut out of the process. A large driving force to really in thet back in the face entire process. The democrats are in the minority in both chambers of congress. The white house wants to find moderate democrats and pair them. Ith republicans the interesting thing will be whether or not democrats can stay united like republicans did. That could cause major problems for the white house. Like it was when democrats controlled the senate, 60 votes will be needed to go forward on anything. Specifically, where could we see the biggest disagreement . , the biggest one right now they think republicans can actually move on the trade agreements and the asiapacific region. These are key a key components. That will be a major problem. The other thing to keep in mind is how the white house will make deals. They have put changes on entitlement programs on the table. Future changes to doddfrank to make deals with republicans. Those areas democrats have made that they willft not deal at all. Collects it is a nightmare, at least in my opinion and the opinion of many progressives in the democratic party. Illconceived agreement. I think phil is right that that will be a significant flash point. The other one will be any more erosion of doddfrank. The president has no business to back up on doddfrank. He just is not. We will talk later on your piece on inversions. But those two will be very antagonistic. A Elizabeth Warren has been the biggest foreign on the president s eastside on that issue. She is now being considered maybe a possible contender as well for 2016. I think she has been considered a contender since she won her Senate Election in 2012. A remarkable talent and she speaks for a very specific part of the party. Also comes at a time when Hillary Clinton is looking more vulnerable. I do not think Elizabeth Warren will actually throw her hat in the ring. Hillary has to get through iowa and New Hampshire because everyone who runs has to get through. That will be fun and productive, you will see very creditable people debate in iowa. Brian schweitzer, bernie sanders, and that will help define or not the Hillary Clinton candidacy. And the judo the gop lineup. One of them, ted cruz was saying he fell off his chair listening to the recent Country Music video produced by the Hillary Clinton super pac ear thats the way it. 2016 and this time, i am thinking god. Ut your boots on i literally thought i was watching an snl parody. No redibly important, before november the fourth, democrats had a lock at about 235 electoral votes. The southeast, the mountain west, and parts of the southwest. That number has dropped to about 185. Republicans have positioned themselves well. All right. Stay with me. You are my guest host. Thank you. We will be back in two minutes on in the loop. You watching in the loop live on Bloomberg Television. A look at our company news this hour. About to join those cracking down on amber. Frances material ministry well concern about drivers. Ualifications surveymonkey. According to wall street journal, surveymonkey is now valued at close to 2 billion. And the ceo of a restaurant chain is stepping down. The ceo bob evans has been there for eight years. Fourthquarter sales fell short of wall street estimates. His 26 minutes past the hour, which means Bloomberg Television is on the markets. Time now for the future is in. Ocus gold futures jumping 2. 7 last week and all of this as a plunge in Global Equities erased some 2 trillion from the value of stocks. Course reversing following 1 . At wheree with a look gold futures are headed at this point in the game and how you can make money is can half men can, i want to start with you. Why is gold falling ahead of the fed meeting . Gold is interesting. One said gold was a slamdunk and they were dead wrong. A loss of a lot of money. The reason is, while you have the barricade of the fed raising rates, the world always seems to have a lot of problems. You will see big buying out of india and china and russia. Statistic, the price of gold and ruvell is up 17,000 here that is why they buy in these type of areas. It is the goal that has kept above water year to date. Im curious. With that in mind, how would you trade gold right now . To comment that i do not agree with what was said here. I think gold is nothing more a oneyear low was a reason spy, i think gold is a shortterm short. I like to sell cold here. Speak 2010. As we i think we are short here and go back to the lows of 1130 at 1140, but i think from here, 1210 to 1180 is a great trade. About a 30 change in gold. 1207, a session low on the screen right now. You will be a buyer of gold right now. You will be a seller and you will look forward to is falling further to about 1180. You would be making a profit of close to 3000, give or take. Ubs has a report this morning saying there is downsized treasure for gold, particularly when it comes to the quiddity. Can you comment on liquidity . View of is a western the world a says there will be a problem with gold, precisely what we have been talking about. On the other hand, you have china increasing the liquidity where they can buy into the western markets for the first time. The give and take is making it. Ifficult for a lot of traders interesting to watch where we are trading. Did at 1206. And thank you. We are standing by right now for economic numbers. Manufacturing is out. This data measures manufacturing and that new york region. Hyman. An unexpected contraction because the estimate was to be a reason a reading of 12. 4. Coming in at negative six is much worse than estimated. I am standing and scanning through the elements within it. Inventories were down. If you look at prices paid, a significant increase of prices paid. A positive reading for the prices paid. General Business Conditions we are talking about. In terms of Market Reaction, it is not seem to be a strong Market Reaction to the manufacturing report. Thank you so much. A surprise number out here. Julie hyman at the breaking news desk. The Federal Reserve open market committee. Ony meet this week here wednesday, they will announce their thinking on the u. S. Economy. Will they drop this considerable time mileage Interest Rates . An economy already recovering and creating jobs. His data puts a damper into it my guest host this hour is the managing partner of intermedia partners, and the former senior economic adviser to the president. I know you keep a strong you monitor the jobs market for the economy. Is it as good as it looks . It is not. Affirming, thee number was huge in november, but it was all service again, about 11,000 of that massive number was manufacturing very we still ofe an incredible egg nation wages. The parttime of necessity is one we should incredibly concerned about. 11 million men and women who cannot find the time and limit. There is strength in the Services Side because of credit losing, and we will always get that in this time of year. But manufacturing continues to. E soft and wages are very soft really unacceptable. If wages continue to be soft, business head right in moving toward a Monetary Policy . The fed has to be careful they do not create some more credit bubbles. When you have more than 90 of , lessorkforce in service than 10 in manufacturing, there is an inevitability to credit bubbles. We cannot all be in service to each other. We see it periodically. About every 78 years, weve booked the bubbles and they tend to burst unexpectedly. We need about 20 of our women and men making something. Is, thatas the economy is a target that has to be in mind. One of the reasons i am really against the transpacific trade agreement is because i think it will further the pressure on our own manufacturing sector. What is interesting is mike bloomberg, a majority owner here at at bloomberg, a child graduating from high school may want to be more a plumber than Harvard Business school. Mike bloomberg is both very sensitive. About half the population has no business going to college. That is a pejorative statement. Iq. S a characterization of it is not a critical statement. It is a sensitive statement did we cannot build an economy in service to one another. You cannot be 317, 300 18 Million People today with our diversity. Every young person who wants to go to college and should has should have every opportunity to go. But we have so denigrated manual labor and manufacturing. The automaker. It right. Not get germany gets it right and the other countries get it right. China surely gets it right. All right. Stay with me, my guest host this hour. Right here, we will talk with a billionaire investor. Burger king just closed its shipping toar canada on its inversion deal. A former big wake and president obamas kick for treasury under domestic finance. The nomination has caused a firestorm in washington with Elizabeth Warren, leaving the charge saying, the white house claims mr. Weiss has is personally opposed to inversions. And hes the count against tax inversion . Meanwhile, a just passed a win for a company who wanted to move theseas very joining me is president and ceo of international and. Inversions. Let me start with you. There was a slight win for companies in this and in no very they will move their headquarters overseas. What do you think it would be like for them in 2000 13 with congress . Good morning and thank you for having me on. Latest. Ns are the what is critically important is that the political rhetoric over the burger king deal and others like it, and the potential for legislation and read as a response to it, have got the Global Community broadly concerned. My organization represents the u. S. Subsidiaries of foreign michelin,like nest