We dont know if this is politically motivated. There are some indications that it could be. Threatgovernment cited a posed by the Islamic State and raise the terror rating. A sweeping victory in japan gives the Prime Minister a mandate for his reform package. It forced leader of the opposition to resign. Thirdsnt more than two of the seats in japans parliament. Obama congress is getting a green light for stricter sanctions on russia. It allows them to send russian weapons to ukraine. It is the largest leveraged buyout this year. A group led by a British Company is buying petsmart. Beat out another firm. Petsmart has been hurt by other retailers. Holidays,et near the its the busiest day of the year , mailing day. This is a rush for the Postal Service. Henan 40 handle a six million cars and the packages today. The post office as you can wait until the 20th. Amazon is saving the u. S. Postal service. Lets do a day to check. A nuanced data check. Yield does nothing. Its back to where it was on friday. West texas gets a bid. That is up . 33. Vix is showing attention. It is 62 a barrel. The ruble goes just to 59. With a bid on oil, russia continues to deteriorate. India has a difficult weekend. We dont often look at that. Indias currency weakens. Never go to australia. The news that we saw last evening, they confront islamic terror. Behind elizabeth street is martin place. Five hostages have escaped from a chocolate shop. Juliet, tell us about downtown sydney right now. As weere be any normality going to tuesday . That is what the new south policeremier and the commissioner have called for in the last hour. This is a tense situation. A number of hostages are still being holed up in the cafe. Pedestriane is a place. It was shut down by police. Area, itu work in that will be business as usual tomorrow. They are expecting public will operate as normal. Weve been reporting that the shooter has ties to the Islamic State. Q telecine else about him . We dont know if he does have ties to Islamic State. There has been unconfirmed reports from some of the five that escaped earlier today. S flag. Asking for an i he was getting them to hide up another hold up another flag with arabic writing on it. That was not linked to the Islamic State. It is other terrorist organization acclaimed to that flag. Police of said that the gunman is known to them. They are trying to lock down a number for that persons social media account if anyone it could be tied to him. They are confident there is only one location that he is taken hold of. There were reports earlier that there could be bombs throughout the city. Police are not worried about that. You have been there recently. My former employer was there right in the area. This was a big pedestrian mall. It was a great place to stop for coffee on your way to the office. Its not an accident. This is the financial heart of australia. Is the equivalent of something happening on wall street. Its right next to the central bank. Its near a financial hub. Its not a chance location. We are thrilled to bring in guy kawasaki. He knows a little bit about social media. He is known with apple and facebook. How money books of you written . 13. When you look at the sky, the linkage here of terror to the speed of your social media. They are entwined. Information is fast and free and you cant stop it if you wanted to. We saw this with the rebels in colombia. What did you observe in sydney on your last sojourn down there. Popular city. Its a great city. No one on this desk would have any idea. Obviously, they have had these sweeping raids. An 18yearold was shot. The terrorism alert was raised. Are shocked people by this . Are people in australia racing for something terrible like this to happen . I dont think so. I spoke to one of my colleagues this morning. He assured me that everything was fine and they had been locked down the office and dismissed early. There was a sense of calm. The most troubling aspect is we dont have any sense of one of the hostage taker is actively and i could to a group in the middle east or if he is a pretender. The government has not has been worried about increased recruiting it. We will follow this throughout the morning. The markets are front and center. Carl is with us. Its the bounceng in oil. Would you think about over the weekend . How low can oil go in the first part of next year . Until one of the major producers blinks, we are going to see a decline. Will it change the fed meeting . Tothey should not respond price spikes. I dont think they will significantly respond to this. Wordsy wont say three about it. Item the statement will reflect that. She may highlight this in the press conference. Low oil prices are positive for the u. S. Economy. Oil pricesthat lower make it harder to get to inflation. That something economists are aware of. Thats not the type of reflation they should be responded to. They should be responding to longterm trends in a onetime spike or trough to to a dramatic move in the price of any commodity. This flies in the face of what bill gross told you friday. Absolutely. There is some real disagreement with the fed will do. The u. S. Is a net oil importer. It hurts some sectors. This is a positive for the u. S. Economy. That. Udley believes we will see more in Janet Yellens press conference. Had you see this rippling across emerging markets . We are not sure how to take this news. That oil importer or exporter. If its an exporter its a problem and if its an importer, its an economic stimulus. It should make a big difference in india. We will see. I am looking at the russian ruble. Its 59. 23. Its depreciated since weve talked. It is outpacing last weeks jokes about Vladimir Putins age. Get the hummer one. I need to worry about elon musk more than anybody else . Do you think this will have an on Renewable Energy . Is the tesla high status by . Both. We look at face back in apple here in a bit. On surveillance, petsmart has been acquired. We will discuss the financials next. This is bloomberg surveillance here co we are streaming on your phone. Good morning. We are in better shape than we were thursday and friday. Futures are up 101. Here is olivia sterns. The biggest deal of the morning is the largest of the year. Petsmart will be acquired. Tom is on the brink of buying a cockapoo. That is a 39 premium. We have not really seen a lot of private equity leveraged buyouts this year. The stock market has been doing so well. It made little mergers and acquisitions a little bit more attractive. This was a very competitive option to buy petsmart. They beat out apollo and kkr. Nobody could figure out why petco has been doing so well versus petsmart. Petco has already been taken over. For like the website petsmart. You are not supposed to feed the dog people food. We are in trouble. The 500 pound gorilla is amazon. They have been driving down prices. Can anyone be amazon . Hard to imagine. Pets. Com one steroids. They want to sell you everything. I wife ordered something on saturday night and the Postal Service sunday morning livered. My lord. Can you imagine this with apple years ago . We hear a massive debate about retail recs and mortar and amazon a. To you by the retail analysts on the channel . Is this just a bunch of baloney . I think amazon wins. The chew not browsing toy and then actually going into the store to feel it . There is a value in having points of presence. They have a warehouse. You have been trained to think of it as a warehouse. You still go into apple. You dont go to apple. Com and buy everything. I love that. Best case, look at apple. Thats not fair. I am going to get the lab a bed that prevents it from snoring. Not a lot ofn sleep because i have a snoring lab. This really shows you the paulson enthusiasm. We last sawhen these private equity firms compete to do these big leverage buyouts. It won out against kkr. It was very competitive. I wonder if this is a sign. There is an activist investor driving this. Has been urging petsmart all summer long dont take out any new debt. Lets deal with your problems by getting a sale instead. Here. Winners is there anybody not of the list . Everybody was involved in this deal. Isthe way you win in the end taking a little piece of every deal. Petsmart. 8. 7 billion. Thatat a they getting pets. Com missed . Its the example of a failed and annette company. Internet cap he. Internet company. Amazon has critical mass. Its a kneejerk reaction where of a low equals safety and amazon equals binary thing online. Whos counting . Coming up, we will speak to pamela paul. This is important. It still works. A New York Times book review, i look at it every week. Its the one thing from the 70s that still make sense. What is your book of the year . Well be back. Are you kidding good morning, everyone. Bloomberg surveillance. Right. Ok. [laughter] the russian ruble is weaker this morning. Was . E you know what that else on a shelf, tom. The elses everywhere. Else is everywhere. Is everywhere. It is sending a list to michael bloomberg. You are going to like this one. Minister writes an oped in the wall street journal. Physical0, our consolidation has been accompanied by an increase in business in investment. I was over there and our member talking to him. He is due to speak at the new york economics club. He appears to be on a victory lap. I dont know if i would subscribe the same solution to a lot of economies. Austerity in the early stages of an economic recovery. Men the economy and then further down the road you with the austerity. That is what they did in britain and it worked. Rarelyid it here and we squeaked through. We did qe as well. It is a bad way to slow the economy down or hit the brakes as you are trying to accelerate out of a recession. The standard paul krugman how much pain to cause in the meantime . A lot of unnecessary pain by weakening the recovery. Distant wishing between the economies that it will work for and the kind it wont. Board, i think very recklessly. Quickly, california. California was in terrible shape and its doing better. All in all, its gotten itself out of the mess. Maryu tell i watched poppins this weekend. Thank god for social media. Does it feel like you live in an austerity freezone . Its lala land. At least you know it. Like every word is feted. A little bit. Im looking forward to it. He speaks tough. I am looking forward to it. Olivia sterns is going to get them off script area. Im so happy we are not talking about petsmart. That is my quote of the day. Come, we will talk about linkedin with guy kawasaki next. Is this the undervalued social Media Network . Applel ask the chief evangelist after the break. What is your book of the year . Tweet us. Make the best entertainment part of your holidays. Catch all the hottest handpicked titles on the winter watchlist, only with xfinity from comcast. Futures up big. Olivia sterns and Brendan Greeley with me. A hostage crisis unfolding in Sydney Australia at this hour. With ties to the Islamic State holding a group of people inside a chocolate cafe. As many as 15 others are still being held. Hong kongs prodemocracy protest appears to have ended for right now. Authorities have dismantled the last rating protest site. Than 10 holdouts who refused to leave were taken away. Demonstrations blocked hong kong roads for more than 11 weeks. Service inn the uber france. According to the ministry judgeman a paris rejected to do just that. It is a popular Smartphone App that allows users to get rides with private cars. This does not affect uber generally in paris this is about uberpop. Thank you for your great comments on social media guy kawasaki says shut up. That is his advice in what one should do with certain kinds of social media. Will linked in15 have. It will have a fabulous 2015 people are needing realizing they need to be someplace were they are serious and they are who they are and are aware of the consequences of what they are saying and the integration of slide share a big deal. What are the worst practices of twitter that linkedin can learn from. Such a wildecame west phenomena. Everybody is running and gunning and linkedin if you are thinking at all, youre thinking what are potential employers and potential customers thinking. Nobody thinks like that on any other social Media Network. For the sake of argument, i love my job. [laughter] hypothetically. I love my job why do i need to be unlinked in . On linkedin . Your job might not love you. [laughter] am i really going to endorse tom for mixing a martini top on my list. Or for being a friendly skipper there are a lot of things that dont make sense to me. Some of it does not make sense but a lot of it does for broad professional areas. Whats great about this and their dispense defense some of the things are ridiculous what is the benefit to corporations . Has it literally become a jobSearch Engine . It is a great job Search Engine for a company trying to find people but a great way to give references. If summary says these are a bunch of my references by definition that person is giving you someone who will say positive things but it you can find out i know other people who worked at apple and lets see what they say. The great challenge of social media has been, how do you keep people staying rational and good . Has a great 2015 how will it retain this sane, sober reputation. Fundamentally youre on linkedin for business reasons you are not there to show you are drunk and had a great party. That is a powerful tempering source. Maybe there are 10 people or with that can really talk any credence about the shift from steve jobs to tim cook. Tim cook just announce as men of the year and we had drama here on Bloomberg Businessweek where tim cook wrote an essay and our team your thoughts on this transition from mr. Jobs to mr. Cook . In a sense he has full that pulled it off the numbers and market share are great. The longerterm question is Product Development . Does your six plus get it done . I have to say there are parts of android that i prefer. While the stock is up 37 this year do you think apple can have a good 2015 . Every year i say no and every year i am wrong. s apple a luxury brand or technology . Luxury. Did you know that when you were there . Know it wasnt when i was there back then it was supposed to die. When did you see the shift . With the iphone the i whatever. It took out lets fight all those ibm clone computers and took it out of that into a brave new world called smartphones. You think it was a good idea to never let the price of the iphone be driven down . Yes in hindsight but i would never have predicted that. Within this is the idea of ecosystem how does guy kawasaki defined ecosystem . Anuntil two weeks ago i was Android Phone user then i found out they have one particular application that is very powerful for their platform and without it you cannot post efficiently and i need to post efficiently so i switched phones. I switched a couple hours after. What percentage of android are switching to apple now or in the next year . Very low. Very. The traffic is going the other way on to android. I think there is a growing if you are a believer that it is a luxury brand, you should stick with it. The irony with macintosh people defaulted to windows it was an unthinking decision. Now it is true about ios. Weve want home and another one here the computer has had a pretty good year, right . The argument is the phone is helping the computer as opposed to vice versa. Once you are locked into a system you stick around. Its entropy. Did you say entropy . I did. Thermodynamics on a monday. The second law . Thats right. Ok folks, nerd alert here in the next hour, robert engle will join us. On bloombergome surveillance. Were speaking with our guest host guy kawasaki, will twitter ever catch up to facebooks popularity. And we are talking about the elf on a shelf. Have one here onset looking as to whether or not tom is on his best behavior. Futures up 15 you think it is green on the screen forget about it. Russia is to seriously deteriorating this morning. Here is olivia stern. Facebooks crushing it, we are focusing on the social media. We know they are the most popular social Media Network, but as todays chart shows it is growing the fastest. Calledmes from a firm shareaholics. Role in traffic pales in comparison to facebook. The secondlargest source of social media traffic is pintr est. I tried it and left. It doesnt if you started one about your bowties you might get some. Guy kawasaki says you are not on interest as though he is shocked. He is the author of the art of social. Interest is the least amount time and you would be awesome there come. I tried it and no one was there. There is no there on Pinterest Pinterest is a quiet social network, you pin something and. Olivia that i of like best. This one is lovely. Thank you. Tom and i we talk about this a lot facebook losing relevancy we go on lefts and less. Less. Nd lists i will tell you one thing wrong with this chart it shows such a decline from twitter but many people use Something Like tweetdeck. If you are using an app to access twitter you do not get counted. Its not exactly the real world. I want to talk about facebook here in the newsfeed what will they do to dominate . There already dominating. They will pull the New York Times and every News Organization and dont they become the front page of the world . One of the dangers of facebook is theyve decided that fewer of their followers will see growth they want you to pay for that so does that kill the golden goose . That is a dangerous thing. Can they be as responsive in terms what we want and continue to dominate . It depends which facebook you talk about. It seems i could change the terms of Service Every week that is a tricky thing. That almost seems like a feature, not a book bug. I dont see how thats a feature but ok. Facebook him on board when i was in the middle of college along with it came lots of photos from acapulco i dont have a turn those off. Member sending my first email in a lonely computer lab yes facebook in college, continued. What is Brendan Greeley doing wrong hes a news anchor what are the best