presidents travel to johannesburg to pay respect to the memory of nelson mandela. late,r fedex package is you deserve a refund? this is "bloomberg surveillance ." i'm tom keene. joining me is scarlet fu and alix steel. let's get right to the morning breeze as the ceremonies continue in south africa. >> in china, industrial output rose less than estimated in november while retail sales unexpectedly accelerated. it paints a mixed picture of growth as leaders gather in beijing to set economic policies for the coming year. you're in the u.s., 7:30 a.m., nisb small business optimism and then wholesale inventories and we have earnings for going out. 7:00 a.m., toll brothers. after the bell, smith & wesson earnings. we are waiting for president of >> -- president obama to speak in johannesburg where he joins 90 other heads of state. >> ban ki-moon speaking right

now, secretary-general of the united nations. presidentsf four travel. not george bush, senior, but other living presidents with president obama. i thought the "new york times" article on travel, 16 hours on air force one, having them all on board, and they made it quite. >> it is at a soccer stadium. >> one of three public events. 90 thousandf people. >> it is not a holiday in south africa and train stations at the outskirts of johannesburg most people going to work as if it was a normal day. a lot of people showing up. we will bring the full comments of president obama in johannesburg when he speaks at the memorial service for nelson mandela. let's look at stocks, bonds, currencies, commodities. the mood continues. higher and higher. we wonder if we will hit dial --

the dow a20,000 by the end of the year. a quiet economic week. the euro moves this after -- against the sterling after governor mark carney spoke in new york yesterday. stronger euro. nymex crude churns. renting market moves. koran moving at the bottom. moving aten -- corn the bottom. a weaker yen. corn, weaker. how bad is it for farmers in america? >> we had the usda coming out with a global report today. if farmers are selling it -- >> they are according it, one of the two. corn is like bitcoin. we scoured the papers to bring you a front page. >> corn is for real. >> you can eat corn. >> corn is a currency. >> five years after the

financial crisis, regulators taking a landmark step to rein in wall street banks. five agencies signing off on the vocal role, the effort to ban prop trading. we know jpmorgan, goldman sachs, and the others have been contesting this. the lobbying seems to have paid off. it curbs some type of trading while largely freeing the ceo's of personal responsibility. >> it seems like the rule is relatively broad, provided traders are not paid like prop traders but how would you police that an enforced that the new will be responsible? >> the other thing for me as we begin 2014, is this is just the first step of many other changes, particularly the mystery of what dodd-frank will do to the same industry. >> as you mentioned, the enforcement, it will take years before they nail it down. >> and it does not address mortgage lending which you could argue was a huge trigger. >> the summary of this -- we are all moving to zürich. >> speaking of the 2000 and

crisis -- remember government motors? motors nornment longer. the treasury sold its last shears. -- its last shares. under the dash that underscores how well the u.s. auto industry has rebounded over the last few years. about 10.5ys it lost billion dollars on its investment of $49.5 billion. it is not like it got out that much ahead. >> 25% hit? >> they did take a hit. but the exit from gm paving the way for gm to get fresh investors. >> gm stock is done so well, outpacing the s&p. not just because it is getting the government off its back to doing well in terms of innovation. 18 new or refresh cars. >> a moment of silence for bill ford and alan mullally -- they never went bankrupt. llaly is highly in

demand. management changes at lululemon. the founder stepping down as chairman. michael casey will take over as chairman. and they have a new ceo finally. . new ceo was named a lot of management changes. remember, early this year there because some yoga pants were too sheer -- sheergate. the cofounder was on "street smart" said some women should not wear lululemon pants. wrinkly, some women's bodies don't work for it. the rubbing through the size. how much pressure is there. >> wow. >> can i -- >> downward dog in see-through pants is bad for everybody. >> make a banner. he is sleeping on the couch. >> he is no longer going to be

chairman. is,nd the point here lululemon is in trouble. they cut the annual profit forecast back in september. they sell high-priced items when the economy is not doing that well. a bigger issue. >> the competition -- sweaty betty from the u.k.. >> i never heard that. pants for four dollars at t.j. maxx. >> trish regan, ceo killer. she is vicious. >> behind that smile. >> we will take you on a field trip to sweaty betty. >> we will move back to the series events, in remembrance of nelson mandela. us from bloomberg television south africa. the pageantry of the memorial service is different from the funeral service. explain the distinction between the two services? ofessentially, millions

south africans wanted to attend some kind of service. this is why it was always known from a very long time ago that they would have a official state funeral and also a memorial service were many could attend. this is why it is happening in soweto, an important place. this is where nelson mandela was born. it is at a soccer stadium. 95,000 capacity. it is not filled to capacity some allies of visuals. right now, the african union chairwoman is addressing the crowd. fromhen we would hear president obama. >> when you look at the pageantry and yet it is a country with real challenges. it and reporting -- there is president clinton greeting members and president bush behind him sitting down. there is mrs. bush. when you look at the pageantry of the moment, how is south

africa greeting the world leaders? is it an intrusion or do they celebrate this international acclaim? >> they celebrate this international acclaim. a little earlier, i was watching closely what was happening on the ground. anc,eputy president of the african national congress, the ruling party, the crowd was interrupting in an amazing jubilation. they were so happy that so many people had come to south africa to not only revere your the man that they loved so much that the fact that a south african man has become an international icon. absolute joy. and also the fact that south africa was able to pull this off over the last four days. they put together a very important event, with a lot of security issues as well. teams like we overcome that -- have overcome that. note,important thing to this national memorial service comes 20 years to the day since kerk wasla and fw de

awarded the nobel peace prize. has de klerk book in yet? >> we know he will not be addressing the crowd. but we know who will be speaking -- president obama, we have , in china, the vice president will be addressing the crowd. i, cuba as well. and we talk about reconciliation. a lot of people from verizon walks of life and heads of state which we know already have some tensions brewing. i wonder if this is going to be a time where not only south africans unite but they also unite. >> if you so much. eleni from south africa. richard falkenrath -- rare to get four presidents together. the scope and scale speaks volumes. what does it mean for america? >> this is one of our most important allies now in africa. one of the most important countries. for the four presidents to do it

-- the last time they did it was the opening of the george w. bush library. but this symbolically is immensely important. and for president obama as the first black president of the united states, and so a symbol toward equality. it shows global progress in terms of race. ofwith your studies international relations, how bad was the screwup that ronald sanctions thethe first time around. later on he said he regretted the decision. >> with the benefit of hindsight, it is no doubt it was a screwup. he admitted that. as we look at, no doubt. at the same time, he was still a cold war president. he was a transitional president. in southern africa was at that time -- it was ending at that time -- still seen as part of a cold war competition with the soviet union. that explains a lot of the things that happen in american foreign policy which now in retrospect seem not to make very much sense.

>> the president is speaking in -- in south africa. we will bring it to you in a number of minutes. let's get to company news. >> sac capital strikes a deal with its reinsurers. it is selling the unit founded last year. it comes as it transitions to a family office following an insider trading settlement with the government. a group led by a former marsh and mclennan ceo is buying it. , theye structure at eads are slashing about four percent of its workforce. eads says it will lead to what it cause substantial desk calls substantial consolidation at a number of sites in europe. it comes in a drop that during a drop in government defense spending. will hire about 20 bankers in the u.s. as it tries to regain market share in mergers and acquisitions. part of an overall effort for nomura to be involved in japan related cost border deals.

that is today's company news. in waves.ways comes comes and goes. >> i totally agree. good morning to all of you worldwide. the president speaking in south africa in a number of minutes. also coming up, the volcker rule. it begins today after years of debate. the 900 page vocal rule goes into effect. the morning. this is "bloomberg surveillance ." ♪

>> good morning, everyone. bloomberg television. interestingle -- an review, 9:00 a.m., gary gensler, cftc chairman is with betty liu. that would be a perfect day to speak to gary gensler. i'm tom keene with scarlet fu and alix steel.

>> and five regulatory agencies will be acting today to finalize a vocal role. this is the centerpiece of the dodd-frank law designed to prevent a repeat of the two thousand eight crisis. the focal role is opposed to ban banks from proprietary trading tovolcker rule is opposed ban banks from proprietary trading but some say it does not go far enough. phil mattingly has details. i understand there are some weather issues that make it in the way. >> nothing that freaks washington, d c, out been a little bit of snow. five inches agile two, and agencies are shutting down. the federal government has shut down. the cftc already announced it will cancel its volcker rule vote. to havee only agency canceled. we expect to see the rule finalized today. the final votes with each agency, though, at least on the cftc side, postpone. eventually banking regulators as well.

look, we waited three and a half years. looks like we will have to wait another day. >> be a man. five inches is nothing. it over it. -- get over it. i'll hunt is at home by the fireplace, i am sure. when you look at this am a what will change for citigroup as well? thee actually got a look at draft rule last night. good bedtime reading. the key thing -- topline issues are how will regulators defined hedging and how will they defined market-making. it has been a mixed bag for wall street basing on our reading of the draft. on wall street, a little more flexibility to work with clients. on hedging -- if you are hedging -- jamie dimon this is on you. willing to tighten the language of what a hedge is and how the companies will prove a hedge and how it correlates with a risk. almost entirely because of the london whale.

there are a couple of regulators who seized on the london whale issue and went back to regulators who wanted to loosen the language and said absolutely not, and they got what they wanted in the final language. on market-making, wall street hasn't to be happy about that on hedging i think there will be concern when they look at the final proposal. lobbyists will be all a buzz and the courts will be. talk about the changes last month to the senate so -- filibustering rule and how it may impact the legal challenges to come. to watch interesting how lawmakers react to this in general. you will have a bunch of people who will be nominated and can move through because of the nuclear option. the key thing -- and this is what we look at yesterday looking at how lawmakers react -- there is a chance that it is rule came out riddled with loopholes or if lawmakers, particularly anti-wall street lawmakers, but this went too far favoritebbyists's there may be backlash against

wall street. steagallronger, glass- 2.0 may get momentum behind it. something to also keep an eye on. >> i would suggest most people are really not galvanized by banking minutia but we are galvanized by the budget debate. how does the budget debate change given this vast blizzard hitting washington? let's what we are -- >> what we are waiting on is the supposed agreement we think is close between the senate democrats and the house republicans. if it is going to be announced, it will be tonight. the senate is still in session. most of these guys live really close. only key personnel will be here today. we expect the house will be in, too. republican side and patty murray on the democrat side, they are both in town. we do expect some meetings or shuttling back and forth proposals. if the house once the vote on this before they leave town on the holidays friday, they need to see legislative language

today. >> phil mattingly, thank you so much. my advice is, get the budget out and then get a second snowplow for washington, d.c. it is amazing what you can do with two instead of one dump truck. >> every time before he dropped. >> we came in to work during hurricane sandy. >> something about -- >> forget the redskins, how will ruleocal rule -- volcker change washington after they actually vote on it? tweet us @bsurveillance. this is "bloomberg surveillance" streaming on your tablet, your phone, and bloomberg.com. ♪

"bloomberg surveillance."

>>." "bloomberg surveillance." memorial service for nelson mandela. four president the 10. attending.sidents george bush, senior, not. the president will speak shortly in johannesburg. this is the memorial service, not the funeral service, for nelson mandela. worldwide, this is "bloomberg surveillance." we have a morning must-read. >> it plays off of his picture on the coverage of "the wall street journal "bloomberg surveillance." before and after of kim jong u n from north korea and his uncle who has been photoshop out of outpicture -- photoshopped of the picture. we will find more from richard falkenrath. i have an essay from robert manning, a fellow at the rent escrow croft center. anwrites that it seems like

overgrown spoiled child -- the fact that kim jong un, purged his uncle, one of the adults in the room signals perhaps more tensions ahead. >> who brings the most forced to bear, richard falcon raft? in north asia -- the asia five, kazakhstan and china, it seems like a game of risk. the most forced to bear on this leadership in north korea? >> china, no question. china is almost the only country with influence over what happens in pyongyang. >> there is a rift. explain the fear china has? >> china does not when a failed state on the southern border. the river is the physical berry. there are a couple of bridges. it is a lot of illicit trading. a lot of the foreign goods going into north korea, cross the

river. the refugees who escaped the gulags, cross by swimming across the river. they also don't want an extension of south korea up to the river. >> and the chinese province that borders the river are mainly filled by korean nationals -- not nationals the ethnic koreans. this purge of the uncle, that was china's key to north korea, wasn't it? >> there were reports of that. he was the sponsor of one of the special economic districts right on the river where they were trying to build a bridge and encourage economic actually -- activity. but we have to be very cautious about interpreting what is happening inside the north korean government. it is mysterious. squabble,e a family much less some grand politics. >> i want to give credit to "the boston globe," the satellite image of north korea, black and dark haired and economic gains? or not only lost decade the loss generations? periodically still

require food aid when there is a famine or a bad harvest. it lives on international support and its main export is bad behavior. --hreatening international by threatening international stability it will get aid. >> we got the ukraine to talk about as well but north korea front and center. >> and disruption in the shipment at the number -- $2 billion, total value of unclaimed fedex and ups refunds each year from the money back guarantee policy. ♪

>> good morning, everyone. "bloomberg surveillance." memorial service for nelson mandela. not only speeches by world leaders including ban ki-moon

speaking from the united nations. we expect president obama to speak very shortly. some of the celebration -- this gentleman really greeted in a boisterous fashion by the south african crowd. i'm tom keene. with miele -- with me is alix steel and scarlet fu. a unique calculus on how you do things in south africa. >> not just a memorial with a lot of dignity and sadness but as well.ality singing and dancing. all morning long. the president will be speaking shortly, addressing the crowds. and we will take you there when it happens. >> the images earlier with president clinton, former , sitting of state alongside laura bush and mr. bush. as charles i believe is not at the service but just as charles, i believe, is not at the service

but will attend the funeral service. .> and 90 other heads of state stadium.t a soccer a huge outpouring. estimates were for 90,000 people. >> you remember the world cup. the moorings. the horns from the world cup that we used to pretend we would blow and all of that. but this is where nelson mandela was last seen publicly. in 2010 during the world cup soccer tournament. his health has been fragile since then. >> a rainy day. here is the audience in south africa. much.nk you so thank you.

mandela family, president zuma, members of the government, heads of state and government past and present, distinguished guests, it is a singular honor to be with you today to celebrate a life like no other. to the people of south africa -- applause]d and everyevery race walk of life, the world thanks you for sharing nelson mandela with us. his struggle was your struggle. triumph.ph was your

your dignity and your hope found expression in his life, and your freedom, your democracy, is his cherished legacy. is hard to eulogize any man, words not just the facts and the dates that make a life but the essential iruths of a person, the private joys and sorrows, the quiet moments and unique qualities that illuminate someone's soul. how much harder to do so for a giant in history, who moved a nation towards justice and in the process moved billions around the world?

far during world war i, from the corridors of power, a boy raised hurting cattle and tutored by the elders of his tribe. would emerge as the last great liberator of the 20th century. like gandhi, he would lead a resistance movement, a movement that at its heart had little prospect for success. givedr. king, he would voice to the claims of the and the moral necessity of racial justice. he would endure a brutal imprisonment that began in the time of kennedy and khrushchev and reached the final days of the cold war. prison without the force of arms he would, like

abraham lincoln, hold his country together when it threatened to break apart. and like america's founding fathers, he would erect a constitutional order to preserve freedom for future generations. a commitment to democracy and rule of law, ratified not only by his election but his willingness to step down from power after only one term. [cheers] ep of his life, the scope of his accomplishment, the adoration he so rightly earned, it is tempting, i think, to remember nelson mandela as an icon, smiling and serene, detached from the tawdry affairs. himself strongly

resisted such a lifeless portrait. and applause] a insisted onb sharing with us his doubts and his fears, his miscalculations along with his victories. i am not a saint, he said, unless you think of a saint as a center who keeps on trying. who keeps on trying. it was precisely because he could admit his imperfections, because he could be so full of good humor, even mischief, despite the heavy burdens that he carried him a that we loved him so -- he carried, that he loved him so. he was a man of flesh and blood. a son and a husband.

a father and a friend. we learned so much from him and that is why we can learn from him still. for nothing he achieved was inevitable. arc of his life, we see a man who earned his place in history three struggle and shrewdness and persistence and faith. us what is possible, not just in the pages of history books but in our own lives as well. mandela showed us the power of action, of taking risk on behalf of our ideals. perhaps mandela was right that he inherited a proud rebelliousness, a stubborn sense of fairness, from his father. and we know he shared with millions of black and colored ofth africans the anger born

a thousand stripes, a thousand indignities and 1000 unremembered moments. a desire to fight the system that imprison my people, he said. but like other early giants of -- a and c -- anc [cheers] d is a discipline anger and channeled it into platforms and strategies of action so men and women can stand up for their god-given dignity. he expected the consequences of his actions, knowing that standing up against powerful interests and injustice --

against white domination and i have fought against black domination. i cherished the ideal of a democratic and free society in which all persons live together in harmony and equal opportunity . it is an ideal which i hope to live for and to achieve. but if needs be, it is an ideal for which i am prepared to die." [cheers and applause] mandela taught us the power of action, but he also taught us the power of ideas. the importance of reason and argument. the need to study not only those who you agree with but also those you don't agree with. he understood ideas cannot be contained by prison walls, extinguished by a sniper's

bullet. he turned his trial into an indictment of apartheid because of his eloquence and passion but also because of his training as an advocate. toused decades of prison sharpen his arguments, but also to read his thirst for knowledge to others in the movement. and he learned the language and the customs of his oppressors so that one day he might better conveyed to them how their own freedom depends upon his. ]cheers action demonstrated that .hat ideas are not enough no matter how right, they must also be chiseled in the law and institutions. he was practical. testing his belief against the hard surface of circumstance and history. on core principles, he was

unyielding, which is why he could rebuff offers of unconditional release, reminding the apartheid regime that prisoners cannot enter into contracts. but as he showed in painstaking e transfer ofth power and drafting new laws, he was not afraid to compromise for the sake of a larger goal. and because he was not only the leader of a movement but a skillful politician, the constitution that emerged was worthy of his multiracial democracy. true to it vision of laws that protect my jar -- minority as well as majority rights and the precious freedom of every south african. understood, mandela the ties that bind the human spirit. africas a word in south

--aware that captures mandela's greatest gift. his recognition that we are all bound together in ways that are invisible to the eye. that there is a oneness of humanity. that we achieve ourselves by sharing ourselves with others and caring for those around us. can never know how much of this sense was it made him or how much was shaped in a dark and solitary cell. but we remember the gestures him gestures,d small -- large and small, introducing his jailers to our honored guest -- as honored guests at his

inauguration, turning his family's heart break into a call to confront hiv-aids that ofealed the death -- depths his empathy and understanding. he not only embodied it, but he taught millions to find that truth within themselves. totook a man like madiba free not only the prisoner but the jailer as well. to show that you must trust others so that they may trust you. to teach that reconciliation is not a matter of ignoring a cool pass but a means of confronting cruelh inclusion c -- past but a means of confronting it with inclusion and truth. he changed the laws but he also changed hearts. africa,people of south for those he inspired around the

iba's passing is largely a time of mourning and a time to celebrate a heroic life. but i believe it should also prompt in each of us a chance for self reflection. with honesty, regardless of our station or circumstance, we must ask how well have i applied his .essons in my own life it is a question i asked myself as a man asnd as a president. ke south africa, the united states had to overcome centuries of rachel -- racial subjugation. as was true here, it took sacrifice. sacrifice of countless people, known and unknown, to see the dawn of a new day.

michelle and i are beneficiaries of that struggle. [cheers] but in america and in south africa and in countries all around the globe, we cannot allow our progress to cloud the fact that our work is not yet done. the struggles that followed the quality and universal franchise may not be as filled with drama and moral clarity as those that came before, but they are no less important. rld today, wee wo still see children suffering from hunger and disease. we still see rundown schools. we still see young people without prospects for the future. around the world today, men and women are still imprisoned for their political beliefs and are still persecuted for what they look like and how they worship

and who they love, that is happening today. cheers] so, we, too, must act on behalf of justice. must act on behalf of peace. there are too many people who legacy embrace madiba's of racial reconciliation but passively resists even modest reforms that would challenge chronic poverty and growing inequality. there are too many leaders who slaim solidarity with madiba' trouble for freedom but does not tolerate dissent from their own people. [cheers] and there are too many of us, sidelines, us on the

comfortable with complacency or cynicism when our voices must be heard. today --ions we face how to promote equality and justice, how to uphold freedom and human rights, how to end conflicts and sectarian war -- these things do not have easy answers. but there were no easy answers in front of that child born in world war i. nelson mandela reminds us that it always seems impossible until it is done. south africa shows that is true. south africa shows we can change. that we can choose a world defined not by our differences but by our common hope. we can choose a world defined not by conflict but by peace and justice and opportunity.

we will never see the likes of nelson mandela again. but let me say to the young young of africa, and the people around the world -- you, workcan make his life's your own. over 30 years ago, while still a student, i learned of nelson mandela and the struggles taking place in this beautiful land. in me. stirred something t it will me up to my responsibilities to others and myself and it set me on an improbable journey that finds me here today. and while i will always fall example, heiba's

makes me want to be a better man. he speaks to what is best inside us. this great liberator is laid to rest, and when we have returned to our cities and oined our dailyj routine, let us search for his strength. let us search for his largeness of spirit somewhere inside of ourselves. dark,en the night grows and when in justice weighs heavy on our heart, when our best laid plans seem beyond our reach, let wordsnk of madiba and the that brought him comfort within the four walls of his cell. it matters not how strait the gate, how charged the

punishment, the scroll, i am the master of my fate, i am the captain of my soul. soul it was.icent we will miss him deeply. may god bless the memory of nelson mandela, may god bless the people of south africa. [cheers] >> the 44th president of the united states speaking in johannesburg in front of three other american presidents -- clinton, bush, and jimmy carter. and i think the moment of seeing our first black president and then seen james earl carter, the battle, the discussion and debate over what to do with the south africa, in johannesburg. the memorial service for nelson mandela. good morning to all of you worldwide.

scarlet fu, alix steel. i am tom keene as we look at the ceremony. it continues, 2:00 p.m. in the afternoon in johannesburg. richard falcon raft with us with his international perspective -- richard falcokenrath. goodesident obama is very at this. he is very good at capturing the moment and speaking real universal truths. the problem that he has, if anything, is following through on the soaring rhetoric and the great ideas with concrete actions. he mentioned jimmy carter and also there is george bush, who i think was less articulate and less able to capture the moment but for africa, did far more than any president in history. even his political opponents agree with it, a big part of his legacy. but this is president obama's moment. excellent at capturing these things and speaking to the world population. >> we will be following this on bloomberg television all morning. stay with us. >> we will change topics and return to businesses.

it is inside the ups day. if you run a business that ships regularly, aznar fedex and ups ou money. they have a moneyback guarantee if packages do not arrive on time. now a start up called 71 pounds is looking to cash in. a track packages and collects refunds for small businesses. he weighs in at more than 71 pounds, but he and his company, they are disruptive. call them fed ex's worst nightmare. he served time at fedex. atis the chief refunder 71 pounds. a great idea -- if my packages like, i get money back? that simple? >> yes it is, tom. fedex and ups both have guarantees on their shipments. overnight or ground shipment is late, even by one minute, you are supposed to get 100% of your money back. companies, most businesses,

don't claim these refunds. what happens is $2 billion are actually left on the table every year. pounds is wet 71 automated the process and we try to make it very simple and convenient for smaller and medium-sized companies to take advantage of this. >> barlett had a fedex package i think three days ago for your 40 foot christmas tree -- scarlet fu had a fedex package. i think he came late. can she get a refund back? >> typically the guarantee goes back to the shipper. if she shipped it on her account, yes, she should be able to get the refund. my own business. scarlet fu, llc. to fedex or ups eu as an enemy, an irritant, or could one day they see you as an ally? >> we are trying to help small businesses take advantage of this. this is something both fedex and ups have on their guarantees. and the reality is, you pay a lot of money shipping your

packages by fedex or ups and we are just honoring that guarantee for customers and consumers. >> what happens if a fedex and ups do away with the refunds for late the liveries, especially as online transactions become more important? great point. guarantees a been around for over 10 years and it is something both fedex and ups have grown and expanded over time. with e-commerce growing, today e-commerce come a 10% of an e- commerce sale today is shipping cost. an interesting line item for them. the sides payroll and besides cost of goods sold, shipping is probably the third line item for e-commerce companies. >> in terms of disrupting the hiddenwhat other surcharges to companies like fedex and ups charge that you as a disruptor can tackle next? >> you bring up a good point. we are looking at, for example, invoice audits.

we heard from a lot of customers that understanding. shipping costs is one of the biggest pain points. we are trying to make that process very simple for our customers. we are looking at additional surcharges, residential fees, packages that are lost or damaged. these aren't different -- these are different refunds customers should be able to get back. >> doesn't mean we have seen the peak of cost efficiencies at big companies and you can only get the cost reductions are a small company level? >> i found that 71 pounds with of helping democratize shipping and logistics for the small-business owner. our team has seen a lot of the efficiencies, the tools. hundreds of people in shipping apartments for fortune 500 companies. on the flip side, we have seen small business owners do not have the time, resources, they do not have the knowledge to do a lot of these efficient processes.

so, at 71 pounds we are trying to build the tools and services to business owners can take advantage of the savings and optimization over time. >> josé li, thank you so much. founder of 71 pounds. >> carol massar looks so good in brown. just unreal. >> are you teasing? >> louisville, kentucky. carol massar is there at the ups factory. we will have that for you the next hour. she drove a truck. --she had the whole output outfit on. she made money that day. time,ck on the door next carol, for a couple coffee. forex. a lot going on. december is upon us. sterling -- mark carney with comments at the economic club of new york yesterday. mark carney on charlie rose did look for the interview. he said some smart means, controversial things, to mr. rose. 443, pounds sterling. include arrange of the brain.

england reigns supreme. >> up next, discussing the volcker rule. ♪

>> this is "bloomberg surveillance." ofin the seventh year

financial crisis, washington says wall street must live by the volcker rule. the customer comes first. former presidents travel to johannesburg to pay respect to the memory of nelson mandela. in atlanta, they say enough. taxpayers could be on the hook themillions and billions if atlanta braves play in a new palace. good morning, everyone. it is "bloomberg surveillance." we are live from our world headquarters in new york. tuesday, december 10. i'm top -- i'm tom keene. joining me are scarlet fu and alix steel. guest host -- they stole the name house of cards from him, william cohan, contributing editor and bloomberg view columnist. >> a busy day all over the world. we will start in china. lesstrial output rising than estimated in november while retail sales unexpectedly accelerated. a mixed picture of growth as leaders gather in beijing to set economic policy for the coming year. economic data here in the u.s.

-- 7:30 a.m., small business optimism and 10:00 a.m. come up wholesale inventories. hg supply cut its revenue outlook -- outlook and toll brothers, you have been looking at the numbers. >> revenue topped $1 billion while the consensus was that this is the biggest homebuilder. i found it interesting that they said the average price of homes will be 670,000 to -- >> in the supply of luxury homes not meeting current demand. that's a plus-plus report? >> it seems a little muddy. >> i want to rip up the script and interject. for those on bloomberg radio. there is a banner on bloomberg television that will turn me great. ottawa offices to close on 1-4 inches of snowfall -- federal offices to close. what have we become in america? >> and it hasn't happened yet. it hasn't even started snowing

it. we came to work during hurricane sandy and they cannot come to work with a little bit of snow. is0 p.m., smith & wesson coming up. and president obama has just finished beating in south africa at the memorial service for nelson mandela where he joined 90 other heads of state. click select to company news this morning. >> government motors no more. the government has sold the last of it they can general motors five years after it gave its first round of eight. it lost about $10.5 billion on its bailout. sac capital striking a deal for its reinsurers. it is selling the reinsurance unit it found that last year. it comes as it transitions following in insider trading settlement. a group led by former marsh and look in and ceo is buying it -- mcclalnnan. new ceo. naming a

also announcing the company's founder and chairman is stepping down. remember, last month he told trish regan right here on bloomberg television that some women cannot wear lululemon pants. >> we make jokes about it but this is a very serious issue. they had the flap and all the sheerness -- >> and he did not help matters by saying that. >> is with a glory stock, a year and a half it was a moonshot. >> they cut the full revenue outlook. and it is not just because of the pr mishap saying it was the women's problems -- it is an issue in the industry. >> i wonder where elon musk will be a year from now. what if you talk to trish regan -- >> trouble, absolutely. youeo killer, i think what call her. >> we will move to the volcker rule because regulators are looking at details to finalize the volcker rule, the centerpiece of dodd-frank,

designed to prevent a repeat of the 2008 crisis. it would ban banks from proprietary trading. what will this mean for wall street? chief washington correspondent peter cook joins us with the details. you managed to, to worry even though there is supposed to be 1-4 inches of snowfall. little slicking a out here. it just started coming down a little more heavily in the washington area. ,t means for the volcker rule more than a year past due, we will have to wait at least one more day for regulators to finalize the volcker rule because the government is close. the cftc meeting is not going to happen today. there are five federal regulators who all had to weigh in today. willt appears likely they not because of the closure of the federal government. it just means one more day of waiting for wall street. >> the thing with the volcker rule is the rules got tougher as it got closer to the vote. it was unexpected. does that mean the lobbying

groups did not get the job done? >> there has been a ton of lobbying and they have been lobbying every single aspect to it but it is fair to say at the end of the day the rule will be tougher than many expected. especially when it comes to the issue of hedging. for example, no more london whales. the events surrounding jpmorgan had a big impact on what the final language looks like. you have to specifically be targeting a specific risk here as you hedge. you can't just do a broad swath of portfolio hedging. but there is more latitude when it comes to market making. regulators have tried to at least allow the wall street angst to be able to buy and sell securities -- wall street banks to be able to buy and sell securities and stocks to customers without being too restrictive. it is an important tweak. $44 billion last it came from principal trading at the top five items in the u.s.. they were very nervous about

what the language would look like. as they implement the rules is where the rubber will meet the role. these are the paper. it all depends on how they enforce them. >> we are thrilled to bring you this day of the volcker rule -- snow, rain, sleet, whatever. , bloomberg contributing editor. it barely describes his expertise. including his wonderful book on bear stearns "house of cards." chapter seven. total panic. is the total panic on wall street today? >> no. >> is this a non-deal or germane? >> this is relevant because a lot of the banks make an awful lot of money from their black boxes and proprietary trading and hedging and they disguise it. but i have to say, this one really makes me insane. frankly, this is an overreaction. they are trying to fix something that was not broken. i had been against the volcker rule from the beginning. i have unbelievable respect for paul volcker, especially what he did as fed chairman, he is such

a statement -- statesman, but he lost the plot. >> do you think whatever they will are doing will move off the balance sheet, they will still do it but outside the bank? >> number one, they will figure out a way to get around that because there is too much money to be made. but the problem was with non- proprietary trading. this was not about proprietary trading. the fact of the matter, goldman sachs saved itself by flipping -- putting on a $4 billion proprietary trade. forget the hedge part. it was a proprietary trade against the mortgage market in december of 2006, they made $4 billion on the one trade alone, made $17 billion pretax profit in 2007 when everyone else was going down the truth -- two. tube.going down the >> houston we amended? >> take it, move into the wastebasket and drop it in. >> you hear him say throw within the trash but we will obviously not see it happen.

but what kind of legal battles can we expect, wrote? >> -- can we expect down the road? >> it will be challenged in court. scalia, his efforts on behalf of the chamber of commerce. he is 5-1 last check. this is a rule you know will be challenged. but only want to get implemented. i can't stress how important it is. once the roll is on the books what matters to wall street is how aggressively these five regulators actually implement it and if they dial it back because of some of the concerns bill -- and there out are regulators who don't like what will that much -- maybe we will not signify a lot expect here -- expect. >> something what really matters is the pay and compensation structure. paul volcker said his goal was to change the culture of wall street. in the volcker rule this time around it does tie compensation to risky trading. that doesn't go far enough? compensation and incentives

are completely different from what you are allowed to do every day. this volcker rule, the dodd- frank law, none of that changes the way people on wall street are compensated and what they are rewarded to do. which is to take big risks with other people's -- >> it incentivizes risky trading, that was the goal. >> fine. once again, scarlet, the problem over the years with a wall street has not been proprietary ording or private equity investing in other people's hedge funds. the problem has been creating products that they think will make the world a better and then selling the heck out of them until problems occur. carney from a bank if we get the bad outcome you think we get, is it nothing more than a trading and derivatives migration of jobs over to london or over to zürich and for that matter, over to tokyo? >> they're very well could be some of that. that has been a long-standing argument that if we put in

things -- >> set up a trading desk in london. >> these are global institutions. probably there will be some of that. there will be other effects, too . >> bill cohan the fired up. peter cook, chief washington correspondent. twitter question -- how will the volcker rule change wall street? you heard bill's opinion. we want to hear yours. suite us that @bsurveillance. we are streaming on your tablet, phone, and bloomberg.com. >> your favorite sports team getting a shiny new stadium? the impact on the taxpayer. coming up. ♪

>> this is "bloomberg surveillance." i'm scarlet fu here with tom keene and alix steel. edward snowden out with new report. according to documents released, spy agencies are zeroing in on a budding terrorist haven. >> this time, virtual. targeting video games. they reportedly infiltrated online gaming world to track down terrorists and recruit informants. intelligence agencies if you're these fantasy worlds are hotbeds for terrorist activities. was deputykenrath

commissioner of counterterrorism at the new york police department. is this where terrorists are going to breed? >> there is no evidence at all in the public domain. this is done, to the extent we know, on a theoretical basis that it could be happening but none of the reports of that lead to show any specific evidence and in all of my experience i have not seen any, either. >> what does it look like? " fromooking at "homeland the comfort of my own home -- home? governmentbe where a agency create an avatar and interact with other people to find things out. that goes on. there is no question. the second is the communication system inherent in the multiplayer game. multiplayer games are also proprietary communications systems that are not subject to normal forms of wiretapping or electronic surveillance, so it is possible for two people to

communicate via multiplayer game across international borders or domestic borders and thus evade ordinary forms of electronic surveillance. >> this kind of sounds like it is on a hunch. has surveillance becomes so affordable and cheap that you can infiltrate first and ask the hard questions and whether it is valuable after the fact? >> i not think so. this is something of a luxury for the intelligence community to pursue this based on hunches. remember, in those days -- and the reports that were released 2008 am a there was a lot of money going into intelligence. we are still in the post-9/11 fiscal expansion. the intelligence community have the discretion to pursue things based on theories. from have seen backlash tech companies like apple and google protesting massive government surveillance. will we start seeing it in the gaming community? >> it is a much smaller community, less active, they have less to lose. they will probably be annoyed but also probably be amused.

think it is sort of a badge of honor that the intelligence communities are actually trying to get into that. i don't see a big act lash out of that particularly community. the ground, however, is shifting on the terms of engagement for surveillance of internet-based communication. >> that will be our new show name, terms of engagement for surveillance. richard falkenrath joining us. will the bitcoin bubble burst? we will take a look. ♪

>> good morning, everyone. "bloomberg surveillance." in johannesburg we have been looking all morning at the images of the memorial service for nelson mandela. it continues in johannesburg in the rain in the afternoon, about 2:00 p.m. there. us, andfalkenrath with a remarkable photo out this morning. i want to give credit to reuters . the president shaking hands with -- raul zero raul

castro. it really goes full circle of the drama of nelson mandela's 19 50s and 60s -- knowledge, the first time a u.s. president has connected to a cuban president since i think eisenhower. i may be wrong. to your point -- one of the reasons of the united states supported the apartheid government which had imprisoned nelson mandela was because i'm a soviet sponsored cuban -- because of a soviet sponsored cuban invasion of angola, and because of that invasion, you've been troops in angola, that we justified continued diplomatic and economic ties adam official level with apartheid south africa. cuba and the challenge we have moving forward, i believe the clock is ticking, as we saw with nelson mandela, 95 years old, jimmy carter, 89 years old. arecash throws -- castros

ancient. what do you think? >> any tooth -- sort out -- they need to sort out internally. the last thing is to take them over. they will die fairly soon and there will be some transition. the conditions under which we would be established relations are not exactly clear and would have to be sorted out. that would be the steps for the u.s. government when it happens. >> richard falkenrath, thank you for your perspective. rock obama shaking hands with raul castro. is 100 years old and it cost many millions to restore and modernize. the other option is to build a brand-new stadium, $450 million cost to taxpayers. our next guest is a partner at innovative sports entertainment and he watches the new york rangers win the stanley cup as president of madison square

garden. >> will not see it this year. >> let's not go there. as you look at the new stadiums being built, much on the public time, who is demanding the creation of these new arenas? team owner. obviously in certain markets the only way to get a new facility is to get a mixture of the team owner, public and private. we had facilities built in new york in the past five years where there was no public money involved -- >> that it does cause the public. >> it does. certainly in atlanta. atlanta is putting up about half the money on a public basis. the public is going to have to repay the debt, the principal, there will be incremental taxes, incremental taxes on my jean, rental cars. the question is whether the public will eventually repay the money. >> what is the new now? ?> as far as facilities >> or the pushback.

>> acting strong pushback. -- i think strong pushback. dan francisco has a new facility, the public is involved and it seems to be working well there. a lot depends on whether you can get mixed use development around the facility. alternately bringing new money into the county or municipality. that alone will depend on whether or not it was successful. >> i believe there is a football game in january and february in three feet of snow in new jersey? >> i'm not to mention the ice hockey game in new jersey as well. the facility -- paid for by taxpayers >> the owners were on the hook. but they sold licensing to the public. in some ways the public is paying for the stadium because they have to buy the right to buy the tickets. >> we talked about how fenway park is 100 years old. the vikings are getting a new stadium. the marlins are getting a new

stadium. the colts are getting a new stadium. why do these new stadiums have a short life span? >> incremental revenue streams. you are also -- always looking for more money to come into the building, and to do that you need better food and beverage, you need and facilities, you need me to elegy. you have to make the fan come again, want to be able to come in and not sit on their couch on a sunday afternoon. it really is incremental kind of opportunities to bring in more money. >> while we have with your fabulous perspective thomas scarlet mentioned you work with lundquist for a while -- >> the new york rangers. >> he was 11 years old, i think. [laughter] perspective on sports, do you see the gravy train continuing? the profits, or do you have a doubt that will continue? >> i think it will always continue and that is because of

the proprietary aspect with sports and the dollars associated. the demand will be there pretty stronger in some markets than others. new york is obviously bigger. l.a., look at the last year or so. i do see it continue as long as television is involved. >> does espn still remain dominant? >> it does. i think it is being encroached upon a little bit by fox and nbc and cbs. of everyso far ahead body, i think they will continue to be -- >> i have a real important question. i have gone to fenway park several times. i would never admit it to tom publicly, but i have. there not a women's bathroom -- why aren't there enough women's bathrooms? >> 100 years old -- >> even in the new stadiums. there is always a line. at now?here an app for th >> i think it is poor research. more and more women are coming to sports facilities. an important dynamic.

oldest child's diaper with roger clemens' wife. >> i have to see a picture. the former president of madison square garden joining us. we will be back. ♪

>> this is "bloomberg surveillance." i am scarlet fu with tom keene and alix steel. let's get you some company news now. sac capital strikes a deal for its reassurance. the reinsurance

unit they founded last year. this comes as they transition to a failing office. group is buying sac. restructuring over at ea ds. the defense contractor is slashing jobs. this lead will move to what it calls substantial consolidation at a number of sites in europe. the company is hit by a drop in government dispense -- defense spending. will hire about 20 bankers in the u.s. as it tries to regain market share. of anhirings are part effort to be involved in japan cross-border deals. you wonder if abenomics is helping drive this push. single best chart is one of our most popular segments. they have one of the best charts

i have ever seen. request byby special a surveillance follower on twitter. it compared bitcoin with another bubble in the past. there it is from july to december. at that point, it had gone up about 6000% in about five mins. -- five months. what about dutch tulip? what happened after that? slightly higher over the next month or so. then, they crashed. >> i wonder what happen if you put gold on that chart. just to see the big runoff. >> that is all you think about his gold and commodities. >> i think about oil also. guardian,ng to the the former president of the dutch central bank told students

at the university of amsterdam that the hype around bitcoin is worst. he is in the second day of his 12 days of that coin. withs trying to get dinner jennifer lawrence. what have you learned in the last 24 hours? >> a heck of a lot. fun and i have delved in to the bitcoin community. i am sure that none of them would agree with comparing tulips to bitcoins. i do not see how the two have much to do with each other. a lot of what i have learned is there are two separate communities. one is people who want to use it as an investment vehicle or see it as an asset. there is a social movement around it.

the kind of computer fanatic that you might expect to get involved in it, almost like the grateful dead community. >> i will go with that. the "bloomberg surveillance community. it is all the same. do you feel like you are touching on the underworld or illicit criminal activity? >> not at all. the people i spoke to said they do not use it for that sort of thing. they are not looking to hide as much as you thought. it isteresting thing is such a useful tool for microtrends actions, buying things for a dollar or three dollars. it is also used for people that to --.king tulips would not be good for people looking to transfer

across orders. this would be a good way to do that almost instantly. >> i like that there are 12 days here. what do you help to a, sure next 10 days? >> i am going to live on only bitcoin for the next 10 days. i'm going to get a gift card that will allow me to go to retailers and pay with bitcoins. or ordering gas cards because it is hard to buy gas, but you can order the cards through the post and you can pay for gas with the cards. i am doing that kind of stuff and i am looking forward to dinner with jennifer lawrence lawrence. i am planning that over the next 12 days. thank you for your many e- mails, your tweets to us on this huge controversy over the coin. -- over bitcoin. let's switch from bitcoin to

actual currency. the euro is at a six week high versus the dollar. key economic data out of italy, industrial production expanding. 1.3747 is the latest trade. >> "bloomberg surveillance." at the new bloomberg.com. look for the video on the right- hand column. very cool. all of our interviews on bloombergtv plus and radio plus. i am tom keene. scarlet fu and alix steel with me today. >> bloomberg is inside ups all day long today. it is the busiest time of year for the biggest package delivery companies, so we sent carol massar there. is in louisville, kentucky

where ups will sort 4 million packages a day. you are standing there in the middle of night. you got to ride in a ups truck. is that right? >> i did. i went out with tony, who delivers to downtown manhattan. they are so busy at this time of year. -- extra workers to get them through the holiday season. there's a certain way you unload the truck, a certain way you load up the cards and a certain way you deliver to everyone. it is about being safe, efficiency, and time. it is fun to be out there on the road with them. >> did you get to ring any doorbells? >> i did. i went into a couple of buildings. most of it was commercial. it was interesting. you have a bunch of packages going through a certain location. i got to play with the scanner.

i scanned in some of the packages and had them delivered. it is interesting. everything they do is about saving time. the same thing here at world port. it is all about saving time. this is a huge facility. it is a little bit quiet because most of what happens here happens overnight. it will get busier in a couple of hours. about 1.6 million. -- about 1.6 million packages get out of here today. ticketyou get a parking on your ups truck from the mayord and eight -- 108th of new york. i did not. >> michael bloomberg is the

mayor of new york and the owner of bloomberg lp. you hear anything about rounds when you saw amazon ofcussing the possibility moving packages with drones? bezos talked jeff ups' it, here is what chief officer said. were out there in the vacant lot next to it, using a drug to demonstrate package delivery. it is not that we are looking at it for a practical aspect, it was an exercise to stretch the envelope, to think out of the box. we do not see it in the near term at all. >> in the longer term? >> hard to say what will happen in the longer term. idea, that method of

delivery, the method of interaction with our customers, we see that clearly. >> drones may not be in the cards, but ups, we think about them as a package company and they deliver about 60 million packages every day. they spend a lot on technology as well. they are always looking for new systems. have a look at drones, yes. not necessarily anytime in the near future. us from massar joining world port. that is the ups hub in louisville. she will be reporting from louisville all day long. i think it is great that she got to wear brown -- >> i would love to go on a ups truck for one day just to see -- >> we should go now. >> i don't think you would make it, to be honest.

>> unfortunately, i think you are right. when is the lunch break? can we go to the four seasons for lunch? willloomberg surveillance" be right back. stay with us. ♪

>> gold is up $15. joining us right now, betty liu. do, betty liu? >> ron johnson is going to be joining us. he is in studio. he is the senator from

wisconsin. he is visiting us in new york. he is one of those who have said we need to repeal obamacare. he made an about-face and conceded defeat yesterday. we can't, he said. it is a huge deal. let's talk about transition is what his new comment is. >> betty liu, 8:00 a.m. this morning. she will have continuing coverage from south africa. with us, william cohan. he is focused on capitalism. ridiculously the controversial -- specifically, the .ontroversial can -- comments pope made an interesting

statement, 250 pages, about five or six pages were about our economic system and the way -- >> our consumerism. >> the way that certain people have the benefits and other people get left behind. people are forgetting that. he raised the specter of the golden calf and our devotion to monetary possessions and things that can be bought with money. >> what is the distinction here? >> i think it is important to remember that there are a lot of people were making a lot of money in this economy and doing quite well and have been for the last five years. there are a lot of people who have been left behind. i think it is important to think about that. pope was moving away from the free market economy. what is going to be pressure from conservative catholics that are in the finance system or government? >> they are not going to like it. they're going to be concerned --

they're are already up in arms against this pope already. i am not catholic. what they are saying is they have the conservative world up in arms. on pope francis. the debate continues. >> coming up on "bloomberg we will talk about what it means for lululemon's founder to step down. ♪

>> daniel hurwitz on retail, commercial real estate. hurwitz, ddr ceo. tomorrow.scuss we are over stored in this country. >> let's get to company news. bill cohan.st is zoosk is planning to go public. they have picked bank of america to lead the offering. they create matches based on facebook connections.

it holds three percent of the dating market. texas instruments reassures wall street that there profits will be in line with analyst estimates. the demand for car components has been making up for weaker components in other industrial instruments. nokia is ready to settle a tax dispute in india. this payment would enable the transfer by nokia factories to microsoft. above -- amongs the assets chosen by india and the tax dispute. >> and incredibly busy "bloomberg surveillance" there is washington. a bit dark and gloomy and gray. wall street is front and center with the volcker rule. >> my agenda is definitely the

volcker rule. it was meant to be voted on today, but the snow you just saw, for those of you on radio, it is coming down heavily in d.c. stilld, fdic, and occ plan to meet and vote on the rule that bans banks from crosstraining. at rule will be released 9:30 a.m. we hope to risk -- to see the results an hour after that. i know you hate the rule, but how do banks make money? >> they may have to go back to the future. if the economy improves, investment banking is going to get stronger. do --raining that they the trading that he do for their clients, which is always a fine a $2-- when you buy billion portfolio for your client and then you hold it on your balance sheet, is that a

proprietary trade, when does it become a proprietary trade? they will be doing a lot of that. it will be doing a lot of management. wall street will figure out a way to make money once they figure out the rules. in 2014, are we going to get back to where the bankers, globally, have skin in the game? >> no, we're not. >> we are nowhere near that. >> not unless somebody decides to be a leader on wall street. a real who wants to be leader on wall street and says, we are going to have our top 500 guys have skin in the game again. there is no impetus for that. it would require real leadership. >> is washington a wise global competition? isthe why they don't do it

because the gravy train that exists now cannot be beat. where else can you make millions of dollars without having your own skin in the game? people are the most risk of her people in the world. where else can you make so much money and have so little of your own capital? in 2013, i go back to our interviews and the idea of job loss on wall street next year. do you forecast further rationalization if they cannot get those returns on equity up? >> or moving to europe? >> once they know the rules and figure out what their business is going to be, they will law off groups of people who are not figuring in that plant next year. -- plan next year. if a business line is not doing well, out that goes in they will wait for a better day.

>> where are people that used to work on wall street going to? >> i did a piece about a year , what happened to all of these people who are overeducated and have been making millions of dollars on wall street and now they are coaching their kids soccer teams, opening restaurants. day -- in london open one guy in london open a --. men and women have a lot of skills, they're just not relevant to wall street anymore. we have created this cohort of people who are well-educated. they have made a lot of money and do not know what to do with themselves. >> this is going to be a problem we continue to address. my agenda is i am looking at lululemon. chip wilson will step down as

chairman. this comes just over a month after he sat down with trish regan on "street smart." quite frankly, some women's about you do not work for us. through the five, how much pressure is there. bodies do nots work for lululemon. he has been the chairman and the largest shareholder. there shares are moving higher because they announced a new ceo replacing christine. sayinghad some analysts that they could not attract a new ceo was because of the founder. lululemon is dealing with more competition. you have under armour, you have nike, all of these other companies jumping on its territory. tty.e is also sweaty bea

25% higher are the prices. people are going for it. >> why? you just sweat in them. i don't get that. i am a four dollar kind of pandora. -- pant girl. the vix is churning at 1349. bill cohan is with us. what is different about this bull market? >> in the last few days that i have been -- i have been amazed. it is clear that the long- awaited tabor is coming. the market seems to be taking it in stride. the last few days, it has been going up. i think that is interesting. it is about time the market gets

used to the idea that the morphine is coming out of their arm. did youn that, what learn in july and august as bond prices move lower annual prices move higher? >> it is a lesson that needs to be learned. you cannot have the artificial stimulus supporting interest rates. is aboutn't think this earnings and cash flow? >> it is, but it is also about this artificial stimulus from the fed. interest rates are like any other commodity. they need to trade. when you have a big player in the market buying up $85 billion a month, you're going to have artificial pricing in the market. we need to take that out of the arm and get back to pricing risk and pricing money properly. >> coming up, bloomberg commodities. alix steel and i will talk three hours nonstop. one burgundy will join us as

well. >> that will be fun. day.itter question of the rulew will the volcker change wall street? it will not. if anything, it will continue to circumvent and. -- wall street will continue to circumvent it. bankll likely reduce revenues but also allow policymakers to find more creative ways to indirectly led the consumers via banks. it will only make the banks more secretive about how they manipulate the market and cause them to be more creative. the lawyers are going to have a field day. >> smart answers there. >> william cohan. silence,"ice of april, 2014. shameless plug.

withlliam cohan perspective on the volcker rule. have coverage of the services for nelson mandela. it is "bloomberg surveillance." ♪

>> good morning. we are live from bloomberg headquarters. you are "in the loop." i am betty liu. it is snowing.

it is actually snowing here. we are supposed in get about three or four inches. here is a look at the top stories this morning. regulators are expected to unveil the final version of the volcker rule. we are going to be taking you behind closed doors at the largest package delivery company. bloomberg goes inside ups during its busiest time of the year. it is when the elves start to put all of the presence together. -- all of the presents together. the founder of lululemon is stepping down as chairman. we will tell you more about the yoga pants maker. chip wilson will be replaced. christine day will depart as expected and will be replaced. a lot of changes going on.