"bottom line -- from bloomberg world headquarters in new york, this is "bottom line." tonight the battle lines are tron in washington as the senate works towards a vote on the budget deal. we will heal from the majority leader harry reid on the budget and more. and we will have the results from in exclusive -- an exclusive bloomberg: what americans think about bitcoin. to our viewers here in united states and those of you who are joining us from around the world, welcome. we have full coverage of the stocks and the stories that are making headlines tonight. su keenan has details on

qualcomm's new ceo and all of the friday market news. and yang yang has reaction from harry reid on the battle in the united states senate. greg good evening mark. the battle is in the senate after the house voted ,verwhelmingly on thursday almost equal numbers of republicans and democrats, to pass the bipartisan budget deal. it puts new pressure on the senate democrats to get it through this one last hurdle and onto president obama's. the senate is expected to take up the bill on tuesday. 5 republicans will have to join democrats for the deal to pass. after two street all night sessions, and the continuing fight over senate rules, passage does not look like a landslide. despite strong republican support in the house, some of republicanofile -- senators have already lined up in opposition to the bill. they do not think that the deal

negotiated by congressman paul ryan and senator patty murray does enough to bring down the deficit. majority leader harry reid who spoke to bloomberg's al hunt for "political capital" said that senators have to vote yes. >> i think it would be suicide if the republicans do not have to. it is a landmark agreement, not because of the massive size of it, because of what it does to the congress and for the american people. senator patty murray also said today that she is confident that it will get the votes that they need. if they do, the threat of a government shutdown would be off the table for two years. we would have ourselves a rare moment of bipartisanship. congressman chris van hollen also had an interview with al hunt and he said that it should not be considered a breakthrough in washington's gridlock, at least not yet. getthe big test is when we

to the debt ceiling. whether or not the house republicans again threatened to not pay the bills that are due. they may try to use that moment to extract concessions on their agenda. feel -- that fight is just around the corner. the debt ceiling is suspended until every seven. that's what often we expect ysidro progress next week before they break for the holiday? >> in the senate, we can expect to see a few things. we can expect to see a vote on the homeland security nominee on monday and janet yellen confirmation -- janet yellen's confirmation will be next week. looking ahead to 2014, speaker boehner formally invited president obama to deliver a state of the union address on january 28. the president accepted.

mark your calendars. >> again, thank you. we will have more on the budget agreement and what might happen in the senate next week. political strategist at atomic research group will join me for analysis and a look into what could be considered a crystal ball at the eye. that is coming up in 10 minutes. let's get you more from al withs extended interview harry reid for tonight's political capital. the elimination of the filibuster will not change legislation. the rule change was necessary. withu have an agreement mitch mcconnell, so you don't need to have another all-night session over the weekend. do you think this marks the end of this bitter rancor that has transpired over the last couple days? republicans say that it is due to use steamrolling the rules change. >> it does not stem from the

last few days. it has been over the last five years. there has never been a situation in history where a president has been treated the way he has by the congress. it is no wonder that the congress is the way they are. we have had obstruction on everything. the, nation was when the president, after five years, we put a teamhat he had together. so we change the rules. >> are those rules changes permanent? 50 yes. no matter who is president, they should have the ability to have their team in place. i do not know why people complain about the majority. people talk about this filibustering as if it were something that is next to the 10 commandments. a filibuster is not part of the constitution. it was developed originally to

help get legislation passed. now of course, it is used in a way that stops nominations and legislation from being passed. we are not going to affect legislation. >> will the senate confirmed janet yellen next week? >> yes. >> the you know when? >> toward the end of next week. relationsate foreign committee chairman wants to pass a tougher iranian sanctions bill that would be triggered if the interim agreement falls through. john kerry and the white house say that would be a bad idea and hurt you negotiations right now. will there be a vote in the senate in january on iranian sanctions? >> we had a good briefing this week. we had secretary of state john kerry and jack lew and it lasted for two hours. menendez was there. a bipartisaning on

agreement to come up with some type of resolution or legislation. he has worked closely on my side of the aisle with senator chuck schumer. he has been involved in that. i will wait to what they come up with. >> is there more likely to be a resolution than legislation? >> i do not know. startedsomething people talking about a day or two ago. it is an important issue. iran has been a real problem for the united states for almost 40 years now. we cannot let them get a nuclear weapons. israel is our friend, they are my friend. we must protect the administration in our negotiations. bipartisan legislation is never bad. if we can come up with something ,hat satisfies my people

menendez and schumer and the other folks, and it is bipartisan, we will take a look at it. >> let me turn to obamacare. it has caused the president and it has cost the american citizens. how permanent is this damage and do you think it will cost you the senate. >> not only do we have incumbents doing well, we have states like kentucky and states like georgia where we are running well. we're doing well. see al hunt's entire interview of senate majority leader hearing read and maryland congressman chris van hollen on "political capital lowe's quote coming up tonight at 9:00 p.m. washington time. , what is going to happen next week in what some

are calling a totally dysfunctional u.s. senate? friday night politics when bottom line continues in a moment. ♪

>> saturday is the one-year anniversary of the school shooting in newtown connecticut. the governor has ordered flags in the state to fly at half staff in honor of the children and adults who were killed at sandy hook elementary school. students in colorado, in suburban denver were ushered out of their high school with their hands up after a student shot two people before apparently turning the gun on himself. county sheriff said that two students were winded. the school is eight miles east of colorado. -- columbine. let's see how the markets finished for this session. little changed,

after the worst week for the s&p 500 since august. losses in oil and phone shares had gained after the house of representatives passed that budget deal. let's look at the numbers. the s&p 500 went down fractionally pulls out the dow jones industrial average was up 16 points. up twodaq composite was point two just under 4000. let's get you the stories high and the numbers. su keenan is standing by with those details. >> despite that loss for stocks, there were some big gainers. adobe sword as it attracted more subscribers than forecast for its online software pulls out texas industries jumped. and t-mobile is moving on reports that sprint might be mulling an offer. nimble, thewas

flash storage company, that raised more than expected in its ipo. the former chief operating officer of qualcomm was just bumped up to ceo and president. there were reports that microsoft was eyeing him in their ceo search. he takes the reins of all, in march. big capital changes at at&t. honeywell announced a stock buyback program of almost 5 billion. electronic arts rallied as videogame sales jumped up to the eight percent year-over-year. 4 and playstation microsoft's xbox one played a big role. a judge found that a texas company and its unit reliable for a potential payout for environmental cleanup.

this relates to a chemical company in 2005. they plan to appeal the decision. andy reid taylorsville know all about pressure. and the retailers know all about pressure. they are facing some major challenges. but they are in a world of hurt. both of them lost the brand cachet. jcpenney, they had the cachet with a certain group of customers, and they really lost it. they lost it by saying they would not be discounting anymore. everyone loves discounts. they lost all those people. it is hard to bring them all back. they should say they are sorry they did that and you discounting again. >> a bearish tone from miller who once called himself the turnaround kit after a career spent making trouble companies better.

>> su keenan thank you. not excited about the budget bill. joining me from washington, chiefvalliere, the strategist at the potomac group. welcome to the broadcasting good to see you again. >> great to see you. write the deal eases the effects of sequester. kurt occurred and another government shutdown. but it does not put the country commentsteny hoyer's about a fiscally-sustainable path. this a missed opportunity to do something big? >> we could have been bigger. but this is washington. we never could get a grand compromise. about thisagree extent. the deficit will continue to fall dramatically.

the new focus is not going to be outraged. it will be on revenues. we will see a pleasant surprise. deficit, andg of the former libertarian candidate for president gary johnson, he put out a press release that reads in part, are we supposed to be impressed that the deficit is almost $700 million? -- seven under billion dollars? crowinge folks are about a deal that will save $20 million. -- $20 billion. for taxpayers, for businesses, for the markets, we now have some predictability and stability. a half, this deal goes until the fall of 2015. that kind of stability removes a big headwinds from the economy. a year ago today, we had

enormous headwinds. a shutdown, higher taxes, none of those headwinds are present now falls out >> as you speak about headwinds, paul long senator patty murray, he said that the deal provides certainty to the u.s. economy, what does it say that even a small deal could give this economy some momentum? >> it removes all of the question marks in my opinion. we do not have to worry about another shutdown. for a lot of businesses that have been hesitant to invest, we are removing that obstacle and uncertainty. debtu talk about the ceiling, and as we know, this is a temporary truce. there is a fight upcoming, and for all the talk about compromise, you don't feel we are headed for another round of political back in or next month? by -- kumbayaome

time in washington. the senate will very narrowly approved a steal and now we have to worry about appropriators getting something done to generate 15. there are a lot of contentious issues, whether it is tax reform or immigration reform, or as you mentioned, the need to raise the debt ceiling. i feel strongly that the republican leadership has decided that they will not play brinkmanship again. like that leadership is coming from john boehner. how difficult is this for him? >> this is a big story. in my city, we may be parochial is aboutbut this story how eagerly he repudiated paul ryan. this will work for be 84 weeks and weeks. despite within the republican party. there's is one player who emerged as a big winner who is a popular player in both wings of the republican party.

it is paul ryan. it was a big week for paul ryan. if i have to ask you about the markets. they seem to like what they heard today at least. how do you think the markets will continue to react to this going forward? is this the certainty that the markets needed? thehis part of the story, physical part of the story, has been settled. now you have a new concern and that is the monetary part of the story. i say ironically because over the next week or two, what the fed is going to do with tapering will become the focus. it looks to us, and we have a former chairman who believes that after the sales report on thursday, the fed will start to taper next week. i-55 have all the information that it needs? does that certainty inhibit the economic data over the last few months? >> some people at the fed would prefer to wait another month or two. the direction is pointing

towards stronger than expected growth. that is enough for the fed to do a very modest taper next week. , joining usiere from washington. it is always a pleasure to have you on the broadcast. thanks for your time. continues inline just a moment, we will continue our coverage of 12 days of bitcoin. do americans even know what bitcoin actually is? we will have the results in an exclusive bloomberg poll when "bottom line" continues in a moment. ♪

>> welcome back to "bottom line

and tonight's installment of the 12 days of bitcoin. the price is back up and more places are now accepting it as payment. does that mean more people know how to use it? megan hughes has the result of our exclusive bloomberg survey. bitcoin can be used to buy everything from t-shirts to teslas. a lot of people don't even know what they are. a bloomberg survey from december americans,er 9 asked what is it going? 46% had no idea. 42% said that it was a virtual currency. out of those who had heard of bitcoin, some heard about it because they had heard it was being used by criminals to conduct crimes. under 35raphic, those were most likely to know what

bitcoin is. it could be an indicator of its future. bitcoin, are aware of almost 50% believe that it should continue to unregulated. be say that it should not regulated. it promises to be a hot topic in washington. the sec chairman suggested that virtual currencies could be considered securities if they are bringing in returns. they could be subject to agency regulations. up, landlords asking for a $700 increase in monthly rent. no it is not here in new york city, it is in china. we will tell you how much it will cost to live in beijing these days. that story and more when "bottom " continues in just a moment. ♪

>> welcome back to the second " on hour of "bottom line bloomberg television. i'm mark crumpton, thank you for staying with us. let's check on the markets. stocks were mixed today and posted their second weekly loss in a row. indexes reached record highs as recently as monday, but then they declined. the s&p 500 index was down fractionally, finishing the day at 1775. 10th of aones was a

percent today. the nasdaq finished up around 4000. the indexes show that they were all in the red. the topeck some of stories we're following for you at this hour. today was the last pay for public viewing of nelson mandela's body in south africa. police had to turn away thousands of mourners due to the long lines which stretched for miles. he will be buried sunday in a remote village that was his childhood home. security will be tight as dozens of heads of eight are expected to attend. space station astronauts may get their christmas wishes. this astronaut is hoping to get a wish for a spacewalk or two. he is next. spacewalk or, and says he is ready to -- he is unexperienced spacewalker, and they may need to make repairs.

bad valvespects a inside an external pump. superstition did not deter players hoping that friday the 13th would bring them luck in the mega millions game. heavy sales rocketed lottery officials to use the jackpot to $425 million. sales were 40% ahead of projections, and officials boosted the jackpot from the drawing. you were to try all of those possible number combinations at one place, it could take over seven years to print all of the tickets. good luck. that is a look at some of the top stories. >> approval of the 5.4 billion dollar case dying -- keystone pipeline would be a jackpot for energy producers. according to a bloomberg poll, a majority of americans support cashing in.

66 -- 56% of americans support the pipeline. dirty five percent see it as an environmental risk. pipeline protest may be affecting public opinion. 58% say that canada should take steps to reduce greenhouse gas emissions as a condition for approval. after five years have passed -- more than five years have passed wase the keystone pipeline first proposed. americans believe by a margin of 61%-28% that the delay is more about holiday then any legitimate environmental concern. now for the commodities report. su keenan is in the newsroom today's details. go downw oil and gas today. coffee provided a big pick me up. 20%,'s game was more than making for the biggest weekly gain in more than one year. the been used by

starbucks and other companies tighten. you want sugar with that copy? it could cost you a bit less. sugar futures have been in decline since october. energy falls across the board with oil falling to a 10 day low on a mix of concerns. down and analysts say that traders are continuing to be concerned about this tapering. gold and silver took a few hits, but they ended higher after signs of inflation. investors are thinking the fed might wait a bit and that tapering is still off the table. rises may get a pickup due to chinese demand. it was the longest rally since may of 2012. aluminum, zinc, and nickel are also moving higher. a losing week, and it

dropped the most in three weeks i should say. that china may be projecting certain types of corn for safety concerns. >> we're looking at wild weather this weekend. how will that affect the church next week? next natural gas. >> natural gas. the million-dollar question is what will the weather really do? we are seeing a little short- term complications. natural gas, the so-called whether commodity, had rallied ahead of this week's storm. the forecasts are a bit mixed. >> su keenan joining us from the newsroom. thank you. mostng is now the second expensive city in asia for expatriates. it is now behind only tokyo. bloomberg's christine hot has our report.

>> 80 the sandwiches. two dollars for a lunch year. five dollars for a bunch of flowers. there, you can get a pirated dvd for $1. according to the latest survey of a management consultancy group, beijing is the second most expensive city in asia for expatriates to live in. some of it can be accounted for by currency, but most of it is simply because they cost more in china. skyrocketed. french cheeses, meats, all of these delicatessen foods that we get at home and basic foods, the price has gone up. a your child wants to go to western school to maintain the standards they are used to, they have gone up from $20,000 a year to $30,000 a year.

>> per child? >> per year, per child. a four bedroom apartment used to cost $2000 and now they are asked inc. over $3000 per month. one landlord is asking for a $700 increase in monthly rent after just two years. if they do not have a choice. they have to live and work here. maybe they could get a good apartment for $1000 and now they have to pay double. they can only downgrade to a certain standard. they will have no choice but to lease. nobody wants to pay that much for rent. >> the apartment is only the beginning. it can cause anything from $1000 to $10,000 per month for an apartment. drinking water is about $700 for the year. $30-$40ution masks are

each, not including filtration. last year, the pollution was worse than this year. remember the orange days? people saw that and they fled. >> the government took a census in april 2011. there are one million foreign residents in china. 100,000 live in beijing. whether that number goes up or willby the next census, it depend on which traction cost of living swing in the city. bloomberg, beijing. next, joe brusuelas gives us a preview of the important economic numbers coming out next week, including the highly anticipated fed announcement. weekll take a look at the ahead when bottom line continues in just a moment. ♪

>> it is time for our freedom -- friday feature, the week ahead. bloomberg's senior economist joe brusuelas joins us. charts go through these with us. good to see you live and in person. economic news will be dominated by the federal reserve meeting and whether policymakers will begin tapering. if the fed going to start tapering next week? >> they could, but i think the probability is substantially less. there is a bout a 40% probability of a taper. i think it will be march of next year. in september 2012, and there was a purchase program. i had to remain on hold and sustain a program much longer than what market professionals would have thought. they have to see it through here now.

i think they want to see another 90 days. we have to get past the debt ceiling and move through it. just because we agreed on a budget, that does not mean that they will not have a problem with debt ceiling. the event will probably be on hold for the first part of next year. this chart tells us that the fed is concerned about these issues. points back ups in short-term yields. that took the wind out of interest rates. ironically, we have a lot of interest rate data. if we go to the next chart, we will see primarily what we are looking at is manufacturing, durable goods orders, -- >> the surveys are out next week. what about the third quarter inventory search? what impact will that have on the numbers? as we are expecting to see that new orders will rebound. they will remain relatively soft with respect to where they were earlier in the year. we are having this a debate on

wall street as to whether the surgeon consumption that we saw in the retail sales data is sufficient enough to absorb the inventory accumulation of the third quarter? is that the inventory drawdown will be softer than expected, but it will still extend over the first quarter next year. at theou take a look chart, you can see that orders drop significantly at the end of the third quarter of the year. that's only that there was some channel stuffing going out there in retail and auto land. cautiously until they see a sustained pickup. >> the consumer price index is out. we saw a rising gas prices and a mild increase in food prices as well. what will that due to the november top line of cpi? x we will see cpi jump a little bit on the top line.

it will remain closer to the lower ends of the tolerance bands. end and0% at the lower 2.5% at the upper boundary. that is one reason why the taper will be on hold until early next year. we are a very and think some inflation here in the united states and europe is on the cusp of deflation. central bankers are sensitive to meeting their dual mandate of increasing employment and maintaining price stability. housingll also see starts and permits. it has been slow in recent months. you think there is some room for optimism? >> you put together a chart and it is just the basic model. if you give a two-month leave that permits, what you see here are the permits. you can see a little bit of a pick up here. it is rejecting forward on permits. about thisked before, the increase of the

actual investment is organic. it is largely in multifamily dwellings. if you are a policy maker and you are worried about long-term rates, you have to watch this closely. it is going to be one of the big issues in 2014. >> existing home sales numbers will come out. they have impacted the market this year by how much? what is driving activity in the housing market. if you take a look at the supply, the number of homes or your prices.osts it was difficult to buy a home because there was no supply. we have reached a point around 250 5000 more homes started coming back into the market. that occurred around the time that the fed started talking about tapering. long-term interest rates rose and took the wind out of the market. we are all going to be dependent on policy next week. back to where we

started. taper or no taper? >> no taper. >> janet yellen's first decision? >> it will be to pair down the pace of asset purchases. they will keep securities purchases where they are, and then they will generate more momentum so they do not need the help of the fed. >> bloomberg senior economist joe brusuelas, good to see you. they can cashwhen in. fans and employees of the amc theater chain can get in on the action. we will get on that story "hen bloomberg " "bottom line continues. ♪

it's netflix and movies on demand, there is plenty of competition for movie theater chains.

movie theater chain amc is fighting to stay alive. sam grobart tells us how. >> for almost as long as movie theaters have been around, they have been threatened. first by television, then by the vcr. now movie theater strike back with things like imacs, 3-d, and audio. amc is renovating its theaters the profit is in ripping out the older smaller seat and installing these new seats. in that renovated eaters, attendance is up. recline, put my drink here, and you have your armrests. you are hanging out. cozy. nice. why are they doing all of this?

to make more money. and it is working. if you go back to 1995, the movie theater industry had total revenues of $5.3 billion. now those numbers have doubled. there is an irony to what amc is doing. in order to compete with your home set up now that you have a 60 inch lcd tv and surround sound, in order to get you out of the house, amc estimate the theaters more like your home. >> those seats look really comfortable. encore, your guide to the biggest newsmakers of the week on "bottom line." we'll be right back. ♪

>> be sure to check out the latest edition of bloomberg is this week. it is on newsstands and your tablet right now. you can read it on the go with our new app. let's get you the bottom line on what is happening next week. the senate plans to vote on a bipartisan budget agreement. a vote ono expecting janet yellen's nomination as fed chairman. ceo of an auto company speaks about their investment plans. that comes one week after the u.s. treasury said that it has divested its gm shares. it is friday, so we bring you "encore," a look back at the

most notable newsmakers of this "bottom line." >> can congress passed a resolution if the run sheets or does not agree to the deal? then sanctions might be put in place. right now it does not look like congress will have the time to put together comprehensive sanctions. the rule allows institutions to engage in mainstream lending that they have always engaged in. it prohibits the proprietary trading which is short-term speculation. much of the activities around main street they can still do. >> we see for example, that men can be promoted based on their potential. women have to prove themselves

based on their performance. there are a number of factors from women being excluded in import networks where they can build relationships to not having access to what we would call beehive potential critical jobs that are so important to advancement. >> one of the advantages for the real business is that there is no substitute for motion. you can simulate a toy car, and you can simulate a lot of things in video games, but you cannot simulate motion. when ipos are doing well, you will see more about. >> we are things star would, marriott, hyatt trading up. now is a good time to buy. like the job market is strengthening. get 200,000path to jobs a month going forward. year, weby may of next will get the level of employment back to where it was.

that will boost the disposable income of lower income consumers. we cannot ignore the fact of what is happening to the lgbt community in russia. a corporate sponsor has a platform and an ability to let lgbt youth in russia know that it is ok to be gay. they are not going to be discriminated against. there are people in this world who care for them and support them. of theseeasy on behalf corporations to make a statement about that or help support the lgbt community in their outrage. -- outrage. -- outreach. >> get the latest headlines at the top of the hour. it is streaming on your tablet, phone, and bloomberg.com. that does it for this edition of "bottom line." i'm mark crumpton reporting from new york. thank you for joining us. i will see you on monday night. ♪

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