>> from bloomberg world headquarters in new york, imr crumpton. i am mark tonight, i federal judges says the nsa phone spying program likely violates the u.s. constitution. tensions mount in ukraine as the country's president speaks of bailout from russia. we will meet the real-life wolf of wall street. ♪ to our viewers here in united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines tonight. su keenan looks at general motors investment outlooks for

2014. theanna goldman follows behind the scenes wrangling of the u.s. senate over potential budget agreements. first, extensive team coverage on our cover story -- the price of privacy. we begin with the national security agency. we have learned the nsa's book collection of phone collections is unlikely -- is likely unconstitutional. it raises the possibility that the program may be thrown out. the legal process is just of one of the many places they have been forced to engage in the wake of edward snowden. the disclosures that some are hoping to stop with a special offer to the former intelligence contractor. phil mattingly has more on the story. officials have made clear since edward snowden was charged in june that they wanted

him to return to the u.s. to face trial. was floated publicly yesterday by a senior nsa official in a 60 minutes segment. amnesty -- >> my personal view is it is worth having a conversation about. i would need assurances that the remainder of the data could be considered -- could be secured. >> the officials i spoke with says there is no change in their position. snowden stood still come back to the u.s.. the position some in the intelligence community arm taking -- are taking is damaging the millions of documents stone and took -- snowden took. from the business committee and technology companies and politically from capitol hill. the ministrations tax force

responsible for looking into it delivered its report for president -- to the president last week. he's expected to make a decision sometime in january. president obama has to work quickly though. of the phonees records has dissipated, there are a number of lawmakers who plan to push for significant curbs to the nsa's powers. that leaves the president in the position of having to thread the needle. tohas to make enough changes satisfy lawmakers who are on the fence about the nsa's activities while maintaining the key parts of the collection apparatus his senior aides say are the most important. for an idea of how successful the effort is, one would have to keep an eye on capitol hill in the first few months of 2014. back to you. >> let us continue our coverage of the price of privacy. as we talk about facebook, walmart, and lockheed martin.

what do these companies have in common? they are exploring potential uses for facial recognition technology. in the future your face print could be a huge tool for marketers. megan hughes examines what this could mean for your privacy. theresident obama asked department to look into the locations of this so they are bringing together industry groups as well as privacy advocates. they will be meeting in february and the goal is to have a code of conduct agreement by june. the technology we are talking about -- remember the movie minority report. worlde trade a futuristic -- it portrayed a futuristic world. a lot of companies are experiencing with this. cameras can take better pictures in public places, geolocion technology is everywhere, internet giant can match photos

to individuals like facebook's tagging system. one of the pioneers of the industry called a disruptive technology and a perfect storm. >> the tagging technology that facebook has launched using facial recognition is a game changer because as more and more people start putting images of their life on facebook and automatically creating a database, it allows you to search and retrieve and create links. >> one research firm estimates the global market for facial recognition could reach $6.5 billion by 2018. i do see is a concern. the code of conduct will be voluntary for companies but those who agree to the pledge will face oversight from the fcc. >> let us turn to the budget talks in washington. the house easily passed the

bipartisan budget deal last week that the senate votes might be closer than previously expected. julianna goldman looks at the possible gridlock ahead. what can we expect from the senate on tuesday? >> of the budget deal -- it faces a real critical test tomorrow. that is when the senate needs to get to the magic number of 60 votes in order to push the bill forward. let the counting begin. democratsneed all 55 in at least five republicans to get to 60. for thes were sending optimistic that they will get enough republicans. would be --id it harry reid said it would be suicide for republicans the book is down -- to vote this down. they been lobbying their senate colleagues to back the deal. there was maybe a wrinkle in this effort.

a senator from north carolina, he had been at war with the deal but he slipped. he came out saying he would not support the bill moving forward tomorrow. the president some trading because that was balanced by two more republicans saying that they would vote to clear tomorrow's hurdle. that brings the total number of republicans to 60 -- to six. he said the bill was not everything he hope for but sometimes the answer has to be yes. they have got enough republicans for now. it raises the other question that democrats. there are still a couple of holdouts of democrats in the senate. independent senator bernie sanders has not come out and said he would support the bill. it looks like it will pass and

once they get past tomorrow's test vote -- they only need a majority in the final vote so they just need 51 votes. that there will be significant drop-off from the republicans who were supporting the bill right now. >> if the budget deal is passed, does that indicate we will not have another showdown around the debt ceiling? >> i wish i could bring some better news but this deal takes the debt ceiling to next year. paul ryan says the republicans expect to get something out of the debt ceiling next year. he said we don't want nothing. this was after joe courtney today and he said the white house edition -- the white house position will not change. let the standoff began. the timing into perspective, the u.s. has said that if the debt ceiling around february 7.

potentially facing another fight in early march. i talked to one republican earlier today who said the white house could say they will negotiate all they want, but the fact is when it comes to running up debt ceiling votes, it is very difficult for republican leadership to do so. the white house is going to have to give something. it is not because it is the way it ought to be but it is the way it is. >> thank you. coming up, it is just the first step to does the bipartisan budget deal reached in washington signal a smoother path to resolving -- to resolving other issues? we will continue in just a moment. ♪

>> welcome back. but show you the equity markets finish today's session. equities rebounded from the worst weekly slump since august on manufacturing growth.

investors are awaiting the outcome of the fed's two-day meeting to get underway on tuesday. the s&p 500 index was up 11 points. the dow industrial is up 129 points. the nasdaq composite was up 28 points to 4029. boeing announced a $10 billion -- $10 million buyback. boeing is also boasting a dividend by 50%. the company sees a quarterly dividend of $.73. the senate plans to vote this week on a bipartisan committees budget agreement reached last week that would set u.s. spending at about $1 trillion for this fiscal year. that is just the start. looming on the horizon is another fight over the debt ceiling. the president of the american

action form and a formal economic adviser to president george w. bush joins us. welcome back. -- we get to the budget matters, let us discuss today's top stories. thederal judge ruling that nsa's collection of phone records violates the constitution's ban on unreasonable searches and seizures. the judge did put the decision on hold pending what is likely to be a appeal -- an appeal from the government. >> this is an important decision by the judge. the nsa program has been politically bit -- controversial from the beginning. sa, eachwal of fi time there was provisions but in. -- put in. this threatens to return the entire apparatus and would send us back to the beginning on how

we collect the national security information necessary. there is a big economic component to this. you are seeing all these tech giants spending a lot of money just to protect privacy against their own government. this has always been a concern about the concert -- the security apparatus. the judge may have thrown one of them out. >> has edward snowden been vindicated? >> i do think there are many that believe his disclosures still violate the basic tenets of visits -- and the security agreement. he broke the law deserves to be punished. some brick -- very important information to the light that will not go away. this is the most significant national security program that we have. it is now been found essentially unconstitutional.

i cannot imagine a more damaging finding. -- thecourt reached accord reached last week --my colleague summed it up best. they wrote that business leaders are not celebrated saying that it leads to much unfinished business. >> if you go by the fundamentals, the things that needed to be dealt with were the tax code. we need entitlement reforms to make sure our social safety net has not fallen. what were the two things that were not in the deal? taxes and fundamental impediments. -- entitlements. no one can pretend this was a big and important policy success what a political celebs -- a political success. lawmakers won't return until

january and that means that 55 tax breaks will lapse on december 31. what impact will that have on average american? >> i don't think most americans will notice that. we have been through this before with the so-called expanders collapsed. i think that highlights what is wrong with our tax code. too much of it is up for grabs every year. we need to pick one that promotes growth. i think this will be a reminder that tax reform is imperative but i can't stand -- stay optimistic it will get done. said that the budget deal is a tiny step forward. he described it to the associated press -- you can't get that excited bitter kid comes home with a d instead of an f. what can we expect from our elected officials?

congresss that this deserves that label. this was addition by subtraction. we did not close the government. we do not damage the economy any further. need are active tops to allow the economy grow more rapidly and put the government on a solid fiscal project today -- trajectory. we did nothing of that. >> thank you so much. it is a pleasure to see you. --n we continue in a moment it is pressure verse of the european union in a battle of a trade deal with ukraine. we will look at the economic and locations when bottom line continues in just a moment. ♪

>> a weekend of mass protest in the ukraine. the 200,000 people jammed independent square as the country's president headed to moscow to discuss a trade deal. john mccain, i leading republican voice on u.s. foreign policy, warns that the ukraine pact withade union russia instead of reaching a deal with the european union, sanctions against ukraine would deserve serious consideration. joining us on the phone from analyst at a company that evaluates a political risk. welcome to bottom line. >> thank you for having me. >> ukraine is in talks with a loan of is -- of as much as $15 billion. is that a better deal than the european union? >> the current situation resembles a tug-of-war over the ukraine.

in the middle of the jostle between eu and russia over who has -- over what block the country is going to join. the president is looking for a quite sizable chunk of money. which one of the deals being offered to them is going to be better depends on the exact conditions. in case of russia, this would mean signing up for the union and a little bit more allegiance to the political and economic impacts of russia. it would be attached to the better government of the country. tie himthe deals would to something that he is not inclined to do. >> one of the things that was reportedly in the table -- on the table is a gas deal. energy leader is that there's a big probability that they will sign a gas deal on tuesday.

what is the significance of that deal? >> gas prices are a double-edged sword for the ukraine. they are high compared to other countries in the region and they are being used by russia. on the other hand, ukraine is also offering more subsidies to be able to meet the energy crisis for heating and cooking over the winter. period. this is draining the state budget and it is one of the causes of the financial problems faced -- the ukraine has right now. they are looking for a cut in gas prices but especially to do regulate the state budget. >> what about talk about undue influence by moscow? there were reports that the ukraine walked away from the edu deal -- the eu deal because russia threatened trade sanctions. weeks, theral sanctions from the sides of

.ussia carry from the ukraine that increases of these complaints about insufficient quality of chocolate or milk but it is hurting the cut -- the economy. russia and ukraine and other countries had been building up her quite a couple of weeks before the summit. >> speaking of pressure, what does all of this mean for the statesd for the united if a deal between russia and ukraine is consummated? mccain said, perhaps it would be better with ukraine. union is looking to get the ukraine into a mode of a of systemicis free

corruption and making it a good neighbor and may be a potential member of the european union. if they go with russia, this prospect will partly be gone. -- probably be gone. >> she is joining us from the phone on london. thank you for your time tonight. we appreciate it. >> thank you. >> if you missed any of our interviews, you can now watch them on bloomberg on apple tv. it is a brand-new experience featuring live streaming and on- demand. it -- videos. we will hear from the general motors ceo on the automakers wanting to refresh the u.s. lineup including upgrades at their factories. the investment strategy when bottom line continues in just a moment. ♪

>> welcome back to the second half hour of bottom line on bloomberg television. thank you for staying with us. let us check with the markets finish today's session as we hit the bottom of the hour on this monday. investors today apparently warming up to the idea that the economy is getting better. stocks racing higher after two down weeks. the s&p 500 was up 6/10 of a percent today. the dow jones industrial average a 129 point -- gain.

indexsdaq composite finished the day up nearly three quarters of a percent. of theet a check on some top stories we're following for you. the detroit bankruptcy case is allowing unions and pension funds to immediately appeal a critical decision to a higher court but the judge says he still needs a day or two to decide whether he will recommend the court fast- track the case. in issue and whether to allow the -- detroit to stay in bankruptcy. the judge says the city is eligible to fix itself under chapter nine. a 30 foot high statue of the late nelson mandela was unveiled today. the statue was on the grounds of the union building where mr. mandela and this -- issued his inaugural speech after becoming the country's first black president. mr. mandela was buried yesterday in the village that was his childhood home.

the mega millions jackpot has million.ted to $586 a largeill trailing prize last year. the jackpot may be increased more time on tuesday morning in advance of the evenings drawing. that is a look at the top stores at this hour. let's look at the top stores in asia. we begin with a warning from south korea's president. >> good evening. south korea has raised the alert level this year. korea'sheard how north leader had his uncle executed. his uncle was perceived to be the second most powerful person in north korea.

the sheer suddenness of how that all caps on and how quickly that execution was carried out. is south korean president saying right now that this simply raises the risks of reckless provocation from the north. south korea is in a situation where unexpected events like this simply cannot be ruled out. it adds to the growing perception of how unpredictable the north korean leader is. that is also one of the reasons why south korea's markets usually trade at a discount. >> john kerry met with the top leaders of vietnam over the weekend. it seems the big headline coming out of that visit involves china. what can you tell us? that anytell you headline coming out of the region especially concerning geopolitical concerns will always have china justice scalia

how important they are. -- just to show you how important they are. unilaterally china pulls one right next to the sea. what secretary kerry is saying is that china shouldn't make a move to replicate that. china is locked with disputes in countries like -- in that region. the u.s. is strongly opposed to aggressive tactics of any country to advance the territorial claims. his visit to south east asia and vietnam simply reinforces that -- u.s. support. >> thank you for joining us. let's talk cars in the future of one automaker in particular -- general motors. they officially emerge from the

government bailout. the last part of the loan was sold off last week. the ceo is speaking out about 2014 and beyond. some of the topics -- a factory upgrade. the company's first female ceo in a potential dividend. su keenan has the details. ceo covered all topics as he talked about the comeback for the automaker at the national press club. it may have cost the government nearly $10 million but he rejected the idea that the -- that gm should cover those costs. he defended the bailout talking about millions of jobs saved. this conference came after gm announced it is the best thing -- it is investing $1.3 billion to upgrade their back -- their factories. cool -- whory barra will become the next ceo.

stork -- itt is a is a stork -- it his historic. she was picked on her hard work and success, not because of her gender. i am proud of the history our company has in terms of promoting qualified my nori and female -- minority and female employees. >> this or a change in leadership takes place next month. >> shareholders were interested in comments of the dividend. >> stocks moved a lot higher on this with improved cash flow. he says the company is in a better position -- at a position -- better position. he permitted big sales of the jeep -- of the company's electric car. >> we will sell more volts this year. we will sell more than audi cars.

there are 230. >> while he was speaking out, he also shared his view on the economy saying that europe is showing signs of life and there is monkey business going on. >> the united states at times fiscal, called a monetary manipulator. i would attach that to japan. that is an important part of it and one that i think needs to be watched very carefully. >> handling a lot of topics, gm shares up 40%. you.queue. -- thank thisf the big movies holiday season is the wolf of wall street. we will find out of his life is anything but the character portrayed in the movie by leonardo dicaprio. we continue in a moment. ♪

>> welcome back. let us start with the weekend box office. the top grossing film was the hot it -- the hobbit. it took him close to $74 million. frozen finished second with $22 million. it stars the voices of kristen bell. is one of washer it the most anticipated movies of 2013. it starts leonardo dicaprio. time financial outlook dog -- alpha dog. bloomberg sat down with the willful wall street. >> my name is jordan belford. imade $49 million when reached twice six -- 26.

was all this legal? >> we are hoping to get this cautionary tale like a blooper of what to do in what not to do. when i was at the bottom and everyone was writing what a terrible person is was -- i was. >> agreed for the lack of a better word is good. >> i never want to place blame on somebody like a fictional character. he stood up and said greed is good and a lot of people bought into the notion. there is something noble about making as much as you can and not focusing on who gets hurt along the way. that is not true. i wasn't really focusing on the reality. i am not making any money on the books or the movie.

the only way i will is everyone gets money back but until then i don't want to make any money. as a broker or trader, you are not creating anything. you are trading up ingenuity of other people. like there isfeel nothing tangible attached to your product and you have this sort of emptiness to the money you make. pathsure you stand on the of trading value versus instant gratification. >> up next, we are all over the latest moves in gold. it doesn't look pretty right now. a commodities report straight ahead. ♪

>> welcome back. after more than 40 years of study, the federal government says it has no evidence that the

antibacterial chemical used in countless common soaps and washes help prevent the spread of germs. regulators at the fda say it is reviewing research suggesting it may pose health risks. the agency says they are visiting chemicals such as cyclones an -- licosan. growth of drug- resistant bacteria. the activate -- the fda says they have one year to approve the products they sell to remain on the u.s. store shelves. big pharmaceutical companies have seen their margin squeeze for years now. one of the reasons is that the blockbuster drugs are losing their patents. one way to find a blockbuster -- repurpose a -- repurpos ing. tom gibson has more. >> make it successful medicine, you can need hundreds of these. the right combination and money is made.

a little tweak contains the effects. key toople believe the unlocking new cures is these new drugs. >> the good thing about these drugs is they are very active. they have secondary effects so to treatcould be used alzheimer's for example. macure. doctor runs phar using compounds from an old drug, the company's claimed to find treatment that potentially stopped alzheimer's. >> you can make second uses of these drugs. the advantage is you could fast- track these drugs into clinical trials so you could test it. obstacles -- are

but there are obstacles. pharmaceutical companies could shelve the compounds to cut their losses making drugs -- making drugs is an expensive business. >> that need to offset all of the costs. >> to actually develop these drugs, it cost billions of dollars. it is taken from the clinic all the way to the market. yearsst seven or eight with the bellman time required. -- development time required. >> this is in the first time the company has cashed in on an old drug. $2 billion for viagra. there were 22 phil drugs available to academics. -- failed a drugs available to academics. down --argin drag

company margins drag down. it could help both patients and an ailing industry. tom gibson, bloomberg. >> it is time for the commodities report. su keenan has the details. -- oil and gold rise. extended trading -- we're seeing oil fall. let's talk about gold which was modestly higher for a second straight session but it is now down more than one third of from its peak. you may have recalled goldman admitted it sell gold call. it was not alone. and analyst says all the bullish factors pushing gold higher in the last 12 years are now in reverse. market ininto a bear april and is now 35% below its 2011 peak. lack ofpaper,

inflation, is causing an unprecedented exodus from gold funds. -- two of thems helped kick off the selling. the high-profile moves, the/holdings -- they slashed holdings. we have seen a 31% plunge in the holdings of the 14 biggest gold backed exchange products. these are the gold versions of etf. they are easier to trade in the commodity. it is predicted the outflows will continue in 2014, you get a very different view. physical gold buying a strong and he believes it. >> there is a disparity between the april market and physical market. is abeen as an asset -- it great time to get in in in my view and i think 2014 will unfold would very bullish signs

for precious metals. >> according to the cftc, we did addiction and bullish reports. >> what about the outlook for tomorrow and the rest of the week? agencyenergy information is suing the output will climb to a record this year. we do harm -- we do have our weekly survey of analyst and they predict that oil supplies will fall for the third straight week. the big focus is going to be on refineries. >> thank you. still the calm,'tis the season to prepare for the holidays all over the world. we will take you from italy to spain to michigan. a hot shots is next. ♪

>> that is a look at the futures market here we bring you a market check at 26 and 56 after every hour. let us get to the bottom line on what is happening on tuesday. we had the preview. start with the senate where we are watching for the critical test vote to advance the budget deal. it could come as early as tomorrow morning. it sets the measure up for final passage later this week. house, the white president obama is going to be meeting with more than a dozen tech ceos including tim cook,

marissa mayer. a number of items will be on the agenda including the administration's controversial terrorist surveillance program and the technology fumbles that hurt the rollout of the health care law. that meeting gets underway tomorrow morning. the federal reserve begins its today closed meeting on interest rates. we are watching for a key decision to come on wednesday whether the fed will start tapering its bond buying program. we have an ipo that is pricing and given the success of the recent twitter ipo, there are sure to be a lot of interest in the eighth -- at the amc theater chain goes public. seats.making plush looking at what cost to go to london on a private data private plane -- on a private plane. we will show you what you get

for the price. we will continue our series of 12 days in decline -- and bitcoin. would you believe a grocery store in brooklyn excessive bitcoin -- accepts bitcoin? >> thank you. look time for hot shots, i at some of the most compelling images of the day. as people all over the globe prepare for the christmas holiday, you can certainly that that vatican city is ready. hundreds of people from all over the world came to see the lighting of its 82 foot christmas tree and st. peter's square. ii began thel tradition of having a tree in the square back in the 1980's. 6000 santaat least claus is an else took part in a fund-raising race. the race along the widest road

to madrid for over three miles. the event was organized by the biggest department store. the money raised will buy christmas presents -- for children around the world. santa claus may live in the north pole when he hit the books, he heads to the small town of midland, michigan. more than 100 santa claus is attended classes at the santa school there. they get instruction on makeup, sign language, and reindeer care. get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and am bloomberg.com. that does it for this edition of "bottom line." i am mark crumpton. thank you for joining us. see you tomorrow night. ♪