>> welcome to lunch money, where we tied together the best stories, interviews, and video in business news. but take a look at the menu. begins aal reserve two-day meeting. in media, we meet three startups at the center of the online television revolution. a wild card, do you want to hang up with world-class athletes? it's easier than you think but it may cost you. and we're going to hear from one of the biggest names in the business. finally, in sports, the winter olympics are less than two months away and we are going to catch up with one athlete and

his amazing comeback story. a busy day in washington, the federal reserve beginning its two-day meeting. the senate is voting to pass the budget agreement passed by the house last week. >> if you go by the fundamentals, the things that needed to be dealt with were the tax code, fundamental tax reform is imperative for our international comparative. doesn't lead are lot of red ink and is an economic threat to the future. and what were the two things not in the deal? taxes and fundamental entitlements. we are moving around the edges. no one could could -- no one could pretend this was a big enough policy. it was a political success and to know more people >> we will put nibbling around the edges. -- no more. nibbling around

the edges. here is mohamed el-erian. -- >> what is happening is both parties are going to end up running out the clock until the november elections. then we are going to start all over again and the country is going to lose that area bang of time -- that period of time. let's at least the budget removed to some of the uncertainty in markets. it is good for wall street and main street. complex as that uncertainty is removed, households can get out there and spend more. we have an unemployment rate that continues to fall and businesses see that confirmation of stronger aggregate demand -- that is the historical relationship between business investments and business cycles. invest morevents -- and higher more, that leads to more job growth, more spending, more investment. it starts that cycle. >> it sounds like this budget deal is good for consumers. >> it is positive for consumers. of the government shutdown

impacted more negatively than anything else, consumer sentiment. a legislative body that can work together, that should be positive for consumer sentiment. it could ultimately filter in two -- >> and the markets went down. i hate to put you on this hot at the markets went down after this budget deal was passed. >> absolutely, and that makes sense given that p blay what they are thinking is when they decided to postpone tapering in september, which may have expected, was concern over a possible government shutdown. it makes sense that the street with selloff on a day like -- that the street will selloff on a day like the past two days. removes one of the headlands the fed is concerned about and couldn't postpone tapering even

further. >> tomorrow we're going to hear from fed chairman ben bernanke so, what should we expect the echo so what should we expect? -- so what should we expect? >> they failed to bring forward great dictations -- great expectations. they do in this press conference -- they're going to try to do more heavy lifting on separating qe. maybe they unloaded the unemployment pressure -- maybe unemploymente threshold. the one thing they want to do is get the message out there. all they want to do is more assets. >> are the markets worried about what the fed may say tomorrow? clock citing the people are worried about tapering. there's a big difference between tapering and front-end.

that steep curve was good for p/e ratios. for eu ratios. -- for e ratios. >> western washington has to get its act together and have an environment that promotes business investment and private sector led growth. at is the objective for 2014. >> adding all this and perspective -- putting all this in perspective, what does it mean for corporate america? >> we cannot run a deficit forever, we cannot have a massive combination forever -- massive accommodation for upper. myself.truggled with it at lower prices i thought there would be the corrections. now it is what could cause me to be afraid of the earnings. >> what matters most to business leaders and investors right now? >> one of the problems for investors in the last few years

was macro was mattering a lot. the fed, europe, china, all of these macro issues. macro is mattering less. that is one key point. the second is dispersion. in the range of possibilities look low, for instance. if it was at 30 times earning and sometimes 10, you would wonder if they were all this brutal. we have narrowed this version. it does that mean when you see an opportunity you have to make it bigger betty e our call to the year, where concentrated for here's where i depart from the blue chip economic forecast. i think the buddies are still too nervous to put buildings in place. >> looking at the data, changes in the air.

>> it feels like there is a sea change going on. we have this data coming in the way to the upside as we move into the new year. that is the momentum you want to see. coupled with that, we have a budget deal so we know we are not going to face another government shutdown. we are still debating when tapering will come but we are confident it will come in 2014. as the fed starts tapering we have more certainty around monetary policy. >> online television start up area oh says it is not worried about mounting court challenges from the big four television networks. we are going to hear from the ceo. and how you might be able to watch any show, anywhere. we will explain next. ♪

>> this is "lunch money" on bloomberg television.

i am adam johnson. aereo is facing challenges. bloomberg west anker emily chang asked the ceo about all of the legal hurdles he is facing right now. >> i think it is going to work itself out. so far we have been winning. i think time will tell. >> why are you so confident it will work out in your favor? >> for some basic simple reasons. the law is on our side and that has been shown four times now. we think the consumer sentiment is certainly on our side. --have tremendous sort tremendous support. it is common sense. consumers need this change. is so important to have competition and alternatives in the market.

>> if the supreme court hears , dobroadcaster's position you think that will affect your chances? alexia today we have filed a response to that, in which we urged the court to consider the cases well. from our perspective it is a waste will war -- a wasteful war. we are winning and they're trying to litigate this in every possible jurisdiction. we are a small company and we want to get on with the business of building our company. that is the status at the moment. >> this is just a worst-case scenario -- but if it is found that area oh is not illegal, ifld you start paying the -- eo is notnd that aero legal, would you start paying the broadcaster's? >> you can't optimize for two or three outcomes. >> you said that you need five to six -- 5000 to 6000

subscribers in any given region. you are in 10 reason -- 10 regions so do you need 50,000 people to be profitable? >> we are live in 11 markets now. hopefully we will be and 15 in the next few weeks. that should be in week 15 in the next few weeks. the growth has been amazing -- hopefully we will be in 15 in the next few weeks. everybody is just tremendous. >> how many paying subscribers do you have? or 2000.have 2200 -- >> we have 22,000 -- 2200.

i think it is a safe bet to say yes. also spoke with the mobile tv startup called nimble tv. all you need is a cable subscription and a wi-fi signal. >> it is a sling box and tivo put together i . >> you tested this your self. back in new cable york? >> absolutely. >> no pickups? >> absolutely not. one of the reasons we took a long time to test this out is to make sure this is actually a global service. it absolutely is something that works no matter where you are as long as you have a good internet connection. the cable subscription is between the consumer and tv providers. we do not have any costs associated with that.

we simply have our costs associated with the actual content available to you. we actually have to build our own cloud of from the rat -- from the ground up. to break even we would be profitable with less than 100,000 subscribers. consumers who have paid for their television to have a fair use right to be able to use it in their own terms. let consumerss to watch it anywhere and anytime without actually worrying about rice and legal issues. they have paid for it and they are legally pay subscribers. >> another emerging leader in the online and mobile video -- the company's ceo

explained his business model. >> we are helping all kinds of media companies. netflix has his own original and has been assuming service for many years. as digital audiences are amassing online, we are hoping to haveedia companies that same kind of technology at their disposal. the biggest thing that all these media businesses are beginning to acknowledge is the fact that data is power. they want to know as much as possible about their audiences. it really provides the industry's most robust analytic engine. as a result they're really using those insights, that information to be a will to make content decisions, to better monetize

and create advertising possibilities around that generally provide a personalized nation -- a personalization for every consumer out there. contentre consuming where they want, how they want, from the devices they prefer. it is really that proliferation screens and the content that is available across the screens. the media landscape is changing and how ad agencies are adapting. lust, one company can help you rent an athlete. we are showing you how to make that happen. before we had to break, you have to see this one. hisin's -- justin saved team last night with a 31 yard field goal. this was his fifth field goal of the night. that man deserves m.v.p..

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>> how would you like to hang out with a pro athlete, watch a game, get a few beers, use a star power to close a deal. if it is all possible thanks to a company -- it is all company things to a company called thuzio. >> the public and book professional athletes and sports figures and coaches for experiences. you can search over 1400 athletes from across the country. you can very easily see who's whatable in your area, they are good act, and how much

they charge. ranges $1400rice for an experience. >> what is a typical experience? >> one of the most popular items is a game watch. bookedcial advisor someone for a bar event. or homeat a bar watching football and 22 of the 25 showed up. the financial advisor close to this for the very next day. these events can create an atmosphere we can get your clients to spend time with you. >> is the resistance from some of these athletes ash is there resistance from some of these athletes to do these things? >> there was resistance when we first started the business about posting pricing. had to happen in order to have an upfront marketplace where consumers can have a really positive experience just like any other marketplace you go to, like

amazon or anywhere else. >> which athletes are most is the most often booked talent on our networks. tim hardaway down in miami as and ourroger clemens most popular player is mohammed wilkerson. >> are your clients business people? what's to prevent them from going directly to these athletes themselves and say, join us for an event and we will pay you a special appearance fee? >> that is very hard to do. most people have no idea where to start when booking an athlete. agents are focusing on contracts and big shoe deals. >> we have john starks -- after the fact the agents aren't around anymore. >> they cannot find them. team all day hunting

down these retired athletes. >> how do you find them? >> a lot of work, relationships. you even get into this line of work? >> i was with seamless. i background is in online marketplaces. i also happen to be a very big sports fan. when i was presented with the opportunity to join this company, it was a no-brainer. the collegiate ?hings a big draw >> absolutely. stars that are not known at the national level are the biggest hit on college campuses. i am a giants fan. ron to wisconsin people will go nuts. >> what is the strangest or weirdest events that you have gotten a request for? >> the strangest or weirdest event?

i don't know how strange this but that i think it is really cool. we had jr smith booked to attend a bar mitzvah. andttended and showed up the bar mitzvah was held on a basketball court creek he lifted the 13-year-old boy over his head and everybody was freaking out. we thought that wasn't really clear experience. it looks to over-the-top corporate customers are names you would recognize, yahoo! and pepsico. coming up, what consumers think and what they say -- doesn't matter. we will explain what he means. and matt went shopping using only bitcoin. ♪

minutes past the hour, which means bloomberg tv is on the markets. let's get you caught up on today's action. stocks are falling right now but we are on session lows. this follows yesterday's rally, all ahead of the meeting that concludes tomorrow. investors are weighing some data we had on inflation earlier this morning, showing that overall, inflation make us -- and they -- inflation was unchanged in the month of november. that is well below the fed's target rate. we saw action on the bond markets on back of the inflation data. jumpingsury yields after the cost of living was shown unchanged. one stock is moving this hour,

it is frontier communications. the deal includes at&t's land lines as well as the you first television and product data -- and broadcast customers. ♪

>> this is "lunch money" on bloomberg television. we are also streaming live on bloomberg.com, your tablet, and start phone to the video is the story. in germany angola merkel was sworn in for her third term as chancellor after building a coalition uniting the biggest party. among her first tasks, meeting with the leaders of the european union in rupp -- of the european union in brussels. the jackpot for tonight's hit 500ion lottery has -- has hit over 500 million

dollars. the price could approach the record of 666 million set last year. of -- of 660 demo -- $660 million set last year. the bits sell short. the property is a 56,000 square foot mansion just outside of chicago. it has a full-size basketball court and nine bedrooms. would you $1 million and it could be yours. roberts, onekevin largest advertising agencies in the world. how is the firm adapting? all scream-agers. screen-us -- we are all agers. who knows where it is going to go. i think it is going to be

intimate, social -- >> is it good for your industry? >> it is exciting. >> is it good and profitable to have the complexity of many screens versus the simplicity of abc, cbs, and abc. idea --ve in the age of of the idea. these are just opening up idea after idea. we agree -- we're seeing a great switch of power peter -- of power. the media no longer has the power. >> to get advertising, entertainment, journalism. people have the power. it is all around them. secret to con sent conductivity? rules, weere are no live in the age of i -- >> there

are no rules. we live in the age of ideas. it is ideas that drive action. >> kevin roberts, big fan of the late actor peter o'toole, whose passing, he says, signifies the end of an era. >> either o'toole, what a great live -- what a great guy? culturally inspirational to all of us, he was the greatest genius. i think a lot of worlds that we live in now is missing those kind of characters. >> we year and for that. >> of course we do. look at all the eulogies over mandel and so on. was advertising better in those days? >> it was a lot faster and sexier in those days. big or are wel do so compartmentalized? >> we live in a world of aunt-

and. it is not either or peter you are going to see fantastic tv shows. i am a complete addict to blacklist. house cards is amazing. you have these terrific investments, blockbusters are still coming out of hollywood, and you have all this youtube stuff. and then, not either or. what defines effective advertising? >> you start with the consumer, start with the industry. listen to them because what do consumers say or consumers saywhat or do is not that interesting. you have to be anthropologically close. say orot what consumers do that matters. the winners are going to be those people who figures out -- who figure out how you really are feeling.

figure out how you feel. >> you don't need intrusive ads, you don't need at that do anything -- that don't do any thing for you. you need as that inspire you to make you a tiny bit happier. how can we help give you more information? how can we help you get the montclair you can afford and how can we do it quickly? advertising is popular culture. >> see what goodies matt miller confiding in the hood with virtual currency.

>> or streaming live on bloomberg.com, your tablet, and smartphone. day seven of labor television's 12 days of bitcoin. matt miller has become an expert on all things bitcoin. how relevant is the -- is the virtual currency in the real world? he took his dog steve to hit the streets of europe. >> i have just made an appointment for steve to get a walk while we go to a grocery store in brooklyn and buy some food and drinks with bitcoin. we are here in fort greene, which is the heart of bitcoin merchants in new york city. there are five different places that take it coin. my shoppingo do all

for the week using bitcoin. i saw something that tom keene is going to absolutely love, cream ale. i am bringing this back for you. this takes pretty much every -- we decided to come here and check it out. >> here is the guy that runs the only bitcoin investment. he has raised $70 million. >> we found it is a pain to buy bitcoin. we decided to create an investment vehicle modeled after the tod.

is bitcoin and private. of like an etf? >> exactly. fidelity will accept bitcoin investments. risky investment. >> i always equipped to win early stage startup investment. you are either going to lose all your money -- you are probably going to lose all your money or have a fantastic return. >> can we think of bitcoin as itunes and all the spotify that came on top of that . is two things, there's the digital currency and the transaction protocol. i don't think there's any debate as to this transactional network, how big and disruptive it really is. bitcoin as a digital currency, that is where people are talking about ponzi schemes and bubbles. it remains to be seen. a i think bitcoin is going to

establish itself as a meaningful value. it will then ultimately become a currency and then it will be a global value transaction network that will take on western union, money grandma, and change the way we can think about money moves -- the way money moves around the system. it is such a unique foreign concept. it is mind blowing. >> you can do that on paypal. >> it doesn't really work across border. but they take big fees out of it. >> wouldn't someone need to have a bit wallets? send you $10 million for a few bit -- for a few pennies. the volatility is really the problem.

>> it is very early in this. bitcoin has to be a store of value. next year wall street is going to move in a very big way. we are going to see meaningful dollars come in and support the price of bitcoin. >> the winter limpets around the corner. we catch up with one athletes who has had a painful road getting there.

>> this is is lunch money on bloomberg television. athletes are gearing up for the 2014 winter olympics. he sliced open his leg in practice. >> i fell into the boards five months before the vancouver olympics and wound up putting six inches in my right blade right and by thigh. it went in, i bounced off the boards, pulled the blade out, looking at this meatloaf in my leg am a wondering what was going on. i cut myself all the way to my fever bone.

you can imagine being in top shape going to olympic trials and all of a sudden being taken out like that. i leave it up to my support system to bring me back. >> 60 stitches? >> 60. it was a shark bite. >> they are that he is back and ready for sochi. --i'm small compared to, compared to some of my competitors. i get tossed around. >> give us the comparison. how tall are you? >> 5'8", 140 pounds. 6'2",f my competitors are getting up there. the looking at them on line. >> you don't let them push you around? >> no. toetimes it does play it

vantage but i try to be faster than them. >> what is it like to whip around that track? per hour,0 miles straight at a 180 degree radius. you have to somehow managed to i cannot theater explain the feeling. how do i do that? you are going to be competing. 2014, what did you learn from vancouver that you can apply to so she -- to sochi? >> i was a young teenager looking to have a good time, get some experience under my belt. now i can really go into this game with a clear vision of what i am going there to accomplish and put all the years i have put

into training and practicing onto the ice and hopefully win some gold memo that some gold medals paid >> was the financial pressure? >> it is tremendous. liberty mutual is stepping in to help me fund my goals and my dreams. when you fix our coming up, the sponsors kind of reach out. >> what goes into marketing and limbic athletes? here is his agent. >> we think is going to do a terrific job. you are completely right. his story translates regardless of what happens on the ice. >> so the sponsors he has been a committed to him are? >> he has a number of them. you will see that we try to

craft a family-friendly environment. wheaties, smuckers, nike, we are in some financial and risk management. you want to hug the guy, not necessarily escape behind them. the challenge is to make them relevant for the next two weeks. there is such an intertwined mess of official sponsors, individual opportunities, especially the russian government may or may not make it easier for you. >> it is not easy. we understand what they need to do to get the most value to their sponsors. are dealing with usoc sponsors -- it is important for us to activate through the them -- through the olympic street how do we create compelling storylines, how do we reach his demographic and our sponsor's telegraphic before we get into

that dark. -- that dark period? >> you make him or her relevant during the olympics and then how do you perpetuate that relevancy have these athletes that are there regularly. how do you keep that man and others relevant five years out? >> it is not easy. done a phenomenal job is to athletes we have been representing for 20 years now are dan jansen and bonnie blair. we put the three of them together and have -- been and bomb me -- been and bonnie were good enough to provide advice. had weeks to next career off the ice? >> from lobster telephones to david bowie, guitars.

>> is 56 past the hour, which means bloomberg tv is on the markets. let's get you caught up on the markets. stocks are falling right now. investors aren't adjusting the inflation data we got up this morning, showing inflation was unchanged in the month of november to the month prior.

stocks are lower after yesterday's rally. we did see more per reaction to the inflation data in the bond market. we saw the yield stephen between the five and 30 year treasury. a bigger reaction in the 30 year bond notes and some of the shorter-term majority -- maturities. smartphone maker struggling for survival after losing appleshare to apple and samsung and we put that up against blockbuster, another company that once dominated the market but then lost out to disruptive competitors. look at the similarities there. i am joined by hugo miller in toronto. the stock charts look similar, obviously the businesses are very different. using blackberry will follow the rest of the path or can they turn things around? people thinklot of so and since the appointment of a new ceo just a month ago, it

continues to fall. i think pretty much dumped the stock and walked away. there is a difference in that blackberry does have a kind of bricks and mortar commitment in terms of physically producing hard -- reducing smartphones. they are not as committed as blockbuster was to hundreds of thousands of leases, ricks and mortar facilities that made it very hard for blockbuster to make that nimble shift online. the question is, does he still produced these handsets that no one seems to want to buy and they lose money on or does he just shut it down and get it the software company. >> do you think they should jettison the brick and mortar business? >> that is what the a la -- what

the analysts are saying. the indication since taken over in recent weeks is the blackberry handset is here to stay. essentially what he is doing is he has to reassert -- reassure they are stillks reliant on blackberries. if you are going to try to get this new operating system that they have more widely entrenched in the world, you do need a device as a loss leader. to need a presentation tool show how great blackberry 10 is. >> blackberry shares are down 48%. the stock is trading and its lowest level. there does seem to be sentiment in the market.

blackberry is beginning to change. they have raised their rating on blackberry to market performance. they raised their 12 month target. if the sentiment starting to shift? >> i think what people are trading on is grasping some kind of optimism that john thain -- john chen is going to throw them some kind of a bone on friday. there are some? people have. is he going to announce some kind of surprise given that he has a reputation for being this turnaround expert that he developed. the question that there is $1 billion that blackberry is trying to negotiate with the and -- with the canadian government. a couple of? 's that if answered in a positive way on friday it would be more for people to say this gives them more ammo to last another six months to a year.

>> amazing to hear about it. a company grasping at straws ♪