>> welcome to "lunch money" where we tie to go the best stories and interviews. i am adam johnson. global investors are positioning themselves for a tapering kind of new year. in luxury we are going to go shopping for a private jet. n company, nike outperforms, or it could just be clever marketing. the nfl black out rule, that may get blocked out itself. another sign that the u.s. economy is picking up steam. g.d.p. this morning we found out expanding in the third quarter at a faster rate than

estimated. we saw consumers increased spending on health care. the backdrop, the federal reserve is beginning to taper its stimulus program, and ben bernanke is getting some of the credit for the recovery. >> i think ben bernanke has done an outstanding job. he came in at a time of uncertainty and used the monetary policy to great effect. you are seeing another great example of his leadership. i think there is clear transition to the next fed chair. he has made it clear that that policy is going to continue. >> a very data-driven policy. if the labor market continues to improve and g.d.p. growth is strob, the fed will continue to taper. the important thing evans learned is we are going to get a continuity of policy, a new leader of the fed who will continue to be data driven and thoughtful.

>> of course the fed will always have critics. >> if the fed would only buy into the proposition that capitalism is a human organization, i would give the fed two cheers. our central pang materializes our central bank materializes $80 pl that didn't exist until .t tapped into its computer it will continue making new dallas at the right of $7 pl a month, which is an crun heard of feat of magic. i ahn to be a forceful supporter of this unfortunately social contrive ands called the price system. nobody invented it. it is the great servant of all of us. free prices coordinate all human effort. they make the store shelves

full. holely crun coordinated scrobs of orange mesh into a we call the economy. the fed is in the pistons of speaker posing itself it consumers and suppliers and prices. it is in the pistons of price control. we don't call it that. >> what about the fed's influence on stocks next year? >> we actually don't think that the result in terms of the stock price appreciation is due to the fed alone. kryza money was part of it. if you take a look at earnings today compared to what they were in 2007,er still not pack to the price earning ribiero cordero precrisis. we are pricing stocks significantly less than they were at that time. so we think there is considerable up side, like 8% to 10% in terms of equities next career. >> there is debate on what the fed is doing. are they walking the aucoin or giving lip service? >> the nouns crment effect. people say the fed is actually tightening. i think they are not really

tightening very much. it is actually a very limited effect pause a the fed -- pause what the fed is doing is tentative, and they are offsetting ith other policy the like lower separates. the other things that affect central pangs globally, and it is true in crurp as well about is the risk of disinflation turning into deflation. ith the fed committed to orange gainst it, it provides impetus. >> they have-point so much credibility in the dovishness, even if they reduce stimulus and reach cruising altitude, even if they do that, the separates i will stay long and that is a credible chance they will.

this forward guide ands which they have spends offside looks to have atkinsonned market the. -- that's a oint pit of a arning shot. everybody has.able to ajust to it. they keep rates low, and markets look more at that than that short-term impact from the tapering. >> speaking of emerging markets. a the fed says not only impacts the u.s. but the entire orlando. >> on of the things that we learn over and over again when we experience periods of market crisis is people forget. there is so much focus on tapering and the forward guide ands and feeling relieved and stocks being kind of the only game in town, you stop auching the other things. the emerging markets from the summer was a pig deal and there is still a lot of risk there. everybody believes the market is going to go up, so it does. >> a self--fulfilling prophecy?

>> definitely. but we should be worried the strength of the consensus. hen it is prone, that is when markets get caught off guard. >> growth is picking up. crun employment is dropping. housing is recovering. >> the housing market recovery is coming kicker. er seeing a clear demand in the market. we are up to a million housing starts. we were under producing housing for a long time. 400,000 starts a couple of years ago. er starting to see a pig change. >> happy, happy, happy, but seriously, what is the next depren aid we all should be prepared for? >> oith the framework of the next i.e.d., clearly a confrontation over the debt ceiling, which is fundamental for the long-term kraut look for stocks. there is no margin of safety in the market.

>> does con depress under we are not sapphirely out of the woods credit? >> he gave american families and pitches the certainty they need to grow. of course there is a lot more to do. er heartened by headlines that predict a strong economy next career, but we understand just how fragile our economic recovery still is with millions of americans still out of orange. >> that is for sure. let's put this in perspective pause a deal is a deal is a deal is a deal, right? >> the fact that we got a budget done after many careers of not getting one done and the fact that it was bipartisan, you have to crawl-you can walk. the grand pargo an, which i have been a supporter of for a long time, that is a marathon. take what you can get. don't think what happened in the last couple of months politically. the republican party took a drubbing with the shut-down and the democrats took a hit with

the health care website. >> in other words, everyone has.hurt over the past six months? >> yes. look at what the speaker did standing up to the more impressive right-wing organizations. folks expect us to get something done and to find that compromise and that summer. >> president obama will be speaking today at 2:00 eastern. we'll have full coverage here on bloomberg television. what is the real value of an m.p.a. degree? we are going to hear from the dean of the n.y.u. school of pistons. do you have your list for santa yet? have you considered asking if a private jet? that is coming up later.

♪

>> they are is "lunch money" on bloomberg television. we are streaming live on

bloomberg.com, your tablet and smartphone. i am ad scrons. on education, he look at the m.p.a. is it really worth $100,000? of t it to the school business. >> i think it is important to remember we still have a tail of two economies. from the perspective of the university, the labor market is doing very well. college graduates, there ask a 3% unemployment rate. ur m.p.a.'s are well employed. >> under graduation tuition is $40,000 a year and m.b.a. is $50,000. >> that is a lot of money. >> philosophy majors, people who are critical thinkers, who under how to look toe world, see problems and use the tools of modern finance, economics and accounting to create value. we are seeing students roughly

27 years old looking to have a change in their careers. >> here is something else m.b.a. students have to learn, leadership. each school has its own strategy. >> the key to leadership is you have to show as well as tell people to lead. we believe that our students, when they come into our school, given the opportunity again to work with their classmates on real problems that real corporations and governments have. urbanization. we have something called the created by was paul roemer. >> i did not know he was there. >> we are working to help cities in the world to lay grids for further expansion. >> do they know who he is? who is paul roemer?

>> he is one of the leading growth theorists in the world. he changed the way we think about why economy grow. he has now turned his attention to one of the biggest problems/opportunities facing the world, which is rapid urbanization, particularly in the emerging world. >> is there any argument to be made that these m.b.a. students now have a bit too much arrogance? yes, they are keep particulars saying i don't know if i want to work for the man, i want to be the leader. back in my day i didn't ask do i want to work for the man. i said god, i hope he gives me a job. here is what we tell our students. have a 30,000 foot perspective the word, but be willing to roll up your slofse. >> i want to congratulate dragging rigor into the perhaps. >> they have great

opportunities, but how do they leave stern, get into the work stories and realize tenacity. >> n.y.u. is the definition of tenacity. we started off as a business school for the children of immigrant parents. that is in our d.n.a. >> tell us about the bars around n.y.u. is there enough of a social life around n.y.u.? >> there is no question there is enough to do outside of the classroom. rigor and relevance. >> end of december, this is when all the banks have first round interviews at n.y.u. do those students want to spend this summer at banks? >> a lot of our students do. there are big opportunities in the investment world. finance is not going anywhere. the key is finance and something else. >> there is a bank they want to work out most. if you had to say what are your students' number one pick? do they want to work at blackstone or goldman? >> they want to work at great firms. >> i want an answer. >> he is not going to do that.

he has his entourage going over there with a card going peter, don't answer that question. >> if you enjoy that, you can atch the full interview online . or go to our mark appel. didn't have a chance to watch the paris boat show. e take you there next. companies see profits soar after betting on higher end sneakers. ♪

>> this is "lunch money" onberg television, also streaming live. for luxury, the 53rd annual paris boat show was this week. we look at some of the trends that emerged. >> these are the botas of the 2013 paris boat show. it may be one of the world's biggest and oldest boat shows ash, but this year the exhibition is occupying less space, causing some to think demand is shrinking. but not everything is getting smaller. >> we are moving more towards comfort on board and greater maneuverability. botas are becoming bigger and bigger, but clients listen looking for big crews. >> what is or on us. the prestige 500 is 15 meters

long and cost more than $800,000. this one is 18 meters long, but the ostracize comes at extra cost, $1.8 million. it is not just what is on the outside that counts. tech is increasingly important. >> today we use ipad as to navigate. we can see charts, currents, weather reports for the next two hours. there are a lot of things that have come progressively and often from competitive sailing. >> with demand for motor botas and yachts growing in asia and the meester, while the show is taking up less space, the industry is still very point. >> maybe planes are more your thing. how about going private? >> who is using private aircraft these days? customers break down into four grooms. first you have your charter companies. you want to take the gang down to miami for a weekend.

if you have a spare $10,000 lying around, you have a plane. next up are prepaid plans, which are kind of like prepaid phone plans, but instead of etting 1,500 minutes of talk time for $30, you get 2 hours of plane time for $100,000. then you have fractional ownership. can you sell your share. the biggest option is owning your own plane. but buying a plane is only part of the deal. private aircraft are less like cars and more like horses. they need to be stabled. that is where companies like jet eva yation comes. it is eight months from newark airport, but it is world's apart. i am going to meet my pilot. the terminal building is nice, but nothing special, but you are not going to be spending a

lot of time in it. your aircraft is likely waiting right outside, and there is no t.s.a. line. if you wanted to charter a plane from jet aviation to take you to london, it would run you between $75,000 and $95,000. or that you get a pilot, a co-pilot and a flight attendant. thank you. you may be wondering how all of this feels. it feels amazing. i have to fly commercially next week and going from this to seat 34-f is going to be a huge let-down. >> that is incredibly expensive, but it looks fun. are you feeling a little less flush than that? you could always buy a blender. ♪

♪ ♪ >> for more on the good life and all things luxury, visit bloomberg.com slash luxury. we are going to hear from the former correia -- c.e.o. of the oakland raiders on the

possibility of banning the black out rule in the nfl. and another marketing strategy that is clever. as we go to break, our favorite japanese talking robot and the holiday spirit of the international space station. ♪ ♪ >> it is approaching 26 minutes after the mauer. that means bloomberg tv is on the markets. i am julie hyman.

we are nearly half way through the trading day and we are see another day of gains. that means we are setting up for the best week since july for the s&p 500 s&p 500. g.d.p. last quarter growing at 4.1%. that was the revised figure. that is pushing the s&p, the dow and the nasdaq higher. the nasdaq up better than 1%. two individual stocks to look at, oracle and responses. oracle agreed to buy the software maker for $28 a share. oracle expects to be able to close in the first half of next year. larry ellison has spent $50 billion to acquire about 100 companies over the past decade. also in software, let's take a look at red hat. those shares up 18% today after it raised its full year profit and sales forecast. so things are good in software land if you are looking at these particular stocks today.

we will have more on the markets in 30 minutes, and you'll get more "lunch money" next. ♪

>> this is "lunch money" on bloomberg television. we are streaming live onberg.com, your tablet and your smartphone. i am adam johnson. today's moving pictures where he video is the story. -- is a h is a freeman free man after being picarded by luke putkonen. 80 people were injured when part of the ceiling of the

apollo theater collapsed. the 112-year-old theater is in london's west end. dennis rom is holding try-outs in north korea. he is setting up an exhibition game between a north korean team and a group of former nba players. he said some of the former nba players are afraid to travel to the country, but he is trying to reasure them saying it's all love here. beg to uncle may differ. net income rose about 40% for nike. analysts cite anticipation of the upcoming lick picks and the world cup. nike has launched six new holiday themed sneakers in addition to sneakers by michael jordan, lebron james and kobe

bryant. the chief strategy officer of new york discussed this whole thing on in the loop. >> they make around 175 million pairs of shoes a year, but each one they create a sense of scarcity. they sort of prime the market o -- the consumer feels this is unique. it is not like the 80's where everyone wanted one shoe. it is about the weird shoe, the different shoe the >> i find this interesting about nike because they pay out millions of dollars in endorsements. it is not unusual for companies to do this, but why does it work so well with athletes, nike and companies like that? >> i think athletes are truly aspirational figures. they are so amazing because of what they do with their bodies, and they are becoming more cultural icons. nike does it better than anybody. what they have done with michael jordan and the shoe.

they have become sort of a symbiotic thing that happens. even when they make a misstep, they still have the athlete. they do it better than anybody. bringing in musicians like drake freshens it up. they do it better than anybody and they should continue to follow that strategy. >> one of my favorite business books ever was jt just do it." it talks about how nike works and the media message of nike is a very important part of their culture. is that unique among brands? >> it is unique because they continue to focus on this idea of pushing people and pushing to greatness. for nike, if you have a body, you are an athlete. even if they came out with a fuel ban, it was about points. my husband drives himself nuts

tracking his personal bio metrics. there is the methology of them getting rid of creatives who weren't creative enough. they have this focus on edge and pushing it and pursuing greatness that they have been consistent with. >> on that note about the amount of product that they are coming out with, i think they are coming out with six sneakers in the last 10 days of december. >> right. >> do they risk confusing their consumers, putting too much out there? >> yes. they are priming the secondary market. these aren't 12-year-old kids saving up. they need sneaker heads in russia to buy these shoes. as long as that demand is there, it is great. the question is if there is a point of diminishing returns. >> and can they keep raising prices on sneakers? >> yes. and leaving enough on the table for collectors to sell on the secondary market and prime the engine and keep it going.

>> nike has spent years solidifying its brand. here are some of the biggest milestones over the past 50 years. >> what makes you the best player in the universe? got to be the shoes. ♪ ♪ >> something you can buy. >> you cannot do this. can, can't. ♪ ♪

>> nike's latest shoe, the kobe nine athlete will cost you about $225. the company has a special christmas day edition of the shoe. but remember, kobe just got injured again. he is going to be out for another six weeks. the nfl black out rule may actually get blacked out. we are going to hear from the former c.e.o. of the oakland raiders. that is next. mining for bitcoin. it is very difficult, and you have to be smart if you want to see a profit. we will explain what all that means after the break. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet and smartphone. use sports, only one out of 224 nfl games has been blacked out this year. that game was on december 1 when the bengals played the chargers in san diego. u.s. regulators have proposed eliminating the rule that prevents cable and satellite broadcasters from telecasting events that are not sold out. the nfl says it will oppose that. the rule is about 40 years old

and meant to encourage fans to attend live events. while affecting very few games the past decade, the blackout rule is very important in nfl stadiums and the ability of nfl clubs to set tickets and keeping our games attractive as television programming with large crowds. >> it helps the pay tv guys. you have to be able to watch it through some kind of pay tv distributor. >> how does this help pay tv? the nfl has this big deal with directv for nfl sunday ticket where you can watch any game anywhere. >> they still get paid from the national broadcasters like cbs, or any other who picks it up. you as a cable or satellite subscriber, you are actually paying part of that toward the major broadcastors. they take that money and pay

the nfl or the mlb to pick up those sports. that is sort of the ecosystem that is trying to be preserved among the tv guys. you block out local games, it is the local broadcasters. if you don't pay for television, you put up a pair of rabbit ears and pick up the signal, those are the people who get hurt this, but it is a really small percentage of the tv viewing population who does it this way. >> the former c.e.o. of the raiders has an opinion. >> there are entirely different forces at work today than there were 10, 20, 30, 40 years ago. the in-house viewing experience is not simply in house anymore. it is on your mobile dice and i pads. it is an entirely different world. but if the goal of the rule is to get people -- if the goal of the rule is to bring people goting stadiums, i am for your consideration that there are manners to get people

into the stadium. >> when stations have a chance to broadcast the game, they should do so. this rule has got to go. >> they aren't left up to the individual teams. these are league-wide decisions. to the extend there is ever going to be a change, it has to be at the league level, not the individual club level. >> where do you see this going? this has been debated before. it sounds like you are saying this rule is going to go away at some point. >> i don't know that because there are a lot of complexities. it is whatever the f.c.c. my want to do and what agreements are in place. i think we need to wait and see how this plays out with this proposed rule. it is out for public comment. i am sure the public comment being what corey is saying and what i am articulating. in the mean time the emphasis needs to be let's not force fans to come to the stadium but

entice them. corey, your points about financing is very fair. >> here is something you may not realize. within five years of being rookies, three out of four players will be bankrupt. that is sad. who is actually looking out for player's finances? >> as an agent, you need to be that watchdog for them, watching their back at all times, preventing them from entering into bad transactions. we don't manage our client's money, but we make sure they are on the right financial course. >> it is a little bit different than other sports. jumping up to the national football league, i get another 24 months of a big paycheck. >> if you brand your client the way way off the field, you can leverage that and transition him into post career opportunities. >> peyton manning can do that. how do you brand the third line

left tackle? >> there are varying levels of branding and opportunities that you are going to have access to as an nfl player. but if you have a client who is a starter, the nfl career gives you a platform whether it is in finance or broadcasting. you can leverage that. two recent success stories, michael strahan and kurt warner. >> strahan is doing phenomenal. >> we saw i.p.o.'s and offer shares of future earnings. is that something you would recommend? with arian foster. he plays the most difficult position in terms of injuries. shortly after the i.p.o., what happens? he goes on injured reserve for the entire season. it is going to be difficult. >> coming up, mining for bitcoins. we are going to show you how these miners actually create

virtual currency. of s complicated but kind cool. that ising coup next. ♪

>> today is day 10 of bloomberg's 12 days of bitcoin. we are looking into bitcoin mining. this is the extremely complicated computational process behind enabling transactions. it is making some people extremely wealthy. >> it is really the key to so much of the bitcoin network and movement. you've got an open source currency here. all of the different people in

the network are responsible in some way for controlling the process, for verifying the transactions, for basically keeping the ledger in order. but you can't have everyone controlling the ledger at the same time. otherwise things would get crazy. so they have basically devised this lottery system that involving an incredibly complex problem you have to solve. the first person who solve it correctly gets to put the most recent page in the ledger and gets 25 bitcoins. >> yes. >> although that halves every four years. >> you do this computing task to solve this problem. it creates 25 bitcoins to the person who completes that task. then the next time that task is done, it is twice as hard to do it. >> it gets harder and harder.

we have a chart of the hash rate that has gone up. what this is basically telling you, it is in gigahertz per second, and we have reached about 10 million. so the difficulty has gotten to the point where you need to do 0 million gigahertz per second takeses.ahertz exe so 10 trillion computations per second. this is what robbie told me about how you calculate the value of bitcoin mining. >> the higher the performance your machine has, the higher the probability of you successfully validating that transaction. the why is build a very powerful machine in terms of performance that consumes the least power in terms of electricity. in the bitcoin world

performance minus electricity bill is your revenue. >> he is telling machines to individual mining. it has gotten so dutch, you need so much power to run niese giant computers to mine, some people think it has outweighed the benefit you get. >> it is electricity building it, and it is not even worth the value at that point? >> yes. today's mystery me. ever wonder how santa gets around so quickly? here you go. ♪

>> it is approaching 56 past the hour. that means bloomberg tv is on the markets. i am julie hyman. we do have a rally here tonight with better than estimated g.d.p. out. g.d.p. was revised higher last quarterback. the dow, nasdaq and s&p all

rallying. the nasdaq is heading for a winning week on the s&p, the best since july. airial pharmaceuticals said it can return its only drug to the market. before today's announcement, hares of ariad had fallen 70%. he largest seller of u.s. cars recorded profits that missed estimates. lenders are getting stricter with loans. getting your nicotine fix in new york just got harder. last night the city council voted to ban the use of e-cigarettes in public places. olivia stearns here with more on the potential impact of the ban on the industry. olivia has been all over this story from the beginning. what is the rationale? you are not breathing scanned

smoke? >> the city council is concerned that e-cigarettes are renormalizing smoking. they have worked to remove the tigma, and they think it has become socially acceptable again. at the don't want kids to go to a yankees game and see people smoking. they think it is a gateway to smoking regular tobacco cigarettes. a lot of them say it is ok to smoke again. >> some of the research or anecdotal evidence has shown that maybe take that -- maybe that helps you smoke less for example. it is early, but what are some of the studies showing? >> it is inconclusive proof. there have not been done enough done yet. one journal says it helps you quit, but there is not enough

out there. a former surgeon generally, on the board of one of the start-ups, so he has an interest in public health. he wrote a letter to the city council. he said i am extremely concerned this is a well intentioned but scientifically nsorted effort and could constitute a giant step backward. his father died of lung cancer, and he thinks that anything you do to abate the transition from regular smokers to smoking e-sick receipts is damaging to overall public health. >> have we seen any other ban? do this kind of a >> new york is the first city to ban it. other cities are looking at it. chicago had a vote to ban e-cigarettes, but it failed. states have put in place state-wide bans including utah

and new jersey. but it remains to be seen what ill happen at the fed -- federal level. i spoke to a lot of analysts. i spoke to jack russo. he says he doesn't feel like it is going to have a material impact. another said the whole appeal is you can smoke them where you can't smoke regular cigarettes. if that goes away, i feels it really will change the growth trajectory. we will have to see what the e.p.a. does. if they ban online sales, that would dent the industry. >> thank you, olivia. we will be on the markets again in 30 minutes. berg west is next. ♪

live from pier three in semper cisco, welcome to the early edition of "bloomberg west." emily chang in our focus is on, technology and the future of business. blackberry takes a page from apple and begins to outsource manufacturing of its phones to foxconn. the