>> live from bloomberg headquarters in new york, this is "market makers." >> housing health. the lasting economic data point of the year is out. breaking news on home sales. out of prison. the jailed russian oil tycoon still enjoying his first days of freedom in over 10 years. he speaks to us about the worst part of prison. breakdown -- the singer's

personal life looked like a train right -- wreck this year. i am stephanie ruhle. it is christmas eve. i would like to say that the breaking news is that it is my birthday. the real breaking news is the november home sales report. michael mckee is in the newsroom with the headline. what is the real deal here? >> it would be a lot easier to talk about your birthday. >> i agree. >> we beat expectations and still declined 2.1%. the prior month was revised higher. sales are up to 464,000. 10,000crease makes for a

decrease on a month-to-month basis. you want to look at the annual sales rate. 464,000 is still better than we have seen for quite some time. the overall numbers improving and we are seeing a decline in the number of homes out there for sale. we are starting to see inventories get tight and that should incentivize builders to build home next year and that is good for jobs. even though we are down by 2.1% it is good news. the richmond fed manufacturing index comes in a 13%. we are still seeing a pickup for manufacturing. the economy does seem to be picking up momentum. everybody out there is buying homes, increasing production lines just because it is your birthday. >> and filling their homes with new appliances and other home gear. stay with us, michael. ofant to bring in the head

economics at renaissance macro. is this a sign we are now in a true recovery? nobody is afraid of taper. the data is good. should we be caring? >> i would like to hope so. after going through four years of basically modest economic growth, now we seem to be breaking out to the upside. if you look at the third quarter gdp number, it was revised up above 4%. the current quarter is tracking above three percent. i think all indications are is that 2014 was going to be a good year for the u.s. economy. i think the onus is really on the bears right now. >> how. ? to lose their case? >> i don't think they have one, quite frankly. >> hold on a second. you are saying there is no rational bear case out there. >> absolutely.

unless something comes in and blows up the entire planet. next year will be the best year we have seen in years. >> really? >> i want to ask a fragile that forecast is. the weekly retail sales reports for december weren't as good as in november. if we got a weak sales report for the holiday season or for the month of december, could that then undermine the confidence that seems to be building? >> well, i mean, that will just be noise. yes, but economists, the average person on the street they will say, nothing has changed. >> the average person does not look at retail sales data. what is important is the trend. the economy is generating roughly 190,000 jobs on average. if you had told someone that in january, you would have been laughed out of the room.

consumer confidence is up. nominal gdp is likely to accelerate in 2014 coupled with some improvement in productivity. that will be a healthy backdrop for corporate earnings. our job is to link with a call is on the economy to the markets. i am not here to make social justice about whether the growth is good enough to satisfy some people. it will be good enough for equity market investors. >> ok. there have to be some headwinds. if you are an equity market investor, confidence is relatively thin. what should they have their eye on? reason to be not a a bear, maybe it is a reason to buy. >> because i am so optimistic, how is get asked what i am wore it about. i am worried about the data we got this morning -- the core capital data. if capital spending does not pick up, you will get a real hit to productivity sometime late

next year and that will be a big threat to corporate profitability. -- that isd about not my base case. >> what do you think is holding back capital spending? political uncertainty? >> i think that might be part of it. i think it is just general economic weakness. improving, sore you would expect capital spending to pick up. >> does it seem that corporate ceos are taking less action because they are afraid of shareholder reaction? activist investors? afraid of their board? >> i think they are doing a disservice to their shareholders that they are not investing. the profits are growing. the fact that profits arising is a signal for future investment. >> if you are investing, you are going to hit the bottom line. that cash that would go to shareholders is going to go out the door. how do you reconcile that in an

economy, in an earnings environment where everybody looks quarter to quarter? probably see some moderation and margins. with the equity market is going to care about is profits. you tend to see margins peak and even when they go down, the stock market continues to rise because revenues are going up, total profits arising. that is ultimately what is going to matter. >> thank you so much. michael, great conversation. we should all be happy. time to be bullish. time to be long. michael mckee, our own economics editor. even though you are super bullish, you don't get fired up. i like that. turn to theor us to newsfeed. the top business stories. big discounts did not do much to bring in the crowds last week. according to a shoppertrak founder, stores visits plunged 21% in the week that ended last saturday.

retail sales fell 3%. kkr has raised $1.5 billion for its first real estate fund. it will spend most of the money here in north america. they think there is great opportunity. this fund could invest in companies with sizable real estate holdings. thousands of people in eastern canada -- they have a blacked out christmas. 250 thousand homes and businesses are still dark after a weekend ice storm that toppled powerand brought down lines. many of them are in toronto. erik schatzker's family is among the powerless. luckily, he knows how to build a fire. if you didn't know it already, he was a boy scout. rob ford said there is no way the repairs will be done by tomorrow. he said things are improving. hopefully santa can find his way. erik claims he is from canada. fromorld's biggest manager

alternative assets has surpassed its ipo price for the first time since 2007. the rally ends a six and a half year doubt. blackstone does pretty well. to lee hyman joins me. so much for people not buying into the private equity model. l boom. >> blackstone was definitely guilty of black -- bad timing. people who try to buy into what they thought would be a private equity boom at the time were sorely disappointed once the financial crisis hit. now we have climbed all the way back from those levels as stocks overall have risen this year. blackstone has,. -- gone up. it does reflect the comeback of private equity and the comeback in almost all of the stock related assets that we have been wanting. >> are analysts saying that

making a private equity investment taking -- makes more sense than a jpmorgan? >> you also don't have the regulatory overhang right now with a private equity firm like blackstone that you have with them were challenged jpmorgan. blackstone also has these assets that it has been rolling out this year. the latest is la quinta. that is their midscale hotel chain that they will be bringing public. they made the disclosure public. makes less than $1 billion in revenue. they don't have to give many details. we know it will be coming -- becoming public soon. extended stay, as well. those were the other big ipo's. both of the stocks are up.

h stocks generally have been doing really well this year. bloomberg has an index that tracks hotel stocks. blackstone's timing with these ipos looks a little better than its own. it is still trying to ride that wave. >> what is our biggest take away? betting big onre real estate. the fact that they are rolling out la quinta -- are they selling out of it or do they want to take these companies public? in hilton's case they did not sell out of their share. >> looking for, we do not know. quinta, we do not know. we will. at some point, you have to get some of these properties off their balance sheet and start to monetize them somehow. >> the boys at blackstone. julie hyman, thanks for the latest on blackstone. now we have to talk about another man who was once known for his billions.

the russian former oil tycoon talks about his 10 years in prison. he said them with bloomberg for an interview. this is "market makers." streaming on your phone, tablet, bloomberg.com, and now ♪ you can watch us on apple tv. ♪

>> welcome back to market makers. mikhail khodorkovsky was once one of the powerful men in russia. putin afoul of vladimir and then the next 10 years in prison on what many consider to be trumped up charges. putin pardoned him.

he gave out a small number of wasrviews and bloomberg one of the lucky few to make the cut. describe your single most difficult day in prison. i had around 4000 difficult days. to say which was the most difficult is pretty tough. they the most difficult was when i thought starting to .estroy the company or maybe the most difficult day was when i learned the company's legal counsel had died. wasaybe the toughest day when i got a knife in the face. >> stabbed with a knife. >> it is difficult to choose.

>> what was the most difficult thing about prison? >> the most unpleasant part of prison was the feeling of wasting time completely. food, clothes, a closed space. that stuff you can get used to if you have self-discipline. i spent all of those years in prison on so-called double surveillance. >> in a prison within a prison? >> yes, and even a third prison within that. the first level is where you are a prisoner like everybody else. the second level is when the right camera trained on your workstation, bed, table.

the third level of security, just to give you an example, are when there are at least four other prisoners reporting back to the authorities on your every move. because president putin was personally interested in how you were treated? >> of course. >> how -- what would you like for christmas? >> i really hope i will get the president i have waited for tomorrow when i have my wife. >> thank you for that interview. extraordinary when you listen to some of his most difficult days in prison. i thought it was interesting day when thethe chief legal counsel died -- i wonder if he meant when he was killed. one more thing you should hate about travel -- airline baggage

fees. we will show you the airlines that are making a killing. we will have that next right here on "market makers." if you missed those interviews or you want to catch the rest coming you can watch us on bloomberg apple tv. a brand-new experience featuring live streaming and on-demand videos. stay with us. ♪

>> you are looking at the bloomberg world headquarters christmas tree. it is the season. this season to be packed like sardines and paying higher fares to fly across the country. are a boon tos

airlines top and bottom lines. off thect in today's charts. scarlet, i can't stand it that people now have to pay to check their bags. everyone is jamming giant bags on the plane. i don't know why no one is checking them. even get the teenage mutant ninja turtles backpacks into the overhead compartment because people have giant north face backpacks that they're going to trek across europe with. is all because airlines are charging you to check in luggage. all of the ancillary fees -- easy money for the airline's bottom line. it translates into net income for an airline industry that has been beleaguered over the years. consolidation has gone a long way toward that. overall, the industry collected 2.6 billion dollars in baggage fees in the first second and third quarters of this year. the airlines that led the way --

delta air lines. with $471second million. airlines -- discount you tor -- they charge bring in a carry-on bag. >> are we the trumps -- chumps? we are interested in the cheapest flight. do we forget the fact that we are paying upwards of $50 to check a bag? we have to pay for a blanket, a pillow. it shouldn't we just want to pay $50 or $75 to it a better experience? >> when it comes down to it, people like to pay for the service they are going to use. if you don't want to pay for that food, you don't have to. sweaty cheese sandwich, potato chips -- whatever the issue --

people want to pay for the service they use. even though it is annoying, people would rather pay for what they use than rather what they don't use. if you were to shift a human from new york to california overnight, that was cost you about $1500. you could get a deal on some should be happy with how low the fares are over well. >> mobsters come are you watching? check a human body across the united states -- >> human body sized box. >> sorry i misunderstood. >> thank you for putting together the charts for us. @iheartcharts. i.leave it to scarlet and we can't seem to give you credit. we are now approaching 26 minutes past the hour. get ready for bloomberg to take

you on the markets. i want to look at the s&p 500 and dow. they are at all time highs. a gift to my birthday. a green across the board. let's look at one individual company. >> tesla. shares jumping more than 6.5% after seeing the five-star safety rating for the model s sedan has been reaffirmed. people could not stop watching those fires on the internet. following the last economic data, homebuilders are rising after new home sales exceeded expectations in the month of november. a couple of individual names. all of them are up at least 1.5% -- d.r. horton and kb home. clearly a very big positive. >> all 11 homebuilders in the s and p are higher.

you have every single one of them gaining. there is a durable goods report that came in better than expected for the month of october. -- november. >> long or wrong. we will be back talking netflix versus hbo when we come back. ♪

>> live from bloomberg headquarters, this is "market makers." with erik schatzker and stephanie roll. >> welcome back. when big media theme has been the rapid growth of netflix which started creating its own, very popular original programming and now is the biggest pay-tv service and the country. bingecentered around a viewing model. now, your kids can do the same. scarlet fu is back with me. when i think binge, i don't want my kids associated with that word. >> they are not going to allow

your kids to binge watch an entire season. they're releasing their own kids programming. it is called "turbo fast." you can get five episodes at once. episodes atall five once during the holiday season. or maybe dad needs to make dinner and mom needs to go out and run errands. >> mom a need a break for that matter. >> are they partnering for dreamworks or making it themselves? >> partnering. this is the whole idea of netflix creating its own content. this is all in service of making sure that you don't give up on your monthly subscription fee. the e will continue to fork over that eight dollars per month. >> how big is the kids market?

could the kids market be just as big? >> when i think about who watches tv and my house, it is kids away more than a disney. half of netflix's customers are households with children according to an estimate. this is really interesting. a lot of other competitors are looking at the kids market as well. it netflix needs to customize programming for them. content may be the mechanism by which netflix can eventually raise prices. the rain not -- may not raise your monthly fee, but since you have a kid, maybe they have a kids package. >> a kids dvd is $22. it sounds like a pretty good deal. >> this is one possibility. it is an area that is ripe for competition.

amazon has a prime instant video. they put together pilots for six kids tv shows. they have not picked which one they have -- they are going to pick. pares its prime service with its video service. if they were to decouple it and charge it a different fee, at that point, a lot of people might switch from netflix to amazon. watch out for amazon. >> watch over jeff bezos. thank you for the latest on the big media story. in the race for u.s. subscribers, the u.s. has taken the lead over hbo. hbo letse maybe that go of the expensive cable subscriptions. we asked a legal media analyst what he thought on the subject. take a look. >> the reason that the media act a system -- ecosystem has worked so well is that all of the

digital opportunities have been incremental and they have not cannibalized any of the core opportunities. the key is what hbo is trying to do. i think they are trying to get the core. the 25-year-old who thinks we are using dial-up modems. >> bunny ears on my tv. >> maybe she doesn't have a cable subscription. i think she will get one. for now, there are a subset of people who are cord-nevers. if we can get them to be hbo subscribers without turning off it is a really, great opportunity. >> but that is asking of them to for some presumably, basic cable subscription with hbo attached than they would

have to pay if it were just hbo. >> unfortunately come of that is true. hbo alone -- >> what would hbo alone cost? >> that is a great question. i don't really know that you could charge a whole lot more than you are charging today. >> $15 per month? >> i would think a little less than that. given the relative price point of netflix, you are probably going to be stuck somewhere in that range. the truth is, the cable companies use it to upsell the expanded digital products. >> hang on a second. let's just play a thought experiment. let's say you could them by hbo go for $10 per month -- basically the same as netflix. moretflix gives you a lot than hbo go does for that amount of money. far as new content goes,

you are getting more on hbo. >> how many hbo original series can you name? >> i am in love with "hello ladies." >there are not that many that ae current. "game of thrones" is probably the biggest one. >> my experiment is this, if time warner were to do that, would it be worth $20 billion? >> that is a great question. at the expense of the rest of the bundle him a it is not worth answering. if i could by hbo alone and it was so valuable and the entire universe decided to buy it as a replacement for netflix, then ultimately you would potentially turn off the cable subscription and there is too much to lose and the rest of the bundle. i am avoiding the question i little bit. >> the point othis is is that

time warner has clearly hitched its wagon to this horse called cable. without cable, these time warner robberies aren't worth that much. >> -- properties aren't worth that much. >> yes. >> they couldn't survive as over the top businesses on the run. >> you mean separately. >> yes. >> it is like a technology question ultimately. we will probably have a broadband delivered cable product ultimately. and you are really saying is that they do not survive without the bundle. that it would agree with. without the bundle, the whole business really gets disrupted. >> without the bundle, everything would be good. >> do you ever wonder about some of those networks that would only survive without the -- with the bundle?? >> i look at it all the time. nt i love my syndicated t and

"law and order those quote reruns -- "law and order" reruns. >> you know what people want to spend in an ideal world? about $40 per month for something like 20 channels. that is if you could do the chinese menu and do it all a car e yourself. a la cart $10 or $20 and another 150 channels, don't you think that on the margins -- why would you give that up for an al a la carte opportunity? channelsut it's 150 that a don't care about. >> you watch more than you think. you'd be amazed at how much you are watching. >> that was one of our favorite media men.

back, shed a tear. it is the grand finale of the 12 days of bitcoin. matt miller talks bitcoin. you are watching "market makers." ♪

i know many of us are .ejoicing there is one reason to shed a tear. today is the final day of -- 12erg's 12 stay of days of bitcoin.

a little bit of bitcoin is left. matt miller took to the streets of new york city and brought us back some christmas cheer. what did you do with those final bitcoins? a i actually have about quarter of a bitcoin left. >> tomorrow is christmas, your girlfriend's birthday. >do they take bitcoins at tiffany's? >> i prefer a red box to a blue box. >> cartier. >> what i did with some of the last coin is go down to this christmas tree place on the corner of james street and eighth. >> west village. >> west village. this family has been selling christmas trees for 26 years. check it out. i think we have video. you take bitcoin?

>> yes we do. >> why? >> this is the second year we've accepted bitcoin. >i have been an enthusiast since early 2010. >> let's see what you've got. >> this tree is a douglas for. ur. >> this big one is a showpiece? >> this is approximately 12 feet. >> while. >ow. this is the tree we have decided on. the 12 footer may be a pain to transport. got that. sending transaction. done-zo. >> now mines has received. >> he is a bit of a bitcoin

enthusiasts. he's been in it since 2010. i get that it is somewhat gimmicky. here you are. 12 days finished. what is the real take? >> my real take is that i have thought of it here as an asset in which to invest or as a way to spend money illegally. but it is really so much more than that. i have met so many people involved with bitcoin. i have talked to politicians. venture capitalists. i have also seen the charitable side of it. so many people use bitcoin to help the homeless, feeding them in d.c. with martha's table. so may people think of it as a way to set free humanity from thathains of central banks

just dbase all the currency that we are allowed to use. >> it is a political statement, a currency, an adventure. are those your takeaways? >> absolutely. you are so good at this. >> thank you. >> you can use that on "street smart." >> happy birthday. >> thank you. days of bitcoin. all of us learned a lot about the virtual currency. take you to our own matt miller. -- i have a real tree at home. i have a big tree at home. go big or go home. our own matt miller wrapping up the 12 days of bitcoin. when we come back, we will talk about something i am interested in. justin bieber. -- probablybad boy a strategy move.

who knows? ♪ >> we went from talking bitcoin

being out of this world, to talking outer space. tos astronaut is trying repair the cooling system at the international space station. all of the nonessential equipment has been turned off for two weeks because of this broken equipment. the two of these men are installing a broken pump. they are 260 miles above t likes to saycer that pandas are cool, this, this is very cool. now i have to talk about another cool subject -- cool in a

different way. this guy parties with strippers, fights with paparazzi, hits on fans, shows up late for his shows. no, i am not talking about erik schatzker. justin bieber releases a new album this week and a new movie. in a few short months, he is just going to turn a mere 20 years old. i want to look at the bieber with our entertainment guru. he founded smashing pumpkins and the white stripes and now he is member -- founder of the bounding firm -- branding firm offbeat. justin bieber has a bit of a disney brand. look at the year he just had. being disrespectful to fans, funny messages from the anne frank house, is he just acting out as a 19-year-old?

or is it a strategy? >> i think it is a combination. but i think more of it is being 19. teenagers are not worth hundreds of millions of dollars and surrounded by advisers. when i was 19 years old, only my oldest sister told me i was an 80 it. >> there are certain things that are universal about being a teenager. he is just doing it on a much bigger stage. i guarantee what he is going through is also part of how do you transition from being a teen phenom to a legitimate artist? >> is this miley cyrus model the only model to go with? >> i think the model really to go after is the justin timberlake model. he is the one that has made the transition. >> he just stopped worming his hair? hair?ming his >> that was one. he was able to become more

musically sophisticated. he grew with the audience. as he made his entrée into movies, he was very smart about which scripps he was in. -- scripts he was in. the facebook movie really justified him as a multimedia star. >> he also disappeared for a little while. without big social media is, do artists have that opportunity? justin bieber has millions of twitter followers. could he actually go quiet. could he be selective? >> absolutely. it is more difficult, but you have to disconnect. from facebook, from all the social media's from twitter, from instagram. look what beyoncé did. forll your we waited beyoncé's album. it dropped last thursday. she is on fire. >> absolutely. there was no big social media.

she was not on instagram all the time. she was doing small things to promote the tour. nothing them prepared for the release of the record. and she just dropped it. going back to bieber, you can disconnect, you can disappear for a while. it is difficult. you make the transition that he wants to make -- he is being a teenager. be question is is will he able to mature musically and artistically and with the audience follow him? >> i want to talk about bruno mars for a minute. many people thought that this was the year of for rail, beyoncé, god got -- gaga. why bruno mars? >> i wouldn't say he is the most important, but he is by far the most successful when you look at it as a whole. >> when i said justin timberlake on saturday night on saturday night live, he is the only true triple threat out there. >> bruno mars will be that triple threat.

he is still at the early part of his career. he sold a ton of singles. he sold a ton of albums. he was not just a single hit- based artist. the record lasted on the billboard charts for 9-10 months is unheard of in this day and age. incredibly successful tour and it worked in multiple genres. in the r&b genre, the pop chandra -- a kind of crossed all demographics as well. from the younger to the older. the critics loved him as well. theas able to maintain commercial success and have the critical acclaim. >> as he reached the level where you say he is a career artist and not just a popstar we will forget about? >> i think this record proved it. showed originality musically, as well as the way he paid homage to the police and bob marley. he did it in a really creative, meaningful way. based on the records he has done up to this point, you have to say that he will be a career artist.

>> who is the artist for 2014? >> a couple of things will be interesting. 2014?relevant in john,l records from elton paul mccartney -- a lot of these elder statesman. >> billy joel selling out all the way through august at madison square garden. >> he is doing incredible business. would his new record have any legs if he had a new record? i am curious to see about the u2 record. we will have to see if the whole electronic dance music has peaked or whether it continues to have legs. i think it has peaked. when i start to see new york socialite's or wives of investment bankers i know who are becoming djs -- >> becoming djs? >> that represents the top of a market. thank you so much. andy kershaw and. we will be back with more.

talking "the willful wall street." ♪ . .

>> live from bloomberg world headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> holiday winners and losers -- amazon is beating walmart when it comes to price and inventory. ps xbox has more fans than four. our retail survey says stay on top of the latest trends area and the real wolf of wall street -- as hollywood's version comes out, we will tell you but the real investor that scammed millions of dollars. and the most innovative in the nation -- we will talk about the

road to the top. welcome to "market makers." erik schatzker is in toronto , but he is blacked out he's with his family for christmas. now i'm going to take you to the newsfeed in the top business stories around the world. the holiday shopping season may be sputtering to a close. according to shoppertrak founder store traffic was down 21% and sales were down 3%. retailers have responded by slashing prices even more. shares of blackstone hit a six- year high, finally trading above its ipo price. this year and% just announced its la quinta hotel chain filed for an ipo. nasa astronauts are in the midst of a six and a half hour spacewalk, trying to fix a pump on the international space station used to keep instruments

aboard the station from overheating. are one of those last-minute sallies and left all your gift buying to the last minute, odds are you will be spending a lot of time in a aspping mall today, which olivia sterns found out is probably more expensive than going to amazon. amazon has been undercutting brick-and-mortar retailers right and left. if you are going to the stores, do you have to pay up? >> if you haven't done your shopping at the, you will have to pay up but you will find some deals. they have found for the past nine weeks, they lasted numbers on december 19, amazon.com's prices for the 100 top toys of 2013 or three percent lower on walmart. four percent lower on target. they are doing this because they

want to gain market share. item, yout a popular are not going to find the best price if you go into your local store. but amazon has cheaper rates than just going to walmart area >> but the majority of holiday shopping is still done in rick and mortar stores. i'm walking into a toys r us and seeing everything they have. >> brick and mortar stores have a big challenge. 's look at toys r us inventory, if you take the top stories out of stock, the numbers are huge. target, 66% out of stock. amazon has a huge advantage. why? because the amazon.com marketplace, have all these third-party sellers. the problem is with third-party sellers, prices are often higher.

>> how can they charge this low? is jeff bezos the real-life santa claus? >> this is their strategy. amazon has been investing millions of dollars building these huge warehouses and distribution centers trying to get merchandise as fast as possible to the customers and that's hurting their earnings. $17 order, amazon made billion in sales and reported a loss. >> but no one seems to care. we still think jeff bezos is the guy. >> toys are key. toys, half of toys are sold in the fourth quarter. that is how they leeward the shoppers and. go to buy something for your son and then you see a yoga mat. >> why would i get a yoga mat. erik schatzker gave me one for christmas. on theou for the latest

retail beat the day before christmas. america's consumers are doing their part, n retail sale are the same -- november retail sales were stronger than forecast, but there are questions about how long that lasted into this month. michael mckee has been looking at whether companies have been following consumers leads. --talked about this earlier if you don't have a shot of those yet, you need to get one. are we going to see corporate america spend money? >> that is the hope. maybe we are getting to the tipping point. companies did not want to spend money because they were waiting for consumers to spend money and justify the investment. consumers are starting to spend and we saw that. a couple of months of better than expected retail sales figures. we don't know about december. because ofo tell

price discounting, but if consumers are spending, maybe businesses are feeling more confident. durable good orders suggest that. aircraft and cars and defense spending, they are up 4.5%. continues, you will see a spill on a fact into 2014 which is good news for everybody. companies will hire and you get a virtuous circle going. >> we see a strong december. we look at foot traffic and if it's better than we expect, do we expect corporate america to finally start spending? >> that's the hope. there are some expiring tax provisions that may have pulled forward some business spending, but businesses have been sitting on so much cash that at some point you have to invest because your plant and equipment gets too old to be competitive. less outn is more or

of the away. >> are they really out-of-the- way? >> according to the analysts i've spoken to, yes. in an election year, you don't shut the government down. have obamacare to bash the democrats over the head with, so that is the calculation business is going to make. they have some certainty about where they will be at the end of the year and a gives them a reason to go ahead and spend. >> i'm not going to turn and look at another kind of shopping. last-minute health insurance shopping. those shoppers have a few minutes left to enroll. the obama administration pushed the deadline back to midnight tonight after a record number of to healthcare.gov. peter cook has the latest. first, thank you. peter complemented me on my holiday sweater, a gift from my

children. >> happy birthday, stephanie. that's a wonderful gift from your children. >> 13 hours to go and you can sign up here it is this part of a pr ploy? or is this a massive backlog and we will see a massive number in a few days? >> i think it's both things. they want to highlight that there's a lot of interest in the site. visitors is the latest number we got just a short time ago. they said 2 million people visited the site on monday. obviously, they want to highlight the interest and bump up those numbers in terms of enrollment. they have lagged behind, so this is important to get these people signed up. going toike people vote on election day who were in line at the time and even though the polls close, those people were technically allowed to vote. to sign upple try

yesterday that they are allowing it to go to midnight tonight. the question is whether or not these people are actually able to enroll. >> it seems like there's a detail every week or every month, what matters most at this point -- excuse me, deadline. >> details and the blinds, there are a lot of those involved here in this entire rollout. this deadline doesn't matter if you want to get coverage getting carenuary 1, say your help -- your health care was lapsing. details matter at least from the administration standpoint. march 31, that is when the open enrollment ends. at that point, the target had always been 7 million americans and they are well short of that at this point. the president said more than a million americans have signed up and have a long way to go. the interest is important but they have a long way to go to

get to the 7 million figure. figure that matters whether it's a total bus or -- totalt's on its way bus or whether it's on its way. >> there's a huge amount of pressure to get young people to sign-up. when will we know exactly who has signed? more as we head closer to the march 31 deadline. the mix is important. they expected older, sicker people to sign up first but they made a push toward the younger folks and the president himself even signed up in the last 48 hours. >> did he do it himself? >> he did not do it himself. he is busy playing golf in hawaii. but his staff signed him up. it is symbolic because the president doesn't need new coverage. symbolic of- it what? of course he's going to sign that. he called the thing obamacare. >> you make a good point but he

doesn't need the coverage and he's not going to use it. what they signed him up for a bronze plan, the highest priced plan. signed up just for himself just to show he could do it and according to the white house, it took about an hour. what does this mean for the insurance companies? december 24th, are these insurance companies staffed up to handle us today? >> they are not. for some of them, they were caught by surprise by this decision by the administration area some of them said they staffed up through the 23rd and we were giving christmas eve off. some of them had to find employees to stay in and handle the incoming demand but a lot of them knew it was going to be rocky from the start, so they have the staffing to get it done. for the insurance companies, it's a real challenge for them. every one of these deadline changes as a new twist to

confront as they try to make money off this in the end. >> there is an hour before lunch, that's how long it's going to take you to sign up. >> i hope you have time to do shopping you haven't done yet. >> peter, merry christmas. i will see you next year. stick around because when it comes to social media, we will be speaking to a social media expert. be joining me. you are watching bloomberg television, streaming on your phone, tablet and bloomberg.com and now on apple tv. ♪

alexa marketing brands on social media is one thing, but controlling the message is not that easy. a former employee tweeted a final tweak west week -- going

to africa, hope i don't get aids. just kidding, i'm white. so what on earth can companies learn about the double-edged sword of social media? i want to turn to gary v, the ceo of a zehner media and he's the author of a new book. when people think of you -- i've probably you on twitter and they think you can't get social media wrong. you put something out there and the world loves it. clearly that's not what happened here. anyone, you are not an individual. it reflects your entire company. go so drastically wrong? >> what went wrong is somebody said something ridiculously awful. i take a totally different spin on this. i see in everybody's worried about their company and employees doing the wrong thing, theirnybody really think

customers are going to stop working with them? absolutely not. justine has a problem. forget not your job, what about your legacy. this woman's children and great- grandchildren, this is her face to the world. i'm more worried about legacy than jobs. there's no big corporation that's going to lose a ton of business often employee saying something silly. let's call it what it is. there's a ton of ridiculous stuff being said every single day. haves are flawed, we just tools to show how flawed we really are. >> help us understand how to use social media correctly. you put yourself out there and give your opinion and there's a huge risk in doing that. >> i think intent matters area you could look back at the history of what she said and there's a lot of questionable comments to the years. i'm not scared to share my opinions because my intent is never wrong. i may make a mistake but intent

is the driving force. back to the title of the burke -- to the title of the book, give, give and ask. for ceos watching this right now, they are not giving enough to their audience. by my book, buy my stock, watch my show. hook,ll right hook, right right hook and we know a right hook is coming, you are going to duck. virtualsume you have a phd in social media. how did you get it? >> i story is unique in the fact that i'm an immigrant. i was born in russia, my dad had a liquor store and i learned what i learned in social media by working the floor of my dad's liquor store. all i ever do on social media or life or even right now, all i'm watching is people's behavior. how people walk around the store and what they reacted to. it's salesmanship and

psychology. abouttried to do is think how did people become like in real like -- in real life. >> then how do you figure out what is authentic and what is not? with a million followers, you get people tweeting the following me back, what do you think about the jets? how do you get your authentic voice out there? >> i think everything is real. i'm not worried about getting got. i'm not worried about loving time into people that have intent to only sell me something or use me to get to somebody else. i think there is enormous leverage in giving first. the biggest problem right now in society, let alone the brand some consulting for is that everybody wants things very quickly and are fearful of giving it without getting. the leverage of giving first is how i got my voice and why i have results.

i'm not worried if i give and don't get. entitlements,nate you create enormous leverage. >> when ge picks up the phone and says on going to call this russian kid who learned his skills walking the floor of a liquor store, what is that conversation and what do you do for a company like ge western mark >> in 2009, we started the company because brands were asking me why do you have all these followers and we are big global brands and we don't have anywhere close to it. had a couplesation of years in after we started working with pepsico. what we do for ge or any other we ask awork with is very simple question. it's fun to talk about here but its business. what do you want to accomplish? then we decide whether twitter or snap chat -- which platform

can we accomplish that on and was put out content that drives a business objective. >> i am on snapshot all the time. i look at it and say this is an youfor sex thing and disagree. >> that's what old white male media decided to label it. >> you just called me old white media -- happy birthday. is it ge? it is skewing young. i'm trying to court 16 to 25-year-olds, you need to be on snap chat. the reason it works is it grabs your attention. while you are looking at it, everybody is worried about impressions. how many people sought? i don't care. i care how many people cared to

see it and consumed it and then have the intent to act on it. have three customers in the a million dollars then 50 million customers paying zero. you have to hold down the button and see it and then it disappears, unlike facebook and twitter were the content may show up again. >> thank you so much. great to get your thoughts. congratulations and congratulations on your book. gary v, if you don't know him already. when we come back, a day before the movie opens, we hear from the real wolf of wall street. did hollywood get the scam right? we'll find out when we come back.

>> welcome back. venezuela has devalued its currency for foreign tourists i- 44%. is 11 to therate dollar compared to 6.3 for most other transactions. a lot of currency trading in venezuela is on the black market. times companies pay six in new devalued rate for dollars. a decade of currency controls in venezuela has made dollars hard to find. that is led to shortages in everything from tires to beef. that's today's latin america report. and the aftermath of a scam. what really happened at the firm portrayed in "the wolf of wall street?" we've got the real deal.

you are watching "market makers" on bloomberg tv, streaming on your phone, tablet and now on applet -- now on apple tv. ♪

is"the wolf of wall street" one of the most anticipated movies of this year and that martin course -- the margins were say see film hits theaters tomorrow. it stars leonardo to cap audio as the one-time financial a dog whose one-time rise and fall has become the stuff of legends thanks to his best selling book. jordan belford. he year i turned 26, i made $49 million which really just me off because it was three shy of a million a week.

wherever i went, i brought my insanity with me. >> in the movie, it's almost a blueprint of what to do and what not to do. when i was at the bottom and everyone was writing i was a terribly awful person. and when i was on the top, i wasn't as good as people were saying. >> greed, for lack of a or word is good. >> i never wanted to play a person like gordon gekko with his $2000 suit. he stood there and said greed is good and a lot of people brought that a lot of people bought into that notion of not really focusing on who gets hurt along the way. that's not true. i wasn't really focusing on the i'm not making anti-

money on the books or the movie. the only way i will is if everyone got hate back. until then, i don't want to make any money. as a broker or trader, you are not creating. you are trading off the ingenuity of other people. it's very easy to feel like there's nothing tangible attached and then you have an emptiness to the money you make and you try to attach value to money you're making. path ofe to stay on the creating value versus instant gratification. ?> so what really happened our next guest sure knows because he was hired to oversee the trustee handling the liquidation. he's a partner at kirkland ellis and joins us now. this is clearly an extraordinary story. how does this happen?

you don't see this at goldman sachs are jpmorgan. what was so unique about this firm and this character question mark >> it was agreed. did is they went out i got these young kids from long island who congregated in the trading room and said go sell. you have these young kids who went out and would tell stories to old people and fleece them of their iras and tell them stories right nowave to buy because warned buffett's going to buy. if you don't get in before he does, the stock is going to pop and you will make all us money. it was just greed and they were driving around at 22 years old with their porsches and having apartments in the city. >> where were the regulators? why is everybody 24 in driving a ferrari question are >> the regulators were there. they came in pretty early and put tapes in place. all of phone calls by the time

we got involved had been taped and that's how we found out and put the pieces together. and were still selling lying to sell and knew they were being taped. it was not a secret. >> they knew they were being taped. is there an argument to be made at these schools didn't realize what they were doing? >> i think they just got -- i think they just got caught up in them. the young kids and we were going to sell the stock and we're being told this is a stock we should be selling, so how do we do it? i don't think they were thinking we are hurting people. we took depositions of them and we say to these kids what were you thinking question mark what were they thinking? >> they wanted to be rich. they said we were just trying to sell. you don't need to tell the truth, you just need to sell it. we are not really hurting people. that's how they felt and they just got caught up in the excess . >>money, living the life

it was just all about the commissions. he had to know this party was going to end at some point or was he blinded by sex, drugs and rock 'n roll? >> i think what happens is people start off kind of small and say we're going to get into something and take a chance and step over the line and then they keep going. at some point, you can't turn back. i'm not sure if he thought he was going to get caught, i think he was caught up in the sex and drugs and rock 'n roll in living the high life. was a think about it, it very small community in long island. i know so many friends who grew up in that area and said my father worked there or my brother were there because they were all getting these jobs right out of school. caught upey just got in all of the greed. >> how do we know this isn't going to happen again? if you went to a nightclub in new york city tonight, who is

paying for these tables, it's traders on the street. >> you have lots of different types of companies. most rogue rich firms are on the up and up, trying to sell stocks, they are pushing and selling but they are selling real stocks. these were not real stocks. there was a stock that was supposed to be a great new company that would help obese children lose weight. was aned out there warehouse in new jersey with an exercise bike and it didn't mean anything. but they sold the stock and anded it up and let it go drop down to zero. >> how does this liquidation work? did you have any interaction with jordan? >> we did not. we deposed his partner twice and we had all the other brokers but we never saw jordan. i'm not sure where he was. maybe he was already in jail.

danny's story? were in it together. i think jordan was more flamboyant, but when danny walked in for the deposition, he was very tough. he would not talk to us. we were trying to get wings out of him and unfortunately, he was in jail and he was a totally different guy. >> was he a totally different guy or was he a totally caught guy? >> caught and it probably caught up with him. he probably realized what he did and he would from a guy who was flying high to a guy who is as low as he can be. you have to look into the mirror at some point. >> when the firm shattered, how did the liquidation work? >> a couple of things happened. we had to put the story together, so he listens to the tapes? >> how exciting was listening to the tapes?

>> we found out the customers were lying to your aid they would file claims and say we told him to sell the stock on this day. they didn't sell it and we should have a claim. we would go back to the tapes that not only did they say don't sell it, they said by more. you heard all of these tapes, people on both sides lie. so we put the whole story together and tried to track down the money and it's not easy to track down the money when it's going all over the world. then it was a matter of how do we get these customers back something? we did the best we could but there was not that much there. >> clearly it was a story good enough to be made into a movie. he's a partner at kirkland ellis and also a new dad. when the we come back, the state that has innovation in its dna. bloomberg ranks it as the most innovative in the nation. and we will speak with the governor of washington. ♪

>> welcome back. i'm stephanie ruhle. what's the most innovative state in the country? it's not california. a new study shows washington state wins the top spot. we have more now on why the with the state governor. valley in the silicon california. what did you do to win this top spot? >> i'm not sure it's what i have done, it's what the state has done and thanks to bloomberg for recognizing the washington story. you've turned up a hidden gem, which is washington. a sickly, innovation is our stock and trade in washington. we invent, we create, we build. it's in our dna, but it's also in our water. combination, ae

fusion of culture and state practices and talent. i think the fusion of those they have allowed us to create this incredible success story on so many platforms. we've done this with clean energy, life sciences, gaming, the gaming industry today has surpassed hollywood in gross revenues grade valve and a bunch of gaming companies are creating whole new industries trade it's an exciting estate at its part of our culture. >> what kind of policies are fostering this? you got microsoft, amazon -- from a legislative standpoint, what does washington offer that other states don't? >> i think we do some things pretty well. we commercialize our research and development. we have some great research

institutions here and we've found a way to accelerate taking from the lab bench. we double with the rate of commercialization and we are inber three and the nation the rate of commercialization. we marry the public-private privateip -- public ardor ship. are developing biofuels for aviation. we believe we will be able to fly our airplane's on biofuels. washington state university is using genetic manipulation to develop i/o fuels to fly our developing biofuels to fly our jets. we have a clean tech center that we started with seed funding from the state of washington. scientist doing his

doctorate in physics is creating pattern onke a silicone cells to make a solar cell much more cheaply. we have a way to have a public- private ardor ship to make it work area -- public-private ardor ship to make it work. tax systemery good for entrepreneurs. we have the lowest income rate you could have, which is zero. it is certainly of interest to entrepreneurs and we have good incentives for energy companies, clean energy -- we are developing the most durable solar panel in the world. a little company called silicon energy, they are here because of our incentive package to incentivize these entrepreneurial companies. that has gone across the field. , we had the event first american drive an electric

car 100,000 miles, a commercially produced electric car. we've done that because we built a series of charging stations to incentivize people having electric cars. developed a soup to nuts policy to help consumers buy clean energy products, researchers develop those products in the lab, ways to help the entrepreneur get the leg up to start. we have a group called the energy angels -- it's not just date activity, it's entrepreneurs. we have a group of vc folks who help finance these clean energy companies. clear you are being proactive, but you also have to be very defensive. what are you doing about the fact that boeing is being lured away by other states? >> we are being very competitive. we understand we are in a competitive environment.

boeing has been a successful and it's the best place to build it today. but we have to compete for this jets. verytate is being aggressive and we passed a very robust but meaningful and common sense package of tax incentives so that we will be out front. you go further and offering more tax incentives and other states? will probably have an unmatched portfolio of incentives today. it is a good deal for the taxpayers because for that investment, we get about eight to three return to every dollar we put in these incentives. we have a great training program, we have permits ready to go, and we have greased those skids and we've got the infrastructure we need. we are going to be very competitive.

we like to win here in the state. things in yourer state. >> we invented the commercial airliner and the world's best software. we invented the four dollar cup of coffee. >> thank you so much. the governor of washington. we will be back with more "market makers." stay with us. ♪

>> that is going to be it for today's "market makers." and that's it for me for this year. has been a privilege and honor to sit next to erik schatzker. but he has been root placed by my all time favorite co-anchors. merry christmas. >> anything else?

>> happy birthday, stephanie ruhle. >> also to jim cheyne is. cheyne -- everyone out there, have a safe, happy holiday and thanks for watching.

>> it is 56 past the hour, which

means bloomberg television is on the markets. we are cracking down on the loop -- on derivatives because it's time for our options inside. trading,taking off of with its model s retaining its five-star rating. all lot of volatility as always around tesla. how are you playing this one question were >> if we look at the price action over the past couple of months, there have been two main factors putting pressure on the stock. one of them is his concern over the safety of the model s. they had this five-star safety rating which was the highest of any vehicle on the road. then we had those fires and the national traffic safety administration said they are reaffirming the five-star rating. not a lot of reason for the one.ts to be involved in this one. any good news is going to send this stock higher. in the last couple of days of the year, a lot of fund managers are going to want to buy tesla

at these lower levels. it did gap lower after their earnings report because they want to have this name on their books. the stock is up 350% this year and this is going to be one they want to have on their books when it comes time to report at the end of the year. i think the upside is the way i want to play this one. it's going to test back up where it got from and if we get a breakout from that level, it could pass its all-time highs. >> even know tesla is that more than 350% since the start of the year, you think they are in for a santa claus rally. walk me through the exact numbers. what is your options trade? >> i want to look at this with a little further out. with tesla being a high volatility stock of these options are generally looking expensive. so i want to play this through a call spread. 175 to 195ook at the

call spread. i can do this for around five dollars, risking $500 to make $1500 should the stock test above its old all-time highs. it's a great reward to risk set up here and a great time to be right. >> you think they could hit an all-time high but it's trading at a level of about 300. aren't you worried tesla could be overvalued? >> that was the argument for the shorts all your goal -- all year long and it never seemed to pan now. it trades more like a momentum stock. i think this sets up really well with the 321 reward to risk ratio. >> tell me more about why you chose the june horizon. why not trade around march and layout the earnings cycle? >> i want to capture the earnings cycle but i want to capture the overall trend.

the stock did not do well on the last time with earnings. i want some extra time to be right here and by using the call spread, i can buy the extra time rather cheaply. >> thank you very much. quick check at the broader markets right now. stocks are rising. the dow and s&p rising to new all-time record highs. the s&p up 28% since the start of the year. a 13asdaq trading near year high. we did get better than expected without the morning, durable goods orders rising more than expected for the month of november. we had stronger than expected data on home sales. we see both those reports laying into the treasury markets and yields taking up a bit. the yield on the 10 year note just below three percent mo when markets expected the fed to taper. since theasis points fed did decide to taper.

crude is rising now for the fourth day amid stronger economic reports with investors betting if the economy continues to improve, consumers will be in need of more and more fuel. we are on the markets again in 30 minutes. ♪

>> the santa claus rally israel. fors&p 500 continues, up the third day. up 28% for 2013. 59 minutes until the closing bell. in your first trade for thursday, markets are closed tomorrow and closing early today. >> i kind of don't feel like i am working. >> i