, 400 miles from the sochi olympics. they start in six weeks. while christina will be dropping the ball in times square, she color of the numbers from her smartphone. good morning everyone who disses "bloomberg surveillance." i'm tom keene. is cristina alesci and scarlet fu. been and it is like i can see it. >> it is going to be very cold. and bourbon, don't forget the bourbon. time for the morning briefs, because it is time for that. >> i missed this so much. it is like a three-week vacation. tochina's local debt rose

,.95 chilean dollars underscoring financial risks in the world's second-biggest economy among the other risks that we are seeing in china. in the u k, home prices rose in december. they will lead gains in 2014 according to the track. here in the u.s., economic data at 10 a.m. ending home sales at 10: 30. france, thenote in constitutional council there gave the go-ahead yesterday on the government's millionaire tax. bad news for millionaires there. last for 2013 and 2014 and taxes salaries above one million euros at 75%. ouch. >> is a big number and they go after the football players, the

soccer players. it is a huge number. is not likely doom united states, but the answer is a mess. look at stocks on currencies and commodities. let's get through this quickly, boring but up is how i would put it. 1800.and p distant from finally we are back there, a real mystery where we will be 10 months for now. the euro has done nothing. oil has done nothing. american oil, 100.32. complacent 4.26. yan has been a story, weaker yen and stronger chinese -- blowing through zero 6.7.

strong in. you can see the hockey stick move here on abenomics and we finally get the weaker yen. that is a lot of different dynamics. good for toyota, honda, and you wonder if it is good for america. there is a chart to get our data going. page storyst front- has to do with russia. suicide bombings on a bus and train station killed at least 30 people within 24 hours. both happened in the southern city of volgograd. it is a few hundred miles southeast of sochi. the winter olympics will be held in six weeks. sunday, he blasted train station killed at least 16 people. we wonder how this is going to play out over the next couple of weeks. was stalingrad. those of us who are fossil like

remember this is where the russians held the front against nazis. there it is, that is a train station were looking at where the bombing actually happened. apparently, there was a metal inector that hot woman and this case before she entered the train station because of damage would have been worse had she actually entered. >> what is a response if there is a third bombing? will countries just not go? will they not send a delegation? >> extremist groups have artie said they will target the olympic games. >> six weeks until the games begin. of usa the front page today, 13 states are raising their minimum wage this week. it includes new york, new jersey, connecticut and rhode island. in fact, starting january first, 21 states and union will have a minimum wage that is higher than the federal requirement of

$7.25 per hour. >> is a $10 minimum wage at? we're not there yet are we? this will be the issue for democrats in 2014 and it is going to be difficult for the republicans to turn around and tell americans, sorry, we're not going to raise the minimum wage. we have a story out today on the terminal saying that 221, this country that no longer offers everyone an equal chance to get ahead. >> this inequality idea and the idea of where we sit emotionally as we go into an election year. >> there are stop growth, but it is usually in low-wage industry. our third front-page story come home prices are back in record territory. a couple of u.s. cities parking

concerned that prices could again be overvalued heard prices back to overtime highs in 10 of the nation's biggest metropolitan areas including oklahoma city, denver, san jose, nashville, dallas. nationally come prices are men below the highs of the past decade. highlights this aren't even nature of the u.s. recovery and shows that cities are seen some of the biggest gains were spared some of the biggest declines. san jose didn't really have a collapse of the housing market the way say las vegas did. >> yeah, housing will be, tom you are referring to this earlier, it will be a huge story next year. >> foundation story. any number of ways of getting credit available in the price changes. to get another double-digit -- known as calling for a double- >> home sales it is an november number and it comes out at 10 a.m.. those are front-page stories. >> is a front-page on a monday or monday/tuesday. a thinker of wednesday. is that a rumor, scarlett?

do i have to commend? -- do il be in here have to come in? i will be in here. michael, how unusual is an up 30% year? is a one out of 10 years or one of a lifetime? how unusual is that? unusual, butly what i see is even more unusual is the sharpe ratio. it is really striking. >> is all because of the central bank? a bernanke that is following you all the way up, that is clearly a big part of the story. let's not forget the corporations have done their part two, here. going forward there will absolutely be a yellen put.

we've had some tapering but whatever tools yellen may employ -- >> you have a target price of 2100. anticipating 2.75 by the end of the year? clicks yes. my big point about 2000 is the -- the rate at which are going is going to be drawn. the fundamentals are not keeping up. what is driving it is the asset reallocation. >> to things as we start the year. the jobs report comes late. what are we going to do? we have to go to can send a right now. did you not get the orange time,? tie memo?nge

both of you here, and these are big stores for the year, the , -- >> theet momentous year in december and ark restaurants friday. first you want to do companies in the meantime. ford widens its lead over toyota. the sales will top 2.4 million vehicles this year. about 400,000 units ahead of toyota at the start of the month. i win this year would be for its fourth straight as the number one brand in the u.s.. in a meantime blackstone is investing in crocks. crocs announcing that their ceo will retire in april.

the danish beer maker said that there. bid. >> it will make me very happy i am doing rosetta stone mandarin in january. >> i want you to perfect a german first before you work on mandarin. >> foreign languages, have all the respect in the world for the way you do it. it is just great >> we have a big show coming up on surveillance today. twitter shares surging and then retreat on friday. big scenes for twitter coming up. if you missed any of our interview you can watch them on bloomberg on apple tv. this is bloomberg surveillance.

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>> good morning, everyone. coming up on bloomberg street and on wall also on the tumultuous tenure he has had at commodities, futures trading commission. all that coming up at 10 a.m. this morning. the morning everyone, it is "bloomberg surveillance." cristina alesci decided to drop by on our way to times square. what is going to do yak are you going to change the color of the ball from your iphone? >> i guess they didn't get the memo. let me getn't

anywhere near the lighting because it is going to look like a house. >> the shares are down the puttert by to 62.50. shares fell eight percent on friday, following his analyst downgrade. before that, the stock at posted in almost 80% gain for the month. all of this with no significant change in twitters fundamentals or any specific news from the company. overome i know you have an weight rating on twitter. this is remarkable given that the company has not even announced quarterly results ever as a publicly traded company. some of the updates would be around video, also announcements they made with programmatic players in the ad text based. folks might be getting a little excited about the opportunity and maybe a little ahead of

itself in terms of the actual results, including geo-point earnings. as you look at what twitter represents and the support it has from the industry to actually deliver a more dynamic ad experience, the leverages real-time into the traditional experience, i do think there's a big opportunity there, it is hard to quantify at this point how much is actually reserved in the stock. >> isn't part of this the fact that there aren't many shares available for trading? .1 million shares available >> we just need to make sure we aren't jumping around too much of ratings and targets. we're trying to provide a picture as far as a real opportunity and what you should be looking for in twitter that you can't get elsewhere. i think as we are trying to break it down, twitter is unique in there is an immediacy in what you can do through twitter. if you're a brand or a network,

how you at ease twitter. twitter doesn't necessarily pose a threat to the way the other games do. they're not trying to be pure video provider. when you see folks uploading clips, theal second clips in nfl would be providing would be shorter nature. is to bring you back into the television experience. >> let's go back to volatility in shares. one thing a member from covering the ipo was that the company was very concerned about the long- term shareholder base. they wanted that long-term shareholder base because they didn't want to see this volatility in the stock. the trading that we have seen in the last couple of days, does it indicate that long-term shareholders just fold out? been some there has

speculation that at the year-end is a trade to be had. i think it is always dangerous. that might explain some of the runs the stock has had. i think isortant, that when these investors are looking at twitter, i would say for the most part the company and trying to appeal to that investor have tried to be very .onservative they only monetize one in every 300 time i use. every time someone checks are twitter feed. .ou have that extra lever there they wanted to put in your ads and they could. >> 2000 13, goodyear for social media and tech. to scarlet's point about a limited number of shares, as is a manipulated system? oil and gas company or chemical company in the midwest goes public, they go public. these companies are dripping out

a small number of shares. is this effervescence in your it manipulated, is it manufactured? >> it could be for a number of time, but i think we look at stocks like a go-go and there are a number of them this year, when the lockups did expire you saw the stocks take the hits. you can manipulate it for so long in terms of supply and demand, but ultimately the market is going to decide what it is worth. yeah, there is probably some long-termy for integration. >> was actually impact on the company on the business when they see the stock price move like it has in the last couple of days. >> i think we have to be concerned with the investor base and the employee base. you want to make sure that your incentive is coming on board.

package flathe lines for a number of years. the obvious he saw that with a lot of the speculation around google and how the stock sat there for a long. time. >> can sena. we have a lot to discuss in the next two days. we need to get ready for the twitter question along the same lines. how should the land of zuckerberg, how should facebook stay relevant? a lot of talk about the way forward for facebook. do you still have an interest in facebook? how should facebook stay relevant? >> everyone is looking at twitter as a next life form. how does facebook fit in their? >> apparently people's grandparents and parents use it. you fit right in. coming up the next hour of howomberg surveillance."

the nfl keeps is tv viewership sky high. that is coming up on "bloomberg surveillance." ♪

>> good morning, everyone. ten-year yields three percent and what a change is he going to 2014. i am tom keene. with scarlet fu and cristina alesci. we -- >> we start with a bomb exploding aboard a trolley bus in full go grad. it was the second bombing in the southern russian city within 24

hours. yesterday a suicide bomber killed 15 people at a train station. tos comes as russia prepares host the winter olympics in just six weeks. it is just six hours away from sochi. the u.s. box office is projected to taking close to $11 billion in 2013, topping last year's record by one percent heard all record according to track. the eagles tony 4-22 in clinch the nfc title. eagles's 24-22 clinched their regional title. >> i didn't watch any of it.

>> would you like, anyway? i don't know. and you? >> everybody knows what happens to your brain when you play too much football, but what happens when you watch 14 games in a row? >> you will cook mashed potatoes in the kitchen. that is what i did. >> in honor of the fact that we cena with us today. he's says in some ways what has happened is that we transferred risk from the public market to the private market. this is a quote from danielle snap check out this huge valuation but it isn't the public markets of there's a limit to how many people they can screw over if they're wrong. this goes with the fact that

valuations are coming off the private market but they are not taking these companies public early on. public pension plans aren't pathetically at risk here if this whole thing blows up. >> it is a nice taken the idea of a transparency that you get to when you go public. is a whole different world. our first conference call on twitter will be a different experience. year the giant 2014 sign on times square will be in color. ♪

>> first, bloomberg. >> good morning, everyone. it is a monday. i am tom keene. cristina alesci on scarlet fu are with me here today. bonds, currencies and

commodities. it is a boom market. 10 year yield three percent. there we are. where will we be 12 months. what a mystery that is. the euro has not done much. today's two 2014 dated check. 2014. 14. >> everybody this week is focused on what kind of arty they're going to throw for new year's eve. and whether or not you are there, you will be watching the ball drop her this year is going to be a little different because from our cars to our homes, that seems like everything is connected to smart technology. this year smartphone will help ring in the new year. it is not google or microsoft behind the innovation. it is a leading company philips.

philips ceo joins us from the platform. high, bruno. >> good morning, happy new year. ball,ove the bling on the the crystal, but let's stick to the lighting technology. what is so smart about it this year? >> we're going to put a different twist to it. with the numerals, the one and the four, we will highlight our award-winning balks, the ones you can control with your smart device. it all is about the internet of things and really taking over lighting. it really is about the opportunity for lighting to touch people in a different way. >> so a lot of people are incorporating smart technology into their homes, whether it is to control the security systems their heating system. how many people are really using smart technology when it comes

to lighting? see,th lighting, what we because lighting is so ubiquitous, whether it is on the commercial or consumer side, we really feel that lighting can be the trojan horse of the internet of things. people are really changing the way they view lighting for a much more disposable good. a much more durable good. controleally want to their environment in a very unique way. >> part of the ambience. let's talk about -- for a second. they're going to be facing a ban , a new and the takes effect january 1. what impact is that going to have on the consumer? is funny mentioned that impact for the consumer is the opportunity for them to take the technology that

we just talked about. if that is by me with the new year's ball, we will put that all in a 60 watt equivalent ball like slim style here. it gives them the opportunity to efficiencyre energy and last about 25 times more than the regular incandescent bulb. terrific this is traffic in innovation. how much reduction in our utility bill or would you expect us to see in the next five or 10 years? are we going to go down 88% in our electric ill? bill?in our electric >> we are rela realizing anywhee 75-90% energy efficiency. we are people close to $140 over the lifetime of the ball.

significant energy efficiency, significant cost impact very >> bring us back to the ball behind you. it is absolutely gorgeous. really spectacular. with that i think of the innovation like we saw in 2013 and the natural gas in the oil business as well. where will industrial lighting be in five or 10 years? can you really bring that ball into all sorts of other industrial processes? that lightingeel is going through a philips is really leading the way with innovation and technology. as we said, we are embedding a lot of dynamic and intelligence within the lighting sector, whether it is in the ball or the fixture, we are very well positioned because we lay across the value chain and our ability to do that and have a deep understanding will allow us to really change the face of

lighting from the perspective of how people use lighting, what it does to cities. for example, most people talk about the smart grid or smart cities. all of thatel that will not be existent without smart lighting. we really feel that lighting can be the cornerstone of really this new technology. >> bruno, we talk about innovation. we see behind you with the ball that will be dropping, but the options with regard to these new lightbulbs, these halogen ball to seem as recycling seems fairly limited. what is philips doing to advance that effort? we are veryips committed to continuing to innovate, specifically around technology. technology that makes a difference, technology that touches people. and technology that creates different possibilities, whether

it is around a technology or an application like we have here with the new year's eve ball. whether it is with hugh or things we did with lightning bridges in little rock. what we are doing is we are very committed to research and development in philips that allows us to really take lighting and move it from what has been traditionally a more moresable type of good, so a durable good. >> thank you, bruno. happy new year. >> i'm really taken by on a $40 savings. >> yes, but the lightbulb is more expensive. use those fancy, modern ball? i have gotten used to them. >> in the kitchen i have the old ones from a childhood, like 1910.

>> i think you have the old retro edison bulb. >> those are in the kitchen. from my childhood. they bring back memories. electricity upstairs, dad? it is great. i'm not kidding. >> more about tom's lights. if you missed any of her interviews, you can watch them now on bloomberg on apple tv. ♪

>> i'm tom keene this monday with scarlet fu and cristina alesci who has chosen to be with us this morning. it was an option for her and she decided to come in. no option on a monday. we have the top headlines. will get to football eventually. that is coming up in the second hour of surveillance. but we start with france where the president francois hollande has won approval for his 75% millionaires tax. on salaries above 1.4 million dollars. this tax has infuriated french companies and soccer teams which at one point threatened to go on

strike. that would cause some major upsets. michael schumacher, the most successful driver in formula one history is in critical condition after a skiing accident. he underwent emergency brain surgery after hitting his head in the french alps. at the box office, the hobbit kept its number one spot. the movie took in almost $30 million in ticket sales over the weekend wringing its total to $436 million. came inney's "frozen" second. the wolf of wall street placed fifth. those are your top headlines. >> some he said it is three hours long. >> two hours: 51 minutes. too long even for a movie about wall street. >> single best chart, it is not about leo dicaprio.

>> is that leo dicaprio completely. as a part-time nation that is the united states. the bureau calls this section of the labor force working part- time for economic reasons because people want a full-time job, they just can't get one. it is currently at 8.0 5 million as of october 2013. it makes up 5.6% of the unemployed. terry schilling says the in -- you affordable care act will 's wille number leap. incentivize employees to keep their employee numbers down. >> think this chart sets up the tension and the anxiety that is out there. is the anxiety that some americans face, is it just solved by better gdp? >> is at the single best solution? >> to a large degree, yes. there are key structural forces on top of that, which is one

massive technological shift on top of a rapid globalization. that is very tough for a lot of wage earners here. to this point about new employers are dating but not marrying the gdp, they're not really committed here. when gary shilling was younger, social media, is a multiplier effect of twitter and facebook, do they claim american jobs or are they just out on an island in silicon valley? >> i think they changed to a job has to be done. if you look at the way marketing is done and how folks will probably build businesses, you'll have to leverage these channels. those were doing it are getting a leg up versus those who are not heard at a note if they create the net job effect, though. that is a question. >> that is the single best chart this morning. there is also first look.

some interesting photos this morning. -- >> we have to start in recipe is a pictures are so astounding. russia has suffered its deadly suicide bombing in as many days. 15 people died after an explosion on a trolley bus monday. this follows of course sunday's bombing at a crowded railway station. the violence raises safety fears just six weeks out from the winter olympics. that is going to be a big overhang for the games and possibly making some people a little nervous about showing up. we will have to see how that various countries react. against these backdrop of extremist saying they want to disrupt the games and create fear. >> 400 miles away from sochi. it is not so close, but it is >> we have to move over. there you go, there's a map or a

duo see how far it is from the winter olympic games in sochi. about 400 miles there. then we move over to brazil, actually know, we will go to egypt first. protest over the weekend in egypt following the government's declaration of the muslim brotherhood as a terrorist organization last week. three people died during the clashes with police in cairo. the deck larison requires brotherhood members to abandon the groups or face jail time. it affects numerous welfare groups associated with the brotherhood. the brotherhood in certain parts of the world are very popular. you can't really deny that. last only and in a fairly happy note. new yearal celebrations are already underway in brazil. thousands of people gathered at copacabana beach to honor the goddess of the sea. that is kind of cool, that is my

new year's. i want that to be my new year's. >> you just want to stand outside in times square. >> i would rather be at the beach getting a tan. >> i do need a tan. let me write a memo on the bloomberg here to myself. 2014: get a tan. >> about this for the agenda? another record high. we have 50 of them so far. that is how may times the dow closed at an all-time high. will it continue in the new year? that conversation next on "bloomberg surveillance." streaming on your tablet, your ♪ phone and bloomberg.com.

>> this "bloomberg surveillance." is i'm scarlet fu with tom keene and cristina alesci. over atment shakeup acer. three executives recently left the company. this is according to the "wall street journal." this is part of their effort to turn around their core pc business. a company spokesman saying the three executives resigned earlier this month because at other career plans. who loses a legal challenge. an appeals court ruling that say

they violated federal wiretap law. the wiretap data collected by google is covered by the wiretap act. and, tim cook it's a race. he received a two percent increase over last year. it includes a salary of $1.4 million and 2.8 million in nonequity incentive plan compensation. that is today's company news from the files of bloomberg west. >> and up 40% since april debacle. >> or member that? at a fineow it is recovery. it has been a banner year for u.s. markets. the dow, s&p and nasdaq have all gained at least 25% today. it feels like we're making new highs every day. consider this, at 251 trinity 200so far this year -- at 51 trading days so far this year

it is averaged to at least one new hyper week. >> of course i sold in may and then i went away. the s and p 500 is up a cool 12% since the first of june. we agreed 2014 with bond prices lower, yields higher. the yen is weaker and stocks move ever higher. click chief global strategist, head of rivet of at weidman company. michael, what a strange year it has been. do you link currently markets? dealing the bond markets? can you link them right into the superlative equity performance? >> oh, without question. the marketsng with today. in the 90s era defined by technology and telecommunications. today they are defined by central banking which means interest rates, currencies and

all that heard you have to look at all three of those and then commodities. those four groups all come together in some integrated way. isattention right now here the bond market rolling over. i took the vanguard total bond fund. this is their major index fund. it is a bathtub full of bonds, if you will. it is something the story of hans and rolled over. if you look at it with the equity markets going back to the beginning of the crisis, the equity markets are of -- have finally come back. you look forward 12 months, does that story continue? to equities continued to outperform. one of the biggest shifts in the history of man is happening right now.

at some point, there is a stabilization point. right now we're dealing with a market that is gone from climbing into a flow dividend market. >> was a bit of jargon? >> yes, it was. the idea being that it is part of the great rotation we were being promised so long ago. you call it a slow but massive reallocation. yet that great rotation we were promised earlier never happened. what is the risk to this great rotation? risk is that we have some real reversal in fundamentals, economic fundamentals domestically but as well.conomically if we have higher risk of deflation or disinflation, that is going to reverse that. right now, i think what we have more visibley is

gdp than we have ever had since 2008. but it is capped at the same time. >> you've written about the implications of the so-called flow driven market and they're faster trading in and out of stocks, value stocks being driven higher. all of these implications would actually tend to steer retail investors away. it seems like a market where if it is a flow driven market the professionals may be should wait in. with these implications retail investors are coming? >> at this point it is scarier to be in bonds or too much in bonds. >> oftentimes we talk about this in the context of stocks versus bonds, but is anyone talking about the reality that there are other places to put your money? what if retail investors decide to put their money in real estate instead?

have they learned nothing from having been burned the last time around? >> there are clearly other groups. if you think about the present bond market which is the largest asset class on planet earth, there's one logical place for a lot of those flows to go. that is you is equities. secondarily will be international real estate and other asset classes. clearly treasury bonds have to move someplace. >> whatates will eat -- will the tech companies do their cash in 2014? youor the most part i think are looking at a lot of companies that are basically not distributing any of their cash. the best example would be google. if google started to distribute cash right now i think folks would be a little bit concerned that it has gone next growth are

google has the opportunity taken some very big industries and i think that apple is a clear example where there is a lot of pressure to do so. apple to, has to go after the same opportunities that google is going after. apple and amazon are looking more and more alike. >> we are running out of time. ken senna, what is your single best idea for 2014. >> i like facebook. of concern about facebook staying relevant. i know you said you don't use facebook that much. i think there's a lot to do for facebook. i like it. >> thank you. this is way too early heard you are a west coast kind of guy. thank you for getting up this early. michael purvis is up every day for him anyway. for ex, yan weaker, 105.18. watch formething to 2014. what will the chinese government

do with their fixed currency, or managed, i should say. canada, 107. tvhow the nfl keeps her viewership high, coming up next. their tv viewership high, coming up next. ♪

>> "bloomberg surveillance this is --this is "bloomberg

surveillance." >> dow industrials are within a hairs breath of all-time highs. could we be up 30% this year? a second bombing 400 miles from the sochi olympics. they start unit 6 weeks. it is the last remaining moneymaker of tv, football. football reigns supreme. good morning, everyone. this is "bloomberg surveillance ," live from our headquarters in new york. i am tom keene, and joining me, scarlet fu and cristina alesci with us as well. our guest host for the hour, brendan greeley with "bloomberg is this week -- "bloomberg businessweek." morning brief. >> we are going to start overnight in china. almost $3debt rose to trillion, with financial risks

in the second-biggest economy. home prices rose in december and will lead gains in 2014, according to home track. -- japan -- this is big news nikkei up 66.7% in 2013, the best games since 1972. you remember that, tom. >> yeah, i do. >> how did you trade that one? >> i didn't traded. i wasn't of age. >> come on, that's all i. -- that's a lie manufacturing activity -- >> no jobs report. >> no jobs report that that doesn't mean you are taking the day off. you will be here. france'so note -- constitutional council gave the go-ahead on the government's millionaire tax. the tax lasts for 2013 and 2014

and taxes salaries above one million euros at 75%. would want to play for french soccer -- excuse me, football clubs anymore. >> tom thinks this is directly related to going after layers. >> make a lot of money in france. >> ford widening its lead over toyota. u.s. sales of the ford brand will top 2.4 million vehicles this year. be ford's year would 4th straight as the number one brand in the united states. blackstone is investing in crocs. the investment will give blackstone preferred shares in the struggling footwear maker. crocs also announced that the ceo will retire at the end of april. carlsberg its listing its asian expense and -- expansion. callsal comes weeks after

double the state to 16%. that is today's company news. >> no question worldwide on bloomberg news it has been the story of the week -- 30 people have been killed in the past 24 hours in russia after 2 suicide bombings in the very southern city of volgograd, formerly stalingrad. that city is 400 miles from sochi, where russia will host the winter olympics in less than six weeks. we go to our moscow news bureau. henry, good morning. when we are -- when we look at this, i will ask a single question -- what are the ramifications of a third bombing? >> extremely worrying. as you said, 400 miles from sergey -- sochi. the fact that we have had a 3 bombings in the space of 3 months -- the first happen in october when a suicide bomber blew himself up on a bus --

these taken together show that security forces haven't got a little things -- a lid on things. there are concerns that there will be further such attacks in the run-up to the limits and during. >> will there be a deployment of security? was there news on monday afternoon in moscow just do something? what will moscow do? in place forplans the lyrics themselves. there will be about 30,000 police officers and troops stationed in and around sochi, but they are going to have to look at the whole southern an extrad tried to put resources to prevent these types of attacks from taking place. experts are fairly confident s themselvese will be secure because there are such stringent security measures in place. the problem is that extremists will try to attract attention to

themselves by staging attacks outside immediate security zones. various the release of protesters to vladimir putin, what has been the response of the russian people to these 2 bombings? >> the russian people have had many years of terrorism, unfortunately, including right in the heart of the russian capital. that hasn't been the case for the last couple of years, so for them it is very worrying signal that in the space of a very short time, people going about their ordinary business, getting on the trolley bus or riding the railway station, get killed in this fashion. it is the specter of terrorism which is again starting to worry people. >> henry, thank you so much. henry meyer in our bloomberg moscow news bureau. you wonder. games arehi olympic going to be the most expensive

winter games ever, and the secured costs have gone up by a lot. >> you have got to wonder if this undermine putin's power a little bit, or at least is standing. he has tried to make such a as aack internationally statesman and outlook psyche doesn't have control of his own country. >> hard to think of anything that would undermine his power within russia -- >> within russia, right. internationally. >> he is almost childish that way. >> brendan, what will tv "bloomberg businessweek" angle on these bombings? >> we are focused on how expensive these olympics are. they're building a potemkin village. >> $48 million. >> imported you talk about this because i am not up to speed. s in southernlympic russia? i think the snow is up north. >> is a resort town.

all of it is a vanity project for putin. in a way, what you see with him is the strange things you saw under soviet russia. do whatever you want, where everyone. >> because i can. there is no trails. on a lot of the mountains they're building for this that is allage, russian tradition. go skiing wherever you want. >> a rational response to your question is would you like to see a picture of vladimir putin shirtless? >> on skis? >> he has not done that yet. he has gone fishing. >> horseback -- i don't know if he was shirtless when he wrestled the tiger. >> the reporting of the international team and "bloomberg businessweek" -- can they pull this off? >> i feel like they always do. every time there is an olympics there is the question. can they do it in brazil, can they pull off the commonwealth games in new delhi? >> so many international leaders

are not going to be going, including president obama. >> a huge resource of investment friend and we saw the immediate reaction when he released -- a huge source of embarrassment for him should we saw that immediate reaction when he released kho dorkovsky. >> only a couple of months before his sentence expired, though. and the members of that band pussy riot as well. >> he takes his international reputation very seriously. he wants to be seen as a serious man, strong man. it is hard when things like this happen. greeley giving us a lot of help here. international business machines -- for those of you young enough, ibm. i call you the bean counter of retail. nobody doesn't like ibm. -- nobody does it like ibm. the minutia.

you guys do the date of what we idiots do. what is the single thing you have learned in the last 4 weeks? >> the big point is that mobile was huge. >> bigger than you thought it would be? >> oh, yeah. online people looking at today, 40% going through a mobile device. >> tablet -- >> tablets is what people are buying and smartphones are what people are searching. >> do people rip up their strategic plans? it is wanting to go -- one thing to go holiday this, blah blah statistics. do they go to a january meeting saying we have to rip up the script for christmas? >> people were shopping all the way through christmas day. christmas sales were up online. people just don't take a break. shopping is happening all the time. >> a lot of the rules being

broken here. do a data check good stocks, bonds, currencies, commodities. this from the bloomberg equities. were you in the market? banner year. futures up a little bit. we begin to see the bond move. nymex crude has done nothing. >> crept i slowly over time. we also have the twitter question of the day. how should facebook stay relevant? this is "bloomberg surveillance" on television and radio. ♪

>> good morning, everyone. "bloomberg surveillance." very busy monday morning. end of the year tomorrow. >> the safety net is getting a little bit smaller for 1.3 million americans. and employment benefits expired over the weekend. $450 check slowed since the recession in 2008 but it is no longer in the mail anymore. that's go to phil mattingly, our weiss correspondent -- our white house correspondent, in washington. lawmakers have not given up on

this just yet. we are talking about harry reid and senators from states most affected like new york and california. >> that's why, scarlet -- that's right, scarlet. that is what we are faced with right now. president obama employee and both chambers of congress. senate majority leader harry reid has pledged immediately take this up. they have one republican on board and a bunch of democrats are behind it. they gething is can five republican senators to join them and get that magic 60 mark and put escher on house republicans -- put pressure on house republicans? they don't want anything to do with unemployment -- extending these benefits. it is going to be a big thing if the white house and senate democrats can put pressure on them when they get back in january. given the prospect of midterm elections, how much can republicans really fight this at the end of the day, especially

since a lot of them are in part -- hard-hit districts were on appointment is high? >> they're looking at these red districts, these republican districts, and the people who and if it's an emergency benefits the most cap -- people who benefit from emergency benefits the most. they will hammer them on this throughout january if they cannot retroactively pass some type of extension. they feel like they are in the win his seat. -- winners seat and some extension will have to pass. john boehner will have to figure out if he can attach this to something else. how he can do that is a big question. >> phil mattingly, thank you so much in washington. rendon grilli of "bloomberg -- brendan greeley of "numbered business week." >> this is clearly policy being made by accident. one way to think about

unemployment benefits is that it , themacroeconomic stimulus exact same thing that the fed is doing. the fed is working so carefully to warn people up and know it is coming. this is just a cliff. >> brendan greeley with us from "bloomberg businessweek." >> facebook getting bad reviews from its youngest users. ♪

>> good morning, everyone. "bloomberg surveillance." our twitter question on the second to last day of 2013 -- , howing of ipo debacle should facebook stay relevant? @bsurveillance. a free tweet. >> give zuckerberg some tips. scarlet fu, cristina alesci.

brendan greeley from "bloomberg businessweek." they've had great covers all year. >> i can't wait to see what the first 2014 will look like. let's get to the top headlines. we need to start with what happened in russia. bombs exploded in volgograd, killing at least 14 people. yesterday a suicide bomber killed 16 people in an attack at a train station. these attacks, as russia prepares to host the winter olympics in a 6 weeks. volgograd is 400 miles away from sochi. "the hobbit" keeping the number one spot, bringing the total to 400s are to $6 million -- $436 million. "frozen" came in second. the philadelphia eagles scored a late touchdown and held up the dallas cowboys to secure the last playoff spot in the nfl. that clinched the nfc east title.

games, they're scheduled for the opening weekend of postseason play. those are your top headlines. >> who are you rooting for? >> i'm from new york is so of course the giants, but my entire household is for the 49ers. >> that's bill gross' team. >> 49ers did great. >> and green bay won. that was exciting. do you have a team? >> do i have a team? >> she is a new yorker. >> know quite own of a football team. i have a hockey team. -- no, i don't have a football team. i have a hockey team. >> who is your hockey teams? >> the rangers. >> high-five. >> are you clicking the little leaguers or whatever they're called -- pee-wees? >> "little leaguers." >> i tried!

i get burned every time. ,> sports with cristina it can be ugly at times. price only matters. retailers report good sales at some suggest housing profits. counting the beans of retail america. what do you actually do? the miracle of what ibm does in measuring retail -- what do you actually do? >> we can see up-to-the-minute what is going on online. >> you can see the amount i am unloading to given store -- at a given store? >> and what device they are logging on with. grim grim.t grim was it just off the mark? >> you have to look at brick-and-mortar sales and online. online was on fire.

up 37%, fantastic. >> over year ago. >> and certain segments did really well. department stores him and alarming number, up 89% year on year. they give department stores. -- think of department stores. online sales were up 89%. >> last-minute shoppers were out in force this year. that onhe fallout of delivery companies. what are retailers going to do to avoid the same problems? >> the big deal here is one it is for doing the promotions -- when do they start doing the promotions? .romotion started early and can you track your package? everyone wants to track where the packages. >> let me bring in brendan greeley from "bloomberg businessweek." he follows this carefully. >> it seems like an instance where technology has out rand logistics. -- has outrun logistics.

to order a december 22 it will get that this morning -- >> how much of that is the fault of ups and fedex and how much is amazon? of they weren't communicating, maybe, with ups and fedex about the surge they were seeing. >> the point here, too, is that consumers contract and -- if contribute -- if consumers can track and know they are less alarm could if they know where it is in the local vicinity, that is a big. with the so affected island of manhattan. you are from umass-amherst. all this technology on fifth avenue. >> people shop all the time now. we saw people shopping on christmas. it was an alarming number, 16% year on year. >> i need to ask about gift cards, the most popular gifts of the year you but they don't

count until they are actually redeemed. how much will the next 2 weeks change what we think about the holiday shopping season? >> you see sales going very high right now. they're trying to move out inventory. it is a big deal. ios users are more inclined to spend. so what about that? does that mean they won't develop apps for android? >> everybody asks if it's the app or the site. we found that the site really matters. better on ane works ios device, you offer but opportunity to sell things. -- might takeaway way, permits rose up 89%? -- department stores up 89%? stunning third jill, thank you.

that was fascinating. >> this is how much the big networks will pay to carry nfl games in 2014. ♪

>> this is "bloomberg surveillance." i am scarlet fu, with tom keene and cristina alesci. cooper tires dropping its merger plan. this terminated its deal, saying that the indian territory breached the merger agreement

and said that the financing was no longer available. google and audi will work -carther to develop an in entertainment and information system, opening to "the wall street journal." it will be based on the android software. its $267 says that million bid for eight chinese breweries has been accepted. "company news." >> i can hear you say that all day long. and you with the italian names. it goes both ways. >> you have been looking into a study on facebook, that it is not that cool anymore? >> for young people. maybe for tom's set it is ok. >> nope. >> facebook is not just on the slide, it is basically dead and

buried. this is from the global social media impact study, funded by the european union. facebook is mainly a tool for keeping in touch with all the family members, parents and grandma a shoulder family members, parents and grandparents -- older family members, parents and grandparents. most young people feel embarrassed to be associated with it. what i found interesting is that young people admitted that facebook's functionality is fantastic. they just want to be caught using it. -- they just don't want to be caught using it. this functionality not matter anymore? >> i think it does, but we will see a shift in what the social media company does. facebook bought instagram and one of the things it promised to do was not screw it up. yahoo! bought tumblr. what facebook and internet companies or social media companies are going to be doing is working with advertisers, i

think, in the future, and it will be alert to what platform is going to be the most popular with the youngest generation. >> do you know anyone who likes advertising on twitter? >> nobody likes advertising anywhere. people like free stuff, that is how this goes. you are brand-new and you have venture capital and you are waiting for someone to buy you -- >> are you saying that the only way for facebook to stay cool with young people is to by other cool companies? mark thought that zuckerberg was facebook. it is really sheryl sandberg. wherever the advertising it comes from, you let some the us create the platform and you buy it. >> you mentioned instagram. young people like instagram but facebook owns it. they are going to introduce advertising to instagram. why don't young people make that connection? >> they well.

remember friendster? they bring in advertising and they screw up the experience but we are now looking at the standard acquisition -- >> you would have thought that the second-generation social media company's would have learned the lessons from friends ter and of diversified their revenue base from advertising into something else. >> what is the something else? >> logging into facebook -- i still do, because i'm old enough -- >> only on your private screen. >> always free. l if theyay for gmai would not advertise me, but that is not an option they are interested in considering. standpointholistic that you have that "bloomberg businessweek" and what you do with economics, if i were to say that 2014 is the rough, for facebook and twitter and pinter est, what is it the year of?

i think it is the year of sweat. >> diversifying across platforms. there will be a new economy of people trying to create cool platforms and competes like facebook -- companies like facebook trying to acquire them. "the social network," wonderful movie, and we are 3, 4 years on from that movie and it seems ages ago, the buzz from that movie. >> we're learning something we should've already know to be true, which is that no social network will dominate forever. >> what is the social media company to watch in 2014? is it snapshot or something else -- snapchat or something else? >> oh, gosh, i'm too old. i talked my mom on facebook. i'm too old about this conversation with you. on asht in greeley

brendan greeley on facebook. > -- brendan greeley on facebook. >> maybe it is not about social media. maybe next year it will be all about bitcoins. >> pending home cells number at 10:00 a.m. >> good morning, everyone. "bloomberg surveillance." big news -- look for bloomberg television on apple tv. i'm tom keene. with us, scarlet fu and cristina alesci. our guest host this hours brendan greeley of "bloomberg businessweek." >> did you watch any football games? >> tom wachtel like -- tom watched 14. blacklike money -- monday. for tv advertisers, time to check out the checkbooks. live nfl games accounted for nine of the 10 most-watched telecast of 2013. the oscars is the exception there.

attorney for madison square garden with years of espn programming there. welcome. the tv viewing expense of nfl games is so great. people say it is better than going to live games. does it threaten the sport of football as a result? >> i don't think it. it is too powerful. they are trying to make the experience in the stadium better so that is something to watch for the next couple years. it is the grid is for proprietary programming you can get and it will continue to be popular. >> why is it so much more popular than any other person boards in the united states is parity. on any given sunday, any team has a good shot of getting the super bowl. games and 13 of the 16 have nfl playoff publications -- layoff i -- playoff imp lications. marvelous formula to it. >> brendan greeley, question

here. >> do you think it is also a question of supply? with other sports there is so much more supply every season. with baseball -- >> penalty there is any question about that. only 16 games -- i don't think there's any question about that or it 16 games going into the playoffs. i depends on winning and losing. >> i saw some sports over on my vacation here. i saw a great nhl game. i guess baseball is doing well. i was up at fenway park over the weekend. what are the other sports learning from the nfl? 20 years-plus you have been doing this. what do they need to learn? >> winning and losing. you will always be in that conversation. the nfl markets itself probably league than any other t

and it is a very active sport. andtest season, less games, the importance each week as did the nfl really will overshadow the other leagues. >> the business model is different. network for ground that none of the other sports do. something that the nfl players union gave up a lot of ground there. do you see that spreading to other leagues? >> i don't think so now. you have teams chipping and money to -- chipping and money to the revenue. the dollars is a much bigger for the nfl. >> we will bring in cristina alesci, "surveillance" football expert. >> you will find out what an expert i am in a few seconds here. [laughter] youth participation in this

sport is down largely because parents have concerns about safety standards. is that impacting viewership at all? >> and a big it has an impact now -- i don't think it has any impact now. per dissipation is a key and that will show itself or the next 5, 10, 15 years. i believe it is the most attractive sport in america and will continue to be and i don't think you will have a serious impact as far as viewership. >> who gets the money, all the billions and billions of dollars? >> it really kind of filters down to the team. >> the players know they are playing for the football package. >> they are playing for good money, no doubt about it. trickles down to the players and the rest goes to costs and pockets of the owners. >> america's greatest monopoly. >> thank you so much for joining us. "surveillance," the

art and business of the selfie. we go to the expert -- not tom keene. james franco. this is "surveillance" on television and radio. ♪

>> good morning, everyone. "bloomberg surveillance."

are you in equities? it is time for "morning movers." >> blackstone is getting in, buying $2 million of convertible preferred stock and crocs -- the company, that is. retire.is going to woin the mma worl -- m&a rld, what we call a pipe. total jargon alert. come on, tom. lot like when they bought hilton. >> crocs will stay public. >> you and i will be talking about this in 36 months. >> blackstone will likely make a nice return on those. despite who wears those shoes? >> my kids wear them. >> people who aren't on facebook

where crocs. [laughter] >> i am keeping my eyes on twitter. given the volatility we have seen, it is likely to continue. where are the long-term shareholders? something that the company was very focused on during the ipo. it seems like fast money is in the stock. at facebooking shares, down about one percent in the premarket. there was a study that facebook is all but dead and buried, basically. only older people and young, young children use it. no one who is in the know wants to use facebook, apparently, according to the study. brendan greeley, facebook, what is it new to -- what does it need to stay relevant? >> you need to put me off in all my -- it needs to boot me off hi-larious pictures

-- >> did you put up pictures of the tree cutting? >> it is a sign of age and a relevance. -- irrelevance. it puts twitter in a really bad place. i think that social media companies need to learn how to acquire and monetize consistently and come to terms with the fact -- it will be hard for mark zuckerberg because i remember when he was going to conferences in 2005, 2006, and he was so confident telling all the old men that he didn't know what was going on. he will have to get used to the prospect of becoming irrelevant. >> this is an echo of march of 2000. does it come down to management arrogance -- "trust us, we know what we are talking about"? >> i don't think it is quite 2000 because i don't think doublethink is going to come crashing down. -- i don't think everything is going to come crashing down. i think social media is here to stay productive the process of searching out new plot ash but

there is deep -- there is the process of searching a new platforms where your parents don't know it is there. i don't think it is 2000, i don't think the whole thing is going to explode. thatre a bit right in people who run social media companies will learn how to be irrelevant. >> home sales due out at 10:00 a.m. ♪

>> this is "bloomberg surveillance." i am scarlet fu come with tom keene and cristina alesci. our guest host is brendan greeley of "bloomberg businessweek." 3 senior executives of a taiwanese company recently left according to "the wall street journal." it is part of efforts to turn personale core computer business. google has lost a legal challenge. the court ruled that it must reveal that its program violated wiretap law. tim cook gets a raise. packages competition valued at about $4.25 million

this year. it includes $2.8 million in nonequity incentive compensation. us.ristina alesci with i thought that was light. >> it was a little sluggish. slightly up. i think investors are going to start pushing back. $8that he would be like million -- i thought he would be like it million dollars, $10 million, $12 million. >> 5 years after he became ceo, look for that. >> in cupertino, $4 million a year. that is a one-ed from apartment and a fireplace. [laughter] >> i don't know if he is in it for the money, tom. it is for the glory. >> the glory. the glory of apple. >> i actually saved this for the final bit of "surveillance" because it is so good.

the meaning of the selfie from james franco, self-declared novelist, artist, professional student -- isn't he getting a phd in yale? english literature. >> brendan greeley, you are an expert on the selfie. >> how many things am i an expert on this morning? >> you hit on the idea that the social media businesses have built themselves on selfies. >> this is how artists use to make a living. they used to paint selfies for rich people. the walls of the net are hung with selfies.

there's nothing unnatural about wanting to render yourself or take a picture of yourself. i think what we are annoying is that, again coming back to social media, instagram in particular is run on selfies. these are companies who want to make it as easy as possible for you to selfie yourself. facebook, if you don't have an icon in there, they tell you every time you login that you don't have a picture. twitter does the same. it is not that we are morally unsound and unbearably versus a stick. i think we are at the mercy ash unbearably narcissistic -- it is not that we are morally unsound -- unbearably presses cystic >> it is james franco's fall. is this just a flash in the pan? maybe the 2014 version of the selfie. >> there are certain kinds of

tolerance and intolerance around it new technology. do you remember when we had cell phones and people didn't know you are not supposed to be talking on your cell phone all the time? we solved it with basic social code -- you are not supposed to use your cell phone during dinner. >> no selfies in the bathroom. >> oh, god, i thought that was clear already. maybe one shirtless selfie every 6 months. >> will traditional tv start to integrate things like selfies? i can see the nfl incorporating footballke selfies players take. >> you see that with twitter, people reacting immediately and networks trying to show what people say. you could see that with somebody's picture. s isn't or not that last the question could it could be

the thing of the day but i don't know if it has longevity to it. >> i think it is a bunch of idiocy. the president, in this august moment in africa -- i'm going to be honest. to me it is new, and where will sism, with this narcis where will we be in five years on this? >> i really agree with cristina , i believe there are self-correcting mechanisms. the danish prime minister wanted to take a selfie with him. nowhouldn't have and he knows that. -- yes.at funerals saidnally quit -- he "president obama took a selfie at a funeral, i'm done here." >> as we debate whether selfies

are acceptable or not, we need to look at the agenda. tom, what is on your agenda? percent 10 -- three year yield. bond prices go lower, yields go higher. everybody rationalizes it. >> can i slap you this time? >> slapping me right there. the thing is that it is different from the stock market. -- the bond market rationalizes different -- yeah but, yeah but, bill gross this. huge mr. for next year -- where is the psychological tipping point on the 10 year yield for people panicking with 401ks going, wow, we are not far down on our bonds? >> tom, you need to get -- >> radio. >> we are going to continue on

with our agenda. on my agenda this morning, housing. outing home sales are due at 10:00 a.m.. it is a little bit backwards looking but people are looking for that recurring spring in the housing market. >> russia is on my agenda, not because putin may take his shirt off again, but because, unfortunately, suicide bombings in one city of volgograd. we have had 2 in the last 24 hours. at least 32 people at been killed over the weekend. again, that city is about 400 the u.s.y from where -- sorry, not the u.s. -- the sochi games will be played, the olympic games will be played. does putin have control over his country, and how will this impact the game, how will it impact is standing internationally? >> we can bring in bob to talk

about this. years of programming experience at espn and nbc. you have thoughts about what terrorism near sochi would mean for the impact of the games. nowhe fact that it occurred 6 weeks before the games, there will be heightened concern from all parties -- athletes, people from the networks. it is a story to watch, a story of concern, and i think the will have serious impact if it continues and even if doesn't -- even if it doesn't continue there will be an edge now. >> there already was kind of an edge given russia's anti-gay policy. >> there is always an edge now. the fact that this occurred at 6 weeks, this close to the beginning of the olympics, heightens the level of everybody's concerned. absolutely. thank you so much. former ceo of madison square garden.

we want to get to our twitter question of the day as well. how should facebook stay relevant? there was a study that that, he was basically dead and buried when it comes to -- that the company is a sickly dead and buried when it comes to young people. that would take down the internet. >> i feel like it would ruin instagram. people who are much younger than we are have a way of figuring out what is: what is not. integrating instagram into facebook is not going to make it cooler. >> how about this speaks to that idea of acquiring companies to stay cool. it all comes back to that same strategy. >> there is the weird astrophysics of when people like social media and when they leave it. >> can you really buy cool?

that is a million dollar question. >> you are talking about the amazing check you bought for christmas? up next.e loop" have a great morning. ♪

>> good morning. it is monday, december 30. we are live from bloomberg world headquarters. you are "in the loop ."

1.3 million americans are losing unemployment benefits. weekly checks for those people have been delivered since the recession started in 2008. the security breach at target has put credit card security front and center. the list of companies who may profit from the changes we pay for goods. -- like stone taking a stake in crocs. also announce their ceo will be retiring at the end of april. we begin the monday morning on wall street. stockmarket bears have been proven wrong this year. some of last year's worst performers stood apart from their peers. looking at stocks in isolation does not tell the full story, but julie hyman will. you have been looking at how stocks