joining me is erik schatzker with us today after a wonderful hockey game over the weekend. cristina alesci just coming in from new year's. 5:00? good for you. >> it was fine. getting to the morning brief. euro.g the three things to look for. actually one thing to look for. china manufacturing index falls.

trying to sustain economic momentum. the stocks reacting negatively to that news. read things on the economic front. 8:30 initial jobless claims. 9:45 bloomberg consumer comfort. no jobs report tomorrow. it will be next friday. storm hittingr the northeast. we will get updates from bonnie schneider. bring it in close. the winter boots. broke them out early. is that ok? likes it is ok. eight inches in new york. possibly 14 outside in places like boston. there we are. futures up nicely. if you did nothing since thanksgiving, you had to dive and in january. the yield is a big story.

euro a little bit weaker. nymex crude has done nothing for one month, two months? the vix did not move down that much. 13.72. the difference in yield. a stronger chinese currency off the good economic data. brent crude does nothing. is what the pros are looking at. they are looking at the yield difference between the two and the 10. down we go through 2013. we come back to a steeper yield. what does the steeper yield curve mean for the banks that you follow each and every day? >> it is a good thing. you are long, you lend money. you can save lend out at higher yields, longer-term loans like war gadgets. companies borrowing for longer amounts of time.

they will have to pay more money. if the fed continues to keep rates down, they will get more cash. >> futures doing better than good. going to the front page. we scoured the front pages. you alluded to. fiat agreed to buy 41 point five percent of chrysler in a 4.35 oh yen dollar deal. -- billion dollar deal. man whous here of the is the ceo of both fiat and chrysler is to get chrysler to deal,r the bulk of this $1.9 billion coming from chrysler. >> the other part of the genius is the total price way below what analysts expect it. hitting it basically on the cheap. hero? is the

-- getting it basically on the cheap. >> the advisors to the united workers health care trust. they made this play to take chrysler public. basically a backdoor public offering. by virtue of shares by the united auto trust. that did not work. kind of the smoke and mirrors type thing that did not work out. >> you see it linked right away. the yield above four percent for the first time since may. what else? weinboehner,r -- john signaling he may back a series of changes to the immigration law. congress might

finally reach a compromise. i would say is his aides are talking about support immigration law and a step-by- step fashion. those that want to see an omnibus bill pass on that they would get everything done at once. will not happen. >> we will have to talk to phil mattingly about what is really going on behind the scenes. this is a key issue for the republicans to win the hispanic vote. nowhere.going i need to be convinced it will go somewhere this year. warren buffett possibly missing his target for the first time in 44 years. over theffett took company back in 1965 he said he would beat the s&p 500 by increasing the net worth over a five-year time. this may be the first year since 1965 that was failing to meet the target. of 29 point six percent.

a lot of people behind that. 29.6. >> when you finish up 30%, does activeter how good of an manager you are, it will be tough to beat. >> the big winter storm is moving into new york. it is already snowing here. the whole northeast will be affected. on a schnider is our own meteorologist in the newsroom. how bad is travel going to be today? treacherous.l be today it will be ok. like snow covering the roads. not advisable to travel in new york, new jersey and especially northward today. tonight you see the moisture and heavy rain coming up from the south. that will hit. such cold air that the only thing we will see tonight will be heavy and dangerous.

a blizzard warning going into effect from long island. from new york city, under a winter storm warning. the national weather service has indicated new york city will see near blizzard conditions. when you talk about a blizzard, it is important to differentiate that has to do with the wind creating zero visibility. >> we had winter storms before the official start of the winter season. this is really just the beginning. >> to serious storms across the northeast. getting the year started with felix gillette of bloomberg businessweek.

google won everything, didn't it has been an interesting year. close to 50% of the entire business globally. they get bigger and bigger every year. obviously,they are that is a big customer for them. one of the biggest if not the biggest. >> how far along are they in the advertising, creating a story-sponsored content? i do not see their name associated with that. >> if you look at google, the advertising experience.

>> i really get upset about. i love your existential dilemma and goal for the year. we will talk about that later. i going to start liking digital advertisements? >> hang on, i think they are getting better. big pop up get these ads that everyone hated. now i think they get more targeted as the data gets better. i think the native advertising, the sponsored stories are getting more creative. >> will free roll ever go away? >> no. lex it drives me insane. the market is growing and growing. how good was the hockey game yesterday? >> it was outstanding. conditions a little windy and cold.

>> beating detroit in double shootout. it was good. double shootout, company news. snowing in the world headquarters. >> the former editors of all newgs d have unveiled a website. it will take on their old employer in tech news and conferences, they are being backed by comcast. steve: it will be the focus of an insider trading trial set to begin next week. -- steve cohen. it theernment calling biggest he be gold trade in history. looking for link between insider trading and the founder. for coming up with an electric concept car that uses solar panels on the roof to recharge itself. i will believe it when i see it. it goes on display next week and lost vegas. is the futurecar

of cars that do not need to be plugged in. >> redone on your ceiling of your car. how this would be powerful enough to charge a car battery fast enough. you've to park it desert for a week. that, but solar technology has been so expensive it has not taken off residentially. it is an engineering surveillance. a lot for you. stay with us. for 2 million americans, their lives changed new year's day. health care has decidedly begun. i am tom keene. good new year to you. it is bloomberg "surveillance." ♪

>> he is the most interesting man in washington. i am kidding but i am not. an interesting guy, gene sperling, national economic counselor direct their. politically based. always interesting, controversial. on at 8:00. >> you are watching bloomberg "surveillance." i am erik schatzker. this was my christmas present. i get to go coast surveillance or two days in early january. >> i just want a mapleleaf jersey. very cool. >> we have to talk about the affordable care act. health care coverage begin

yesterday. millions of people have signed up. it will cost you something. payment is due. some insurers are extending their payment deadlines into january. phil mattingly is in washington. sort one thing out before we get to the pavement. how many people have health care coverage now who did not before? >> the administration pointing to two point one million people have signed up through the federal or state exchanges. we're not sure how many of those people had coverage before. we're not sure how many did not have coverage before. due januaryents are 10. it actually -- insurers extended that from december 30 one. of those, the administration has not released how many have paid

the premium. we know 2.1 billion people are enrolled. how many people are paying for that coverage, that is the big question. >> now that this has launched, what do these people do? what do republicans do it now that this is up and running? >> a couple of things. even administration officials acknowledge there will be difficulties with the first month rollout. not having insurance cards or knowing which doctors or hospitals are in their network. another key thing from senior republican aides during the disastrous rollout. smart republican said do not focus on the website. they will fix the website. is losing coverage, losing doctors. also, oversight of the law. that is where you will see

people laser focused right now. the government shutdown is off the table right now. that is where you will see john ner going forward. >> the whole rollout was a debacle. now it is getting easier. is there any reason to believe anything could go wrong? dealing with insurance companies now. is it fair to say it is up to insurance companies and the health care providers to determine or to dictate or to decide whether obamacare actually works the way that other health insurance works? go to the doctor, get the services and the interim company covers the cost. always been that way. the obama administration decided early on they would not scrap it . the insurance company was only

going -- always going to have a major role in this. you have seen the back and forth in the past two months as they try to figure out the best ways to implement this law amidst the rollout debacle. insurance companies grumbling behind the scene but very aware that these are millions of new customers for them. the administration has 10,000- 15,000 call-center individuals to smooth out the enrollment assess. rolled him ite in is between them and the insurance companies need this to work him a want it to work. the incentive is to make it work. again, you never really know how this will all work together. >> thank you very much. good perspective on the affordable care act. phil mattingly from washington this morning. coming up, we will speak to paypal ceo, bill harris.

the digital wallet. is it real or just birch will? we are streaming on your tablet, smartphone. to us up at bloomberg.com find us any time. ♪

>> good morning, everyone. bloomberg "surveillance." i'm tom keene with us cristina alesci. scarlet fu off today. john kerry taking another shot at getting the israelis and palestinians to work something out. he returns to the middle east

today to establish broad outlines for resolving issues such as final borders. in russia, two suicide bombings having the president calling for more security before the a window -- before the winter only big games. russia has always -- already deployed more than 30,000 soldiers. the northeast getting ready for a snowstorm, one that has forced airlines to cancel more than 1000 sites. boston make it 14 inches of snow. new york city, eight inches. i do not know why everyone is freaking out. ismen from canada know this dustin other snowstorm. >> agreed. a folks. tom get over it. kristy metta less cheap. google.ng about

-- cristina alesci. 40 billion added to the stock. wall street's infatuation based on something far more mosaic. one question i have for patrick who is joining us is where is it on social? google kind of missed out. >> the one blind spot the company has had in a few years. was not really a remedy for that solution. google plus get 300,000 circles and is dead. why? >> i do not think it has the number of users. it has not been picked up by young users. they are on facebook and twitter. one thing we were discussing

earlier is the performance of search. it worked so well. all search.ent are >> google trying to drive toffic and go -- gmail google plus. how does that fail? >> interruption has typically been the model for advertising. the other businesses they are in are big enough. look at you to. market cap billion alone. i think they have had a lot of wins. they will readily admit that is a huge failure for the company. >> we will continue this discussion. falling snow, bitter. 100,000 people packed into the ann arbor giant football

stadium. this was fabulous. in the netgs put it but the maple leafs would come back to get it done. how did they look as we go into the second half of the season? >> ok. the record speaks for itself. the toronto maple leafs. the canadians are another team. >> sports with christina. cristina alesci on the rose bowl. that is coming up next. ♪

>> good morning, everyone. bloomberg "surveillance." scarlet fu so distraught she did not come in today. .rik schatzker with us

cristina alesci. doing a data check. an improvement. i down down to. i am confused. two months. euro weakens a little bit. crude oil 98.19. how about advertising? mr. said i would cut 50% of my advertising budget if i knew what to cut. nothing has changed. 20-30 second ads. each and every one of us hate with a passion. what are they to do? keane, smarter than the average president. media guru. first of all, patrick, the stocks went to the moon. why did sir martin sorrell had a good year?

content, only at one model for success in my opinion. cable and others, there is obviously subscription. there is great content on the web. user experience. >> will i learn to like it or will they straighten out and do something i want to? >> i hope so. unfortunately it equals interruption. that needs to change. end of the day, is it empirically better than the web advertising that we know that is annoying or is this just an excuse for the industry to charge more at the end of the day? >> i hope not. if you look at the modern internet, every single one of a nativees, it is advertising experience. we have done a lot of research. we have seen 50 plus percent of

saying the experience is better. >> all of this relies on the consumer sharing data. at the same time, people monitoring activity online. is that a concern for consumers? >> in some ways the consumer is already saying enough is enough. aboute talking earlier retargeting. you do a search for a shoe, a wonderful ski boot in that follows you for four days. is that a user experience that people would want? i would argue no, but a lot of the advertising firms are seeing success. most people did not understand what it means. would they know and made him add they saw one? >> we went in front of the fcc trying to define what native is.

the workshop that they held? >> yes, we were. define asould advertising that meets the form and function of the editorial experience on the page. i would say sponsored by, advertised by. are they a prime example of what this is? >> this whole business model is based on branded content? is an award of the future. they do it very well. bothis more interesting, feed has been doing that for a year-and-a-half.

>> time magazine is talking about what christina is talking about. they are blending the editorial and business function together. is that the future? >> you could say that they not be what you want, but there is such challenges. i think print is very challenged. i think that is the future of advertising. new newalk about the for 2014. recode. adhere adhere. they came from the journal. what does this mean for the digital future when we see something like this? >> i would hope the creators and the new owners will do in feed advertising. unfortunately when i look at the unit, that really is not the

future of advertising but they are too influential. >> x essential dilemma. >> entirely. a lot of publishers are going to more pay-per-view models. that is one of the things a lot of people are trying to figure out, where do we spend. , verythe digital world few organizations have been able to make subscriptions pay? there are very few newspaper sites that have been successful thateating a digital form generates a lot of profit. >> if you look at the typical print media, usually a 50-50 model. are we in 24 months or

48 months with all of this? you are in this 24-7? -- you are in this 24-seven. where do you envision this going to? >> vision is exploding. ,f you look at the experience 50% of all traffic online is mobile. , that look at the mobile will be the future for what i call advertising and monetization. in 24 months that will not even be a question. there will be a massive amount of opportunity there. >> the deal that surprised the industry was the mega advertisement firms coming together. what kind of ripple effect will that have? >> will be interesting. to control rates and force a certain amount of ownership? it will be interesting.

i work with both of those companies. the merger will be interesting. coca cola, the donald's, huge advertising. will they put pressure to push down great? that has yet to be seen but it will be interesting. >> advertising helping to make one social network very profitable. was markgenerous zuckerberg. they donated facebook shares valued at almost $1 billion to the silicon valley foundation. that made almost a third of the charity given last year. one thing worthentioning, the chronicle of philanthropy probably does a pretty good job capturing this, but there is so much philanthropy that is anonymous.

wealthy folks donating a lot of money. >> and they get the tax shield and all of that. knows what is going on here. futures negative two. dow futures -13. gold rebounds. thursday. >> we talked about how now is the time to buy jewelry they beat. >> there is no jobs report tomorrow. i am wearing black. >> we have to talk about the weather. temperatures dropping below zero in some places. this mess is what we will have for you next. this is bloomberg "surveillance." ♪

>> it is our number for today. -40 two degrees fahrenheit. the current temperature north and northwest international falls, minnesota. how cold have you ever felt? i felt -21. it was ridiculous. >> go north of superior. cold not matter where you go. when you were young?

>> you're killing me. bonnie schneider here. the store and that is coming. how bad will it be? >> it actually will be really bad. this will be a big one. travel will not be advisable. it will be treacherous. you will see that in new jersey, even starting today. will be int snow boston. we will see blizzard conditions on long island. >> defined a blizzard. it is different than the storm. >> it has to do with the winds. for three hours. lex ready much intense blowing snow. pretty much intense blowing snow. to see nearing

blizzard conditions. i would not be surprised if there is a blizzard warning. it will be moderated as the cold air is coming in. this has not reached us yet. and al handleots it? >> i think so. >> i think they should be higher next time. e will see eight inches . >> i like this position. this is good. hello. to eric's point earlier, yes, it actually works. this is just winter. is canadian.

what about someone like me? it is not just winter. >> on my way in the driver told me it is nothing like the winter of 1977. pizzeria in the bronx. >> people that take it lightly i go off the road. ski slope saturday? >> i have some chili pictures for you. 2500 raid swimmers took an icy plunge into the ocean to bring in the new year. >> the annual polar bear club has held a winter swim since 1903 him at the year tom was born. this years winter temperature clocked in at 41 degrees. it was practically only compared

to the 34 degrees land temperature. lex matt miller there. >> have you ever done this at? >> i think both of you could handle it. all eyes and cameras were on colorado's first customer of .egal marijuana he campaigned for the legalization. at least 37 stores dedicated to the legal sale of recreational marijuana open to 21 years of age or older. a $59 purchase, 10 of which went to tax. , taxes.s is all about >> i think you are right. should the rest of the country legalize marijuana? started on bloomberg

"surveillance." we get you started with bloomberg finance and investment. we are on the website. also, apple tv. good morning, everyone. it is bloomberg "surveillance." ♪

>> good morning, everyone. good thursday morning. no jobs data tomorrow. scarlet fu demanded to be off today. erik schatzker is a trooper. he has company news. a hacker has published the names and phone numbers of four .6 million people who use snap chat. open it upe message, and disappears. the company is not commenting. they said they were warned of months ago that the data was honorable to hackers. the chairman of the maker of the world's biggest smartphone says employees need to think differently. the company has to move beyond the a focus of hardware if it

wants to keep growing. sampson shares fell for the first time in five years. contrast that with google and you understand what is going on. netflix testing new prices. this could force customers of the world's largest subscription streaming service could pay more for additional family members. toys to curb account sharing capture the lost revenue. that is today's company news. gillette, you have documented the rise of snap chat . surprise to you the company appears to be so vulnerable? been plaguedy has by these problems. a whole genre of how it is not safe. fix to get around that. the company keeps growing.

>> facebook. kids did it. old people did it. our old people going to do it on snap chat? >> you are sending of us.elfies to all the demographic expanding at this point. pretty much teenagers, young college students. facebook trying to buy it that as a defensive maneuver to keep young people in the world. >> i think i would have taken $4 billion. is 100 30 million global users. i do believe the photo sharing business is a big this mess. look at instagram over the break. i have to admit, it could be really good. it has to be native or

nothing will work. >> a disruptive 2013. disruptive being over and over used. x is essential maybe the word for 2014. he licks gillette has looked at the many extra stencil -- ecstasy sensual dilemmas. like who am i? should i stop wearing bow ties? how about football? michigan state, stanford. >> a ton of extra sent a angst xtansel angst. you read about his injury history and read about what it is like and what it does to your brain, all of the concussions, and a year ago the question was would you want your kids playing

football? football is huge. making a ton of money. >> they could use popularity. >> here is the question of the moment for you, hockey. what about hockey and fighting? >> the debate is there, but i have not seen much of a change from the agreement of the past four or five years. i have been following the montréal canadians. 19 of the top 20 shows according to nielsen this year were football. >> how about digital? what does that even mean anymore? probably the is delivery system. most television will be a delivery system as well. digital will be the

delivery of bits to a consumer. .> you listed companies >> getting run off from time warner. ceo of time it says we are not a magazine company. >> you have black area on the list. who will be on the list next year? the list nextg on year? >> talking about snap chat. disappearing photos will be a disappearing company. >> moorman perlstein recently went from bloomberg businessweek over to time magazine. what about the business world? 29 .6%. everyone is great. no one is really engaged it seems in equities this time around.

>> another thing we are talking about is the mbas and people preparing for a career in business. >> what do you think of patrick kane? >> it is something i debated. i was 20 seven and could have left the industry. my boss told me if you leave, the person i will hire is you in two years anyway. >> any regrets? >> not at all. >> you load up on student debt. you graduate. you made $70,000 salary and $50,000 plus bonus. but thestill exist, money does not exist. , the programs are getting more rigorous. that is the dilemma.

students are headed the faculty. >> also a sense of networking. originally part of that experience was working on the network of context. what does it feel like to sit on the horns of a dilemma? >> uncomfortable. >> can we say this on morning tv? more like what i do on the phone with my sources. >> do not be a stranger. thank you. felix gillette. >> for report, let's get it started. -- forex report. continues weaker. the emotion right now, london tv did a good job of that. turkish lira ever weaker.

the real lead story is dollar goes nowhere. we have more coming up. fleshy is cut and shows all. here to see me and only me. stay tuned. ♪

>> this is bloomberg italians are." the

coming. fiat takes full ownership of chrysler. the affordable care act is coming. wait, it is here. over 2 million covered under obamacare. christina is sick. my new year's resolution. do i weight loss program choose a? somehow the staff pick that for me today. good morning. it is january 2 2014. scarlet fu is off. joining me is erik schatzker. former ceo of, paypal and into it. brief us please. >> overnight joining the euro. overnight, china manufacturing index falls. the real challenge or the president as he tries to sustain

economic momentum in china. initial jobless claims. bloomberg consumer comfort index. many fracture in and construction spending. no jobs report tomorrow. we will have that next friday. we cannot not talk about a winter storm hitting the northeast. tom and eric are well-prepared being from cold-weather places. as much as eight inches in new york. boston could get 14. often does warren buffett. or to? for the first time in 44 years, he probably missed his own target. berkshire hathaway likely to report it missed the five-year goal of increasing the net worth more than the s&p 500. since the end of 2008 the s&p 500 has returned 120 eight

percent. value rose 80% until the end of the third quarter. the company would have to do well in the fourth quarter to catch up. chrysler is going to be fully owned by fiat. the owner agreed to buy the remaining stake in chrysler. health care trust put up most of the funding for the deal. the whole thing valued at four point $4 billion. ford coming out with an electric concept car that uses solar panels on the roof to recharge itself. it goes on display next week. says the car may be the beginning of the future of the mass-produce rechargeable vehicles. that is tom with this companies news. go to philip mattingly, in washington where the affordable care act likes in today.

who has the big relapse? -- who has the relapse? >> when you look at democrats as a whole and what they wanted to do, this is a very good day for them. how's summit -- house immigrants feel great. still a lot of skepticism. wille are wary of what happen this month. >> 2 million bodies in. how many bodies does the president need to have as part of his obamacare where he can is -- where he can say this has been a success. >> the target number everyone has been looking at is 7 million. this is what the budget office says needs to be enrolled by march first for it to work. 2.1 right now. people ofabout six october 2001. to get to the 7 million number, they cannot stop now. they have to kick it up in the

next few months. immigration, john weiner maybe indicating that he could support some immigration reform. what is going on behind the scenes? >> house republicans leadership -- house republican leadership wants to do immigration. know this is the population may need to address and a positive way. also, business implications. u.s. chamber of commerce, everyone is behind this on the business side. they want to address immigration. a couple of key things to watch, look at the filing deadline or when primaries finish for the 2014 election. they cannot touch immigration. >> i have like eight more questions. i know in washington, two inches of snow is a major crisis. here in the northeast it is

pretty significant. significant storm moving across all of the northeast of the united states. bonnie schneider with us. lex this time a larger number of people will be impacted. up to 70 million people impacted. hundreds of reports of flight cancellations. lex help me. i am at the heathrow. theyam at heathrow, do tell me to keep the plane on the ground because they do not know if they can land at logan or philadelphia who -- or new york? >> probably yes. right now some of the flights are grounded in chicago where there is a lake effect winter storm warning. getting snow there as well. not just a few inches of snow. it is the wins that will be really strong and will create zero visibility. >> toronto would stay open. every runway.

lex it happens. airports close when there is bad weather. -- >> it happens. of people trying to get somewhere because it is right after the holidays. this number will go up. bad is that compared to other storms we have seen causing flight cancellations? >> i think it is bad that it is already happening so early on, but you look at where we are on the calendar am i right after new year's a lot of people traveling. they are off until monday. the flight cancellations, this is all about the passengers bill of rights issue. claims do not want to have to wait to take off. they are being incentivized to behave that way. >> there is a safety issue.

not only is it bringing heavy snow and wind, but severe, cold, dangerous wind chills. >> you cannot sell me. bonnie schneider will come back. i am sorry. you toperfect excuse for break out your montclair jacket. >> that is true. >> overnight tonight when it is zero visibility you may change your mind. >> there are no windows in the bar that i go to. paypal.of founder of all kinds of innovative companies, almost in equity fever but there is not. and 2000.1999 what is different this time? is a boom, particularly

in silicon valley it is getting frothy. different. it is not as extreme. second, the increase in 1999 was all tech. it was all the nasdaq. it went twice, three times the rest of the market. today it is broad-based. >> we talk about the weather and the digital technology, we have digital everywhere. where is your red flag on digital a? >> it is real. the whole thing israel. just think about this one thing. how much time do you spend with people while they are looking at their phone? it is constant. the world has changed. singular a guest risk to silicon valley's enthusiasm right now? >> i think overestimating the impact of

social media. the valuations are so incredibly high. to come into economics. what about the infrastructure of linkedin? almost like oil pipelines. types ofnd those companies. into your world and financial programs you are working on. what about the infrastructure? >> infrastructure coming along fine. for people trying to innovate, so much easier. running in a and heartbeat. >> bill harris with us through the hour. linking this to the technology world. wonderful closed tuesday. futures make 3.40. >> a lot more coming on bloomberg. the odd takes full ownership of chrysler. that coming up a little bit

later. bloomberg is thellance." this twitter question of the day, after colorado legalizes the sale of recreational pot, should the rest of the country legalize it? tweet us. two states, colorado and washington state. i do not see it across the country. i think it is too heated. >> i would have to agree. >> it is all about tax revenue. they had to drive revenue into the state. my twitter question, what is the correlation of marijuana and drinking more coors light? it is bloomberg "surveillance." ♪

>> good morning, everyone. bill harris, former ceo of paypal. a digital wallet. young hipsters suggest plastic is so 2004. i do not buy it. >> elastic is not gone. it will be with us for a long time. is gone.stic bank debitke my big

card. why should you swipe a piece of plastic? the phone does everything and more. higher security. of the people one victimized by that. what is the pushback? behind thestercard digital wallet? >> not really. the people who will drive it are the old who have the customer relationships already. it will be apple, google, amazon. apple checking out on the floor. to look for in digital and what i do with my wallet. >> i am not sure we will see it by the end of the year, but the thing we need to look for is the ability of your phone to connect

to the point of sale the sheen on the storefront. rather than preaching for the plastic, there is the phone, all you need. towe had an incredible rush digital. statistic isic -- sales were up 80% on the website. do brick-and-mortar need my traditional wallet? lot ofe will be a traditional brick-and-mortar for a long time. the electronic commerce is still tiny compared to physical commerce. however, if you look at the flat tophysical retail, down. online commerce, up 40% over the past year. where is the value in technology right now? what is cheap? >> nothing is cheap for the short term.

i think actually all of the chipr players, the blue- players over the long haul, meaning the next 3-5 years. >> very good. boulder.al in marijuana. q the neil young. ♪

>> good thursday morning. job stated tomorrow. that will be out of week from tomorrow. cristina alesci with us. our guest host, former paypal ceo bill harris. top headlines. >> let us begin with john kerry. he begins to the middle east to take another shot at getting the israelis and middle east to work

out a agreement. in russia, two suicide bombings have the president calling for more security before next month's winter olympics. more than 30 people killed last week in the attacks. russia has deployed more than 30,000 around the site. the northeast getting ready for a snowstorm. airlines have canceled almost 1000 flights. keep snow is expected to falling in chicago and the midwest. those are your top headlines. best snow gear? canada goose? >> a big puffy down jacket. patagonia jacket. it is great. >> are you going to break out

are aontclair >> strong guy. you do not need that. >> none of us need any of this. one week without break below zero. no canceling classes. just let the lumber jacket on. >> bill harris with us from paypal. seriously, the storm, take care. a lot of cancellations. all of you worldwide, check your air pain -- airplane flights. probably some challenges. some snow up top as well. has taken full ownership of chrysler. they have agreed to acquire the uawof chrysler from the

health-care trust. valued out four point four billion dollars. matt miller here to talk to us about it. trying to combine these two companies for a couple of years already. >> an absolute masterstroke. simply amazing. for the past six months we have been talking about an ipo. have said there will not be an ipo. more and more people believing there would be because the union was pressing for that as a negotiating tactic. than $6n wanted more billion. marchionne kept saying i want closer to four. top.at who came out on he got chrysler to pay most of the cash for it. the most amazing part. autfiat inng to help the

so many ways. they will be able to bring the 4c over here. the four-cylinder, superlightweight harbin fiber carp. it is smaller than you. going to be a $50,000 reintroduction of the brand that dustin hoffman drove in "the g raduate." >> what are they doing here that is different then >>mlerchrysler mercedes did? here is what they are doing. christina cannot be distracted from the italian artwork. they are using chrysler to help them do better in italy. trying to help do

better than detroit. they are using the 12 billion in cash to invest mostly in italian factories and help build a new maza roddy. a basket case? >> i do not know how to answer that. so many brands. it has somewhat of not the best reputation for quality in italy. it could be turned around. >> is that because the maza mazarati keeps breaking down? known for breaking down. >> very importantly, this transaction means the shares are less dilutive. >> exactly. it is a genius move. we will see him really pushing

to the united states. unlike in italy, the brand here is not as tarnished. >> what he really has to do the losses in europe. >> is this the 13th day of bitcoin. >> it is not, but i could talk about it all year. i am from silicon valley and hear this crap all the time. it is hogwash. >> an exclusive. bitcoin is, saying hogwash. by bitcoin in colorado. 48%, that is of the climb in nutrisystem shales -- shares since 2007.

a lot of new challenges. bringing back the chief executive officer to win back business. i need to lose weight. where are we? futures make it a fork. dow futures make it a 25. ♪

>> good morning, everyone. bloomberg "surveillance." good 2014 to you. cristina alesci. irick schatzker. early morning.

>> tomorrow. schatzker today. right now we have erik schatzker with this morning's important company news. >> the former editors of all have unveiled the new site. it is called recode. they are being backed by comcast and nbc universal. motorola cutting the price of the flagship martone. is being cut. the most popular high-and smartphone, sam found -- samsung galaxy cost $500 without a contract. preparing to drill the first arctic well this year. the companies are targeting a deposit that may hold more oil than norway's north sea.

webefore we went to break, spoke to matthew miller. he mentioned the big changes in colorado state on marijuana and banging it with bitcoin. we need to get an update on mr. miller. i am not surprised you can use bitcoin to generate tax revenue. >> i only found one dispensary willing to. previously marijuana was only available as a medical, if you have problems with posttraumatic stress disorder or lower back in. back pain. >> it did not seem like it was terribly difficult to get a license. 350 issued in colorado. had completed the

process by january 1. i think the others were a little bit stoned. you can only use cold, hard cash. you cannot pay for your weed with a credit card or debit card. the banks are unwilling to get into this just yet. about it butoke you have really looked at it. smokestates allow you to marijuana for medical purposes and are fairly lax about what constitutes medical purpose. who suffer from cancer or late stage aids. some people with serious problems may need to smoke marijuana. funny things in your

head all of the time. >> eve miller. he was a toque are also. -- steve miller. it is all about tax revenue, right? i think itt certainly will be when the dominoes start to fall and all the other states legalize it as well. when they see the windfall that comes to the state in forms of tax revenues and what that can do, what colorado has helped to ,evitalize the school system dealing with infrastructure. new york city, have you driven around in a car the worst rates of any city. of any city. this is what colorado is confronting. i am not saying it is about tax revenue but about the adoption. this has something to do with washington state.

state, whathington are the legs of the controversial system? you could look to see what are the most progressive states. probably california. >> the federal government does not want to see this happen. the case. not president obama and the justice department have given the nod to say let's watch this. it is an experiment. everyone is watching to see how they do. if there are too many car accidents caused by stoned drivers. if they collect a lot of tax revenue. >> i have learned a lot about it going. -- bit coin. this is going to be a front and center issue. thank you. come back tomorrow with an

update. here is a data check. a little negative. 10-year yield over three percent. economic data at 8:30 this mo rning. good morning, everyone. it is bloomberg "surveillance." i am tom keene. we are on bloomberg radio. a lot of different ways to see smart people. that is what we try to do here. including bill harris. he joins us this morning. have america's number one new year's resolution on the end that is to lose weight. it is for many people. may not be for you. for many, it is drinking more champagne. innovatorsoriginal in losing weight. nutrisystem. sales have been cut in half and

made new competitors. the ceo of nutrisystem joins us. thank you for coming in. thing, on the lower end we have the startups that offer a lot of the calorie tracking technologies for free. on the higher end i'm at the very expensive systems that focus on the quality of food. where does nutrisystem fit? >> it is for the mainstream consumer. we embrace things like fitness trackers. we embrace things like that. we see it as complementary to our program. these do not offer portion control to the system. we think the combination are very powerful. the quality of the food has been an issue for some consumers. >> we focus a lot on food polity. we have over 150 varieties to

choose from. year gekkonew this everyone makes the same resolutions. they implement the plan on january 5. i think we're done about january 20. what is new for you >>? we have a new fast 5 kit. system targeted to individuals metabolism and it helps you lose five pounds in the first week. lose i pounds. within that, how will you sell that too boring, lazy people like me what is a behavioral thing i will change through product? >> people go on the program and have the early success of five pounds that helps them stay on the program longer. being able to lose five pounds in one week and then stay on the program longer. we have maintenance and

transition programs. to regularon back food. we have an online site. people come in to do their weekly weigh-in's. we have counselors available for chile 24-7 that people can come and ask advice to. >> do you monitor how long people can keep the weight off? individual amah but we see people with early success heat the weight off longer. that is what we track and measure. but it is a cultural thing as well. how do you adapt across different parts of america? >> it is different, specifically for men and women. so women very much an emotional issue. not think about

it as much. they do not assess about it. >> bill harris with us. nutrisystem does better. >> i think it already has. brilliant. doing is you are helping people with their health. we are helping people with finances. the key to doing that is tech. technology. it is also the counselors. interaction,uman people will not do it. we have advisors that work with you alongside tech. drops for them kids. i ate them all. >> i will send you the fast five. >> maybe he needs fast 15. >> this is really intimidating.

i am working out more. i am trying. i are going to go to the gym together. futurese are we? negative three. ♪

>> conservatives hate him.

progressives love him. unimportant book on the progressive movement. gene sperling. always interesting. taking a victory lap on the affordable care act as well. this is bloomberg "surveillance." scarlet fu defended -- demanded the day off. we said of course. cristina alesci here as well as we get your year started with a form on the east coast. bonnie schneider with us. going right back to the basic question, where does rain become snow? the treacherous icy surface, where will that be? >> right in the mid-atlantic. we have icy patches. a huge concern. look at all the radar -- the rain and working its way in from virginia. coming into such cold air, that

is why it is going to be a big storm. a combination of really cold arctic air and moisture coming in and sticking around because this is a storm where the advisories go through friday at 1:00. >> we talked earlier about the definition of the wind. it is not funny. europeor those of you in . fahrenheit temperature, where does it get serious? that temperature gives you concerned? >> anything below freezing is concerned. this particular storm am a very strong wind. the wind chill will be at zero. it will be dangerous. not some bogus concept? >> no. when we measure temperature, we

would measure on top of a building. we were not thinking about what it was like at the surface. i am fine. too cool for school. third. of the winter classic they have to split because of a ice, wind. >> not perfect hockey weather. >> depends on what you think of hockey condition. >> they were shoveling the snow in detroit. >> pond hockey. >> it depends if the wind is blowing in favor of your team. >> this is not atlanta. snow will it be,

the heavy stuff? many people are injured or shovellled trying to snow. in boston where we will see a foot it will be more light and fluffy. lex loved having you. will you be back tomorrow? >> yes, i am. >> she fell asleep three times in december. cristina alesci on a more busy merger and acquisition year. all that next. ♪

>> he is the most interesting man in washington. james lockhart. he does a lot of things with financial policy. he will join us tomorrow. always insightful. this is bloomberg "surveillance." we are in the newsroom. i am tom keene with erik schatzker. cristina alesci with us as well. bill harris with us, former ceo of paypal giving us a digital perspective. samsung,ng with chairman says his employees need to think differently. samsung has to move

beyond the focus of hardware if it wants to keep growing. shares fellls -- for the first time last year in five years. netflix tasting -- testing a new price structure. this would force customers to pay more for additional family members. the plan, i think it is pretty obvious looking for ways to curb account sharing. the hacker has published names of 4.6 million people who use snapchat. the company is not commenting. the wall street journal says it was mourned months ago that the data was honorable to hackers. >> unimportant conversation. though harris former ceo of facebook. -- paypal. capital.h personal

the heart of the matter. whether it is me buying a bowtie buying champagne. should we be where reed? >> the good news is the security situation, despite the headlines, the target and all of that, security electronically on the web and your phone is getting nothing but better. >> better is not there yet. lex better is completely adequate. doing a companies are good job for security? >> there are a number of them. better isking it mobile phones. they are a terrific way to enhance them. the biggest problem online is knowing the person out there claiming to be you is actually you.

the phone is a great authenticator. it has a unique number. >> is it really? wal-mart wants to make the transaction frictionless. go to thet have to cashier to check out. how secure is the system? phone and somea kind of password or personal identifier number that is very good security. people use this all the time to get cash. why is it that when i go to the apple store i still have to swipe a credit card? >> that is the biggest mystery in silicon valley. apple is the company that can revolutionize electronic payment and have not yet.

>> people do not want to swipe their finger on their phone because they're concerned about sharing the information with the company. right? the fingerprint itself is stored on the phone and never transmitted. could be hesitant to adapt this technology. they do not want to turn over more information. >> companies are making money off of it. companies are monetizing tracking this. >> that i agree is an issue. time you go to a restaurant and pick up a glass of water and put it back down, that restaurant has your fingerprint and dna. it is not apple. i am wearing gloves now in restaurant.

the agenda of 2014. very interesting. you know the s&p 500 was up 29 .6%. the turkish lira. replaced.re why are we so afraid to go into equities as we begin the fifth year of a bull market? cautioned.d be a bit i am a student of behavioral finance. rationally you can say it is up and ready percent. still not unreasonable. regionally there is biased. the froth now -- robert shiller won the nobel prize, do you see the frost that

was their? >> yes, i do. the single most important thing in the thing we are shouting off the rooftops about is discipline. discipline diversification for the new year. no reason to pull out of equities. most people buy high and sell low. do not be that person. >> why are you looking at me like that? why -- how does he know my investment plan. is?ou know what time it >> time to shave my fingerprints off. this has been fun. >> we will do it again tomorrow. more talking to do. >> my agenda is merger and acquisitions. looking for it to be a busy year

. a lot of the headwinds that happened in 2013 clearing up in 2014. another headwinds was the government shutdown and all of the disruption and washington. that seems to be clearing up. this points to the fact that we will have more deal activity next year. that is what the bankers and lawyers said at the end of last year. to believe.now what looks like pointing to a positive merger and acquisition flow. >> one thing we have not seen a lot of its strategic eel making. company ceo saying i need something. my company wants to grow astor then whatever the rate of inflation or gdp. i have to go ahead and buy new technology or argan share somewhere else.

not seen the risky deals. see.at we will people need and will make strategic acquisitions. it is people who have great valuations. now is the time to use the even more, and importantly, it is across the broad industries because so many industries are being so rapidly changed by technology. rathered to buy that than build it themselves. if they build it themselves, it will be too late. >> my agenda, when will banks earn the cost of capital? you are in the financial services business. if you look across wall street, that are only two firms earn the cost of capital. if you figure it is between 10 and 12%, it is only goldman

sachs and j.p. morgan. that means by definition, they are destroying shareholder value. do not pay attention to the stock rice, you are destroying shareholder value. year that these firms finally stop destroying shareholder value? how will they do that? >> the yield curve will help. >> i do not know when, but the one thing that will happen is rising interest rates. with interest rates where they are, almost impossible for a firm to make money. the brokerage economics comes from free cash balances sitting there. if you are paying half a percent or less, that is fine, but you cannot make anything. run out ofbout to

time. thank you very much. bill harris. cristina alesci and i let him. tom keene back with us tomorrow. liu on bloomberg television of next. stay with us. ♪

>> good morning. thursday, january 2. live from bloomberg world headquarters. you are "in the loop." i and deirdre bolton. obama administration pushing

congress to restore jobless benefits for more than a million americans. unemployment checks were cut off last week. we will speak with white house economist gene sperling. it is a rare miss for a warren buffett. for the first time in 44 years, berkshire hathaway is likely to fall short of a key benchmark. he normally added wealth rapidly over a five-year period, this year was different. long lines in colorado, stores able to sell marijuana legally for recreational use. the state trying to make sure legal marijuana does not make it into the black market. denver's airport signs warn not to take the drug home. street to wall street and pay. shares of banks coming off one of the biggest annual rallies and 15 years, a boon