antidepressants. >> that sounds pretty depressing. thank you for your time. we will be back on the markets in 30 minutes. "street smart" is up next. ♪ >> good afternoon, live. i am cory johnson. >> i did not have heat in my apartment this morning. welcome. it was really cold. we have breaking data coming out right now. consumer credits come in a bit light for november. >> the numbers will be the interesting ones to see. ,eople are taking out loans jiving the auto industry and the economy. >> the fed minutes a simply

saying, diminishing economic bondit from the bank buying also seeing risks to financial stability, but we do not get a plan to unwind that tapering. we do not know what will happen with the penny. i was watching that this morning. it shows investors where progress is being made. in december, they did not come out with those sales. >> the market really facing a lot of trouble, we see it in all aspects of the economy. you see tiffany's blowing out numbers and jcpenney with risk. >> they did say it would improve this quarter. >> we will see. >> cori is not shopping in the jcpenney corner. continues to be in the news and ali baba is following the way china is

really pulling out of the bitcoin system. ali baba is banning bitcoin in transaction. the battle continues to go on and we look at this. >> includes mining software and the.are for the current the whole enchilada. let's bring in our guest host for the hour, the man behind every single thing you have in your home. in the morning, a cup of joe. a crockpot cooking tonight's dinner. not to mention the camping gear that quarter cannot -- cory cannot wait to use. help put all of these under their umbrella. he is now the executive chairman. have youeasure to here. >> a lot of interesting things going on.

you are an avid sportsman. you have done amazing things. endurance sports, long runs. masochist. >> this is 135 mile run through the desert. they banned it, citing it was too dangerous. and yet, you decide to do this. >> it was a lot of fun. for wounded warriors and ran with one. it may be in the picture there. that is the loop -- the wounded warrior. >> it took how long? >> it took me 41 hours. you have 61 hours to do that particular waste -- race. you drink? water did >> 150 bottles of water and gatorade and about 200 bottles of other kinds of fluid.

>> i cannot imagine. noticed withng i people is wearable technology. there is talk of google glass. it is one of the themes coming out here. i am a regular user of a fit bit. you have been using wearable -- >> i have a garmin. that is the thing i use. now i have got these technologies, a heart rate on your watch as opposed to wearing a strap. that is a big plus. i am not the measure at the moment. >> you wear the garment. >> i am running with my phone strapped on to me, listening to music or audio books or whatever. i met with those runs. jon erlichman is in las vegas as

well. before we do that, what i want to ask you is, when you look at dose emerging products, how you decide if something is markets or is not. much more mature company. much more mature company. we try to partner up with technologies that can transform and enhance the products we make. we partnered up with belkin. we are creating things like coffeemakers and crockpots. crockpots that can be operated off of a nap. -- in at bank -- an app. >> talk about the wearable tech. i never wear any. i want to see what jon erlichman is wearing. what is it? one thing we figure we would

highlight, this is the latest smart watch. when we first started talking about them last year, samsung had a galaxy your watch. it would sync up to a very specific samsung device. they broadened out a little bit. it works with an iphone and ios and an android device. you talked about the idea of something being an extension of what you are already using. it is an important point. the grab after smartphone and tablets, do they become an add- on? it is too early in the game to know. a lot of companies will see the example.nd this is one we see a lot already. and a lot of cool technology. you can track a lot of cool

stuff. cory would be going nuts. a lot of times, it seems to be going for a single focus, which is fine. >> have you seen any products out there that have a longer life? i know there was a battery on it that show the lights then. that product and they tend to work eight hours or nine hours. lastsre anything that multiple days? >> good question. some people are making the pitch. i do not know how many days. people are trying to get to the 24-hour four hour plus cycle. that is a fair point. people are trying to make devices that would be easy to charge so you can get the same kind of way to charging our phones every few hours.

>> in terms of product, looking at the way the population aged and the way the a.b. boomers would lend themselves so people magazine. do you look at the demographics of people getting more involved in fitness to decide what you want to be in? >> absolutely. missionuct cycle, the is to make products at a reasonable price point. in particular need. a sporting goods, we have broad-based to make products hit every age group and mold all countries and different tastes. >> you see john mayor. what is more important? your brand or your product? >> we are about function over fashion. fashions come and go. fashion becomes a part of it. you take some of our products

and these are functional products that stayed fashionable because you continued to innovate. just because something keeps you warm, does not mean it has to be unattractive very >> you are saying you are not a tech guy but i have got to imagine you keep an eye on products that might make other products possible. these things, one of the settings, if i am not active, it will have the technologies that let me know what is going on. that creates all kinds of possibilities. are you trying to keep track of that? >> absolutely. we take some products only available in professional use and take them into the home. we have been very effectual with that. food restaurant is storing for their restaurants. these are now brought into the

home. a great product. we are on generation four of that pot of heard it makes a difference. >> six at -- sit tight. we will be with bloomberg tv for more than just today. we will be back in two minutes. ♪

>> welcome back. could our cohost, maker of everything you own. and mike is joining us for a live -- a very long day. >> you are on the board of burger king. a big debate across the nation about extending the minimum wage in making a big jump in minimum wage. what is your take? >> if you want to increase employment, a big jump is a good

idea. find a way to do more with people -- your people. they aregress, floating a potential jump to $10 and $.10. >> that is too much. >> i am not objecting to the idea of an increase middle wage these large debts are a mistake. they do not get the desired reaction for employers. >> the idea is not to jump costs. long,gets ignored for so we are going to have minimum wage, should we not have it at a level where it does it job? >> it is gradual. it has to be done in a manner where he get the desired results. is this -- it does not help someone who loses their job. it does not help the system. logical and some

studies found it is true and other studies found it is not true. the way wages have been going in this society, you are losing your customers. you are hollowing out the group to gople who can afford to the restaurant. >> i agree. i think the wage needs to rise. in a mannerbe done where you have economic activity in lockstep.to go doing things in knee-jerk steps is not good policy. it needs to be done in gradual steps where the market can be islt into the system so it not anything but positive. >> 13 states have already waste -- raised of a minimum wage. california in particular is looking at an increase in the next few years. what is the breaking point? where is the spyware companies

get hurt where it gets raised to quickly but where people can live? >> people who get the higher minimum wage and spend it are more likely to spend it then and the other. -- van any other. -- van every other. -- than any other. >> when you are dealing with places like burger king, it is much more impactful. >> what is the ratio of what you paid to what you earn? how has that changed? >> in terms of what? >> are you paying less of your profits? >> i have not thought about it. we have a global business. i cannot think about just the u.s. off the top of my head.

salaries against what the overall company earns remain relatively stable. it has not changed are medically. >> you talked about different studies. what have they shown the? whenever this comes up, there are two discussions. one is not what we are having here, completely against the idea of minimum wage. is no conclusive evidence one way or another. him studies show if you raise middleweight, it tends to cause people to be higher. other studies show when you compare it to places where they did not raise the minimum wage, there are different things that can happen and companies can raise their prices to take account of it, or they can bring in more technology and now maybe people do not get hired but people do not lose their jobs area there are a whole lot of things that can happen. manufacturers good in

foreign companies and we look all the time at where we will many of asher years down the road. some of the products today because of movements and wages in china, we have moved some product active united states. what happens is when you start moving the bar again on employment competitiveness, you run the risk people considering moving manufacturing back to the u.s. choose not to do so. i think overall, i am not advocating one policy over another. you have to be gradual with any changes you make even if there is a catching up to do. click service industry like burger king and mcdonald's, it is in a very tenuous place. you're looking at three percent if you need to offset rising in salary. the click service restaurants have less than three percent pricing power a year. that is a rough business.

>> these discussions have been on the board level. you say what is our plan for the rise of minimum wage, -- >> absolutely. some of the things we do when we decide to build a new facility, we have been building a number of new facilities in the last two or three years. we evaluate alternatives by country. we look at how much working capital we need to keep online, sourcing keep brodie's, transportation costs, all of those factors go into the equation. labor costs are a big factor at the end of the day. what has been happening is as wages go up in china, alternatives including america and south america become far more competitive. >> fascinating. thank you for sticking around. we are back in two minutes. stay tuned. ♪

>> welcome back. i am cory johnson. it is cold outside in new york. we're folkie on outdoors. so awesome. take a look. >> i did not notice. we are in fact wearing this gear. so awesome. take a look. > we are with the ceo of the maker of the codes. this would have been great when i walked into the car. here is the deal. i am keeping it on. after a squirrel. >> no. a moderate.

>> is it like a squirrel? >> no. >> you might have a competitor in the form of a goose because the canada goose has become the cold weather code du jour. the cover of sports illustrated .nd they are expanding here what kind of risk do they pose to you? >> not a lot. the brands we are closer to as a , we have been growing our business here. --n he bought a company sales were about roughly a hundred million dollars. they are at least triple that monmouth. we are continuing to grow at

double-digit rates. we are broadening the product line. it is not just about outdoor gear. we are now awakening our all seasons products through our spring line. stronger and stronger. retail stores we are rolling out. >> i looked at k2 around the same time. bigd not see this as a piece. did you see it in their as the thing that could really grow faster? >> it is a good question. there were a lot of little things we thought were real gems and this was one of them. it was not the only one. >> why? what did you see in it? >> we saw a brand with a lot of authenticity that had not been aggressively invest it in that had done a great job with the resources allocated to them. a brand ready to breakout

out and we saw other brands in a competitive base that were maturing. break out in a small market. it is not all outerwear. market player.he everything we do is to try to be a market leader. >> cori, will you buy me this coat? >> sure. >> april 28. it is coming. 26 past the hour. olympus durance -- olivia sterns is checking it out. the session.se to the dow on the s&p in the red. the nasdaq is pretty flat. there you see it in the red. reacting to the minutes we got out earlier in the morning. the fed saying it sees diminishing results from its bond buying program. they are reacting to job data we had out earlier. the u.s. economy at a two hundred 38,000 jobs a month of december.

shares in twitter down again for a third day. downgrade.to morgan stanley did it earlier on this week. we will be back on the markets. ♪

cliff a comeback. class we are back. >> a lot of interesting stuff going on. you have been doing other side products. looking at the chemical business. >> that is true. >> what do you like about it? >> all of the chemicals. i have focused on -- my career is market leaders in niche markets. i have been trying to make the things iutside

have been building in the consumer space. but i found is you can find really interesting niche markets that are competitive. and the characteristic that characteristics are superb and are driven by things like industrial activity. the platform business that asested really fits the bill being a market leader, focusing on high touch products worth having technicians and the like -- >> yes, probably the wrong description of what we have. >> jargon alert. >> what we traditionally think , it is much more akin to private equity. there are no road structures related to it. when you go to do a transaction,

you commit to a transaction. it creates a public trading company. >> $8 billion. >> we completed that transaction. it is now trading and we have moved from the london stock exchange to the new york stock exchange. that process should be finished by the end of the month. no particular preference other than i am experienced with the new york stock exchange. to do foris much more you -- differentiation. hold l wringing. helps the feel-good factor for the stock. that is all. >> you mentioned a specialty chemical company opened a lot on cars. cymer electronics.

are you bullish or is there one toparticular that you want buy for? >> i like the overall niche nature of the business. businesses -- good economy or bad, they will continue to grow. automotive, by nature, it will depend on manufacturing automotive. the reality is they have got a great market position and very protective around the businesses, which is what we look for. is the same thing we look for in protected mode around the job. the philosophies are similar but totally different businesses. >> what will you target next? >> i do not know. there are a lot of basic industries we like. we are focused on looking for other companies that could benefit

from unified relationships with customers. >> defined high-tech. >> the company, about 2000 employees, chemists and technicians. high-tech meaning, if you are a theomer, you need to work manufacturing process with those property, which makes a stronger bond between the company and the customer. you could earn higher margins. >> those relationships. it can be rude -- tricky to hold onto. you are hiring and firing. >> exactly. i will tell you the most important lesson i learned a look at theo, you annual report, everything will year when i was chairman of the company, we set the most important asset to go home every night there that is the reality. every business is about people.

>> it is one of the more interesting ones i have read. >> fascinating. we will be back and we will talk more about your businesses, especially chemicals. good to have you here. we will be back in two minutes. ♪

>> welcome back. we were talking about a lot of stuff in your business. so many different places small ways and big ways. one of the most transformative deals you have done, the yankee candle. toss me about the business and what you liked.

candles, as simple as you can get. it is a high cash flowing theness. it fits all criteria. it came with what i thought was very reasonable from a cash flows. >> how do you come up with it nowadays? >> a lot of the changes all the time. of it is not because of what you do but what you choose not to do. we have been disciplined. multiple acquisitions through high cycles evaluation. is that you tend to only be able to do a high- quality quality transaction when markets are higher. buy markets, it is hard to

the company. >> they do not want to sell it to you. class more distresses. of merchandiseot available. quality merchandise, it is easy to buy in up markets. i do not think we overpaid for anything. part of the success is we have been a disciplined buyer. we have missed some things. i have no regret nor do our shareholders. do you think their evaluations will continue? on other opportunities this year? >> the trick is you come behind her desk. , it hascome to found

not been sourced traditionally through auctions. we have never bought anything through auction. i think evaluations are pretty full. relatively low. before the -- affordability factor is higher. if rates go up in any meaningful will not only be full but less affordable. >> i wonder. i was reading up on the yankee candle. i see 20 in walmart. jarden has got 20% of sales in walmart. can you move the sales and how is it going? >> the reality is we have a close relationship with walmart and a lot of goods. disciplined.

we are working on it with them. we will be and we have been there in the right way. >> brands like how to sell it? >> no. , one are certain brands retailer versus another, and we tried to accordingly. the best pricing strategies and all that kind of thing. we have aice points, strategy for them. that has been developed. we tried to do it right. >> western europe, so you have strong distribution there. is that an opportunity you see now or down the line? thes a percentage of overall yankee candle business, international growth will be the biggest factor not just in .urope but in south america

very good retailer relationships. we will take distances, not just growing out of the u.k.-based platform that exists for yankee candle into europe, which we will continue to drive, but also in south america. >> how do you know what brands will work overseas? if south america is so different than western europe. >> i can think of a few choice countries. y will probably not do well. seriously, when i look at the business, i see a business robbery growing at six percent a year. with your distribution, you could be looking at 20% and 30% gains once you get into the fast lane. percentrowth is three to five percent. the average compound and organic growth has been four percent across all. the growth of yankee has been

higher than average. we are hoping the yankee candle will help enhance our average growth. we try to leverage revenue opportunity. >> your cost-cutting is one percent to three percent. that is requiring the yankee candle to cut costs out. that is kind of low. >> we are investors. it is a core difference. >> we try to increase our investments every year. overall, spending six percent of sales in brand investment. that is roughly eight lien dollars of sales. we think the consumer product bypanies have to grow investment and innovation and continue to be fresh for the consumer. you cannot cut your way to glory

in the business. >> interesting. it is sounding buffet like in approach. i wonder if that helps you buy some stuff because people like that kind of strategy. >> we will find out. stay with us and we will be back in two minutes. ♪

>> welcome back. i am here with cory johnson. we are also here with the founder of jarden. aside from that part of your life, you have another part where you make your own acquisitions. when we were talking about earlier, pushing square, 28% of that. you have had a long history. how did you two meet. >> less than 20%. court,on the tennis probably about 20 years ago.

we were more friends than business. we have done a few things together in the last few years. a vehicle, just as holdings, which made the vehicle acquisition. he has been at -- a great investor. he has been at -- a great investor. >> how do you know when it is right to bring a deal to bill? >> good question. >> i have never brought a deal to him. ideas alled different the time and he is very savvy. they tend to be very focused. i have never been involved in the idea generation at all. we have looked at things together. >> a lot of attention but his numbers have been solid. what makes him a good investor? >> he is an all in investor. he encourages conviction. is very thoughtful

about his investments and gets a lot more attention for the ones that may have gone right, but he has had a lot more that have done very well. >> i agree with you, but describe what you mean. >> he gets involved. for better or worse, he gets involved helping with strategy and giving his opinion, as opposed to making investment. work, they pride themselves on knowing every last investment, every every kind of employee, where the ceo lives, what kind of customers they have got, knowing things on a level that few investors on wall street do. >> the hedge funds in general, they are outsiders. every company i've ever bought, i do full due diligence as an insider before i put down any money.

it is a hard thing to do from the outside. he does as good a job as any trying to learn as much we might know, but as an outsider. >> you mentioned burger king. >>t did you learn from him? i learned he is a nice and fun the guide. guy.n he is a better tennis player than may. he has beat me more than i have beaten him. >> you learn that. what is a distinction? how do you feel as the ceo as activist investor, it they took a stake in your company. bullet they be like? -- what would that be like for you? >> my dad, in the takeover business, used to say, i do not

think they make poison pills. if i could think of something that could create more value, i i do not mind it. anybody coming in and being a shareholder. what i do mind is someone looking out for themselves at the expense of everybody else. we have not had that because people no friendly and shareholder oriented, and we are open to ideas. ofthe founder and chairman jarden. >> a pleasure. i want to chat with you or another hour. >> we can just not on tv. >> after the break with the closing bell. class we will be back tomorrow. we will see you then. ♪

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>> the law of diminishing returns. fed officials recognizing the declining benefits of qe. the street smart is headed into the close right now with markets lecture waiting, some members might be ready for an even bigger taper. we want to get straight to the top 10. number 10, apple, the company will open its 10th store in mainland china this week. 15% of the company, i believe, has pledged to double outlets in china to meet demands. >> time warner cable, the company says that they lost 215

thousand video customers in the fourth quarter. obviously got -- obviously battling mounting providers -- mounting carriers. i keep waiting for cable to show up on my iphone. i just want to watch tv on my iphone. >> i have apple tv. very cool. an raid, new path, offering unsolicited bid. pay 100 $50 to million, well above the proposal of 105. >> number seven, micron technologies. first-quarter revenue topped about $4, moving to billion, most of it based on the july acquisition of the japanese semi conductor maker. >> the container store, reporting its first quarterly results as a public company, earnings beat analyst estimates, but revenue fell short. money coming in through the front door on the top line, consumer traffic at the container store may continue to

slow down during this quarter. up nine percent, third-quarter profits beating analyst estimates, the company also raising profit forecasts on stronger outlets for beer business, which is a big deal, this iseen struggling. actually something to highlight for the beer industry. just close the big acquisition of corona in this country. >> the distribution of it. >> with ownership of distribution in this country, as well as the brewery that makes the u.s. sold beers. >> however, it is really specialty beer that i like to drink. stuff? belgian >> yes. specialty beer, local beer, i like going to breweries. >> we digress, we need to get to jcpenney, everyone, totaling 10%

after releasing its holiday results statement, reiterating their fourth quarter forecast, that they would leave with their fourth button to provide specific sales figures or december. >> twitter is down three percent today, falling for a third day after another downgrade. cantor fitzgerald upping the valuation to excessive, 300 times cash flow. twitter shares debuted in november at 100 45%. >> analysts are coming out of the woodwork's, saying downgrade. >> number two, forest labs, the most in 16 years. this acquisition will allow them to expand into gastrointestinal and cystic fibrosis treatment. an earlier tweet said that activism proves to be working well. >> here we are, the number one stock of the day, ford today, up . microsoft, down two percent.

[closing bell] the ford ceo has taken himself out of the race to be the top dog at microsoft, declaring that he will not leave for the tech giant, despite recent speculation. a market ending up almost four points there, the s&p trading -- well, we will see how it all checks out. the dow on the s&p, jones industrial average ending down about 70. an interesting day, we heard from fed officials and what they suggested. it is the fact that they are recognizing the law of diminishing returns. in other words, you can only taper so much. at some point, the effectiveness wears off. >> qe1, they had to do. qe2, they decided they needed something bigger. pointe3 -- there comes a at which you can only throw so

much money into a market. >> market did not react very dramatically to that. we saw a steady grind lower after the minutes came out, but the rally pretty much last year was that they were immune from the fed chatter, which is interesting. >> we have some breaking news on t-mobile that i want to get to. t-mobile shares, they were halted towards the end of trading there. t-mobile saying that they added more than 1.6 million subs in the fourth quarter, having their best quarter in eight years. is that correct, that they were halted? right at the close of trading. some fairly good news for them. beenntext, they have adding subs and creating stronger levels, but the revenue for additional subs has not been strong. >> in other words it is costing them additional money? >> they are getting more customers, but not more money. the low hanging fruit has been a

struggle for t-mobile. been adding customers, but not the ones who are the most valuable. >> the ceo will be joining us from ces. >> john leonard? >> john leonard, in the news yesterday, he got kicked out of a party the night before. >> the at&t party. >> they caught him there in that hot pink t-mobile t-shirt. >> by the way, they have got what, four percent, five percent market share? >> they are making some aggressive steps to get there. the cost of the marketing that the ceo is bringing is helping them to do that and gained some attention. let's not forget, these are capital-intensive industries. companies that need to borrow a lot of money to build out the way they are looking to build out. >> all right, let's get to the roundup. we are very lucky, stories ahead of the open tomorrow.

our special guest is with us and he is a comedian. >> yes. that is what he tells me -- what they tell me. >> business can be funny. being- the t-mobile ceo kicked out of the at&t party? >> that makes me want to buy t- mobile products right now, except according to you i am too affluent. are definitely a verizon customer. >> i had you pegged for at&t. [laughter] comedians, looks like marissa mayer is a bit of a comedian herself these days. an snl skit, of sorts. >> the consumer electronics deal him us vegas, they took the stage with some help on that. david pogue, from "the new york times," going to do some special services for them.

as well as some digital magazines built around technology and food. has some product problems. the most popular yahoo! products are their homepage, yahoo! mail, yahoo! sports. these guys, i think they recognize that people who have set yahoo! as their homepage browser might have done it by accident. >> earning his up what, 24%? i sort of feel like yahoo! is the -- i should not say redheaded stepchild, there are some wonderful redheaded stepchildren out there. >> sure. >> put it like this, they are the redheaded stepchild of a black family. [laughter] now you can go ahead. >> you know what? that is in my wildest dreams. [laughter] >> that is not what you see when you go through silicon valley. >> the question, like you were

saying, is what would they be worth without allie baba? hold them -- hold that thought, some not fun things to talk about, macy's cutting 2500 jobs, just coming out with earnings, saying that they earned an eps of 440 to 400 50 per share. estimates were for 436. they are anticipating cost savings of $100 million per year because of these job cuts. >> exactly what you do not want to hear, cutting jobs and saving money. that is main street versus wall street. cutting jobs to improve the earnings picture. >> one quarter, two. talking about things that are far out, it makes me wonder what the quarter is looking like and think and that maybe it is not that strong. >> the holidays are looking bad. king,onald's, burger facing some struggles. the rich getting richer.

high-end retail doing very well. the fact that economic policy has been to boost the stock market, continually getting more disparate, not helping some retailers like macy's. >> j.c. penney, also, coming out with similar same-store sales. >> i am a macy's customer. too.am a macy's gal, >> this bothers me. part of the problem is that everything is on sale all the time. great for me, bad for earnings. great outfit, as far as i'm concerned. isthe summary here, macy's coming out, saying that they are raising their earnings forecast for 2015, looking at estimates originally that were for 436 per share, reporting that cost savings is coming from the jobs that they will be cutting, five stores that will be cut --

closing. certainly an education on the retail is that facing. >> at the end of the day, people are looking at the numbers. >> we have another retailer to talk about? >> barnes & noble promoted their new ceo from cfo. barnes & noble had about 670 stores. they were heavily into the note. the knuckle what? nook.vily into the what? >> the interesting thing about alix is that she take the opposite of what you might intuitively think. were example, alex likes best buy customer service much more than, say, apple customer service. have great customer service. >> really? >> thank you very much. most certainly has a

nook. >> i have neither, just the ipad. i actually like the things that you open and turn actual pages. it is a difficult business that has been really struggling, trying to turn around. perhaps the founder will be coming in. is putting a big chunk of change on the nook, but the kindle and i've had a really dominating the tablet business. amazon really keeps that stuff close to the vest. >> he is like -- i will just buy them all myself. i don't care if the numbers are down. i will buy every candle that there is. >> and the washington post -- "the washington post," in the process, too. >> kindle, you can only sell them at a loss.

>> the business model, he has admitted to that. he does not care about making a profit on the kindle at all. >> amazon is selling more physical books. >> here is the thing i like about arnzen noble. i love the fact that the only way i can convince people that i am smart is to have them see me coming out of a barnes and noble. you cannot do that with an ipad or a kindle. and you reader, -- n you reader no one can see how smart i am. >> you have to be near barnes & noble to have that payoff? >> i take pictures and post them online. >> do you just walk around with the bag? >> that is right. i do not buy anything from sacks, but i have plenty of their bags. >> guilt by association. in the good kind of way. talking about guilt, this is unbelievable.

nasa was building a rocket stretcher that cost about 300 $50 million. there it is in mississippi. turns out they have to spend another $57 million. congress has said -- ok, you can finish building it, even though this thing was built starting in 2010 for rocket engines that are not used anymore. >> they are not using this? >> these were rocket engines originally associated with the -- the spacespec shuttle program. >> that all got outsourced to billionaires. >> congress said that we can go ahead and build it, in part because they said in mississippi that this is good for the constituents. >> republican, by the way. just saying. >> [indiscernible] >> republicans would supposedly be the first ones who want to trim the fat. but spending money for no reason.

>> republicans can finally say that they have a jobs plan. >> that is right. it cost 840 thousand dollars per year to maintain the thing. >> there you go. >> this is the whole government spending issue, right? do we trust the government at the end of the day to be the capital?cator of >> no. >> thank you. >> in the defense of the government, here's the thing, this was built at a time when we were still building rockets. the real issue is why we are still building it, but at one point it served a purpose and it could again, once version actually starts shooting things into space. >> elon musk, also, perhaps spacex might -- >> what do we think, the government might be able to spin this off, so to speak? >> admittedly, it is located at the space center that employs

about 5000 people. back 40.the >> if you are a private enterprise at the end of the day -- private enterprise, at the end of the day you will not spend something -- spend money on something you don't need. havergin galactic, they said that they are going to fly this calendar year. they are trying to get into the satellite launching business. spacex, run by tesla. >> it should be one of them. >> there is a battle right now over cape canaveral. each of those companies wants to get the right to run that center exclusively. that is the one they have been negotiating over, but all three of the companies have been marching fast towards the space business. i will give you a tease, but i went down to the gravity flight down there. >> you did? >> i was going to go zero g, but they take you in these parabolic loops.

some people did not do as well as others. >> how did you do? >> i will not ruin the story. >> oh. >> i kept it clean. >> nice. >> did you see "gravity"? what did you think? >> it was a good movie. --e's the thing >> fulda slowed her, adam and i did not like it. >> scared me. >> whenever i watch a movie and i'm like -- that can happen, , that ishat can happen my call. >> suspension of disbelief is the job of the movie. >> i'm glad you said that, i feel a little bit better. how about the fact that, you know, that there was nothing that we could, you know, relate to about these characters? >> what are you talking about? the fear of dying alone in space? like she was all alone in a

spacesuit, floating around. >> do not go anywhere, chuck. we have another story we want to chat with you about, shortly. chris christie and new jersey. hold on one second, we have more news breaking on macy's. we want to go over to mark crumpton in the newsroom, with more. >> let's reiterate some of those headlines. macy's saying that they will eliminate 2500 jobs, shutting down five stores. macy's saying that the changes will save $100 million per year beginning this year, 2014. other headlines, macy's sees fiscal 2015 earnings-per-share at four dollars and four dollars 50 cents. the estimate was $4.36. of 125ve the charge million dollars, they are saying they will eliminate 2500 jobs as

they shut five stores and that those changes will save $100 million per year beginning in 2014. back over to you. took, one more story we want get to, quickly, with chuck on the set -- this is fascinating, apparently there were some e- mails obtained by "the new york times." governor chris christie, allegedly closing a lane on the george washington bridge in retaliation -- this was in september -- gridlocked for four days, apparently in retaliation or payback against the fort lee mayor who declined to endorse him. >> that is rough. here is what i do not understand about this. first of all, in his defense, chris christie said he had spoken to his whole staff and they asked -- and asked them if they had anything to do with it. but he did not say whether or not that included a mirror. [laughter]

he did not ask himself. quite frankly, we know where this came from. if the order was given, it was given by him. i do not understand the whole thing. barbara buono was never going to win that election. she did not stand a chance after sandy. it is like the globetrotters against the washington team that they play against. if you look at the harlem globetrotters and found out that they cheated, you would be like -- why? what is to game -- what is to gain? i hate to say this, but you know, let's take a term from the hip-hop culture, when you play at home. gangster.hat is straight up gangster. at the end. [laughter] >> so good to have you here today. we will come back soon. really great perspective.

thanks again. coming up, more americans going back to work. that is good news. when we are back, more zuckerman is joining us. -- more to zuckerman is joining us. zuckerman is joining us. ♪

>> more americans going back to work. this is good news. here we have a little bit of insight and action. this morning's adp report, the guys who process paychecks for about 30% of the country, they have a pretty good sense for what is happening out there. look at this, 238 thousand more payrolls were processed in the month of december than in the previous month. that is a very big deal. more americans are getting paychecks. the trend over six months, about a 13 month high. look at where the jobs are being created. all of these new paychecks? it is pretty broad-based. again, that is pretty good. professional jobs, 53 thousand

more of those. interesting that it happened in december. you do not usually see construction jobs going up in december. that is a big positive. financials, only 10,000. we have enough bankers, actually. that does not concern me. this is the key, america, going back to work. adp a role data over the last 10 years, look at how closely stocks follow the jobs. we decided to look at companies in the s&p 500 that are hiring the most. believe it or not, there are only about 10 that are hiring at 10%. visa -- whatron, am i trying to say? again, they are all growing. americans going back to work, good for america, good for jobs. good for the economy and stocks, trish.

he are going to take a very quick break and we will be right back with more "street smart." ♪

>> the consumer electronic show, also called ces, is a place where the worlds greatest products have been introduced. it has had its share of memorable moments. here are a couple that stand out for us. ♪

slideshow,ck on the you can get an idea of what i am up to here. >> ok, all right. right now nine people are being fired. [laughter]

>> great moments at ces. another great moment, coming up? , from bostonn properties. we will be right back. ♪

>> friday will be the first jobs report of the new year. analysts surveyed by bloomberg expect things to hold steady. our next guest says that improvement in job growth is basically boston properties. mort zuckerman, joining me right now. is this so misleading? >> it gives you the impression that the economy is doing better than it is. when they count on jobs, they also count our time jobs like they were whole time jobs. 60% of our jobs are full-time jobs. the income for the people just working part time is much less than what you would normally attribute to full-time jobs. the job market is really weaker

than it looks when you count the numbers the way that they count the numbers. >> could there be a better way of calculating all of this? so that you are able to look at what people are earning in relation to the jobs being added to the economy? one of the concerns is that you may be out of a job, but they are not jobs that can actually support a family. how does the economy grow? >> it grows a little bit, just not enough. you need the internal dynamics of that it feeds on itself in a positive way. retail sales are not strong enough to do that. employment numbers are not strong enough to do that. that is in the context of a pretty serious monetary and fiscal problem, the largest we have had in my working career. what is going on in the economy is at this point a little bit mysterious. how do we really create jobs? the way that we really create jobs is through startups question -- through startups.

small companies. have hadhem we would no job creation in the last three years. is to the things to do allow the people who have what they call stem education, technology, engineering, mathematics -- we need more of these people here. these people support the new jobs in the new companies that really do have multiplier effects. if you take out the new job creations, we would have had none in the last five or seven years in this country. >> it is amazing when you think of the policies that maybe should be in place to try to encourage this. looking at past decisions, you often see the unemployment rate declining even faster than you see gdp increasing. we are not in there. do you worry that we are stagnating? it has been a while. here we are, 2014.

>> we are now in a place that we have not been in since the end of world war room and two. this is the slowest rate of growth. we need a recovery to recover from the recovery. we have had a huge massive stimulus that has not worked in the sense of seeing dynamics. you do not need huge programs to get the economy going. >> they came out today with the minutes and recognized the long diminishing returns. you can only do so much qe. >> by the way, there is a problem may have to deal with when we put this money into the economy. at some point this is going to have to be paid back. we are running huge fiscal deficits. when you start correcting it, the economy is going to contract at a very low level. at this stage of the game you cannot see the internal dynamics of the economy producing enough well-paid jobs that do not need the kind of support we have had

to have from the federal reserve. >> who gets hurt the most -- the most? >> young people have the greatest difficulty finding a job, the greatest difficulty starting their careers. they have this experience now where they do not have permanent jobs where they can train themselves through their jobs to have long-term, permanent jobs. >> there is liability, right? >> absolutely. have had the weakest job recovery since the end of world war rome and to. something is very wrong in our economy. in a position where manufacturing has dropped dramatically. where technology has replaced a lot of the jobs that were competitive. not only justg manufacturing, it is affecting a lot of white-collar jobs, financial firms, law firms. we have imports from countries like china, taking away a lot of these jobs.

>> you are talking about productivity. theoretically, the economy should -- >> where we are not positive is we are not employing enough people at a high enough wage so that they can, in a sense, build an economy from the bottom up instead of the top down. that is what is been happening. >> better policies, encourage more economic growth. let's educate the people in the sciences, the technology, engineering and mathematics. are the jobs they create, that make it possible to create a lot of start up companies, particularly in areas with growth prospects, like a high- tech areas. that is where we have huge shortages. >> it makes sense. you hate to see these people inc. sent home after being educated here. h one visas.,000 these are people that come here

to study here, we train them here. no other entry would give up this kind of power except the united states. we force them to go back home rather than staying here to stimulate our own economy. , thank you.erman up next, arielle -- aereo. ♪

>> already, time for our big story. ,ereo is on the attack announcing expanded online television service. broadcasters are not happy about it. the supreme court could be making a decision to shut down the company. we spoke with the aereo ceo. this is what he had to say. >> consumers are looking for an alternative. whether it comes from netflix or a combination of online sources, the other problem is that there is nothing on the internet.

it does not tolerate that. a dollars,ing at $10, $12 per month. >> media tech capital partners, the first publisher of the rolling stone magazine. always good to see both you guys. $200 a month? you just heard mort zuckerman talking about how your average family is up against it. jobs are scarce. $200 per month for your cable subscription? >> aereo is not causing a lot of cable cutting. what they are benefiting from is the court nevers, the under 30 who never got cable in the first place. the under 30, who never got cable in the first

place. anything they want without any constraints, no contracts. >> college kids, they did not have televisions in their dorm rooms. lap tops is what they had. watching stuff on their computer, anyway. a service like this is attractive. >> the whole thing, maybe you can help us to try to figure it out. is able to exist because broadcasters are broadcasting and they are grabbing it. what if broadcasters say that they will not broadcast? loses steam.o >> they have made that threat already. cbs said that they would go all cable and not broadcast. that puts their license in jeopardy. >> do they even mean it? do you know anyone who uses rabbit ears to pull down the signal? 10% of the country still has that. >> that is amazing, when you think about it. seems like there is

a momentum happening right now. you are a college kid right now, you do not need the cable subscription. why would you need a cable subscription? at what point do the cable companies and the networks there -- >> they are getting internet subscriptions first. the young people, that is the thing they cannot live without. the cable companies like -- we will throw in some tv. they do not want that. >> i remember talking to the son of carl icahn about the netflix investment and it one is -- it is one of the points he makes. he relies entirely on his devices for content. >> what you will see is collaboration. right now there is a lot of hostility. major broadcast networks are suing them.

this matter is going to go right up to the supreme court. i believe that netflix is going to win. no reason that networks cannot put their broadcasts out. >> here is the thing, if it is three by rep -- if it is free by rabbit ears, why should it not be free online? >> that is the point they are trying to make. if cbs and fox threatened to switch to cable if they continue unabated, that might be ok for the major networks, but it is the local affiliates and local broadcasters who will have a hard time dealing with that. they have separate deals. if the national network decides to go to cable, i cannot see the affiliates going on. areet's say the networks not broadcasting directly on an

iphone, they do not want to jeopardize the $4.3 billion. , we havey to yourself bloomberg tv online, on your mobile device. but that is a rare thing. we are an unusual situation. >> just wait for espn, the nfl legal,ok, when aereo is it will go everywhere. that will transform the broadcast experience. >> that is the case. guys, time warner cable, comcast, will wonder why they are paying as well. they might even license it for cheaper. they might find that whole part of the business gone. >> that also argues for rupert murdoch being right and saying -- i am not going to broadcast anymore. to satellite. >> it is really interesting.

we all work in media. , rightmberg is on aereo now. >> that is right, we are. good to see you. thank you for being here. >> grab your credit card, we have got the ultimate restaurant guide for every occasion. that is next, on "tree smart." -- street smart." ♪

>> time for "the scene. oh we bring you the business the high pop culture and entertainment erie at the scene. so we bring you the business behind high called josh behind pop culture and entertainment. hind high culture and --

behind pop culture and entertainment. being in the business that we are in, the business that is out at 9:00, we love the eating out. our friends always call us for restaurant recommendations. we basically decided that instead of taking their phone website. would start a >> looking at the ones that are out there right now, you are not necessarily going to find something so tailored and specific. >> you need to find that one source that you can really trust from someone you can positively relate to. no one was really speaking to us the way we wanted to be spoke to. >> they did not do it for you? >> different business. >> you guys are more specific. >> such as, if you want the best place to bring it? that is specific.

>> it fills a specific need, right? , we will goo there to california for that suggestion. they have moved it right to the beach, it is probably one of the most visually impressive restaurants in the country. it is amazing, your boss is going to be impressed. you might have to mortgage your home a second time to afford it. >> we are in malibu, we will take it there. morbid one, but it is on your list. what if you want to fire someone? the best restaurant -- this is like a seinfeld episode -- "seinfeld" episode, right? your recommendation for breaking up with an employee? >> it is clearly not someone that you like. what better way to say that i respect you a little bit than

red lobster? all-you-can-eat shrimp. >> that is right. >> we are not giving you a paycheck anymore. >> i do not want to spend too much, but enjoy the lobster. >> where do you take a potential client? boom, boom, boom. >> we do not have these specific categories. being that this is bloomberg and we are talking about big is this , your client is probably a big deal, right? hill stone barn in westchester. probably the ultimate dining experience. have the guy that picks the carrots out of the ground coming to your table. mean, if you take someone there and you cannot get the business after that? you probably do not deserve the business.

>> depends on the business. >> that is true, actually. >> we are going out saturday night, right? >> quality italian. >> kind of like a pizza, more than anything. goes over the play, it is so big. itwe have taken instagram of all day long. >> we are about to expand to new york and other cities very soon. we have found that we have built a really great audience here. it resonates with people around the country. we are going to start rolling it out. >> that is funny, san francisco, i am surprised you did not start there. can you come back to talk about other cities? >> absolutely. >> and the music industry. like that is right. thank you, guys. be right back. >> no, we will not.

>> we will see you tomorrow. ♪

is 56 minutes past the hour, bloomberg television is on the market. let's get you caught up with where stocks ended at this session. down, thenes ended nasdaq actually gained about 12 and a half points. traders were reacting to minutes from the latest fomc meeting. the fed did decide to taper. reacting to some better-than- expected data on jobs, the adp survey this morning show that the u.s. added 238,000 jobs in the month of december. bitcoin has been gathering a lot of attention, as everyone from

regulators to investors decided what to make of the crypto currency. advocates are in washington, lobbying to keep the industry alive. for more on the push to get it are the, carter, what lobbyists saying? why are they saying it should be legit? >> they are making the case that this is a new technology that the united states needs. that the payment system is old- fashioned and outdated. they are trying to talk past the previous pitfall of the use of bitcoin. buying drugs, god knows what else, focusing on what it can do for business consumers. >> who is the opposition coming from? industries that perceived bitcoin as a threat? >> it has mostly been regulators. regulators who are particularly worried about money laundering and moving currencies for lesser purposes.

the other industries that move money are potentially threatened by bitcoin. they have not come out of the woodwork yet. this is an embryonic industry that has yet to show it can really show scale, yet. >> the organization we keep hearing about is the bitcoin foundation. trying toinvestors get rich on bitcoin? libertarians who do not want to deal with the central bank? >> the interesting thing about the membership list is that it is a little bit of everything. silicon valley types, wall street types, serious hard-core some extremely talented technologists, they brought it online. they model it after the lennox foundation, the open source operating system. look, they said, we have to have

something here that maintains the integrity of the software protocol and serves as a clearinghouse for information about it. that said, the lobbying effort is very decentralized. >> it seems like what really has is how bitcoind has this anonymity to it. is there any way to make it more accountable? >> i think that there are probably technologies that law thatcement has identified can help them keep track of potential list of activity. one is to map the patterns of these wallets. some people have done that and used other sources where people have made their wallets public to connect them with names. other things that can be done are very simple, which is that

there are on ramps to the bitcoin economy. you just keep track of who those people are. >> we will have to leave it there. thank you for joining us, carter. ♪

♪ >> this is "taking stock ear go we are going -- taking stock." today we eighth, 2014. useew cuomo authorizes the of medical marijuana. to legalize the use of the drug. much different kind, i speak with one of the top professional golfers. millionlook at the new dollar prize.