maintaining, and temps to salvage his presidential hopes. in twitter, tanks. they go from buy to hold to simply fail. good morning, this is "bloomberg friday,ance," on this january 10. erik schatzker came back for more. messier themark hockey great yesterday. drydeni talked to ken the other day. we have to bring a goon in to give us perspective. >> in the u.k., industrial and manufacturing production unexpectedly stagnated and construction fell the most in the year suggesting that perhaps the u.k. economy struggled to

gain momentum in the fourth quarter. in china, imports rose the most in five months in december. it says perhaps that domestic demand in china could support economic growth. that is certainly what chinese leadership wants to see. it is job stay in america at 8:30 a.m., we will get the nonfarm payroll report and we will find out what america's unemployment rate is. no earnings to note today. that is the story. >> let's get a data check. we are up. vxx is under 13. the next board is not telling us much. dealwo year yield is a big migrating ever higher. the dollar is barely above 81.

looked at the papers today and it's all about chris christie. >> it is all over the national papers. his effort to put the bridge scandal behind him, a federal prosecutor is now looking into this orchestrated traffic jam organized by his aides. he apologized and has fired a top aide for lane closures at the george washington bridge. it is not clear what it means for his presidential hopes. it depends on whether this is the tip of the iceberg. >> it was a virtuoso political performance from risk rested. he did the right thing immediately and apologize. he personalized it. >> it was a two-hour press conference. >> she said he went and fired people. >> what's fascinating is he is

lucky it is happening now and not in november of 2014 or january of 2015. take is that he got through the hurdle of yesterday. >> you are absolutely right, there is a federal prosecutor in new jersey involved. that could make life uncomfortable for mr. christie. >> our second front-page story is the price tag for wall street and to settle various government claims in the mortgage crisis. almost $50 billion. j.p. morgan paid $13 billion for its part in november. if we put it into context, it would be half the total profit of u.s. tanks in 2012. the j.p. morgan settlement is pressuring banks to look into striking their own deals. >> every single bag on the

street that has mortgage liabilities running these numbers and the times have a look at the calculations done by one bank area according to these numbers, bank of america may end up paying almost $17 billion. we are talking about multiple federal agencies. cha.s not just the f >> this is not part of the j.p. morgan settlement. >> this includes the $13 billion. jpmorgan had this do with federal regulators to settle federal claims. for $13 billion. that would be part of the $50 billion but there is still $37 billion to go and 10 banks are in the middle of litigation. but you bank is the only other bank to settle for 1.9 billion dollars. >> it will be a big issue next week. it would be the equivalent to

have to profit of america's largest tax. that's a lot. >> also on the front page, the ecb. said he would do whatever it takes to protect the euro and it seems to have worked. said it would be too early to declare that the crisis is over. there is some reason to be cautious after a fairly disappointing number. >> you see the headlines come out and it was very predictable and then they really got to the message. you mentioned the chinese ppi yesterday. there is a dampening within the optimism of today's u.s. jobs report. >> wheat when it to 2014 with talk about a global synchronous recovery. some of that is coming true.

in america orbe the crisis is over. where are they in europe relative to where we were? europe feels to date like america felt in 2011. >> the answer is they are such different nations. i don't think you can come up with a general comparison. >> people generally ignore the difference between the states here. those are our front-page stories. >> we've got a wonderful and interesting test post, the founder and chief executive odor of protagonist. company a brand energy that creates immersive culturally relevant experiences online. pepsi,d it for bud lite,

and mtv. what would you have done for chris christie yesterday? >> i would have given him different advice and said i want there and rather than call yourself a victim of your own staff, just take responsibility. i think that was a tactical error and i think that will come back to bite him. >> the idea that you can lose your brand in a nano second. >> it's possible he lost his. -- is itabout browsing about building a brand are just not messing it up? >>than call yourself a victim of your own staff, just take responsibility. i think that was a tactical -- it is bothink that it is a k but when you are in crisis, he needed to show leadership and that one error of saying i'm a victim of my staff, that's not what want to hear from someone who could be a candidate in 2016. >> what does that due to the republican brand. . i think the republican artie has set a lot about what they will

do -- i think the republican party has said a lot about what they will do. >> how has the intrusion of social media made brand building for individuals harder or easier? is much harder because everything you do and every mistake you make will get tweeted and you will be seen. >> it's not just about being above the fold? >> the damage is incremental. the governor of new jersey faces a modest debacle but have the rules changed in the branding of all attacks? -- with the branding? is there just a new speed? >> that speed has made the whole thing about the most important

thing which is where chris christie might have lost his way which is authenticity. he has been known for that and i watched it carefully. he was not 100% authentic to his own brand. >> what is the one key to controlling the message? your is to stay true to brand at all times. if you diverge from that for one second -- man ofre talking to the mocracy? dew you branded mountain dew and it is fun what we did with them -- what you did with them. what would be your branding of politicians today? it would depend who the candidate is. in terms of leaders right now, the person who is doing branding

better than anyone else is the pope. celebrity hope. >> he is completely authentic. maybe politicians could take a lesson from the pope. he will essentially re-brand catholicism. ifmaybe politicians could take a lesson from the pope. you could take that message to politicians and find your core at your center and authenticity, communicate that in a real way -- >> we have lots to talk about and we'll look at the jobs market along the way. let's get to company news. >> we start with sears that takes another hit, sliding in the premarket after they forecast a loss for the fourth quarter and lower holiday sales. it could be as much as 360 million dollars. sales were down almost 7.5% during the holiday period. is google getting into the medical device business. ? the fda.met with

some of the google workers have ties to the company's research arm known as google-x. makes up ground on audi. they narrowed the gap between the two automakers, just 114,000 vehicles, down from 135,000 per year. the sake that the figures are for sales in europe and the u.s. i see morales on the road but they are always black. it's like they don't make other colors. all the government officials write in them. it at the mandarin hotel, the cars will line up in a circle are. >> we've got much more coming up. terrible start in

2014 with bearish reports making investors jittery. that is coming up on "bloomberg surveillance."

>> good morning, everyone. scarlet fu and erik schatzker are here. there is a lot going on. twitter is starting 2014 on something of a losing streak. there are doubts about their valuation. scarlet fu has told together some of the bearish research on twitter. >> let's take a look at the numbers, down for a fourth

straight day, losing 17% after losing -- after gaining as much as 80% in december. the losing momentum has continued. there was a bearish analyst note. wan took a survey and found of the you -- of the 50 u.s. at buyers, the return on twitter is below average. citedl advertisers pricing as a negative attribute for twitter. there is concern about celebrating user engagement there is concern about celebrating user engagement growth especially outside the u.s. >> they are not making money and we really don't know if they will make money. >> twitter does not report earnings until early next month so there is questions there. morgan stanley pointed out that one thing that made them nervous is that there is such a wide disparity between revenue estimates of underwriters,

versus banks that were not. on the brand of it all linked to the>> finance, should twitter be a public company? >> i think that horse has left the gate. the investors are looking all my at what kind of growth. they don't care about the fundamentals that is the sad truth. all of a sudden, you go public and everybody is show me the money. a how important is it for company to be financially successful? if you become financially not successful or the stock price suffers, how much rent damage does that do? >> it depends how strong the brand is to begin with. twitter is a great company and in the long run, i think they will do well. fairlyu see right now is typical like we saw with facebook and other companies. ritter started off as one of the

greatest ideas we have ever seen. -- twitter started off as one of the greatest ideas we have ever seen and it has lost some of its sheen. commodity.of a twitter does not seem that special anymore and they need to re-brand themselves. >> how do your clients use twitter? >> many of my clients use it. the new products that twitter is coming out with like doing broadcast and getting more branded content into the tweets, that is something that is interesting and all of my clients are doing that. >> am i going to want ads in my newsfeed? >> it depends if they are contextual. teeth whitening, tom. >> that is a major penalty on scarlet fu. not just about people

the twitter business model. some analysts feel the stock got ahead of itself? >> mccrory started off last month and said nothing has changed fundamentally. it was the prospect about growth that got investors excited. once you look at the numbers, they>> mccrory started off last month and said nothing has changed so far do not justify te levels. the other thing is that the overhang of insider stock selling. >> that is a plague for any new ipo. >> there was not a lot of insider selling in the initial ipo and the exploration -- the expiration is one month away. sometimes there is an uproar on twitter and they totally capitulate in five or six hours which was two weeks ago when twitter changed how you can

secure yourself from idiots on twitter. what did you learn from that episode? everybody has the same issues with twitter. they suffered from their own problems, essentially. think it's ok, i they lost 17%. this company will be around for a long time and they will develop new products and figure out a way to rebrand themselves and become important. and, in theme value long run, they will find it. twitter lesham, shares are trading slightly higher. >> just by me saying that. newn the cover of the "business week," an in-depth bitcoin.his coin -- that is available today on your

ipad app. this is "bloomberg surveillance."

>> good morning, everyone. it is jobs day at 8:30 a.m. we will have coverage with bill grossman on radio. today, scarlet fu and erik schatzker is with me as well. with a bigbegin number, wall street banks may take -- may pay a total of 50 ilion dollars to settle federal lawsuits. executives are using the jpmorgan $13 billion deal to determine how much it will cost the other banks.

the price tag for bank of america to settle is estimated to be as high as $17 billion. personal computer shipments fell 10% last year. it was the biggest drop ever for the pc industry. no surprise. shipped 315s million units in 2013. the drop reflects the tablets and mobile devices that people are favoring. tom is getting interested. matthewtion in the casemi insider trading

when it was revealed he was kicked out of harvard. we've got like 20 minutes we can talk about.

>> good morning, everyone. it is job day. let's do a data check on this quiet market.

futures are doing nicely maybe report wednesday. it is a big churn this morning. some retailers to highlight because macy's was one of the big gainers in trading yesterday after it announced it will be eliminating about 2500 jobs to save $100 million annually and they closed five stores. 7.5%.ned bed bath and beyond tumbled. the split in retail is something we will look at throughout the hour. the former saks ceo will join us and the next hour of surveillance. >> when you go into a store and they have it exclusively, i identify him with that. optimism is in the air.

the professors of caution are waxing optimistic. mr. herman at mitsubishi had granule work on unemployment. why is everyone wrong? why is the unemployment rate going to drop like a rock? >> we are looking at what we call the u3 unemployment rate, the popular one, it's supposed to capture all unemployment and people are engaged in the labor force. over the next year, we should get about 40 aces points decline that comes from reclassifying people. we will change the rules. for 85 basis points

decline over the next few months. if you look at the reports themselves, the household survey-ish only counting about one million jobs being created over the last 12 months. is 2.4 million so it is undercounting. that will get worked in in the next 12 months. >> let me show you this chart. what will this mean for chairman janet yellen? be sixhink we will months ahead of their baseline forecast. at the end of next year, we will be a full one year ahead of their baseline forecast. the thing that is key is that all the rest of us who have been

cautious, we have been overcautious. i think when we see the unemployment rate plunge, we will sit back and say our jobs are more secure so let's start spending. i have lots of colleagues and friends having babies and we are all buying cars. >> that is the optimist take on this. there is a different time table as to what the federal reserve is looking at. some say a week a role number. with a drop in the jobless rate could change things dramatically. >> i think that risk is not there. all the indicators you look at for today point to a job gain at least 200,000 or more. in one months time, we will get the benchmark revision for this past year. whatever they put in for this number, you will still have to

revise it up about 500,000 people in the private sector. in the state of california, it is poorly counted. to put in extra numbers of these numbers will change. year, say in the coming people will start spending. and growth is still anemic income and inequality are the buzzwords of the year. for the low skilled people, there is no question that wages are stagnant. a surplus pool of workers at the low level and i have to --ve their income out of our out of hours worked. you are ignoring this two-tiered economy. education andugh it is knowledge-based, in medical or high-tech or banking. it is everywhere. people, see these

>> will there be enough people to carry the economy? >> it will be enough to drive it but i think you're getting at the right point is we need to engage are-training program for the long-term unemployed. you have to give them job placement skills and get them re-engaged. >> i brought up someone who totally disagrees. this is my morning must read -- is this a quality recovery? 32 months in a row, we have averaged about 200,000 gains in

the private sector. we did not do that last decade and we are doing that this decade. thesecond point is with quick ratio, once his unemployment rate goes below six percent, we will feel more inclined to take risk. >> eric rosenberg of the boston fed have been -- has been leading on this. where is your tipping point where the psychology changes? i think you will get near five by the end of this year. you get to that and that will be a big psychological point. >> aren't the risks asymmetric? surpriset downside would change the game. >> when you look at the regular jobless claims, those things are back to normal levels. that goes back over the last 20

years. alan greenspan would say it is a tight labor market. >> what is your number this morning? the headline number is 218,000. >> 196,000. >> that is in line with the consensus, i will say 170,000. >> is there a wager? >> a case of mountain dew. >> 221,000. it is only if the weather impacts this. the weather did not show up. >> it will show up in january's numbers. dead onave been recently. i love your optimism. john herman with mitsubishi. thank you. >> we have to twitter question of the day -- we are crowd

sourcing intelligence. where in the u.s. are you seeing jobs created? we would love to know what you see out there. made a, ipo's have strong comeback in 2013 and the momentum is set to increase this year. that is our next topic in our single best chart coming up on "surveillance," ♪

>> good morning, everyone. mon dieu is the title of our next idea. it's the story of the president and actress and reports of a private a pair that have become -- a private affair that has become public. holland reveals an affair he is having with a french actress. he called it an attack on his private life and he is considering legal action. hans nichols joins us from berlin. this goes beyond a titillating

story. >> you had to use that word. you used affair and is it an affair? there are legal implications. is something an affair if neither party is married? he lives with his live-in girlfriend and the allegation in this report -- we have not got it it in berlin yet -- that he would sneak out in the evening on his scooter and go to the actress's home and in the morning would return back to the palace. i am speechless. how big a deal is this for the french people? this seems like normal activity within their stereotype. how fired up are the french? and >> previous presidents have kept the sort of indiscretions secret. they have been entirely

personal. this represents maybe a change in the media. these rumors have been out there for a while. this is an actual publication that has published these photos that has attachments to france so they are league of -- there legally actionable. he could sue them. that never happened before so maybe france is becoming more like the u.s.. aboutteresting thing holland's statement came out from his personal assistant. he is denying this. he is threatening legal actions in his own name, not as an official account. >> threatening but not necessarily doing anything. hans nichols from berlin, thank you. in ant was reported english magazine. when it is reported in a french

magazine, it is parfait. let's go to a single best chart. >> it is on ipo's. it was a good year for initial public offerings in 2013 with $62 billion worth. this chart shows the total dollar volume. no minimum size requirement. 2014 or the bar for 2014, they are looking for $67 billion. the recovery continues perhaps ofting us past the level 2010 which was $66 billion. in terms of the outlook, capital markets executives are projecting increases in technology, energy, natural resources, biotech, and health care. that is where the ipo activity will increase. >> this goes right to your

optimism. is your optimism links to mergers and acquisitions? >> it is part of it but we are finally starting to hit the next her gear in terms of the actual activity. >> do you see that on the west coast? >> absolutely, i think this will be a trendy will continue to see. i am with the optimist. look at the housing market on the west coast and things like that, this stuff is gaining traction. we've got demographics moving there and young people are moving there. we have a lot of activity. >> is your world behind his world? >> absolutely. the cover page of "wall street journal," it is the high- tech and energy is unbelievable.

apple is building a giant corporate center. >> this goes back to branding. how important is branding in determining whether an ipo is successful. twitter did well but people are having serious questions. >> brand is everything today. meaning, theally way the consumers connect with the thing they are buying. in a world where you have to really fight to get noticed, that's why we talk about brand. it's a fight to get noticed. >> thanks so much, john herman. >> 218,000 this morning, john herman says. >> we will see what happens at 8:30 a.m. >> coming up next, how do you buy super bowl tickets and know that they are real? we will talk with the founder of an aggregate coming up next. this is " bloomberg surveillance," on bloomberg television, streaming on your

phone, your tablet, and bloomberg.com. ♪

>> good morning, everyone. futures are up on this job day.

we will have larry robbins on market makers this morning. why are you here this morning? you will be up to midnight? >> this is how i get ready for "market makers." >> who is he? care about himou is he is the top-performing hedge fund manager in 2013 according to a survey by bloomberg markets. he's got a $2 billion fund. find -- fund,ort 101.75% net. >> he was clean on $2 billion. >> people complain about hedge funds underperforming and he more than triple the s&p 500 and is largest fund was 5.5 oh yen dollars and that was 70% net long. we will see what he has to

say about 2014. i am here with erik schatzker and tom keene. this is company news. number oneiving his spot in the pc business. it had an 18% market share in the fourth quarter 36.6% gain in shepherd. hewlett-packard was number two. stills droptry saw 10% -- and sales drop 10% over the year. a rise in carriers have to spend 60 billion dollars per year. this is about keeping personal records for the nsa. said it is aein huge civil situation. the chinese ministry of culture is in charge of directing new rules on videogame consoles. the 14-year-old ban from consuls

was lifted earlier this week, potentially opening the $10 billion market to sony, microsoft, and nintendo. it was to protect chinese use from a corrupting influence. that was before the internet. >> speaking of the internet, it has brought us aggregators of everything, news coming music, television shows and now super bowl ticket prices are soaring and one website is aggregating ticket prices. i try to understand what you guys do. to funds as hedge funds, you are to secondary ticket marketplaces? >> that sounds about right. we bring every ticket from across the internet into one interface. we pull tickets from take mays -- ticketmaster and ebay and all these sites.

we take every ticket and bring it together. >> what does that do for me? if i am shopping for a super bowl ticket, what do you do for me? >> it is a free service. all we do is take the user and direct him to a site. get is what the marketplace sends us. they play -- they pay us a commission. we have a deal score rating that rates every single ticket listing from the scale of zero- 100. >> you have these wonderful colored circles saying we are the best value. nobody else does that. >> that's the deal score i am talking about. we are rating every single ticket scale from 0-100. you will be able to find the best deal with us. >> what have you learned about sportsference from

leagues. who over prices and under prices? >> we don't think about it in those terms because we don't see a face value. we know which leads are more expensive than football is the most expensive. >> because there are fewer games. >> and the super bowl is a whole different strata. popular concert might be a one direction showing that will have an average rise of $250 per ticket. the super bowl tickets are going for $2500. the average price will be closer to five -- $4000. lesham is the branding expert and how much is that because football is a different game than other sports? how much is the branding a part of this? >> the nfl is one of the best branding organizations bar none. particular super bowl is

supercharged. it will be the most exciting super bowl we have ever seen. new york and new jersey are hosting the super bowl. they are embracing the cold which is exciting. >> what is the most expensive ticket you have seen for the super bowl? >> we see suites that are listing for $500,000 apiece. 12-30 friends want to get together and spend half $1 million, come to our website. football has done brand building but what is the best rectors of football in branding that all of us can learn? >> if you look at the nfl which is the organization that owns the branding of football, they have continuously made football exciting and continuously updated. the notion of embracing the cold and the way they have done that has even it and excitement we have never seen. >> how much of a brand risk is there in the nfl? >> it's such a big topic.

the jury is out on that. i think there might intentionally be -- >> i don't think the jury is out on concussions. >> how it's handled and what they do next will determine what the outcome is. iwhen you look at stub hub, find a huge advantage. do they have the high ground or can you have competition? focused on aggregate that has every ticket. we have done a phenomenal job doing a great brand and there are other competition out there. >> i learned a lot. >> of $500,000 suite. a mobile app you can use on your phone. >> thank you both so much. before theat fourex jobs report. 100 that is $1.05.

a stronger sterling and you have the loonie moving their $1.09. ♪

>> this is "bloomberg surveillance." america creates jobs, will a

report move markets at a: 30? one hour 48 minutes. chris christie maintains calm and attempts to salvage his presidential hopes. clusive.illance" breaks we speak to a retailer. that chess is exclusive. good morning, this is "bloomberg surveillance." exclusively from new york on an exclusive friday, january 10. scarlet fu and erik schatzker. kcsaguest host, ceo strategic communications as we look at pr crash and burns of 2013. let's get a brief brief. >> we will begin with the british economy, they may have struggled to pick up momentum. industrial and production

manufacturing stagnated, construction fell the most in more than a year. china's imports rose the most in five months, good news for xi jinping. to stokere trying domestic demand, this is a positive sign. moving on from china, what is on the economic calendar. 8:30, jobs report, nonfarm payrolls. looking at wage growth, no earnings of note. alcoa reported yesterday with by how do they do? >> $2.34 billion loss. >> big success. >> there is a glut of metal. earnings fell short of estimates, not so good. >> looking ahead. bank earnings, that takes place next week. tuesday, jpmorgan and wells fargo. and company news, wall street banks could pay $50 million to settle federal lawsuits over mortgage lending.

dealtives using jpmorgan's with the u.s. to determine how much it will cost other firms. the price tag for bank of america to settle is as high as $70 billion. $17- as $70 million -- as million. employees withle ties to google x's research arm met with regulators. sliding inrt's sears the premarket after forecasting a loss for the fourth quarter and posted lower holiday sales. the last could be as much as 360 million dollars, sales were down 7.5% during the holiday period. the numbers were atrocious in the words of one analyst. 8:30, lots of at jobs.

a good amount. wall street economists have elevated their outlook for this morning's report. chief economic correspondent michael mckee. things are so good, why do i feel so miserable? this is a major theme, things are looking good. >> maybe they tied your bowtie too tight. >we are not seeing an acceleration so much as a continuation of strength we saw in the latter half of the year. >> better economic growth, is it just a haves economy? is the jobs report about the upper .5 percentile. -- 25 percentile, the rest of america is falling behind. >> are we getting jobs that are going to lift the lower classes up an increase pay? is the unemployment market comes down and the labor market gets tighter, people get paid more

money in theory. we have not seen that. >> the job growth taking place is in the upper echelon and does in theolve enough people -- >> not yet, most jobs created are in the service sector, which are lower paying jobs. there are still too many people out there for the number of jobs available. employers do not have to pay up. manningrs or people grocery stores. >> retail and real estate salesman, more people are selling houses. not expensive enough. clean each data point. it is only the second or the third week of the first quarter of 2014. do you have any belief we can carry on the good news of the third quarter and fourth quarter of last year? does that momentum carry into this year? >> it is beginning to look like it should, there does not seem to be any reason on the horizon it will not.

we have seen a lot of black swans in the last couple years,. it's -- false dawns. people are beginning to think we might be breaking out of this and 2014, janet yellen saying that this year. now the same as 200,000 in 2006? >> in the sense that the label market has fallen. -- the labor market has fallen. in theory, the population would grow but we don't have as much people participating. >> are these numbers from a for democrats and for chris christie? >> hard to say about chris christie. it would be good news for president obama if he did not have other problems he is facing. it factors into the debate over extending unemployment insurance, to put a never works against that. >> bring in jeff corbin, ceo of kcsa strategic communications,

he understands how to communicate the value of public obvious. public companies are doing well in the stock market. macy's'stock is at a record high, they survive the holiday season, yet it is cutting jobs and closing stores. that is a challenge to communicate to investors and the public. >> the stock price has to do with how the company is performing, that is where the communications is so critical. to the extent a company has good news to report, they will extent -- they will report good news. they are cutting jobs as a part of a broader plan, the investment community will look at that and say these guys have their hands around their business. they know what they are doing and we are going to propel the stock. >> this is a topic we brought up with mattie leshem in the last hour. to what degree is financial performance for for a brand? -- important for a brand?

if they see your stock price suffering, do they think less of you? >> if a stock is doing poorly and there is no communication, customers and employees and anyone else is going to think there is a problem. that is where communications can help. in terms of justifying why there is -- why the company is doing -- >> to what degree? cynics would say the communications, putting lipstick on a pig. >> the company is going to put out benchmarks for success and have to deliver on those. if they deliver, great. >> i want to rip up the script. you came out of cornell, you did securities integrity l -- securities and bankruptcy law. what would be your advice to steve cohen? that straddles both of your careers. would you say to mr. cohen about an inch?-- about image?

>> his advisors are telling him to be quiet. he is only going to get himself into trouble. > should he sell another piece of artwork? >> if you can keep that out of the media, that is not a problem. he is carrying on the big life, that might not look -- bode so well. i am not sure how much he cares about his image. >> what is the number one people -- what is the number one mistake people make in pr. things have changed. what is the new new? >> the biggest mistake organizations make is reacting to quickly. things are happening so fast, to not be delivered in -- to not be deliberate in what you are doing could affect your image in a broader way. quickly is a

mistake. given the speed at which things happen, take a step back. >> did chris christie react too quickly? >> he did a fabulous job, he waited a day, he slept on it, he cannot and had a two-hour press conference. >> what was fabulous? >> here is a guy who has done really good things, let's not forget about sandy and how he behaved wit-- >> what was performance about yesterday? .> he did a mea culpa right now he is saying i am not part of this and i am going to be a leader. >> while he was on air going on and on about -- erik schatzker red hockey news on the tv set. >> one hour 48 minutes. >> some people think that is

genius, letting it go. give every single journalist an opportunity. >> you have got a lot of people sitting in a room, you want to give everyone a chance. wonderful to have you, jeff corbin as we look at imagery and michael mckee's jobs report at 8:30. a guy named gross will show up. 197,000 jobs added in december is the consensus. coming up, a holiday sales report from jcpenney. we will talk about the turnaround with jcpenney boardmember steve sadove. ♪

morning, everyone. "bloomberg surveillance," i am tom keene. this matters now, jeff corbin, ceo of casey sa strategic communications. toothpaste. facebook'smage, image after their failed ipo. pr is way different. everybody knows that from jeff corbin. differently, show the immediacy, there is a new new. >> sure. >> what is your recommendation

to all our viewers about how to react given the speed of digital? >> as i said before, speed is important, but deliver it -- but erateness is more important, before you act, think about how that will impact you. everything you say will end up in the social realm. >> maybe a guy in a gray suit asking a question is dangerous, us, it is anley cyr adult age, pr has to give a response -- >> it has to do with the fact that if you understand business and the seriousness about what you do, you need to portray that. in written communication, television, marketing. it is all a compliment, people are looking at all incidents. >> what do you do for anybody when they screw up the

generally, put out and ugly twet, et, snapchat stayed out there. >> when there is a digital disaster, make sure the worst of it gets pushed down. positive newsweet and put out content that is positive. whatever his most recent makes it to the top. you hope your consultant and your advisor is not telling you to tweak the wrong thing or that you do not just put something out there. outnext thing is to put positive news that is consistent the way you want to portray yourself. >> to washington, your advice on image for the president? a big image issue. it is one of transparency and trust. what we saw yesterday with chris christie i thought that was something our president should

do more of. if there aren't things in areas -- if there are things he believes he has been wrong, come out and say it. >> jeff corbin, we have got a great image to talk about, a great brand. a high-end fashion feature on a rising technology company. one of the great luxury retailers, steve sadove joins us on "bloomberg surveillance." ♪

>> jobs day, our twitter question. there it is. where in the u.s. are you seeing jobs created? a sophisticated twitter question. we need your answer at @bsurveillance. where in the u.s. are you seeing jobs created? michael mckee suggesting maybe they are being created at the low end of the spectrum. "bloomberg surveillance," a8

:30 jobs. our guest host is jeffrey carvin of kcsa. shipwrecked costa concordia will be towed away finally in june, almost 2.5 years after it ran aground. it will be taken to a court to be dismantled. 1800 millionts dollar salvage effort. it ran into rocks on january 13 of 2012. downnal computer shipments 10% last year, the biggest drop for the industry. manufacturers shipped just 350 million units. people are shifting to tablets" devices, it is hitting the pc industry. debating unemployment benefits while growing richer, the

majority of congress are millionaires. 268he 534 members, at least have been average net worth of a million or more. wealthiest, is the $464 million net worth. .> interesting you wonder about inflation-adjusted, compared to jefferson and madison. >> jefferson and madison's net worth? historian. speaking of bifurcation of america, jcpenney's share down 12% this week. after a failed strategy by ron johnson, the chain is back in the hands of mike ullman, fighting for a turnaround. what is needed? stevestayed off -- sadove is former chairman and ceo of saks.

ron johnson was tasked with changing mike ullman's jcpenney, he failed. mike ullman is back at the helm. the sames to be using playbook, what does he need to do differently? >> getting jcpenney back on track is the first charge. he is doing a really good job. if you look at november comps, they were out, they said they were please with their december results. you had a major turnaround that had to take lace. if you think about what was happened in 1.5 years by ron, they destroy jobs and took a business that was $18 billion down to $12 billion. they had to restore confidence and get employees re-motivated. they are making some good progress. kcsa saidorbin of c

a risk is moving too quickly. did ron johnson move too quickly, is mike ullman moving too slowly? moved tooely johnson quickly. jcpenney is a supertanker, you .annot make it a motor boat they fired their customer, taking some of their brands and discontinue them. >> you are legendary for delegating authority, you did that at saks. make a product work. are they listening to you at jcpenney? are they actually listening to steve sadove? >> i have only been on the board since the beginning of november, -affiliate of macy's came on the board, it is a very good team. they were a little bit enough, -- beaten up. there are talented people and

the company is moving in the right direction. >> what does jcpenney need? >> there is no silver bullet in retail, it is a lot of detail and execution and digging in and understanding the consumer. they are making strides, a lot of initiatives have not hit, the revamping of the home business. what you just described, those are the priorities for mike ullman. you know a lot about management, you also know a lot about governance. what are the priorities for the board? >> the lord is there to make sure the strategy is right. to makeoard is there sure the strategy is right, not to run the business. it is about making sure the team is the right team and you have the right leadership. that you have the right support. >> bloomberg has 25 sell side analysts, 4 buys, the rest sells

good.ld, not too should jcpenney -- >> right now, jcpenney is focusing on getting back on track and focusing on growth, focusing on delivering minutes -- commitments. >> why is it not too late for jcpenney? >> i do not think it is too late. there is a space between kohl's and macy's, there is a need for that matter -- for that product, a 50% owned brand. for millionsace and millions of americans to shop at jcpenney. it fits well underneath macy's. >> steve sadove on jobs day. average discount

of 37% in 2013. we will talk about that. the big question, how to avoid deep discounting that plagued the holiday season of 2013? ♪

>> this is "bloomberg surveillance," i am scarlet fu with time keene and erik schatzker. verizon may have to spend a $60 million a year if they are required to keep mobile phone records for the nsa. this estimate comes from senator

dianne feinstein, who chairs the senate intelligence committee. she said that requiring phone companies to keep records with prevent a huge -- would present a huge situation. mercedes-benz narrowing the gap with audi. 135,000 a down from year. nike unveils a new line of apparel and foot where for the super bowl. the inspiration for the new aeat was michael johnson, creative force in designing the new line, he spoke with stephanie ruhle. >> i don't know anything about football. i know about one of the biggest elements, speed. they say tell me everything you know. guys want speed. every athlete, you won't find an athlete in any sport that does

not want speed. >> he does know about speed. >> they are so popular, i read somewhere that some of their new shoes are so in demand it is dangerous to walk the streets -- >> they keep releasing them over and over. certainly in the holiday season, that was a factor. see stayed off -- steve sadove, former ceo of saks, current board member of jcpenney. nike has been described as a fashion technology company. >> that was a great description. it is fashion and technology, they have done a wonderful job of associating with the best athletes. it is a fashion company, they do a great job of ridding out new fashion season after season. >> jeff gordon, they are the iconic home run. what is the best practice of making an image -- nike in image? >> getting the story out --

>> every day. >> every day we see nike somewhere. >> it is almost an exclusive brand, on 57th street. you see the tourists go in. day. sadove, jobs you look at jobs created, up and down the spectrum. what you do better than anybody is you say to a designer, i will take on red valentino, we want this dress, we are exclusive. is that the continuing message? >> exclusivity is important, even at the low end. macy's going after relationships with designers. >> the ipo this year, montclair. steve sadove, what did they get exclusively right? >> they understand the fashion

and the luxury and winter wear. that was a home run ipo. montclair flies off the shelves. >> the extra smalls, everyone from asia gets it. >> what is the role of a department store? a brand curator or a brand aggregator? >> i think it is a brand curator. >> when i walk into bloomingdale's across the street, it looks like a brand aggregator, a bunch of many ini shops. >> i don't think that is true, you do have some elements. % concessions for gucci, prada, most of it is an edited a source of the best brands. vendors are your

competitors as well, but your edited.are >> a moment of silence for my wallet. you go on to your shoe store at saks. like the grocery store that puts the gary in the back to put -- back,uts the dairy in the you put the louis vuitton in the back. >> people will go to the back of that space, one of the only concessions within the department store in the world. >> what does louis vuitton get right? where do they get the time to make all that? >> they are enormously creative. >> steve sadove with louis vuitton. you have got to go through 875 pairs of shoes. knowsrybody at the saks

tom. what is happening in equities, futures climbing. 8:30utures up before that number. >> jobs day. we will have the jobs report on bloomberg radio, bill joining -- bill gross joining us. jeff recorded with us, ceo of kcsa, and stephen sadove as well. erik? discountingas about in retail, especially over the holidays. chickens are coming home to roost, where? on the bottom line. cuts, family dollar forecasts. can retailers turn things around?

steve sadove, former ceo of saks and currently sits on the board of jcpenney. between thefurcated top in the bottom or can the whole industry pick up momentum with the economy? >> you will see the whole industry pick up, there is a bifurcation. the high-end is held up much better. you have seen some promotional activity at both the high and the low. channel, the internet, the role of the tablet has played across the industry, that is becoming more critical as we look at it. discounting the short number of days this year affected everybody. you have got the sales in the end, i don't know what the real numbers will be, they come out next week. i anticipate it will be in the 3% range. it was more promotional. discountingw end, all the time, it started aggressively at thanksgiving.

so much.gh-end, not is discounting on the high and a sign of a strategy that is not working? >> i think -- >> barneys for example. >> you have got to be careful, that is at the end of the season. veryend retail is different, you have a fall season and a spring season, by december, the product is being marked down to get cleared by the end of the season. you are now at end of season clearance is. >> that is normal. >> talking about normal versus abnormal markdowns, 2013 average discount for week of december 22 at jcpenney, 37%. target, 31%, an increase from 25%. at what point do retailers say enough is enough, we can fight the discounting? are don't know that we

there yet, the consumer is price sensitive, you have the showroom in effect. people have price information from the internet and are going to go after the low price. you have got to build it in to the markup. that is a exclusivity is so important. you can assume that you're going to market down, that is the problem jcpenney had. ansumer is expecting discount, the strategy of no discount runs counter to that. >> jeff corbin of kcsa, discounting, good or bad? >> it comes down to how you communicate that. to the extent you are discounting and your margins are lower or maybe not lower, that is important from the investment community's standpoint. did in at what jcpenney their last quarterly earnings, this is why the stock has had issues in the past couple months. they reiterated yesterday their they did notq3,

give clarity as to how their resident was going to increase. to the extent that it is a show me story, there was not much to be shown. >> steve, i think of the magazines in 1985, do seasons matter anymore? in the digital world, does the rhythm -- will it sustain, and i shopping for spring right now? >> you were shopping for spring weeks ago. >> the consumer wants wear now. >> digital is now. >> that is not how the luxury sector works. a lot of it is hand manufactured, you order well in advance. the cycle is shortening. you have the impact of fast fashion, h&m. luxury has got to evolve. >> wonderful. >> steve sadove, board member of

jcpenney, former chairman of of nationalan retail federation. coming up, talking about the jobs report. ♪

good morning, everyone.

"bloomberg surveillance," i am tom keene. jobs day. jobs stay,ve you betty liu is with us. >> you sleep in your bowtie? >> ueyeah. why take it off? jobs day. is always very exciting, we cover it like sports. covering the jobs report. mohamed el-erian will be joining us from pimco to give us his reaction. >> he has a geopolitical tension about america ahead of everybody else. about it onalked this program about pimco and the redemption they saw last year. how does their outlook now fit into their strategy? >> betty liu, later this morning. 225,000. you have a number? like erikous,

schatzker, on the cautious side. 200,000. >> 196,000. >> first look photo. >> less than a month away from the olympic games in sochi. 40,000 capacity, where the opening and closing ceremonies are going to be held. security, no surprise given the terrorist activity. >> countdown clock. >> nothing is complete without a countdown clock. omega in the kremlin. jeff corbin from kcsa. your image for vladimir putin? >> what of security and safety, i don't want to travel to sochi. >> he has got to go there. thousands of athletes about to travel thousands of

miles to participate, we remember what happened years ago -- >> in munich. >> god for dead that should happen again, he needs to make us feel he has it under control. -- god forbid. >> he needs to be photographed shirtless. >> how cold was it this week? the polar vortex froze over ann arbor falls. -- niagara falls on the american side. >> not as good as the canadian side. schatzker, we grew up in the midst of niagara falls. >> you were on one side. world full --l the big whirlpool. what is your memory? >> cover yourself up with reindeer. -- rain gear.

to keep yourself from being soaked. one area the polar vortex might not be so bad, the slopes. u.s. snowboarding grand prix in colorado, legal to -- >> up, up, away. >> qualifying events for the sochi olympics. >> we will be back, good morning. ♪

>> good morning, everyone. "bloomberg surveillance," the most important person in the global automobile business. he and his family did not go bankrupt. joining us on monday with matthew miller in detroit, ford on alan-- bill mulally and the american auto industry. >> i and scarlet fu. our guest host is just carbon of corbin of kcsa. lenovo keeping its number one spot in the pc business, they had 18% of the market in the fourth quarter, thanks to a 6.6% gain in shipments.

hewlett-packard was number two. tc industry saw sales drop by a tent in 2013. sales of cloud software and boosting sap, operating profit jumping 14%. in salesd a 69% gain of its database platform and revenue from cloud subscription. cultureministry of drafting a new role on videogame consoles. week, earlier this potentially opening the $10 billion market to sony, microsoft, and nintendo. the ban was put in place to china's youth from perceived bad influence. >> jobs report, john herrmann jobs report.on the

it has become in every much idea for "surveillance." we speak to an executive who iss jobs, jeffrey joerres ceo of manpower, he knows $11 an hour is different from eight dollars an hour. he knows of the shortage of skilled i.t. employees. wonderful to speak to you. >> great to be here. americantimism in the labor economy, what are you seeing at manpower, give us the nuance of the better job economy? that there no doubt is building momentum, we have been going through soft patches, up and down. we are seeing a bit more confidence from our client base, particularly on the manufacturing side. as well as the service side. and we look at the labor report coming out, as well as the next two or three, these are some of the most important labor reports that will occur in the last 18

months to two years. this should show a different slope, that is what we are feeling. >> is there a shortage of skilled workers? >> there is, is the conundrum. you have hot and employment rates, long-term unemployment, graduating university students, is not matching. it is not a shortage as much as a mismatch. geography and skill, that will subside as you get more demand from companies because they will accept it at last. now, there is no motivation for a company to accept anything but a perfect hire. >> when you say ceos are showing more confidence, give us a relative comparison. take us back to 2006 or 2007, the confidence level then versus now? exuberant, a little of course. stage at all.hat comparing it to 2010, a little things were coming

back. so much caution, so much concerned about adding any kind of cost. what we are seeing is, there is still a notion of more with less, ceos are saying my demand is building, my backlog is looking better, i have got to start thinking more about my workforce than i did before. which was i do not want anymore, i am nervous, it is subsiding. still some forces on the horizon. for 2014 your themes is simplification, the new holy grail for companies. have we turned the corner from relying on automation to actually hiring? >> what is going to happen, when we talk about implication, dodden regulations, frank,, located businesses, we have created so much process in organizations it has created a malaise of getting things done. simplification reverting

back to the individual with more responsibility, that will unleash hiring. >> erik and i will see you in davos. do you go to switzerland knowing the american economy is a job creator for the global system? >> i am on the panel for willloyment, hopefully i see you there. you have got this multiple speed, europe is in trouble, asia is not growing as much. seeing going to start some growth, hopefully that will spur the world. >> jeffrey joerres with manpower, we'd love to have jeffrey joerres on jobs day. betty liu with, el-erian, bill gross will join us. jeffrey joerres actually creating jobs. time for the agenda. the stories shaping the week. the idea after the jobs data and moving forward to the weekend. the number one thing i went to see, what do we just know? --

what do wages do? i just want to know are we getting this -- >> we do not see wage growth picked up. the refrain of income inequality is only going to become louder. theme, will be the absolutely. john edwards with his two america's. you have toericans struggle with? 3 or 4? ofit is one america in terms how things are progressing in the economy. let's say focused on one society that we know now is flat. know, let's not try and break it up and confuse things. >> that is a great nuance between the imagery and pr of one america versus the president's challenge on inequality, worrying about constituency against the

backdrop of optimism. jobs reportnto the with optimism, s&p futures on a climb north since we "surveillance." goldman sachs, abrupt changes in outlook. puts us with that asymmetrical risk, there can only be downside. >> erik, can we say a symmetrical? >> it is friday. erik? >> twitter question of the date was where in the u.s. are you seeing jobs created? surge in new york city, brooklyn's hipster neighborhoods." energy" three exclamation points. openings at the new

jersey governor's office." >> hashtag "snark." crowd sourceto intelligence. >> the theme has been the dakotas. >> north dakota was immune to the recession. >> in terms of your agenda, what are you looking at? >> in "the new york times," look at it. it is important for the banking industry. "the new york times" had access to a report to one of wall suggesting wall street may have to pay $50 billion -- >> put that number into context. >> to pay federal mortgage claims, about half of what the banks make in a year. the feds are not concerned about adding the banks out of business, you still have the other half of your profits, it

would reduce profitability and disappoint investors. bank of america -- j.p. morgan paid $13 million. bank of america and may have to pay as much as 17 really dollars -- $17 billion. >> twitter falling on valuation concerns. shares a little higher in the premarket, still well above $26 ipo price. questions about the crowded advertising market. our guest host, jeff corbin, twitter is a company that does not make any money. the excitement has gotten ahead of itself. investors are paying the price. what will you look at to gauge twitter's success? for wheny what we look facebook went public, the same momentum building. twitter did a much better job of handling their ipo. looking for what are -- how are they going to grow this company

and generate revenue? take a of advertising, a lot of companies -- >> thank you so much, we have to leave it there. "surveillance" on radio continues. ♪

>> live from bloomberg's world headquarters, this is "in the loop," friday, january 10. jobs day. with adam johnson and stephanie ruhle. joining us for this hour, two

special guests, robert wolf, ceo of 32 advisors and former chairman and ceo of ubs america, an adviser to president obama. you have us putting the money on the table. >> jobs numbers. 8:30. >> we don't take credit on wall street. margin?n do it on i don't know. >> we are talking about the jobs number. the december unemployment report at 8:30. 2013 might have been the best year for hiring since 2005, does not feel like it, but them's the numbers. lacker giving a sec