>> from bloomberg world headquarters in new york, i am mark crumpton, this is "bottom line. -- bottom line." the intersection of main street and economics. to our viewers here in the united states and those of you joining us around the world, welcome. we have full coverage of the stocks and stories making headlines on this tuesday. su keenan tells us why crude oil prices are dropping again after a one-day bounds. matt miller tells us how discounts helped gm, ford, and chrysler auto sales. and peter cook is live on takata sidesteps

demands for national recall. good afternoon, are we headed for a showdown at this point? >> it certainly seems like we're are headed for a showdown between the government and this japanese auto parts maker. today we had an interview with the ceo of takata, and he again apologized for the injuries related to the exploding airbags and said the company would go even further in their commitment to public safety, but he stopped short in committing to initiating of the national recall that was directly requested by the national trot affect -- national traffic highway and safety administration, putting his company and the government on a collision course, of sorts. they did spell out the steps of their taking, including hiring one -- not one but three former

secretaries of separate -- secretaries of transportation, overseeing an independent audit of the entire airbags situation. they will be outside counselors to the company, providing advice, committing to further ramping up production of replacement airbags, including the possibility of using competitor equipment if necessary, expanding their testing of airbag existing vehicles to further determine which cars may have problems. in their statement they knowledge the call for that national recall from regulators that have not said that the company will actually initiate one and does not rule it out. instead you have a top takata executive said to testify tomorrow and according to his testimony he is get that she is again going to stress that he believes the priority should be on high humidity areas, where the problem seems to be the worst. that should be the top concern right now. he will also tell the committee tomorrow that if there is a national recall it should happen

in phases, making it easier for takata to meet demands. >> how is that argument going to play in washington? >> not very well. i can assure you of that. regulators are already demanding the recall and they have been joined by lawmakers on capitol hill, including senator richard blumenthal of connecticut. i spoke with him earlier and asked him about this entire situation. >> i hope that they heed the call that i and others have made for a national recall, because there is no, absolutely no logical or factual basis for issuing regional recalls. the acting chief will also testify tomorrow, he is prepared to tell lawmakers that they are not only prepared to enforce a mandatory government recall of those drivers side airbags in question, but if needed they are ready to expand to a nationwide recall of all airbags, including

passenger side airbags. they are ready to take that step if that is where the evidence takes them. >> peter cook, joining us from capitol hill, thank you. to get right to the other top stories this tuesday. a major power failure struck downtown detroit today, darkening government to lings and forcing the evacuation of workers. the blackout affected city hall and the detroit institute of arts and other prominent buildings. schools are reportedly sending students home for the day. in the meantime the detroit manager may submit his resignation to rick snyder within days. he was appointed to handle the related to their municipal bankruptcy. in a speech to the oakland county business roundtable he says he is not interesting in repeating his act in another troubled city. last month detroit won approval of their at cutting plan to

allow it to refashion itself after decades of decay and the climb. president obama has reportedly chosen ashton carter, senior pentagon official, to be his fourth secretary of defense. if confirmed he will succeed chuck hagel. years asmore than two the defense department's number two civilian leader under leon panetta and secretary hagel. had thislumenthal reaction in his interview earlier today with my colleague, peter cook. >> a very solid choice, he is a poem -- he is a penultimate professional and knows the department of defense inside and out. professional who digs and drills down on questions and i think he is a solid choice. on the verge of its first recession since 2009.

a russian economic official says that gdp will fall almost four percentage points next year. they have been hit hard by the fall in oil prices and the sanctions from the fighting in ukraine. russian president vladimir putin has scrapped a proposed black sea oil pipeline, giving in to european pressure, which would have allowed them to bypass the ukraine and send oil to western europe. bp went against them because it would've increased the leverage against russia. , a discussion on plunging oil prices and what it might mean for vladimir putin. >> he won't have the maneuverability on the economic front that he has had. his basic bargain with people has been -- i will deliver you a better economy and you let me kind of run the show. >> you can see the entire tonight onith him

charlie rose on bloomberg at 7 time,nd 10 p.m. new york right here on bloomberg. that is our look at the top stories that we are following at this hour. coming up, november u.s. auto sales, black friday boosting sales that -- last month, we will take a look at what consumers are buying and get in outlook when "bottom line" continues in a minute. ♪

back, this is "bottom line," on bloomberg television. november proved to be a good month for u.s. automakers makers, sales rose as black friday specials attracted consumers to the floor rooms. matt miller joins me now with the numbers. i call them showrooms, does it matter? that is fine. the dealership is what most people would say. basically black friday has become a really big deal for

carmakers now. you think of it mostly for retailers, but now they have aboutd, as we talked yesterday, car dealers have started offering incentives to really get the shoppers into showrooms and out of, say, the gap, wherever you are shopping, obviously. [laughter] ford, chrysler, and gm showrooms. >> wended the light come on? as i mentioned, this used to be -- speaking to someone in a moment -- this used to be one of the things where you go to the mall or someplace else, but you go to get deals on televisions, not cars. >> typically december has been a good month for offering deals. as you said yesterday, these guys need to move their inventory awful lot for what is coming next year. december to remember was a campaign that lexis started doing a couple of years back. that was a big one. santa started working for mercedes-benz, that was a big one. they realize that they could

move these incentives forward. christmas has started moving into november, in case you hadn't noticed. the holidays general, that probably tipped them off. >> which one stepped on the gas? >> not a surprise, chrysler again he out everyone else with a 20% gain in sales, they had huge success with their chrysler 200. >> how do they keep doing it? mainly the growth engine. they were up 26% this november. as you can see here, gm was up estimates as well. ford was down a little bit for couple of reasons. they are switching over to trucks, as you know. a lot of people are putting off their truck purchase now and waiting for the new model next year. >> who was the biggest disappointment? >> you know what, everyone beat analysts estimates. no one missed.

i would say that the biggest disappointment was analyst. most of them did not get this right. a couple of them did -- shout out brian johnson -- but a lot of them were a little bit too bearish year. >> matt miller, thank you so much. more now on the november auto sales in the u.s.. james follows these companies at steeple from washington, joining us live. welcome to "bottom line," thank you for your time. >> thank you for having me. >> matt miller was talking about the analysts who hit it on the head. were you surprised? >> i am not sure what to say to analysts being a disappointment. overall i think that what is different this year -- i agree with everything that matt said, but this year we are trying to figure out real time today and as manufacturers are reporting, gas benefit is playing into these arguably pulled forward sales into the black friday holiday?

a lot of consumers are extending the life of their vehicles. historically we have run closer to eight years or nine years. is this enough of a catalyst to get folks back into dealerships, i think that is the real question. >> we are just receiving headlines that the total vehicle sales for ford for the year was down 1.8%. your reaction to that number? >> not surprised. f 150 is a monumental changeover, it is one of the key aasons he upgraded them to buy rating earlier this fall. it is a landmark change for any vehicle in the u.s. with an aluminum body pickup, which we think is going to set the standard for not only savings, but i think it trickles into other segments over time. >> are we missing a back to the future moment here? are the 1990's back? >> i think it is actually more like the 60's or 70.

we are going to see more model refreshes faster. nuancessee tweaks and six and 12 months out, with remote updates that i think tesla has really focused on. a lot of it trickling down to the rest of the industry. it is going to update more like your iphone, for example. that is where the change is coming, that is sort of the future of connected vehicles. >> is this about black friday miller was just talking about? or gas prices at a four-year low ? and to piggyback on what matt said, wended black friday become associated with car sales as opposed to big-screen don't know? >> we for sure, but based on what we have seen this morning, what we heard ford talking about on their analysts conference call today, it does not sound like incentive activity has changed very much. it sounds relatively rational on

a month over month basis and, are importantly or apps, year-over-year basis, points to other things, like gas prices. consumers are just generally feeling better, perhaps, about the economy or wages, job security, things like that. >> you know you just talked about incentives a moment ago, some deals really sparked interest with volkswagen having financing for 60 month loans on its sedan. bmw offered potential buyers a $3500 credit. is there a risk to the bottom line in deals like that? >> i think it is difficult to say. you have to look at it by segment. certain manufacturers are at different stages of their cycle. an incentive on an older model that is lower inventory is not as dangerous, if you will, as an incentive at the beginning of a cycle. it is hard for me to comment

specifically on that. for what it is worth, the fourth quarter is usually about luxury, as you and matt rightfully pointed out earlier. it is becoming more about the midline. that is the other part that is interesting. >> the trend appears to be towards suv's. sales of the jeep cherokee, the row, jumping. is the pricing environment right? are gas guzzlers making a comeback? >> i would qualify that a bit, these are crossover utilities. bit sense you are getting a more utility, and no pun intended, versus a sedan without sacrificing a significant amount of fuel economy. in many cases crossovers can get north of 30 miles per gallon, which is different from the large suvs that we know and love .

from gm, the expedition from ford, those are still in the mid to high teens. it is a bit of a blurring of the lines. >> the volatility that we are seeing in the energy market, is that going to wind up being a plus for the consumer? >> look, i think so. manufacturers so far today i think would agree. based on their comments it is a persistent, mid to high single-digit deflationary environment for gasoline prices. it is a sort of tax refund of sorts in advance of the new year and the holiday season, so it is particularly important, the timing around this. how long this will last remains acrossion, but certainly retail right now i think many would agree that it is absolutely a positive catalyst at this point. >> james, joining us from

washington. thank you so much for your time and perspective, we appreciate it. >> thank you for having me. >> up next, on the markets from julie hyman, plus a focus on jobs. college freshmen are learning that it is never too early to start lining up to employment. ♪ -- good employment. ♪

>> the fallout from president obama's decision to temporarily defer deportation for as many as 5 million undocumented immigrants started to emerge on capitol hill today. republicans are using a series of hearings to attack the proposal while also facing a deadline to fund the u.s. government. frommattingly joins washington with more on this developing story. good afternoon. both chambersn are currently facing a limited amount of time to pass a number of crucial items. among them, as you mentioned, funding the government and the president's decision to move forward on that last week has caused some major problems, something that mike mccall,

chairman of the house homeland security committee, laid out today. listen. >> we are facing crucial challenges the wire congress and the white house to cooperate. from combating overseas threats to economic growth. but making an and run around congress, the president has deliberately and willfully broken the trust needed between our branches of government. >> house republicans were going to go first on the spending proposal and are in the middle of trying to figure out their pathway forward right now. one of the major fallouts? homeland security department, it looks like their funding will be kept on a short leash. we are already seeing direct reaction from house republicans. the primarythen concern? >> jeh johnson has a very good relationship with a bipartisan

group of lawmakers on capitol hill, but there is no question today that amongst the tense of thes today, one questions was whether the president has the authority to take the action that he did. the other key thing is whether the action will drive more illegal immigration into the new flow of immigrants, if you will. jeh johnson made it clear that under the president's policy that anyone comes after january 1 of 2014 will be immediately deported. a lot of questions, a lot of tense moments in that hearing today. >> just quickly, this is not the only issue facing congress in its final session days. what else is out there? >> the first item is a tax break , up to 45 trillion, that is crucial. you also have crucial nominations and defense authorization bills. we have two weeks left it a lot

to do. >> all right, phil mattingly, joining us from our washington bureau. thank you. coming up on 20 it's past the hour, that means that bloomberg television is on the market. julie hyman is standing by. good afternoon. mark. let's talk about where stocks are trading right now. the decline has a extending, but we are at the highs for the .ession energy stocks have been leading gains throughout the day as oil prices continued to decline. in terms of individual movers, check out general financial, declining after j.p. morgan cut its forecast on the stock. and by tech, showing promise in early results, quickly moving into a final stage trial.

shares are up 16% this year. we will have more in 30 minutes. more "bottom line" is next. ♪

>> welcome to the second half-hour of "bottom line" on bloomberg television. thank you for staying with us. it is time now for the commodities report. su keenan joins me in the newsroom with details on what this 24 hours difference makes. >> we are seeing an awful lot of red on the screen and across the board. sugar, corn, all falling for oils, it is the fifth drop in six days in the huge reversal. reached an agreement. traders say that puts additional supply and downward pressure on

the market. you can see the big picture there. check out the price action as we head to the close. this comes a week after opec, terrible timing. it will be a bumpy ride downward. this analyst says there could be terrible crisis for a terrible long time. will this slow the industry down? ceo says there is no need to panic. meanwhile, economists are throwing around staggering numbers. >> we benefit most from lower oil prices. fromnergy bill has gone up about $9 billion a decade ago to about $60 million over the last few years. tends to narrow our deficit is five billion

dollars. >> most economists, will they just the positive impact? and volatility has caught hedge funds and other speculators off guard. significant or a dead cat bounce. one hedge fund has made a lot of money on oil and it has got a lot of traders mixed up in the crosshairs. >> let's talk about metals. a reversal of gold? >> absolutely. 7%.er is up that is over. dollar strength is the goal's biggest energy. prices do not help. u.s. traded and 18 commodities rose 10% last week. rally in morest than your has faded. a barometer of the global economy. >> su keenan with the commodities report.

thank you. the quintessential staple of the mediterranean diet. so synonymous with the italian sunkist landscape are under threat. the weather and pestilence are wreaking havoc on crops, pushing prices up. erik johnson reports. >> since i was a boy, i have never seen a season like this one. in 1985, we had a strong freeze, but we did not ask. inrastic drop in -- production. >> the farmer labors away on his 1000 olive tree farm in central production. >> the farmer labors away on his 1000 olive tree farm in central industry -- italy, famous for its oil production. in a good year, he sells his oil to local customers. oil to year, i have no

sell at all. the quantity i've managed to use will be used up by me and my family. i've have lost about 80% of mile -- my oil production. 25-30,000 have lost income from my farm. this time of year, you would not get into the oil mode because of the tractors. as you can see now, it is all dead ear there is no one around. worth 2 oil production billion euros a year, but an unusually wet summer means costa not get what they needed to flourish. add to that an invasion of fruit flies that spread a disease known as olive tree leprosy. >> this season, we expect a considerable drop in production nationally -- in this area, it would be on 70%, a significant figure in the reason where olive oil is being produced for over 6600 years. of extroversion --

extra-virgin olive oil is expected to go even higher. profit is being slowly eroded. >> cooking is costing more because we need to buy all of oil. we cannot afford to raise the price of our meals. we cannot do that in the time of crisis. thend might have to save case before pricesprofit is bei. go further and before the market is invaded by cheaper, european alternatives. bloomberg's erik johnson reporting. some colleges are beginning to offer career services to freshmen, long reserved for seniors, there is now a push to get students making about what they will do after graduation a little bit earlier. janet joins me now with more on this story. story, never to late to

fret about jobs. say,is leading you to maybe i should think about this earlier? aboutleges are thinking not only future employment, what -- but what kinds of classes and majors they are interested in. with a lot of worry about jobs for not only students, but parents, colleges are being asked to show their value. to inviteense students to think about what interests them, and introduced parents who are interested to just think. >> according to your story, stanford and princeton are taking the lead in this. stanford has three people working in their career services office just for freshmen and sophomores and they send students weekly e-mail is

-- weekly e-mails and you can meet up with other types of students, seniors, health look at your resume, meet other learnial employers, and about research opportunities. university of michigan is doing things also where they have, they call it, coming in on fridays, offer fresh and free lunch, and just let them know about opportunities, and get them excited and aware of the world of work. >> this seems like it makes so much sense. is this a sign of the times? why are colleges and universities doing this now? >> there is so much angst about doing this in college. the price has gotten so expensive in some schools. private schools are $60,000 or so for the year. you have got to keep in mind that students are borrowing more. the average debt for those who torow for college is close $30,000. students want to make sure they

will end up with a good job that will help them pay off that debt. durings speaking to you the commercial break and your story, you spoke to a young man named jeffrey gleason, a student at princeton. what did he tell you about his anxiety about getting work? >> he said he never really thought about what he might want waso for a career when he in high school. a reasonable mistake you make by an 18-year-old. hansen has workshops that would offer guidance for things you might like to do and why the questions he was asked is what gets you excited. he said he really enjoyed sports, analytics, and never really thought about that as a career. that got him thinking and now he has a plan of who you might contact for a potential summer job. >> externships. what is that? >> some colleges have long winter breaks and this gives students a chance over a spring or winter break to go spend some

time, often with alumni of that school, to see what they do. it is really introducing young people to the world of work. it is not just spending a couple of hours hearing a lecture of what somebody does. it is actually going with them to their job for a day or two days or a week to get a sense of that kind of profession. >> does it lessen their anxiety, knowing this is available? >> one woman i talked to said she decided she did not want to go into engineering. she wanted to choose a different path. i think it just gives them an idea of what is out there and what interests could match up with a potential career in a couple of years and left them know, who is a family face. >> don't be in such a hurry to get out of it -- to get out of school and get a job. it is hard out here.

janet, thank you so much. up next, trish regan joins me with a preview of what is ahead at the top of the hour on street smart. "bottom line" on bloomberg television continues in a moment. ♪

>> it is time now for the latin america report. opec's refusal for cutting oil production increases -- venezuela value currency until -- and sell its oil unit to avoid default. notesuntry's benchmark june 2027 sank to a five-year

low, and the price of oil accounts for 95% of venezuela's export revenue. brazil's congress is scheduled to vote on a budget bill that is become a key test, control over her coalition as she forms the remainder of her cabinet. low, and the price of oil accounts for 95% of venezuela's export revenue. brazil's congress is scheduled to vote on a budget bill that is become a key test, control over her coalition as she forms the remainder of her cabinet. the bill would effectively eliminate this year's fiscal toget, preventing attempts take legal action against an administration for having failed to comply with the budget law. that is your latin america report for this tuesday. still ahead, secret angels descend on london as the victoria's secret show takes place in the u.k. for the first time. ♪

>> this reminder, there are multiple ways to watch bloomberg television. we on -- we are on the web on bloomberg.com, your mobile device on apple tv and amazon fire tv. i am mark crumpton. the hottest ticket in town tonight is that the annual .ictoria's secret fashion show the catwalk extravaganza has

come to london. bloomberg caught up with the stars of the show and found out what it takes to walk the victoria's secret runway. ♪ >> i was very lucky to have a chance. the biggest thing is luck. >> we have to work a lot not only with looks, but you have to be healthy all year long. workouts, show, my what i had been eating. to feel my best. >> to realize it really opens the door for you with different jobs, and you were working the streets around the world.

it takes a whole lot of confidence. able tolth and being take care of yourself and be strong. >> i wonder what matt miller would say if he were up here with me. a slide today after monday's rally fizzled. it is one of the big stories coming up at the top of the hour on street smart. i was telling su keenan at the bottom of the hour. >> i was laughing at the taciturn you had to make. victoria's secret angles to oil prices. oil, we are seeing getting hurt again today. it has been suffering over the last couple of weeks. everyone was watching the opec meeting very carefully. they were deciding not to

increase production. there were some holdouts who were hoping we might see something different out of opec. i made a point on street smart you that a lotto of this has to do with opec wanting to make sure u.s. manufacturers are feeling the pinch. as oil prices come down, it makes it less attractive to those investing in the shale industry and should ultimately mean less competition with, say, the saudi's. that maybe some of the thinking behind the decision to not increase production. venezuela does not like it, and let's not forget all of this is having a very effect on russia. >> we talked yesterday, i was speaking with catherine, and what they're looking at in russia now is you have russia headed toward another recession

and the impact of these international sanctions because of the ukraine. >> yes. and of course, you also have oiled -- oil prices declining. and the ruble is not being held by any of this. in a lot of ways, it puts some probably much-needed pressure on vladimir putin. it certainly handed the u.s. a bit of a card, if you would, in that he is willing to be under pressure to try to really stimulate that pressure. even though he has maintained so much popularity throughout all he has done it -- he has done there in the region, this may start to erode it a little bit because if people do not feel secure in economic futures, they will not be secure in their leadership. >> coming up, israel. >> yes. we're talking to the israeli and ambassador to the u.n. and we will get more up dates from him

on exactly what we can expect out of israel in the coming days. >> all right. coming up at the top of the hour. thank you so much. as we had to break, the markets , theow some of the highs dow jones industrial average now. the s&p 500 is up nearly three quarters of 1% in the nasdaq composite. a 32 point rise right now at 4760. stay with us. another check of the market movers is on the other side of the break. "bottom line" continues in just a moment. ♪

>> that does it for this edition of "bottom line" on bloomberg television. on the markets with julie hyman is next here it i will see you on wednesday. it is coming up on 56 minutes

past the hour. we are on the market. let's take a look at where stocks are trading. energy and health-care are leading the gains today. snapping back from yesterday's decline. we have been talking a lot about retail stocks in the past few days. the retail acf trading near a high that they had on black friday. it then came down a little bit yesterday. is mark, theday retail tracker and managing director, like so many folks attracted to the retail industry, he has in pounding the industry. yesterday, the national retail federation said spending was down 11% there it some of the industry have come down and questioned that number. from your observations, what were you seeing? friday -- black friday promotions going to the

weak. does not put the full ability to understand what was going on in the holiday season. >> even if there was an 11% drop on black friday, because there is a spreading out of spending, it is not as dire as it appears. >> definitely. when we think back to what the traffic was like a year ago, better traffic this year than last year because of the early promotions going on. >> what stood out to you in terms of trends when you look at traffic and spending? >> there were people walking around with wes. we heard people in the mall talking about going online and at home and now seeing what they looked like, did not want to wait on line. there is a lot going on because people shop on the computer and tablet or in-store, it gives them tremendous flexibility. >> we were talking to neil the

other day about the idea of the attachment rate. if i am in the store, i am probably picking up more than one thing while i am there there it how much is that half the online for the people migrating there? >> it is less so, i think come a because it is very easy to go online on a website, put something in your cart, and then decide where to go. more difficult once you make a commitment to go into a store and then decide, do i go back to the store later to find that item? you are also seeing particular retailers doing well. lululemon, which has had such a struggle in the past years. is this holiday going to be the read birth of lululemon? >> what is going on is you had a new merchant a year ago and it took 12 months for the product to flow through. some of the other issues they

had in 2013 now are behind them because they did not come back this year. it is a blend that is very compelling and women love the femininity of the brand, but having the technical aspects, and we saw great traffic and very little promotion in the store compared to others. >> we will have to leave it there. i could talk about retail all day long. mark looks closely at the retail industry. "streetsmarts will -- "street smart" is next. ♪

>> look into the big show come the most important hour before the session. stocks here are on the rise thanks to a rally in biotech and energy companies. is headedia admits it toward -- tom will discuss. discuss.umes will i will discuss what the next steps are there. up now.smart" is