germany. he holds a press conference at 8:30 this morning. and 72 crayolas, pantone releases of the color of the year. it's a dark red, orangey kind of -- scarlett is going to blow up her whole wardrobe over marsala. unbelievable. it is thursday, december 4. i'm tom keene. joining me, scarlet fu, brendan wearing 2006's color this year. good to see that. >> it's a classic. >> started out quiet about 3:00 a.m. let's get to our top headline, new information. >> this just happening in the last few hours. russia's president vladimir pickup taken taking aim at the u.s. and european union in his annual state of the nation address. putin says the pair would have imposed economic sanctions on russia anyway no matter what happened in ukraine. he says their goal is to hurt the russian economy. he called on russians to end their dependence on imports and added business needs more freedom from bureaucracy. another controversial grand

jury decision voling a black man killed by a white police officer. near new york city, protests erupted after a grand jury decided not to indict the police officer for killing eric garner. garner was killed with a choke hold while he was being arrested for allegedly selling untaxed cigarettes. garner's widow spoke last night. >> i'm determined to get justice for my husband, because he shouldn't have been killed in that way. he shouldn't have been killed in any way. he should be here celebrating christmas and thanksgiving and everything else with his children and grandchildren. >> meanwhile, the federal government will conduct a civil rights investigation into garner's death, and the officer may still be disciplined by the new york police department. >> another day, another record for u.s. stocks. the dow jones industrial rose 33 points, closing at a record 17,913. that is the 33rd time this year the dow had set a new high. the s&p 500 set the record of the year. it's now at 2,074. tom is in cash. >> i'm in cash.

>> meanwhile, we're waiting to hear from the e.c.b. president, mario draghi. he pledged to raisin nation in the euro area as fast as possible, but some of his own governing counts sirbling the germans, are urging him to go slow. we'll hear from draghi at 8:30 eastern time. house speaker john boehner has come up with a strategy to avert a government shutdown. he has to go hat in hand to lock for democratic votes for legislation that would keep the government in operation after next week, but not all of boehner's republicans will go along. to keep them happy, boehner has to hold a symbolic vote as early as today that would reject president obama's immigration proposal. the real fight would be moved to january, when a new congress convenes. >> you heard this script before? >> 17 states filed a lawsuit against the president wednesday saying he violated the constitution with his executive orders on immigration. tom? >> very good. in pro basketball, no, not the new york football jets, how about the philadelphia 76ers? they avoided tying a record for

the lose worst losing streak ever after starting the season with 17 straight losses. the mighty sixers beat minnesota last night 85-77. they trounced them. another loss would have tied philadelphia with the nets, who started the season 0-18, 0-18 five years ago. those are your top headlines. very quickly, it's a really nuanced look today, not much going o. futures up one. 10-year does nothing. euro churns at 123.15. oil churns as well. on to the next screen, please. the v.i.x., 12.47. two-year yield is important. that's a higher yield over the ast three days, 0.55%. yen is at 119.94. a real watershed with the 120 print. and there's switzerland. i brought this up because this is the tension of what draghi confronts this morning. there's actually a negative yield of three digits.

that's the five-year piece. it's a three digits, a negative yield. it's surreal, the distortion. >> swirtsland is so stuck, trying to figure out how to exist inside the eurozone. >> here's the monitor this morning. this is the russian stock market. it's the russian stock market. in rubles. >> ah. >> if you bring it over to collars, it changes. and there's the visible devaluation of the russian ruble. i can come back and do that again by typing in here r.u.b. this is what vladimir putin would like. not bad. >> it's what foreign investors look at. >> so much international investment. >> actually adjusted for putin, it just goes up here. >> we just had absolute silence. >> it's off the charts, actually. >> we just had absolute silence in the control room over the beauty of that chart. >> the elegance of it. this is something they've been saying about the ruble as well.

they've been saying thank god the ruble is dropping, so now we can balance our ruble-based budget. >> i call a devaluation. here we go. on draghi this morning, jonathan farro will join from us our london bureau. there will be an announcement at the 7:45 moment. that's at 8:47 this morning when mario draghi leans in to his press conference. he'll be speaking to many constituencies, including our federal reserve, but far more all of europe as the united states of europe is tested. peter henry is dean of the n.y.u. school of business. that barely describes his work. previously at stanford, international economics, has worked with the american economic association publications. i look at the international economics of this, and it still goes back to 1946. is the european experiment a threat with what we've seen over the last two months? aurp european experiment is definitely under real stress

right now. mario draghi faces dissension amongst his counsel. he has to do something very serious with respect to monetary policy. he said he would do what was is necessary, but the germans feel very differently. the real issue facing europe is quantitative easing is definitely something they need to look at very strongly, but the real issue here is two other words, structural reform. europe has not dealt with the structural issue it needs to deal with, from the labor market -- >> ok, fine. you and i could have had this conversation where you were dunking basketballs at u.n.c. here's the bottom line. everybody wants structural reform am it's not going to happen. >> is there enough time? foxx is catching up with economics in europe, and you have the alternatives for deutscheland party in germany, which is frustrated. all over europe, you have other parties that are gaining power against the euro. >> here's the point. monetary policy is playing the role of providing the space for policy makers to actually do what they should be doing, versus addressing the real,

underlying structural issues. >> do you see evidence they are? >> very little. what i would like to see is the international monetary fund to push, frankly, much harder on europe to take some of these key changes, but the i.m.f. pushed developing countries years ago. >> how can they possibly push hard? we can all agree this is the problem, europe needs structural reform, but they're pushing as hard as they can onity scomplee greece. we can agree this is possible. how do you actually do that? >> well, politicians have got to get serious. i think we have to continue to put this issue out there as a central issue. the more we talk about quantitative easing, which, again, i agree, it's an important policy step, potentially for europe to have more space to deal with structural issues, but the more we fwalk that, the less is immigration is an issue with an aging population, with labor market rigidities with the difficulties starting new businesses. these are the things that are openly going to drive productivity and growth.

>> but are there just too many degrees of freedom? there are 17 nations. scarlet, help me, or 25 -- >> it doesn't matter. they can't agree. >> you know stuff better than me, but there's just too many moving parts. >> there are many, but it's important to think about the european experiment and the broader sweep of history you said earlier, tom. the european union is currently going through a very difficult cycle, but you have to think about the benefits that have come from having a unified europe -- >> starting with no wars. >> exactly. that's a major economic impact that, frankly, we don't account for everything. >> scarlet, what color are you wearing today? >> i believe it's marsala. >> we're going to do this later. >> peter henry, i want to get back to mario draghi, because he will be making the announcement at 7:45 and then holding a news conference. he's speaking to audiences, the investment community and the leadership of europe.

what what does he say to the leadership of europe to have an effect? >> he's already spoken to them. if you go back to mario draghi's speech this summer in jackson hole, wyoming, i was there to witness his speech, he made very clear that the european politicians need to address some of the structural issues we were talking about earlier. on the other hand, he needs to make it clear that from the monetary policy side that the e.c.b. will be prepared to do whatever is necessary to provide the space but again, critically, leaders have to take advantage of that space. >> let's talk about another italian leader, the prime minister of italy. how does he tell his population to stick with me through the pain, we're going to get there? all they see is the pain, and they're getting tired of it. >> this is a real issue. the role of a leader is to define reality and give hope. reality has been defined pretty well, and the trick of leadership is going to be how do you actually get -- how do

you create enough momentum and create some small short-term wins to actually get through the difficult times? >> cut to the immediate chase. there's a piece in "the f.t." asks where is sarksark's arrows, like abe. japan is hugely monolithic, the anti-europe. they've got a set of arrows, some don't. i don't see any arrows in europe. what signal are you looking for from the institutions? brendan, help me here, brussels, the funds bank is clearly the lead institution. i don't see the dialogue to change 1% g.d.p. for ages. where will that come from? >> the germans have to take a leadership role here. even though we talk about the importance of structural reforms, the germans yielding on their very hard line, on fiscal policy, and on monetary policy and saying, you know, we really need to get monetary

policy moving in the same direction, it would be a big step. easing on the european impact, which has been forcing consolidation at a very fast pace -- >> scarlet, what about the russian thing today? >> yeah, there is a russian thing. vladimir putin pledging to punish speculators for attacking the ruble, also compares his opponents to hitler. these are very inflammatory words -- >> he said that? >> yeah, he did, actually, hitler was going destroy russia, everyone should remember how this ended. he goes on and on and says, we overcame the enemy, freed europe. what do you make of this? i know you've written about it, third-word lessons for the first world. what can the first world learn from what putin is doing? >> what you're seeing is a failure of policy. we've seen this script many times before. you looked at the graphic earlier of the russian stock market and dollars versus rubles --

>> did you like that? >> yeah, it was a very nifty graphic. the point is that what matters is real returns, and policies that have led to devaluation, clearly undermine confidence, and russia is in a real bind right now. >> let's go to the russian ruble immediately after putin speaks. here's the good news. russian ruble stronger, oops, putin speaks, headlines even more. we've got a weakening of both. >> and i mean, the policy that he lays out, if you actually look at it as an economic policy, it's closest to north korean u.k. than self reliance. this is the reaction to russian self-reliance. >> we learned a long time ago that the goal of economic policy is not self-reliance, especially when it comes to exports and imports. it's to generate efficiency through productivity. we're not interested in banning imports. >> gail gets paid by the image. let's have a chart overdose

this morning. here's the improvement the last two case. this is the putin headline, right back there. >> the second he said the word hitler right there, that spiked right there. >> we kid, but maybe it was. but there it is. >> coming up -- a different kind of war. opec has declared war on the frackers of north korea. oil prices are dropping. will that tactic work? we will discuss. ♪

>> good morning, everyone. "bloomberg surveillance," we look at the unrest, the protests in new york city last evening. will police body cameras make a difference? that's a profound question asked by any and all asked across america this morning.

will police body cameras make a difference? we would like your serious comments, whatever your persuasion and thoughts. do that @bsurveillance. we ask this question across america and around the world this morning. we say good morning. scarlet fu and brendan greeley with me this morning. >> it was hydraulic fracturing. univar mixed the chemicals to do, it then delivered them to the well head. it's a $10.5 billion company you never heard of, founded in 1924 in downers grove, illinois. eric, this is under $70. we've talked about what that does to capital expenditure in the u.s. going forward. what does it do to suppliers like you? >> well, it no doubt will have an impact on drilling. it will decrease the drilling rates today. but i think that i'm optimistic, because i believe that the fracking industry in the united states is very

entrepreneurial. we'll find ways to lower the cost, and we'll be back out there next year going forward. >> are you already seeing orders change as a consequence of the drop in prices? >> we're seeing some orders start to reduce and -- reduce in some of the higher cost areas. >> can you say which areas? >> there are a few higher cost areas across the u.s. that are related to companies that often have higher debt, the drillers are more careful with what they're doing. the drilling that's already occurred, those wells are being completed, and the oil will be produced, but it's some of the new drilling that has been cut back. >> ok. >> how healthy are your customers, the drillers? you must be concerned about the financial health of these companies as oil prices continue declining. >> well, there's a range, and in a situation like this, the oil industry goes through ups and downs. this is a normal course of events. the strong get stronger during a situation like this.

i think it's the companies that are very highly indebted, that have the biggest challenge. >> you have an insight in the fracking market in europe as well. you're number one here for what you do, but over there you're number two. what do you say the prospects for actual sort of active fracking in poland, in the u.k., where we know we have these deposits? >> i think it's going to come, no doubt. i think the lower oil price gets pushed back, but i think in the u.s. is where the leadership is coming from and why i'm so optimistic about the u.s. is because even at these lower prices, the drillers, the system, the industry is finding a way to get the oil and gas out at lower, lower costs. >> ok, so as we wait out to see how oil prices behave, oil and gas makes up 19% of your revenue. are you looking to shift that and reduce that and increase your exposure to personal agriculture over the next year? >> well, sandoil gas makes up 19% of our revenue, and it has four segments to it, so it's

got the upstream, the drilling, and the fracking. we have the midstream where we have additives for pipelines. we have the down stream refining, and we also have mining. the other three segments of the four in the oil and gas mining area are unimpacted by this. so it's only the upstream drilling. >> you're looking to tilt the balance of it. >> yeah, we'll see a slowdown in growth of the drilling, but i am extremely optimistic about the future of drilling in the united states. we're not going to pull back. we're going to strengthen our position during this situation, because for the next five, 10 years, this is going to be a tremendous market. >> erik warning us to be optimistic, but be wary of highly leveraged frackers in high-cost areas. thank you very much. >> thank you. >> very good. dollar-yen back up to 120. we are about 10,000 for the japanese yen. we're watching that very closely.

someone will speak about it coming up on bloomberg television. rabinee on japan, russia, rabini on the e.c.b., stay with us. ♪

>> good morning, everyone. "bloomberg surveillance," i'm tom keene. a busy morning with brendan and scarlet. let's get to our morning must-read on a most sensitive topic. here's brendan greeley. >> yesterday in the "daily news," harry siegel went and looked at all of the tape that exists around the death of eric garner and had a come to jesus moment. he wrote fear of police and lost faith in justice are real,

corrosive forces. it makes parents and their children fear the people who are supposed to be protecting them. good policing demands community buy-in, perception matters. the tape there is devastating. people henry, you live with us here in new york. is this failure to return an indictment different from the other failure to return an indictment? >> well, i think you look across all the episodes. in any individual case, you say, well, the circumstances may have been different, but what i think is concerning to people is the pattern. and frankly, i'm a father of four sons here in new york city. and i talk to my sons about this issue very openly. >> what do you tell them? >> first of all, we live in a great crifment i'm an immigrant. i believe in this country. this country has opportunities for my couldn't have had anywhere else. but when you go out of our house, you carry an i.d. with you, and there's a certain way n which you comport yourself when you act with law enforcement, and if you don't,

quite frankly, you put yourself at risk. >> i've never had that conversation with my kids. >> you don't need. to >> i don't need to. i would suggest she doesn't need. to >> i don't know about that. >> i have to. i must have that conversation. >> you have to. this is the heart of the matter. do you have get the heart of the matter? >> do you get the sense anything is changing that we're forced to talk about this? >> i think there's now more public dialogue than there's ever been about this. there's still extremes, which i think is not useful. i think president obama speak very well about this recently. >> right. >> i think we've got to find the middle ground, and recognize there's a real issue and make sure that as we talk about this, folks who as tom said are not impacted directly by this, try to have some empathy for those who are. >> i live in a privileged address where i enjoyed three helicopters outside my window last night, one of them looking like hollywood and l.a. with the lights coming down. very quickly, when i look at a

new york city, including your students protesting, how do we link your students and students at n.y.u. to the people in statin island trying to protect us every day? how do we make that linkage? >> i think it has to start with real dialogue. you know, we often talk about how we live in sort of a u.s. of two economies, for instance, and that applies beyond economic circumstances, in our social lives. we live in a society that's become too distinct, too separated. >> peter henry, thank you so much. peter henry on his new york city. good morning. ♪

>> good morning, everyone, from new york city. our twitter question of the day, we need your serious comments on an important issue. will police body cameras make a difference? obviously front and center after the significant protests last night across new york city. will police body cameras make a difference? do that @bsurveillance. we have other top headlines on "bloomberg surveillance" this morning. >> we begin with russia's president, vlad my putin taking aim at the u.s. and the european union. putin said they would have imposed economic sanctions on russia no matter what happened in the ukraine. he said their goal is to hurt the russian economy. he called on russians to end their dependence on imports. he also said businesses need more freedom from bureaucracy.

heavy rainfall saturated drought-plagued california for a second day. they provided badly needed water for reservoirs and crops and broke morn a half a dozen rainfall records. one location in the san bernardino mountains reported almost 10 inches. most of the state recorded totals between two and four inches. sony pictures found the source of that sign air tack where several hundred -- or i should say, several unreleased movies were stolen, and it looks like north korea is to blame. that's according to a person familiar with the matter, who says the studio is deliberating whether to announce the findings publicly. the probe has linked the hackers to a north korean europe known as dark soul. the group is said to have made similar attacks against south korean banks and television studios. >> very quickly, brendan, 15 seconds, is this game change the debate on cyber? >> no, it doesn't. these are the kinds of things that happen. the thing is that debate we're talking about, it's already actively happening. the u.s. i think can do a lot more than it admits that it can

do, and the problem is we don't yet have the rules in place. the capabilities are all there. >> it shocks me to say the least. we need to go to washington. john boehner will need democrats, and if the speaker needs democrats, he might as well have them now. 85-year-old louise slaughter, the democrat from fairport, new york, says nancy pelosi saves the day. right, it's all part of the immigration and budget balance net washington. we need to go to ballet meister phil mattingly -- >> i don't know that it's a ballet. it's more like everyone is stumbling into each other. >> ok, maybe it's wrestling. you lame duck guy you, help us translate. how angry is the tea party at speaker boehner this morning? >> they're angry, but i think there's also a recognition that boehner's plan to get to january, when they control the senate, when they control the house, is probably the way forward. look, they're going to vent their frustration. there's a lot of parallels to what happened in 2013 right

now. you've got ted cruz and mike lee on the senate side trying to urge the most conservative republicans on to oppose john boehner's plan. i think the writing is on the wall here. unless something really drastically, dramatically falls apart in the next 48 hours or over the weekend, we should be clear here. >> we're doing pantone colors later in the hour. phil mattingly is wearing lame-duck brown this morning. >> oh! i'm wearing annoyed blue. you know, i'm looking at these lawsuits by the 17 states against obama, the president's immigration policy, and i'm wondering, are we now learning, after state lawsuit after state lawsuit, is that an effective vent for anger? is that what we're going see in the future instead of congressional action, symbolic action at the state level? >> you'll see congressional action too, brendan. if you talk to house republicans, house republican leadership, the way they look at it, one we get to january we can try to figure out ways to

take this apart. they've always said that i think you have john boehner's lawyers, his house counsel are also looking at legal options too. they can't really figure out how to get at this. the agencies that they're trying to defund are self-funded. the rules themselves, prosectorial depression over the course of presidential history is pretty you have to cut back on. what you're seeing on the state level, brendan, to your point, it's a good vent for the moment, but washington is going to have their shot at this, and knowing they're going to go at it hard in january and february. >> i want to bring in our guest, peter henry, from stern school of business. you played a number of roles in which you advised washington. you testified before the senate committee on foreign relations before. give us your impression when you talk about the lawmakers. do they listen to what you have to say? are they learning? are they curious? is it just grand standing and political theater like it seems to so many observers? >> there's a mix. the person who is a particularly good listener is

barney frank. i remember testifying on issues global marketplace in the post-asian financial crisis, and barney frank really wanted to understand the issue. barney frank, i'm afraid, is sort of the minority, it's been my experience. there is more posturing than real listening. i think we need more real listening to get practical solutions to these issues. >> and we missed the chance -- barney frank, i mean, eight years ago, he suggested a grand barter between the two parties, which is if the democrats can agree to free trade, then the republicans could agree to better social security protection, that seemed so naive and far off in the distance now. >> it's a long way away, but i think we need a conversation where you hearken back to times like that. there were actually times where we could have a conversation by getting things done. >> where do you see republican leadership then? who will republican leaders that can speak to zpems find a common ground, who are they? >> i would speculate as to who those people are -- >> can jeb bush do that?

>> certainly a person who believes in pragmatic solutions, and i think on the immigration issues, it's a critical issue, an economic issue, frankly. we've got a shortage of skilled workers in this country. and even putting aside the amnesty issue, we need more. the united states competitive edge is the fact that we're an open society. we take in skilled workers. right now we have a shortage of skilled workers in this country, and immigration policy is the key to economic growth. it's one of the reasons why europe continues to struggle, one of the reasons why japan continues to struggle. there is an intersection between a pro-business prorks-market philosophy and getting something practical done that's also humanitarian. >> i want to bring you back in the conversation. we've been focused on republicans. what are the democrats doing as they watch the republicans gather round and come up with these structures? >> enjoying every minute of it. they love the fact that they're needed. look, when you're in the house minority, the house minority, look, in the senate, as a

minority member, you can have some power and make changes. in the house minority, you really just doing matter at all, except when your house speaker, when the house speaker john boehner has had the conference he's had to deal with over and over again since 2011, house democrats have had to come in and bail out speaker boehner on tough votes like this. they love these opportunities right now, one, because they just kind of like to mock a little bit. you'll see nancy pelosi tomorrow will take a few shots here. but also, it protects the kind of overall shape of the legislation. on spending bills, republicans have the ability to attach things called riders that can attack different pieces of policy that the obama administration has put forward. when you need democratic votes, you can't include those riders. there's a little bit of they just enjoy the process, but there's also a lot of protection here as well. democrats like being in this position, even if they don't necessarily always like helping republicans. >> so, phil, nancy pelosi is just reaching into a tub of popcorn, having a good time right now? >> essentially yeah.

it's liker it ren owens, she's getting her popcorn ready. this is all going to happen over the next 48, 72 hours. they're going to watch the republican party beat on each other like they have the last three years, and then help them out when they need it tuesday or wednesday of next week. this is a process that democrats have gotten used to. they love going to cable news and talking about how dysfunctional the republican party is, this is just another opportunity for them to do t. >> phil, as you're up there looking around watching this movie unfold in front of you, who are the most active members of the republican, getting things done talk us? >> what's different between maybe leadership two or three years ago and leadership now is leadership is completely unified on a way forward. there's not a lot of palace intrigue about who will take out john boehner. obviously eric cantor is no longer in congress. you have a leadership team that's very unified, and that seems like an obvious thing, but for this conference, that's very, very important. i think the other interesting thing the republican study

committee, which is kind of the most conservative block of republicans has new leadership now and what those top members are doing is they have kind of dictated that they will no longer be going public to cause problems with john boehner. they would prefer to work with leadership behind the scenes. that matters. i don't know how long that sticks. we've already seen portions of that group fall out already. but if that continues, that's a big, big win for john boehner. >> all right. we'll look for that vote on immigration -- >> never a dull moment. i thought they were just going to back -- >> no, of course not. no, no, no. phil mattingly joining us from washington. coming up on "bloomberg surveillance" -- students at top m.b.a. programs reap to benefits of their degree. does their investment pay off? our single best chart is next. ♪

>> good morning, everyone. "bloomberg surveillance," i'm tom keene. good thursday morning. we have the single best chart. >> today's single best chart is the return on an investment of an m.b.a. degree, gven our guest host is the dean of the n.y.u. school of business. before i unveil the top and bottom five, the formula that they use, let's show it to you, this is what they use to

calculate the return on investment, the r.o.e., for the class of 2014. it's post-m.b.a. compensation bump divided by the tuition and fees, plus the pre-m.b.a. compensation. we express it as a percentage, basically how much of the investment the student recoups in the first year after graduation. >> so this is over one year? >> yes. out of the 43 full-time programs in the u.s., the top five returns on investments are notre dame, indiana, brigham young, carnegie mellon and vanderbilt. not exactly the elite m.b.a. schools. 44% for notre dame, of course, the mendoza school of business there. look at the bottom five. harvard, 21%. u-penn morton, 21%. columbia, 20%. stanford, 18% n. terms of your compensation, first year after graduation, you're not making it back given how much you paid back, given how much you were making before. >> but nobody is school for a 12-month cash-on-cash payback.

>> can you really put a big value on the chris crimson h on your wall? >> we did the math, when full disclosure, is totally bogus, but within the math, the biggest is the cost of tuition. you are all in $102,000 a year. kelly school of i understand as i understand all in at $71,000 a year. what is a student getting at n.y.u. for thed pods,000? >> first thing to notice is -- >> besides good food in manhattan? >> the cost of $102,000 -- >> is all in, everything in. everything, i understand. >> think of manhattan. i think what's really clear from these numbers, and one year is not right horizon to look at, but even over one year, these are double-digit returns people are getting. an education pays, the first thing they notice. that's point number one. it's a challenge for all of us that the cost of higher education continues to rise, and we're all working to make sure that we get maximum value

for education. i think the numbers suggest that we are doing that. >> what do you advise to the students that are three or five years out and the experiment hasn't worked? i hear this from a lot of deans. they're not worried about the person one year out who's gotten a lot of love and affection, they're worried about the person three, five, seven years out where it's not happening. how do you advise your graduates and that group at 32 years old? >> great question. first point is, three or four or five years out, the vast majority of our graduates, things are going very well. >> they're working for "bloomberg surveillance," we love them. >> we do have a couple. >> but one of the roles of a university, whether it's a business school or undergraduate institution, is taking a student, a student is part of your family for the lifetime, and so we provide a range of services to make sure we're not just touting our students who do really well, but those students who are struggling, we're providing opportunities for them to use their network to drive their career opportunities. >> brendan, jump in on this.

>> you know, what i'm wondering, dean henry, when do we start to think about grad school in terms of r.o. snifment i think that's relatively new. when i graduated in 1977, we didn't think that way. we had the lax are you of not having to think that way. >> i think you raise a really important point, which is that you can construct a metric, but that doesn't mean it's the right way to look at the world. there are many reasons to get an education. and if you cut it almost any way you want financially, a return to, for instance, an m.b.a. is going to be a double-digit over your lifetime return. but that fails to measure, to come's earlier point, the overall benefit and the reasons why you get an education. so i think in general we're moving to a world in which, in our desire to have metrics, we sometimes -- i just sort of grab on to metrics that aren't really capturing the full picture. >> ok. let's get to photos here this morning, and they're emotional photos. >> this is an important picture. this is in grand slam station.

a man is symbolically choking himself with a scarf. around him is a die-in. this is after a grand jury in statin island failed to indict daniel, the officer who put eric garner in a choke hold. you know, 30 people have been arrested in new york last night. there were protests in times square, several other places. this is our twitter question of the day, scarlet. >> it is. that choke hold was reportedly banned by the nypd as well, and now the nypd is looking to introduce body cameras. we're asking, will police body cameras make a difference given what's happened in ferguson and in statin island? tweet us, @bsurveillance. >> this is our next photo. this is a picture taken of the mayor of new york, bill de blasio, right before the indictment announcement was returned. he's holding a body camera saying the nypd is going to use them. there was a camera on eric garner, and it didn't change the outcome. >> it was from a bystander. the film frfs a bystander. peter, do you think that police body cameras will make a

difference? >> i think you've got to distinguish between technology and attitudes and feelings about justice. i think that technology can't bstitute for taking very , riously the inhe can quits perceived or real, inhe can quits in society. >> i think that's an incredibly important thing to safe. you can't fix attitudes with technology. the number one photo, the rockefeller christmas tree was lit last night. the 85-foot norway spruce from pennsylvania, even that celebration is not immune from what's happening in the world around us. bill de blasio decided not to make an appearance because of what's happening in new york. >> there are protests in grand central. there are also protests across the brooklyn bridge. and this was still happening,

even though protesters were swarming around. >> you can't cancel christmas, but these are important things. >> i think they're one block away. >> they're symbols we keep on going. >> we'll continue to monitor the developments. >> cyndi lauper singing "let it go." >> cyndi singing it? >> that would be cool. >> and frozen, we got there. coming up -- the science and business of color. the color of 2014 was radiant orchid. we tell you the color for 2015. this is "bloomberg surveillance." we'll be right back.

>> good morning, everyone. scarlet fu coiffed in some form of red is here today. brendan is in blue. i'm in got to go to dinner black stripes. i got a little bow tie on. i'm color coordinated at 3:00 a.m. >> there you go. it's not orange, but orange is the new black. that's what we keep hearing. no, not really. color authority pantone says next year's new black is marsala. pantone describes it as anethy wine red.

you may have already spotted this color during your holiday shopping, in the coffee maker, a pillow, or like a bow tie for tom. joining us to discuss the selection of marsala and why it matters to brands, pantone's senior vice president, and tpwhrobal trends in lifetime at lifetime brands. ron, why marsala? >> well, i think first it's important for people to understand that what pantone does and has done for 50 years is we give designers tools to pick the right color and then to realize that color through production. we're actually owned by a company called -- >> you get a consistent color from the designer's desk? >> exactly. tom as a designer, tom is designing products for home. he wants to know that his design is going to be realized through a manufacturing process. we give him a language -- >> well, what about this color this year? >> this color this year is about earth tones. it's about confidence. >> sensitive, manly color? >> it's a sensitive, manly

color, that's exactly right. >> what does it say about our state of the economy that we're going with a muted, confident color as opposed to something that was bright? the previous year was radiant orchid. >> great point. our color specialists, and i'll let tom address how we arrive at these things, but we actualingly to people like tom around the world. we go to asia. we go to europe. we look for economic trends. we look for color trends as well. we look at all kinds of design types. >> who drives this? who drives this discussion? who drives -- somebody in my house's closet, oh, this is all old, i need a new color. who drives this debate? >> color is planned like anything else. i think that what pantone does is, what we count on as suppliers to retail and product manufacturers, is it provides a common language. the drive is coming from, you know, everything is a trickle down, so sometimes you'll see it on the runway. you'll see it on models.

>> do you see them come out with something in paris, that color gets picked up and away you go? are you wearing -- are you wearing marsala? >> i don't know. >> that is right on, marsala. >> all right. >> the color is very specific. it's a reddish brown, but there are variations. we're looking at economic trends. we're looking at political trends. and then we're filtering it through our design audience and looking at the trends that we actually see on the shelf. >> excuse me, this is known as putin maroon. >> perhaps. an example of how important color, is there's a big dispute, an in-battle between the big-name editors at yahoo! and the yahoo! top brass because bobbi brown wants the company to get rid of their overreliance on purple, saying it's old. they need to be a little bit cooler and more modern. this is one way that color is important that customers don't realize. >> we have a man sitting at the desk with a yahoo! purple tie. >> i'm sorry, peter henry, my apologize. >> he's actually wearing

violet. >> violet is actually 2014's color of the year, radiant orchid, so n.y.u. is very hip. >> but seriously, if i look at facebook blue, is that a pantone blue? >> it probably is a pantone blue. so pantone has the language of color for tens of thousands of colors, whether it's for textiles. >> like yellow or i.b.m. blue? >> most are specified in a pantone color. >> even that's changing. brands evolve. the evolution of how, of what a brand means, you know, you look apt the way consumers think now. -- you look at the way consumers think now, especially millennials. they're not even loyal to branleds a brand is worth what they did today or maybe what they do or are planning on doing tomorrow. it's not about what -- >> it's all wrapped up with the experience either way. tom, thank you so much, at lifetime brands. ron from pantone, the senior vice president and general manager. dean henry, thank you so much for joining us this morning.

>> thank you. >> the dean of the n.y.u. stern school of business. >> dow 10,000. yen 102, 120, rather. we're almost there with a 119. stay with us. more of "bloomberg surveillance." good morning. ♪

>> speaker boehner needs nancy

pelosi, his conservative republicans adjust and adapt to lame-duck politics. draghi faces disquiet from germany. he holds a critical press conference at 8:30 this morning. foam, please, and four pumps, starbucks hates my coffee order. good morning, everyone. this is "bloomberg surveillance." we're live from our world headquarters in new york. it is thursday, december 4. i'm tom keene. joining me, scarlet mojito latte grande, what do you call them? >> i'm getting a small hot chocolate, that's t. i don't go for the fancy stuff. >> i get a black. what do you get? >> gin and tonic. >> a gin and tonic at starbucks. right now, busy day. >> this breaking in the last couple of hours -- russia's president taking aim at the u.s. and european union. >> real shock. >> putin says that the pair would have imposed economic sanctions on russia anyway no

matter what happened in ukraine. he noted russia has given ukraine billions in economic aid. >> it is well known about russia's support not only of ukraine, but other republicans of the former soviet union. and it facilitated the process of their independence in the early 1990's. nothing has changed in our position since then. >> meanwhile, putin called on russians to end their depend ebs on ports, and also added business needs more freedom from bureaucracy. another controversial grand jury decision involving a black man killed in a confrontation with a white police officer. here in new york city, protests erupted after a grand jury decided not to indict the police officer for the death of eric garner. garner was killed with a choke hold while he was being arrested for allegedly selling untaxed cigarettes. garner's widow spoke last night. >> i'm determined to get justice for my husband, because he shouldn't have been killed in that way. he shouldn't have been killed in any way.

he should be here celebrating christmas and thanksgiving and everything else with his children and his grandchildren. >> meanwhile, the federal government will conduct a civil rights investigation into garner's death, and the officer may yet still be disciplined by the new york police department. >> another day, another record for u.s. stocks. the dow jones industrial rose 33 points, closing at 17,913. that is the 33rd time this year the dow has set a new high. the s&p 500 set its 48th record of the year t. is now at 2,074. meanwhile, we're waiting to hear from the e.c.b. president, mario draghi. he pledged to raisin nation as fast as possible, but some of his own governing council are urging him to to go slow. we'll hear from him at 8:30 eastern. in the u.s., house speaker john boehner has come up with a strategy to avoid a government shutdown. baner is going begging for democratic votes for legislation that would keep the government in operation after next week. want all of boehner's

republicans will go along. to keep them happy, boehner will hold a vote to reject the president's immigration proposals as early as today. the real fight over immigration has been scheduled for january. meanwhile, on wednesday, 17 states filed a lawsuit against the president. they say his executive order violates the constitution. tom? >> very good. in basketball, in pro basketball, the philadelphia 76ers no longer have a chance to be world's biggest loser. after starting with 17 straight losses, the sixers beat minnesota last night nicely, 85-77. if they lost, the sixers would have tied the league record for the worst start ever, ever, ever. the lovely nets went 0-18 five years ago. those are our top headlines this morning. let the news continue here on the bank of england. >> bank of england, no change, keeps interest rates unchanged at .5%. no change to its asset purchase plan either. but in another headline separately, saudi arabia is

cutting all january oil prices to the united states and asia. this is in an effort to maintain its battle for market share. it wants to maintain its market share. there was some speculation that it would deepen the discounts, and that's exactly what happened here. >> yeah, brent crude, 69.95, so there's a little bit of movement on this. >> a little bit of movement. >> saudi arabia, they can go low. >> this was to happen at 7:05 this morning, a flashback to the middle 1960's, and even back to the 1950's. this is a rocket test, and as you can see, and for those of you on radio, the rocket is joy norms. this hearkens back to the apollo era. this is a no-go. nasa has postponed the launch because this is hilarious, there's a boat in the water down range from cape canaveral. walter con cite never had to put up with this. all boats were cleared down

range much there is a boat down range. it's probably some fisherman. >> that's the problem. boats now, they don't use radios. nobody's monitoring channels. >> you got it, thank you, thank you. yacht guy has the wisdom here, and -- >> yacht guy? >> you're probably right. >> that is actually the problem. they use cell phones now. >> well, there we are. well, how about this? the boat left the dock, whether it was early 2009 or in the controlled panic of october of last year, and the s.s. bull market left and you were not on it. i wasn't. i'm in the leveraged double cash fund. in this hour, we touch on what it takes to be a reluctant bull. we've got two wonderful guests. william nichols looks across he trading floor at cantor fitzgerald. scott wren is from wells fargo advisors. i was saying this morning, you, mr. wren, you actually go out and people to people scared stiff. what is the distinction of being scared stiff this

december versus december of 2008? >> tom, it's kind of funny because it's changed. people are actually starting to worry about missing a little bit of the market. 2008, probably the next couple of years after that, i would go out and people would just say i don't want to lose money. right now there's a little bit of an attitude change going on where they're saying -- there's a little bit, not a lot -- where they're saying, boy, i missed a lot here, and i'm starting to fear i'm going to miss some more. >> bill nichols, what do you see? what is the back and forth? have you rolled up things since january 15? >> i think it depends what you're in. if you're in energy, you're feeling the pain in the long side. but so many other groups are outperforming. the market is very different depending what group you're in. >> we're juggling fixed income and equities and commodities, and when you talk to individual investors, when you go out around the country, are they just focused on the dow? is that what makes them think

about getting in and out of the market? >> they think about the dow. of course, all the analysis we're doing is on the s&p 500, so you have to talk to people about that, of course, dow gets the headline, but the s&p is a much better representation. but that's what they're focused on. our clients right now have held a lot of long-duration bonds, so they felt pretty good, really. but they've been light on stocks. we have wanted them for quite a while to lean towards stocks and a little bit away from bonds. that's a transition, and they've had -- we've had difficulty really getting most of our clients to do that. >> well, following on what brendan was saying, you actually go out and talk to people as opposed to a lot of the folks on wall street, where it's much more professional investors. what are the people of america saying when it comes to this market? because they haven't really participated, and they are looking at the prices and thinking there's still a huge wall of worry. >> a lot of deniers. they have missed much of this. our clients as a whole, they have too much cash, and so they

have trickled cash in lately, and i'd say over the last nine months, but they still, really, they hold way too much cash. they're fearful of the market, but at the same time, they're afraid they're going to outlive their money. they're in a real jam, and most of our clients, our assets are concentrated in people 60 years or older. they've been through two pretty nasty bear markets in the last 15 years, and they think about that constantly. >> i mean, i look at this, and i look at the back and forth, as you say, people are finally getting optimistic. do you see froth in the market? i mean, this has become a big thing. is there a frenzy in e.t.f.'s right now in the internet space, in the things that are bubbling up? i don't see t. >> i don't see it as frothy. however, when you have these big moves, up 30%, another 10%, 15% the next year, you have to be a little cautious. we saw that in october, right? you had a 10% pullback, right? the question is, are you disciplined enough to maybe go overweight at that moment? you had about half a day to buy, you know, on the lows, and

if you missed, it the market is up 5%, bounces quickly, and now we've rallied 12%, making new highs. if you're trying to sort of buy the dips, you have to be quick to do it, and you have to be a little cautious. so, we'll see. it's a little bit overbought, i would say, but not frothy. >> i wonder about the closure of hedge funds. they've been shutting down at the fastest pace since 2009. how does that affect flows? is this creating a selling environment? >> a little bit. you may see it on the margin. i wonder how many people got the energy trade wrong, and then alsoing when she you're looking at markets up 30% in the s&p, another 10%, 15%, if you're in an index fund, it's hard to justify, so you have to really outperform, and it makes it difficult. the market won't always be that way. right now perhaps there's a signal it mate change. >> bill nichols, we're thrilled to have you here. you enjoyed 74 games with the fort wayne comets after working hockey with a small school at yale university. i got a huge response yesterday to my comments on jean

beliveau. would you please explain to america what jean beliveau meant to canada. >> i mean, jean beliveau was the epitome of class. he was a great player, great winner. i think he's got his name on the stanley cup 17 times, which is kind of amazing when you think about it, and just represents everything that's good. he was quite a gentleman, as good a hockey player as he was, even better gentleman. >> were you in the movie "slap shot?" >> no, but almost. >> big nichols with us, for years at yale university, a modest institution there. they did better than good. >> a couple of years ago, in the ncaa. >> bill nichols with you, "surveillance" hockey report with us. >> we'll be right back on "bloomberg surveillance." ♪

>> good morning, everyone, "bloomberg surveillance," i'm tom keene. dow futures up 18. the yen, 119.94 right now, very near the 120 level. here's scarlet. >> oil's decline has halted for now. after falling to $63 a barrel, they've stabilized, a little bit lower this morning, $67.24. that means shares of energy companies have stopped plunging as well. investors are picking up some of the most beaten up names. bill nichols of cantor fitzgerald, is this a dead cat bounce, or is there actually an opportunity to get in now, to buy ahead of the recovery? >> i would say it depends. you look at the price of crude,

and you've had a major pullback, but it doesn't mean we can't pull back more. you're below $70. what if you're below $50 or $30? the energy space would be very different with those prices for the commodities. but i think short term, you're oversold, you're seeing 4%, 5% rally off the lows. you're seeing some m&a, so to the extent that they're attractive for others, that would be putting in a floor. so i think short term, we're probably, you know, at pretty good levels, but it depends on where the commodity goes. >> scott, i'm looking at your year end or economic outlook for wells fargo. you've got crude between $88 and $92 a barrel next year. vladimir pickup at this says thank you, i'm giving you my very skeptical eyebrow. how do we get there? >> what i think you need, of course, you need better global economic activity, and i think we're going see some better g.d.p. out of the u.s. is it going to be vastly better? no, it will probably will be 2.8%. i think you're going to see some stabilization, some better performance globally, and

that's going to -- that's going to help. >> enough to beat the supply war? >> well, you know, that's a pretty good question, brendan, but it looks to our oil analysts like it is, and i will tell you, from an equity strategic perspective, some of the groups, the industry groups within energy, they're starting to look better in our work, and this is maybe a catch the falling knife kind of thing, but equipment and services, drillers, he is plorgs and production, those are very sensitive to the price of oil, and that's one reason why they look a little more attractive, but those are also the kind of groups that look best. they start to look good early before the rest of energy, so that could be a hint that we might be at the bottom. >> perhaps before the turn. they're losers, and then there are bigger losers within the energy complex. bill, to what extent are people exposed to energy through e.t.f.'s versus individual names? >> i think e.t.f.'s are here to stay. i don't think they're perhaps overweight or, you know, leveraged, so i think it's a

proportional exposure. i don't think it's more than other groups. >> the international economics of oil, another topic as well with putin speaking this morning. coming up on bloomberg 10:00 on -- roubini at a.m. this morning on "market makers," lot to talk about with professor roubini, not only that, but the e.c.b. decision before nouriel roubini, we will go to jonathan farrow in london. ♪

>> good morning, everyone. cape canaveral, this is exciting. this is the first launch of something new for america, hearkening back to the 1960's. this is orien, now twice delayed, a boat down earlier, and now a wind violation with a window to 9:44 this morning. on top, looking oh so familiar, is a capsule for four ath naughts. it is unmanned today, as they begin the fragile testing looking out beyond 2020.

the goal here, obviously to go to mars and into lunar orbit and astroid research as well. but it's a throwback, isn't it? >> it is. i want to get back here to earth. >> shall we come back to either? let's go to our top headlines as we await for orion. >> god bless you, scarlet fu. tough years ahead for europe. the j.p. morgan chase c.e.o. says they face a drag as policy makers struggle to enact reforms, while china will keep meeting short-term growth dithes. die moan was speaking yesterday in washington. he predicted yours of sub optimal growth in the region. sony pictures found the source of the sign air tack where several unreleased movies were stolen, and it looks like north korea is to blame, according to a person familiar with the matter. the studio is deliberating whether to announce the findings publicly. the probe has linked the hackers to a north korean group known as dark soul, which is said to have made similar attacks against south korean

banks and television studios. and finally tiger woods returning to tournament golf this week after a three-month layoff. his competitors want him to recapture his winning form. the reason is pretty simple. he makes everyone's pockets deeper. woods played eight events last season, failed to produce a top 10 finishes. last year's tour championship event drew two million viewers, down 28% from 2012. >> oh, there's tiger woods, exclusive on tiger woods, this week he followed one joseph weissenthal of bloomberg. >> joseph played golf? >> no, he followed him on twitter. he's following the stalwart on twitter. >> tiger woods is following joseph on twitter? >> yes, he is. >> that's fascinating. >> i think it's fascinating. >> we've got to get him. >> incredible. he's walking different. the stalwart is walking different. he's got his cowboy boots on, and he's sort of walking like this, but now he's walking different.

my morning listen comes from dell founder and c.e.o. michael dell. he spoke in an exclusive interview on what it means for his business and technology at large. >> look, we've got silicon costs that are coming down dramatically. that is creating, you know, not a billion devices, but a trillion devices. and that's enabling all kinds of new business model disruption beyond technology destruction. you think about air bnb, these aren't really technology innovations as much as they are business model disruptions driven by the availability of technology. >> i heard the words device mention twice, and you can argue that michael didn't didn't do enough of either of those, which is why the company was taken private. >> exactly. it's one of the classic examples of a tech c.e.o. getting left behind, saying all the right things, but failing to explain how they actually make a difference for his company. you have the same thing for microsoft that we're going

cloud and device, but what does that actually mean? >> does he ever need to say that now? full disclosure, i saw mr. dell last night on the council on foreign relations -- but seriously, you make a very good point. does he need to make that disclosure now as a private company? >> he needs to explain what his company is going to do to be a part of this. silicon gets cheaper, and there are new business models. there's no longer a tech business model, but what does it mean for zphell >> well, scott wren, is uber, air bnb, are they service companies that just leverage tech? >> i think they are. there are a number of companies like that, they get lumped into technology, but really, they are services company. company. >> is amazon a tech company? >> i think it's a services company as well. i mean, they're trying to use technology -- i mean, obviously

they have to improve the way they deliver things, but i look at that as a services company. sometimes i look at apple as a toy company. >> sprenssive toy. >> that's the quote of the day. what about old, ugly tech? you've been out front saying a value there, but is it a value trap? >> well, i tell you, i think companies, wells fargo included, people hold off on tech spending. businesses have held off on tech spending for quite a while. we're seeing a little bit more tech spending, business capital spending going toward tech. i think we're going to see more of that. there's a replacement cycle. all these companies are behind. they need to spend money. >> they do. bill nichols, you need more bloombergs. >> absolutely. >> did you just call us a boring old tech company? >> we're on the edge of innovation. >> yeah, media, media. >> media, yeah. bill, when you look at media companies or services company,

are people anticipating an uber i.p.o., and are they thinking of it in the same way as facebook? >> it will be smaller, but knowing they're always looking for the next company to come public and the next innovation. it's really up to management to when they pull the trigger. facebook did it very late. they became very mature. you're starting to see a little more regular cycle a little bit. >> this is really important. scott wren, you and i lived this where there was underinvestment in technology, and it killed them. you lived this. >> absolutely. that's without a doubt. >> and it can kill you. >> we were way behind the curve. >> and it will kill you if you don't do it right, absolutely. >> when you look at services like evernote, you don't need to pay for it. they're much cheaper than they used to be, these tech services. >> scarlet? >> we will continue to explore this, because it doesn't go away. if uber does go public, although some argue it doesn't need to, it gets plenty of

funding. >> what is the rocket doing? >> it's hanging out. tune in to the interview with michael dell, "market makers" today at 11:00 a.m. eastern time. we'll be right back. >> bloomberg "surveillance this

is." -- this is bloomberg "surveillance." hooton says they would have imposed economic sanctions on russia the matter what happened in ukraine. he says their goal is to hurt the russian economy and he called on their goal to end dependence on imports. toyota is widening a recall. the automaker including some of the same models in japan and china. recall 100,000 autos between the two countries and it becomes the number three carmaker adding to the recalls. of grandt installment theft auto removed from target

stores australia. ofplaining about scenes violence against women. it was the second highest selling the of human the week ending november 22. those are your top headlines. now to scott ran the senior equity strategist. inull market no one believes and the trenches of explaining to america that they need to participate. viscerally lit to the blood in the twitter since 2008. you said things have gotten better and there is beginning to be a shift will we ever get to a point where taxicab drivers give you stock tips? >> i don't think we are going to anytime soon. -- theythat clients don't play -- pay attention to the market quite like they used to. it outstanding at the line in home depot hearing a couple guys

talking in front of you -- >> why is that? >> think after the tech pull back in this most recent one that blew a lot of people out, even if they were down on paper they are still very skeptical. >> what is fully invested? if you're talking as you do in you go worldwide and you say by 60 years old i have to be in the market what is that mean? >> 50%, 90%? be leaning toward stocks, you need to own some bonds for protection. but to me when you have an account and an amount of money that you are dedicated to the market, if you're sitting on 20% cash that is way too much. 5% cd yields aren't coming back anytime soon. we are all living longer and we

need to have money in the stock market because we want to participate in the growth of the global economy. >> i do when you in any of way for the long-term optimism but we are talking about a single digit world that will be measured -- baloney. the last four years have been double-digit nirvana. everybody got that wrong. we have been optimistic and certainly wanted to buy every pullback but if you look out the 6-10next years total return. over those two years that is what you'll get. maybe that extends a little bit modest because this growth and modest inflation environment that we are in is not going to change. >> how does apple infect the market? how does it fold into our belief in a greater stock market? >> that is a stock that everybody watches. everybody uses their products.

when apple is doing well, people have a perception that the market is doing well but of course it has an outsized effect on these tech indices. in a way i mentioned earlier apple is like a big toy company kind of like a modern-day mattel. >> 10 seconds does janet yellen care about the stock market? >> i think she definitely cares what the stock market they want prices higher and houses up higher and that is definitely part of their thought process? >> how much up next year? >> i think the market will be at 2200 or maybe a touch above for the s&p. >> i look at the dow because that is my viewers and listeners look at. as a go to scarlet fu professional data check. >> no doubt in this data check your looking at s&p 500, futures are up modestly at two points. we do have economic data to tell you about.

job ponce kaman down 21% for the month of november. that's -- challenger job punts -- hunts down 21% for the month of november. >> this is bloomberg "surveillance," i'm scarlet flu -- scarlet fu with tom keene. starbucks is rolling out an order ahead feature on its app. julie hyman caught up with the chief digital officer. this program is just being rolled out in portland, how much will it help wait times? i see people waiting and waiting for two minutes five minutes maybe even seven minutes. >> we put an informal survey and the office and the wait times range two to four minutes. starbucks is hoping that will change. when you pass a crowded starbucks and say, i don't want to go in there, there are too many people and the light is too

long that might now change because you can go straight and pick up your drink. to the chief digital officer and he talked about where exactly the wait time is. he says the holdup is usually at the point-of-sale. >> the page point is behind the bar, the line at the pos. if we can take the page point out and put it in the hands of our customers we can get more capacity from the same stores. those stores can do more volume and have a better experience for you as a customer. >> starbucks is hoping it will be good for them and the customer and their rolling it out here in portland to try and solve any issues as they arrive before they roll it out nationwide. you're not here in the studio because you just missed the most extraordinary dance of what it looks like when tom keene spills his coffee on the keyboard.

too much coffee for you. it was a genuine spill. latte, fivepraline dollars. shocking isnd more hearing tom keene's hs not praline latte. -- is hearing tom keene say chestnut praline latte. >> that's part of the problem you have complicated orders which names that are difficult to remember with people ordering more food given that starbucks has expanded its menu. >> starbucks is hoping to simplified the process by introducing the feature on this app. it is an existing app and a lot of the loyalty members use it there. 60% of all transactions already occur through the mobile app. people pay with it so now we open your app tomorrow you will have a new menu function. that will flip to the order

function as the new functionality is rolled out. you can do all of that customization right on the app, you can choose all those different things. and that footage you showing us where you pick it up so the label is printed out when you make your order and as you look at the app it tells you how long it will take them and you can view different stores around the area, if one has shorter or longer wait times you can choose that one. >> when you show up at the hockey rink at 6:00 in the morning, what coffee are you carrying and how long did it take you to get it? >> sometimes starbucks is an open and you make your own, -- >> you want to go dunkies, rig ht? >> at bloomberg radio we would never have a chestnut praline whatever, normally i only drink black coffee. >> you are getting awfully fancy for a man wearing a pink shirt. >> you were telling us earlier

that a starbucks order is a rite of passage for young guys on the trading floor. >> if you can get a starbucks order right the how complicated is the size of the drink at all the shots if you get it right, that means you can move up the process. >> this is the same thing mcdonald's is dealing with. it used to be simple. >> mcdonald's and starbucks are totally different because small , mediumald's has small or large and starbucks is tall, grande day -- grande. >> venti, is a good, yes. >> thank you for testing out that app for us. tom, did you finish your coffee yet? know, $5.17, it has a shot of drambuie in it. back to market moving news, mario draghi's dilemma.

what will the ecb chief decide in his latest policy decision. pledged to boost inflation as much can, this is bloomberg surveillance. ♪ >> cape canaveral florida this

is a ryan, this is -- this is orion. morning inned this its first test flight delayed twice the window up to 944 this morning. little gusts of wind that pulled back the certitude of the launch. we launched this morning at 6:00 a.m., with me is scarlet flu -- scarlet fu. grandther controversial jury decision involving a black man killed in a confrontation with a white police officer. protests arrested following the decision not to indict the police officer who put a fatal chokehold on eric gardner. meanwhile the federal government will conduct a civil rights investigation into his death. japan is investing $250 million into the taxi service. controls -- controlled

by the sun will become the largest investor in the taxi. it raised up $340 million in last three months. now to a gathering in austin, texas where participants combine a somewhat unusual pair of passions. beer drinking and running. gallagher chugged down four beers while running a mile and five minute. to capture the first beer-mile world championship. they chug a 12 ounce beer at the start and stop to drink another after each quarter mile for a total of four. gallagher earned $2500 for his efforts. from tulane west to abilene and down to eber. >> i recently dissipated in a mile-long relay but i was an anchorman because i went to a real college and could drink beer quickly. all the guys from the academy stood around and chanted, real

college, real college as i drink my dear. did you ask which beverage you consumed? schaeffer's? >> it was probably natty bo. >> quality beverage. >> let's head to london where we check in with john sparrow. jonathan have you cap partaken in any of this? >> i don't know what he's talking about. i haven't a clue. >> set us up or for mario draghi at 7:45. >> i think he is created a rut for his own back because he said they need to stoke inflation and they need to stoke inflation expectations fast. a lot of people will be asking the question how are you going to do that? it's the same old first thursday of the month and we are asked going when will you pull the trigger? saying this week it will be no different. at 1/23/13, has

euro made its move? >> for that to happen it could clearly move lower. if he gives a very strong hint that sovereign qe is about to come. we have to look for something else, it's an inflation forecast for the ecb if they have to get we than what he saying is have a mandate of 2% and we cannot hit it in 2016? it's like you're batting your job. >> the numbers just came out, what you give it to us? lows, yet the main refinancing rate at 0.05% in the pocket weight record low stays unchanged at -0.2%. policy rightrate now but clearly it is all about the press conference and is tom knows, it always is. >> what can mario draghi say to

appease investors while also pushing leadership? the leadership question is the big one because the question we face every day and europe is not just one on monetary policy but one on structural adjustment. solutions are quite often borne out of crises. ecb saying we're here and we are the backstop. what we have not seen is a solution to the political and social crisis. the political crisis is around the corner. we are seeing them gain traction off the back of a week european economy. >> we are looking at the euro not changing that much. jonathan ferro thank you for giving us the latest. >> great to hear that perspective before we go to the press conference, phil nichols you do a lot on etf's? people are kind of looking to get exposure across different

geographies in a number of different ways there are a lot of multinational u.s. companies with foreign exposure as well. 1.05 to 1.19yen go does your world change? >> a little bit on the margins of what people care about but people are still trying to buy stock at good values. it is a matter of how the import-export game goes. the real extreme euro raise will change decisions from one point 28 to 1.24, not a big change. >> look at the italian 10 year. the one question we keep coming back to and become back to every day, when will the germans change their mind? >> i'm asking when. >> i've given up guessing. agree, there is the intransigence -- >> but city a data check because

it doesn't seem like there is that much movement following the ecb decision not to do anything with the rates. a modest gain here of 1.6 points and the 10 year yield will be up a little bit to 2.9%. euro-dollar 1.2 312. greeley here on this thursday as well have the ecb with their news. ferret was i guess it is breaking news. >> it just happened. european central bank left all three interest rates unchanged. -.2%. the focus is 8:38 when mario draghi speaks. another heat on the three most important people in monetary policy. the caucus of nine.

there's only a german on the ecb board. she is an economist and she has the german line. but as i can --jens weidman is no. neoclassical -- >> i don't take it that way it o is.lled puerto -- ord anticipate i you save anything. gains. is a fourm -- gains letter word. germany things one way and the rest of the continent needs of the different. our fedave to look it policy that you have, do you play the parlor game of when yellen will act?

there is a risk, the buddhist bank will only be dragged -- bundesbank will only be dragged kicking and screaming. our fed remains easier for longer while the ecb remains tighter for longer so the euro has gone from 1.40 to 1.23. they have really done nothing to actually do this but janet yellen -- i don't think we will see anything until the summer at the earliest -- >> they do not want to stay in the market. none of this is in your economic textbooks at yell. -- yale. >> the world is a different place, you did not have the euro. up as theymaking it go along and i think everyone a knowledge is that. we waiting for the exit strategy. >> i think we should retire the word unconventional.

it has been a long time that we been talking about this stuff and it is no longer unconventional. >> what will you listen for from president draghi? >> i will wait for him to move beyond structural reform. that's a way of saying we won't do anything because it is not happening. i wanted to use the word fiscal and say the word germany in the same sentence. >> it's not going to happen. those two are butting heads in the back room and it will just keep going. the fed is looking at policy there is a structure that they sense, with the ecb are always looking over their shoulders from frankfurt to berlin, it is always getting the nod from merkel about what is acceptable policy. >> that's not going to change anytime soon. >> people pay attention to what mario draghi is saying, what happens on the trading floor? >> it is important but the big

picture in the marketplace is what is going on vis-a-vis putin and the ruble. those are the bigger moving items and that's what's really driving people's short-term investment decisions. you see a big move back in the energy markets. >> the headline here is that wall street has not rolled up the holidays. >> i think for another couple of weeks you get into december 15 or 18th and people mail it in. but for the last two weeks they are fully engaged. >> let's shift a little it here and rule away from the markets. we want to get to our twitter question of the day. in light of what happened yesterday with the grand jury decision not to and die the police officer who ended up killing eric garner, we asked will police body cameras make a difference? here are the answers. >> know, there were cameras on

eric garner as he guided it made no difference. a as you pointed out that was camera from a bystander not a police camera. >> it was an important thing that peter henry said that technology cannot fix when attitudes are not fixed. >> maybe that's an issue of time. the second answer, people behave differently when they know they are being watched and recorded. police and public will both behave better. though if you look at youtube, i don't have that much faith. coplly, it won't change behavior but it may help the grand jury get it right. it was the anger that they did not get right that led to the protesters -- >> even though there was video of that event. to new yorkank you city and law enforcement and all those protesting in what was apparently a night of peace. yardu're here with us into but you are based in st. louis?

tell us what it has been like. >> it has been a strange three months and i think the media has painted ferguson in a pretty negative light. i have some friends who live in ferguson and there certainly concerned -- what has happened there is not representative of ferguson. that's my perception and i don't live very far at all. obviously it is a tragedy anytime an 18-year-old loses his life. >> what is the single message globally you would have about their perception of how they fit into the st. louis community? >> i think ferguson is an important part of the community and there is a lot of diversification in ferguson and i really don't want the st. louis region painted with the brush that is so negative. st. louis is a good place to raise a family and a good place to live, i am biased, i grew up there but i think the media

perception has made it a negative place to be. >> scott with wells fargo thank you so much. , thank youwith nyu for the comments. this is the throw back to the 60's but this is important, brendan greeley us is four astronauts at the top of a big rocket because they're supposed to go to mars or lunar orbit -- this is the first test launch there are no astronauts. >> what you're talking about was before and now we have orion with no persons inside. >> they get outside the earl -- will do a couple orbits and then come down after four hours and what is fascinating here besides the size, 11 parachutes or eight parachutes. this test as we remember as kids when they go up -- if the launch of bortz -- what are they do --

aborts, what do they do with the capsule? >> we thought that there would be flying cars and airplanes that go into the sky come back down and none of those things have happened we still looking at rocket technology. >> maybe it will get self driving cars. sirhe backdrop of this is richard's real tragedy with his drive it launch a number of months ago and with the actual private launch over by maryland. >> let's get to the agenda as we await the launch. what is your item? >> i had to rip it up, $5.17 -- no i'm kidding. russia. the headline out of mr. putin were shocking for anybody in the western world particularly with allusions to a germany of a different time and place. we need to read these questions -- we need to understand them and put in perspective mr. putin. who is this vladimir putin?

>> lord knows it is the world's favorite parlor game. if i knew i would be a richer man. >> he does pose with baby jag wires. -- jaguars. >> this sets us up for the big jobs report tomorrow. i'm looking at michael mckee in the same way that will wages continue to go up? a prince andrueger economics professor will be joining us tomorrow. brendan what about you? jobs todaycare about because they're announcing the new cast amber for james bond, christoph waltz we had it and it will be a new specter movie and it will be awesome. christoph waltz, what more can you ask? >> inglorious pastors right? -- inglorious basterds, right?

>> he won an oscar for that. >> we are about james bond but this is your generation. >> i will have it shaken please. >> exactly.

>> good morning. we are live from bloomberg world headquarters. i'm matt miller in for betty liu this morning. 90 minutes from the opening

bell. we have a jampacked show for you today. speaks.t vladimir putin -- yergin will join me. he is the author of "the quest." our exclusive interview with michael dell ongoing private. private.ng no change from the european central bank. we expected no change. the ecb left all three main interest rates unchanged. they have been trying to figure out how to get the euro area economy going again. it has not done much about it today.