arabia, russia, and north dakota. meanwhile, venezuela nears financial collapse. in raising money, well, the old-fashioned way, sir martin is asked to pass the salt and pepper. good morning, everyone. this is "bloomberg surveillance." we're live from new york t. is a busy thursday, december 11. i'm tom keene. joining me, brendan greeley, and the minimally talented, spoiled brat, scarlet fu. she has our top headlines today. are you starting with angelina jolie? >> we will get that. >> take the high road. >> absolutely, because i a married, married, six kids. all right, in hong kong, a group of pro-democracy protesters is making their last stand right now. police removed the barricades and tents around government offices. they started taking away protesters who refused to leave as well. student leaders say they will remain until they are arrested. the protests began 11 weeks ago. hong kong's government has rejected the key demand that the city holds re-elections for

its leader. once again, oil holding near a 5 1/2-year low. they're recovering today after yesterday's sliding. they're still trading for less than $62 a barrel. meantime, the drop in oil prices killing bonds. bonds issued by the state-run industry have now fallen to 55 cents on the dollar. the yield is up to almost 50%, brendan. >> in washington, the house is set to pass a spending bill today that would avert a government shutdown. >> yes. >> lawmakers also plan to approve a two-day stop gap bill that would give them until saturday to vote on the bill. here's house speaker, john boehner. >> this a marv just job. i wish it was done last week, but it wasn't, and so here we are. i'm proud of the work that they've done, look forward to it passing with bipartisan majority in the house and in the coming days. >> john boehner tanned, rested and ready. many democrats are not happy

with one provision of the bill that would roll back rules aimed at protecting taxpayers against bank losses caused by derivative trades. democrats call that a giveaway to wall street banks. still the spending bill is expected to pass in both houses. it is an i.p.o. that's seen as a barometer for the alternative lending industry. shares of lending clubs begin trading today. last knit's i.p.o. raised $8 0 million with shares priced above the range. they arrange loans over the internet to individuals and small businesses. the money comes from investors who can commit as little as $25. tom? >> in older news yesterday, this is stunning t. is a loss for a federal prosecutor who's become the scourge of wall street with his crackdown on insider trading. a federal appeals court absolutely crushed, the proper word is reversed. they crushed two of his convictions. the court ruled it isn't always i will they'll trade on insider information, and the ruling

raises the bar on the proof of how far the hand is in the cookie jar. he says he may appeal, absolutely stunning, brendan. you followed this very closely for bloomberg business week. i just did not expect this. >> it requires the suspension of disbelief, the way that the ourt has interpreted this. actually, we filed a story, did yeoman's work at 12:30 this morning, she talked to a man who used to be an f.t.c. lawyer, and he says it makes it harder to convict those down stream who got it second or third hand. now the government is going to also convict the insider who passed the tip, otherwise don't bring a case. >> brilliantly done, essential the hand in the cookie jar. you got to get the hand that is in the cookie jar. we'll continue this discussion. we look at equities, bonds,

urrencies. west texas intermediate, the next screen, the v.i.x. from 12 to 16 to 18.53. i put euro-yen up, because euro-yen is doing nothing. this is really important to understand that the oil complex with a vengeance is moving, ruble with a russian bank raising rates to defend the ruble against the higher inflation and in a collapsing real economy blows through 55. brendan, eight weeks ago, somebody told we're going to 55, and i said not a chance. here's the wow right now. shannon o'neill joined from us last week. this is venezuela. ears 2008. this is the ugliness of this lehman crash, and they've absolutely blown through. this is one of the few charts that's blown through where we

were six years ago. >> and this right here, right around here is when venezuela actually threatened to sue an analyst who was worried of default, and that's where they threatened to sue. here's where we are a month later. >> yeah, and you mentioned the yields on oil paper. >> 50%. >> and the full faith and credit venezuela, and that's a pun, is gone from 12 to 24. >>. >> well, rip up the script here. the quiet and joy of the holiday season has given way to a global staredown at your cell phone. what is the price of oil? look at the negative rates in europe and equities rolling over. the founder of w.p.b. is with us, the largest advertising company. we're thrilled to bring you this morning, well-timed, the senior policy advisor with a passing knowledge of commodities. i'm going to go to you and be rude to sir martin. >> how dare you, no. >> what what do you think?

>> this shows you really need to go back to the original -- you did not know the original basis of the insider information, then it's not culpable. i think it's a big blow, and it ally messes up what is the lot, the manipulation standard and relate it to insider trading. it's a big problem. >> is it so dramatic that merrill lynch, goldman sachs, the f.s.a. and sir martin's england, do they have to rip up all of their instructions on insider trading? >> no, no, but it means that the f.c.c. is going to have to bring more cases and make sure that they're strong, and the case law on this is going set the standard for the future. they're going to have to bring more cases and try to work on this. >> i don't have enough money for insider trade, so i don't know how it works, but help me understand. is this plausible to think you can pass on information with no knowledge whatsoever of how the information or whether it's going to be used. >> well, i mean, it's possible,

i guess, but to some extent, if you think about it, you should be cautious as an investor before this. when you get information, you should have some sort of due diligence to know where the information came from. >> i think that gets to the gray line that may be looked at. >> do people innocently pass on information with no plans whatsoever? i'm going tell you about this company, do what you will. it's hard to say. you need to know the facts and circumstances, the individual circumstances. we saw, for example, the mark cuban thing that went away also. you have to look at these things individually. i hate to comment generally about it. >> what does this do for the man and for the office that he leaves in terms of their ability to be effective? >> it does send a chilling thing. people go, wait a minute, what are we doing? we worked all this time on it, and now we've been pushed back. but there are setbacks in government, and that's ok. you know, they just need to go forward. >> let's go the other side, and a public officer of a publicly traded company, sir martin.

what do you do to make sure there's not insider trading? >> well, we have street rules in terms whf people trade. the close period that we have, you know, we report quarterly, and no officers at the company or people can trade or they have to get permission if they want to trade even throughout the organization in those close periods between the end of the quarter and when we announce so. it knocks out actually about -- at the end of the day, it knocks out about three or four months of the year when you could trade and actual rules it out for senior officers. >> i feel that i should disclose that sir martin told me some things right before the show. >> we had a good gossip. what i'm going to do with them, he's ok. >> have you ever been in a meeting in your illustrious career where people have said, oh, my god, this is not good, weave got to go to our lawyers to get advice on insider trading? >> no, i actually -- no. >> ok, that's good. >> no, you don't --

>> you don't really know what people will be doing elsewhere. >> well, remember the business week one? wasn't there something on long island that was getting "business week" a night early? this was like a case study. it was pretty impressive, nibble queens or long island, it was printing "business week's" cover. i'm guessing it was "business week." do you remember? >> we used to get -- the copies were distributed from the printers before, not for insider trading, but to get knowledge of what was happening on a sunday rather than a monday. >> i use to be a magazine writer. let us think back to a time when magazines had such power that you could inside trade based on something contained. >> well, no, no, they had the power of the friday night, the tory late on a friday night. i remember that one.

now we have technology where you've got mobile tracking and all these things that can actually -- >> inside information. it's a new world, right? it's not about the economy a couple of days in. it's finding out right now something that's going to happen in five seconds,ed trading on it. >> what you're referring to goes against the grain in the sense that you have more information. you have more trails that you can follow, so you would think it would be easier to prosecute. >> we've get a five-hour "bloomberg surveillance" this morning, so we'll continue. let me republican up the script. oil, with the brutal moves in oil, has it created dysfunction within the commodity markets? do you look for margin call issues? >> here we are, low nest five years.

more so in the energy space. >> so radar subpoena right now. >> yeah, and of course energy impacts agriculture and everything else. so yeah, there are big concerns. when you talk about the volatility we're seeing, part tv is because of what you were talking about earlier, we don't know what's going to happen. when you don't know what's going to happen, there's less volume, and where there's less volume, there's more volatility. >> have you seen a reduced billing because of the real economy effects of this crisis we're in? >> well, it's a two-edged sword here. lower oil prices is effectively a boost to the consumer. the rich companies will be less affected. you put them in that category, so it's very difficult to figure out. net-net, at the end of the day, it was "the wall street journal" conference, if i can ention that.

christine lagarde said it's positive for the economy's world. >> come on, she's the queen. >> mediocre queen, not mediocre growth. at the end of the day, there are two conflicting things here. obviously opec countries are coming up pressure. oil price falling, but on the other hand, in terms of the disposable income, actually a positive. net-net for our business -- >> we got to go to commercials. >> thank goodness for that. a long commercial. >> back to the "wall street journal." >> i just to want clarify something. tom keene meant to call christine lagarde the queen of mediocre, not the mediocre queen. >> it's a correction, because that's i'm a minimally talented spoiled brat. >> we are going to cover more, including those emails. we're going to discuss lending club. will it change the world of finance as we know it? ♪

>> good morning, everyone. we welcome all of you to our new york city studio this morning. let me get right to scarlet fu on an i.p.o. >> with the v.i.x. climbing, we've got a high-profile i.p.o. to tell about you. lending club is like a do it yourself bank. they arrange loans to individuals and small businesses over the internet using funds from investors. brendan can put in as little sed -- as little as $25. well, he doesn't have enough money for that. lending club raised $870 million, more than anticipated. what's interesting here is the high-profile backers of this company. john mack, former chairman and c.e.o. of morgan stanley, sits on lending club's board.

his stake is worth about $36 million after the pricing. mary meeker, the former morgan stanley analyst, also a backer of the company. and larry summers, former u.s. treasury secretary, is a director of the company. i've 've seen that -- always wondered about the regulations that prevented this in the past. do you think they are designed to protect consumers, or do you think they're designed to protect people who have more money and would rather be investing? >> they're designed to protect consumers, but markets are morphing all the time. technology changes. tougher government to keep ahead of the stick. most of the time they're reactive and trying to keep one the old-school ways. so yeah, it's a morphing market, and there are morphing technologies used. >> do you worry about consumers lending $25, $1,000 to businesses, to startups? >> yeah, i mean, at times. but overall, it's fine. look, it's a free enterprise system, and there's got to be certain safeguards, absolutely.

>> we can't figure out regulations. >> and that assumes the banks are lending to smaller and medium-sized companies. >> providing an alternative source of finance, particularly when large companies are squeezing supplies and making it more difficult for liquidity. all these things to come. >> but in china, alibaba, the platform is a financing platform as well, because they give supply credit. >> lending club's main products are three and five-year unsecured consumer loans with an average interest rate of 14%. >> it's an experiment. >> let's bring it up, which is a very high-priced consumer credit, which drew a lot of criticism. church of england has actually been an investor in funds that invested in them. >> that's an interesting background. >> absolutely, raised lots of interesting questions. >> coming up in our next hour as we look at a busy day -- we'll get perspective on china.

stephen roach on the fed as well. peter orzag with us in that hour. i don't have a job, this is great. it's a hormone day much stay with us. ♪

>> good morning, everyone. "bloomberg surveillance," your house for tabloid morning reading. we welcome all of you on economics, finance, and our celebrity from scarlet fu's world of gossip. brendan greeley gets started with our morning, and i mean it, it's a must read. brendan, help us out. >> i don't understand how you can expect me to do anything, i'm actually just flipping through "the new york post" right now. we know that sony was hacked,

and we know that some things were revealed. but now people are beginning to read emails, and we're really understanding how sonny works and how hollywood works. here's an email from scott rudin, a producer at sonny. he's talking about angelina jolie's "cleopatra." he said i'm not remotely interested in presiding over an ego bath. and that was about the most presentable thing, the most printable thing that was said about any hollywood star. >> brendan, you led us with this on the cyberthing. this is itment >> this is true in private industry as well. there's this idea that you can pay someone to come in and make you cybersafe, but what you really need to do is change behavior. that was terrible behavior inside sony. you had things on servers they shouldn't have had on servers. they wrote things on email they shouldn't have put in email. this is sony's fault for having terrible people. >> scarlet? >> is it sony's fault or just the way communication has

spawned? >> individuals. >> people used to talk this way person to person, now they're doing it this way. >> company policy. >> you have to remind people that everything you write could end up on bloomberg or the front page of the "wall street journal." >> do you find yourself doing that at work on a daily basis? >> thinking about it, certainly, yes. now, in a business such as entertainment, of course passions run high. >> emails. i can't believe -- i can't believe prince william -- >> the things i've been dying sash no, don't get into that territory. you can't say that. >> another thing that scott rudin wrote, which another principal excerpt of his email, she's a camp event and a celebrity, and that's all. the last thing anybody needs to make a giant bomb with her that any fool could see coming. damning words, especially towards awards season. they're announcing the golden globe -- >> she said that -- >> angelina joel see in prime

position, because she improvement -- she directed a movie. she's getting ready for awards season. >> it makes me sad. if all of our internal emails were revealed, it wouldn't be nearly this juicy or fascinating. of course, angelina jolie doesn't work here. >> this is like -- we're learning the digital age painfully. slow motion. >> but this is -- people used to write letters, and they used to write -- they would write views on people. i mean, nothing new in that sense. the only thing is, as we were saying in relation to insider information, is it's much more immediate. it's much more accessible. it's much more dangerous. >> and it doesn't die. >> unless it has to be forgotten. >> i'm with you. i don't think people are any worse than they ever were. you can control your own papers in a way that you can't control -- >> well, no, no, that wasn't

the case. people die, and papers get revealed. so no, statutes and limitations. >> you don't find out years and years after it's done, and if you're dead, you don't care this much. are people this careless in government? >> they have been in the past. i've got a general rule, and i think it actually makes you better in general, and that is don't create the content. >> amen. >> we all go back to think about the picture of mayor giuliani in drag. maybe he's ok with that, but it's a scary picture. if you don't create the content, you're better. the same with internal emails. just don't say something that you don't want. anything i have to say about scarlet fu is never typed. >> yeah, but if bart -- you've got a block on your emails. if you use the word geithner or bear, it doesn't go out? >> no longer, because sheila behr is there. >> shameless plug. that's a shameless plug.

>> outrageous. outrageous. >> all right, i want to bring in our twitter question here, because it's apropos, and the cover of the "new york post" and "new york daily news," how do you trash talk at work? #sonyhack. you went through emails. >> i can't believe we hash tag here. can we get us hash tagging together? hash tag! >> the other thing, is do you go around the water cooler? do you go into the stairstpwhl do you go outside during the cigarette break? >> or maybe you just don't. >> yeah, everyone is talking. >> just don't >> don't trash talk. ♪ >> russian ruble through 55 with

the central bank of interest rates, oil is fragile, $61.39 per barrel. >> we go to hong kong where pro-democracy protest's the twilight -- demonstrators making their last stand. police have removed barricades and are taking away protesters who refused to leave. student leaders say they will remain until they are arrested. thousands of job cuts could come to ebay. might reduceite its workforce as it prepares to split off its paypal unit.

hasjournal suggests ebay considered cutting 3000 jobs. the cuts would mainly affect the core marketplace division. mcdonald's wants to streamline its menu. chain will fast food cut eight items and five extra value meals, and hopes the move will speed up service no word on which items will be eliminated, earlier this week sales fell 4.6% in november, the biggest drop's 2001, when was a last time you went to mcdonald's? >> keep pulling on that handle mcdonald's and see what it does. >> i don't have a thing against mcdonald's but i have never taken my kids there. >> are you american? >> i'm a communist. >> where do you take your kids? >> nowhere, we keep them in the basement.

toon't know, we taken chipotle, we take them to get pizza and burgers but not mcdonald's. >> more innovation in legislation. on capitol hill they are calling it the cromneybus. it would get rid of the part of dodd-frank that requires banks to trade derivatives without the protection of the fdic. watch this sausage get made. is this what it takes to get a bill passed? >> it is and i'm hopeful it does not pass, -- time is a memory killer in washington and it was not too long ago that these reforms were passed in 2010 to say that the trading that was over-the-counter and and dark dark pools as we know it but dark pools of investment that were unregulated if you traded in those you could not be bailed out, that was a provision put into the law and that is what is being repealed.

>> there can be a back bailout for swaps trading if this goes through. they have been slow rolling this for a long time. we've seen a long drawn out d.c. process to see if this can get killed. >> people have been talking about it since it passed but the bottom line is that it real prince the door for a bank a lot because of your slops interest which was the problem and two dozen eight, it is unconscionable. >> there is fear that if this is rolled back that wall street goes back to being out of these restrictions that people fought to put in place, is that fear justified? the bottom line is these things should not happen at the end of the year in a must pass these of legislation. that happens again and again and here we are -- it has to pass and it is not fair. >> is this an example of why the fsa works? do they do a better than united kingdom? zoo, it is ae word

bit of a zoo but i don't know -- the fsa has its issues and problems and i don't think people in glass houses shouldn't throw stones. we were talking before during the bake about -- during the break about over regulation and becoming totally burdensome but here we have the situation where we may go back to where we were before, let me disagree real quickly, notwithstanding any provision of lot no federal assistance may be provided to any swaps entity. that is being repealed and it is essentially going back on too big to fail, and i'm not sure this 1.1realizes it in trillion dollar spending bill that is 6000 pages. i hope they read it today and figure it out. we talk about the politics of this, elizabeth moran has made this -- elizabeth warren has made this a signature issue,

she said it should not hold the entire government hostage to threaten a government shutdown to roll back important protections to keep the economy safe, she called this a hostagetaking. any chance she will win and not that the bill side? >> they are not whipping it on the house side so they probably need between 40 and 70 democrats on the house side and as of last night they were whipping it. the housed earlier will extend spending for two days, they will leave town which makes it tough on the senate. here senate take this pile of stuff and we are gone. in theow you lost face obama a menstruation, do you think this was always in the short list of things the white house was willing to give up -- lost face in the obama administration, do you think that wassomething always on the short list of things the white house was willing to give up. >> what we see in the markets

was a shirt -- 30 year german bond that went through 1.50% you know as well it always ends up theg back to the banks banks and we're talking about, 99% of their derivatives are traded within the unit covered by fdic protection. we are talking about all of it. >> it just puts us at risk and says -- if you are too risky staff,08 you have a back we have your back. >> we need a banker here to argue with us. i will give you the other side, they will say that it cost other people that get the money more money because they won't have the resources, that is the pass through. withll come back on this

the cftc. advertisingrack dollars and what they say about the future of media, it is the single best chart next on bloomberg surveillance. ♪ >> next week she is so busy we

cannot get her in here, shannon o'neill will join us for a council on foreign relations. oforing the collapse venezuela, it is happening in real time, shannon o'neill next week, look for that on bloomberg "surveillance." best chart.single >> it's not my chart, it is mary's chart. >> it turns out that old media it like rent and television still attract more advertising than they deserved. as part of the annual internet trend report -- >> it's where the industry and clients spend the money. >> your print on the far left and mobile on the far right. >> when you look to this

information you have oh,spending introduction distributing newspapers. not digital, newspapers and magazines but the old type, not the new type and then you have been under invested in digital and mobile, the other interesting thing is that for the first time we've seen a break as i look through between time spent on television -- this is classic television versus investment which is 45%. difference in 7% terms of time spent and where the industry is spending money. that has to change. what you see is a drift to the right hand side. >> what will we see next year? >> internet and mobile is around 24% of the industry and 45% of time spent in the u.s.. it is not true for the whole of the world. in the u.k. this year internet

spending will outperform -- in terms of quantum, classic media. for the first time, internet will be bigger. norway and denmark will follow shortly. the highly developed e-commerce economies are embracing internet and mobile quicker. the big debate in the united states is about free to air television and whether the ratings declines that we are seen -- nielsen's problems is that it is c plus three, you only measure three days after air. mobile,t to talk about we were wondering why is it that there is a huge gap in mobile of all places between consumer's time and advertiser attention -- >> it is only a question of time. >> have we not figured it out yet? >> it just takes time. people making the decisions tend to be from generations -- the

generation that is graduating from american universities today is the first generation that has lived from the internet the dead a pop their head out into the world. >> is facebook wpp's friend or enemy? >> it is a frienemy. it has become increasingly a friend but google is a good example. video driven by smartphone and now 3 -- there are billion out of 75 billion in media portfolios. our biggest media relationship was fox and news corp., most of the big media owners like cbs and nbc and comcast would be around 1.5 billion, google is now at three, driven by mobile search and video. what $650 million,

having got up from $450 million last year. google has gone from $2.5 billion to $3.5 billion, google is the monster. >> scarlet, that is too many numbers. quotable, eminently google is the monster. >> the regulation issues that google has in the eu at the moment is emblematic of that -- their share is 80 or 90 -- >> are those sour grapes or is there legitimate concern? if you're a german newspaper magazine publisher who wrote -- that article i think single-handedly stopped the regulator. your member moody, before he would disappear as director general -- he had a deal agreed and then pulled the deal and now it is being left to the new danish regulator. >> this is like european gossip.

this is insider information. somebody in brussels is a minimally talented spoiled brat. tidbit.uick >> is is our show or your show? >> both. you said keeping up with this industry is like changing engines in a jet plane while under flight am a what is the next thing to look for in the future? >> chinese technology. the people that we criticize that they steal stuff, standby, alibaba is the sixth most valuable company in the world already and it is been up for how long, two months? >> number three photo, this is malala and the entertainer

satayarti, they are receiving their new bell peace prize. -- nobel peace prize. know shot in you the head into thousand 12 because she wanted an education. hers is the most amazing. >> did you hear her acceptance speech? stunning. >> more mature than any of us. >> number two photo, barack obama and michelle obama dissipate in the toys for tots program, that is not a cape, those are two banks of goodies. time barack obama's first participating, he referred to himself as the big elf. >> notably, his daughters are not there. chief -- the elf the numberto pen -- one photo, i cannot believe this is happening. this is a cat cafe. >> for real?

>> it is called the meow parlor. if it is not immediately clear, you go to the cafe and you pay money to hang out with cats. >> you can't bring your own cat? >> know the cats are already there. it is a rent a cat. who wants to rent a cat? cats don't want to hang out with you that is the whole point. >> you go to the cat cafe and have your copy and get your fix. >> i'm so glad you brought up the subject of kitty litter, bloomberg is celebrating its shameless plug, 85th anniversary and lifting the 85 innovations and kitty litter is chief among them because it domesticated cats and brought them inside. thehat glow you saw over east coast was the flash polls going off for the duke and the duchess as they visited new york. they spent a little time with

some of our guests and will look at the future of charity and british royalty. are they cat lovers? ♪ >> good morning everyone,

bloomberg "surveillance." zaghe next hour, peter or with stephen roach. perfect timing as you see the 10 year yield go under 2.15%. we say good morning front and center on bloomberg "surveillance." >> new york regulators have found evidence that the traders may have used our rhythms to manipulate foreign-exchange rates, this is according to a person with knowledge of the situation. the practice suggest there may be tools that go on -- beyond individuals to affect benchmarks. >> yesterday nfl owners unanimously approved standards which removes some disciplinary power from roger goodell. it allows for independent league investigations and takes a tougher stance on domestic abuse. criedayers association

foul and said it should have a bigger role in shaping rules that govern all personnel. lawyer says the late punishment may hinder justice for those victims of the ponzi scheme. yesterday george perez got two point five years behind bars and the court probation office and recommended eight. press is the first of five former associates. >> it was really quite interesting on the justice off, thereh made will be a quiz and the next hour of bloomberg surveillance, queen anne's dies and george the first took over and it is like a soap opera like dallas, there was this secession of george's in the victoria, collating and george the fifth and they were a lot german but the germans were bad to william and harry are german and kate is very english

and the dukes in the duchess set up -- they set up a royal foundation as they drag single-handedly the youth of britain into a new century helping along the way sir martin sorrell is on board the royal foundation and actually serves dinner to the duke and duchess. >> i'm not on board. >> but you did serve -- >> technically. >> i know you don't want to speak about the privacy of the dinner -- >> what dinner are you referring to? this, how do you feel as a kid from the united kingdom that did not grow up with all the advantage to be going through the process he went through? no advantage to youth, i came from what the press described as a middle-class family but it was a wonderful occasion and we were absolutely

delighted that the first event that they attended on their first trip to new york was in relation to the foundation. i want to get away from the wall of flash in the excitement of it all, they certainly did take new york by storm, to me it's like someone from the united kingdom as be incredibly enthusiastic about the royalty, i'm sure there out there, i think that is very unfair actually, if you look at prince charles foundation it does a tremendous amount of good work which i think frankly to be absolutely frank i don't think he gets sufficient credit or, the work that he's done across the country in conservation we're talking about conservation as the which is an area that prince's foundation and harry's foundation and kate's foundation cover as well, they cultivate youth and veterans it's a very important ring and they don't get enough credit. where would the royalty be in

10 years or 20 years, how do you perceive that migrating? >> i think it is well-founded, both with the work that prince charles does and the work that the younger princes do and the duke and duchess do i think it is very well-founded. obviously this is part of building an effort in all of these areas which is how you put it up. >> than there is ukip? ukip has nothing to do with it. >> why work hard as a middle crass british get him a sunday to own a gramercy apartment and to be looked to serve kate middleton? >> the apartment is not cavernous and it is not vast. i would ask you one quick question because david cameron

is in the u.k. looking increasingly the coddled as he tries to figure out what you typically right, what does ferris of you cap understand that david does not get? >> unemployment if you look at it historically been a very high level, the general level to say 56 or 7% usually unemployment is that, and spain is 20 or 25%. these extreme parties if you look at le pen in france and you keep in the u.k. take extreme positions particularly in relationship to a subject such as immigration and in the polling that we do immigration is either the lead issue or the second biggest issue in this is something that people are very word about. therefore he taps into that, he is a rebel and he is an extremely effective speaker and is extremely effective as a debater and just like you see in france and elsewhere and in eastern europe

you see the rise of the parties and this is just -- >> think you so much. us, the ruble through .5, good morning

>> it is spending bill time,

rebels rebel calling it the worst of government for the rich. conservatives make a sausage that can president obama could sign. meanwhile venezuela nears financial collapse and china considers the options at $60 per barrel. good morning everyone, we are live from our headquarters in new york this thursday, december 11. i am tom keene. >> in hong kong a group of pro-democracy protesters making their last stand. they've started taking away protesters who refuse to leave. agoprotest began 11 weeks and as you know hong kong's government has rejected the key demands that the city hold free elections. we have live shots of the protesters standing firm and refusing to move despite police

plans to remove them. oil is holding at a 5.5 year low. wti now selling for less than $62 per barrel and the drop in oil prices killing venezuelan bonds. the bonds issued by the state run oil industry have fallen to $.55 on the dollar and the yield is up to 50%. >> on capitol hill the house is set to pass a spending bill today that will avert a government shutdown. lawmakers plan to approve a two day stopgap spending bill that would give the senate until saturday to vote. did a appropriators marvelous job and i wish i been done last week but it wasn't. so here we are i'm proud of the work that they have done passing bipartisan majorities in the house and the senate. stressed john

boehner i have ever seen. many democrats are not happy with the provisions that would roll back rules aimed at protecting taxpayers. democrats call that a giveaway to wall street banks and the spending bill is expected to pass in both houses. the barometer for the alternative lending industry, shares in the lending club began trading today. shares are priced above the marketed range. investorscomes from who can commit as little as $25. >> it is a huge loss for federal insider trading crushed by a federal appeals court, they reversed two convictions that he had obtained. the court ruled that it is not always illegal to trade inside information -- just a stunning outcome, the ruling raises the bar on proof needed for further insider chases.

that is the news this morning. that was a truly stunning announcement. he may appeal so that may not be over just yet. >> looking at equity fines and currencies, oil is stable at $61.63. there is the headline, a 10 year yield. entire hour, stephen roach is with us and we are thrilled to bring you this morning with dr. roach -- dr. or zach. -- dr. orzag. both of them with time at the brookings institution long ago and far away. i want to get to the emotion of the moment -- i don't know where to start. 1998 -- were we to a seeing real economy affects, it is here, market gyrations, do you wake up and say this is getting 1998 ish?

>> you do have a lot of if origination, venezuela as obviously an incredibly challenging economy, well under half of the breakeven oil price but the united states continues to show good momentum so in the midst of all of this we had a great jobs number. >> can you disaggregate and say it is two separate worlds? u.s. is the best house in a rotten neighborhood, we have a very subpar recovery with a lot of pressure on american consumers unrelenting in my view. 20 seven quarters of consumption growth averaging 1.3% in real terms -- we've never seen anything like it but it is better than the rest of the developed world and the oil hard,-- it hits producers especially venezuela and russia. >> the distinction here is roach

is more gloomy than or zach, can we tweet that? >> you mention the pledge and oil prices hurting oil producers and russia is raising interest rates in response. there is so much fallout from the plunge and oil prices, we talked about how benefits the u.s. economy, we are on the cusp of another currency war? sword, ituble-edged benefits consumers and hurts the producers. much higher oil prices to sustain their budgets. >> from the way you talk about it sends a yours is medium wage growth that is failing to go anywhere. >> my indicator is average annualized growth and consumer expenditures in the night of the

economy and 20 seven quarters and average growth 1.3%. the next 12or monthly business fixed investment. in the last three to six months it started to pick up connections. that's what you need or to turn out well. it's not helping you. >> you have an offset from the energy sector, no doubt about it. our estimates suggest that we're still going despite cutbacks in the energy sector, we will still in businesseight growth and that will pull a long consumption. china, i to bring in wanted get your take on larry summers's prediction that china's growth will slow because whatever goes up must come down. he says because that is what rapid growth does.

china already holds the distinction to be the only instance in the history of mankind to have sustained an episode of super rapid growth for more than 32 years. what is he getting wrong? what circumstance or context is he not accounting for. >> i have learned never to disagree with larry but the china slowdown story has been a longtailed story for decades. they have defied that slowdown but now i think i are in more of a 7% trajectory which is not a bad slowdown, they are shifting from hypergrowth manufacturing investment and exports to slower growth and services led consumption. that is slower growth -- growth for any economy including china but they can still absorb enough jobs. trouble ina lot of the central government about how

to proceed. we can withstand the slowdown because we need to make this turn where some of the others say we need that 7%. >> there is more internal angst from those on the outside who do not get johnna than those on the inside -- china, then those on the inside. >> do you ever disagree with larry summers? >> let's clarify, what that paper said -- >> he completely ignored you. >> it is a class of improv technique, he said yes and. >> what it said was, if you look across countries and across multiple experiences, what we tend to do is look at just the dynamic within that country in projecting growth forward and not look across all countries and attends therefore to systematically make a mistake in terms of underestimating growth for the slow growers and vice versa. that overall statistical finding looks very solid -- the question

is whether china can continue to defy the odds which looks increasingly challenging. you on the watch right now, you are more qualified than anyone in the country to in your head say oil at 160 -- what does it mean for all the plug-in of the budget in the u.s. system -- what is it mean, the biggest driver is that it adds maybe 50 basis points the u.s. growth -- and don't forget the deficit is very sensitive to economic activity so it is a difference -- >> will be go to surplus? >> noticed oligo surplus. >> steve just fell off his chair when i asked in that. >> growth has improved significantly not only because the economy picked up i'll be it to slowly, but also because health care costs continue this remarkable deceleration. medicare spending in the last fiscal year that ended in

september was down in beneficiary terms to the year before. >> it's going to go back up. that in is no evidence medicare it is driven by the economy, for total health care spending there is a cyclical component but in medicare there is no evidence that it has any relation to the macroeconomy. if it were to continue our fiscal trajectory looks a lot better. >> this development is a christmas present for the president but he is greedy, he wants more. he wants fast tracked trade authority. will they get him what he wants? we will find out. ♪ >> good morning everyone,

stephen roach and peter or zach with us as well have a morning must-read, this is david goldman who was front and center on cvo blowups, seven or eight years ago he is out to reorient and of agent, a scathing note overnight, apart from u.s. states where shell oil played prominent economic roles and told the u.s. employment remains lower than 2007 if oil continues to trade where is now or falls further, total u.s. could fall

by a fifth, this goes back to or zach argument to go. there it ish and this dichotomy of two americas. >> that is a extreme assessment of the downside to but the one thing i'm sympathetic to is that the central banks have been pushing on a string and they've been pushing really hard and while the fix is absolutely necessary in the depths of a crisis you can ways -- raise questions about the efficacy of monetary policy post crisis. >> are we exhausted by only using the federal reserve, have we use it as a tool or is there going to be a shift next year to take the pressure off janet yellen? >> if anything the shift will be toward a more adverse consolidation as opposed to something helpful. over the past several years we have missed the opportunity to

do the barbell of backdated and deferred deficit reduction coupled with upfront infrastructure and other investments which would've been the right fiscal policy combination. is failing to make infrastructure investments as well. economist always say it is an easy win yet politicians cannot do it. >> we have failed but europe starts and a better place, if you traveled in a european airport or been on a european train or even a european underground -- the qualitative difference between what they have got versus what we have got and we have not invested for decades is pathetic. >> it is true but particularly in germany there has been a lot of investment in the train system that i've been shocked to see that it is severely lacking on the roads. >> they are not bad. you,need to find out from dr. roche in terms of looking at

the fed projection of 2% inflation, what is likely to get us there? it's not going to be oil. >> what they are counting on is the economy continues to close the gap between where it is now and it's full employment potential, the standard phillips curb argument were demand starts to converge on a lower growth rate of potential supply. >> stephen roach and of course we have peter orzag with us as well.

, 10ood morning everyone year yield grinds in below 2.15% and we say good morning. let's get to the top headlines. cuttingy's central bank its main interest rate for the first time in more than two years. the central bank governor says the job is to prevent a severe downturn. the krone found as much as 1.8% against the euro reaching its

lowest since 2009. in northern california residents prepare for possible emergencies. are parts of the region already experiencing the powerful weather this morning. the national weather service says as much as eight inches of rain could fall. major elements of the storm are expected to hit the san francisco bay area later this morning. mcdonald's is a new strategy for reducing it's worth domestic sales slump since january. it hopes the move will speed up service. no word on which items will be a limited mcdonald's said earlier this week that sales fell 4.6% last month. >> you think they would eliminate 20 or 30 items and add a burrito. ugly for then golden arches. >> trade is allegedly one of the airy is where the republican

majorities can cooperate. we will know for sure when we see congress do one thing. fast-trackesident trade authority. michael joins us now from watching tim. what is the white house doing to get fast-track authority? working with democrats and republicans in both houses to promote a trade promotion authority bill that can get broad bipartisan support. the president has made clear he wants it, but we have a whole of government and administration effort underway or we can make all of our cap it agencies -- -- of our cabinet agencies >> who is your strongest partner in the house on the gop side? >> whitford positive comments

coming from republican -- we positive comments coming from republican leadership as well as on the senate side and we are working with them and democrats on both houses to move things forward. >> i want to bring in peter o rzag, what is the effect of a stronger u.s. dollar on the trade outlook because conventional outlook is it offers competitiveness and worsens the trade deficit. the big story in trade for the united states is the revolution in energy which has reduced our import a petroleum related products and what mike foemen is trying to do is expand our opportunities abroad so that whatever the level of exchange rate is those opportunities are greater than they are today. year the u.s. is expected to overtake russia and saudi arabia to become the world's biggest crude producer, is a reversal on the ban a part of the 2015 agenda?

know we've seen dramatic increases in production of oil and gas inks and part to the all of the above energy strategy. there has been no change in policy and we are looking at all of those issues but the key thing is that the combination of affordable energy here in the ad states plus the strength of the u.s. economy -- the size of the market and entrepreneurial culture and rule of law when you lay on top of that the trade agreements we are negotiating the partnership and trade and investment partnership -- we will have free trade with two thirds of the global economy. when you add that together it makes the u.s. very attractive as a place for companies to put their next factory to produce here and serve the u.s. market and the rest of the world. >> that was an extraordinary plug, the all of the above energy policy but dr. stephen roach wants to jump in with a question. tppust a question on the

strategy, the transpacific partnership, it excludes china as it stands right now and get china is moving to develop the biggest middle-class the world has seen and the biggest consumer markets the world has seen -- i know you have been pushing for market access into this chinese middle-class story but is tpp really going to be a failed experiment if we don't give china into the ak -- equation? membersurrent 12 represent 40% of the global economy, it is the largest trade agreement in history. our goal to that agreement is to tear down the barriers and support u.s. jobs but very importantly it is to set the rules of the road for the region by raising standards and labor and environmental standards. strong protections for intellectual property rights and access. making sure we are creating

rules so they can compete against private firms and do so on a level playing field. that is very important to making sure that we maintain competitors by leveling the playing field. with china we are working on a bilateral investment treaty which will determine how serious they are about moving ahead with economic reform but at this point the high standards for the region can be done by getting like-minded countries around the table to agree these are the way we want the systems to work. >> what is the cost of excluding china from that agreement? >> i think we are at risk of squandering what could be the greatest opportunity for an expanding market -- not just in asia but in the world. i am personally very disappointed in the progress or i.t.thereof made on the be that he just spoke about. we seem to be dragging our feet as to the chinese. tpp type of agreement

would be much more powerful. thank you, the u.s. trade representative looking east and west for transatlantic partnership's this year. >> our twitter question of the day is how do you trash talk at work ♪ >> now to our guest host,

stephen roach with the collapse of oil, the new mediocre, the future estimate of inflation may signal no inflation.

let's look at a chart, this from david goldman, the fuel of inflation five years from now out another five years, we are way in and it is rare going back 10 years. is our federal reserve overcome by global event's? >> the fed has its limits. crisis,t through a basically with zero interest rates and the had to come up with a new set of tools -- quantitative easing. it gave tremendous traction to markets but very little to the economy which is what they need to get inflation back up to sustainable or acceptable levels. they are at a loss for what to do next. we talked about this real autonomy analysis, is the story of the fed next year that they

have to shift to oil at 60 week nominal gdp in the tepid consumer. >> the fed is floundering they get a lot of credit for having saved the u.s., maybe the world in the depth of the crisis which by the way they contributed to with the reckless and irresponsible precrisis monetary policy but let's put that aside, what have they done to solve these fundamental problems of anemic growth, week recoveries -- >> is there a theory that any central bank can do that? >> ben bernanke will to you that there is but i think that syrian -- theory is a dubious one at best. my view is we are still on a consumer balance sheet recession and me to address the problems with excess leverage and inadequate savings and quantitative easing does not tug on that. to more the fed gives froth

the markets the less incentive there is for the authorities to deal with those. go 100 to 60, is that one of steve roach's bubbles deflating? >> i gave up years ago predicting the ups and downs of oil, i felt for a long time that oil north of $100 was not sustainable but did i think it would break in a matter of months, no way? fed,en you look at the they have people who have been through this like steve roach, how should they address congress next year, what is the dialogue they need to impart on politicians. >> they need to be tough, the dialogue from the fed has to be to congress and the white house that we are done and moving the other way and it is time to normalize monetary policy and get away from these crisis induced settings and that will put pressure on the economy and you guys have to respond to the

pressure with this barbell fix on fiscal policy. >> vince runs economics for some firm. you invented morgan stanley economics and reinhardt is running it right now and he has the fed way out down the road, do you want to go out further than vince reinhardt and ellen denton and say this is a fed that will not act for years? i think the fed is on a path to normalize rates, it is reckless and irresponsible for them to keep their policy settings on emergency. >> what would happen if they raised rates right now just to get us back to normality? >> it would be a total shock to the market who is addicted -- can we get over it. -- then we get over it. policy settings on emergency recovery is better

is ludicrous. >> i look at this time the dialogue in the fed and i go to this phrase by margaret thatcher, which of these are we most concerned about within the gyrations that we see? away from oil. venezuela? russia? putin? applecartteve roach -- what will offset the steve roach applecart? >> i take the point that a lot of the oil producers like russia and venezuela are extraordinary pressure and this has for texas on policy and animation in ukraine and elsewhere. that is certainly unnerving to me. >> stephen lynch -- roach with yale university. datave a lot of economic coming up this morning starting with detail sales at 8:30 a.m.. had a all that futures are

inching higher. the 10 year yield, a little change coming down and we are keeping an eye on crude oil. -- $61.30, up slightly yesterday. this is bloomberg "surveillance." let's get to the top headlines. we start with hong kong where pro-democracy protests are in the twilight. demonstrators there make their last stand. protestersing away who refused to leave. student leaders say they will remain until they are arrested. protest began 11 weeks ago. weiss,uble for antonio running into democratic opposition. three more senators from the party including west virginia, new hampshire and minnesota turned against the nomination of weiss. role ofitical of his

engineering tax lowering deals for u.s. companies. the house is set to pass a spending bill that will of her a shutdown of the federal government. lawmakers plan to approve a two day stopgap spending bill giving the senate until saturday to vote on the measure. it would rollback rules into protecting taxpayers from bank losses caused by derivative trades. on the spending bill and budget congress is in session and a scarlet mentioned sausage is being made. senate republicans are ordering new curtains in their minutes of spare time and all of washington should consider options for reducing the debt from 2015 to 2024. peter or zag is one of the true experts on the glide path of the debt and deficit. he is with citigroup, i look where we are and the consensus thing is yeah but. in 2017 a gets worse. does it?

officials where the ejection success will happen but there is a huge amount of uncertainty over deficit reduction, two big things, one is the rate of economic growth and secondly what is happening to health care? those two things will determine if we follow the cliff or in a state -- >> what if we get subdued inflation and we just don't get real gdp back to those plug-ins? >> the implications for the fiscal trajectory are not great, ironically that brings us back to the barbell idea which is that's what you should be doing in the low growth environment but above and beyond that coming back to earlier, what happens to medicare? it will be a big driver of the long-term fiscal gap. >> i found something in the cromnibus bill that i like.

the gabriella miller first kit slashing money for political conventions which is good news for all of us -- i have a question for peter orzag. >> i like that excitement, that is great. >> trying to do something in the morning. schock on then show couple weeks ago and he gave a dog whistle and said that one of the things he wanted to see happen was dynamic scoring by the cbo, help me understand what that means. >> when you evaluate a change like a tax cut spending increase, you take into account the feedback affect on the economy which affects the budget. one mostculty is, republicans only want to apply that to tax cuts but as we were just discussing and

infrastructure investment can generate macroeconomic gains in this environment and the second thing is that it is really hard to do well. >> is there anything close to a consensus on the multipliers for spending your tax cuts. is wide enough that if you are the director of the budget office you have enough range to pick from so you can flip the sign and that is the problem. here, iet help me out have enjoyed standing in iowa where the floating highway ended and it became like dorothy in the wizard of oz because we had infrastructure building an interstate highway system. >> i was wondering where you were going with this. >> now we can't get to washington dc and four hours because the roads are kaput. peter orszag think you so much

for being with us. and the spending bill will be voted on today. peter or zag joining us. e-mail,reful in your you don't what to be a minimally talented spoiled brat. >> that brings us to the twitter question of the day. ♪ >> digital media continues to

see huge growth but in the world of radio things are staying the same. betty liu joins us now great hiding because earlier in the ground or running up a chart chester gap between how much time people spend on certain platforms versus how many advertising dollars they attract and radio is a gap in terms of times that are not as large as mobile or people spend 20% of their time on mobile but it only gets 4% of the advertising. >> yes but we know that is changing and this is all coming off of very low numbers and eventually in five years or so that gap will close up for radio, how many times have we heard that radio is dead or dying. it just won't go. i love radio but people have not changed that much. they still listen to the radio in their car and we still drive a lot in this country. radio song is flat for

the question for any of these broadcasters is how do we get that growth. how do we get on that digital bandwagon. ceo lew dickey is going to be joining us, he is getting on the streaming bandwagon and he has a investor in rbl. >> as china's middle class continues to grow does the radio market their get bigger as well? sure, when i am driving or being driven in china the radio is there in the background. and there is a whole variety of stations that are not unfamiliar in terms of their cross-section to us the chinese middle class can listen to. here trying to imagine -- the other model for radio advertising is to hold a pledge drive and i'm trying to

imagine what our surveillance pledge drive would sound like. where else can you get discussion of the islm model. >> angelina jolie e-mails. >> it would take more than that. that is the public radio broadcaster's least favorite part of the year. >> we learned a lot of bloomberg "surveillance ." nationwide. we know that they want conversation. they want every poll and every survey and the advertisers flock to it as they listen him a most of our advertisers that we have on surveillance, the people that support me every day, those people started out being fans of the show. >> you think the difference between radio and conversation? >> that is a nuanced question. >> it is a great point because we have not really seen whether talk radio is going to work yet

on streaming services. so far it has all the music but can you translate the rush or mygh's of the world cockapoo a be's or the howard stern's into pandora. -- people you get two trying to reconcile tough issues that is a powerful message. loop".y liu on "in the

>> tomorrow on bloomberg "surveillance." for morganned stanley on a spirited discussion on the markets moving ahead particularly mergers and acquisitions. the 10 year yield is just under 2.51%. other than that a churn into the market. right now a churning top headline. >> a churn for radioshack. the company reported a larger quarterly loss in projected and radioshack struggled to attract mobile phone customers. the third-quarter loss was $1.23. radioshack has posted 11 straight losing quarters.

its newis rolling out stricter personal conduct policy, owners unanimously approved the revised standards which removes disciplinary power from roger goodell the commissioner. and allows for independent league investigations into accusations. the players league cried foul and say they should have a bigger role. >> federal prosecutors unhappy with a lenient sentences given to bernie madoff. a government lawyer says like punishment may hinder justice for the victims of his ponzi scheme. office hadrobation recommended eight, perez is the fourth of five former associates to be sentenced, those are the top headlines. in the headlines all week has been china. the slowdown there with customer prices growing at less than one half percent. there is a fear of deflation coming to chinese shores as well. we are chinese stocks plunge after climbing to two three-year

highs. author of "unbalanced, the codependency of america in china." i was start with the chinese slowdown and the global implications, south korea and japan, u.s. and germany to a lesser extent depend so much on china for exports. >> especially the australia and brazil and the resource economies hooked on what i call the old china which is manufacturing resource intensive growth and fueled investment and exports and they don't want china to change the model and yet china is changing the model and moving away for the manufacturing to a resource light services-based model. it is a big shock to them. china is going from seven to zero and the cpi is going from positive to

negative is i think reckless extrapolation at best. >> deflation is not in the cards? >> i'll think so they have ample room on monetary and fiscal policy and they deployed their first monetary easing in late november and there could be more to come. >> i one of point out that reckless extrapolation is a pizza parlor in new haven. >> i saw you there one time. >> the images we been looking at our of empty apartment buildings. brand-new construction in china. >> you been looking at those images for 15 years you have guys like jim tell you about ghost towns. to 20 million people per year from the countryside to the city come a they have to build before people, so they show the buildings before the people come. the first one i saw is fully occupied now. the ghost towns are what has

been described as not a cyclical slowdown but a structural slowdown, a movement happened and now it is over. is that true? >> no, china is doing urbanization between now and 2025 they will take the urban share of the population from 55% to 75%. they will build anywhere from 55 to 70 new cities. >> is the price to this out of this mini crisis that finally china gets a voice at the ims, that europe gives up some of their rights and china becomes what you wrote about. think tom, what china is doing is moving to get more of a voice in the imf that it is also moving to build and lead other institutions in the region where but $60 formative role

oil can be a catalyst for that, and my right? resources toample drive its contribution to global multilateral institutions as well as a journal -- asia regional specific institutions and the oil is not a critical factor in chinese ability to express those aspirations. up ims has a decision coming should approve the rim and be as beeserve currency -- rem and -- reminbi as a reserve currency? >> that is five years out. first, talk what the shift in urbanization and how it is taking place as we speak, one of the cost of all that is at the air quality is hernandez as china becomes more urban, or than half the days in beijing are either very

unhealthy, hazardous or unhealthy or sensitive groups. can china be a leader in turning around its climate? >> they don't have any choice. this is an issue that resonates deeply throughout the country, air and water and rampant development that contributes to that. they're pushing ahead hugely on alternatives in the low base and they have a nuclear expansion effort that is certainly very different than the trend in the rest of the world. but 70% of their energy is the dirtiest source of fuel. not only do they have to move away from that but they are committed to doing that with this deal that was just signed by obama at the aipac meetings. it will take a long time and in the meantime the air quality will remain her ethic. >> they had a beijing marathon. >> they hold it anyway.

orlet's get to the agenda with some authority shaping the day. agendas we could work with in these markets and without question it is deflation. it is over there and not part of america is the idea but then you see some of the real economy shocks of the last couple of days, the five-year forwards view of inflation is john dropping. the rapidity about how that has come in, it is not inflation or disinflation, there are brutal moves. a constant concern, i am looking at venezuela. benchmarknt there -- 2027 dropped to $.44 on the dollar yesterday. bloomberg news has been doing great work on this, she found a he saidst night, something that is hard to process. it is hard to think of a new

marginal buyer for venezuelan debt, that gain seems to be over very quickly. >> on my agenda, something a little bit lighter, the golden globe awards domination's be announced. this is a big moment for anyone who follows hollywood. reese witherspoon could get a nomination for best actress because of "wild." of course, angelina jolie's on broken -- did you read the book? a great book about a u.s. fighter pilot shot down by the japanese and how he lived out his days in a prisoner of war camp. that brings us to the twitter question because we could not stop talking about the new york post of all the e-mails uncovered in the hacking scandal. what is the quote? >> angelina is a minimally, talented spoiled brat. >> roach was all over this.

>> the lesson about trash talking work is don't do it. whatever you do it, whoever you're talking about is within your shot. >> avoid it completely. >> we crowd sourced for some answers and this is what the twitter sphere had to say. how do you trash talk at work? >> the first answer, i don't, you never know who listens to or reads what you say. >> trash talking gets you nowhere, rather kill them with kindness. >> is this saint stay on twitter? >> this is machiavelli in. this is self-preservation, never write anything down. >> i might say the occasional bad thing about a person -- not put it down. #morse code. >> there is a smart answer. >> what am i saying? >> i want say it.

>> thank you for joining us. bloomberg "surveillance." continues, "in the loop" is up next.

>> good morning it is thursday, december 11 and we are live at bloomberg world headquarters here on "in the loop." what a packed show we have for

you, billionaire investor joining me with his top 10 stock picks right before the bell. from betting on the decline in oil prices to why the aging population around the world leaves a bonanza of investment ideas. also the right of the right, outspoken steve king of iowa who some republicans call to toxic for them to align with. he will join me in moments on why he is voting against the spending bill. here's a look at our top stories, china looking to jumpstart its slowing economy. pumping $65 billion into the chinese banking system. china is on track to mix -- miss its economic growth track in 15 years. vote on a two day stopgap measure that would give the senate until