>> from bloomberg world headquarters in new york, i am mark crumpton. this is "a bottom line," the finance and of economics with the main street perspective. to our viewers in the united states and those joining us from around the world, welcome. we have full coverage of the stories making headlines this friday. the only one who knows what inside your medicine cabinet. phil mattingly reports on what some are calling a war on wall cook has theeter

latest details on the spending bill as it reaches the u.s. senate. we will get to all three in a moment, but first, let's get to some of the top stories we are following this hour. the s&p 500 is headed to its biggest drop in two months as oil continues to sell off. the s&p is down as you can see more than .5%. thedow is falling and nasdaq is down fractionally. oil is under pressure yet again. crude is over 3% atthe red, right now $58.06. low oil prices are hurting the economy. what this bloomberg

may mean for fuel costs. >> when prices collapse like this, it is a scramble. we de-hedge, in a sense, and then look for opportunities to read hedge when we can. when prices fall, overall, the airline has far less fuel cost, and that is the big key here, we will have a billion dollars in in 20 15.costs >> london was thrown into chaos after a computer error caused flight delays at heathrow airport. gnats controls all of british airspace from two centers, one there and one in scotland. sell its stake in cotelers to pimco dash cam

he. it will buy blackstone's interest in the properties in new york, virginia, texas, florida, and maryland. the transaction is valued at $25 million. that is a look at the top stories we're following this hour. the u.s. senate could vote as soon as today on a $1 trillion spending bill that would avert a government shutdown. themeasure barely cleared house after president obama house democrats to back the bill over the objections of nancy pelosi. peter cook joins us. is the senate ready to wrap this up? >> almost. if harry reid had his way, this would be wrapped up today. it is not clear that is going to happen. there are procedural hurdles that need to be cleared. to republicans did more

block the president on immigration. democrats don't like a whole host of revisions in this legislation, mainly a provision they believe unfairly benefits wall street. again, a clock is ticking right now in the senate to try to wrap things up by midnight. saturday, that is when the next shutdown threat would be. can they do it by that time? this may even roll into monday. a big question -- will they allow amendments? ted cruz does not like it a cousin of the immigration language and elizabeth warren is really -- does not like it because of the immigration language and elizabeth moran is really upset about the amendment the benefits wall street. is reallyth warren upset about the amendment that benefits wall street. >> this bill is far from perfect , but when we pass it, we will know that we have put this country on a more secure financial footing. ouran then go home to

states and tell our constituents that we have passed legislation that keeps america safe, spurs the economy, and keeps the government open. >> the writing is really on the wall. it is going to be hard for critics to stand in the way of legislation that has cleared the house. with the shutdown looming, the question is when does this bill pass, not if at this point. >> what about the democratic revisions last night? it's not everyday you see obama and pelosi battling each other. >> a very unusual situation. strange bedfellows playing out throughout the course of the day yesterday. pelosi was on one side. elizabeth warren with nancy pelosi. the president with john boehner. strange battlelines, and there are still some tensions over that. but you saw nancy pelosi assert her self yesterday. the white house today said listen, they disagree on the

tactics, not the ultimate goal. they will continue to work together. they have been close collaborators. us from cook joining capitol hill. thank you. wall street is back on top in washington, or at least that is what democrats are saying. as peter just mentioned, the $1.1 trillion spending bill includes an amendment to repeal a piece of the 2012 law. are democrats turning to an anti-wall street message in the wake of their midterm losses? >> it certainly appears that way. with senate democrats in control of the majority, very few, if any, proposals to make any changes whatsoever to the dodd frank financial reform law have had a chance to move through. as peter noted, there is a provision that would repeal a

section of the derivatives portion of the law. wall street has lobbied very hard for this. but they might not have calculated for elizabeth warren. the senator from massachusetts has made this a major issue, so much so, she was able to rally her democratic colleagues in the house to nearly kill this bill. the concern you hear from wall street lobbyist is did we awake the sleeping giant, and there is a possibility they may have. >> democrats were clearly challenging the white house over this provision. how problematic will the war in wing of the party be going forward? >> there are two elements to this. one, how is wall street going to work with the new republican congress and two, how is the white house going to work with democrats? there is not going to be a ton of opportunity for similar types of situation going forward, but

there will be some. as part of compromise from the white house, this is going to be an issue going forward and one to keep a close eye on. >> phil mattingly joining us this afternoon. the ink you. coming up, federal reserve officials -- thank you. coming him, federal reserve officials will be holding their -- coming up, federal reserve officials will be holding their final meeting of 2014 this afternoon.

>> welcome back. wholesale prices in the u.s. fell more than forecast in november. the drop was due in large part to plunging oil prices, indicating that inflation pressures remain weak just as federal reserve officials head into their december meeting. earlier today, bill gross spoke with tom keene. he offered advice to federal reserve vice chairman, stanley fischer. advice, ire to give

,ould say simply that the fed as the central banker of the worry basically has to about financial conditions not just in the united states but in the world, so that next week, in terms of the language and their stance going forward, they should be very cautious about any type of tightening indications. >> for more on the u.s. economy, let's bring in chief economist linzie p is a. welcome back to bottom line. >> thanks for having me. >> we talk about inflation pressures. in the u.s., they are still week -- weak. >> the fed obviously has a dual mandate to instill full employment and stable prices. the labor market is still sending a lot of mixed messages. now the fed has to contend with its other problem, sluggish

inflation pressures. consumernd out that sentiment increased to 93.8, the highest level since january of 2007. is this all about falling gas prices and is the momentum sustainable? >> it is all about gas prices. consumers are saying they are feeling a little wealthier, on stronger footing than just a few months back. but consumers often say one thing and do the exact opposite. we have seen as of late that retail sales have not been as an over 90 reading in competence would suggest. they surly are projecting a more optimistic view of the economy. >> inflation on the incline, american workers wages still stagnant, the labor market sending mixed signals at this point. what are we likely to hear from janet yellen at her year-end press conference? >> the fed is still struggling

to explain the juxtaposition to the market of back-to-back quarters of above trend gdp and strong headline job creation. on the other hand, as you mentioned, wages are very stagnant. we saw a nice bump up in november, but on average, it is 1.9% since the end of the recession. she needs to struggle to convey monetary policy is heading given that we are still on uneven footing in the economy. >> tom keene said the fed may become more dovish after this oil prices.e in talkso said why would they about this when the u.s. is not moving in the direction of its 2% target? what is your reaction? into we turn the order 2015, we get a new host of

voting committee members. we are going from a more moderate federal reserve with three hawks with a vote to a committee of more doves with just one hawk. jeffrey lacher alone is the sole hawk with a vote in 2015. i do agree that we are moving into a more dovish system. >> what does this mean for the street? >> lower for longer. i know the vast majority of committee numbers have told the market they hope we will begin a tightening process in 2015, but that hope is based on optimistic forecasting. 3% gdp as far as the eye can see. if we fail to meet that expectation, the fed cannot raise rates. a again, against the backdrop of a dovish committee, it is likely inflation remains on hold for 2015. that has been the case for some time now. reality will keep us at this low level. >> is janet yellen going to

tipped her hand? >> i think she will lay down what she is looking for as far as the needed expectation for strength. one-month does not make a trend, but she is likely to reference the payroll report and back-to-back quarters of growth. we are taking steps in the right direction, but we still need to see a trend of underlying momentum strong enough to signal to the fed that the economy can withstand a higher rate environment. >> the minneapolis fed head said he is going to step down when his current term expires. in october, he dissented at the meeting. what is his absence going to mean? >> another vacancy at the fed for quite some time. remember, we are still waiting on capitol hill to appoint members to the federal reserve board. for right now, it just means less heads in the game. maybe a little less of a dovish bush. there are plenty

of committee members left to discuss what is happening in the economy. >> good to see you. >> thank you so much. >> up next, julie hyman gets the latest on equities. we go on the markets when bottom line continues in just a moment. ♪

>> for decades, pharmacists and patients have had a tacit understanding, whatever you buy at the drugstore is confidential. but in the age of big data, big brother can now see what is in your medicine cabinet. this is disturbing. >> i find it very troubling. feel that way.ts

let me explain to you a little bit what we are talking about. it is kind of confusing, so stick with me. the goal of the pharmaceutical industry is that they want to when you see an ad, does that mean that you go fill a prescription for that drug? are the ads effective at all? if they find out they are effective, they want to send you more. on this person, the ads were, let's send them more. >> we have real demand. >> that is the goal. so, they send out an ad campaign to let's say 100,000 people. if one of the people sees the ad and then let's say mark crumpton goes to the pharmacy and gets that heartburn medication. a record is now created that you got that medication that is stored in the pharmacy's computer. all of your identifiable information is stripped and sold to a data broker who now has an

unidentified numerical code assigned to you. they don't know it's you, but the code is in the computer of the data broker. on the other hand, you have a yahoo! account. yahoo! knows a bunch of identifiable information about you, your name, your birthday, that sort of thing. yahoo! goes through the same process of giving you a unique code. they have a process to match those two things up, your prescription records and your online account to say this person saw an ad and filled the restriction. let's send them more ads. let's target them. changed and the unique codes are not changed. are involved?nies >> yahoo! is one of the biggest names. everyday health is another one that does it. then there are some pharmaceutical companies.

other pharma companies who would not deny or admit whether or not they do this. one company told us they used to do this. glaxosmithkline, but then they thought well, you know, maybe this is a little on the borderline here. maybe this is something we don't actually want to be doing, and they stopped doing it. >> what are the risks and benefits of drug makers and internet companies joining forces like this? it's great.akers, the marketing has become a lot more difficult for drugmakers in the past. before, they could directly market to doctors and get to patients that wait. -- that way. doctors have been closing their doors to pharma reps and saying we don't want to look like we are being influenced by you. the web is a prime area of marketing. this is great for the business, and companies doing this can charge

a lot of money, hundreds of thousands of dollars for ad campaigns that use this process, which is called match back. now the patient -- if you want these ads, if you want to know all about these drugs, that's great. if you find it creepy that all of a sudden you are getting ads medication like erectile dysfunction drugs or an antidepressant, you might not want that information popping up on your web browser. >> in your story on bloomberg.com, you write that the international pharmaceutical federation's code of ethics requires that members "respect and protect the confidentiality ." patient information this is legal. but is it ethical? >> a number of privacy scholars say no. they are really upset about this. this isnot think appropriate. they think at the minimum it should be very clearly disclosed to people what is going on.

for example, in yahoo!'s privacy policy, they do not spell out that this process goes on at all. at the minimum, people should be informed that this is happening. >> this would lead one to believe that there may be a legislative remedy to this, because obviously the loophole in the privacy law is cavernous, to say the least. >> health and human services privacy the federal laws for patience. when we contacted them, they were not aware of the practice. >> really? >> the fcc, our sources tell us this is something they are very interested in looking into and investigating, so there may very well be some changes down the road. know from data that you buy viagra, they want to sell you more. we are coming up on 26 past the hour. that means that bloomberg

television is on the markets. >> let's take a look at where stocks are trading. not much more to go in this session. we had declines throughout the day. they got a little smaller as the day progressed. however, material stocks are still leading declines. we see that oil prices continued to show the lowest we have seen in about five years. in terms of individual movers, united technologies is one. revenue guidance for 2015 is below what analysts were predicting. military commercial business in particular is having its worst day in a month. cosco falling to a one-month low, suffering its biggest entry day decline since march. the rating has been cut from neutral to buy saying sales of gasoline are likely to become a head when within the next sectoral -- next several months. ♪

>> welcome back to the second half-hour of "bottom-line" on bloomberg television. i am mark crumpton. thanks for staying with us. more and more colleges are doing away with sat scores as a requirement for applicants. places like temple university tos there is a better way evaluate students. why did temple make the decision to do away with sat scores as an admission requirement? >> our mission is to provide

access to excellent education to students from all backgrounds. there is emerging data that standardized test differentially impact people from different socioeconomic backgrounds. if we are going to provide access to working class students, lower income students, we want to look at other ways to make a decision. applications are up about 11% from last year at this time and almost a quarter of students did not submit their scores. what do you make of that? >> there are a large number of students who have taken the sat once, twice, three times, and they do not believe it is an accurate measure of their ability to succeed in college. this gives them another path i answering a series of questions on issues, recommendations from their teachers and so on, their gpa in high school, to show their competency to do well in high school beyond one test. >> can you explain the process

if they do not submit a score? there is something called the temple option. what does that mean? >> it means they answer for sure questions. we got funding from the gates foundation to develop this. we will have two graders of each question. what we are looking for is if students have grit, self-determination. have they overcome obstacles in their life that would suggest they can come to college -- which is difficult for a lot of students, especially low income students, and succeed in that environment. >> what do you mean by grit? >> the questions are structured so they ask people how they overcame adversity. what are problems in their life they have had to deal with? how have they dealt with them, and what has been the outcome? looking for.we are i was the first in my family to go to college and i remember taking a calculus class. how do you deal with problems?

how do you overcome barriers to succeed in life? >> you are from a working-class background. you attended college on a scholarship. how does that shape your philosophy in terms of how you lead temple university? >> totally. my peers who did not go to college -- i was one of very few. i am from illinois where caterpillar tractor trailer company is. i was one of only a few who did go to college. i see where their career path has gone because the old midwest jobs have disappeared, and it put me on a totally different escalator in life and gave me opportunities -- and gives my children opportunities that fellows i went to high school with never had. it is so important to give everyone access. have theing to american dream, and everyone, regardless of their background, is going to be able to succeed. we have to have pathways to make that possible. >> there is an ongoing dialogue

about whether everyone should in fact attend college. >> true. >> some people say you should skip college or going to college as soon as you graduate high school and save money so you can actually afford to go. there is a camp that says some people should not go to college at all because there is nothing wrong with being a plumber or being a carpenter. that is a noble profession. >> absolutely. i had already signed up at the electricians apprentice program a caterpillar before i got the scholarship. i am in favor of people picking a path. on average, the return of a college degree is higher than it has ever been. people are going to be doing better financially if they go to college or says not. but i was ready to be an electrician. a skilled trade is a very viable direction. if that is the direction you want to have, there ought to be a pathway to get there. if we didd be remiss not ask this. trustees,r long time

bill cosby, recently stepped down as a member of your board of sexual allegations misconduct. >> i was not involved in that decision. he is a trustee of the university. he is my boss. he was my boss. i was not involved in the decision. i think we ended up in the right spot. he has been very loyal to temple for many decades, but in the end, i think we ended up in the right spot and i honor him for doing them. higherbloomberg education reporter jenna laurent and the president of temple university, thank you both so much. bottom line on bloomberg television continues in just a minute. ♪

>> just a reminder, there are

multiple ways to watch bloomberg tv, on the web, your mobile device, apple tv or amazon fire tv. in google'snge browser policy could be a huge game changer. a company in israel has seen its stock plunge this year. it had to slash its revenue forecast. we spoke with the ceo about the company's strategy to regain growth. dynamicsare changing in the industry but we are focusing on investing in new things and getting through the tough times so that next year, 2016 and 2017, we will be back to growth for investors. when google changes things, it costs you a lot of money. how much of a concern should that be to you? >> first of all, google is a

great company. they do a lot of good things for the benefit of consumers, and they obviously have a pretty good market share in the anything digital today. when they make a change, it affects a lot of people. diversify awayo from having a dependency on those changes. in mobile units and other units we have tried to do that. with regard to policy changes and technology changes on andsers, it is up to us others in the industry to create real value for users, for our customers, and when you do that in a way that is transparent on both sides, i think the noise will go down and it will be much more stable in the long term. we are focusing on getting to the point. we are excited about that as well as the new investment in mobile.

>> what should investors be focusing on a getting excited ?bout is this a good money to invest in when it has dropped by half over the last year? >> there are three things to look at. one, is the worst behind you? two, what new additions are exciting and have growth potential in the future? three, what is the financial company? of the >> it is time for the latin america report. it's the worst week since october approaching a bear market. producer petra trobas extended a five-day slide. consumers continue to shop in the face of higher interest rates. sales jumped 1% after a slight

gain in september. shoppers face super borrowing costs after the central bank as did the benchmark index to its highest level in more than three years to control inflation. and that's your latin american report for this friday. up next, encore, your look at the biggest newsmakers of the week. ♪

>> it's friday, so we bring you encore, a look back at the most notable newsmakers of the past week, on "bottom line." >> it's been a tough year for emerging markets. deflation will be the name of the game. there is monetary policy in the u.s. and the china driven growth dynamic. >> one thing that is greatest to watch people become intrigued, -- is great is to watch people

take a ridegued and on one of our bikes. no noise, no heat, no vibration, note years, no clutching. it's all about the purity of the ride. it's great for those people who are speed freaks, a phenomenal experience. >> supply-chain dilemmas, poor working conditions, deportation. business has a choice to be part of the solution or concede being part of the problem. we are looking at people having about 170,000 on average. keep in mind, this includes everything. this is not just your 401(k). this includes the equity in your home and the value of your car. price in the country is around $210,000.

everything they had and used it to pay down stillmortgage, they would on theaverage $40,000 mortgage. and again, this is the median. most people are worse off than that. is holding in ukraine after what president poroshenko called the first full day of peace since may. this comes at a time when the european union is considering tighter sanctions against russia. states like estonia have expressed concern over folder ability. chris regan spoke with estonia's prime minister. smoke with regan estonia's prime minister. >> he is only 35 years old and married to a pop star. he is the youngest eu prime

minister. we talk a lot about russia. that is a concern in the region. he talked about the fact that estonia is part of nato and he does not need to be concerned in the way that ukraine would be. something i found incredibly interesting was the cyber digital identity that all of the residence in estonia have. do you know that one third of the people in estonia vote online? they do their taxes online. everything is done online there. everybody has a digital , which is kind of remarkable. we have talked in this country about having a digital id or digital id cards. they have actually done it. there are fewer people there, so it is a little easier, but they are known as the most wired country on earth. talking to ay is

lot of people out there. he went to d.c. where he met with joe biden and nancy pelosi and john boehner. interest right now in estonia is behind the technology. >> is he concerned about a possible spillover because of hostilities between russia and the ukraine? >> he certainly downplayed that. has concerns about vladimir putin but he tried to thatlay the overall threat could in fact be. a very interesting guy. youid talk about the you -- -- we did talk about the european union. he did not want to speak too much about quantitative easing in the new year. trish regan and "street smart" coming up at the top of the hour.

>> we start the week with a key obama care deadline. monday is the last week for the uninsured and insured alike to enroll for health benefits that will kick in january 1. otherwise, open enrollment doesn't end until every 15th. -- february 15. we will get earnings from verifone, darden restaurants and dave. oncan expect new data tuesday that should show u.s. housing starts increasing in november, according to a bloomberg survey of economists. the biggest piece of economic news comes on wednesday when the federal open market committee tots here in washington decide whether to keep its pledge of holding interest rates

near 04 "a considerable time." -- near zero for "a considerable time." janet yellen will hold her news conference following the release. across the pond on thursday, european union leaders start a two-day summit in brussels. on the agenda, support for ukraine, how to deal with russia, and the eu economy. back at home, according to two people with knowledge of the matter, metlife will come under the microscope of federal regulators with the financial stability oversight council. a meet on thursday to vote on whether the insurance giant is systemically important as a financial institution. if yes, an appeal by metlife will not be far behind. also thursday, earnings reports from nike, rite aid, accenture,

blackberry, our macs, and finish line earnings will close out the , and finisharmax line earnings will close out the week on friday. quick stay with us. as we head to break, let's take another break check of oil on this friday. below $60 a barrel. nymex crude dropping thre 3.72%. the indexes on wall street show a drop as well. the dow jones industrial average falling today, right now down .09 points at 17,387 nasdaq is down half a percent. the s&p 500 is at 2017. ♪

>> get the latest headlines at the top of the hour, on bloomberg radio, and at bloomberg.com. that does it for this edition of "bottom line." i am mark crumpton. have a great weekend. i will see you tuesday. on the markets is next.

>> its 56 past the hour, that means bloomberg television is on the markets. i am julie hyman. it's about an hour until close. across the board, drops. it looks like the s&p 500 is going to snap its weekly winning streak. stills we know, is trading lower and we are seeing material stocks lead the declines today. even as we get lower oil prices, there is still a lot of activism on the issue of climate change, and that means there are more etf's at play. we have an etf analyst. even as we see what is going on with energy prices, we have the issue of climate change looming. the u.n. has been active and governments around the world have been active on it. have been active as well. >> to etf launched in the past

week that track virtually the same thing. ishares and spider track the low carbon target index and the all country world index. in short, it basically gives you the whole world in one shot. 50% u.s., 40% international. -- low carbon. how do they do that? >> instead of investing in clean energy companies, which is what you would expect, this fund literally tries to give you the index of the world and track it within 50 basis points. it basically screams out and lowers ratings of companies that have -- countries that have a carbon footprint. it keeps the same sector bans, but it is going to let you sleep at night because there is less

chevron, less fedex. i looked at the returns over three years, two years and last year, and they're basically keeping on top of that performance. rap on the green etf's is that they are volatile and don't track an index. they are more like a niche play, an accessory on top of your core portfolios. these are meant to be core positions. >> it's a socially conscious version of a tracking etf. interesting that they both -- i , are they identical in terms of holdings? >> they track the same thing. they do the same thing. and they cost the same. i give them credit. they are cheap. stocks across the world for 20 basis points. sometimes you see an etf come out and they are more expensive

than your average fund but this price asto be the same a plain-vanilla global allocation. investedited nations in both. >> yes, it put capital in both. they both came out with the product in the same weekend to put money into both. but the u.n. is hearing from investors. we want to make sure we are investing with the social consciousness. that is why the u.n. invested. >> that's it for on the markets. street smart is next. ♪