>> from bloomberg world headquarters in midtown manhattan, i am matt miller, in for mark crumpton. this is "bottom line," the this this andf economics with a mainstream perspective. to our viewers in the united states and those of you joining us from around the world, we have full coverage of the stocks in stories making headlines. senior markets corresponded julie hyman with the price war over the hottest toys on the market. peter cook monitors another deadline for obamacare enrollment. and we begin with shelby holliday.

it was a dramatic ended to a hostage situation in sydney, australia. >> australian police confirmed that three are dead and 4 injured after the 16-hour siege in downtown sydney. the victims included 2 hostages, 38-year-old man in a 38-year-old woman. and the gun man, a 50-year-old man. in a news conference that 17 hostages total had been accounted for. we found out that a police officer suffered a non-life-threatening loan to the face -- wounded to the face that we don't have information on his injury at this point. >> how did the situation unfold? >> the crisis came to an end after heavily armed police lint chocolate café good gunfire rang out for about 30 seconds after several hostages escaped with their hands up.

not seenn who was leaving the building, the suspected gunman, identified as s.n haron moni he is a self-professed muslim cleric with a long criminal record. he was connected to the murder of his wife and charged with more than 50 counts of sexual assault. prior to the hostage situation, monis was out on bail. >> what about ties to extremists, to terrorist? is an ongoing investigation. we don't know yet. he is believed to be acting on his own. he did when he entered the café and took the hostages at forced people to hold the islamic flag in the window. it was reported that he was asking for an islamic state flag, and on a website believe to be his that has been taken down, he was pledging allegiance to the islamic state. this has heightened fears that it was tied to a broader terrorist attack.

at this point officials believe it is it will -- it is a lone wolf attack. >> shelby holliday with the details of the unfolding of the hostage crisis. i'm joined by the vice president of intelligence at stratford global intelligence, a firm based in austin, texas. he is a former counterterrorism agent for the state department. thanks for joining us. what do you think about the possibility of this as a errorist act? doesn't look like the act of a lone gun man, someone with issues, with mental problems, which is it look like an act of terrorism -- or does it look like an active terrorism? 24, 36 hours we will have a better handle as to the motive. that is the challenge, to identify the individuals predisposed towards this activity before they strike. once the attack takes place from

all the pieces of the puzzle fit together. but identifying these people ahead of time, i can tell you from a first-hand account it is very difficult to do. >> what about the issue in australia, someone accused of murdering his wife, accused of sexual assault, walking around on bail? this this kind of thing -- is this kind of thing normal in that country? >> not really. the challenge for the security services is he very well may have been commonly known with a had crossedtory but the transom into the intelligence case -- meaning was he visiting jihadi websites? did he download materials that it would indicate he was heading down this path? that becomes a problem from an investigative perspective, trying to identify these folks before they strike. >> the sky apparently had a

website local -- this guy really had a website and local reporters knew by name and face. clearly he should have been scooped up for this happen. what about the u.s.? are we better prepared here? terrorism task forces across the united states are doing a good job neutralizing these attacks with a strike -- before they start. we have strike in astoria, the beheading of the soldier in the u.k., the recent attack with the lone wolf in canada. if you think about that, the fbi has been doing a good job in identifying those persons predisposed towards that activity, introducing an undercover agent, trying to score the plot is trying to thwart the plot before it trying totive to -- thwart the plot before becomes active. >> is the type to islam -- if this had been a non-muslim person, it may have been just a

local news story, but the fact that he was holding up an islamic flag made it a global news story. do you see that disparity? >> there is that component to the next that would have to be evaluated by the forensic psychologists that examine his motives. lone wolves have been around for a long period of time. you can think of serum on hur -- you can think of sirhan si rhan, kuchar rfk, and even of hinckley, who shot ronald reagan. >> i guess there is no way to put it but as an act of terror. what do you think of australia's groups?larger extremist they don't seem to have a funnel into isis, but other extremist groups? >> they have been worried about

this kind of activity for some time and lets face it, australia along with the u.k. and canada, has been helping the u.s. with counterterrorism mission, and the australian security service is one of the finest in the world. if you want back the clock 24 hours before the attack, the australian federal police were sitting around wondering when we were going to get it. >> as you have pointed out, we've seen the lone wolf attacks going back decades. how are we doing collectively fighting against terror? how are we doing in the fight isis and what was formerly al qaeda? >> for the most part we are wearing those battles in afghanistan and iraq and locations where we are taking the fight to the enemy. but if you look at the long will threat in general, there are so many soft targets. look around new york city and

just kick your venues for these attacks to take place. for the most part, the nypd counterterrorism division and ei new york has done a great job thwarting plots before they unfold. you will never be able to eliminate the software in threat. -- soft target threat. an intelligence perspective you need to identify these folks predisposed towards this activity, and therein lies the rub. that is the challenge. >> that is the modern challenge for sure. thanks for joining us. amazon and walmart to get out. -- duke it out.

>> we want you to know that

bloomberg is the only business news service being offered on amazon fire tv. if you missed any of our enemies, you can watch them on apple tv. any of our interviews, you can watch them on apple tv. stocks falling after the worst week in more than two years for the s&p 500. take a look at the chart here. we were up 120 points this morning and then we took a huge and dies in 30 minutes -- huge dive in 30 minutes. we bottomed out right around noon. the dow jones industrial average -- the dow jones was up 120 points and then fell to a loss in 30 minutes. 17,188 is the level. as we mentioned this morning on "in the loop with betty liu," strongly affected by moves in apple.

importantly,e most though tom keene may disagree and interject that the ruble is important -- new york crude is down 3%. $56.07 a barrel. amazing to watch the cascading prices for oil, regardless of where you look. here you see new york coming down well below $60 a barrel. here and now falling even further today at $55.99. the national association of homebuilders, wells fargo builder sentiment index, lifted 257, up one point from 58 in november. sales conditions good rather than poor. the view of current sales conditions decline slightly. better than a stick in the eye, but not getting any better from

there. adrian peterson and the nfl players association are challenging and arbitration decision upholding his indefinite suspension. the suspension came after peterson issued a no contest plea to reckless assault. he was accused of striking his four-year-old son with a switch. lawyers for the player and the associations in a filing in the federal court in minnesota, peterson suffers irreparable harm each day that the suspension is in effect. a group led by the british firm bc partners has agreed to buy petsmart good the deal is valued at $8.3 billion. they beat out kkr and leon black. petsmart has been hurt by competition from amazon as well as other retailers. it is the busiest mailing day of the year. the postal service says it will handle 640 million packages, letters, and cards today, ups says it will be the busiest day

in its entire history. the company is estimating that 585 million packages will flow through its facility. ups says it is ready for the big surge after failing to deliver thousands of packages last year from disappointing, doubtless, countless children. as we enter the home stretch to christmas, retailer discounting is getting more cutthroat than ever. at the forefront, likely for parents from amazon, whose toy prices are nearly 5% below those of walmarts. julie hyman has more. bloomberg intelligence has been tracking toy prices throughout the holiday for the past week amazon getting more aggressive. >> amazon took leadership in the last week. every wednesday they are looking at a basket of different toys online. not in stores, online, important to distinguish. over the past several weeks, amazon and walmart have been a

good -- have been an active this is the stuff that amazon sells itself, not including third party sellers. thann is 4.5% cheaper walmart if you look at that basket of toys good what we have seen over the rest of the holiday season. walmart still has price leadership versus a lot of its competitors. it is cheaper than target and kmart, particularly toys 'r' us, which tends to be at the top of the toy pricing scale. amazon has come out during this last stretch to christmas trying to undercut walmart. >> toys 'r' us is more of a premium player as far as pricing strategy is concerned? >> it seems to be. toys 'r' us has been more troubled -- the other retailers do lots of other stuff. toys 'r' us is sort of the last pure play toy retailer of its size. it is also privately held.

parents still go to toys "r" us for the whole experience. >> kids love to go to toys "r" us. they may not all love to go to walmart. don't love toinly go to amazon because you can't really do that. where is amazon getting the most aggressive? >> you'll like this -- video games, matt. this is your area. if you look at all of the areas, this is where amazon is the cheapest. walmart is more expensive than amazon, including an excluding .hird-party sellers walmart is still cheaper than all the other guys -- target, kmart, toys 'r' us. but that is the area amazon has been focusing on. >> one of the having trouble keeping in stock this year --what are they having trouble keeping in stock this year? >> a broad swath of stuff.

i tried to get you the snow globe elsa doll. >> and you failed. have you looked in other outlets? surely there is a snow globe elsa doll out there. >> snow glow. --get is running the highest target.com is out of stock. >> we will keep back in touch with you as far as the hottest toys, the new elmo. does that date me? >> no, elmo's still hot. anjulie will be back with "on the markets" update and president obama's relationship with his own party. ♪

>> meanwhile, more reaction

coming in on the release of the senate report on the cia interrogation program. arizona senator john mccain spoke with charlie rose. somebodyou waterboard 183 times, is that a way to really get useful information? there is a lot of back and forth as to whether -- there are allegations that we found out about osama bin ladin and then there is other evidence that says we found out that information before they employ f -- eit's. it is not about interrogation and what they got, not about the nature of our enemy. it is about us and what kind of country we were, what we will be . >> you can see the entire interview with john mccain tonight on "charlie rose" at 7:00 p.m. and 10:00 p.m. eastern.

and al hunt speaks to senator tim kaine. he has been the driving force behind the congressional authorization for the war state. islamic president obama's relationship or lack thereof with congressional republicans has long been the dominant story out of washington. but what about his own party? the last week, cracks have laid bare in the unified democratic front, something with major implications for the president'2015 agenda. phil mattingly joins me with more on the story. >> in the last week, as you noted, the splits in the party have been laid bare in ways i don't think anybody expected to see. these have existed for a long period of time. the democrats have been able to paper over them as long as they held the majority in the senate. after the midterm sweet, not so much anymore. president obama has laid out a

series of issues where he thinks he can reach agreement with republicans and that includes tax reform, infrastructure spending, and a trade deals. these things will require some democratic help if he wants them to move forward but they are problem areas. trade deals have major, major democratic opposition that the president will need to overcome. and do other things he would have to trade to make deals on the other areas. in the past the white house has been willing to put up entitlement reform as a possibility. democrats feel silly -- democrats fiercely opposed to that. also the possibility that there will be spending bills and things of that nature. as long as the white house puts that on the table they will have problems with the democratic caucus, matt. >> no shortage of areas where the president disagrees with the democrats in congress. we shouldn't lose sight of the fact that the president is a democrat himself. how much do those matter? >> the president, if you wants

to block what the unified republican congress will be sending his way, needs help from the democrats. that is where the frustration from democrats on the hill comes from, that they don't feel that the white house pays enough attention to them, and that they do matter. if you listened to nancy pelosi last week, her key point is that house democrats have leverage and can create problems for house republicans. the white house can use that to their advantage or they can spurn it. that is the key thing people will need to watch for when congress comes back in january. >> she is the minority leader and out. democrats have been relegated to relegated tohat -- the minority. basically not matter anymore? >> if senate democrats feel often work with senate republicans, giving them the 60-vote social they need, or if the white house decides they can work with john boehner and mitch mcconnell and those who move over. that is why you see a democratic

front on the hill pushing back against where the white house is going on this. it regrets are known to peel off and help republicans could historic -- democrats are known to peel off and help republicans. historically it is something they are known to do. the hour.tes past bloomberg is "on the markets." here is julie hyman. >> let's look at where stocks are trading. we started the day higher, particularly for the dow, and then off on all major averages. the s&p down about half a percent. oil continues its slide. energy stocks have been doing a little bit better today. take a look at riverbed technology. shares of the networking comedy are surging after agreeing to be acquired for 3.2 billion dollars. hiredmpany said it had

advisers to review strategic alternatives. ♪

>> welcome back to "bottom line ." i am matt miller come in for mark crumpton. time for the commodities report. su keenan is in the newsroom. >> it started as a rebound for energy but the turnaround was short-lived. looking at almost the low of the session, down about two dollars. the story here is a lot of news, and again, and overall dynamic has been changed. the latest news behind the drop is that opec is standing strong

cutts decision not to output, according to the united arab emirates. even if prices fall as low as $40 a barrel, the uae minister says the oil trouble not cause opec to make a move -- oil drop will not cause opec to make a move. at this point it will not be another meeting that would address output or potential cuts for at least three more months. ulls did not see this coming. gold is heading in the same direction, at least for now. longest slump in five weeks on concerns the fed is coming close to raising interest rates. this is all about the meeting by fed policymakers and one strategist one at that a lot of investors are waiting on the

sidelines until they get a clearer picture of what the fed is going to do. >> tough time for the oil bulls you talk to. >> a lot of the funds must've gotten hurt because the data shows that a lot of speculators added to their bullish bets taking the selloff was over, and you can check out the chart, especially in the past month, that has proved them wrong. all about the timing, michael lynch says, and he says it is normally difficult to get that right, especially so here. gas prices around the country are dropping to the lowest october 10 -- october 2009. the average is $2.56. some gasoline bulls are starting to get to the drop will even out. 0 >> su keenan with the "commodities report." another day, another deadline with obamacare. americans have until midnight to sign up if they want coverage january 1.

healthcare.gov appears to be working fine, as planned. it iscook has the latest last year's launch disaster a distant memory now? is adon't know if it complete distant memory, but things are working much better this time around as we have obamacare 2.0. the president himself in a radio interview with ryan seacrest this morning said that the website was working "flawlessly." itbe that is a stretch, but is certainly working better than last year. longer than normal weight times at call centers with 14,000 operators standing by waiting for calls. this is not the final deadline for enrolling for 2015, but the divide to have coverage effective on january 1 -- the first few weeks we have not had any major problems since the iod opened on the 15th. as of december 5, aged just reported that enrollment for this year standard 1.4 million , and people are

doing their plans, 52%. plans,le renewing their 52%. that matters, because people who shop around, they come back and look for a new plant are likely to find the same coverage for cheaper prices. but they have to shop around. if they don't, they could get a writ surprise in january when they are when all, when the government does it for them. president has a target for 1.9 -- 9.1 million for 2015. -- it shouldn't be a big problem, according to outside groups. people sign up last year, significant number will not do anything this year. they will come right back onto the roles. how many new people get added at the same time? the cbo projection is that it could be 13 million.

it seems that 9.1 is a low bar according to outside analysts. the president is out there selling. he was on "the colber report," he was with ryan seacrest this money, and those appearances to make a difference. >> ryan seacrest? it helps to talk to ryan seacrest? >> he was singing. he wasn't singing, ryan seacrest was singing. painful to listen to. >> something i want to see. i want to talk about the numbers the gop has been using to take aim at obamacare. is it going to be better next year? will this take mo away from them -- ammo away from them? >> first of all, you know the attacks are coming. if it is functioning better, fewer defections on the democratic side.

>> got it. peter cook, thanks for that update. and -- a new digital health tech startup says more screen time, not less, can improve your health. it can reduce health care costs. omada health is pioneering a category of medicine: digital therapeutics -- called digital therapeutics. thanks for joining us on "bottom what your company does. what is digital therapeutics? >> digital therapeutics is the idea that medicine in the past was conducted in a face-to-face setting. on the web and social and mobile on the way we can create digital expenses is allowing us to be done digitally. we take proven lifestyle and behavioral medicine interventions from face-to-face to digital. that is what we do. >> this could help me -- well, i don't smoke, but if i did, it

could help me quit and eat healthier, which i don't do. is that the idea -- lose weight, quit smoking? help you withn that, and if you want a free pass to our program, let me know . our program helps people with high risk of type two diabetes lose weight and make lifestyle changes over the course of 16 weeks and it is conducted entirely digitally. iphone or ipad and this will actually work? is that the case? >> that is the idea. it can help people proven at risk for type two. if you help them in a high-tech our program is digital, a small group environment, where you are paired with others like you and you see how others are doing and we get android and iphone apps and we have a whole bunch of things to make you successful. >> every time i want a delicious

cherry coke at lunch, you suggest something that won't give me diabetes? >> the idea is that that moment you want that delicious cherry coke, you think of your health coach and your groups going on with you and maybe you will get a water instead of something better for you. , marky smart man andreessen, is a big backer of you guys. what is the future of this company? what does he see there as far as growth is concerned? >> you know, i think the interesting bit is what is happening from the company landscape is that you get folks like me with tech and health care backgrounds will bring companies. i studied neuroscience and i worked at google for a well and went to harvard medical school. my passion has always been tech plus health care. i think andreessen horowitz saw a consumer grade, rich product and experience, but to an enterprise customer set with a unique business well behind it

that got them excited and that is what led them to pull the trigger on the deal. >> $23 million? what's next? >> next for us is working with customers. we have an innovative business model and that we only charge our employer and health plan customers if we are successful .ith members because of that model, we have had a lot of demand coming in and it is just scale, scale, scale. with harvard med school and you are a neuroscientist with an nba paper you have competition out there -- but you'd have competition out there. what are the barriers? >> we do have competition. forbiggest barrier is entrepreneurs and companies like myself is figuring out health care. it is incredibly complex. but so far, so good. we want competition. this is a space where there is a lot of people at me. one third of the adult

population has prediabetes, the latest stats from the cdc. let's have a lot of people take a bite. >> i wonder about results. how can you prove that your programs give people the results they want in order to pay money up front and center for your courses -- sign up for your courses? >> the first is in the world of behavioral medicine. there are a lot of published studies that show you what you need to achieve from the results standpoint, and then because of the element in our program like the digital scale, the cell phone chip, we can determine if people are successful and show the results in a very transparent and authentic way to our enterprise partners. >> diabetes is obviously a huge and growing problem. i am certainly at risk for it. but the weight loss thing is where i guess you will make the big money wil. >> type 2 diabetes is correlated to being overweight but it is

not the only thing good genetics comes into play as well. as a country, if we are to avoid the stats the cdc put out, 40% of adults of finding out at some point in their life that they are thank you, there needs to be weight loss and lifestyle intervention programs. >> i'm just saying that if your marketing materials show that i lost 10 pounds in weeks with this outcome everyone will sign up. >> it's fascinating, what happens when we work with a self-interested employer is that employees who go through a program and become successful rave about it and tell their colleagues and they get colleagues to sign up. >> thanks very much. sean duffy, cofounder and ceo of omada health, under a scientist with an m -- a neuroscientist with an mba in silicon valley. making the world a better place. the worst-performing stock in são paulo trading. you can probably guess what it is, but i will keep it a secret. ♪

>> welcome back. this is "bottom line" on bloomberg television and streaming on your tablet, phone, bloomberg.com. it is time for today's "latin american report." brazil's real sold to a nine-year low as the largest economy unexpectedly contracted in october. that is contribute into concern that dilma rousseff will struggle to revive growth. the seasonally adjusted economic index, proxy for gross domestic product, fill a little over a quarter of a percent in october. shares of petrobras fell for the sixth straight trading session, after it delayed its earnings report due to a corruption scandal. petrobras is facing criminal and regulatory investigations in brazil and in the u.s.

the class-action lawsuit in the u.s., crude oil price planting, and surging borrowing costs is a whole lot. that is your latin american report for monday. coming up, a bloomberg first interview with the pragmatist or of haiti on the political turmoil going on in his country -- by minister of haiti on in his country.

the ruble slid past 60 for

the first time, tumbling for the most since 1998. willingness to defend its currency is being put to the test as an oil slump pushes the economy towards a recession. can russia recover and will be central bank intervened? "street smart" tackles that at the top of the hour. trish regan has a preview. >> the sanctions did not have the effect that oil did. as soon as oil started plummeting, we saw a real decline in the ruble. the central bank has been trying to intervene. they haven't really been able to get a hold on it. you now have the 10-year at about 13% for the yield on russian bonds. >> the question is, does any of that really matter to vladimir putin? >> well, it could, right? -- rather,ncertainty economic uncertainty breeds political uncertainty.

you would think that at some point this would start to matter to him. if he tries to present himself on the international stage, things like their currency are critical. fear is that you default on debt, that is something that a world leader would not want. theoretically, it should matter. nonetheless, we've seen this increase in his popularity ever since the ukraine crisis broke out. we will talk about the future of russia and whether or not you should be investing at 3:00 p.m. the head of eastern europe at great on capital management, and "foreignst at policy" an editor at the institute of modern russia. >> i will tune in for that. >> of course you will. >> and i will join you. political turmoil has rocked haiti this week. growing tension over the elections forced the prime and mr. to step down.

-- prime minister just about. stephanie ruhle has the first interview since announcing his resignation. --prime minister lamothe actually, i think we have a bit of a disconnect. just five days ago i was in haiti. i spent the week trying to figure out what haiti looks like five years after the earthquake. january 12 oh mark the 500 year anniversary. the country lost 200,000 people. since then they have received $5.5 billion worth of a pit one of the things they are trying to do is attract foreign investment and but when you have gotten $5.5 billion worth of aid you should be able to see it on the ground. i saw copies like heineken, tablet makers, hane's producing there. is it making a difference? we can to see $5.5 billion worth of ai -- we can't see five one $5 billion worth of eight.

there is not enough running water. the prime minister stepping down and i will be speaking to him in a moment.

>> get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and bloomberg.com. that does it for this edition of "bottom line" mark will be back tomorrow. "on the markets" is up next. is 56 past hour and that does indeed mean it is "on the markets." i am julie hyman. we have continued declines across the board. it has been holding steady for a couple of hours. the dow and the s&p is down four/10 of 1%. if you look at the groups in the s&p that are getting the brunt of the selling today. we are seeing that it is not the

energy sector is necessarily better the biggest drag, even though we are seeing oil prices below $56 a barrel. but utilities, financials, health care, and energy was higher earlier and now it is lower by half of 1%. for more on the markets as we look ahead to the fed's policy statement, i'm joined by stocks editor mike reagan. we were feeling pretty good going into the end of the year. and yet, something seems to have happened. looks like a lot of it has to do with oil prices. >> it is a difficult thing for investors wrap their head around. thought that oil prices were good for the economy and good for the consumer. this time it is a little different, the price drop being so sharp, so dramatic in such a short period of time. prices have been cut in half in the past six months, and bleeding into the credit markets, high yield the debt widening out.

a lot of people over and about some sort of credit event you an energy company in the u.s. or you would start worrying about russia venezuelan government, and the ripple effects of it throughout the world. the oil market is waiting for the price to find a bottom could if it does in the near term, before it makes up its mind, it looked like energy stocks stabilize. it looks like the market was going to go higher for a little bit. to the drop ink the market between september and october, it was like a one-month drop, and then the rebound was just as quick. i think anything physically could happen with this market at this point. everyone was waiting for what the fed says. >> people kept mentioning the loss phenomenon of tax selling, or the fund managers rejigger their portfolios. are you hearing folks talk about that? read iteverything i've

happens in the middle of the month. this appears to be a little bit heavier than when you would expect. there are so many variables going on right now. with the fed coming out on thursday, a lot of people are wondering if will find its way into the discussion. >> one would think it would have to. >> inflation expectations have gone through the floor. does the fed have to consider the interception of the credit and energy markets now when considering policy for next year? a lot of people are waiting for that statement >. >> if you look at people positioning themselves ahead of the fed, it would be difficult to see why selling -- in other words, what with the fed say that would be very negative for equities? >> leading up to this meeting, i think the general consensus is the considerable time language in the fed, the promise to keep rates low for considerable time.

a lot of people thought that this was the meeting were that would go away. appreciatean, it. "street smart" is up next. >> welcome to the most important hour of the session. stocks dropping along with oil despite strong economic data and corporate dealmaking. is pushingnd oil russia closer to recession. "street smart" starts now. first, before we get to russia, here's a look at the top stories we are following -- sydney's hostage crisis is over. please storming a