>> to our viewers here in the united states and for those of world,ining us around the welcome. we have full coverage of the stocks and stories making too manied.

mia is watching equities and on the holiday shortened trading week. peter cook has the latest etails on newest government rules coming for unmanned aerial drones.known as and julie highman tells us about sectors, n the retail stocks, that is. get to those stories and more. top stories the we're following at this hour. fewer americans bought homes a the slowest pace in six months. the national association of existing aid sales of homes fell 6.1%. over the last 12 month, sales risen 2.1%. a recent decline in mortgage buyerss yet to lure more into the market. he latest from the equities markets on this monday. the s&p 500 is up fractionally. the dow is up over half a 17,903. at and the nasdaq composite index

a quarter of aup percent at 4777. saudi arabia and the united arab emrates are pledging not to cut to prop up on prices. they blame nonopec producers for them toly glut and urge cut back. the saudi oil ministry says he's onfident prices will rebound along with global economic growth. we spoke with the ceo of aterpillar earlier on bloomberg. >> we're talking to our customers every day. they're sitting tight right now. we're going to take a look in january and see what happens. we'll feel it. feel $55 after having some really long years around $100. no question about it. >> and the latest on crude oil at this hour. 2.82%.wn trading at 55.52. alstom pled guilty and will play

772 million in the investigation. the case involves bribes paid to indonesiacontracts in and other nations. it's the largest penalty paid to justice department under the far corrupt practices act. alstom's corruption scheme was sustained over several continents. several it was astounding at the breadth, brazenness, and worldwide consequences. resolution we're announcing today will send an unmistakable companies around the world that this department of relentless in e rooting out and punishing corruption to the fullest extent of the law. >> if you need to reach someone in coca-cola's headquarters in atlanta, you can forget a voice mail. maker gest soft drink shut down the office voice mail service. this ains began earlier month.

outgoing messages tell callers use an alternative method to contact the person. that's a look at the top stories following at this hour. shoppers are likely to find investors looking for bargain stocks will have a tougher time. julie highman is here with a valuations.il first of all, the backdrop for the retail so far in this holiday season. the numbers look like? >> the interesting thing about season is the holiday that there are not many of them. there were a lot of estimates out of the black friday weekend if you recall. the national retail federation fallen said sales had 11%. shopper track estimates we're numbers for her this past saturday than we did for black friday. so that's something interesting to take into account. we won't are the actual commerce department numbers on until january 14. and of course any comments that the retailers will give us in the meantime as well. of estimates, the general

feeling is that we will see an increase in overall retail sales but not all individual retailers will be winners coming out of this season. stocks seen the retail evaluations climb. let's compare that to the s&p 500. > we were just looking at the s&p 500 retail index. the price-to-earnings basis g -- on a trailing for that is 26.7 near the than a decade. a little lower than last year. expensive.ely 26.7 compares to 18 for the s&p 500. more expensive on that basis. retailers as a group underperformed the s&p 500 for the year to date. highest and the lowest p/e's? >> if you look at some of the stocks on ive retail this basis, you have tractor supply, a sort of a diy obviously the tractors as well. l arget, family dollar, brands, and lowe's on that list.

if you look at the lowest in gamestop atluations, the bottom, macy's, gap, kohl's, bed bath and beyond. i have seen some commentary that analysts say it's worth it to pay up for some of them, particularly perhaps the improvement region. continue toxpect to perform well as one of the most avored stocks by analysts and that's one of those towards the bottom in terms of where we're eeing the price-to-earnings ratio. >> the home improvement, the fortune is tied to the housing as et and how that does well. >> mixed numbers coming out of the housing market. nomura initiated the coverage of the retailers liking the smaller that don't like the market penetration. tractor supply as i mentioned as liquidators over the larger ones. at ulie himan with a look retail.

thank you so much. continues, line" the russian economic woes, the crashes of the ruble may mirror 1998, but look at the significant differences as well. dan morris will join us when we come back.

>> in september and expect the fed is going to exit slowly and gradually. that exit is quite pricey. if there was a start in april, and highly g unlikely. beyond september it would be a surprise but highly unlikely. what the fed is going to do is going to be surprising. roubini.was nouriel speaking with my colleague about the federal reserve's rules in 2015. you can find bloomberg on television, streaming on your tablet and

bloomberg.com. russia's foreign finance the country is heading for a full fledged as the bank is pledged $531 million to support ational bank trust, one of russia's top 15 lenders by retail savings. dan morris is a global at tiaa creft, a firm with $40ices million in assets. welcome back to "bottom line," to see you. the ruble has depreciated 38% against the dollar since june. are we witnessing a repeat of 1998 when the russian parliament defaulted on the debt or is the deal y better prepared to with this this time around. >> the biggest one is the on oil prices putting pressures on revenues and worries about companies and pay back being able to their debt. that's the same this time. what's different is russia is in

a much better fiscal position. they don't need to borrow abroad their trade deficit. running a small budget deficit. a much more solid footing than then. it doesn't mean it will be easy for them, they're going to have a severe recession next year. the drop you're seeing in the ruble, are you concerned it could be the start of a contagion? >> we don't think so. another big difference that we ee in terms of the emerging market landscape and in 1998, a much more mature and robust then.se than we had russia doesn't make up much of the index and it doesn't seem to particular to what's going on to russia if you take into account a lot of this is happening because of the sanctions. of the sanctions, russia can't turn to the west for funding. what is this going to mean for businesses and how might potential investors react to this? it will be esses quite a big struggle. we're relatively cautious on the market. going into recession could be quite severe. don't know how it will play out.

will manage that. maybe more opportunities on the fixed income side, however, you now have quite high yields. if you don't think broadly speaking, there's going to be an defaults. >> dan, we've been talking on bloomberg for the past several oil about the falling prices. it has made matters worse in it's also impacting the currency as well helping that slide in the ruble. contraction is expected for the russian economy? >> even the government itself is a 4% to 5% recession next year. that's quite severe. you're of how much going be able to manage the situation. help from the chinese. here are indications you could get funding there. however you look at it, they're forecasting the budget on a much we'll see.price as that's going to take adjustment no matter what. >> you know the press conference week, the russian president vladimir putin said russians hould brace for at least two years of this. is that realistic? in next oing to kick

year. it does depend on what happens with the oil. we think it will remain weak for while. we'll recover to next year. if that happens more quickly than expected, russia could do than expected but that's still a big unknown. >> let's switch to the euro zone. he ecd president mario draga said the bank will land $200 million in new stimulus in 11 months. is 11.5%. s that 1 trillion be enough to help? >> probably not. it will get them back to the as money had as far supply a couple of years ago. t won't be enough the point he's been making from the beginning is the monetary policy can only do so much. the governments need to more ent more reform, structure. >> what do you have in mind? a lot of people said austerity way to restructure but it doesn't work out so well in places like greece. the ukit did work out in

and in the u.s. to some degrees a well. labor market reforms talked italy, t in france, spain. and a lot of people are happy with the situation the way it is. backs down.nt you get this that we've seen in the last couple of years. analysts are saying that the u.s. is the least dirty shirt amongst the major economies. seem to be doing relatively well comparatively speaking. it enough to prevent head winds from overseas in 2015. >> the u.s. economy is well placed. we think it will continue to grow. but when you think of investment opportunities, it's not place rightthe best now. >> it's still the search for you? fort's going to be a search return and the protection of the appreciation of the dollar as well. u.s. equities have recovered. fully valued, though. better opportunities are abroad. so some people need to look at keep in they need to mind that the dollar is likely to continue to appreciation. a minute left.

we began that segment of the rabini ite of nouriel with my colleague. he was talking about the fed and they might move on interest rates. that ummer, june/july, in time frame. given the fact that unemployment is where it's at, 5.5% range. given the fact that inflation is still below the fed's threshold, will the fed move or stand pat? >> at this point, probably slightly greater probability they stay lower for longer. that's been the refrain for years. so, lowering do inflationary pressures thanks for help. hey won't seep a reason to rush. >> dan morris, tiaa cref joining us in the studio. on this e to have you year, dan. happy holidays. >> you too. under your a drone christmas tree this holiday season? sales of small unmanned aircraft are soaring prompting new worries about safety in the skies. period cook has the latest on peter, to regulate the

booming business. drones are the must-have gift year. is that correct? >> mark, i don't know if a ertain 12-year-old has asked you for a drone this holiday season, but a lot of young people out there asking for them getting them. maybe some older people as well. flying off of the shelves. alone has been selling more than 10,000 drones a month. the company has not confirmed itself. there's a good chance that someone in your family is quad copter this holiday season. as we've seen the drone sales numbere've also seen the of drone safety incidents. and the faa is really worried about this. reports almost 200 events. few recent examples, a drone structured and injured a woman at a florida antique show. helicopter flown at a tgi fridays in new york cut the photographer.s a man was arrested and an pilot reporting a flight

o new york's laguardia airport hitting a drone in september. on the conference call, the head of the faa challenging the saying it's been too soft on the drone industry. >> not very confident that we process.ery open we have a transparent and houghtful process that is very focused on how we stage integration, international space system. do it in a safe manner. on the el huerta conference call with executives of the drone industry. ther user groups joining together to launch a new safety campaign. he know before you fly is supposed to educate new users how to use their drones within faa guidelines and those guidelines include no flying above 400 feet, no flying within miles of an airport without permission. they are on a daily basis whom do gnored many of those w that the faa has

specific regulations. >> was the federal aviation administration supposed to propose new rules for drones by the year? for the faa.adline there's big businesses out there hoping to use drones in their business operations and the to be the s supposed end of this year for the faa to come out for new rules for use of drones under 55 pounds, things like amazon's delivery drone, for example. we heard from the faa administrator is they're working on getting the rules out quickly as possible. it's not a done deal yet. this is big interest in this. want to use a commercial drone today, you have to get in a special exemption from the faa. some oil and gas companies have been able to do it. alaska, moving companies, 1100 in all. here are 200 applications for businesses hoping to get in this business. the pressure is up for the faa rules out there. they fear the united states may be losing out to foreign

when it comes to the drone business. a certain 12-year-old has a better chance of getting a flying pig than a drone. drone.

up next, we go to colorado to catch up with our news reporter jennifer oldham. she's been on the move. . . . .

>> as the national football league season marches toward the playoffs, technology is taking a bigger role. editor at large cory johnson seahawks e seattle century link field to get a look that help teams plot their mid game adjustments. when russell wilson does this -- >> touchdown, seahawks.

>> the nfl is watching and so is microsoft. this season, the nfl entered the with custom e microsoft surface tablet on the sidelines. the catacombs on of century link field is when capture the images. the cameras are controlled by the nfl. image.gue takes the he teams are given the images instantly, put it on a server nd shows up down on the sideline. >> last year, crummy printouts on a printer. > evolutionary to revolutionary. >> today, coaches and players are cheering on digital transformation. >> we're base offense right now in a slot. we used paperear, looking at the pieces of paper. you only had two pictures. have uy -- he's going to him in the flat, he's going to cover him man-to-man. ith this, you uh have a lot more views. >> a bureaucratic process

negotiated by the league and the techies. here's how it works. the guy from nfl films sits here in the sidelines in the little booth. he's got a computer that he manipulates the images, captures images. he used to print them out here and hand them to the coaches. gently, it's all done sent to the surface with the players and the coaches can work their magic on the sideline. >> players come off of the field. the image taken before and after the snap. they can look at this thing. here.aded on to make the adjustments, compare it game, throw the thing in ground, rugged eyeized for nfl use. it could do.what the use of video, different camera angles. microsoft is planning for more season. >> the nfl's players and coaches giving us feedback, they want more. they want video. they want to be able to put their playbooks in it.

the game is on the line in the playing arter, you're the sap fran 49ers in the nfc championship game, you need know what do. so i think that helps a lot for me. johnson, bloomberg. >> cory johnson hanging out with russell wilson, niles. past the hour. bloomberg's "on the markets" is standing by. hi, mia. there, mark. get you caught up. more stocks are trading with the be honest.k -- let's a shortened trading week because of christmas. picture for stocks. markets gaining with the christmas green rather than the red. are close to the highs in the session. i.t. and consumer discretionary helping s&p higher. health care and energy are losing today. movers, check out amazon, the shares of the on-line retailer having the best a month following strong sales this weekend. the stock is now trading back the $300 figure. we're at $306 right now.

finish line shares are trading at the lowest level after a year. from a fter a downgrade hold to a buy. the challenges in the running category will likely remain in quarter.ng stay right there for "your bottom line" in two.

>> welcome back to the second half-hour of bottom line. for staying with us. a big loss in the music world. raspy boys british singer who belted out with a little help up from my friends ♪ ? 1969 and added "you are so beautiful" died. of an undiagnosed illnesses. he had a string of hits in the 1960s and two in the u.s. in the early 19 0s. the age of 70.

there are 2 million truck drivers on the road in the united states. drivers can log thousands of miles and up to 70 hours a eek which causes fatigue, exhaustion, and disease. according to the u.s. bureau of statistics, more than 500 truckers died on the road last year, that's more than any other occupation. may be driving even more. to better understand the

government tracks data now doesn't include transfer students. o president obama himself transferred from college. he wouldn't have counted as a graduate in the existing system. looking fortment is transfer gure out how students could be counted. and under the employment they're interested in two general categories. one is how recent graduates are doing. exactly how to define recent graduates. the second one is how you're years out. for the more recent graduates, can you make your bills onents, pay your

time? years out, they're more interested in a longer term viewpoint. established ld be in your career, a salary outcome. for more recent graduates, a yes or no answer. are you doing okay making certain payments? >> janet, throughout this year you've bottom line, helped to educate our viewevers nd the audience at large about student debt. they're graduating with more debt. for those who borrow for college? be use?t average debt >> good question. the education department doesn't haveto penalize people who to borrow a lot more from a lower income background. interested in a repayment rate. again, can you pay your bills? how are you doing paying back loans? do you have a good job that's giving you a salary to make those payments? not everybody is onboard with the ratings system. it is controversial and some say they're not going to take part, why not?

>> if the government mandates they will have to take part. they're not crazy about it. they say you may need better salaries, for e example. by in large don't want to be compared to each other and this will give and ies a lot of knowledge transparency as to comparing college a to college b. >> janet lauren. higher education for us. ou can see her reporting on bloomberg.com and on the bloomberg terminal. thank you so much. >> thank you. breaking news from s&p 500 for gas and oil companies. to the breaking newsdesk. mia? thehe s&p stance on some of global oil players. they released a statement saying they're taking various action europe's biggest oil majors as they're known all because of a dramatic the oil price.n and also what oil price outlook in fact and said that the expected to be negative and as a result

negative free cash flow in 2005, extending to 2016 given horoughly inflexible capital expenditure and high dividends credit below ower the thresholds. to companies they're going take action against include some of the biggest players in the region. confirmed the a status on bp. they placed a ratings on any of he credit watch negative implications on the company. hey placed a negative on long term ratings on bg energy holdings and placing it on watch negative as well. they've affirmed a double a ating on the total company and also put a double a on dutch shell. so just to give you a couple of are highlighting. the broader problem, of course, is when they look at where oil it can go, the expectation is you will see downward pressure, even today, looking at crude, off from 3% in the trading session.

o they had to revise to negative their outlook on some of the three biggest oil majors while affirming the credit these companies, what ially just reflects management may be doing and reducing the negative free cash cutting costs. this coming at a time when when pressure.wnward following the news over the weekend when you have saudi rabia's top oil ministers talking about how they expect an increase in the oil prices and blip we see in oil is temporary. that said, s&p is a ratings responsible for taking a view on the companies and giving them different credit the gs is saying that reduction in oil is a negative and that's why they've done what they're doing so far. >> all right, mia at the breaking news desk. mia, thank you so much. latin up next, the american report for this monday including fresh comments on the on the n president future of petrol.

bottom line continues in a moment.

>> welcome back. time for the latin america report. brazil's real rose with russia's commodities.er it offsets the costs for the largest economy. brazil's monetary council raised the long-term interest rate for the first time in a decade raising it from 5% 5.5%. and brazilian president spoke today.porters she said there's no indication glos's ceo lacks foster is, and that quote, an ethical person. the government is working a downgrade avoid for the state-owned oil company. latin american rourke for this monday. mighty staceans grow

companies. hey harvest nutritional ingredients from natural materials such as krill and has grown itself into a multimillion dollar company. recent tidal wave of up and downs, the company's ceo is storm. ing after the >> unfortunately, you know, they in china that's moved from buying in the channels main the e-commerce which created different involvement or business involvement. the second one is the krill business. some negative influx on slowing or forming a market which were two main pillars of our business. i don't think that the long-term perspective of the really changed. we have had some technology hile working on markets that's a compelling need for technology and innovation. area.pioneering in this

and i believe that in the ong-term, it will not be changed in our place. convincee you going to investors that's the case? going to regain the confidence and are we going to see a return of the revenue at year that you've been saying most years since your founding. the only way hat that we gain trust again is by performance. what we plan do to rove that 2014 was a -- was a decline year but it was also every you know, 40% year. so we hope that this next year when we bring back to grow and on that we'll regain the investor. and trust again. coming up next, a preview of what's coming up on "street smart" at the top of the hour. the latest on the potential return of ousted founder doug el

charlie.

>> welcome back. this is bloomberg television your ing on your tablet, phone, and bloomberg.com. american apparel has been buyer.hed by a it could confirm the ouster of doug charlie. it's one of the big stories we on "street smart." to him a few days ago. i spoke to him exclusively going to the weekend. thursday evening. bloomberg during my show and we had an interesting chat. basically -- he feels as though he's been taken advantage of by sander general. the hedge fund that he pledged to share through a 42% stake. and he said you know i pledged the shares and they promised to

put me back into the company of the the results investigation. well the investigation was completed and according to some of my sources at sander general, decided given the results of the investigation they would allow the board to make its own and supported the board when the board decided to terminate him. suing ing them, he's everyone. new ry much would like a take theto come in and company private. there are certain clauses that would prevent him from doing that. living here in new york on the lower east side. he down to the last 100 k, told me. $800,000 a guy making year as the ceo of the company. >> did he have anything to say general?er >> i'm going share that with you. i quote here, i gave them my life's work and they agreed to put me back in. they used the investigation to

me.e they betrayed me. they teamed up with allen, board member and worked against me. shares so i e my could come back and run the company and they robbed me. he feels very wronged here. sources at the sander general is they all want to make money in this. feel as if the investing rise -- we saw shares when dov was ousted. they feel as though you need a ceo, a kind of ceo who has e adult enthusiasm for the company. they want somebody else in charge. >> you're going to cover the on the sony hack. >> incredible. coming up.tom ridge secretary and ty

a very interesting show. more color for you on that dov charneydid with and the future. interesting to the sony hack. this goes to the question of the cybersecurity and whether the it anies should do voluntarily or whether it should be mandated by the federal government to prevent things this. >> the bottom line answer is that you need to -- no pun intended. reality is you need some both.f combination of to have some kind of involvement. but the onus is on the company networks. ecure the >> trish regan at the top of the hour. thank you so much. appreciate it. till another check of the market movers is on the other side of the break. ♪

>> the latest headlines on the top of the hour on bloomberg tablet treaming on your and on bloomberg.com. that does it for this edition of "bottom line." thank you for joining us, "on the markets" is next. see you on tuesday. ♪ >> 56 past the hour, means "on the television is markets." saini.a the float to the session high in the past 30 minutes in terms of care vers in the health states, show you what we've got. is falling.lliard

it's launched the agreement with hepatitis b ts for drug. instead express script chose the abbvie drugs. just a lot cheaper. a look at what the decision the companies and the health care industry overall as bloomberg and drew armstrong, the expert in this space. walk us through exactly the implications of this deal. >> back up a little bit here. they say, hey, you uh can get drug. rug but not that >> they use the generic ones. >> exactly. to save upposed consumers and insurers money. abbvi has a new drug for hepatitis c. one a year ago. ne of the most expensive drugs in history.

abbvie came in here and worked the deal. give it just arpel for the customers. they cut it out. like the walmarted pills. >> they say, hey, they're to play hard ball. they're a little more convenient. possibly a little more effective. money talks. let's do a deal. be let's get it done. you have gilliard erasing $20 billion in market cap earlier today and staying down. maybe says biotechnology can't just charge whatever it wants even if medicine if it's for an amazing breakthrough. 2014.t does it mean for seems to be the case. 2014 was a busy year in terms of the health care industry? 2014 has been had crazy. we've had tons of deals. has been up bigtime.

illiard itself has been up 40% over the course of the year. expecting a lot of deals next year. but we're going to see the type price pressure becoming more and more common. these guys, the pharmacy benefit express scripts are going to look at this and we think we can confessions here. we'll see them get a little more pressure on what these guys can the most important drugs in the world. >> more exclusive deals like to today?lked you know abbvie is out there trying to shop the same thing, for ore they can get gilliard, the more they get. with a all of ng the insight on the latest deal between gilliard. right there, "street smart"

is up next. ♪ >> welcome, everyone. to the big show. 60 minutes left to the close. stocks are climbing adding to a three-day rally. the s&p heading to a record high investors bet on low interest rates through the first quarter. walking through the closing bell with tony dwier, managing director. nd how they should be responding to the sony hack attack. i'll speak with the homeland ridge.ty secretary tom "street smart" starts now. the stories. orth korea is off line today according to the monitoring