report." now, maria bartiromo. >> welcome to the wall stre streetjournal report. i'm maria bartiromo. why the next year could be a big one for the market and how you should invest. it's the height of the holiday movie season. i'll speak to movie mogul harvey winestein about taking a chance on the fabulous marilyn monroe. the secrets behind the windows. the business of those amazing holiday displays at macy's and saks fifth avenue and the people who design them. the "wall street journal report" begins right now. >> this is america's number one financial news program, the

"wall street journal report." now, maria bartiromo. >> here's a look at what's making news as we head into a new week on wall street. an important move to help stabilize europe's economy and the financial system this week. the european central bank made $639 billion available for european banks. 523 of them took advantage of the 1% interest rate and three-year term offered. the goal: to ensure liquidity and make sure banks have enough cash to keep operating. the banks could use the money to lend to businesses and consumers and collect a higher interest rate than they're paying or to protect themselves from a sovereign debt exposure issue. a winning streak through thursday on higher than expected housing news. the dow rising 333 points on tuesday, closing above 1,000. a surprising surge in housing starts. they jumped more than 9% last

month to an average rate of 689,000. it's likely due to the strong rental market. mortgage rates keep on dropping. the average rate on the 30-year fixed mortgage fell to a record low of 3.91% this week, the third time this year rates have hit new lows. and the surprise earnings myth. oracle fell short of expectations for the first time in a decade. nike came in ahead of analysts' expectations. no doubt about it, my next guess is bullish on american inequitie inequities. ceo of richard bernstein advisers. let's start with the economy and sort of the backdrop. we are starting to see some signs of life. initial jobless claims continue to fall. housing numbers. i was shocked to see the housing numbers actually start to show a

little improvement. have we turned a corner? >> i think we have, maria, and i think to some extent people in the united states get too wrapped up on things going on here in the united states, and you have to remember it's not just the united states, it's the united states versus the world. we're starting to come out of our funk. slowly, but we're coming out of our funk. the rest of the world is just going into theirs. >> europe seems to dictate what happens in the u.s. do you think europe settles down in 2012? how does this play out? >> i think they will. it's not going to be a straight line. if there's anything 2011 taught us, nothing moves in a straight line. 2012 will be up and down, up and down. i think they will come to a solution. i honestly can't tell you what that would be, i wish i could, but it will move from the headlines. and i think what will come to the headlines will be emerging markets, and i think there will be more problems in the emerging markets in 2012. >> why? what do you mean?

>> i think people thought the credit bubble was just a u.s. ooernt. i think people think it was the use use housing market and it's a big bubble. i think people realize, gee, you're a creditenciary markets. guess what's happening? united states got in trouble first, then europe, and our guess is that merger markets will be next. >> the merger makts have been on this massive ride. >> what started as a very healthy story 10, 11, 12. massive stimulus from massive credit bubbles. eve seen mixed numbers. the american consume an important part of the retail. do you think we're doing reasonably well? >> it hard to say we're doing

well. jobless claims, in other words, people start finding jobs or don't get laid off, you'll find cyclical stocks continue to improve. >> you're optimistic because it is to reach those. i think so, 2012, the united states will femur have come down. the ten-year keynote is below 2%. it's not problems in the united states driving that interest rate down, it's problems outside the united states. people are rushing to buy treasury notes because the u.s. treasury note still the highest quality asset in the world. there are problems, but they're. lower gasoline prices is what's

helping our kmel, because the rest of the rorld if starts now drop valuable ration of the united states right now is exactly opposite. we're exactly opposite where we were in terms of valuations 10 or 20 years achlgo. the merging market is relative to the united states market 10 or 20 years ago. >> what do you want to buy or own in this environment? >> our particular favorite is small cap stocks. you want to buy large cap multiple stocks, but to me you're kind of leading with your chin. you're exposing yourself to all the problems that will be in the world over the next 12 to 18 months. we want to expose our portfolios to the domestic u.s. economy. how do you do that? smaller capitalization stocks. >> what worries you?

any worries on the horizon? >> there's lots of things that could go wrong. you could have the market implode. that would drive the markets down tremendously. i think if we take a long enough time rise, we look out 12 to 18 months, i think the united states could do very well. up next on the "wall street journal report." hollywood mogul harvey weinstein. taking on silent cinema marilyn and margaret. >> i have done a battle every single day of my life, and many men have underestimated me before.

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a scene from my week with marilyn, a new film from the weinstein company. christmas week was a big one for the movie industry with a few main films opening and the annual award season just around the corner. my guest, movie mogul harvey weinstein. great to see you again. >> good to see you, maria. >> 12 emmy nominations this year. how are you feeling at this moment? >> hollywood movies for me just got better. the artists got nominated for best picture of golden gloves. "maril "marilyn" got nominated for golden gloves. it was more than any of the two big movies and marilyn got nominated for three. i will tell you, over holiday seasons where there are a bunch of dark movies, the artists in "marilyn" are upbeat and fun and you walk out of the theatre tap

dancing. >> what does this do for the company, for you, for looking at new projects when you get that kind of respect and acknowledgment? >> my company is your audience, the kind of people who are interested in our country, the economics of our country -- >> the smart audience. >> we make movies for smart people. sometimes that's a losing proposition. but when the award season happens and you get accreditation, it drives people to see the theatre -- it drives people to go to the movie theatre. so this is an important time. and christmas normally is a david versus goliath business situation, and these awards help turn davids, you know, into stronger anthonys. >> you've got to be feeling goold at the end of the year here with what you're talking about. let me ask you about the artist, "the silent film." this is really interesting.

we haven't seen a silent film in decades. what made do you it and why a silent film now? >> i watch your show, maria. it's usually sunday mornings right after "meet the press." i'm in my pajamas. you guys are usually talking about risk in industry. here's a risk in industry. a friend of mine in paris puts up $12 million to make a silent movie. this kid rolled the dice on the director that i loved. he made this little spy movie in france. nobody saw it in america, nobody saw it anywhere. i happened to like it. they called me. i looked at a rough cut of this film, because it is a wonderful tribute to movies. it was all shot in los angeles with an american cast and french lead and argentinian co-lead. this is all done in america.

this is absolutely, in my career, this is the craziest gamble of all time. >> obviously you're getting a response already. >> it's a funny story on the biz side. when we bought the movie, and i said, it's black and white. they said, it's okay, you won the oscar last year for king's speech. . sdplz they said, i thinkie. i screamed at the board of directors and they have an unlighted group and wi. >> whaet the good thing about turning iconic figures like that into a character? >> when you have merle streep, you know, you don't even turn them into it. it's like watching an alchemist

because she just becomes margaret thatcher. then you can do anything. the fair treatment of her, political treatment of her. marilyn goes from 40 to 85. so you watch meryl play every different age and each age has a walk or movement to it. we do all the politics. i'm thinking about entering as a republican in a race because she said, thank god for harvey weinstein in the post. all these conservatives, bill. >> let me tell you how many times i voted republican. >> i voted republican for giuliani, governor petacki.

in my life, when a candidate is good, i don't care what they are. >> it's just called leadership. >> that's what i think tharg ret thatc thatcher was like. she turned out to be right about so many things. i would see her and detest her, and it was like medicine for bad school kids. and so much of what's going on in europe with the euro, i mean, if you read her speeches, it's uncannily scary how she predicted this cries. you'll laugh, you'll cry, rir lynn is kreet and the.

>> i thought i had the best job. i think you have the best job. >> i think i do. >> thank you for coming here, have great holidays, and thank you for bringing up the plercast every time. window shopping an interactive affair. the designers behind the retail industry's most ♪

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at christmastime san interactive experience. macy's herald square. first turned-out holiday-theeme windows since 1864. at the corner of 36th and broadway reaches the feet of 900 pedestrians per minute. the flagship store opens across the street to christmas trees. 135,000 people stroll the window by, and paul orchevsky and senior head of merchandising at saks fifth avenue. paul, tell me a little bit about the history of macy's and the store behind the windows this year. how long did the process take to put the windows together? are planning the holiday windows a full-time job and do you start right after the holiday ends?

>> well, it does take us a full year to do it. we live in christmas all year long, and at the same time, we still have to do windows every two weeks, about all year long with our fashion windows. we get inspired, and we start hitting the drawing boards in january or february, and we start making models in early spring, and we start building into summer, and we're painting the floors right until we unveil in september. >> sachs has brought to life a family snr its win doed. what will say this it talks about a little curious little girl and she stumbled on.

they are actually making bubbles with these kind of unusual machines that below the bubbles off the front of the store, and then as she ventures through the store, she goes through and encounters some shoppers and eventually make her way up to the roof of the store where kids are throwing things off the roof of the store. sgrz and these are on auction? >> they are a auction, with the proceeds going to st. jude's. that's a great way to give a little do dag, an he will ex der mcqueen months is still in. >> it's not one that is up for auction, but there are fantastic pieces offered for auction right now. >> macy's had three-d panels and interactive elements.

>> one thing i've tried to do in the last year since i overtook the winners is the part of it. pushing technology is almost something that we always try. por people to toolly have sper net windows. you were able to activate music, lights, animal where we don't need it entlauhralls you with t 3-d story. you can come up and design your own ornament, see it larger than life and they'll ping it back to your iphone or cell phone. >> larry, what kind of response have you seen? >> quite nice. we get to walk through the

crowds of devery day, and every the streets get fuller and they start in their tracks. >> people start up loading and really gray. this is the whole overall retail bottom line for macy's. because it's bringing in the kmurt. >> not so much as a new york. . norks no new york city is the windows capital of the world and shopping is part of it. i think it's our job to entertain them as well. part of what's so great about our windows this year is we are supporting and bringing awareness to the make a wish foundation as well. our windows are really touching people in a way about showing how we -- the make a wish

foundation is granting wishes to children in need, and people are really walking away from our windows being touched. it's really hitting that emotional element of vuriewers. people aren't just coming and being entertained, but they're being moved and getting into the spirit of giving, and i think that's really putting people in the mood for christmas. >> harry paul, thank you for being on the program. we appreciate your time. merry christmas, happy new year. have a great holiday. we'll take a look at the news this upcoming week that will have an impact. we have another very special guest. we'll take a break. have a look at the stock market end of week i have copd. if you have it, you know how hard it can be to breathe and what that feels like. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms...

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and video chat with up to 9 of your friends with the galaxy nexus by samsung, or get the samsung stratosphere, and for a limited time, get twice the data for the same low price. verizon. for more on our show and our guests, check out the web site. i hope you'll follow me on twitter and google plus. look for @maria bartiromo. monday is december 26. all markets are closed in observance of the christmas holiday. tuesday, the s&p home price index will be out, tracking the real estate market in 20 cities across the country. and the latest numbers on consumer confidence also out on

tuesday. finally, today, as a tradition, i bring to you the maltese puppy who wants to wish you a happy holiday. thank you, bella. thank you for joining me this week. looking at the road that was and the road that will be. the economy ahead. the "wall street journal report," where wall street meets main street. have a good [ male announcer ] this december, we're thanking our customers