you don't need ibm. ibm offers the fabled one-stop shop. again, increasingly going a la carte, something we saw with dream force, a celebration of everything that ibm is not. accused ibm as being irrelevant and not offering companies anything close to a bargain. heavy hardware, big iron, no thank you. meantime, ibm spends much of its cash free throw flow buying back stock. it's a giant cyclical company without any real growth at all. i have to tell you if warren buffett weren't in this stock, it would probably be dramatically lower. ibm's revenues have been basically flat for four years. and all that has really happened in that time is the company has shrunk its share camp from $1.28 billion to $.89 billion. and the more it goes into the cloud, the worse it can be for the whole company's margin. as for the other outright loser, it's all about management. boy, their equipment is the best in the world. the $7.6 billion equation of bucyrus, and then the purchase of era for $650 million where cat almost immediately had to write off almost the e

ibm shares have dropped more than 2.5% making it the only loser in the dow 30 in 2013 and ibm's firstloss since the financial crisis in 2008. brian, you have a buy on the stock. the sales slump, let's be clear, revenue has fallen for six straight quarters. what is going to be the solution here? if it's cloud there are a lot of players out there that are cutting prices very deeply and, in fact, ibm just lost a contract to amazon, a government contract, for $600 million. is this going to be ibm's answer? >> i think there's a lot of forces at work here. number one, emerging markets really started to slow, including china. ibm talked about it. cisco's talked about it, others. number two, federal spending im paktsds. and i think the third area is just a lot of uncertainty at customers over how to implement some new technologies including soft ware defined data center technologies. i think it's a lot of different forces have come to work. overall, i don't think i.t. spending has been great this year as well. so ibm is impacted by all those. >> we're holding out for a recovery in the emergin

ibm's virginia romedy. they cite them as hurting sales in china. hmm. is there some sort of link here, we ask? tim? >> qualcomm is kind of in hot water in china. it's not their own fault. ultimately, they are in a place where there is an investigation in qualcomm. cho enis a place where i think qualcomm, every place they have won around the world, they have won with expensive royalty stream that will go higher. in china, they won't have that. my view on smartphones is the same thing. smartphones are going that way. qualcomm is still an amazing company and a company that doesn't deserve what's happening in china to happen, but it doesn't sound like they are tears. i would say stay may not be in favor here. they're not in favor in china. there is no way to own these stocks with royalties in decline. >> look at ipm. i kind of look at this as what a retailer blames their bad sales on the weather, right? ibm certainly may have problems in china, but they've just lost a huge contract to amazon to the cia. they're also losing out on the homefront. >> that bein

two of them i'm looking at are ibm and alcoa. ibm has been pretty depressed all year.hey have a good shot at some growth. they always seem to come out of bad situations and do well over time. as far as alcoa goes, if you believe in the global growth story, and i do, i think alcoa has a lot of room to run as well. > >why have these 2 decided to not get caught up in the rally? > >alcoa was a big function of the world economy not doing well and that's starting to change right now. ibm i think is worried about their products and how they're gonna be able to fit into the future tech boom---maybe the cloud area. but they'll figure out a way. ibm has been around a long time and for good reason. > >what's your confidence level as to the strength of the economy with these 2 stocks? > >getting better and better each year---each month i should say. the economic numbers we have been seeing of late have been getting better and better. the last gdp, a nice revision to 4.1%. i think that will continue. you might have a drop in the 1st quarter of next year but i'm not too worried abou

ibm is an exception. we will tell you what he experts are saying about the strategy at big blue.fleet of private jets we will take you inside to show you what makes these planes perfect for the elite. or might not might be retiring from music, but it might be time for him to retire from the movies. his latest release, a box office flop. statistics, coming up. ♪ >> most dow components this year finished higher, but ibm was an exception despite boosting its dividend and adding nearly $20 billion to its buyback plan. .ulie hyman is with me what went wrong? >> well, investors did not get the revenue growth they were and any kind of turnaround from the ceo who took the reins in 2012. if you look at the worst- performing stock, the average 16%.f was up all the way down the line, ibm is down 2.7%, even worse than caterpillar. what you see is that ibm has had six straight quarters of declining revenue, and you see to downge from down .6% .5%. -- down 5.1%. they have resorted to cutting costs, so the earnings-per-share growth has kept pace, and warren buffett, who remains the largest shar

hugh, why don't you take ibm first. >> ibm, strorts about ibm, what happened in 2013 especially the third quarter, is emerging markets business in china. china down 22% to revenues. emerging markets down 9 %. what we're going to get in 2014 is i think a turn in china and i think that's written in the cards but i don't think we're going to see it in the emerging markets. so i think it's okay. you can buy ibm here and cross your fingers, look for positive relative performance, falling knife there too. wait for positive relative performance. >> it's down 7% so far this year. which is compared to the other two stocks, pretty good. >> pretty good. although i think it this will continue to be a dog of the dow next year, sell shares here, think it's going to 150. the fundamental's numbers in the wrong direction. maybe outlook, again, i think this stock is going down further. >> thank you both very much. appreciate it. ryder, good dog. good boy. ty, up to you. >> thanks very much, sue. parts of the east coast digging and scraping their way out today after heavy snow and ice fell in parts of washi

and frankly, people are just too negative right now on ibm. >> charlie, let's go to the second choicewhich is western union. charlie, have you heard of this thing, e-mail, charlie? >> yeah, try to send an e-mail with cash across the mexican borders. they have tied up the restrictions, anti-money laundering e-mails, and try sending it on the other end if the person doesn't have a bank account. you can't do it. so the money transfer business has been growing steadily for hundreds of years and we believe it will keep growing. >> you have another tech stock on your list, this is oracle, everybody debates about it. why do you like it? >> because everybody hates it. i don't know what this guy did, but boy, everybody hates larry ellison, he is very successful, his software is imbedded in companies, huge switching costs yet the stock is trade follow about 11 and a half, 12 times earnings, comparing to an average stock of 15 times earnings. it will benefit from a recovery in europe, no doubt the tech spending has been soft as the economy has been a little soft around tell world. but we believe

she has to hurn this around and see positive revenues, not negative revenues from ibm. that may be the biggest surprise. that's as bold and less wish-washy that i can get. >> tell me what do you see for emerging markets? so many companies, particularly in tech, have staked a lot of their growth hopes there. you don't seem to have a lot of confidence we're going to see things turn around in emerging markets. what specifically do you think is going to happen? >> i think when you talk about emerging markets, you got to be specific as to which emerging markets you're talking about. certainly china in my judgment is going to turn the corner, maybe 6.5% growth, maybe 7% growth, but i think they're going to manage the transition that they're -- that's occurring there and you're going to see a good stock market there. but if you take a look at some other emerging markets, if you look at chile, if you take a look at brazil, mexico, israel, australia, india, even sweden, which is not emerging, you take a look at those countries and i don't see good things there. so you've got to

jay henderson, strategy director with ibm commerce.ing of gadgets, did you get any gadget gifts this holiday? maybe you are waiting until 2014 to upgrade to new tech toys. we are going to preview the top tech gadgets for 2014 up next on "bloomberg west." ♪ >> i'm jon erlichman. this is "bloomberg west." turning now to our special year in series, the "bwest top 5," thinking about the top five gadgets we will see in 2014. our next guest's number five pick was interactive learning tools. here's why -- >> first of all, i think they are ready. the amount of gdp spent on learning is huge in this country. i think parents are going to start using their dollars towards tools that help their kids learn math and science and other things. if you look at what just happened with the coding in the last month with all those hours of free coding time, i think it will be a huge push by parents to give their kids something of value. >> this is stuff you know very well from your day job. i would love to get your reaction to your number five pick. >> we ar

. >>> ibm is under fire for the cooperation in the nsa spy scand scandal. lauren simonetti has the story. >> good monday morning. spying is not good for business. that is the message from tech companies after cooperating with the nsa specifically at ibm. shareholders with class action status for not disclosing the risk of business to china as ibm cooperated with the spy agency. as a result ibm reported a 22 years loss in china in the month of october. if is co and microsoft has lost business. many turning to home grown companies for tech needs instead. you may want to thank the mailm mailman. post offices across the nation are expected to process 607 million pieces of mail today alone. but the busiest delivery day for holiday cards and letters will be wednesday. for packages on thursday. in all of the u.s. postal service expects to deliver 14.7 billion cards and letters. 4 oh 20 million packages this holiday season. the mega millions jackpot now sits at $550 million no single ticket matched all five numbers plus the mega ball in the drawing on friday night.

i can give you the parallel to when i wrote my book, ibm, the holocaust. i saw an ibm machine is the very first relic at the holocaust and you hear in washington d.c. the 6 million people had seen it before me and no one thought to ask the question, what was ibm's role in the holocaust? of course as you know, ibm organized all six phases of the holocaust, and the identification of the jews, they're after us, deportation and even the extermination never denied it. when i did buy a book on eugenics, war against the weak, we talked about genocide by america against 90% of its citizens, by the greatest powers in this country, the intellectual elite, the progressive elite, fueled by corporate money and corporate philanthropy. the crankiest fusion and rockefeller foundation, which resulted in the sterilization of some 60,000 americans and the untold erasure of untold numbers of people who are never boring. and this is what got me into the round of philanthropic abuse and i became studied in the topic of charities to take their money for non-charitable purpose an

>> without confusing everybody, longer term i like ibm.era and other things they are doing is there. up untilar-term, january options expiration, i see a bearish pattern. when you look at the charts, i see a dissenting handle and we are at the top of the channel and i think we are about to turn down. into the end of the year, i think there will be bullish support. into 2014, i don't know if ibm is going to crash or fall but i don't think it will get above 190. that is my best with this trade. >> you are a short term bear. what exactly is your options strategy? >> this is the real key -- ibm reports earnings on january 21. options expiration i believe is on january 18. i am selling the january regular expiration. this will expire before the earnings report and i am selling the $1.90 call and biting though $1.95 call. of the trade is $4.50 for it i will make about 11% of my money. the key is the fact that statistically speaking ibm only has about a five percent shot of getting through that 195 mark. i have about an 83% chance that i will be

look at iowa and it's partnerships with ibm, really remarkable relationship looking at debuick. small cities, on the river, historic architecture, ibm came in and took over an old department store and help them advance their sustainability agenda. high technology and it will be one of those gigabyte cities. that's a big development. but like el paso talked about citizen-centered development on their rezoning plan. that's another approach. >> let me stop through. i'm wondering if the success of some of the bigger and better known cities will actually cause people looking for a bargain to take a second look at places like toledo, which was featured in today's "new york times." >> i think there are lots of opportunities. cleveland is one of my favorite examples because cleveland and it's surrounding region and goes to some point that mark made, the regional thinking in northeast ohio is drawing big cities and their smaller suburban cities together to think regionally to do some clever things. take advantage of the universities in the area. the infrastructure already in place. that'

she is in charge of a business, but it's not ibm. one decorated with not just lights and ornaments, but with wishes. needy children's wishes for christmas gifts. there are, in fact, more than 1,000 trees just like it all over the bay area, holding the wishes of some 67,000 children. and if you're wondering just who could make all those wishes come true -- >> this is a beautiful pile of gifts behind me. >> reporter: just look at the woman with the queen elf dress and hat and shoes. the family giving tree she runs these days didn't get this big overnight, but rather over 24 years. it all started when jennifer was a graduate business student at san jose state. a professor gave her team a project. do something that helps others. she thought of giving tree. >> i've seen them in malls. i thought let's put them in front of people who have jobs. that just made sense to me. >> reporter: it didn't make sense to the rest of her team and they chose a different project. so jennifer and another classmate struck out on their own. the first year the

ibm sees a discouraging economy.ys demand company's tech services depends on the economic climate, and right now the climate is "not very encouraging." is enjoying signs of recovery but north america is uncertain. he made the comment in a conference in new york yesterday. of course, they also had the big drop-off in sales in china. erianke from mohamed el- and michael spence, the slowdown, it is tangible. >> some wondering how much is company specific ibm. >> because north american weakness here is not something we tend to hear from tech and biz, so it does bring to question ibm. despite snowy weather in d.c. yesterday, a stricter volcker rule was adopted yesterday by five regulatory agencies. wall street faces increase government oversight, like traders cannot be reworded for proprietary trading. -- could not be rewarded for proprietary trading. preamble.s ,850-page 850 pages of false positives. no one has said more about the idea of be careful what you wish for then nobel laureate michael spence. this 2010 essay on

>> ibm is thinking big. who knows how it will trickle down.ne using this technology but it may take a while. the big ideave, is in 2014, please don't make this new year's careers resolution. >> this is an original piece on linked in. up there with losing weight or other big resolutions are changing your career. she says don't do that. this is too big and it sets you up for disappointment. you start applying for jobs and you are not sure what you want and your applications get rejected and you get disappointed. she says you should set out a specific plan and think of one specific change you want to make to your career that is measurable and lays out certain steps like creating your own personal board of advisors like recruiting mentors and giving yourself a reading list. simple incremental steps you can feel good about. >> what about the number three topic about the music industry? last week, we had a couple of the pieces of music news, led zeppelin releasing its entire catalog on spotify and beyoncÉ dropped her new album with almost new market

>> everyone loves to hate ibm at this point. hey, here's the deal with ibm.d 10, 11 times, capital spending has been lackluster for the last three years. trending well below gdp where historically it's been a multiple gdp. if you get a turnaround with capital spending, ibm will be very, very beneficial for them. so our price target's 220 -- >> chad, why is ibm going to benefit from a turnaround in capital spending when disrupted by new players in the space? >> i don't think -- look, kelly, you have had -- im ovibm over t last decade has expanded the revenue line. they've gone through six quarters of declining revenues but we think that ibm, once capital spending starts to kick back up, european economy starts to get back into a better situation, that ibm will be a winner over the long run. okay, it doesn't mean they don't have their problems. we do know that. for a value manager like ourselves, ibm has good value. by the way, you're in good hands because ibm, the largest shareholder, is warren buffett. at least you're in good company with this one. >> at leas

i mean, if you make the assumption that fidelity wants to sell a million shares of ibm, then it is only natural buyers, for 600,000, then if goldman sachs can't hedge that 600,000 shares then they could stand to lose a great deal of money, but by hedging they can lock in what the potential gain or loss would be and therefore they can allow that transaction to occur. the probability of letting it occur at a reasonable price goes away. and therefore, the ibm sale occurs at a much lower price which affects all the other prices. >> and this so-called volcker rule has been created by business and investors, what does it mean for the individual investor, does it impact them at all? >> well, for the individual investor then the big companies that i just mentioned, it would have a negative impact, i feel pretty certain about that. because basically it will reduce overall trading in the united states markets. it will have a bigger impact on the average american, however, because if it goes into effect the probability is that interest rates will be higher than they otherwise would have been. cost

reason, you would dump ibm and go to the new one.there. if you like the stock or mutual fund you're holding it is easier to do something similar. you sell a similar and buy a similar mutual fund to replace it. >> but not the exact same one. there's a big reason why. >> substantially equal is the phrase. >> a reason why because of something called a wash sale. please explain what this means. you can't just take the writeoff but go back into the same stock. >> say you want to keep ibm in the portfolio because you think this next coming year is going to be a great one. can't sell it today and buy it back tomorrow. you have to wait for at least 30 days. if you want to maintain some kind of exposure during that period of time, you could replace it with something similar but not obviously equal. >> yeah. just a moment ago you brought up a great chart of all the potential stocks that might be vulnerable to tax loss selling, the ones that have been slaut do absolute dogs. would those be the ones you would see on the downside in the near term

and so while many people talk about retaliation of the nif, after you've done ibm, ford, general motors, carnegie and rockefeller, the new israel fund is not a real problem. so if there are any other questions from any of the policy people in the room, any of the -- you have a question? >> i wanted to ask you a question. >> what is your first name? >> kyle. >> kyle. yes, kyle. >> i wanted to ask you, you said that this issue of paying salaries for palestinian prisoners was no surprise to, you know, the ambassadors and the policy people and the foreign ministers, yet somehow it was a surprise to members of congress. one of the first things that any congressman is going to do if they want to hold hearings is ask the state department what do you know about this. and it leads to the question, are they misof informing congress, do you think? and if so, why? >> well, first of all, they haven't been asked the right question, so they haven't misof informed congress. but there is such a thing as to missive misrepresentation -- to missive misrepresentation. and if you knew there was a terrorist g

oracle, cisco, ibm, are suffering from an economy that is not growing strong as it should.g, wedbush securities. great to talk to you. thanks for coming in. appreciate it. >> thank you. liz: it was a different kind of premier for amc entertainment. the company making its stock debut ending the day higher after the ipo was launched. it is the last ipo of 2013. why now though? just a couple weeks before christmas, the company decides after hemming and haw being to finally take the plunge, go public. we're talking to amc entertainment ceo, gerry lopez, yes, david he will challenge and take off on the water bottle issue. david: with a 5% pop they took off today. what effect will the fed's decision have, if any, on retail sales and a lackluster holiday shopping season? coming up we'll talk to overstock.com ceo, chairman, founder, a philosopher, a man of all things, patrick byrne in a first on fox interview on what trends he has seen this season. whether he thinks consumer confidence will come back. ♪ [ mamale announcer ] my client gloria has a lot going on in her life. wife, mot

the intel, the cornings, the ibms of the world.are what you say about xbox or nokia, it's still windows. that market is saturated. there's nothing allen my laically, if he comes over from forward, can do. >> cisco underperforming, roughly half the gains of the s&p. >> having a great year until that november quarter which was a disaster. i thought it would hold 21. didn't. traded back down in the ensuing weeks. they're the benefactor of a good tape. now trading 22 1/2. that felt like as bad a quarter as they possibly could have reported. i think the stock on a value basis might be okay here. i think it can recapture 25 easily. >> if you had to go another network -- >> given the fact -- given the sell-off fear, think cisco's more interesting than the other two. >> ibm finishing in the red. will big blue turn things around? this falls into the drawino dog dow theory. >> it was a fort night -- >> again with the bow tie talk. >> very sophisticated show. ibm was almost 12% down for the year. had a 9% rally over the last couple weeks. i d

nobody doesn't like ibm. -- nobody does it like ibm. the minutia. the date of what we idiots do. what is the single thing you have learned in the last 4 weeks? >> the big point is that mobile was huge. >> bigger than you thought it would be? >> oh, yeah. online people looking at today, 40% going through a mobile device. >> tablet -- >> tablets is what people are buying and smartphones are what people are searching. >> do people rip up their strategic plans? it is wanting to go -- one thing to go holiday this, blah blah statistics. do they go to a january meeting saying we have to rip up the script for christmas? >> people were shopping all the way through christmas day. christmas sales were up online. people just don't take a break. shopping is happening all the time. >> a lot of the rules being broken here. do a data check good stocks, bonds, currencies, commodities. this from the bloomberg equities. were you in the market? banner year. futures up a little bit. we begin to see the bond move. nymex crude has done nothing. >> crept i slowly over time

ibm has had its ups and downs over the years. and they have been excellent acquirers of businesses.s rather brilliantly overall up to this point. and i really think that we should expect a very good surprise out of both of them and i totally agree. >> i'm not yet. i'd rather focus on the future. it's a growth industry and that's where i want to be. >> some of the top resolutions and why some of them are so hard to keep. and then, thousands of new laws and regulations are going into effect in just two days. single loco. ♪ single loco. ♪ rich: you make them and you break them. getting behind those failed new year's resolutions. and how many people actually go through with their new year's resoluttons? would you say that most people do or do not? >> most people do not follow through. but the idea of making resolutions is great. but if you don't have the follow-through, it really becomes words and a lot of disapppinted self blame. but if you haven't followed through today, tomorrow is a new day and you can get yourself back on track. >> some people are setting themselves off for failure

ibm is so cheap. steve and i debated it last week. it's so cheap, it's not going anywhere. it's a nice, safe place to be if we do get a little minicorrection. >> a year ago, with the dow sitting at 13,000, professor jeremy segal made a bullish prediction about stocks and held that view all year long. >> we had 16% return last year, a very good year. i think we're going to match that and do better this year. so that does mean an all-time high for the s&p. i certainly wouldn't throw in the towel. and i'm still, you know, proj t projectiprojec projectiprojec projecting dow, 16,000, 17,000. my data shows the fair market value based on current earnings for the dow is probably around 18,000. i don't think this bull market is over yet. i still think there's good gains to come. >> well, professor siegle from the university of pennsylvania's wharton school is here with the outlook for 2014. professor, thank you. >> thank you. thank you for having me. happy new year. >> yeah, happy new year to you, too. thanks so much. great to have you back. you had a great year. you nailed it. a fa

beard talking about an ibm report.ed year over year on black friday and i have seen other places up 15% for the overall year. but still, 19%, this's a pretty good increase for online sales and something more important -- mobile traffic estimated at 20% to 25% of online sales, the people walking around in the mall with cell phone now, they could be 15% to 20% -- 20% to 25% of online sales, a tremendous increase. that's a real headline grabber in my opinion. here's the big worry that everybody's got. what happens when now and the last weekend before christmas? around the 14th, 15th, those kinds of days. we have all of these great discounts going on for black friday. we saw tremendous promotions going on. do they keep the propotions up? if they don't, you know what will happen. there's an enormous dip off. people go away until the last weekend and then they're going to have tremendous sales. and that's the big problem. one retail trader i talked to said 50 pst off is new 25%. people responded to apparel sales all over whe

ibm dish analytics, sales rose and amazon sales were up 44% as of 6:00 p.m. eastern and ebay's were up 32%. gloo global pc shipments could be set for the most severe yearly contraction on record. the group said shipments are expected to fall by 10.1% this year, procedure than previously projects. ibc pointed to the increasing life spans of pcs. it added total shimts weed tohi set to decline 3.8% in 2014. a mystery customer has been dropping tips of $11,000 some reaching at high as 10,000. the tipper is placing photos of the receipt owes an instagram page. >>> has tipping got out of control? does a tipping culture improve services? do you think wages and bar staff now just expect the cash? there's big difference between u.s. and the u.s. where in europe staff are paid and sometimes the service is automatically included on the bill. get in touch with us. worldwide@cnbc.com, tweet @cnbcwex or direct to me @rosswestga @rosswestgate. meet bitcoin jesus. head to cnbc.com to find out how he got his special title. >>> still to come, is the british prime minister davi

ibm is also on the list with a special designation. its stock was the worst performer on the dow jones industrial average this year. >>james: a new survey says the notion of the detached that is increasingly outdated and the u.s.. - detached dad. the government service as among the dads they survived that surveyed most say they are heavily involved parents. 90 percent say they paid their children, change diapers and help them address several times a week. and the majority said they read to their kids and help with homework. one researcher says the outcome is important because other studies show " the more of of that car, the better the outcomes for their children. " coming up on the kron4 morning news, from that infamous black out for it to when the beatles played their final concert. the importance of candlestick park cannot be understated. before the final game on monday night, will take a look back at the most memorable moments. or 45 on the clock. a chapter of san francisco history will close on monday night when the 49ers play the

>> pitting an ibm computer systems against the two most successful celebrated players in history. watson cleaned their clocks. >> who is michael phelps. what is staggering genius. >> you say we are going to soon see robots that act like doctors? >> well, i would like to have the best decisions made about my health when i go to the hospital, wouldn't you? that's what watson is trying to do to be a decision support enterprise to help doctors and hospitals make better care decisions that are going to relate to whether you should have a certain drug or maybe you shouldn't. >> i hope we do show it is possible. we have been talking about and have seen rockets launching into orbit. what if you want to go much further, maybe to mars? that will supposedly be possible in ten years. >> from now on we won't just be visiting planets, you will be staying. >> inhabitants wanted for mars in ten years? yes says the enter paren another who started launch 1 who plans to land people on mars by the year 2023. come on. it sounds very ambitious when you first hear it. when you realize the difference try

it has been weighing on the dow and travelers and ibm. so a tough day there.lk about something that went up, that is interest rates. not necessarily good for the market. that is terrible for gold. gold is down as interest rates are up. >> that is the story of everything intertwined. manufacturing numbers. we see interest rates jumping. people are selling off bonds and gold. all on the idea that the fed may taper and gold is around 1221 a troy ounce. liz: have to talk about trendy names here. 3-d systems announcing gains after high-end printers coming out. people think this is a little frothy in it sector but looking good today. >> one of those names you talk about, like gogo. talk about 3-d systems unveiling two new printers. got a nice pop. up 2 1/2%. a great performance. david: of course while people are not jumping out of the windows. it is not a terrible down day but the vix we should mention, this is six-week high for the vix. >> right. very interesting to watch how the vix is creeping back up as we're hovering around these highs. we had eight straight we

peeled off the ibm stickers and put on the lenovo acquisitions.he smithfield acquisition is much more profile and more recent. >> sausages was a national risk. >> they somehow made it through. >> the idea that julie talks about of the chinese coming in. we worry about computers and gasoline, is there a melding of this relationship with chinese business? >> there has to be at some point. it's an important market and in entertainment especially. the way american movies are made is essentially to appeal to overseas audience. s. it drives the creative process so it is important that those products are being consumed. if it's owned by the chinese, that continues -- that encourages cooperation. chinese audiences like bittersweet endings where there is a lot of drama and tragedy in the end. talk about the other china-u.s. deal. becausee has not been of the obstacles between the u.s. and china, historically -- the smithfield deal might be a turning point was close in september after getting congressional scrutiny for the flow of pork between the u.s. and

washingtonom a organization that has companies like ibm on its board that funds it.is not like it comes totally out of left yield. i spent a fair amount of time in berlin with the tech community and they are hungering, they really want to be thought of as a major tech hub. you see a split between the small startups that really want access to capital, want access to private equity, access to investors, and the eggs telcos, companies like deutsche telekom who are really, i don't want to say priding on the security fears but they are certainly trying to use it to their advantage so they can convince customers that information is stored, itis locally is in germany, and edward snowden-type nsa tap-in revealed in his variety of document dump cannot actually violate that kind of privacy. a splitsay there is here. big companies are trying to use it and exploit. smaller companies wanted to go away and they want to think of the world in terms of a borderless world. maybe cory johnson hasn't thought. he obviously knows the tech community so well. , ciscos really shocked came ou

. >> you site david boice, he represented ibm against the united states, al gore in his election, he also is dyslexic. the new statesman said, according to your theory, siting statistics showing proportionately more people with dyslexia enjoy worldly success than without. not even gladwell can run the experiment in which boyce repeats his dyslexia, seems more personal about the attack but there was a lot of it about the dyslexia part. >> you can say certain things, not every idea can be presented or tested with scientific rigor. it's not possible. in my book outliers, i play with the idea that perhaps something about the culture of rice cultivation in southern china has contributed to asian success, chinese success in mathematics. is that a provable assumption? have no, you can't rerun history, see how chinese would do it if they hadn't had a rice cultivation, but is it not useful to play with that idea? of course not. first submit it to seven layers of academic rigor, they're saying the world would be a very boring place. i think it's fun to play with ideas, so in the case of david

i did a different than what ibm did when they said they were making computers -- you got out of that business and said that you would get into the service business. it is what you decided to do it tell, is it different from that? >> it is very different. they've said that they were protecting a legacy of old things. we did not have that. we were going into this with a very fresh perspective. while we felt it largest companies in the world, we also sell to the largest companies -- smallest companies in the world. all the entrepreneurial, fast- growing companies. he built his whole new part of the business and more than doubled the size of it from roughly 10 billion to 20 billion. one of the big reasons to go private is to continue to accelerate that growth. i continue to build the solutions and bring a democratized i.t. in terms of software, data centers, services for all the growing businesses out there. >> did you decide to do it because you did not believe you could do it as long as you had a quarterly commitment to stockholders who might not want you to do it? it, it is still do j

electronics and jewelry rose 2.3% over the holiday, online sales surging 16.5% over 2012, that's according to ibm, digital and analytics. meanwhile, amazon says 2013 was its biggest shopping year yet. on cybermonday alone they sold 36.8 million items worldwide. >> that is 426 items purchased per second. >>> delta airlines ran an after christmas special without needing to. some delta websites and booking sites were incorrect because of a glitch. one round-trip flight between minneapolis in february sold for just $25.05. delta is honoring the purchases. >>> and a new associated press times square new year's eve poll finds americans are looking at the new year with optimism. 49% think their own fortunes will improve in 2014. 34% say they don't expect much to change. >>> well, forces just ahead, including number 12 back on the frozen tundra. >>> plus, michigan will be one player short next week. you are watching "early today." >> the 2015 olympics making organizers optimistic there will be no shortage of the white stuff when it begins. unusually warm temperatures hit the area causing organizers to st

. >> he got tesla from ibm and he had one of the highest aptitudes for computer programming. >> musk was already thinking and figured out how to sell games. >> i was 12. >> we decided to open up an arcade. we were into videogames. it was a huge hit. we got the arcade to provide the equipment. the only thing we would do is get the city to approve what we were doing. >> but an adult had to apply for a city permit. they had not told tell their parents what they were up to. >> they told us we could not open up an arcade. >> max is a technology and business journalist who has profiled elon musk several times. >> what is amazing is his escape from south africa. >> i remember thinking america is where all things are possible more than anywhere else in the world. america has opportunity. >> by moving, he would also avoid mandatory service in the south african army. >> it was surreal. we did not support or believe in that government. to go into military service was really out of the question. >> i told my parents i was going to canada and they begged me not to leave. >> wow. he is so independ

ibm's biggest story they have is their buyback.they've got nothing. >> how true is that for so many companies here. jon, seema, response here? >> yeah. this will be the big question going into 2014. i think as well as the fact we are seeing so many sectors -- all ten s&p sectors are up? where can you put money to work? you would think they go into high growth sectors like technologies. >> jon, good to see you. thank you for joining us. >> thank you. bye-bye. >> heading toward the close. 30 minutes to the close. slight bias to the downside but not much. if we sit here long enough maybe we'll turn neckgative on the dow. >> what is wall street's most famous investors think about this market? we'll ask him. john bogle is here next. >> george clooney lending his support to ukraine's pro-union protesters. >> let me say that this to all of you in the square in kiev all around ukraine. when you look to the west know we are looking back at you with great admiration. >> those same protesters he's talking about just tore down a statue of the

when coca-cola company, ibm and other american conglomerates were doing business with apartheid regime, and there was movement among college kids, including my daughter, to bring an end in trade relationship in the apartheid regime. that was when--that was a minimal contribution that i would say was made in america, my daughter, college kids. it was not the top politicians. >> i heard black south africans say that apartheid would have ended earlier if not for the dragging of the feet of the americans and the brits in the 1980's. >> well, it wasn't only the americans and brits, i would say the entire european community. i don't know how the japanese felt, but the americans--the people who were getting economically well off by trading with the apartheid regime, and extracting their minerals from south africa as well, diamonds and other things, they didn't want to see a change. and it was the same principle that we had in south africa when all the former american presidents were in bed with the military dictators there. there weren't any black people or indigenous people rose up against t

they bought ibm's pc business.ginally, the computers were branded as ibm thinkpad than three years and, lenovo held this ceremony, peeled off the ibm stickers and put on lenovo stickers instead. smithfield come at the more recent deal. it went under a lot of congressional scrutiny before being bought for $4.7 billion. smithfield is a meat processor and there were members of congress trying to make the case that this was a national security issue. necessarily that, but there is some concern that the quality standards in china are not what they are in the u.s. say what you will -- >> they have had problems going in that direction rather than coming in this direction if you are looking at where the pork is going. one more i want to mention is volvo. they are not a u.s. brand, but very well-known in the u.s. and owned by a chinese company. >> any deal flow? >> there has been a good amount of deal flow for the past 10 years or so. one big deal that was canceled was see note trying to buy unocal. that was scuttled by con

ibm created the smallest movie called "a boy and his atom", the character is a series of carbon monoxide atoms, and to watch you have to mag niify it. >> nationle geographic picked its top pictures of the year. al jazeera's john siegenthaler showed us some of the winning images. >> here is national geographic's grand prize winner. we see a polar bear peering up from the sea ice as the midnight sun sets over canada's hudson bay. the bear watched for several seconds, under the surface, before taking a deep breath and swimming away. it's a spectacular shot. one of 7,000 submitted from 150 countries, including this from japan - crows living in tokyo, using coat-hangers to make nests. they do it because there's few trees. the effect resembles a work of ard. this is from hungary. the great egrets in the danube. this is titled a man feeding swans in the snow. from malaysia a national geographic winner. alan tan trained his camera on a town in transition, from the old to the new. a mother carrying a child in a basket. here a lion lies in wake. following the pride before an ant lop strolls by. th

no one ever got fired for hiring ibm, that is the culture of washington. only exclusively hired ibm in the private sector, we would still be using the old giant monolithic pcs. >> good advice. good talking with you again, clay johnson. good tips there for people >> good to see you and happy new year. >> happy new year to you. >> we know how tempting vending machines can be. but soon you'll get a reality check because millions of machines will be required to displace calorie information. we'll take a look at how it will work and how much it will cost. >> new regulations will go into effect early next year as part of obamacare. they allow more information for you. more than 10,000 companies will have to display this, the calorie counts. similarly to what you see in menus in restaurants. it will be on vending machines now. they'll see the calories next to their snack choice. they include lays potato chips, skittles, snickers. you'll see it right there. now, the fda hopes this will help consumers go from alternatives. it will help you stick to your new year's