Just eight days remain, will the federal government shutdown?
October brings crucial decisions in a deeply divided washington.
Angela merkel wins big in the german elections.
She begins her hunt for coalition partners.
We will go to berlin.
Netflix ties cbs for one emmy.
Good morning, this is "bloomberg surveillance." i am tom keene.
It is monday, september 23. joining me as always, sara eisen and scarlet fu.
Did you watch the emmys?
I did not stay up.
I know it was a game changer for companies like netflix.
Best director award?
Way more fun than the oscars.
Did you watch sports?
Jonathan tisch will join us.
He is on sedation.
Besides sports and the emmys, other things are going on in the world including china's manufacturing gauge which increased to a six-month high.
Little by way of economic data in the u.s. the chicago federal reserve activity index.
Corporate events, red-hot earnings come out after the bell.
Microsoft is set to unveil its new surface tablets.
Plenty of leaders will defend -- to sit on new york city with the you meeting kicking off in new york.
There aren't number of topics to be discussed.
Syria is front and summer.
-- there are a number of topics to be discussed, syria is front and center.
The limos, the black cars, the suv's all, now.
This year they're shutting down 6th avenue.
And forget about the fdr on the east side.
Let's do a data check.
Help me here, futures love it.
Euro-dollar, 1.3515. the bengals did better than good.
Today, 13.12. euro/yen is stronger.
Even the aussie dollar does better.
China doing better.
Also this: a celebration of a angela merkel win.
Certainly a vote of confidence that her domestic policies and framing the selection about europe.
We will talk about that in the moment.
It is time for the front page.
The most important stories.
German chancellor angela merkel is on the front page.
This is a historic win.
Literally on the front page where she won her third term as chancellor.
She called it a super result.
Germany is europe's biggest and most important economy.
The euro trading near a seven- month high on the news.
She begins her search for coalition partner.
It would've been something of she got the majority.
Any word on the coalition talks?
Her possible partners are the main social partners or the environmental groups.
We can say angela merkel is said to be in power longer than margaret thatcher.
If she carries out her term, it will be 12 years.
The guys on twitter and this weekend, it was interesting, she won, now what?
That is confusing.
Especially when it talks that reese may need a third bailout.
What will be her stance on that?
Everyone is saying things will be held up until the german elections.
Results have come in, so maybe we can move on.
Our second front-page story is on citigroup, reported to suffer a drop in trading revenues.
Is this a surprise?
But a lot of people say they expect revenue to fall more than 10%. we are seeing a reaction in the premarket already.
Citigroup shares are falling.
They do not formally report until october 15 but last week jefferies posted an 88% plunge in fixed-income trading.
Does this help was going into october?
This is a mystery.
But it is also tied to their reliance on merging markets and currency trading.
Our third front-page story, a fun one, the emmy awards.
We did not exactly step to watch the whole thing, but we saw enough to know it marked the first would in a major category by the online distributor because netflix or i should say david fincher one best director for netflix plus "house of cards." well-deserved.
And netflix one the amount of emmys as cbs.
Why are the emmys more fun than the oscars?
Everybody seems like they're having fun.
It is early on.
I february, everyone is cramped up from one month, three months of campaigning.
Movies take themselves way more seriously than tv.
It was such a breath of fresh air.
And apo was a big winner.
Mental block, mork and mindy -- what robin williams did for jonathan winters was fabulous.
There is a window into tom's brain, "mork and mindy." angela merkel conservative winning big yesterday the german elections.
Something the markets are watching closely.
Now she has to begin her hunt for coalition partners.
Hans nichols joins us live from berlin.
A little different than covering the white house.
What is the process for ms.
I have to do real reporting.
She is in a position where she is almost a personal mandate, but not a majority.
So she may go green.
That is the by this morning from officials.
They're opening up the possibility of forming with the greed and not as speedy that could scramble things that make for an interesting discussion going forward.
I want you to explain with the brandenburg gate behind you, how this is about east germany and west germany, but even coming out of world war ii, why are the germans so focused on coalition politics instead of the winner actually winning?
Coalition politics it's it consists -- gets it consists is building.
She is not going to be able to rewrite a lot of any sort of laws.
Look at the -- angela merkel is very much from the east and that has influenced and informed her entire approach to the crisis in the eurozone.
It is step-by-step and operating countries forward before they're ready.
When you look at the glidepath and merkel telegraphed there would be a third bailout for greece, it is a step-by-step approach.
It is austerity, a little bit of austerity and a little bit of growth.
But the fundamental path of the trajectory want change and she has been given a huge endorsement for her approach to both the domestic economy and the entire eurozone crisis.
Add to that note, tell us what is on the agenda.
It is not just greece, they have to work out of banking union.
Banking union greece and then energy.
Merkel is trying to win the country off nuclear power.
When you look at their production cost, their energy costs, some 30% higher than their neighbors.
It was five for the big companies, because they get rebates.
If you're going to win your company move toward renewable, that increases production costs for manufacturing-based economy, which is a huge challenge.
That is one of her top priorities.
That is why coalition potentially with the green to be fascinating.
In some ways, they're on the same page.
Not on tax policy or family, but on energy, their similarity.
Hans nichols, thank you, joining us from berlin this morning.
Joining us, bloomberg contributing editor with the new yorker magazine, nick thompson joins us.
This is fascinating.
Ed kinard joins us, author of " unintended consequences," strong mitt romney supporter.
This as washington migrates toward -- there was one point were i saw kenya, pakistan, some other place with terrorist activity.
This is still a new world for america, isn't it.
I think the third massacre was in iraq.
The one that struck people the most was the kenyan massacre because it was armed militants in a shopping mall shooting everybody.
There's a lot we can talk about their.
And a time that we have got, your book really addresses sort of the defense, where were we, where are we now, where are we going.
Do you see any coalition in washington of a view toward how you stop these terror tax?
Or do we just say it is on the other side of the world?
The view in washington, it is shifting.
It is going from, we will try to rearrange the chess pieces of the middle east, not that this government, change it around to more we will confront these threats one by one.
But we feel like we have success in the we see something like what happened in kenya.
This multiple tragedy, not to mention what is going on in syria, is all the backdrop for this week's diplomatic talks.
Ed conard, what is the united states role and influence in the international community as these talks kick off?
That is a big question, especially for a guy who is focused on the economy.
I see our role shrinking.
I think what happened in syria made it more difficult for us going forward.
Obviously, bombing syria is a difficult have to go down as well, but i think we have lost the lead it will be hard for us to lead here.
Two quick questions.
Kenjon barner survive and what you need from your republicans -- ken painter survive and what you need?
Rocks i think what they're doing here is perhaps more clever than people realize.
They're forcing democrats to reaffirm obamacare, which is great for most of the democrats.
That is fair.
Five or six are on the margin.
Second, they're holding them responsible for the implementation.
As long as they don't shut down the government, they will have good platform to run against five or six marshall senators up for election.
It also allows them to -- they don't have to vote to not raise the debt ceiling or not that the continuing funding resolution passed.
They can vote for it was certain conditions and continue to vote for it even as they let this condition slide.
Conard, to her fellow republicans, does she yourself in the foot.
We start with goldman sachs restructuring its bond trading platform.
An effort to lure customers to the struggling system.
Banks and investors have their ability to trade corporate bonds has dropped sharply as the two sides struggle to improve liquidity.
Jpmorgan teaming up with bill and linda gates to tackle disease.
They will form an investment fund to fight disease and low income countries.
With backing from the big drug companies, development of technology to fight malaria, hiv, and other diseases.
Apple may report record sales for its new iphones.
Analysts a long lines signal huge demand for the devices and protect the company may have sold close to 8 million phones over the weekend, easily topping laster's opening weekend record of 5 million units.
That is today's company news.
I am curious the comparison between the fancy fives -- if you wanted the gold iphone , you're not going to get it until october.
The anti-apple crew tore me to shreds.
There are emotions.
Apple versus blackberry.
We can talk about the reverse fortunes of these companies.
Our twitter question of the day -- we will discuss the new strategy coming up on "bloomberg surveillance." ? good monday morning, "bloomberg surveillance." new york city.
He is a chef.
Mario batali live "in the loop" with betty liu.
Are they cooking?
I am sara eisen.
Joined by the unhip tom keene and hip scarlet fu.
Smartphones were once the signs of leading technology, but after being upstaged over and over, the devices may become just a distant memory.
This comes after a series of announcements, blackberry nothing it would cut 40 500 jobs in a last-ditch move to recharge the struggling business.
There've also switched up the strategy.
They had to downright almost $1 billion.
They're going back to their roots, the original playbook of focusing on the corporate customer, the enterprise market.
When you look at their market shares, the global smartphone market, they have 3%, but businesses with more than 10,000 employees were reading 38%, government financial and stood to shins, 33% market financial share.
Gallate is their running out of cash will stop the financial vision is they -- their running out of cash and will stop the financial vision.
They have been lining up pe firms to try to buy the company.
People are wondering, what can a price tag would it get?
Dell computers should have bought them.
Nick thompson with us.
Former new yorker, contesting editor for bloomberg.
Have you seen a blackberry z on the street?
Ask your way up on me.
The company charley blew it.
What is interesting, they peaked about 2008 then they have a very dark three-year time and then there is a real effort at reinvention.
That that many of the right things the last couple of years.
They seemed to be trying and seemed to be trying in a smart way, but it was a little too little too late.
One of the ideas that blackberry had is the messenger, which was popular among was going to be sold to other devices like android.
And that is not going well, either.
It was going to be a free app.
There have been some glitches because they were going to roll this out this week and they're a been some glitches, so they had to spend that -- spin that technical difficulties.
Ed conard with us.
Where is pain on this?
They bring in the consultants.
What do guys like were days that bain, what you say with a doglike blackberry?
My view is they have to sell it.
They have very deep pockets.
How do you do that?
How do you do just what you say?
Brezinski said, not all problems are solvable.
Where is the value of they sell this?
And the revenue they extract from current users.
There is a lot of cash, but it is twiddling.
No debt on the balance sheet and a portfolio that could be worth about $1 billion.
Would warren buffett be interested?
You buy a stream of existing -- i wouldn't think so.
He buys companies that have strong market shares.
But is it good for private equity?
I think if you retreated to the old devices, which i think is probably where almost all of the revenue is coming from, and you converted that into a tax shield by levering up the tax flow, thereby be something there, some valuation.
With cash flows, you're shielding them.
Milking a dry, basically.
Which is what dell seems to be doing, by the way.
It seems to me.
We will talk about the looming threat of a government shutdown, not to mention hitting the debt ceiling.
We're counting down to october 1, next week, when the government is set to run out of cash.
Can anything get done in congress?
That is next on "bloomberg surveillance." ? this is "bloomberg surveillance." i am sara eisen.
And top headlines, angela merkel winning big in germany.
The first female chancellor won her third term as a christian temp --bloc.
The biggest win since the post- unification victory back in 1990. the deadly mall attack in kenya entering his third day.
Police trying to flush out somali terrorists who attacked the upscale mall on saturday.
At least 68 people have been killed and 49 more are missing.
The terrorists are from an al qaeda linked militant group in some audio.
On a lighter note in the u.s. at the box office, the suspense thriller "prisoners" took the number one spot, more than $21 million in sales over the weekend.
"insidious chapter 2" doing pretty well, falling to second.
How about the weekend must- see?
Was metallica there?
Yes, it was great.
Are you talking about baseball?
Red sox in first place.
With united nations general assembly meetings beginning, we're going to talk about was the people were is the munition cloud.
Syria will top the issues to be discussed.
Senior advisor at the french institute for international affairs writes that the agreement could one day be removed as a spectacular breakthrough but more likely to be perceived as a grand deception.
Certainly, this is kind of the backdrop here heading into the a simile meanings.
Nick thompson, you have written much on the carter years.
To equate the president with jimmy carter?
The economy has not gone under the way it did with jimmy carter, not brought him down that way.
He made a bad mistake when he said there was a red line, he acted like america from the past.
The world doesn't abide.
Suddenly, back to the corner.
But he got himself out of the mess or was gotten out of the mess.
I wonder how much of the politics are related to the u.s. weakness in the economy?
Writing today in the financial times -- it doesn't come from just anyone.
His name was out there to become the fed chairman before them bernanke under president bush.
We will come back and talk about this.
This is so important.
Is it a policy for the elites?
"bloomberg surveillance." not to mention the impact of congress.
Coming up, the deadlock in d.c., counting down the days to some critical deadlines, next.
? this is bloomberg " surveillance." talking about a showdown in washington again.
Republicans passed a bill friday that would fund the government but defund obamacare.
The october first deadline approaches.
Not to mention the middle of october when we bump up the debt ceiling.
Here we go again.
What to do.
This is interesting.
Ed kinard in support of mitt romney republicans.
His republicans are distant from democrats and some would say so many others in the gop.
We ask what are the unintended consequence of this autumn's gridlock?
Are republicans finding themselves led minority government?
I think it is portrayed that way in the media, and certainly in the democrats.
I think what they are doing is not going to lead to a government shutdown.
Good populism, bad populism.
Are all populous now or do you perceive the great divide?
Does this go to next year?
Like go back in time.
You have mitt romney, john mccain and bob dole and george bush senior and judy.
He will be yelping about the religious rights.
They can sacrifice the john boehner speakership.
Will he survive or go the other way of the moderates?
I think he has always been -- in terms of the strategy, clearly to have some leverage.
I think it is.
I think this allows them to really increase the debt ceiling without having to vote for it directly.
That will be used against them an election.
If they do not vote for continuation of the debt ceiling.
As i said before, i think the vast democrats on the margin, you have alaska, arkansas, south carolina, louisiana.
You have a lot of important seats up for grabs.
Back to the corner of reaffirming support for obamacare.
And committing to the implementation of it.
It is going to have it ethical implementation.
What you are effectively saying is this will work politically as long as the overall strategy fails.
As long as the debt ceiling gets raised.
If it leads to a government shutdown, it will back into obamacare.
The s&p near a record high.
The bond market does not seem too worried about it.
You are a businessman and investor as well.
Which one are you more worried about?
I think you have to see them combined.
A different distinction.
Look at the vix.
Not worried about this.
Is it because he will get republicans to vote for it in the house?
The right-wing of your party and get moderate support.
I think he has already gotten a couple of marginal democrats.
Ted cruz is going to fold?
I do not know if he will fold.
I think he will grandstand.
You will drag us down.
I think if the republicans did not negotiate at all for raised -- spending decrease, we would see more adverse effects.
What happens next year and a year after that in the year after that?
Will we have the showdown every single year from here on out?
Imagine if we were only five percent between revenue and cost.
Then you would have the showdown and you would have to balance the budget.
Because the cost of revenues are so far apart, you cannot really go to a radical rebalancing of the budget.
I think they can never go to a situation with close to the balance.
You have to either be far apart now or balanced.
Nick thompson with the new yorker magazine.
You are writing about this.
I will say a lot of the media is missing this.
What are they missing?
They are dominated by the far right and do not care.
More chaos is good for them.
This is actually crafty moderate plan.
So that is a very hard question.
The thing that concerns me the most this week is the falling apart of immigration reform even further.
There is a small group of democrats and republicans in the house that was one of the last best chances.
Republicans washed-walked away from that.
-- walked away from that.
What is the party vision right now?
I think you're trying to show increase in spending.
You just had mandatory spending.
They have no control over that.
It just increases every year.
Note negotiating position other than you think that that's ceiling and continued resolution.
That is the only negotiation leverage they have a slow the growth in spending.
We will see.
The deadline approaches.
Two big deadlines.
Coming up in the next hour, we will talk real estate in new york.
The hospitality industry in new york giants.
Co.-owner of the giants.
That is coming up next.
? this is bloomberg " surveillance." terrorist attack at church service in pakistan.
34 women and seven children killed in a church near the msdn border.
This comes two weeks after political leaders agreed to hold talks with militants, including the taliban.
Bo xilai sentenced to life in prison for corruption.
The court found guilty of taking more than thrilled not-3 million in bribes.
-- 3 million in bribes.
The typhoon slammed the southern coast of china.
Bringing heavy rains across the region.
This relocated thousands of people.
It damaged homes and caused power outages.
Those are your top news headlines.
The weather is upon us.
Bonnie schneider joins us to talk whether in a moment.
First, single best chart is a weather chart.
We have just begun on him but halfway through hurricane season and so far pretty quiet.
Our chart shows how we had a pretty high predicted range for hurricanes.
7-10 hurricanes predict did.
Blue marker show the actual number of hurricanes has all an way below the estimates.
The second chart narrows it down to major hurricanes.
3-6 predicted back in may.
So far no major hurricanes this season.
Definitely not all clear but has been unusual year so far.
Any time a storm has gotten off the coast of africa, it has hidden really dry air and diminished the actual output of the storm.
So the dust of the sahara moves west -- what about a warm golf of mexico?
There have been devastating hurricanes and mexico.
They are still reeling from that.
The water temperature in the gulf of mexico still in the low 80s. if we see a storm for the rest of the season, it would likely be towards the caribbean or gulf of mexico.
That is where the water temperatures are the warmest.
The danger is when we are tracking storms off the coast of africa, we have days to watch them grow.
When something pops up in the gulf, we have a lot less warning.
This typhoon got two incredible record strength.
Making it equivalent to what we are used to hear.
Category five intensity.
Luckily did not come in as strong in hong kong.
What is the difference between the typhoon and cyclone and hurricane?
That is a great question.
There is no difference.
There were so many dire warnings going into this hurricane season.
Now we're past the halfway point.
You say it is not good news.
The forecast we were showing on the chart shows we are still anticipating storms.
The season is not over yet.
All it takes is one or two big one.
What is the difference for the storm hitting at the beginning versus the end?
The one that hit at the end was an interesting one because we have the cold air coming in from the west.
The air is colder so you run the risk of snow.
The beginning of the season you are watching them come in and have more warning.
Bonnie schneider, thank you so much.
Going around the world.
Starting in italy where thousands flooded to the streets to see pope francis.
A celebrity pope.
People love him.
It is one of the poorest regions.
Unemployment near 20%. youth unemployment near 50%. an exciting moment.
The pope mobile.
Every island in the mediterranean.
Lex next up, germany.
Big weekend in berlin.
They were cheering after the exit poll.
41.5% of the vote.
The only major leader to be a let it twice during the financial crisis.
Lex now she has to do -- now she has to do this next.
Staying in germany.
Oktoberfest officially underway.
Getting rowdy in germany for the celebration.
A 16 day event.
Starts in september and culminates in october?
It is celebrated around the world.
Have you ever been to oktoberfest in germany?
We need to road trip.
Is munich where you do this?
Coming up, netflix won an emmy last night.
It is a first and changing the way we watch television.
That conversation coming up with nick thompson.
? " surveillance." now time for company news.
Twitter looking for a credit line.
The credit line could run into the hundreds of millions of dollars.
Facebook and zynga follow this taking advantage of favorable lending conditions.
Netflix wins at the emmys.
Taking home the award for best director for house of cards.
The company winning the first win of a major category fun -- by an online distributor.
Linkedin being sued by customers who say the company appropriated their identity former coding purposes.
They claimed that they hacked into internal e-mail addresses and downloaded addresses.
Linkedin fighting the lawsuit.
You just mentioned the net may -- and.
Shows you how profoundly the television landscape has changed.
One emmy for netflix.
Netflix nominated for a lot more awards but took home best director a good one to take home.
Shows how the cable operations are changing the game.
Netflix is increasing content budget to $2 billion annually.
That means a lot more house of cards, oranges the new black and documentaries.
I do not think it was submitted for this year.
It was a little new.
Nick thompson is here to discuss what the emmy wins -- emmy win means for netflix.
He owns his own online publishing forum.
Does the tv industry get panicked?
The tv industry has no idea what to do with netflix.
They are a competitor for all of these other shows.
Also, the tv industry needs it to distribute shows.
What did they do after a won the emmy?
They tweeted to watch past seasons of breaking bad.
They are a friend and foe.
A couple of years ago, they lost leverage of the tv industry.
Now they are flying high.
The tv industry is once again here.
I was sitting here watching this.
Full disclosure that i am brain- dead on this and terrible.
How do they respond?
What do nbc, abc and fox -- how do they respond?
They say we need to respond.
House of cards lined up and ready to go.
They had a bidding process that said who should we go to?
A couple of things those stations need to do.
They need to get much better at analyzing their own data.
Their big competitive data is watching what they like and how they like.
Tv stations need to get better at what they have.
They need to figure out how to get better content and how to present themselves.
Getting better content is always part of the challenge.
Will they adopt the business strategy and release the season all at once for a premium and slowly roll out the episodes supported by advertisement?
They do not want to kill the business they have right now while they are threatened by netflix.
There is a great point this weekend about comcast and verizon trying to get into the whole binge viewing idea.
The question this poses for cbs and content providers about who they choose.
Do they choose old school companies like verizon and comcast?
A very tough choice for them right now.
To you perceive the netflix want to change?
Are they doing the action where they are trying to keep within the general conforms and rules in series or are there real effort to change?
It is with all incumbent companies that are threatened by change that have existing, good businesses.
You want to hang on as long as possible.
Keep the viewers happy watching what they're watching.
You are terrified there is new data that could undercut you.
I want to bring in the guest host as well.
You watch a lot of television.
Do you tweet at the same time you watch tv?
That is a big topic of conversation, that twitter drives watching tv.
No, i do not tweet.
How do you get the water cooler audience around things like this?
The real question is where is the water cooler now?
It is a lot easier to win an emmy then get an audience.
How many people are watching house of cards?
I know they are impressed by the amount of traffic they have gone.
We do not know.
Are we around the watercooler like we were 20 years ago?
We are not.
The inch viewing makes it harder to get around the water cooler.
There is a small group of people that watch as all 12 episodes the first night.
Everyone else says no spoilers.
People are around the watercooler waiting for the episodes.
You have to watch that sunday night.
You could throw cold water on netflix and say it is very hard to get people to talk about it.
Can they do it again?
We will have to see.
Can amazon and hulu and all the other competitors do that as well?
Microsoft says we are getting in the business of shows.
Netflix success could bring a lot of people to the market.
Rob weiner was out last night doing a wonderful thing.
All of the families gone.
Mash is gone.
What replaces that is a national residence?
Breaking bad and modern family.
Game of thrones replaces all in the family?
Does game of thrones replace all in the family?
No, it does not.
Lexmark are in family is not banding show.
-- modern family is a fantastic show.
I thought it was great.
The oscars are so pretentious.
We will end the hour with the forex report.
I euro-favored report.
I am looking at the euro across numerous currencies.
It has turned around.
Opened the day stronger.
Weaker against the dollar.
Euro trades versus ozzy.
A good barometer of europe versus china.
They compete for exports.
Australia a big exporter as well.
It is seeking me -- weakening.
It hurts the exports but assigned they are on top of the crisis and investors are confident investing in europe.
They want it both ways.
My headline is it is behind us.
Now we have something simple to worry about like washington.
You for joining us as always.
Coming up, we will talk to the barnyard college president and the chairman at lowe's. ? this is bloomberg "s urveillance." october brings budgets and a deeply divided washington.
We look at women in business.
We speak to the giants owner, jonathan tisch.
His people said to my people did not bring up new york football giants.
Good morning, everyone.
Ugly that was.
It is monday, september 20 third.
Joining me as always, sara eisen and scarlet fu.
Guest host for the hour is jonathan tisch.
Also, the owner of the new york giants.
We will get to that in a bit.
The bengals had an upset against the green bay packers.
We will talk about the giants and it fit.
Overnight news, china's manufacturing gauge increased to a six-month high.
Adding to fuel that china is rebounding.
We do get a regional index.
The chicago fed activity index comes out.
Corporate events, earnings, after the bell.
Microsoft set to unveil the new surface tablet today.
Also watching leaders to send upon new york city.
The united nations kicks off a general assembly meeting this week.
The clinton general assembly meeting today.
A lot of traffic.
A lot of traffic.
Hotels are jammed.
We are going to take a helicopter from work today.
That is your morning briefing.
With who has company news.
This transcends company.
On july merkel winning big in germany.
Winning a third term as the christian democrat took 31% of the vote.
Meantime, the summer slowdown in trading revenue hammering citigroup.
The bank reporting more than a 10% drop in revenue in a earnings in mid-october.
A slight and fixed income trading revenue has hit deutsche bank, barclays, and credit suisse.
Jefferies reported an 88% plunge in fixed-income trading last week.
Netflix another winner at the emmys.
Taking home the award for best director of house of cards.
The first time in online video distributor has won a major category.
Hbo grabbed seven emmys.
I thought kevin spacey would win for best actor.
I did, too.
I thought he did a terrific job.
Who was worst dressed?
I did not approve on- -- heidi klum's. crunch time and washington, d.c., with an october 1 deadline.
Not to mention the debt ceiling deadline looming for the middle of october.
Chatter growing louder on janet yellin becoming the next chairman.
Peter cook joins us with a very crowded agenda in washington.
The latest on the shutdown.
Seems to be a serious approach going nowhere.
The first deadline.
Perhaps he will cme-award winning performances on the floor of the senate.
Conservative republicans will be leading the fight in the senate, trying to force harry reid to include votes on obamacare.
Leaving language in the house bill that came over at the end of the week.
They are not going to be successful.
Will take all week to play out.
Saturday the senate will wrap things up.
The question at that point, will john boehner point?
The idea of john boehner reminds me of the movie :""lincoln.
Is there a threat here to his future?
I do not think on this one.
Maybe the big reason for that is ted cruz.
The republicans have a new target, someone to blame if this goes down in flames.
That is the republican senator from texas.
He said we should wage this fight and did not have an end game in place.
A lot of republicans angry that he did not grasp the mantle and win this in the senate.
He could cause problems in delay things.
His job security is not great.
I think we will see that again in the debt ceiling.
If he does not get something to show for efforts on the debt ceiling, he will be in trouble.
Congress divided on the debt ceiling.
Are they united on janet yellin becoming the next fed chair?
I do not know if united is the right word.
Certainly that is the expectation.
Her name will come up soon.
I spoke to a number of senators late last week.
They did not have definitive information, but that certainly is the expectation.
There is genuine support for it on the democratic side.
One senator said they would not vote for her.
At the end of the day, certainly the expert nation i here on the hill.
Thank you for joining us on this busy monday morning.
A lot to look forward to.
Potentially a fed decision.
Could come any day now.
Someone eclectic to get your hour started.
Jonathan tisch cochairman of loews corporation.
Co-owner of the new york football giants.
Author of three books, including power week.
Under full to have you here.
When we talk about football later.
Washington in the spirit of the american economy.
What is cool is you are perceived to have a hotel.
As you and i know, a record of massive share repurchase around an eclectic set of dismisses.
How is business, and he unique washington?
We all need washington to help us and stay out of the way.
Regulation could hurt any business.
We are in five separate distinct industries.
Three of them are some aspect of energy.
Boardwalk pipeline partners is cna insurance based in chicago.
The founding subsidiary of what is today loews corporation.
Sounds like the perfect question of the affordable care act.
That is one, but also the energy policy.
Very much though.
Energy companies look to washington for direction.
Are you getting it?
A little bit.
We try to work with them and understand what is going on.
Do you want obamacare to be resolved so you can move on to other things?
I think we wanted to be resolved so we can move on.
We focus on businesses.
We let subsidiaries make decisions that are relevant to them.
We are there to provide guidance , credit necessary.
We want to move on with his justice.
How is the travel business?
Is it is some of them you as you look at your different loews properties?
Broadly the travel industry is doing well.
In many places outpacing the rest of the recovery.
The travel industry still creating jobs, especially here in new york city.
Broadly we're doing well.
Some markets are not as robust as others.
If you look at florida, new york city, the big, global markets, we are doing well.
Rex-- were you in carolina yesterday?
I was at the first two games we lost so i decided to break the spirit and watched from home and there were interesting words.
Did they sedate you?
I was calm.
My son was there to keep me on the calm side.
My wife was pacing around.
Those of you worldwide, manchester united.
The new york giants are imploding.
Are you surprised?
I am surprised because tom coughlin is a first-class coach.
Players that are talented, but obviously something is not working.
Yesterday's game was -- what does this performance do for the bottom line?
The giants are fortunate we sell a lot of tickets for every game.
Tremendous marketing partners in terms of our own teams that the companies work with us and then in the stadium.
If you look at the four corners and metlife.
Though sponsorship deals will continue whether we win or lose.
Barely companies and fans like to be with winners.
-- clearly companies and fans like to be with winners.
We have to turn this around.
What is your to do on monday and tuesday?
Is there a conversation?
John barrow, it he is ceo of the t -- john mara is ceo of the team.
The partnership goes back to the years.
We have learned to work together well.
John has grown up in the sport.
Well respected by us and the owners.
And we will continue to talk about the business of football and bring the super bowl to new york.
That is coming up.
Good morning, everyone.
I am tom keene.
You hate the airport, bridges and tunnels.
Why can't our airports be likes erect or copenhagen or even dubai?
tisch blames the new york giants.
In search of airports that work.
An offense would help along the way.
Front and center.
Why can't we build is a rick airport?
We can, but we have to create the public/private partnerships that will fund these development or redevelopment.
Clearly everyone has infrastructure on their mind.
A big issue.
Multi billion dollars of conversation that will take place.
It affects the travel industry.
Here we are effectively asking people to come to this country from other countries.
We are inviting them to visit us.
They are coming from hong kong, india, dubai.
They take trains for 15 minutes downtown to the airport and then land at jfk or lax and spend three hours trying to get into manhattan.
They spend time going through customs and immigration.
Leads to a bad travel experience.
They say my trip to the united states was not enjoyable because of the process.
When you go to washington, what do you see that obstructs intelligent infrastructure spending?
Where is the money coming from?
They're starting to see public /private partnerships that are affected outlook wordier.
They are improved.
D spent $1 billion on the terminal.
So there is some hope we are starting to make differences and starting to make progress.
No one wants a new runway.
Some of the airports are at capacity.
What is the way to build a hotel right now, given the infrastructure challenge?
A big hotel or small to big?
When you look at new york city where we have 98,000 hotel rooms , new york city is the strongest market in the country.
They are coming in all shapes and sizes.
What is exciting about new york is not just manhattan anymore.
It is still not easy to finance a hotel project.
Some of the ones you and i are talking about are mixed use development and that makes it easier.
We will come back.
Jonathan tisch on the hope tell business.
-- hotel business.
? this is bloomberg "s urveillance." headlines coming out of germany where on july merkel is speaking after her big win in terms of her election victory.
Now beginning with a third term coalition partner.
She said she does not rule out contact with the green party.
These coalition talks are going to take time.
Democratic hearties should be able to cooperate.
Said she does not see a need for change when it comes to the european debt crisis.
Certainly now they have given her endorsement.
Was this a victory for mario draghi >? things have calmed down a lot.
If you look at some of the other elections over the past two years, leaders have not made it through.
The deadly mall attack in kenya entering the third day.
Police trying to flush out somali terrorists who attacked the upscale mall saturday.
68 people have been killed.
49 people missing.
Terrorists are from an all qaeda linked military group.
In bangladesh more than 10,000 demonstrators took to the street to demand a salary increase for garment workers.
They blocked a highway.
As -- prisoners took the number one spot.
Bringing up more than $21 million.
The horror film -- fell to the second spot.
I thought the tv festivities last night were such a joy.
Tv having a moment.
The quality of television good.
My unscientific opinion.
Many people watching sports over the weekend.
A watched sporting event in the united states.
The game is being cloned -- played at metlife statement -- stadium just outside new york city.
He and new york jets owner woody johnson co.-chaired the bid committee to bring the spectacle to snow-covered new jersey.
He joins us.
Do you believe in the fall murders -- farmer's almanac?
I do not because i know what they are saying.
I pray it is bitterly cold.
A few flurries are ok.
Does it affect warm teams?
Do they play different?
I do not think so.
The games leading up to super bowl sometimes obviously in an enclosed environment are played in the element.
If one of the warmer weather teams end up in new england for a playoff game they will play in cold weather.
The game started and was to below.
So everything leading up to the super bowl is played in the elements.
This year super bowl to be played in the elements.
Set to go as high as $2500. will you provide warmers for these guys.
We will provide all kinds of amenities.
Blankets and ham mourners -- hand warmers.
It was enclosed but 45 and not a cloud in the sky.
A jazz heritage of your regency hotel.
Tony bennett at halftime i do not think it is tony bennett.
I think it is bruno mars.
Done by the nfl.
We are only here to help with the arrangements.
That is the one-day game.
A huge success.
Do you perceive that as an opportunity for every other or every third year new york to minnesota to denver?
We do not know individually who voted for us.
There are a lot of northern teams that will say to themselves, if it works in new york and new jersey, why can't it work at patriots field?
Why can't it work in pittsburgh, chicago?
You bought the giants in 2010. how much more money is this the deal -- stadium making with the new name?
We have done well in football but very successful in terms of other events.
Concerts and tractor pulls.
We do tractor pulls at metlife stadium.
I cannot believe we're are talking about football in 2013. i was at a football game and felt like it was 25 degrees.
It was great seeing the yankee greats.
This was mariano rivera retiring.
The mast -- last major league or to wear that number.
How do you nurture him?
Depends on management as always.
Just like running a business.
When you have a good ceo, strong leaders, they are the ones who can step in at a time like this and talk to the players, especially the younger players fresh out of college.
They have been doing this through high school, college, and they need direction.
They are probably saying what is going on here?
Always comes back to management.
Just like running any business.
Coming up, a discussion about winning in the board room -- women in the boardroom and why we do not see more of them.
That is coming up next.
? this is bloomberg "suveilla urveillanc u.s.e stock.
Futures little changed"right now . this after china's pmi expander that the fastest pace in six months.
Goldman sachs restructuring the bond fund.
The move is an effort to lure customers to the system.
The ability to trade or protons has dropped sharply in recent years as they have struggled.
Jpmorgan teaming up with bill and melinda gates to tackle disease.
They will form an investment fund to fight disease in low income countries.
The fund will finance the development of technologies to fight malaria, hiv and other diseases.
Microsoft may roll out the new surface tablet.
Expect it to make a version with a smaller screen to compete with the ipad mini.
The new tablet will be lighter and thinner because of a chip that uses less energy and does not require a fan.
That is today's company news.
You're talking about lows.
The infamous home of the power brick dust has been closed for renovation.
An omelette costs a mere $24. the crown jewel of the empire.
Next up, construction in chicago.
How do you make sure the big shots comeback for power breakfast?
We have had a temporary home two blocks from the regency on 61st street.
We have been able to see a lot of our morning friends on a regular basis.
When we reopen on january 16, we will spread the message the power brick dust is returning.
-- power breakfast is returning.
People are spread out all over the city.
And my very unofficial polling, no one has really said i will miss the other place so i am not coming back to you.
People are anxious to rejoin the spirit.
All of us have seen so many botched renovations where the character disappears.
How do you not screw this up?
A very good question.
Considering i picked every fabric and lamp -- did you have a design team?
That is not how i work.
We have consultants.
Great design teams.
Architects and interior designers.
I wife who comes through every once in a while and says maybe you want to reconsider a little bit.
We are very optimistic that we will reopen with a brand-new hotel.
We have done every room.
We have reworked and rebuilt the lobby.
Bringing in the san ambrose group's. we are going to take over the food and beverage.
We're really going to address what the hotel needs to be for today and many years to come.
I have grown up in this hotel.
No one knows it as well as i do.
We still have coworkers that have been there 50 years ago.
They will rejoin us in january.
We are very excited about the future.
We spent 100 million ensuring it remains competitive and futuristic.
What does that entail?
What does the hotel customer want now versus five years ago?
They want good wi-fi.
They want to be able to get food in the lobby.
They want to be able to connect with other people.
They enjoy sitting in an open space.
Do not necessarily want to sit in their room and work.
The hilton on 6th avenue has ended room service.
That is a big hotel.
We are doing it in some places.
We have a hotel on coronado island.
We built the grab and go.
So we have stopped serving room service from 10:00 until 6:00 because grab and go is open 24 hours per day.
We are trying to experiment and see where it works for us.
Some people want room service and some do not.
Also, people want to be with other people.
The new york giants, do they tear the hotel apart?
Hockey players are the worst.
Eternities i would say.
This is a good way of filling rooms that may not be reserved in advance.
-- eternities i would say.
Good to have you here to talk about the hospitality industry.
Jonathan tisch will stick with us as the guest host.
As we get closer to the open, u.s. stock futures right now little changed.
The yield on the 10-year yield little changed.
A lot of housing data due out this week.
This morning, not so much.
We will continue to monitor how stocks are trading.
Lex good morning, everyone.
All of our interviews, including james bullard at bloomberg tv plus on the ipad.
I am here with verizon and scarlet fu.
Guest post this hour, jonathan tisch of loews corporation.
What about all out or having it all?
A big contradiction for women in business.
Debora spar, president of the all women's college in new york.
Her new book, wonder woman come of the quest for perfection.
The theme is about how a lot of choices have led women to search for perfection.
What do you propose we do to change that?
I think we can start off by acknowledging no one can have it all.
At least not at the same time, and probably not even the course of a life.
What i am trying to argue in the book is we need to set the bar a little differently.
Does not mean that saying to women you have to give up, pull back but say let's be realistic and say everyone makes choices in life, so how can young women start to think about choices so they are not setting themselves up for failure?
You grew up upper-middle- class.
Not everyone is in your same position.
Is the quest for perfection across cultures or rich world problem?
It is a good question.
I think what i am describing in the book, but it has been really interesting to me the response from people, whether they are in the military or single moms or in china and india, women's lives right now are chaotic.
I think that cuts across place in socioeconomic culture.
I love this.
Give me sons called rachel to jacob or i shall die.
My messages, this is a really serious book.
Not pop psychology or anything.
Your perspective and attempt.
What is the single message to the viewers who have a 13-year- old daughter who is a mess because of the different pressures of life?
Really hard for women 13-18. the message is try to get them to calm down a little bit.
Try to get them to understand you have to find what you are good at, pursue that but you are not going to be good at everything.
If you have a 13-year-old that is a stock -- fabulous soccer player, maybe she should give up on that way.
We have to calm the kids down.
I know sheryl sandberg was a commencement the curve.
See 00 of facebook.
-- coo of facebook.
Do you like her message?
I think she has done everyone a huge service by writing that book.
People may not agree with every message in it.
I think she has put the whole issue of women and ambition and leadership right out in the mainstream, which is really important.
I would like to get your thoughts on the institutional thoughts.
Doing a lot to address curricular murrells and the way things are done socially to balance things out.
Some people criticize we are going overboard.
Is that necessary?
I think it is necessary.
It is a wonderful place, great people.
They have a real issue with gender.
Finally starting to tackle it.
Most women approached sexual relations differently than men.
That is a surveillance exclusive.
Do you really see a difference there between all- girls schools were all boys schools?
Not for every kid.
There is a real argument to be made by single sexual orientation school.
Being -- single-sex schools.
When you have girls and single- sex education, they can focus on finding themselves.
President of bernard college.
? good morning, everyone.
I am tom keene.
Scarlet will not mention the new york giants.
Joining us is betty liu.
I get to put cooking skills to the test.
I will not get anybody sick, i promise.
Who does not love celebrity chef?
Mario batali will be on to talk about one of his programs that these poor children in south africa.
He has joined up with a model to put this in place.
Back here in new york, at one of its restaurants he has raised the minimum wage, weighing in on the whole fight.
He can afford to.
A very expensive restaurants.
Passing the prices on to customers.
Angry birds creators will be on.
They will be on the program.
Helping to kick off advertisement week.
They will talk about the expansion and what is next in the angry birds franchise.
My kids are obsessed with it.
It is amazing how mesmerizing the game is.
Mario batali, crocs and all.
We start with blackberry.
On friday the stock punched 17%. now in the eight dollar range.
The latest is fairfax financial has contacted write a equity firms to line up a fire.
In the premarket, blackberry continues to tumble.
So this is further south from friday at?
The strategy of blackberry now is to focus on the corporate customer.
A big deal in canada.
Some of the economy ministers are out of the weekend.
A huge source of jobs and research and development.
Rex the financial times reporting citigroup could report more than a 10% revenue decline.
-- the financial times reporting citigroup could reject more than a 10% revenue decline.
To be responsible at your 10- 1 reverse split.
You should also mention that.
This is an interesting trend with higher interest rates and the whole trading activity of big banks.
Jeffries gave us a preview.
A quick mention of microsoft.
The new -- they may unveil the new edition of the surface tablet.
Are ready had to take a one billion dollar write-down of unsold inventory of the old tablet.
I have not seen this at work.
I saw one in miami.
Maybe you need to get out more.
Coming up, the agenda with the u.n. general is simply meeting this week in new york.
We will talk about some of the important issues.
They will discuss syria and iran and diplomatic richter is.
Streaming on your tablet and at bloomberg.com.
? good morning, everyone.
Bloomberg "surveillance." jim o'neill will join us.
Legendary at goldman sachs.
Jim o'neill manchester united.
Did not get it done this weekend.
With us tomorrow on bloomberg " surveillance." manchester united.
We are back on sara eisen.
Re-- i am sara eisen.
Scarlet has company news.
We start with twitter looking for a pre--ipo credit line.
And talk -- in talks with banks for a credit like.
Facebook and zynga follow the same path, taking advantage of favorable lending conditions.
Netflix wins as a amazed.
A bit planter took home best director for house of cards.
-- david flincher.
Apple may report record sales for the new iphone.
Analysts a long lines have signaled huge demand for the devices.
This would easily top the opening record of 5 million units.
That is today's company news.
Now, time for the agenda where we look at the major stories shaping the day.
Jonathan tesh joins us for this.
Here with us as well, debra spark.
Kick it off.
I am looking at janet yellin.
The top contender to replace ben bernanke.
Did see a decision -- could see a decision as early as this week . a lot of focus on what she will do, especially with regards to quantitative easing.
She would make history.
That brings us to debra spar.
Do we need a woman at the top of the federal reserve?
We need a qualified person.
No question janet yellin is immensely qualified for the job.
The fact that she is really qualified to take on a really crucial position in the world economy.
You do a fabulous job on the fixed equality -- on the physicality.
Is part of the janet yellin debate, the image?
I hope not.
Certainly what we have seen in all women is very high positions of power is it is still an issue.
Think about how much attention hillary clinton's pants not -- pantsuit got.
We are not janet yellin to look at the character or a sticks.
The reason i ask is a woman, there is still risk taking on wall street.
They need to be a strong regulator.
A report suggesting they would be a tough regulator later.
They need to have a steady hand and it comes to monetary policy.
If you look at an increasing number of the regulators.
We are seeing a good number of women.
Mary schapiro has been very impressive coming in.
We need a woman at the top of the fed, i would not go that far, but i would say janet has the characteristics we need.
In corporate boardrooms as well.
15% of board directors are female.
It is a big issue.
I think we should be more open to women because of all the issues we are talking about.
Asking debra about it will pay.
Making progress in some areas but in others we are not.
The good news is women are up to $.78 on the dollar.
Still only $.78 on the dollar.
Lots of reasons why that is occurring.
Does not seem to be moving quickly at all.
You call this a 15% get up.
They top out at 15%. what can we do to make sure we get to 20%? it is really hard.
Look at what the europeans are doing.
They are putting photographs in place.
That is working numerically.
I do not think culturally we do well.
Doing need more chemistry?
We are putting women's colleges aside.
We do not have nearly enough women going into math, physics and computer science.
If you look at the future of the economy, computer science will play a huge role and girls are not going into it.
Jon tisch grew up in the regency.
You did not have to worry about this.
The chipmunk has died.
You have to go bury it in the backyard.
In america right now, i housing boom.
We have a place to bury the chipmunk.
In my day it was turtles that you used to be able to buy at the circus.
I had one of those.