Aged four years for the house and senate to agree on a budget.
Yes, virginia, there is a santa claus.
He was worse than a dog and perpetuated thrice cursed ax.
North korea eliminates a leader.
It is what it feels like.
Dj dave buren.
Good morning, it is "bloomberg surveillance." live from our new york headquarters.
It is friday the 13th.
I am tom keene dancing on stage with scarlet fu and she had to come into hang with van vburen.
For those in the united states, older than 29, dj is not like we remember.
Those of you in the united states?
We just saw the ipo a few weeks ago, it is huge in the united states.
Last night the white house past the first bipartisan budget and four years, clearing the way for final senate passage next week.
Some people say it is not much of a deal.
Today in the u.s., late today at 8:30 a.m., we get pti numbers.
Tomorrow is santacon in 300 cities and 44 countries.
Kids, teens -- i've seen people in their 20s -- dress up as santa and get their party on.
Aka, get drunk.
An estimated 30,000 participated last year.
Snow is expected tomorrow in new york city.
I think people who participate in santacon won't mind the snow.
Let's do a data check.
I'm going to go through this quickly.
Futures advanced after three ugly days.
Yield moves higher.
Indivisibility of 3%. weaker euro, weaker yen.
Onto the next screen.
This is that risk on the economy doing better.
It is actually a big deal as we go into the weekend.
Weaker currencies, dramatically weaker australian dollar.
Really on the support of the australian dollar hanging on by a thread.
What a night beginning with the twitter block story, the north korean story.
We need to get too busy front page.
Let's start with north korea because the countries executed a senior official.
The country executed the uncle of the leader kim jong-un after military trial convicted him of trying to overthrow the regime.
He was seeking a foreign investment and he was overseeing special economic zones near the border with china, looking to open up the economy, perhaps.
I'll of this news through concern and condemnation from -- all of this news through concern and condemnation.
It is not about what he did, but how they reacted.
The factors in this happen is making other countries uncomfortable.
This is a decade issue.
The execution was swift and furious.
I urge everyone to read the language of the english to korean statement.
He was worse than a dog.
You perpetrated thrice cursed ax.
-- curse acts.
We also want to talk about our second front-page story, on the cover of "the wall street journal" and covered in bloomberg as well.
Considering making big changes.
Restructuring industry relationships by scaling back with some wall street banks.
They could also be changing the firm's name, getting away from steven a cohen, perhaps.
A name change doesn't necessarily do it, but i don't think it is sac changing its relationship with the street.
They were able to get prime brokerage, great financing.
Now that steve cohen is returning billions to investors, changing to a family office, if you're goldman or deutsche bank, why are you going to offer them premium services?
You're definitely not giving rangers tickets anymore.
Many people said he was the one who interfaced with the street and left.
The firm is changing.
1.8 billion dollars in fines, you have a problem.
Final front-page story is proof that washington can get its act together.
The house passed a budget.
It has by pretty wide margin.
The senate is up next week and will vote on using the 63 billion dollars in spending cuts and looks like we could avoid another government shutdown until october 2015, although, the lawmakers who negotiated this are not exactly excited.
They have been talking it down from day one.
There it is.
It is a budget deal for the moment.
That is the front page this morning.
We have the perfect guest host to speak about this effort in washington for former senior adviser to the president, manager of the president's most successful 2008 campaign, david plus.
I have to go to the y now?
This did not happen before.
What has changed in the air in washington?
Is hard to believe we're not going to have a christmas season affected by washington.
I think it was a result of the shutdown.
Both sides needed to prove washington could function.
It is a small deal, but a big change of operating.
Is it because of the calendar and we are closer to the first tuesday of november next year?
The hatred to washington a stronger than i've ever seen.
These guys and women -- which you run your campaign different in 2008 if the hatred is like it is now?
It was about the economy, about iraq.
Now it is about basic functions.
To people at home, they will be breathing a sigh of relief.
At least washington is not going to create harm.
That is all they're asking for.
What do they do next?
Today tackle a different subject or do they tackle something silly like banning cell phone use on airplanes?
That is a great question.
I don't think we know.
It could be they say, this is it.
We're going to go into the election year.
If they were choosing a lead, they would choose immigration reform and a bigger budget deal.
David, i guess i refuse to congratulate washington.
This deal is so small, not touching anything that counts, it is like scarlet and i congratulate and our sons's for not punching each other in the face.
I would like to thank both of you for wearing the same color.
It is not the same color.
It is a small thing.
I'm not willing to say this is great, i'm so glad to see that agreed on a deal.
Would you really call this a deal?
Well, and lets government function, which is a big deal.
But you are right, they should not get an allowance for this, they should just be allowed out of their room.
That is what voters think, just stop it.
There were things that both parties did not like.
All they can do right now is walk a be steps and hopefully they will do more.
I want to switch gears.
Second term, has been rough for the president, for the white house.
Are the people you know what the white house simply worn out?
Is it administration fatigue?
I don't think it is fatigue.
It is been something every month whether it is in sa, syria,. i think it is very important that the budget has settled and story begins to fade a little they have an opportunity to lean into the economy they haven't been able to do in 2013. do we need more fresh blood in the west wing?
David plus is coming back.
By your time.
--bite your tongue.
This is not because people are tired.
Part of this is just fans connor -- events landed on the desk and added to them.
There've been execution issues.
How are you going to make sure you have confidence going forward?
This law needs to be executed well for years.
If you had been there, none of this would've happened.
But google may take on intel, one of its biggest rivals.
Considering making it's only -- its own chips.
Google believes it may be able to design a better chip to manage the interactions between hardware and software.
Microsoft is considering qualcomm slammer to man for top spot.
He has emerged as a candidate.
This is according to people familiar with the matter.
He is the chief operating officer of qualcomm.
There are several external candidates as potential successors as well.
Peugeot shares slide.
The stock fell more than 10% on word that general motors would sell at seven percent holding.
They teamed up last year to save money, but have struggled to meet goals of the partnership.
That is today's company news.
We will have more on that microsoft story when we come back.
We are going to be talking about some competition for alamo lally , another name and a half of that top job.
This is "bloomberg surveillance." ? stay with bloomberg television all day.
Stephen miller, aig chairman, the king of rightsizing.
"market makers." we're not talking steve miller band, but steve miller the turnaround kid.
If you look at what this guy has done with aig, it will be great to get -- ? i'm never ready with anything with you.
I love steve miller band.
Before tom keeps singing -- we are talking about how there is a new contender for the microsoft ceo role.
We have all heard alamo lally -- alan mulally's name thrown around.
But what about qualcomm.
Steve ballmer, the current ceo, recently cited qualcomm and apple and samsung has taken advantage of the shift to mobile.
Mobile is where microsoft is lagging behind and needs to make up a lot of lost ground.
He is on a list of several antedates under serious consideration.
What did you specifically do at qualcomm?
He is the number 2, 44, joined the company as an engineer.
44? he is a baby.
His current boss over at qualcomm is 52. he is the son of one of qualcomm 's founders, so he probably isn't going to step aside anytime soon.
Reading between the words come he can't have to think, in order to move up, this guy has to move companies.
What was the response to the sell side?
They have moved on in terms of who is going to be the next ceo to what the next ceo's challenge will be.
It is noted that microsoft just sold 3.5 billion euros of bonds last week.
He said this is tied in with the next announcement of the ceo.
Whoever the next ceo will be, there will either do a big buyback or perhaps a one-time dividend to coincide with that.
This story was interesting and has become fastening.
You're talking about pedigree of executives.
We have david plouffe with us.
You have mulally out of kansas as an engineer, particularly in aerospace.
He moves to autos.
Can he go to tech?
Scarlet introduces us to a prodigious tech.
This is a guy with serious engineering.
Do you need leadership or tech savvy?
I'm asking david.
Do you need more narrow abilities as an executive or do you want to go bigger, broader and delegate out those miller -- narrow skills?
Full disclosure, i do some work for microsoft.
You need a leader.
This is almost like the vatican.
There's a lot of interest in this election.
Everybody will be waiting for the white smoke.
Even our interest in the economy in the direction, the mobile challenge, rising competitors.
There is great interest.
My bias is, you need a leader.
The leader doesn't mean anything without a strong senior team.
But a leader who knows the business.
If you're qualcomm and 70 walks in who knows out of your corporate leader but doesn't know the first thing about your business, -- who walks in and knows they are corporate leader but as another first thing about your business.
You need to bring everyone along internally and externally.
You made a good point.
The distinction is more about age.
Mulally is 68. there is a big gap.
Some people are not ruling out alan mulally entirely.
The star has faded a little bit as a candidate.
They point out there is one option which would play a role.
He takes the job for a couple of years and helps groom an internal candidate.
We know the head of the cloud services division of microsoft has said he would stay regardless of who gets -- i would say this has become fascinating.
This is interesting, but now this is really, really interesting about how a company goes about this.
It talks about the direction the company would go.
But there's a huge difference between a 68-year-old and 44- year-old, i would argue that.
68 is the new 44. look at martha stewart.
Look at you, tom keene.
I am talking to van buren later in the hour.
And you say 68 is the new 44? i love you.
David, this comes down to the plethora of great managers.
Yes, it is like efficacy.
If you're to say, come to the white house and work.
How do you get someone to change their life and go to a company?
I think there's financial considerations, but it comes down to is it something that speaks to me?
Is their passion?
Are there good people?
You're nothing without good senior people.
You have got to have confidence there are good senior people or you will fail.
All of a sudden, this is way cool.
There is a timeline in place.
Microsoft wants to appoint someone -- this makes me want to ask about the president and the white house, the administration being so insular, not reaching out.
Obama might be a great leader and a smart guy, but one of the biggest criticisms around him right now as he doesn't necessarily have a team with the chops to are helping him.
Luckily, we are out of time.
I disagree strongly and we can talk about it.
David plouffe with us this hour.
We will talk about your president.
And speaking of management, on the cover of the new "bloomberg businessweek" the first female ceo of general motors.
That is out on store shelves today.
? this is "bloomberg surveillance." happy friday the 13th.
Let's kick it off, americans are confused about it going.
Just 42% of people polled by bloomberg could correctly identify bitcoin as a virtual currency.
6% said it was an xbox game.
Another 16% thought it was an iphone app.
46% had no idea what bitcoin was.
Hopefully, matt miller was not in that survey saying that.
In a world of regulated currencies, goldman sachs is breaking ranks and predicting a drop in the dollar.
Sing the greenback will weaken next year and fall to $1.40 against the euro, a level that hasn't been seen since late 2011. the wall street consensus is for a stronger dollar next year.
The dot says not so fast on in- flight phone calls.
Transportation officials are considering keeping the ban on in-flight phone calls in place.
The news came after the fcc voted to explore lifting the ban.
The transportation overseas air travel circuits the last word on the matter.
Those are your top headlines.
I don't want anybody talking on my flight.
But i would like law makers to focus on more important things right now.
Thank you very much.
The president is going to have to step in on this.
He will be a former president at some point.
No selfies on airplanes.
I'm going to stay with washington for my morning must- read.
A political advisor talks about hillary clinton's are full dance of sticking close to the president to secure the base, but also distancing herself from someone who is unpopular policies.
He says -- even bill clinton may not be able to help her out there.
Article question for our david plouffe -- a critical question for our david plouffe.
Secretary clinton had her hands tied by white house.
It was in controlled state and they learned that lesson and john kerry is more control now.
Is that a true discussion?
Know, in fact, he was picked because he was going to have to spend so much time on the economy that he needed the secretary of state with the footprint and ability to represent the country and execute business.
And she did that.
When he saw secretary clinton travel anywhere around the world, and such a major story.
Who has the upper hand in determining foreign affairs for the white house?
It needs to be and should be a collaboration.
It is a balance.
But under the obama white house -- every white house, there is more centralizing of control.
The secretary of state, secretary of defense, these are people with huge ability to help shape -- but there is a stark contrast with the bush administration where it was run out of the white house.
It was presumed john snow was circuit treasury.
Do you believe your white house was more delicate-driven -- delegate-driven?
We had strong people.
The planning, the policymaking organization is done in the white house.
But these are voices who were heard and ability to shift direction.
But there's always tension between agencies and the white house.
We talked about this earlier.
I said, has the president called you during this?
He said, not once.
Should obama be reaching out to the leon panettas of the world saying, "help me out, brother"? he talked to these people all the time.
But where are we right now?
Fixing health care is basically in the ministrations ability, they just need to get it done.
Dealing with congress?
Small deals should not be celebrated, but good we are able to at least not shut down.
This rap on insularity is one i've never bought, but i do think reaching out to business in particular is important about what we can do to help the economy.
David plouffe with us this hour.
Friday the 13. and we are going to talk about the media entertainment industry.
They are poised for growth.
What about dealmaking?
? good morning.
"bloomberg surveillance." what an uproar last night.
Our twitter question of the day -- you can block someone you don't like.
Stephanie ruhle can block tom keene so she can avoid it.
They changed it from a block to a mute, where you could rush i could be an idiot and staff could mute me where she would not see it being an idiot -- but with the rest of the world?
The rest of the worldwide.
That's not fair.
David plouffe, you and i last night witnessed this first hand.
At 10:35 last night, they fully relented.
This is the power of the new social media.
Companies use to wait for the new cycle to make a decision.
They had to react right away.
I suppose this is done for advertising reasons.
Facebook is facing some of the same issues.
The damage control, crisis control is completely changed in 2013. so different from johnson & johnson and tylenol of 20 or 30 years ago.
But as it relates to twitter and blocking, you see more public service announcements about the dangers of bullying and you hear about kids and their need to learn to read.
What do you think happens on twitter?
Unless you have the right to block people.
Just a huge deal we see with the twitter vigilantes, to shutting them down.
Trucks that is a great term.
Where did you get that?
It is a route -- it is about revenue.
Stephanie is blocking an idiot, you're blocking an idiot.
I am blocking the sponsored tweets.
That is where twitter the company is an issue.
Yes, stephanie, you don't want perverts.
It is the advertisers.
They want the advertisers.
As an example, wanting to send me a tweet so i know they are smart and i can block them.
That is what they're worried about.
What's nice segue.
-- nice segue.
a lot of headlines involved in media right now.
Amc getting ready to go public.
Media industry really no longer held back by uncertainty.
According to a new report from ey, the top executives see stronger growth and rising m&a activity.
Tom connolly at ernst & young is at the heart of discussion on how we watch tv, how we use our mobile devices, how we get our media.
Versed question, are these executives that are feeling or countable about the future, are they doing so because economic environment has improved or is it because of change?
There've gone through such turbulence in terms of the whole stress of the 2008, 2009, 2010 timeframe moving into getting adaptive fuel to the business platform, a lot is taken place.
Today they're looking at stable for roughly economic growth, modest at best.
Some uncertainty if you look from a political front.
But an acceptance of their business platform.
I think there's a higher degree of confidence moving forward, more offensive, if you will, that defense of.
Yet when we look at the survey results, 74% of these media and entertainment executives expect he'll volumes to improve.
Yet only one quarter of them would pursue acquisitions.
I think the 74% is really a reflection of the overall expectation in the m&a market, which has been very depressed over the past two years.
The fact 25% say they look to do a deal in the next 12 months, i think that is something we expect likely to be greater than the 25%. don't you think partnerships are inevitable?
No one is going to say, i'm going to watch only nbc for the night.
When they want to program for their audience, they need to partner with nbc.
No longer are people just loyal to a single brand.
They get to pick what they want in those media companies need to follow.
I think alliances and joint ventures will be a bigger part of the scene, but in the more emerging markets, outside the states.
I think of the mature markets, we see a likely greater sense of consolidation.
Is the bottom line they've seen a huge slide in equities, they have a cash flow guide path, it in the new new is just to continue to cut basic expenses?
I think that as an outcome, but i don't think it is the ultimate goal.
You have technology and new entrants into markets coming.
Part of the reaction to that is to consolidate and go forward.
If you think of the music industry consolidating -- what are we down to, two accounts?
A little more than that.
Comcast, nbc universal, extending content.
That is my word for 2014. distribution.
Where will the distribution be in 12 months?
I'm not sure -- comcast buying nbc, acquiring more distributed channels?
Distribution enterprises will focus more on acquiring content.
I think the future looking out is one where they see over the top challenges, if you will, turns of content, how it is the bike consumers.
-- how it is seen by the consumers.
Look at the music industry.
You would've from a package deal to all a card.
You will see that on the video side as well.
Getting into content because it is going to be much more compelling opportunity.
For either side to get anything done, they need to seek a common ground in terms of pricing.
You are seeing some movement were both sides are little more drawing closer to coming to a price they can agree on.
How has that changed?
It has changed in a very positive way.
One thing the survey pointed out, the entertainment district, the valuation gap between buyers and sellers has narrowed toward 39% of the respondents indicated it was two percent or less.
That is a huge change in terms of where the mindset is.
-- it was 10% or less.
That is a huge change in terms of where the mindset is.
Who participate in the survey?
1600 executives from across the globe have participated in the survey.
It is all industries.
We then take that survey and we section it out by industry group.
David plouffe is with us.
Like me, he has a zenith tv -- with rabbit ears.
It seems like an adjusting conversation, completely removed from the sec and other government agencies.
Connolly's media business just racing by washington?
I think in many respects it is.
Look at tv.
I think we're not too far away from ala carte.
Which has ramifications.
They're controlling all aspects of their life.
It is inevitable it is heading in that direction.
I think washington has a hard time keeping up with a change of pace out there.
The cable industry chapter has picked up in recent months.
Is that because there is a sense that television has peaked?
Is assumed to jump the shark?
No, i don't think that is the case.
If you look at the cable industry, i think a number of things are taking place.
One i mentioned, over-the-top, which is a broadband play.
They need greater to graphic reach inside the u.s. you are also seeing global reach.
With john malone.
I would reduce that to screens.
Whether it is cinema screens, think of the screens.
The largest cinema operator in the world, china, u.s., what will they do when they can link post greens and advertisements?
Now think of the cable platform.
It is geographic reach.
Excretes and small screens.
Tom connolly, thank you.
Coming up on "surveillance" cloudy with a chance of storms.
Confidence disparities between the haves and have-nots.
? good morning, "bloomberg surveillance." friday the 13. stephanie ruhle joins me with scarlet fu.
It is time for our single best friday the 13th chart.
This economic outlook chart is looking like the confidence between the top, those who make at least $50,000 and bottom income groups, less than 50,000. you can see they were similar during the recession.
We have circled it for you.
After that -- actually, the circle does not show up.
That you can see.
The gap has widened dramatically throughout the recovery.
The problem here is that the middle to lower income group is a true driver of consumer spending and therefore economic growth.
They determine the pace of expansion, downturn, and recovery.
It is the lower to middle income group that really you depend on to drive the economy pass the 2% growth.
The all-important is the yellow line.
That is over $50,000. david plouffe is with us.
This is the kind under him -- this is the conundrum of the moment.
What kind of economics is going to work to help us with our income inequality?
It is a big concern because the scale is massive.
Are there solutions to address it?
That is a statement that both republicans and democrats can agree on.
Has our economy changed?
Things like education, minimum wage.
The divide cannot be more stark.
The good news, those under $50,000 feel a little more secure about their current economic situation.
Not great, but a little more concerned -- a little more secure.
Because of technology and all the changes, globalization, there is roof concern.
Particularly in the midwest, south, where some of these communities have been devastated.
There is a lack of hope.
I think part of this is washington has to do a lot more to help.
Does it reach down deep enough to really grow wages?
You talk about confidence and a makes me think of approval rating.
Clearly, the president has taken hits and the whole healthcare.gov thing.
It makes me think, why doesn't he come out not in a giant press conference and talk about how many people are signing up, but why doesn't he just sit down maybe do a charlie rose-style interview and just say, i'm upset.
This thinks this happened.
You think the president should sit down and say to the american people, i'm so disappointed.
Approval rating is about a soulfulness.
That is what we have not gotten.
I think he has said, we made a huge mistake and i apologize.
Three or four months from now -- i may be wrong.
The health care thing settles down a little bit, the economy continues to grow.
His numbers will come up a bit.
He is not running for election, but it is important for the support of the american people.
Is hanging bungled that, but going after others.
How about saying, this is how i'm feeling.
I think americans would connect with them.
I think he has.
Maybe he can do more.
There is huge disappointment.
People need health care and were prevented from getting it by health care and confidence.
That is fixed.
People are signing up an much quicker rates.
By the end of march, you'll have 5 million, six minus seven lead people on health care.
Staff just wants the president to say, i feel your pain.
All of the roles are changing in the music business.
One genre is taking a different approach.
We will discuss on "bloomberg surveillance." ? music now makes most of their money live on stage.
Its main product, the music makes pennies.
Spotify this week offered music on mobile devices for free.
The music industry is going through some changes.
One genre is jiving these changes, edm and electronic dance music, is the fastest- growing side of the business.
Dutch music producer van buren just got his first grammy.
He is been named the world's best dj, a record five times.
Our guest host david plouffe is here with us.
David, you must be thrilled to have him here.
First of all, congratulations on being grammy nominated.
You need to help us understand what kind of music you are putting out there.
When my mother says she gets why billy joel the pnm and gets nominated for grammys, she sees him at the p&o. what are you putting out there?
I'm writing most of my own songs.
I am a producer and dj.
It is a little different than standing on stage with a guitar, obviously.
Most of the stuff i do, i write myself and produce.
I love doing that.
Is there a lead singer?
I work with several singers.
I'm a terrible singer.
But nobody knows their names.
I work with the canadian guy called trevor guthrie who is amazingly talented.
Cristina alesci loves trevor guthrie.
How many shows can you do in four days?
Many people say that is why these edm artist can make so much money.
A regular artist, say madonna, canola do one show every day.
You're up there with your turntables and can put out a lot more.
And you are a dj, you look at the crowd and decide where you go with your set.
My set is not preprogrammed.
A look at the crowded thing, maybe we should play his terminal or uplifting or vocal track.
I never play the same set twice.
That is a big difference between a traditional rock band or group and a dj.
You can play every sound that is been recorded.
There is no set list.
how expensive is it for people in your world?
You spend so much time splicing.
I love girl talk.
I wonder, how to make any money because it is beastie boys, madonna, all in one song?
I don't use a lot of sampling.
Most of my stuff is created by myself or guys to work with in the studio.
It is just something that came about over i think two years.
You go into the studio, come up with this pn o riffe, put it away, then come back to it.
When i'm on the road, on the plane, on a laptop, i try to create a baseline of drums.
Then i combined it in the studio.
That is when he gets finished, in the studio.
It is about creating ideas and adding it together.
From a branding standpoint, what do you do about the fact that edm is so closely associated with party drugs?
I don't use drugs myself, for example, and i think it is silly that people need drugs to have a good time.
I try not to be involved with that.
I guess when you go to rock concerts, stuff happens there, too.
For some reason, this edm scene has that stigma of drug misuse and i think it is very silly.
I do know, watching 21-year- olds bounce up and down for six straight hours, one might assume it is drug-induced.
You could be wrong.
Sometimes people just go out and have a good time.
This music is so positive -- powerful.
I like to focus on the positive.
I feel great just listening to the music itself.
I hope it is a natural high you get from the music itself.
What is the relationship with the traditional music industry, the labels, for instance?
I started my own label.
Sort of a necessity.
Traditional labels were too stuck in her own way of thinking.
When i started my own label, i found a guy, a good friend of mine, and he was one of the first -- we were one of the first labels to sign up with itunes and had a deal with them.
We were able to communicate directly.
You don't need a label in the u.s. anymore.
We run the release of "this is what it feels like" from the netherlands.
We don't need the u.s. label per se.
We work with radio promoters, but we do not work with the u.s. label.
But if this was 1993, you would have to have and are guys with you signing on and getting a ton of your money away.
Internet is a great way to communicate directly with your fans.
You can say directly, here is my new track, check it out.
It's on facebook or youtube or spotify.
It is a great way to communicate directly.
This is a whole new world opening up.
The music industry is catching up, absolutely.
When you watch beyonce, huge name, she suddenly is dropping her record in a way you would not expect, quietly, with the announcement -- surprise.
At a week when lady gaga is spinning $25 million promoting.
What is the new model?
It is interesting.
People want to be in touch with the new artist.
They want the feeling they can almost touch the artist through facebook and you don't need a big promotion campaign.
You can just create a huge fan base and have a lot of followers on twitter and facebook.
Tom keene is a musician.
He is an artist.
You are a musician and artist.
What inspires you?
Who inspires you?
The honest truth, i have a weekly radio show and i get so much music sent every week.
That is what usually inspires me most.
Listing to other people.
Every week there is a trac ticket since to me i'm like, wow.
I am a dj.
I go over new stuff every week.
One-word answer, your favorite artist of all time.
Tom keene one said he did not like coldplay, if i recall.
Make you so much for joining us.
Grammy nominated dj.
Let's switch gears and take a first look at some photos making news today.
We start with cuba's president paying his respects to the former president nelson mandela of south africa.
This was yesterday.
Mandela has been laying in state for the past three days and will be buried this week and in his hometown on the eastern cape.
Cuba's president was the focus of old white attention when he shook hands with president obama.
That was unexpected.
David plouffe with us.
How did that happen?
I think it was organic.
I would say -- i would talk about the politics.
President obama won the cuban vote.
The first time ever a democrat has done it.
Younger cubans view this much different than older cubans.
They want to see some relief.
Next photo we want to show you is antigovernment protesters in the ukraine.
Creating large barricades to access to the square.
The tension continues to rise.
It will fester into the weekend.
Pope francis holding his first weekly address since being named "time" person of the year.
A poll released yesterday or wednesday showed a huge jump in popularity for pope francis for both catholics and non- catholics.
He is the celebrity pope.
You see the red hats in the audience.
I thought david ortiz was on the short list.
The pope also making headlines with his consternation of capitalism.
David plouffe, they do so much.
Have a great holiday.
Let's look at the markets.
Remarkably quiet today.
Euro is weaker.
The australian dollar is what i'm watching more than anything.
This is commodities.
Indonesian currency, new record weakness.
Much more for you on "bloomberg surveillance." ? it took four years, the house in the senate to agree to agree.
Yes, there is a santa claus.
North korea eliminates a leader.
And ben bernanke -- the beard returns.
We look at the art of shaving.
"bloomberg surveillance." good morning, everyone, this is.
I'm tom keene, joining me, scarlet fu and stephanie ruhle.
Worldwide, our guest host david plouffe joins us.
Stephanie ruhle will brief us.
Last night the house passed the first bipartisan budget in four years, clearing the way for final senate passage next week.
Today in the u.s., at eight: 30 a.m. -- at eight: 30 a.m.. if you don't know about this, tom, you better find out who did 20 and 30-year-olds dress up as santa and his naughty little elves and get the party on.
Last year an estimated 30,000 people participated in it.
If you are in new york tomorrow, especially in the upper east side come you'll see people in santa suits lining the streets falling down.
You walk by -- santa's little helpers?
They will make it work in mini skirts and boots.
In 10 each snow and five inch heels.
-- in 10 inch snow and five inch heels.
The firm may scale back its relationship with wall street banks as it becomes a family office following its insider trading settlement.
Microsoft is shortlisting qualcomm's number two for the top spot.
This is according to people familiar with the matter.
He joins microsoft executives along with several external candidates like elma lally afford as perc al mullally afford as ballmer's successor.
That is today's company news.
It is a disruptor.
Last night the house said ye a to a budget compromise.
Governing by crisis is officially over except for the testy debt ceiling deadline.
She is a president of the committee for responsible federal budget.
My hat, welcome.
When you see this agreement do you call it an agreement or do you say please?
It basically begins where you are starting and i look at the situation in congress is just so bad that any bipartisan agreement really is progress.
When you look at how much it has to house last night, we haven't see that on any legislation in quite some time.
It does some good from an economic perspective by replacing some of the sequester with the cuts.
Most importantly, it shows bipartisan cooperation on some of the budgetary trade-offs.
I do think it is progress.
Obviously it is disappointing that is not a real deficit he'll . they really do have to learn to walk before they can run.
Here's a baby step in a think we need to applaud it.
If this is not boosting gdp, will not allow for boosting of gdp, are we going to do better next year because of this collegiality?
A think this improves the economic picture in two ways.
It replaces the sequester, part of the sequester and the short run with longer term or permanent cuts are given where our economy is where it is still not a strong recovery you'll want to do too much deficit reduction now, but you don't want to let it go with no plan for offsetting that in the future.
A that reasonably responsibly.
It adds some certainty, not real certainty, we have not debt with the dell sealt with the debt ceiling.
There's been no certainty in past years as a budgeted minute to minute.
It will have not profound but some improvements for the economy area richard clarit ida, when you see collegiality in washington, does that pull us away from the new normal to something new?
I think it is a modest positive for the economy next year.
Certainly importing a train wreck is a benefit in and of itself.
This is a positive.
It is certainly not enough to turn on the trajectory, but it is a positive.
Myakka my want to go back to in washington.
Even though we have avoided a shut down, does that mean no one is going to touch the hot topics, the hot potato of entitlement reform and massive tax restructuring until then?
First, the still hasn't passed the senate and it doesn't look like it will be as easy as one might hope.
We still have to clear that hurdle.
A very important point, one of the downsides of this deal is that it really takes off the pressure from looking at the key issues, health care reform, the aging of the population and retirement and how to reform the tax code in a way that it will bring in new revenue.
Those are hard issues that we keep on punting.
We have been governing by crisis and that each crisis moment we have not really made progress.
There now are basically no foreseeable crises in the next couple years.
It won't force them to do something but it also may mean that the people who are interested in getting a deal can come together and start working thoughtfully.
I wouldn't bank on it, but i can hope that they will start to get these issues to the forefront.
The conventional budget office is a policeman in this.
How will the cbo adapt to this good news from congress?
The cbo still has great impact.
I think the deficit slowly falling, whatever assessment they make about the economy won't add much but it won't hurt much.
They can say this is the bare minimum we can get done and we are not going to do much else, or this new spirit where they would try to deal with immigration reform.
We have cut all the domestic spending we can cut.
The bing things out there are entitlement reform and tax reform.
The truth is, this is a huge vote in the house.
High 300s. i believe there is no question you can get 218 votes in house and 60 votes in the senate.
With the pressure off, i think my makes a good point.
The deadlines force action here.
By the way the deadline for immigration as the 2016 election.
My, we are applauding these baby steps, but are these the only norm we ever going to get?
Every time we take these baby steps we are reminded that they harder than the grand bargain.
Asking government workers to pay more for the pensions or some reduction in military pension.
Part of the reason you're getting resistance is because some groups are being isolated in having to pay for it instead of a big deal.
If everything is on a table and everybody is part of the deal, it actually seems a lot more fair.
That is how i think we should do it, but looking at the -- from the past couple of years, as we have taken more the low hanging fruit, this is one of those baby steps it gets more difficult.
The only things left to address are the hardest ones.
We may as well be honest and start dealing with them as quickly as possible.
I like what you said about us governing by crisis.
Rich clarida, there's no crisis on the horizon.
What are you worried about in terms of what is coming?
I think the outlook for the u.s. next year is as positive as it has been in a number of years.
I think eliminating the uncertainty in washington is a positive third i think for the next three to five years what we're focusing on is the fact that many of the emerging economies globally which are seen to be a posi powerhouse are really on the downturn.
It is not so much the u.s. focus as it is the global economy, everything ante up -- adding up.
David plouffe, thank you so much for really appreciate your attendance.
Richard calrida will continue -- richard clarida will continue to be with us.
Michael hamel joins us from the brookings institution.
A conversation with one of our leading authorities on the hard hour which is north korea.
The next crises we could be facing to come from outside the united states from emerging economies.
North korea could be the catalyst to that area everyone is looking at what is going on in north korea.
The political intrigue, the very public execution.
That is coming up on bloomberg surveillance.
? stanley fischer is one of the leading economists in the world.
He combines a stellar academic career with front rank policy experience.
A legend at m.i.t.. wrote a textbook.
Number two job at imf, governor of the bank of israel.
Stanley fish is a complete package and a really nice guy.
Whose economics does you most compared to?
Brad delong is on the edge of the communist out in berkeley.
Then there's the krugman guy as well.
Which political economics is stand fisher most like?
Stand is pragmatic.
I don't see him as -- stand doesn't have an agenda in terms of methodology.
He's really pragmatic and that is why he has been so successful in the policy world, certainly in the imf and at the bank of israel.
He knows the theory, but he also excels in the practice.
Our chief economic respondent says these are the two top talents at the fed.
How does stand fisher assist chairman yellen?
In a number of dimensions.
There are only 24 hours in the day and the fed is not just the central bank of the u.s., but the monetary policy for the world.
I would expect stand to be an emissary for the fed in the basel process and obviously were we to get to a situation where they were crisis, he has been in the trenches.
I think on the global interface and policy crisis adjustment.
Will this allow their to be different governance?
The change in appointment process in washington free set up as well.
Professor clarida from columbia.
We will come back with more on north korea from michael o'hanlon.
Good morning, everyone, "bloomberg surveillance." scarlet fu and stephanie ruhle here.
We need to get the top headlines.
Here you go.
Americans are confused about that coin.
You can lump me into that bunch.
42% of people polled by bloomberg can correctly identified as a virtual currency . six percent said it was an xbox game and another six percent not it was an iphone app.
In the world of regulated currencies, goldman sachs is predicting a drop in the u.s. dollar.
The greenback will weaken next year and fall to one dollar 40 -- $1.40 against the euro.
The consensus is for stronger dollar in 2014. bortz, san diego chargers upset the denver broncos.
Two touchdowns in a 27-20 win.
The victory keeps san diego's hopes alive.
For denver, this is tough.
Think about this.
Why is it great for san diego?
Anchorman two is coming up.
And as you know, that is ron burgundy's town.
I could not answer that.
There you go.
That is a top headlines.
This is serious.
The uncle of leader kim jong on.
It was a very public urge purge.
Former white house security advisor, also bloomberg contributor him a richard, how you read this?
Is this a sign of increasing instability in north korea?
I think soap.
A public purse like this of someone from within the kim dynasty has not happened since the 50s. the indictment that was read to the court and on the official state media immediately prior to the execution said he is openly plotting against the current leader.
That has never happened before.
Sort this suggests is both a generational shift and the possibility of real bloodshed within the regime if not the country as a whole.
What to know about the man who was executed.
I understand he was in charge of the special economic -- here's trying to secure more foreign investment?
He was the outreach to the rest of the foreign world?
He was a figure of continuity.
Here been known to the international community for 40 years.
Years regarded as something of a liberal, even though in north korean terms.
He was picked by the father of kim jong-il as someone to mentor kim jong onun and now he is gone.
South korea does not want a failed state.
It is not want to collapse.
It china does not want to see south korea advance up north of its border.
It is a pleasure that we have richard falkenrath and richard clarida with us.
He speaks to us now on north korea.
Michael o'hanlon, your perspective on the path forward for north korea.
How did he respond to this purging?
Nice to be on an good morning.
I don't have a whole lot to add, especially since we're speculating about the motives.
You ask about south korea specifically.
I don't think they do much except stay vigilant.
This is not an opportunity for any new policy initiative as richard pointed out.
Chang was seen as may be one of a few relatively reform minded north koreans, although even that has to be put into context.
It is not as if his disappearance represents the ascendancy of a new reform weighing that once a new policy of engagement.
If anything it is probably more the opposite.
It is a time to stay vigilant and worry a little more than usual, but the on that i'm not sure that soul are washington -- that seoul and washington are worried.
Was a distinction between the older people we see those images in the younger people like the new north korean leader?
I don't know yet.
One thing i had been helping and i guess i will still try to hope , but it is getting harder, is that the new kim was going to be somehow a slightly kinder and gentler kim.
That he would perhaps not immediately open up or reform but that he hopefully has no interest in presiding over a failed stalinist state for another half-century and that he would be looking for opportunities as he established himself to make tiny little changes at first heard this would suggest that he is of the old school.
He is brutal, he doesn't care about his own family.
He will kill almost on a whim.
Maybe this was an intense power struggle and maybe this was a personal grudge and who knows what else.
It doesn't bode well when you start knocking off people in your inner circle.
Thank you for your perspective this morning, michael.
I like the phrase a failed stalinist state.
What does that phrase mean to pros like you and dr.
Stalin wrote the book on how to be a dictator.
One of the things we worry about is that if it is the case that there's a power struggle and said pyongyang now, that he will precipitate some sort of crisis with the south koreans most likely and possibly with united states in order to justify a continued crack down.
That is one of the things that despots have done throughout history.
We will continue on to many topics this morning.
A number for years 139. that is how many days the average man spends shaving over his lifetime.
? "bloomberg surveillance." this is the head of coax american business is leaving the company as that unit will be broken up.
Coke is combining its bottling operations in the u.s. and canada with its international bottling business.
This is an effort to improve its north american distribution system.
Ford is mapping out its hiring plan.
They will add 11,000 new workers as it opens new plants.
It plans to open two new factories in china and the other 5000 jobs will be in the united states as it introduces 16 new vehicles.
Ford hired 6500 new workers this year.
Peugeot shares slide after gm decides to sell its stock in the automaker.
The two had teamed up last year to save money that have struggled to meet goals as a partnership trade that is today's company news.
Front and center is the ims concern over europe for next year.
Madame lagarde of france speaking up over this.
How fragile is france as we enter the new year?
I wouldn't say fragile, and i would say about france's that they missed a lot of opportunities to put in place policies that they will need to do eventually.
Does a winter of opportunity that they more or less avoided.
I think the challenges with france are imminent, but certainly france's lag behind other countries very peugeot has chronic challenges for the automakers.
A bloated public sector and high stock of debt.
So far they have scurried underneath the radar in terms of the eurocrisis but structural challenges in france long term.
When you talk to investors, some may say that europe has turned the corner and bottomed out in 2014 will be a year of opportunity for european equities.
Europe had two recessions in four years, europe is finally growing, germany very rapidly and the periphery less soap.
The ecb has bought some time.
We're not talking about the end of the euro, but the euro still has challenges in terms of a growth agenda and fiscal institute.
Where is the new 140. ? is the euro here and for europe?
Here's the point.
After the near death experience of the eurocrisis in 2012, i think the european officials are pleased with the euro in the one 30 range.
I can tell you, if we get north of 140 there will be a lot of job owning pressure from ecb officials and others.
My own view, and i think -- 14145 is what we're looking at.
Qualcomm has named steve mullen kopf it ceo and president.
Remember we were discussing how microsoft has been watching surveillance.
Seeing scarlet fu go through all of the great points of mullen kopf, why is called back for the job interview, boom.
Steve mullen kopf has been named chief executive of qualcomm.
He was on the shortlist to be the ceo for microsoft.
Game of thrones.
You're taking a person with technical expertise to the company, right?
That is why you make a guy like this the ceo rather than a traditional corporate leader.
Qualcomm shares are moving, but not a lot of shares here.
Is slightly lower in the premarket.
This really puts a monkey wrench in microsoft's works if it was seriously considering him as a ceo.
Ford has made clear his can stick to it.
Is december, was mostly casual and going to christmas parties.
Steve ballmer had said in august that he was going to retire within 12 months or eight investors are impatient.
They want to have an innovative leader.
Ibm is its defensive mode.
Nothing innovative is happening there.
They need innovators less than 30 years old, that is a problem.
Equities bonds, currencies, commodities.
Futures up seven, improve day after three days of challenges.
Euro-dollar bit weaker.
It is in the range of $1.40. brent crude is 108.37. the markets have been pretty boring.
There really isn't a lot of economic data to wade through this morning.
We have wholesale inflation at eight: 30 a.m. -- at 8:30 a.m.. this is bloomberg surveillance on bloomberg television streaming on your tablet, phone and tablet.
I'm scarlet fu here with tom keene and stephanie ruhle.
Now something important.
Did you shave this morning?
I did, half asleep.
That would've been at about three something.
I can't go there is so said.
Gillette still dominates men's shaving commanding your 60% of the market.
Boutique companies have been begging for my business because i'm a manly guy who shaves three times a day.
For cheaper more stylish shaving options, they're sent right to your door.
It is a small part of the market, private label and a boom business, particularly here in downtown new york city.
Jeff rader, warby parker, from the glasses he's moved down the face from spectacles to grooming.
Your change the landscape with that.
One of the best practices you could bring from big ugly fake glasses to the arctic shaving.
I think the thesis is very similar.
Just delivered people exceptionally high quality products, do it at a great price and make them like the purchase experience.
To meet his price sensitive.
$40 for a haircut downtown is shockingly reasonable.
We just want to deliver people a great experience at a barbershop.
With our products at the cabana website which is harry's.com.
Let your voice is about to go.
Save jeff raider here, please.
How to get people to continue buying razors?
We have heard that guys are saving less.
Their shaving their nextel, right?
We also hear from guys that razors are really expensive.
They'll love the process going to the store to get them.
So for us we want to change that.
We want to offer high-quality razors and make our blades in germany and deliver them at a fair price, sell them online and make it easy for people to get them and hopefully that makes them like to shave more, like the act of getting shaving products very if you people are saving overall, what is i mean in terms of your product offering.
? we want to help people who do shave and who want to shave more.
Is not like you have a history in male grooming as a professional.
When he came from warby parker and said what is my next big thing, why did you choose this?
And tom, just because you shave three times a day didn't mean you are more manly it means you're more hairy.
My friend went to the drugstore for some razors and spent $25 for four razors and some shaving cream.
Is a miserable experience.
He called me and said we have to be able to do this better.
So let's do it.
We beat harry's and lasted in march.
People come to our site.
The hipsters in newport beach california with pimco, nobody is shaving.
Lloyd blankfein of goldman sachs with a beard.
His is good?
We respect people's right to wear whatever facial hair they like.
For some people wearing a beard looks great good that people in our office at harry's who wear beards.
Our philosophy is you don't always have to shave but when you did you would hopefully consider us hurried what is your goal for 2014? how much do you want to make?
We want to deliver people amazing experiences.
We deliver customer satisfaction and it has been incredible for us to see our scores double what they are for leading brands.
Everyday i talk to customers who are having a better experience with the product and that makes us really happy.
Eyeglasses, shaving, keep going down the face and the next thing is bowtie's third jeffrey raider, thank you so much.
Working down the body.
We want to include a twitter question of the day this morning.
Why is twitter trying to change its blocking policy?
Thomas outrage last night when twitter prevented him from being able to block a the people that were trying to follow him.
Treatise @ bsurveillance.
-- tweet us @bsurveillance.
? breaking news is our.
We're going to spend this entire block on qualcomm.
Moving from the microsoft discussion back over to qualcomm.
A news here is that steve mol lenkopf is moving upstairs to be the ceo of qualcomm.
This is effective march 4. microsoft was eyeing him as a potential successor to steve ballmer as ceo of microsoft.
This is a major prodigious technical chops.
He spent two decades of qualcomm.
He joined as an engineer in 1994 and became head of cute tc.
That is why microsoft had looked at him as a possible contender.
He is part of the industry that microsoft cannot crack right now.
We do not have reporting on this but the debord go to him and they can to stay what did he go to them with an ultimatum?
You have to wonder him.
It is an interesting conundrum.
All of this not an embarrassment to microsoft but it stirs the pot.
His boss who is 52 years old -- he is qualcomm.
Use the sons of a qualcomm founder.
He becomes executive chair.
Here it is.
He will remain executive chairman.
He makes room for steve mollenk opf.
You're talking about apples and oranges in types of people would run a company.
If he is not in the running, i'm not sure that alan mullally would be there next take.
They have different skill sets.
He doesn't have the tech background.
He was very successful at going, but does he come into microsoft and change the company at a time when it is in need of a major transition?
This goes right over