White House Has Serious Concerns Over GOP Proposal

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Oct. 11 (Bloomberg) –- Bloomberg’s Phil Mattingly reports on the negotiations over a temporary debt ceiling increase. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

This is "taking stock" on bloomberg.

For the headlines, let's go to mark crumpton.

Jpmorgan has shrunk employee compensation for its investment banking unit.

The bank allocated 4.4% less for employee compensation that covers the first nine months of the year.

Twitter is set to pay bankers a fee of about 3.25% in its ipo according to people with knowledge of the matter.

It also said twitter will probably start a roadshow with bankers in the last week of the month.

Royal mail stock closed higher following that trading debut in london.

The postal service ipo was criticized by opposing politicians who said the offering was underpriced.

Tonight, the brookings institution senior fellow and former imf division chief will join me to look at the issues the world's finance ministers are most concerned about at the g 20 meeting in washington.

That is tonight at 7:00 eastern.

Hope to see you then.

The white house kept reporters waiting for the daily briefing for more than three hours.

The delay was to prepare the response to the house republican proposal to end the government shutdown and raise the debt ceiling.

Phil mattingly joins me from washington.

What did they say when they finally came out of their meetings?

I do not think it was a: dissidents -- coincidence jay carney walked out to brief reporters a minute after markets closed.

The president has serious concerns with the republican proposal that sent market skyrocketing.

That proposal would have increased the debt ceiling for six weeks.

It would have set a path for budget negotiations.

It is the idea he white house would be required to start engaging in budget negotiations that has the obama administration worried and why they more or less rejected the proposal tonight.

There were some developments on the senate side.

Can you give us details?

I think everybody would tell you it was a more positive day today.

Last night was a good meeting between house republicans and the administration.

Today was a good meeting between senate republicans and the president.

They're working behind closed doors on their proposal that sort of mirrors what senator collins was putting out earlier in the week.

It would increase the debt ceiling and reopen the government.

It would start making a few budgetary changes as well.

This is the issue the white house is starting to look at, looking at this is a good possibility while also keeping an eye on what is going on with house republicans.

Thank you, phil mattingly.

I know you will be busy this weekend.

Assign the shutdown is affecting the economy.

A sign perhaps of consumers holding back when it comes to spending.

The preliminary consumer index fell to about 75.2 this month.

With more on how retailers are trying to woo consumers, i want to bring in offers.com ceo steve schaffer and vice president eddie gindi.

Have you seen any changes or differences because of what has been going on in washington?

Not because of what has been going on in washington, but we think we will in the fourth quarter in the holiday season.

Consumers are getting more cautious.

A recent survey said 70 -- 37% will be more actively looking for coupons and deals this holiday season as a result of what is going on with the economy.

What are you seeing?

The retail environment and the feedback you're getting from customers and suppliers.

Right now the luxury consumers -- investors are -- customers are investing in luxury.

The midtier retailers are still struggling because there is not a lot of confidence in what they are selling.

Off price is booming.

I was speaking to t.j. gentle earlier.

He runs an online furniture store.

What do you say about the shutdown and the two branches and parties?

It is frustrating.

There is no answer i can give you.

It is early to say how it will affect business.

More will come and be revealed in the next few weeks.

We will see what happens.

Is there something deeper at work when it comes to the retail environment?

We look at the government.

But it is also about jobs.

I think consumers will be more cautious.

They will be looking for value.

A lot do not want to listen.

They want to block it out.

Tell us about offers.com.

We have coupons and deals from over 5000 of the top online stores.

We also have in-store coupons as well.

You come to our site before you want to buy something and save money.

You have legal agreements with all of these companies?

This is not where you are just taking a promo code out of thin air?

We have relationships with the companies to aggregate the best deals.

What is coming to you?

A lot of the stuff in your stores is namebrand merchandise.

What can you tell us about trends?

Because of the retail environment and things are slowing, it is an opportunistic time for our buyers here and in europe.



Our buyers are taking advantage of the situation.

Menswear, ladies, accessories, home, every category --there is a lot of opportunity.

What about expansion?

We have eight stores.

We are a family owned business.

We will probably open 10 to 15 stores total.

We do not want to open 100. our focus now is on e-com.

We feel that is the future.

We are putting a lot of energy into it.

We feel it is the biggest growth area in business today.

Maybe you can help his business.

We were talking in the waiting room.

It commerce -- e-commerce is growing at a much faster rate than traditional retail.

I think the biggest challenge for them is to make sure they do not think of it as just another store and do not worry where the sale comes from.

Do not have your online and in- store teams fighting over the customer.

As long as the company gets the customer, they should not care.

As long as they make the sale.

Let's go back to washington for a second.

When you lose a sale, does it ever come back?

It is difficult.

When a customer is disappointed, they do not come back.

If they do not see the coupon they want, will they go or will they keep looking?

They want a good value.

For merchants who are not providing it are going to lose, especially in this holiday season.

You use offers.com?

I do, all the time.

I want to thank you both.

Eddie gindi joining us from century 21 and steve schaffer from offers.com.

I will try to redefine what the hot gift is this year.

Christie's has brought along about $25 million worth of diamonds.

Next we will find out how you could own some of these rare treasures.

It is time for clue number two.

My mystery guest has collectors not customers.

? there are major events happening this weekend.

I want to get to carol massar to give us the brief.

We will get trade data for china for the month of september.

Tomorrow in the u.s., the house and senate will be in session.

The federal government partial shutdown will continue unless an agreement on the budget and debt limit can be reached.

The imf managing director will hold a news conference saturday in washington as the annual meetings draw to a close.

Next week we will get earnings from intel, yahoo!, and ebay.

Thank you, carol massar.

Fall is here and that means a new slate of diamonds from christie's will hit the auction block.

Pain, blue, and orange are the colors that will translate into $25 million worth of money according to my next guest.

That is money being paid for minerals put up for sale around the world.

Rahul kadakia is the head of jewelry for christie's americas and switzerland and joins me now.

The last time i saw you, you are auctioning off what?

The 100 carat diamond we sold at christie's in geneva for $27 million.

It sold to harry winston, the new owners, and they named it winston legacy.

That was $27 million.

You're used to the big figures.

We love them.

Tell us about some of the things you're selling now.

We have a 9 carat fancy intense pink diamond.

We have a vivid blue diamond just under four carats that should make about $3 million.

Here we have an interesting jewel that belong to ava perrone.

We sold it in 1996 for $1 million against a presale estimate of $80,000. they thought they would sell it for $80,000 and it sold for $1 million.

What is the estimate now?

We have it at $300,000. we will see what happens again.

Where is the provenance for all of this?

We fly around the world to private collectors and the states.

Members of the diamond trade come to us when they have cut something special.

It is clients and collectors from all over the world.

When are these going to be up for sale?

On tuesday, october 15, at christie's new york.

They take telephone bids?

Telephone bids.

You can come to the room and leave a bed with me, the auctioneer, or you can bid on the internet on christie's live.

Let's turn to something that will be auctioned off in geneva.

This is the world's largest orange diamond.

Where does this come from and what is it about?

It is a south african stone that was mined over 50 years ago.

It has been with the same owner for over 30 years, an elderly gentleman who has decided to sell it because the market is right.

It is about 15 carats, vivid orange.

It is this bright orange colored diamond, the color of orange peel.

It will go on to make well over $20 million at christie's geneva on november 12. is there a particular group of collectors or buyers?

You mentioned harry winston for the previous sale.

Who buys a $20 million orange diamond?

I would think winston would be one of the collectors interested.

Winston is a business.

They buy the best.

Lawrence craft will be interested when we speak of those in the diamond and jewelry trade.

We would also have private collectors from russia and the middle east and all over asia who would bid seriously for a stone like this.

We are looking at color diamonds.

People may not know colored diamonds are the big trend right now.

They are more expensive than the colorless stones.

They are more rare.

White diamonds are not easy to find, but you see them more often than the colored stones.

To have this color in the diamonds, you need to have an immense amount of nitrogen.

You need to have boron in the blue diamond.

There are the special minerals that need to seep into the stone to turn them these special colors.

Authenticity might be a question for a more traditional diamond.

Authenticity guaranteed?

Authenticity guaranteed with natural color diamonds.

We have been tested thoroughly.

We get certificates which the new owners will get when they buy the stones which confirms the weight, cut, color, clarity, carat weight, and the fact that they are naturally colored diamonds.

Also being publicized helps because it identifies the diamond and makes it harder -- if it were to fall into the wrong hands, everyone would know where it came from and it is not like you would be able to sell it.

When the certificate is printed, it is like a fingerprint.

You cannot reproduce it with any other stone.

What is the feeling like in the auction room putting the hammer down on something that is $27 million?

How does it make you feel?

It is exhilarating, exciting.

I love it when you are in the sale room and have 10 different hands going up and they all want to buy the best from christie's. they are all fighting for it and it makes a world record price.

You should come to the sale.

Can the public attend?

Anybody can attend the exhibition.

The sale is open to anybody to sit and enjoy it.

Is a great experience.

It is a thrill.

I would invite anyone who wants to see a great auction to come to christie's. christie's in new york city, the orange diamond in geneva when?

November 12. thank you very much, rahul kadakia, the head of jewelry for christie's americas and switzerland.

Coming up, my mystery guest is here.

It is time for clue number three.

My mystery guest is enjoying the sweet smell of success.

? my mystery guest is a mystery to me.

And producers have provided some clues.

My mystery guest loves new york.

The brand has collectors and not customers.

My mystery guest is enjoying the sweet smell of success.

Let's bring out my mystery guest.

Thank you for joining us on "taking stock." i notice you have some diamonds but you're not in the diamond industry.

These are not real.

It talks about the sweet smell of success.

Are you in the perfume industry?

Based in new york?

You are.

Do you create your own fragrances?

. yes.

Are you a privately held company?


Is the brand your name?


are you associated with creed?


you have distinctive bottles?


That is part of the collecting.

Are you bond?



You are lorencia.

I am so glad to have you.

Tell me about how you started this.

It started with the history of new york city, september 11. we were downtown.

And it did not smell good.

As a perfumer, i decided i could contribute and make new york smell good again.

Here we are.

We are covering the map of new york from harlem to wall street.

What about the collecting business?

The idea of the bottles.

I am an artist at heart.

Every neighborhood of new york had a lot of character, soul, and style.

It was easy for me to translate the soul of the neighborhood into a bottle.

We have chinatown in fuchsia with plum blossoms.

You have the hamptons and blue because of the ocean.

It is easy when you get new york to transferred onto the bottle, easy for me.

What about the hurdles you had to face building this?

This came after 9/11. this came after your response to that.

Some people left downtown.

We stayed and made something with it.

What is next?

You want to move outside of new york?

We love new york.

It is a big city.

There is a lot to do.

There are still a lot of neighborhoods to do.

The inspiration is timeless.

The actual fragrance, where does that talent come from?

Is that experience or something you are born with?

It is like a pianist, the more you play the better you are.

I travel the world.

We are in 35 countries.

The more you smell a different cultures, food, the more you learn, the more you educate your nose.

What are some of the more popular fragrances right now?

People are into peace.

Peace is the number one fragrance in every market of the world.

People deeply want peace.

The manhattan fragrance we launched last year with the picture of the brooklyn bridge is a very popular fragrance.

It travels.

A lot.

We have the hamptons fragrances doing very well.

Chinatown is a big success story.

Chinatown is growing in new york.

Wall street is a big one.

There are a lot of people on wall street.

Ingredients come from all over the world?

From all over the world.

We get the best of what the countries have to offer.

Thank you for joining us.

This is bond 009. thank you so much.

It is 56 minutes past the hour and time for on the markets.

The dow jones gained 111 points.

And the nasdaq gained 31 points.

Thanks for "taking stock." i am pimm fox.

Good night.


This text has been automatically generated. It may not be 100% accurate.


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