Amazon Drones: Will the FAA Endorse Bezos' Dream?

Your next video will start in

Recommended Videos

  • Info

  • Comments


Dec. 2 (Bloomberg) -- is testing drones to deliver goods as the world’s largest e-commerce company works to improve efficiency and speed in getting products to consumers. Phil Mattingly reports on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle.

Is the delivery van of the not so different than future.

Amazon wants a drone to drop off their packages.

And do not believe the hype.

We will tell you what sales figures from black friday really say about retailers and the economy.

And is obama care actually ready for prime time?

The president says the overhauled website can handle 800,000 people per day.

They are not certain that it will hold up to the test.

Welcome back.

I'm stephanie ruhle.

Erik schatzker is on assignment.

My theory is he is getting his cyber monday on.

We will talk about that all through the next hour.

It is time to get to the newsfeed reader --. a supreme court decision may change the way internet traffic works.

The justices refused to consider throwing out a law that forces amazon to collect money from customers in the state.

They argued that they should have to collect taxes, but they do not have facilities in new york.

There have not been this many cars on lots in over eight years.

Entering november, dealers have over 3.4 million cars and trucks.

Ford has already cut production so it can avoid offering big discounts.

Automakers are on pace for the best sales year since 2007. and do not worry.

The struggling smartphone maker, blackberry, says it is here to stay.

Their interim ceo says the company has substantial cash and that the investment in infrastructure is secure.

Now let's head to washington, where the obama administration says repeat her goals were reached for obamacare's website.

Our own white house correspondent, julianna goldman, broke these numbers this morning.

She joins us now from washington.

What are the enrollment numbers looking like?

The white house may say they can taken at -- 800,000 users, but are there that many people ready to sign up?

This is a bit of good news for the white house.

These numbers are just fill in the dairy.

What we're hearing is that 100,000 people enrolled in obamacare through the federal exchange last month.

This was even as that team of programmers, government officials, and contractors were scrambling to get the site up and running by november 30. this is a big jump from the previous month.

A four fold increase.

That was about 26,794 people.

It was a really poor, low number.

Originally, they were expecting 800,000 people to sign up in the first two months.

They are still pretty far from the month -- goal.

The trends are promising.

People are keeping an open mind and they are patient.

Even as you see criticism from republicans and democrats alike.

This is all according to a person familiar with the per -- programs progress.

We think that we will continue to see steady improvements months to month.

Most of the sign-ups will come around march, the end of march.

That is the deadline for people to sign up for obamacare.

The white house wants to see about 7 million people sign up by then.

They will still have to be significant and increasing month-to-month.

This is positive news for the white house.

It is also coming from the white house.

Should we believe it?

Clearly, the administration needs to get out from under this rock.

How much credit should we give to this news?

It depends.

The white house says it is not mission accomplished.

They have passed the first test.

What they did was, over the past couple of months, they fixed 400 items on a punch list.

The site is working for the vast majority of users.

There is an error rate below one percent.

It is not crashing more than 90% of the time.

They can handle 50,000 users at once.

Now, they have to focus on the backend.

They sent a subsidy payments to insurers.

They are worried that that will not be fixed in time to meet the next deadline.

It has to work and to end.

Remember, people have to enroll by december 23 in order to get insurance.

If they cannot meet that, there will be all of these people with insurance plans that were canceled.

They will not get coverage starting january 1. the backend process is really important right now.

Thank you so much for giving us the latest.

Our own white house correspondent, julianna goldman.

Thank you again.

Early reports are that shopping did in fact drake participation records.

I am joined by our own grinch, michael mckee.

Does this weekend tell us anything about the economic health of this country or is it really talking about crazy shoppers?

You got it.

Did you just hear michael mckee say getting their freak on?

Calling me a grinch is a step up from what they called me earlier today.

I will happily accept that.

It is a media creation and it is hype.

It means nothing.

You have all of these companies reporting figures about people who are out there shopping.

None of them are scientific polls.

None of them are scientifically accurate and none of them are comparable.

You cannot tell what happened.

Maybe more people want the stores, but there are more people right now.

Take just 1 -- national retail federation.

You would think that they would know what they're talking about.

They surveyed 500 -- 5000 people.

They think 200 48 million people went shopping.

That will not tell you a whole lot.

They have a hard time getting accurate figures.

Then you look at what they say people spend and the numbers there he widely.

They spend more in 2012 than they thought they would spend this year.

2013, we are not spending anything according to the survey.

Hard to get any accurate reading for what happens.

It does not correlate with what people spend over the holidays.

What about cyber monday?

If you care about how many people click on websites, it is the busiest shopping day of the year.


Does that tell you anything about where we are going?

It does seem to pull forward sales from other days must shopping season.

According to the government, you see a big increase in the month of november.

That is when cyber monday fell last year.

Look at what happened in december.

Sales fell off.

Given how important big data is, isn't having this intel so important to these retailers?

If you can get accurate data.

There are so many people measuring and so many different ways.

You do not necessarily get good data.

Big data does not mean good data?

You have to break it all down.

The numbers that you saw are going to be forgotten.

They will not compare to what people actually spent.

Great to get that intel from you.

It is not just about women lining up and tackling each other.

Michael mckee telling us what it really means.

I want to talk now about a big retailer -- amazon.

We have seen big news out of them.

They have appealed to the supreme court and drones.

Jeff bezos announced that the retailer is someday going to make deliveries to -- as soon as 2015. this does not mean that the government will go along.

Phil mattingly is with us now.

What does he need on the regulatory side to actually make things happen?

He is a visionary.

He makes things happen.

Even if he has all of the great plans, if the government says no days, he is not getting off the ground.

That is exactly right.

He pointed to a specific year, 2015. he knowledged that that was optimistic.

Lawmakers have required the federal aviation administration to draft rules regarding drone use by 2015. here is the issue that he might have been looking at.

The faa has been very cautious about this whole process.

Permits are granted on a case- by-case aces.

Leaders around agency have been very clear that they are not sure how this is going to work.

They're wary of sending these vehicles into public airspace with airlines and helicopters.

Lawmakers want this done and they want this done and what rules by 2015. they also just have the general difficulty of trying to figure out how this works.

They have hinted that it might be longer than that.

Where do we actually see drone use on u.s. soil?

When i see those videos, i think that is out of the movie.

There are in fact drones being used right now.

There are.

There are about 1000 permits since 2009. the bulk are for your -- law enforcement agencies.

The fbi has acknowledged that they have used them since 2006. you have also seen universities and earlier this year the faa granted permits to arctic thriller's --drillers for oil production.

They are out there, but you do not see them flying over washington dc or manhattan.

That is the big concern.

When do they start moving into that airspace?

And what happens if they going into the field during hunting season?

No argument, they are pretty cool.

Thank you again.

When we come back, whenever there's a business that is regulated, you can bet there are lobbyists.

We will be speaking with the lobbyists and the drone industry.

And the generation that will not get extra credit on this test.

Which age group is the worst when it comes to managing credit?

We will have that next.

This is "market makers." stay with us.

? besides knowing the girls rule the world, we also know that the world runs on credit.

Americans are swiping their cards at an astounding weight -- rate.

I want to find out who is better at managing all of those bills.

Parents, kids, or maybe even you.

Michelle is the vice president at a credit reporting house.

She compiled a report on american generations and credit rid you say that millennial's, those in their 20s and early 30s are in the worst shape when it comes to credit.


We found that their credit scores are at 628. that is low.

It makes it hard for them to get credit.

When they do, it will be more expensive for them.

The reason it is lower is that they do not pay their bills on time.

That is the number one factor, being able to pay your bills on time.

Not over utilizing it.

Not maxing out the credit cards.

Can the argument be made that credit has been available in the last 10-15 years?

Senior citizens have the highest courts.

When they were in the 20s and 30s, there were not even cars available.

Now, there are six credit card companies waiting to give you a card.

Does that have to do with the fact that they are marketed to more?

In terms of that, i think it is a double edged sword.

When they are marketed to and they get those cards earlier, they've learned the lessons earlier.

As opposed to getting out later and having at its core that is bad later -- having a credit for that is bad later.

Managing your credit is universal.

It does not matter about your age, it matters how well you manage it.

Today not understand how important your credit score is?

They have had to buy homes and finance cars, millennial's have not been in that position yet.

The older generation -- the baby boomers, they have had that experience.

They know how to use credit as a tool.

Millenials, what is important to them is getting a new apartment or a car.

They need to credits court to get those.

They are going to wish that they had a better score when they need a house and a mortgage.

That is where the lower rates really matter.

Did you find any geographic trends?


We continue to find that the upper midwest, like minnesota and was confident, all have the best credit course.

The worst are around texas, mississippi, and louisiana.

Are we just accepting that this is their relationship with credit?

Following this report, do you think there will be action to take to get them on board and recognize the ramifications of their spending?

I really hope that there is a matter of them learning a few lessons and making modifications to their behavior.

So they can go to livecredi and it will help them to understand how credit works.

By paying bills on time and sticking to a budget and knowing how they will pay off credit, they can make a difference and make their score higher.

I think you might have to give a tutorial come january.

Based on them resting into malls, i do not think they are thinking about credit course.

Thank you for joining me.

Joining me live from los angeles.

When we come back, the biggest ipo ever for a hotel company.

Hilton worldwide is going public.

We will have that next.

? welcome back to "market makers." it is the cocaine economy in venezuela that we are talking about in today's latin america report.

Venezuela has the world's cheapest gallon -- gasoline.

The exchange rate is one cent.

Criminal gangs are shipping up to 100 tankers of that gas every day into columbia.

Gas costs four dollars per gallon there.

Much of that is being paid for by cocaine.

The fuel tax revenue has fallen 16% this year.

The head of colombia's tax agency says the company has no control.

He says that smuggling has gone on there for centuries.

That is today's latin america report.

Moving on to company news, hilton is going public.

The hotel chain is owned by blackstone group and they are betting on a continued recovery in global travel and annexed banded footprint.

One of my favorites, cristina alesci has the latest.

If they are getting out, why would you want to get in?

Blackstone is not getting out.

They're keeping the equity stakes.

Other investors are getting out.

His company has a pretty compelling story.

Most of the hotel rooms are based in the united dates.

They say that their growth will rely on international expansion.

Not only that, but the hotels that they will expand into are actually not owned by us.

They are franchised.

Little to no capital is at risk.

That is what is resonating with investors.

Not to mention that the hotel industry has been on a tear.

Average revenue per room has been increasing and it's an expected to increase.

In an environment where you cannot expect to get growth, investors will eat it up.

We know how well extended stay went.

Was that the fluffer?

It could be.

They got rewarded with extended stay.

What will be essential here is that they are taking the company public.

They will still have $15 billion in equity in the company.

It has to keep that stock price high.

If you look at the price to earnings ratio, what we are seeing is that stocks are very expensive.

They are probably at a 2.5 year high.

Is anyone actually looking at that?

One could make the argument about tech stocks.

Tech stocks have been very hot this year.

Investors are actually seeing some deal fatigue when it comes to new i.t. -- ipos.

Investors seem not to be so fatigues when it comes to real estate.

The question is, are they overpaying for growth because there's so little out there?

Early fatigued by buying blackstone backed deals warded they want to get in on the deals?

They are not fatigued by real estate offerings.

They have not been fatigued by blackstone offerings.

They have had a good year.

I am never fatigued by our deals reporter.

One of my favorite people here in the newsroom.

We are approaching 26 past the hour.

It is time to go on the markets.

I will take you out to l.a., where lions gate is the big name.

So many of us are talking about "the hunger games." it was playing and there was a line around the block.

The second installment of the trilogy cap to the number one spot over the holiday weekend.

They raked in $110 million.

They beat box estimates by 20%. if you thought "frozen" was going to be the hit, you left out in the cold.

People like it.

We're going to go overseas to italy, where the economy is beginning to make eight turning point.

Is it going to go deeper into recession or finally have a turnaround?

We will hear from their finance minister coming up next on "market makers." and the new frontier in the skies, it is all about drones.

We will see how the industry is pressing regulators to make it easier to fly.

That is coming up next.

You are watching bloomberg tv.


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


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change