Transcripts For BLOOMBERG Bloomberg 20140108 : vimarsana.com

Kicking off attack and the big show known as ces. The annual consumer electronic show. Every year the Biggest Companies and innovators end up in las vegas. They bring tvs, smartphones, robots, you name it or it a all looking for buzz. Sorts of stuff. Everyone is trying to pitch you on what you have going on. Paul, has a big move here. Dish service revisors qualcomm as a big booth here. Dish service providers. You would expect the biggest news on day one would be some old technological innovation and achievement. Think again. What i tried to do, as the director, i tried to the type is all off. Sorry. I will wing this. Tell us what you think. We will wing this right now. I try to take people on an emotional ride. , um the curves . How do you think is going to impact how viewers experience your movies . Excuse me. I am sorry. I am sorry. Ok. Ladies and gentlemen, let us think michael bay for joining us. [applause] so, lets talk a little bit about some other you hd tvs uhd tvs. Sorry about that folks. There it is in all its awkward glory. Michael bay later posted on his website, wow, i just embarrassed myself at ces. Yes. You and a samsung. It was trying to show how with 105 inch curved screen is old for high definition. You can change the surface of the screen from flat to curved with a touch of a button. Ok, there are the actual details. Samsung was trying to put its best foot forward. It just posted its first profit decline in nine quarters. New apple iphones and cheaper devices in china have been eating into sales. Blackberry 10 remember them . There trying to put their best foot forward at ces. Good luck with that. The company under new leadership is trying to get back to its roots. I think there are enough in a market. I will not confirm or deny. I personally love the keyboards. You will look to blackberry Going Forward to the boards keyboards, i would not use the word exclusively, but predominantly. The new chief of blackberry john chen speaking with jon erlichman. Theyre going back to the that blackberry loyalists love to much. Ron is a very creative guy. What impressed me about him he could take a phone, you touch a phone. He will look at a phone 30 yards or 40 yards and he would tell you a lot about the phone. I think he is more in touch with not only be technology designed to make a phone great but how people like the phone. Ok, he is a phone guy. Full technology is a big theme at ces. John ehrlichman takes a look. We have heard of google glass and Samsung Smart watch. We are entering a world of wearables. There are lots of wearable devices here. So i figured, why not wear myself out . This guy here is the autologous autographer. Measures yourre heart beat. It knows when i should work out. If i did a heavy workout the day before, it says wait a second fouryear big workout. This measures fitness. It measures your sleep. It also has a little emergency button which i can push or if i pull it will alert via gps someone that i am in trouble. Ouret it up so we will text producer if i get into some hot water. Next up, this is for kids or their parents. It is for 511 years old. The cost is 199. 10 additionally per month to place calls to your parents from this or to have calls from your parents to this. You can create a gps safe zone. If they go outside of it, you can send them a text to find out where they are. On my left wrist i have the basis, which is met wearable health. It is measuring blood flow and house e sweaty i get. On my right wrist, this will help you to get in shape. I feeling a little worn out. You can pick out your with a smartrobe phone that vendors are trying to show off. It is controlled by a Company Called smart things. Check it out. This is not really look like the home of the future, does it . It looks like a mcmansion outside of las vegas. It is them outfitted with the latest technologies. I will go inside and t gu who is bringing the home of tomorrow to us today. What exactly is smart things providing . It is the kind of internet of things now. It simple and accessible to make your home into a smart home. I can unlock and lock doors over the app. It is something anyone can do. We are an open platform. There are more than 500 developers connecting and developing things. There a few possibilities. Here is how it works when you wake up in your bed. Own upre wearing a job 24 and you have a smart phone in your house. A button and this starts a bunch of systems in your house. It just become smart around you. Smart is not you having to open the app and do things with it. It is the house knowing what is happening and responding. When i open this cap that a daily detector give me a update. Good morning. Smart thing started brewing your coffee. I will play the local news now. What are some of the other ways that this can be used, for example, with security . Smart things can also detect when you leave. It would suddenly become a security system. If youre away from home and there was motion say on the front or touch front porch, my son could play a privative sound for a potential burglar. [dogs barking] in las you expect to see vegas this year . I think this is the year when it goes mainstream. It has become easy and indispensable enough for anyone. Inexpensive enough for anyone. Obviously theyre having fun at ces this week and you can watch it on bwest. Not just the cold keeping stranded travelers in line for the next flight. We have the details. Jpmorgan set to pay billions to its made off the victims. How will this impact the bake bank . Wildfires are impacting chile. It is causing the worst levels of air pollution in 15 years. This is lunch money. We are streaming live on bloomberg. Com, your tablet, and your smart phone. Motors today, you may have been one of the many stuck in the airport. Airlines canceled more than 3800 yesterday alone. That is 10,000 since saturday. Jetblue has scrubbed 526 flights, but promises to be back to 100 by the end of today. It is not just the bad weather. There are new faa guidelines that require all commercial Pilots Received 30 uninterrupted offduty hours per week. That is 25 more than before. Pilots are getting more rest, but it means there are fewer flights for passengers. Boeing reported record deliveries for 2013. From 2012. It is the most ever in a single year. Boeing is going to hold onto the crown of the Worlds Largest plane maker for the second year in a row, beating airbus in the process. Their newest jet, the 777x is being positioned as the next generation of efficient long haul jets. It will be built in washington. That means more jobs and money for the state. This victory was not an easy one. Only 51 of the machinists approved the deal. We spoke with jay inslee. He explained why the vote was so close. This was a decision where people had to face prospect of job loss. To prevent that required they had to consent to things they have been fighting for for decades. They made the decision to move forward to build this jet and its derivative models for decades to come. That is going to make an Enormous Economic impact for the state of washington. The carbon fiber wing represents the cutting edge future of aerospace and a whole host of other products as well. It was a decision to move forward to keep Washington State as the center of aerospace in the world. We have several decades of dominance that we are looking forward to. The rating agencies have said that if the machinists didnt ratify the contract and production moved out of Washington State, Washington State was going to get its Credit Rating lowered. What do you do to try to bring in other businesses and diversify the Washington State economy . We were created an Incentive Program to make sure we have the right tax structure in place that made sense for boeing in the state of washington. We did that in quick fashion. It had a commonsense provision that had some tax incentives that will guarantee that boeing stays here with all subsequent derivative models. Theres also the protection that boeing not open a second line and divert jobs out of the state. That returns net revenues. We are active in regard to that. We also had a robust and comprehensive Training Program to guarantee boeing have workers to get the job done. We have one of the best systems that is going to allow a millionsquarefoot building to be permitted in short order. We are firing on all cylinders and it worked. As boeing makes headway, there is an ending era of aviation. Matt miller takes a look at this loud but iconic plane. Delta flew the first dc9. It was back in december 1965. 45 years later, it is retiring the beloved but outdated model. It was a revolution when it was unveiled. It was fast, comfortable, and functional. It was able to take off and land on short runways at regional airports. None of that matters now. The dc9 burns too much fuel. They are also noisy. Throughout the 1960s, the dc9 was modified with the last one built in 1982. Pilots have said that the plane was a joy to fly, but it made you earn your pay. There are no electronic displays or fight control computers on a dc9. Say farewell to the dc9, but its lineage lives on a bit. The next time you step aboard a boeing 717, know that both airplanes were derived from the dc9. It is a plane with a legacy. From high in the sky to just plain high. Bloomberg its an inside look at a new business of recreational pot in colorado. The Winter Olympics, they are only weeks away, but china is looking to 2022. Sports coming up later in this hour. Innovating on a high. Recreational use of marijuana became legal in colorado. As the market opens up, people are being creative. Trish regan explains. It is a new twist on an old high. It is packing a heated punch. It is clean. He uses a blowtorch to get a super concentrated hit of thc. It is the chemical in marijuana that makes people hide. High. A joint is made up of flowers that has anywhere from 13 to 20 thc. The extract that we have today is around 90 . It is great. Same drug, just made more potent through chemical engineering. It is a concentrate of cannabis. The flowers are rinsed with a solvent in a lab. What is left behind is almost a pure blob of thc. It is called butane hash doyle. Oil. What jake will do is heat it up until it is redhot. Once he gets it to the point, he will put the dome on it. The dome captures all of the smoke. Recreational use of pot is now legal in colorado and Washington State. That includes davits. The Legalization Movement message has always been that pot is safe. As these striking videos show, amateurs have caused explosions while trying to make Butane Hash Oil in home kitchens. There have been reports of them passing out from intense highs. That has some worried about what that means for the newly Legal Marijuana business. Could it hurt the industry . Absolutely. I have heard people call it herojuana. We do not need that. We are in the process of taking an industry from the black market to the fully legalized market. Lets do it responsibly and carefully. Some people are put off by this. Does that hurt the industry . I think the naysayers and people who are opposed like to use this as ammunition. Marijuana has never killed anyone. The oil is more expensive than pot flowers. A gram costs 50 versus 15 for a gram of pot. The joke is a dab will do you. Are you feeling it right now . Of course. Trish regan, bloomberg news, denver, colorado. Janet yellen prepares to head the Federal Reserve. What challenges does she face . We will take a look. What is the price of ignoring a ponzi scheme . We will examine the jpmorgan settlement. We will be right back. This is lunch money, streaming live on bloomberg. Com. Todays moving pictures, where the video is the story. Temperatures are plunging as a mass of arctic air fleets across the country. You talk about falling far and fast it was 50 in central park yesterday. Scientists call the cold very polar vortex. Cap kept her commitment to appear, after being injured in a Cross Country ski accident last month. It took a furious secondhalf comeback capped by a lastminute touchdown by Florida State one College Football plus title game. Its snapped a seven year winning streak by sed sec teams. Made a portrait jpmorgan for more than 20 years before confessing to fraud. Jpmorgan had concerns that Bernie Madoff internally . Internally. These returns are too good to be true and all this good stuff. He failed to escalate that to the proper regulatory authorities by filing a report. Other required to under the law . Banks have to have a very hefty Bank Compliance program. In failing to do that, it cost them 1. 7 billion. According to the southern district, who announced it is going to be going to Bernie Madoffs victims. We dont have specific details. There is incriminating evidence, emails that established the wrongdoing that the government alleges. The key thing in this key thing in this case is that they signed a deferred prosecution agreement but which means that they neglected to prosecute. Several banks have done this and this is jpmorgans second deferred prosecution agreement. This is a big deal for them, because admitting to criminal charges not a lot of banks do , that. The former finance chief testified that Bernie Madoffs former workers asked for payment in diamonds. Incredible. Billion plan to extend on benefits to unemployed americans cleared april limoneira vote in the senate this morning. The bill would reinstate jobless benefits that expire december 20 for another three months. Congress voted today because they failed to act before the holiday break. 60 senators voted to move ahead with the debate on the measure. The exact number required to move forward and avoid a filibuster. No word on when they will begin the debate, but at least they will debate. It will face considerable opposition before it lands opposition from the gop before gets on the president s desk. Unemployment insurance has been a vital economic lifeline. For a lot of able it is the only source of income they have to support their families while they look for a new job. These are not folks who are just sitting back, waiting for things to happen. They are out there actively looking for work. One vote that also narrowly made it janet yellen confirmation of the 15th fed chairman. The senate voted 56 to 26 of a 26. That is the fewest yea votes confirming a chairman. Very reasures treasury secretary Larry Summers saiz says it could be rocky. Im not going to either describe, or predict for the Federal Reserve rate of they have a very complicated set of tradeoffs that they have to manage tradeoffs that are made much more difficult for them because of the support for the economy. I hope that the necessary steps are taken with fiscal policy. I hope the optimists about what the private sector will do this year turn out to be right. I hope the rest of the world is right is strong in a way that supports our exports. But fundamentally, here is the one question everyone should ask themselves if a moment when we can borrow money in a currency we print ourselves, or longterm at less than three percent, and a moment when the construction unemployed right approaches double digits is not the moment to fix kennedy airport, when will that moment ever come . We need to be supporting our infrastructure, which has been allowed to languish over the last decade. It gets worse every year. What possible logic could there have been to the significant cutback to Public Investment that took place in 2008 and right now . At a moment when the economy is weaker than it has been, when investment struggles, and the flow of credit is problematic. How could that have been the right moment to cut back Public Investment . It does not make any sense for us as a country. Now, when Interest Rates are so low, when the risks of crowding out are minimal, that is the moment when there is a strong case for fiscal action. Janet yellen is expected to begin her new post on february 1. She is the first woman to lead the Federal Reserve and the democrat to lead sent paul first volcker. The 2014 olympics are around the corner but companies countries are already bidding on 2022. Were looking out one country is trying to grab the top spot. Later, how does a billionaire relax . We will give you an inside scoop on Richard Bransons retreat. You think youre tough . Take a look at these guys and gals, 700 swimmers that took part in the winter swim race. The chinese city sits on the edge of siberia and did its best to make the conditions bone chilling. That pool is actually a whole that was hacked in the ice of a local river. In sports, you are not going to see lindsay vonn at the Winter Olympics. She has decided to undergo surgery on her right knee. She injured her knee last january and that she reinjured it back in november. She is expected to recover in time for the world 1415 ski cup. Were talking about beijing, which held the summer games just five years ago. Our chinese correspondent heads to the slopes to see if they can actually do it again. We need to drive at least four hours road west of beijing to get to where deal of the organizers want to hold many of the outdoor olympic events eight years from now. The problem is that beijing sits in a bone dry basin, and the peaks are not that tall either. These are some of the tallest hills around beijing but it is already january, and there is no snow to be seen. Just the great wall ahead of us. Not making it too ideal for a Winter Olympics in beijing. Making matters more challenging, is that it is a water scarce city in the heart of coal and steel making country. Here i thought we were getting out of beijing away from this. China will undoubtedly throw billions at cleaning things up by and including a highspeed rail link to the slopes, but theres much more work to be done. Theres no snow at all. The last mile to the mountain offers few clues to a winter resort, this is january, and when we last see the slopes, it is evident it is all manmade snow. Ready to go. This is one of the newer ski resorts in the area, with 30 trails, a gondola, and a heated chairlift. They have just begun. 22 ski lifts our plan are planned. Are not long or challenging, but skiing is a relatively new sport for the chinese. China should have a chance. It is about will. Chinas economy is quite strong when the government is quite committed on these fronts. There isnt a single slope in this resort that conforms to olympic regulations. But there are a couple of resorts being built nearby that meet the minimum standards. It might not be known for snow, but it is known for its bitter chilly wind. It is also extremely icy. Worldclass . Not at all. A great hill, not bad for china, but not worldclass. If youre going to try to have the olympics here, what you need is a village with all of the amenities from a by the time you get there with all of the amenities, you need snow. Here, it is tough to get. It is a good place to come. I dont think it is ready for the orbix yet. They are dating against five other cities from poland, sweden, your crane ukraine, and catholic stand kazakhstan. The 2018 Winter Olympics are set for south korea. You have to check out the models at the london boat show. Well take you there maybe we can take that new yacht to a secluded island. For the right price you can even vacation like a billionaire. Well show you Richard Bransons island. The most prestigious league. Builder is looking east to secure its future. They are trying to convince the chinese that super yachts of the toys they have to have. Sete the newest yacht will its fans back just over 3. 5 million. Wills of the 75 footer come from halfway around the world to buy it. Sun seeker made james bonds wrote. If the world is not enough, they even made the villains vessel. Fastforward to the real world and you find that the people who own sun seekers could change. Largestr, chinas Property Developer was going to buy 30 of them. He decided to buy the entire company instead. As in 4040 meters it is the sun seeker boat for billionaires. Given the focus on china, give me an example of how the boats are changing. Very easy to answer that. There is a karaoke machine on almost every vessel. Sun seeker is not so many boats in china, yet. The new owner is betting the . 5 billion that he paid will change. Youll need a boat to get to this place. Necker island, Richard Bransons island. Of pure 73 acres paradise. It is part of the virgin islands, and for sir richard branson, it is the place he calls home. Welcome. From this location point you can see the whole island. This is richards private residence. In true branson style he managed to get it for just 150,000. I thought it was great to get together 100,000. I thought i could scrape together at least 100,000. He built it as a playground for himself and his guests. Three years after building his utopia, a single strike of lightning burned it all down. It hit right in the middle of the house. It was the most horrible feeling ever. The main structure caught fire with bransons family inside the they watched from the private residence 200 yards away. Looking up at the house and seeing 300 foot flames coming up, knowing that mothers, daughters, nephews and nieces, everyone dear to you was inside the house, not knowing whether they were safe. I just wanted to get to the house. Everybody was out. Everyone was fine. 25 months, and 17 million later, the greathouse was back, and 20 bigger. It feels like the most beautiful home in the whole wide world. A home that you and your friends can rent for 60,000 a night. The island is all yours, and ready to give you entertained, with tennis feeding endangered lemurs from madagascar, or hitting the water. Rain or shine, you have to hit the water. Mystery meat what it is like to be doing on a wing man. Americas most exclusive dinner reservation. It has just one employee and it takes years to get a table. Rachel green got in the door. Is the kind of food you dream about. Begins with a trip down this long, winding road to the remote frown of earl 10, new york. It ends in this guys abasement. One minor issue it could take you five years to get in these doors. 130 miles from manhattan, he has created one of the most exclusive reservations in the planet. That is what i hear. I still cant believe. I would never imagine it would end up like this. Chef or cook, as he prefers to be called, did not attend culinary school. He barely even built an 8 work in a restaurant before he built this house and started serving fourstar meals to willing patrons. Yikes it has died of snowballed over the years. All because of the guests telling others where it have never gotten the media coverage. Gets you55 base price 1620 courses, all conceived, farmed, prepared, and served it by damon. From belgium,ests abu dhabi, dubai. Foodies travel far and wide to get a taste of this not so cutting edge cuisine. It is more than the cuisine i have developed over the last two years. It is my way of life, living off the land. About form tables, but this is taking it to a new level. Exit occur to me one day that everything i needed was on the property. Everyone was overgrown anything there knows there is something about it. Taking that and being able to serve it is so rewarding and for filling. People always ask me how you do this during the window. Winter. The starch turns to sugar in all of these vegetables and that prevents them from going into deep freeze. I have all different kinds of carrots, turnips, rutabagas, leaks, scallions, even garlic. You have a five year waiting list for your restaurant. That is not typical. I know. Some folks get frustrated. There was a group i put on the list about two years ago and the gentleman wrote that we are all in our late 70s to mid 80s. We want to come before we die. They come inw when this basement that they will get one of the best meals of their life. It is not just going to dinner. I like to treat every guest like theyre going to be here once. I may never see them again and i want them to remember it forever. As what i try to do. That is what i try to do. U. S. . Nk it is cold in the try visiting our neighbors up north in canada. It is a truck made of ice. Pretty cool right. Ride