>> welcome to "lunch money," where we tie together the best stories, interviews, and videos in business news. let's take a look at our menu in politics. the senate prepares to vote on the budget passed by the house last week. we are talking about the robots and drone delivery men. and using a face print instead of a fingerprint. and "the hobbit" crushes it at the weekend box office. and an nfl legend talks coaches, injuries, and whether college players actually get paid. the senate will vote on the $1 trillion budget agreement approved by the house last week the proposal would reduce the

budget deficit by $23 billion and would ease spending cuts by $63 billion over the next three years. many in washington, the strategists, they are taking the bright side, congress got something done. >> we could have been bigger but this is washington and we just could never get a grand compromise, that is not in the cards. i think the deficit will continue to falter magically for the next two or three years. the new focus is not going to be outlays, the new focus is going to be on revenues. i think growth will be a pleasant surprise. for taxpayers and businesses for the market, we now have some predictability and stability. this deal goes until the fall of 2015. with that kind of stability, i think it removes headwinds for the economy. a year ago today we had enormous

headwinds. none of those headwinds are present right now. this is going to reverberate for weeks and months to come. if there is one player that emerged as a big winner, who is a popular player in both wings of the republican party, was paul ryan. it was a big week for paul ryan. >> wall street applauded the effort in washington. jamie dimon was quick to praise the architects of this deal, struck by revisited its patty murray and paul ryan. >> i sent an e-mail to patty murray and paul ryan yesterday, saying thank you. may the lord bless them. if we keep doing this, collaborating, i think america will move rapidly. >> senator murray and representative ryan spoke on the

deal yesterday. >> we saw the spectrum of two possible government shutdowns in 2013. that is not good for anybody, not good for the country. >> i think the grand bargain puts everything on the table. i think we can take steps towards reaching a point where we deal with those tougher issues. >> i asked for what may happen in the senate this week. harry reid sounds optimistic that some sort of budget is going to pass. >> we talked about them not committing suicide by not passing the budget. dick durbin told cbs's "face the nation" that democrats still need the support of their colleagues across the aisle. >> the struggle is still on in the united states senate. we will need eight republicans

to come our way. i feel like we will have a good strong showing from the democratic side. we need good bipartisan support to pass it. >> i think it is important we have this agreement. i am particularly sensitive about the military. i've talked to our military leaders. they say we badly need this relief. >> don't expect politicians to actually start playing nice anytime soon. >> i think no one is satisfied with the way our current deficits stands or the current level of spending. certainly part of the budget copper mines looks to both mandatory and discretionary spending. we have to look overall at the economic health of the nation and how we are spending our money on the government side. that is going to be an ongoing continuing debate. >> what are the long-term prospects for this deal? >> the fact that it is not bad for the fiscal situation, it actually does some good from the economic perspective by

replacing some of the sequester with better cuts -- most importantly, it shows bipartisan cooperation on some of the budgetary trade-offs. i think it is progress. it is obviously disappointing that it is not a real deficit deal. doesn't do much to improve the fiscal picture. they really have to learn to walk before they run. here is a baby step and i think we need to applaud it. it replaces the sequester, part of the sequester, in the short run with some longer-term cuts. given where our economy is, you don't want to do too much deficit reduction now. you don't want to let it go with offsetting that in the future. it adds some certainty. we clearly haven't dealt with the debt. at least we are not going to shut down the government. the way it has been in the past, there has been no certainty as we budget minute to minute. i think it will have some improvements for the economy.

one of the downsides of this deal is it really takes off the pressure of looking the key issues here. the aging of the population and retirement and how to reform the tax code and ways that will generate new revenues. those are the hard issues and the ones they keep on punting. but we have been doing is we have been governing by crisis. at each crisis moment we have not really made progress. there are no foreseeable crises in the next couple of years. it will not force them to do something but it also may mean the people who are interested in getting a deal can come together and start working thoughtfully. >> that sounds good. now the we are starting to see some dealmaking in washington, what is next? >> they would deal with immigration reforms and a bigger budget deal. it was a huge vote. you had to think there are 218 votes for an immigration deal and a bigger budget deal that deals with jobs and the deficits later. >> there we get optimistic about 2014?

>> we need to make sure the debt limit is a nonevent. i hope it will be. i think we may be in for a decent, not great, 2014. the nonfederal sectors of the economy are growing north of three percent. >> coming up, amazon gives us a glimpse of drone filled skies. before he had to break, the president and his family got into the holiday spirit over the weekend, participating in the annual christmas in washington charity show last night. ♪

>> this is "lunch money" on

bloomberg television. we are streaming live on bloomberg.com, your tablet, and smartphone. jeff bezos cracked open a can of worms when he appeared on 60 minutes earlier this month, showing charlie rose the opto copper. this is the drone that can supposedly deliver amazon goes to your doorstep. >> oh, my god. >> these are octocopters. there's no reason they cannot be used as delivery vehicles. i can show you how it works. >> are you talking about delivery here? >> there is an item going into the vehicle. i know this looks like science fiction, it is not. this is early. it is still years away. we can do half hour delivery and we can carry objects up to five pounds, which covers 86% of the items we deliver.

>> i'm an optimist. i know it can't be before 2015 because that is the earliest we could get the rules from the faa. my guess is that is a little optimistic. could be five years? >> amazon is not the only company looking at the possibility of drone packages. >> we have been looking at drone technology for four years now. we have seen many companies that experiment with drones. i think we will pay attention to drone technology. technology is not that far away. i think regulation is years away.

i think technology is an extraordinary challenge. this is further out in the future than we like. >> five years? >> i would say 10 years. >> that is a long time. what about ebay? >> we are not focusing on long- term fantasies. we are focusing on things that will change the consumer experience. >> there's one clear negative vote against drones. we have another one for you. >> while other companies drone on about their risky experimental new methods of package delivery, only groupon is looking forward by looking back. >> the technology is proven and tested. we are talking about principles of package delivery that has been around since the time of king arthur. that guy knew about keeping precious cargoes safe. >> i heard this ominous whistling, like something was coming towards me, and i thought it was a bale of hay or a hot cauldron of oil. it turns out it was my package from groupon and i got 35% off my wireless headphones. i did not even have to come face-to-face with a flying scary robot.

>> we draw the line at creating autonomous robots that buzz by your house, week up your sleeping baby, and takes pictures of you while you are in the shower? i don't know. groupon is about great deals, great service, and medieval catapults. >> coming in 2014, the groupon catapult. >> defense companies love the idea of drones. here is the ceo. >> we found in the wars that the utility of drones is really valuable. i think there are commercial applications. we have some regulatory and policy issues to make sure they are operated safely. we are working with nasa and the faa to find those right systems to make sure that when these drones deliver those packages, they do it in a safe manner. >> how they can the drone

business be? >> question is not if but when. i think that is a bigger question. >> it is about getting it right from a regulatory standpoint. >> that is correct. >> pretty high tech stuff. in other company is delivering its newest drone to the army this month. it is called a maverick and if you are standing on the ground it just looks like a bird.

♪ >> surveillance cameras able to recognize your face as you walk down the street. details are coming up next in our text segment. later, the world's most famous anchorman, why it is hard to walk down the street without seeing ron burgundy. ♪

>> in tech, our focus is on the price of privacy. facial recognition software is turning science fiction into reality. >> it looks for the landmarks, like our nose, ears, eyes. it uses skin skin texture, also, to act. as long as we can detect a few of these landmarks, we can make a match.

>> facebook, walmart, apple, lockheed martin are looking for uses of this technology. your face print could be a huge tool for marketers. what is being done to protect your privacy? some are trying to draft a new voluntary rules of conduct. >> the goal is to come up with an agreement by june. remember the movie "minority report," portraying this world where cameras could target advertisements with facial recognition. geolocation technology is everywhere.

internet giants can match photos to individuals like facebook. he is one of the pioneers of the industry, he calls it a disruptive technology and a perfect storm. >> the technology is a game changer to some extent. automatically creating a database, it allows us to search and retrieve and create links. >> this could be big bigness that big business. on research company says the global market could reach $6.5 billion by 2018. as for safety, cyber attacks are growing. julie hyman has the details. >> look at something called full z. it's your full set of characteristics online.

you are talking about your full name, address, date of birth, and cell phone security number. it also might include your bank account information, credit card information, other types of credentials. would you hear about these various hacking situations and frequently includes -- it does get more expensive. >> what that suggests is that the hackers -- they are not going to use it, they're just going to resell it. >> in some cases, yes they are going to resell it. when you are talking about who might be buying and selling this information, you have the hackers on one hand and on the other you have -- there was one case that happened earlier this year where the hackers were in

russia. it is big chunks. we're not talking about very much for these individuals. >> where else could they be buying your data that you do not realize? >> there was an interesting situation in new jersey, a settlement between the state and a diamond mining company that was also doing a deal with a company called axiom. these companies are not necessarily buying or selling your information to steal your identity for nefarious purposes. it is to do analytics on your identities. they track the history of you going to a particular website and try to figure out what your

trends or characteristics are as a consumer. they then sell that information to somebody else. >> big debut on the italian stock exchange. details are coming up and archie manning on the pay for play debate. that is coming up in sports. ♪

>> we are streaming live on bloomberg.com, your tablet, and smartphone. after a weekend of mass protests in the ukraine, the country's president is on the way to moscow to in south africa, a 30 foot high statue of the late nelson mandela was unveiled today. the statues on the grounds of the union building where he delivered his inaugural speech. mandela was buried yesterday in

the village that was his childhood home. and google dives even deeper into robotics. this is a company whose robots can climb and even run 25 miles per hour. boston dynamics makes robots for the u.s. military. google says it will honor those contracts and does not plan on seeking new defense deals. no word on the price tag. we're going to start with virtual currency. matt miller has been covering the 12 days of bitcoin. today he looks at putting some in your retirement account, using a new trust with start up second market. >> last week i read more on how you can invest in this. barry silver is a guy whom i have been talking about this for a little bit.

he started second market. >> private shares of what they hope our soon-to-be public companies. >> it was made famous by the facebook ipo. it was active in a lot of other ways. he started this investment trust and it raised about $70 million so far. 90 people have invested in it. you have to be a credited investor or an institution in order to invest in it and there are ways to get in through investment trusts. several financial institutions allow people to invest in them indirectly as long as you invest a minimum of $25,000. it is possible.

>> the question is by the time you request that you retire, is bitcoin owing to even be around? >> he makes the point that this is a very risky investment. you are either going to lose all your money or it will be a very meaningful return. it is highly speculative. >> we have a way you can spend your bitcoins. it made its debut on the lawn stock today, rising 40% above the offering price. there are 27 buyers for every share of the ipo. the company is valued at $5 billion. montclair is hot. what about retail in general? let's ask the author of "bargain fever." >> if you saw the sales increase in november, it was 1.3%. that is the lowest it has been. >> is it just bricks and mortar,

no amazon yes? >> have you been to a store recently? have you felt the palpable desperation? >> what does that mean for the post-christmas sales? lot of people hold off on buying things until december 25, when the real discounts begin. will it be more extreme this year? >> it will be like rummaging in a bizarre. it is going to be a frenzy. i think it will be interesting to see how they review the whole season in january. >> does your bargain fever transcends the luxury brands? clock speed is more evident at

the luxury brands. everyone assumes mass markets were discounting. it was secretly the highest and brands that were cutting prices. i hope they have their fingers crossed. they are all lying. >> if i drag scarlet to the chanel booth, am i going to see a 30% discount? >> they can do what many people can't, which is lower the risk of growth. so many brands are being bullied by wall street to show growth. that is the enemy of fashion. >> before we get to j.c. penney, does that mean montclair will be forced to do the same? >> once you put yourself -- it is like the paradigm -- her boyfriend was the one, the real- life mr. big pushed those labels and a push for more growth. >> how do they discount the upper label brands? i know i am going to go to walmart. if you are making eight figures you are not going to walmart.

>> your sales assistant has called you and said private sales have started a week before the regular sales, would you like to shop secretly at 40% off before joe blow can walk in and grab something cheaply? sales are being used smartly as a reward for loyalty. >> peter jackson has done it again. we are could take a look at his winning strategy for the hobbit trilogy. we sit down with a college football hall of famer. we also asked him about the pay for play debate. ♪

>> we are streaming live on bloomberg.com your tablet, and your smartphone. i am adam johnson. we start with the weekend box office.

"the hobbit" took an close to $74 million. "frozen" finished second with about $22 million. "anchorman" fans, this is your big week. ron burgundy is everywhere. take a look at the pr machine. >> a movie that came out of nine years ago and earned a respectable $95 million is about to spawn a sequel that may be the comedy hit of the holiday season and >> that is the dumbest thing i have ever heard. >> let's get the obvious out of the way, "anchorman" became a cult classic. >> i dig, we all dig. >> i haven't seen the sequel yet, but already it is a marketing juggernaut. in the year and a half since the movie was announced there has

been a museum exhibit, a tv commercial for suvs. they even renamed a college. movie tie-ins are no new thing. >> this is ron burgundy for espn. >> people like will ferrell and director adam mckay are no strangers to media. their comedy website already makes $30 million per year. the other reason is ron burgundy is a character that comes along once a decade. >> i love scotch, here it goes down, down into my belly. >> we love he is selling us. durango's, that there is an ice cream flavor named after him. it probably won't tank.

you can be sure to see this kind of marketing on lots of other movies. a strategy does not work unless you have the goods. weinberg and he is kind of a big deal. >> putting ron burgundy everywhere is part of the story. great content as others. viacom is the media giant behind this movie. >> there is a lot going on. at the end of the day it starts and ends with great content. what you see in anchorman to is great content. will ferrell is an incredibly engaging character. there has been great buzz about the film. having great content and aggressively marketing its a you can distributed across platforms is the name of the game. we think in the world of living

media, the multiple platforms, wired weather, and mobile. we are seeing people consume things in different way. they are really today's digital water cooler. it is where people gather to talk about things they love or hate. certainly entertainment content is at the top of the rankings. >> do we need to get more integrate it with 2013, be it twitter or -- what do you want to make sure you don't miss the boat on? >> at the end of the day

everyone competes for consumer time. if there is one game, it is how do you get more of the time and attention? whether that is in a movie theater, in front of some device, we are very focused on research. i think as a media network company we do more research than anyone in the world. all are key demographics, whether it is a kids demographic or nickelodeon brand or mtv brand, and the adult demographics are round things like comedy central. we are studying not only what they want but how they wanted. it is important to maintaining your mind share with them. >> from one american pastime to another, archie manning speaks with pimm fox. we have the best of that interview next. ♪

>> this is "lunch money," we are still alive on bloomberg.com, your tablet, and smartphone. in sports, we are focusing on football.

panthers lead the jet. the jets now dropped to six and eight. pain at the giants stadium. the seattle seahawks shut out new york 23-0. it was so bad. speaking of manning, archie manning joined pimm fox last week. this is how he got his start. >> i have been through playing football for 30 years now. dealey reason ibo remembered i played was two of my sons played in college and still play in the national football league. i am a mississippi boy. i played football there,

graduated, met my wife there. i loved the experience. we had good teams in college and i was fortunate enough to get drafted to play football for the new orleans saints. i was fulfilling my childhood dream of being a professional athlete. there are things that most people forget. they forget i play football but the fact that my sons play -- >> what you think about all this talk of paying college athletes? >> i don't think the players need to be paid. i think college education is a wonderful we weren't. don't worry too much about pro ball. enjoy the college experience and

get that education. most players aren't going to go into pro football. the main thing is get a degree in college education. >> as a former athlete and father, he was asked about excessive roughness and concussions. >> we need to make sure we get back -- i think football is a great game. there are a lot of life lessons for young men to play the game of football. our games have to be safe. we have to start at the youth leagues and getting back to

teaching. the right way to tackle. i think football is addressing that and trying to get it right. >> no i in team. >> it is good for kids to play a lot of different sports. i don't think you should specialize when you are 10 years old. parents should get involved. if you are playing tennis or golf, those are individual sports you can go up there and be as good as you can be. a small, basketball, football, hockey, these are team sports and most of the time, that is what we are at here in the business world. you are a team.

and people who don't know the concept, don't appreciate the concept of teamwork and leadership, they are not going to be successful in business. >> you can watch the interview on bloomberg.com or on our award-winning tablet app. lighting the christmas tree in st. petersburg square. ♪

>> bloomberg television is on the market. today, it is the busiest day of the year. ups is expected to pick up 34 million packages. it is also the first holiday season that ups will be using

orion. ups has been working on the algorithm for a decade. this is the algorithm that makes ups take. -- tick. is changing the world of package delivery. we are a technology company that has trucks. >> it is a program 10 years in the making. >> with 120 deliveries, there are more ways to service those customers. is going to run 200,000 different alternatives. it will say here is the best way

to deliver. >> each truck has over 200 sensors that monitor everything drivers do. of that fed into the mathematical equation that prioritizes such variables. >> our goal was trying to take a look at some small gains. on our scale, small turns out to be rather significant. starting with the company's first delivery car, a model t ford in 1913. then the first conveyor belt system for handling packages. this year, it is orion. >> how is it a game changer? >> by the end of 2013, we will

only have a portion of our fleet and it will save a million and a half gallons of fuel. it will adjust on the fly. >> when people think ups, they do not think technology. >> everybody uses google maps. i am sorry, but google maps are not accurate enough for a ups driver. we have a world-class i.t. group many people do not know about that makes magic here. that wasnot just ups busy today. the world's second-largest leasing company will more than triple the air cap fleet. the deal requires regulatory and shareholder approval.

todayher big deal in news , $6.6 billion. it is the second-largest in the semi conductor industry. a look at how the broader markets fared today. stocks rallied across the board. this is ahead of the two-day fomc meeting. ♪