>> welcome to "lunch money," where we tie together the best interviews and video in business news. let's take a look at the menu today. season's greetings from president obama, and the man who took on the president's intel machine. we have the best of list, straight from the launchpad. a decade behind bars. on wall street, he had to pay back millions. we will hear from the man who supervised liquidation. how top execs kick back, from building lego models to blowing stuff up. we will kick it off with the

world's biggest shipping companies, who pride themselves in getting things where they need to be and doing it on time. >> it was a sparse christmas for some this year. shippers and retailers missed the delivery targets because of an avalanche of last-minute holiday orders. ups noted on its website that it missed some targets, and will start resuming delivery. >> there something about ups logisitics? ♪ >> music not so sweet this morning. ups and fedex did damage control over all these late deliveries. the company had a massive influx of online shopping, but expecting it was not good enough.

>> we expect our average volume between thanksgiving and christmas will be up about 8%. we will pray for good weather and hopefully get all the procrastinators' presents to their homes on time. >> apologies abound this morning. ups said in a statement, the company is, quote, making every effort to get packages to their destination. the volume of packages exceeded the capacity of our network following christmas. fedex says, quote -- >> i think this shows the entire supply chain was overwhelmed in these last several days, and what it really illustrates for people is the extraordinary growth of e-commerce. the flip side is waiting around to click the mouse.

>> amazon, the company pushing those packages out the door and handing them over to fedex and ups, wants to make good with its customers, so it is offering $20 gift cards and refunds on shipping charges. amazon is still pointing the finger, saying we processed those packages in time for holiday delivery -- it was their transportation network that screwed up. what comes out ahead in the court of public opinion? >> nobody comes out ahead. it's too late for the retailers to benefit for it much. all the retailers who have been shipping online get a bad rush as well because they did not deliver when they should have. >> ups says all the packages will be delivered today. it will refund air and international shipments made during the peak season, but not for ground shipments.

no guarantee for ground orders made after december 11. could a retail giant like amazon ever cut out the middleman? >> it is entirely possible that amazon could vertically integrate downstream to the shipping and fulfillment part of it. they have their own distribution centers. if they develop their own fleet, that is a much bigger challenge. we don't deliver stuff with drones quite yet. it may be more efficient to contract out the way it does now with ups or usps. >> don't forget about the postal service. the bottom line, realities are changing. starting january 26, stamps will cost $.49, up from $.46. happy new year. president obama and edwards

snowden sending their season's greetings by video. a worst-case scenario that a guy like snowden might learn to crash land a helicopter. ♪

>> this is "lunch money." we are also streaming live on bloomberg.com. president obama and his first lady spent the christmas holiday with marines in hawaii.

he also called military service members, including those hurt during the evacuation mission in the southern sudan earlier this week. here are the president first lady and their message to the country. >> hello everybody, and happy holidays. >> we are not going to take much of your time, but we did want to take a moment to wish you all a merry christmas from our family to yours. >> this is a season for millions of americans to be together with family, continue long-held holiday traditions, and show our gratitude to those we love. some of us might even watch a little basketball or eat some christmas cookies too. >> here at the white house, we have had about 70,000 people from all across the country come visit and look at our holiday decorations. this year's theme was, gather around, stories of the season. in every room of the house, we try to tell a story about who we are as americans.

>> here is a message with a different tone. >> hi, and merry christmas. i'm honored to have a chance to speak with you and your family this year. recently we learned that our governments have created a system of worldwide mass surveillance, watching everything we do. great britain's george orwell warns us of the danger of this kind of information. the types of collection in the book, microphones and video cameras, tvs that watch us, are nothing compared to what we have available today. we have sensors in our pockets track us everywhere we go. think about what this means for the privacy of the average person. a child born today will grow up with no conception of privacy at all. >> that was kind of weird, and

what a contrast, edward snowden delivering his holiday message via britain's channel four. comparing government spy programs to george orwell's novel "1984." how is that for a season's greeting? >> i think he's a criminal who violated the contract he signed with the u.s. government, and if he's ever captured, will spend the rest of his life in prison for it. he did indicate one of the big issues for corporate security, that major corporations have been spending billions of dollars on cyber security. what snowden showed more graphically than anything else is how a highly expert motivated insider can get your most sensitive data out in the open. that's what he did, and that is what corporate america is terrified about. >> for all the security, for all the billions spent on security, one guy can take down the system. >> that is the essence of it, a highly motivated insider with the right kind of access, who

knows what he's doing, can hurt you in ways beyond what outsiders can do. >> reviled or revered, snowden opened a can of worms. >> there are a number of companies that have mass amounts of information on you. the social media economy is based on you and all the users providing data in exchange for a service, and the basic deal is you give your data, you benefit from an interesting experience online, and they can use it to market against you and to sell and have it be data mined, something you consented to. >> we talked about this on tuesday. amazon is not going to show up at my door with a warrant or break down my door because i gave them my shopping data. >> that's right, but the people who show up at your door have the power to serve warrants against amazon and everyone else, and get that data from them automatically in a

compulsory way. when amazon is served with a warrant by the u.s. government or german government, they must hand it over. ♪

>>, today the best in 2013. we revisit some of our most memorable flying machines. landing of thehe rocket spacex.

totally awesome, right? smooth landings are not always an option, and that is why sometimes you have to learn how to crash on purpose. ♪ >> a student is required to perform emergency measures. the hardest thing about an emergency procedure is the

anxiety and fear factor. it's the thing you have got to go over. when we practice, the helicopter is descending at a rapid rate. when we land with an engine, we control the speed at which we land. we are coming down, we are descending at 2000 feet per minute. we perform the maneuver in three stages. the second stage is the glide. the third stage is recovery.

we level out and we use the energy in the rotor system to cushion our landing. >> here is a look at silicon valley's favorite way to get around, jets as high-tech as the passengers. >> high tech is taking to the friendly skies. the private friendly skies. private jets company jet suite is in expansion mode, fueled by high money and high-tech planes. is this on the cutting edge of technology and aviation? >> it is. most of the airplanes on the ramp don't have anything like this on board. i used to fly a learjet, but it was nothing compared to this. >> that is the garmin g 1000 prodigy, top-of-the-line integrated.

>> all the aspects of the aircraft are shown to you on the screen. it will show you which doors are open, your hydraulic pressure, oxygen pressure, emergency brake. it also shows you what your fuel is doing at that exact moment. >> i think the insides were designed by bmw? >> absolutely cutting edge glass cockpit. >> having as much technology that can help with the safety and experience is really important for jet suite. >> hsieh has focused on problems in the private jet industry and special perks. >> i can't live without wi-fi.

so getting wi-fi installed on all the planes -- >> what are the sort of business problems that you have to avoid in this industry? >> if you look at the private air industry in general, it's usually a lot of really big planes. the average number of people flying is between one and a half to two and a half passengers. it is the equivalent of taking a winnebago to the supermarket. >> in an industry that typically goes big to go home, jet suite is going small with a focus on tech and customer service. >> when you think of it, customer service makes a huge difference. company culture makes a huge efforts. i gravitate towards companies that care about those things. >> check out all of our videos online. go to bloomberg.com/video. what do execs do with all their free time?

this guy blows stuff up in the middle of the desert. what is life like in a russian jail? mikhail khodorkovsky used to be russia's richest man until he was thrown in jail. now he is speaking out. ♪

>> this is lunch money on bloomberg television. we're also streaming live. today's moving pictures where the video is the story, and thailand officials want to delay an upcoming election after a riot by antigovernment protesters. clashes were sparked by demonstrators after they tried to disrupt february elections. protesters want election rules rewritten to make sure that the family of the prime minister does not keep control. shinzo abe became the first japanese prime minister to visit the shrine and seven years. it memorializes some world war ii criminals.

pope francis delivered his first christmas day message to more than 100,000 people in front of the vatican. the pope called for peace on earth, citing conflicts in syria, south sudan, and elsewhere. peace calls for daily commitment, the pope told the crowd. once russia's richest man, mikhail khodorkovsky is now in berlin just days after his pardon by president vladimir putin. the ex-oil tycoon had spent more than 10 years in jail. khodorkovsky sat down for an exclusive interview with ryan chilcote and give us a firsthand glimpse of what it's like to actually live in a russian jail. >> describe your single most difficult day in prison. >> i had around 4000 difficult days. to say which was the most difficult is pretty tough.

maybe the most difficult day was when i saw them starting to destroy the company. or maybe the most day was when i learned that the company's legal counsel had died. or maybe the toughest day was when i got knifed in the face. >> stabbed with a knife? >> it's difficult. >> what was the most difficult thing about prison? >> the most unpleasant part of prison was the feeling of wasting time. ,ood, clothes, enclosed space that stuff you can get used to

if you have a little bit of self-discipline. i spent all of those years in prison under so-called double surveillance. >> a prison within a prison? >> yes, and even a third prison. the first level is where you are a prisoner like everybody else. the second level is when there is a camera trained on your work station. the third level, just to give you an example, is when there are at least four other prisoners reporting back to the authorities on your every move. >> because president putin was personally interested in how you were treated? >> of course. >> after mikhail khodorkovsky's imprisonment, his company was dismantled and auctioned off.

most of the assets were transferred. the ceo approached mikhail khodorkovsky with a preposition immediately after his release from prison. >> after you were released, the head of rosneft, to a certain extent which exists because of the assets that were part of yukos, said he would be happy to give you a job. he was joking. maybe he was actually mocking you. how does that make you feel? i know that right up to the end, he was trying to convince the country's leadership not to free me.

only because he was personally afraid of something. a man who wants to joke around with an opponent should not use the power of the state to get rid of him. >> watch more of our interview online or on your mobile device with a bloomberg tv plus apps. he stole millions but only served 22 months in jail. the story of the wolf of wall street is next. building an entire city with legos. it is the tweet that made hundreds of thousands of tween girls cry themselves to sleep on christmas eve. justin bieber announcing on twitter that he is retiring. 40 minutes later, he seems to back off, saying i'm never leaving you. being a believer is a lifestyle, and i'm here forever. ♪

>> the wolf of wall street hit theaters yesterday, a true story about a stock salesman who defrauded clients and was ordered to pay back $110 million. >> what they did is they went out and got all of these young kids from long island. they said, go sell. you had these young kids who went out and would tell stories to old people and fleece some other ira's and tell them stories like, you have got to make all of this money. they were driving around at 22 years old with their porsches.

>> where were the regulators? >> they were there. regulators came in pretty early. all the phone calls had been taped by the time we came in. they were still selling and still lying to sell while they were being taped, and knew they were being taped. >> they knew they were being taped. is there an argument to make that these fools did not even know what they were doing? >> it was pure greed. the young kids were saying, were going to sell the stock and we're being told this is a stock we should be selling, so how should we be doing it? we deposed a lot of these people and we would say to these kids, what were you thinking?

>> what were they thinking? >> they wanted to be rich. it's all about sales. you don't need to tell the truth. i think what happens to people is they start off kind of small and then they say, we're going to get into something. they take a chance and step over that line, and they keep going and he gets bigger and bigger. at some point you cannot turn back. i'm not sure if he thought he was going to get caught or not. he was caught up in the sex, drugs, rock 'n roll, yachts. it was this very small community in long island. i know so many people who grew up in the great neck area who say, my father worked there, my brother worked there. they were all getting these jobs right out of school and making money. here we are, belonging to all the golf clubs and flying around. they get caught up in all of the greed. >> slippery slope. >> it will happen again. you have lots of different types

of companies. most brokerage firms are good. they are trying to sell stocks. they are pushing and selling, but they are selling real stocks. these were not real stocks. there was a stock called child roback's. it was supposed to be a great new company that would help obese children get fit. there was a warehouse in new jersey with an exercise bike. it did not mean anything. they pumped it up and then just let it go drop down to zero. >> did you have any interaction with jordan? >> no. his partner, we deposed him twice. then we had all the other brokers. we never saw jordan. i'm not sure where jordan was. maybe he was already in jail. >> what was danny's story? >> they were in it together.

i think jordan was more flamboyant. danny, when he walked in for the deposition, he was very tough. he would not really talk to us. we were trying to get things out of him. unfortunately for him, he was in jail and was a different guy. he went from a guy who was flying high to a guy who was as low as you can be. that has got to do a lot to you. >> when it first shattered, how did the liquidation work? what was recovered, anything? >> we first had to put the story together. >> how exciting was it listening to these tapes? >> fascinating. the customers were lying too. we would get his letters, sell the stock. not only did they say don't sell it, they said by moore.

you heard people on both sides line. we put the whole story together. it is not easy to track down the money when it is going all over the world. it was a matter of, how do we try to give these customers back something? we did the best we could, but there was not much there. >> watch online at bloomberg.com/tv. coming up, constructing the chicago skyline, one lego at a time. the senior vice president of oracle after work. he likes to blow stuff up in the desert. ♪

>> in wild card, a lot of kids found legos under their christmas tree. he has got a set of plastic bricks that would make any kid envious, including this one. he's rebuilding the chicago skyline in his apartment. >> i build large architectural buildings with legos. i love chicago architecture, and i think the skyscrapers are fantastic. lego is about building something from nothing. it is easy to build a set because the directions are

there. what is creative is to do something from your own imagination. it is an unusual hobby, and it combines not just art, but science and mathematics. when i approach work, you have to build a framework of what your strategy is and the outcomes are and the tactics you have to get done. lego is all about planning. all those buildings take more than two or three months just to figure out what the structural integrity will look like. building lego buildings takes me away from the frenzy of the corporate world, relaxes me, where i can just use my hands and the creative process, take my time and build things. people look at this and it immediately comes to, i want to show my kids this. they almost get giddy. my dream is to build trains and train stations where they can

move. i think i'm going to get there. >> kind of cool. if he plans on building a complete lego city, and wants to keep it one piece, he had better stay away from this guy. >> i am the senior vice president of hardware software at oracle corporation. when i'm not there, i can be found in the desert making fireworks, blowing things up. i started making fireworks when i was just a kid. when you are 12, you cannot be serious about making fireworks because no one will let you. when i got older, i could afford better equipment and chemicals, the raw ingredients to make fireworks. >> fire in the hole. >> there are a lot of parallels between developing product. people like different textures and colors.

they like a lot of things going on at one time. when i explained to people that i make fireworks, they assume that i'm nuts. it is partly true. it takes a lot of courage to make fireworks. they are dangerous. one of the things that is fascinating about fireworks to me is that it is a blend of art, chemistry, engineering, physics it is that energy you' able to control long enough for a short period of time. i think most people like watching fireworks, and it's kind of universal. some people actually get emotional. i get very emotional. if you take really good music and a very artfuy, tla timing aolors, it does sothg ll rfects me. i like to see what i build and do in the sky.

>> from the desert to the ice, today's mystery meat, and what could be one of the craziest goals in the history of hockey. the buffalo sabres scoring against the phoenix coyotes in overtime. look at this. there is the puck. oh my god, he backs into the goal. it's a goal. it's unbelievable. it bends the rules. >> the whistle doesn't go, this will be a good goal for the buffalo sabres. it's in the back of his pants. he brings ait right into his own net. >> there you go. ♪

>> is 56 past the hour. bloomberg television is on the markets. i am olivia sterns. we have another record high close for the s&p and the dow. the s&p closing at 1842, up nearly 30%. ,480dow jones closing at 16

and the nasdaq closing at a high of 4167. we did get better than expected data on unemployment showing that weekly jobless claims fell more than forecast. that is helping sentiment a little bit. we are keeping our eyes on the vix. it hit a low today. i am joined by advisers. the vix is trading at pretty low levels right now. do you think this is just like trading during the holiday week or is it other things pushing it down? >> i think it is a combination. airing the holidays, that vix will typically trade lower. plus, it is a slow period of time. additionally, take a look at have a 10 year has moved. a lot of people were really fearful about the 10 year hitting three percent. they thought touching three percent of the 23 point -- to 3 .5%.

a calm bond market is going to lead to a calm equity market. it) 1230. that is a relatively inexpensive insurance level. the vix is the overall level of options on the s&p 500. it measures the cost of insurance. it is at a one-month low. >> do you think now that markets have appeared to absorb the fed we are at new and record highs, have we entered a new era where we are going to see lower level volatility for the near future? >> i think this year could look a lot like 1999 or 2007 where we see the market rally and implied volatility in options go up. these things are all cyclical. the equity market will continue to perform well between probably three percent and four percent in the 10 year. once that starts to pick up some speed and or we get some inflation, the equity markets

could be in for some problems. v-vix, theat vix or vix of vix options. is that a one-year low. they are both great ways to ensure one's portfolio. swan ensures our portfolio. ish these levels, it relatively inexpensive to ensure. i think looking at some sort of s&p 500 push or some long-term vix call option makes a lot of sense. i suppose the key question is, do you want to buy the vix at these levels? >> buying the actual cash vix is difficult. do it again makes sense to buy options? yes. especially with implied volatility so inexpensive. call options are relatively cheap. one trait i like is a longer- term hedge, the june 1728 call

spread. if we get any type of real left in the vix between now and the may may time period, that could return a decent amount relatively quickly and act as a different -- excellent portfolio edge. >> mark, thank you so much. that is it for on the markets. i am olivia sterns. ♪

>> here goes nothing. >> we are finding it, we are testing it, we are there as they build it. we are on a quest to show you the most cutting-edge companies on the brink of the future. >> tonight i will go to a fish farm called an aqua pod. the will check into hospital of the future. >> and we will take a road trip to the super green car factory in america's heartland. next to a car manufacturer. >> that is right. >> bloomberg brink.