>> happy new year, jakarta and indonesia. welcome to a special edition of "lunch money." i am matt miller in for adam johnson. congress in action. what you should not look or were 2013.ward to in the best of aykroyd, buffett, and why you should not take on the selfie. in switzerland, the kind of security you get with a swiss bank account, not just tax-free money. black monday. five nfl coaches joined the nation's unemployed.

another new year in new york. reg out your champagne and cool, goofy hat. the ball will drop in times square. people always say go out with a bang, but i do not think this is what they meant. two trains collided in eastern north dakota yesterday. no one was injured but the massive fireball was the result. first, a grain train he railed, derailed, hitting another train carrying crude oil going the opposite way on an adjacent track. police have advised residents to evacuate their homes because of fumes. there are a lot of trains carrying crude oil in north dakota these days. it is one of the nation's new and plentiful sources of oil. the train that caused the explosion was carrying it from there to minnesota.

the fourth major drailment in six months and likely to recharge the debate over the safety of the north american energy boom. the number of crude oil hauled surged from just under 11,000 in 2000 nine to a projected 400,000 this year. the company that runs the train is burlington northern santa fe. that is owned by warren buffett's berkshire hathaway. he is leading the world know he is betting on crude oil ports. they are swapping shares of phillips 66 for full stock. this helps the product flow through pipelines more quickly. this only the latest of buffett's investments. it accumulated more than $4 billion stake in exxon mobil and berkshire hathaway added holdings and the national oil

embargo and suncor energy. if warren buffett is right, one of north america's a gift and most controversial could play right into his hand. the keystone pipeline might as well be a line in the sand. environmentalists and lawmakers. >> teh keystone xl pipline is a 2000 mile funnel. if the $5.3 billion pipeline is approved, what does that mean for jobs? it will create 42,000 jobs during the two-year building phase. almost 4000 are pipeline construction jobs. the pipeline only expected to create 35 permanent jobs. a recent report forecasts a thin profit for oil companies. the recent shale boom created a glut of oil in the united states, dragging down prices. if oil can make it to the gulf coast through the pipeline, it

competes against the mexican crude benchmark projected at $89 per barrel. if it stays in canada, it is $69, $20 difference. not so fast. the $20 premium does not necessarily mean big profits. canada's heavy crude is some of the most expensive to produce. it needs to fetch at least $65 per barrel to break even. add in transport costs. the profit margin drops to just $5.50 per barrel in the mexican market in 2015. if the pipeline does not get approved, who are the winners and losers? transcanada stands to lose a lot. the company has pumped $2.3 billion into the project. companies like suncor energy and conoco phillips could face hurdles getting their product to market. the next best option is railroad.

150,000 barrels of oil is moved by train to canada. rail is much pricier than the pipeline. that means investors like warren buffett could win big. the longer the pipeline gets pushed back, the higher the demand for rail. >> megan hughes. safety is still a big factor. even with yesterday accident in north dakota and the earlier derailment this year. railroads say 99.997% of hazardous material shipments reach destination safely. thank god. keystone has released one issue that will have trouble making it through washington next year. the best of 2013. why you should not hate on the

selfie. losers. before we had to break, across the atlantic some new year's parties are kicking off -- viking style. 45,000 took to the streets of scotland for a torchlight procession kicking off new year celebration. torches lit up the roofs led by vikings, and drums. a fireworks finale also. ♪ >> 2013 was a rough year for

washington, but i guess it is kind of like that every year. this year we had the the nsa spying scandal, the government shutdown. this might even be a year that both parties want to forget. even president obama is moving forward. >> 2014 could the breakthrough

year for america. outlined inut as i detail earlier this month. we all know there is a lot more we will have to do to restore opportunity and broad-based growth for every american. that will require action. >> i think we are all ready for action from congress. get companies hiring. leave money in the pockets of people who earned it. there are a bunch of tax breaks that expire tomorrow. >> you have the individual issues. $240 right now. that will drop to $130 as of tonight. charles schumer says this could affect over 700 thousand new yorkers. a huge deal from the individual side of things.

it is a massive thing for businesses as well. the research and development tax credit, something that intel on the bristol-myers squibb rely on. tax credit for hiring veterans. each efficiency tax credits. those are all gone tonight as well. back to the individual. that is the key thing that jars the public to respond. private mortgage insurance write-offs. commuter benefits will really have an impact. all of that gone tonight. when congress will come back to this issue is anyone's guess right now. >> these programs are so important, we will see action to keep them in place. >> the hard part here is you are not going to get dave camp, the house republican chair of ways and means will not give up on reform. this is his last year. he really wants an opportunity to do it. so that puts another delay on it. here is another big issue, how

do you pay for this? $54.2 billion annually. they have to be paid for. not a lot of money but congress can find for this. >> we may not be able to pay for it since we still have a big budget deficit. democrat and republican still standing on opposite sides of the room in the congressional dance. republicans still bickering among themselves. >> the civil war within the republican party is hardly over. this is a fight that will persist in 2014. >> republicans in all-out civil war should provide an opening for the president. what can he do to hit the ground running in 2014? >> he needs to knock the ball

out of the park with the state of the union. it will be a laundry list of proposals that will probably go nowhere. the key for the president is not obamacare. that was the key in the year that is about to end. the key is whether the economy really expands. the chances are growing the economy could suprise to the upside. >> what can d.c. do to move things forward? we gather in this industry and world leaders to get advice. the main theme is can't we all just get along? >> i am not an expert on relationships but i know if you spend all your time in relationships talking about the status of the relationship, it is doomed. you would be better off having a cream soda, if they could just

ramp down the warfare. i think that will help a lot. when i think about washington what i think about is leadership or a lack thereof. what the leaders do is bring people together. when i look at washington, that is what appears to be missing. leadership that says it is not my way or the highway but a is you. >> people want to actually accomplish something and work with the president in order to solve the budget crisis. our deficit so the own people have confidence in the way the government works and so internationally our respect is returned. >> what is most important is to have a stable and predictable budget outlook.

every two months crisis approach causes an enormous amount of uncertainty. that has a very negative impact on the economy. thatnd the common areas you can all agree on and agree on them. >> coming up, we will show you how warren buffett's berkshire hathaway rules everything from your car to medicine cabinet. plus, pop the bubbly. ringing in the new year with the ultimate party drink, champagne. >> happy new year australia. one of the first cities to ring in the new year. more than one million people crammed around the harbor. unlike here, the city rang in the new year and balmy 70 degrees. ♪

>> as 2013 draws to a close we are taking a look back at the favorite highlights of the year. first up, bloomberg businessweek cornered dan aykroyd to find out why "trading places" is the greatest business movie of all time. >> everybody knows that "trading places," which turned 30 this year, is a classic american comedy.

i would say it is one of the best movies american made about american business. >> i cannot think of comedies about american business that have been successful. >> when you first got the script, did you know what was happening at a financial level? >> i lived downtown and near the world trade center. i understood enough about it. >> by low, the sell high. fear? that is the other guy's problem. >> what i did not understand was that in the pits mechanism of trading. i did not understand the response system. when i got in there with the guys taking the orders and learned about it, we became infected with the enthusiasm and adrenaline and believed we were there. you can see us in the movie shouting it out. we were trying to replicate the fury and frenzy that happens and that setting. >> that is entirely replaced by terminals.

>> exactly. >> it is very complex at the end. can you describe to me in plain english why your character and eddie murphy's character tour dukesracter win and the lose? >> there was a short taking place in orange juice futures. we were able to get information about what they were doing. we were able to work the other side of the trade. >> they were trying to corner the market because they were operating under false information. >> yes. you have to know what you are doing to operate and that game. >> warren buffett's berkshire hathaway looking good. in your life in ways you may not even realize.

from the heinz ketchup to the geico insurance protecting your motorcycle. ♪ ♪

♪ ♪

>> i deeply regret totaling that bike in 2013 but do not worry, i got a new one. love them or hate them, there is no escaping the selfie. not even for warned buffett -- warren buffett they are everywhere. who can we blame for the rise of it? >> i do not have a problem with the selfie. it is a natural human instinct to capture yourself. this is how artists use to survive. the walls of the met our coated with selfies. it is possible. but if we're going to indict ourselves for that, we have to remember the role of the selfie industry. twitter makes to post a selfie when you sign up. if you do not have one on facebook, it will remind you until you post one.

instagram is the house that selfies built. these are not social clubs, they are companies and need you to post one so they can make money. this was taken at my wedding. these are just selfie ways to imply that i am too cool. nobody gets out of your alive -- here alive. you cannot be a part of twitter or facebook without making some kind of a decision about what you want the world to think you like to be seen as. is that even grammatical? silicon valley is run on self these -- selfies. these companies cannot keep me and everyone else selfiing all the time. when i am done with this video, i will definitely put it on facebook to see what my friends from high school site. our narcissism is this currency that keep sheryl sandberg happy. i do not think the rise of it

has anything to do with the decline of humility. it is a business strategy and it is working. >> here is one business strategy that has worked for decades until the irs got involved. taking you inside the swiss think fault. five nfl coaches joining america's unemployed. we will go through the cut list coming up in sports. ♪

>> welcome to "lunch money." i am matt miller in for adam johnson. today is moving pictures where the video is the story. the cleanup has begun in western australia after cyclone christine uprooted trees and caused power outages and flooding. storm battered the west coast with winds. it later weakened as it moved inland and traveled south. it is hot in argentina. buenos aires has set a record for the warmest december. people are not happy about it.

citizens are burning garbage to protest constant power outages. critics say failed energy policy has made it unprofitable to upgrade the power grid. further south it is bitterly cold. passengers onboard the stranded research ship spent the evening stamping out a landing area for helicopters after three ships failed to make it to the stranded ship. swiss banks have until today to join a u.s. disclosure program that cracks down on untapped assets abroad. at least 35 banks have signed on to avoid prosecution. the bigger banks like credit suisse are already under investigation. if you want to know what it is like to store something important or expensive at the credit suisse headquarters, you

will have to go underground. >> the vault lays in the groundwater of zurich. 18 feet below lake level. this ball has 3500 safes. we have it in 10 different sizes. the biggest looks like a closet. the smallest is 200. the largest are 1000 swiss francs. what you need is to have a bank account with us. if you have a bank account with us, you are capable to open a safe. if you want to come to your safe, either you have the key with you or deposited over here but you do not have to make an

appointment. people like to keep documents or jewelry inside. they can stay over here for several minutes. the longest was three days in a row. whatever their business is inside, they can stay however long they want. >> one thing that even a swiss bank cannot keep safe, do the job of a pro football head coach. it is more than just a title, just ask archie manning. unless you have not heard, it is new year's eve. bottoms up on the champagne. we will tell you how it is made later on on "lunch money." the champagne and sake already flowing in asia. here is a taste. ♪ >> this is "lunch money."

i am matt miller. in sports, it is black monday in pro football. not because of profits. four coaches were fired, including mike shanahan and the head coaches of the lions,

buccaneers and cleveland browns head coach was fired late sunday night. the theme? teams want more wins. past success is not a guarantee of future results. mike shanahan won two super bowl for the denver broncos in the 1990s, but after four seasons with the redskins, that was the that was the last straw. washington it with a $36 million salary cap penalty going into his third year. >> what i thought something that we had to do was get defensive players. when we got the $36 million hit, we were not able to get the players we were wanting to get. we had a lot of people targeted in the third year. to show you what our football team did, we were still able to win the nfc east. i was proud. anytime you are the 28th ranked defense and 31st in special teams, you usually do not do it.

we were able to overcome battles and find a way to win. we did not have the speed we had a year ago. >> jim schwartz of the detroit -- had a 29-51 record. >> we have fallen short of the expectations of the ownership. those expectations are simple, they very strongly want to bring a consistently winning football team to the fans of the city of detroit. we fell short of that. the decision made today was a direct decision from falling short of the goal. quite simply, we did not win enough of those games. we need to take the steps from this point forward to get over the home area i have every confidence that we will. the search has already been done for the next head coach should of the lions.

>> tampa bay cleaned house. not only firing the head coast, -- coach, greg schiano, but getting rid of the general manager as well. one coach who allegedly was on the hot seat who kept his job was rex ryan. even after a rough start, he has with the jets for five seasons and has one more year on his contract. coaches come and go every season. you don't need a legend to tell you that the head coach is the backbone of any football team. if you do, here is archie manning. >> i know sometimes we talk about coaches and we talk about the real successful guys out there in college and pro ball. i think the junior high coaches, high school coaches. i have always said i was fortunate enough to have a father who was influential on us. other than that, coaches have more influence and more impact, especially on young men than

anyone else. >> do you remember a particular coach? >> i had a lot of them. i had people -- coaches do move around a bit. we lived by the school in this rural town in mississippi. i was neighbors with these coaches. they spend time with me. my dad was nice to them and their families. they had -- so many things to learn. more than anything, coaches have to be teachers. they have to have leadership ability. i think, if i have been a good leader in different aspects of my life i think it is because i , learned it from those coaches. i think the main thing underappreciated about coaches is the hours they put in. not many successful people just work eight hours a day. we talk about it our days and 40 hour weeks. people have no idea the that

hours coaches put in. some of them 18 and 20, the point of exhaustion because preparation, preparation. every game is so important. they work extremely hard. >> one guy who does have a job today is tim tebow. not on the field, though. he is joining espn in the sec network as a football analyst. he won two national championships and the heisman trophy. he was out of the nfl after being cut by the new york jets and new england patriots. he says he has not given up on playing quarterback again in the nfl. tebow may be celebrating, and so should you. how about heading to times square where you will be surrounded by a million of your closest friends? we will tell you about the history of times square coming up next. plus, not sure what champagne to buy for tonight? we will break down the different

kinds for you coming up next. before we head to break, a new year's tribute to one of the more unique members of the bloomberg television team. >> three, two, one. for those of you on radio, i have to eat this morning. ben franklin kind of looks like bill gross after the bond market has a tough week. >> tom does not smile very much. there it is. >> spongebob could help. >> a bunch of guys from russia. a couple of 12-year-olds waited all night to buy -- >> where did you get that umbrella? that is not an official bloomberg umbrella. >> where in the world is carmen san diego? >> i know you have been threatening to grow a playoff beard. >> i would just reach in.

>> no need to be polite. >> i can't begin to know and. danny is looking at me at -- growing strong. spring became a summer. who'd believe you come along. ♪ sweet caroline ♪

>> happy new year's eve. in just a few hours about one million pounds of confetti will rain down on times square. we spoke to the president of the times square alliance. he told us how the ball dropping business got started. >> it has always been a mixture of of business and technology. the cutting edge technology was 25 watt incandescent lightbulbs. it is always a mix of old and new innovation and cutting-edge

technology. >> what happens to the ball after it is dropped? where does it go? >> it stays up on the pole. it used to hide in the basement and get taken apart. it stays up on the pole year- long. >> this is just part of the ceremony. supreme court justice sonya sotomayer is going to be there. >> yes. in her autobiography, she writes about how dreams give us the will to aspire to bigger and better things. new year's at its best is about taking a moment and thinking about where we want to go you there for ourselves or the world. having a guest like her, new yorker who has been through tough things but keeps going, that is what new year's is about. >> what about security? >> we have nypd for the event. they have been amazing. ever since the millennium they have been on top of this. we feel they are the best security force in the world.

>> you expect one million people? >> one million people in and around times square. one billion watching worldwide. >> at your feet and my feet are various amounts of colored confetti. can you give us an idea of the detail? how long does he confetti drop goal for? do you cut this all yourself? >> it is about a ton of confetti. it is quite a bit. the confetti is the symbol of what new year's is about, celebrating the people we love and the good things in life, no matter how crazy the world is. it is always a little bit crazy. it is about taking a moment to look back in terms of where we have been an looking forward to a sense of hope and starting a new. >> we have been reporting have restaurants have changed prices because there is a big a man's. -- because there is a big demand for this. do you ever get feedback? >> of course there is supply and demand. it is a great place to be for

new year's eve. people pay a premium to be able to near the energy. to be able to be inside and have drinks with friends. >> talking about expensive new year's eve parties, and ruby tuesday's selling tickets for as much as $13.95. they are a few steps away. applebee's is selling spots for four 3-iron $75 per person, or r $375 per person or $800 for a couple. these are casual dining restaurants. there is a big chance you will be drinking champagne while you celebrate tonight. pimm fox got a taste from a company making bubbly or more than 200 years. >> not only a champagne from a specific place but a number of rules govern what is in champagne. it has to have normally three specific rates.

predominantly chardonnay and pinot noir. when we talk about others and that those are completely different grapes altogether. >> how do you get it to be so bubbly? >> it is a complex chemical process. it goes -- it undergoes secondary fermentation. for champagne we actually trap , bubbles in the bottle. we trap them in the bottle in which it will be sold. that is different from other things that are made in a big tanks where they pressurize the tank until the wind starts to bubble. in champagne the only way to get the bubbles is to keep it under pressure in the bottle from anywhere from two years to 15 years. >> you brought some bottles with you and i was wondering if you could explain the differences. >> we has been around for 200 years. we have a number of different styles of champagne. there is a champagne type for

every palate. this is the non-vintage group. this is a huge variation of what can be in the bottle. when you say champagne, most people expecting exactly what this bottle has in it. predominantly chardonnay. light, elegant complete party style champagne. >> what about the rose a? this is 100% pinot noir. very high quality. coming from the very highest vineyard. specifically select it. blended and put into the bottle and aged in the bottle for about four years. during that four years, we develop that find bead prior to being sold in the market. >> it does not matter how often your new year's eve will be, it will not be as good as this guys. ♪ >> is approaching 56 past the

hour. that means that bloomberg is "on the markets." let's take a look at where stocks ended the year. .4% as ended the day up

did the dow. both of them closing at records in 2013. the dow finishing the year about 29%. the nasdaq the winner of 38% on the year. it is closing at about a 13 year high. there you have the year to date and the percentage increases i was referring to for each of the major averages. we also saw stocks beating bonds by the most since we started keeping records. definitely not a very positive year for bonds and not a good year for gold. there you see the year to date -- year to date movements with the yields. what is notable is that the 10 year yield went above three percent and stayed there. the 30 yield staying just under 4%. it is useful to take a look back at the projections that wall street strategists had at the beginning of the year. what did they predict? the one who was most right on was tobias left the bench.

he was off by more than 200 points in terms of what he predicted. a lot of very strategist for optimistic but not as optimistic that we would get the kinds of gains that we got. 1565 forn forecast was the s&p 500. as about 18%. we have rally to point about 18% above that figure. a point above 18% above that feature. that figure. we will see more gains, we will not be as large. he is looking for year-end target for the s&p of 2100. that is more than a 10 bank percent gain -- 10% gain. barry thinks it will decline about 5%.

the median gain seems to be around 6%. we will continue to see gains but they will be much smaller than we had this year. we heard from hillary cramer earlier on in "street smart." she is predicting correction in the year. she says we're overdue and she is not alone. it has been quite some time since we had a pullback of any kind of magnitude in the u.s. stock market. if you look around the globe at some of the other stock market winner and losers on the year, the best developed market was the japanese market. helped in large part by the stimulus of the tank of japan. the decline of yen versus the dollar which proved to be a boon for the japanese market. if you look at the worst market in the emerging market world, you saw a lot of rain in the inrging markets, especially

areas like brazil. we saw them drop. brazil is a very commodity- dependent economy. hope everyone has a wonderful new year and i will see you in 2014. " i amn the markets, julie hyman. ♪