>> welcome to "lunch money." we tie together the best stories in business news. take a look at the menu. from worst to first. 2013 was a huge year for netflix. 2014 might not be as big of a hit. competition expanding beyond the yellow cap. -- cab. ote real economics behind p in colorado. baywatch.king about time to shed those pounds. a workout that is fit for a

supermodel and the british prime minister. kicking it off with 2014. what better way to do that than with a massive snowstorm? check this out. you wonder how bad could this thing really be? >> the blowing and drifting snow is what will make it so dangerous. orare forecasting 8 inches more in new york. over a foot in areas of massachusetts. >> shouldn't we be a little comforted by the superlatives? what comes after very serious? >> zero visibility is not good. do not travel tonight. that is what we are looking at with air travel. we have seen numerous airport cancellations. looking at some of the airports in chicago -- 198 flights canceled. rk, 136. >> is this going to be a multi- day event?

>> it is going to be a two-day event. most of the weather at pfizer is continue until friday. advisories continue until friday. combined with the fact that it is a busy travel they. we are estimated between 70 million impacted. >> it takes a lot of snow to paralyze new york city or boston. washington runs for cover when there was two inches. no offense. not like they will get anything done anyway. that sounds a bit harsh. but is there any thawing in washington? signaling that he may back a series of changes to immigration law this year. that his aides are talking about support. in a step-by-step fashion. those who want to see a bill passed -- the kind of thing that

the senate has already passed -- not going to happen. >> no big bill on immigration. what about minimum wage action? >> house republicans not really into it right now. democrats have latched onto this issue. they think it is something that needs to move. very unclear on the process though. >> even the president is on board. >> there are airport workers and fast food workers and nurse assistants and retail salespeople who work their tails living at ortill barely above poverty. [applause] that is why it is well past the time to raise a minimum wage that is below where it was when harry truman was in office. [applause] >> nothing is ever as it seems in washington politics. just because one party fights for an issue, does not necessarily mean they are really fighting for it. >> i would expect that a vote will be held.

i don't think democrats expected to move or are interested in a moving. i think they want to use it as a wedge issue during beloved oral system and try to change the conversation from what republicans want to talk about. >> raising the minimum wage is a popular issue. when yoully oppose it, think about it. the states have led the way. the minimumised wage yesterday. washington was the highest. second in the nation, oregon. total, only one states will have a higher minimum wage than the federal law -- which is $7.95. 20 of them are equal to that figure. some are below or have no minimum wage. that is a sad state of affairs. there going to add up all money behind colorado posts smoking new law -- no pun intended.

we will talk about netflix big year and the big challenge that is coming up in media. this got a lot of viewers on new year's day. ice hockey game. the way it should be played. bitter cold, freezing water bottles. the winter classic yesterday in ann arbor, michigan. 100,000 fans watching the toronto maple leafs eight the detroit red wings. 3-2 was the final. they had to stop twice so that snow could be cleared from the ice. check this out. >> he is trying to stop. >> it's in! from the corner! >> quite an event here this afternoon. ♪

this is "lunch money." we are streaming on bloomberg.com, your tablet, and your smart phone. it is a new year in media. new content, new cable fee disputes, new viewing sessions. the resort thing that millions of americans care about. abbey season for kicks off. >> is sybil coming back? that's all i want to know. >> lady sybil is gone.

>> are you kidding me? >> no, tom, we are not kidding you. your long nightmare is over, fans. successful too early in 2014 -- losing the exclusive streaming rights to downton abbey. the season will still air on pbs. amazon is now showing that it could be some serious competition for netflix. does netflix even care about the loss? they have had success with their own house of cards and their original series. netflix went from second-worst performer back and when the 11 to the top performer -- 2011 to the top performer last year in the s&p 500. and the the revenue

content, can you call netflix a fourth network? >> i think so. they have mashed themselves into the living room in a way that other people have not. it is a very interesting model. i think people are talking about netflix. people are getting rid of apple tv just so they can upgrade to apple tv so that they can get apple tv, netflix. , netflixll the success is starting to do something. remember when it spun off its dvd business and changed its pricing model? netflix is testing a new subscription model based on the number of people who can use the account. customers will pay more for additional family members. >> they have got a find a way to make sure they generate enough revenue from each of their users. there was a difference between the number of subscribers and the number of people who are actually using the service.

they have been pretty flexible so far with that ability of people to share different accounts. >> cost an other issue. $3 billion going for the content they make available. another $1.5 billion about the marketing campaign. a lot of that introducing the brand overseas. so then fees of use is important. technology is where they spend a lot of money. >> don't forget about the competition. >> traditional cable still has sports. hbo is doing similar things. similare been doing things with original series and exclusive film deals. amazon and hulu. the international players. europe, latin america. there are local services we don't talk as much about, but were netflix is going to be

head-to-head the same way it is going head-to-head with hbo here in the united states. >> what is the bottom line for netflix? competition? content? there was a lot of risk to the portfolio. i still think that people are excited about the fact that netflix is a viable place to stick your product. to create great shows. you can see kevin spacey in house of cards. people are taking it seriously. >> tv is the new frontier for netflix. it is also doing a lot of damage when it comes to movies. movies will go off-line on netflix. watch new year, you can blue jasmine on january 20 and captain phillips on january 20. these are oscar contending movies. the changes everything. >> it is a mess. it is a mess. i don't want to be a theater

owner. it is a mess. >> you are at the nexus of inspiration with all of this content. with the success of house of cards or downton abbey or game of thrones, are the guys that make this crowd -- are they enthused going into next year? >> i think so. i think there is a multitude of options out there. there was a cast member on saturday night live -- they have a whole body of work on youtube already. you are not coming out of it starting from ground zero. you have this body of work. there are places you can now put creative content. >> attention all binge fewer's -- it is the new year. you have to watch the same workout that the prime minister

gets. there is the trainer. we will show you how he does it. the new business of taking you from a to b. the car showdown. getting around during two by's record-breaking fireworks. that trenched out -- turned out to be a challenge. hundreds going to the atlantis hotel were left stuck for hours because police had restricted access. blame the massive fireworks display. there it is. the cheapest advance tickets cost $123. organizers said they are extremely sorry and they will try to find some sort of resolution. but at the fireworks. unreal. ♪

>> the car sharing business taking off. it is not just about uber anymore. sidecar want in on the action too. eve, the ceoear's

explain theded to surge in prices. >> if you are a party at 1:00 a.m. and you would like to get home economically, like with a relatively inexpensive ride, wait until 3:00 a.m. it will go well if you can wait until 3:00 a.m. if you need a ride between 1:00 and 3:00 a.m., huber will be reliable, but it will be a pricey ride and you have to expect that. >> people were still pretty upset. understandably so. over $300rides costed just to go a few miles. >their response, hey, we warned you. yes, i know. explained why his company is different. >> we create an experience for drivers that anybody can become a driver.

it has made it very easy. the same reason why we provide the cost up front is because we require a destination. that makes for a better driver experience. we introduced commute mode. the driver can go to a location -- from here to the east bay -- and only get rights that are going their way. -- youind of features can get out and give rights that are convenient to you. >> huber takes a 20% cut. what do you do? >> we do the same thing. >> i talk to a lot of my uber and sidecar drivers. a lot of them drive for different services. a lot of them prefer driving for uber. how do you respond? >> we found the drivers love the sidecar experience because it is super convenient, they do not have to have any shifts.

they know what writers are going ahead of time. that when you are charging seven times the normal rate, drivers will end up making more during those period's of time. our belief is that writers deserve transparency. they should know ahead of time how much the price will be. drivers deserve that same kind of transparency. and sidecar not your thing. there was another thing called lyft. each car has a pink mustache. giant pinkee a mustache shoving toward you on the streets of san francisco, don't be alarmed. car that will give you a lift and maybe even a laugh. >> the passenger is smiling. the driver and said smiling. it helps break the ice. oflyft is among the new crop

car sharing. is theng a vehicle second-highest expense in the united states. there has to be a better way. >> here is how it works. open the app, enter your location, and minutes later a car shows up. the average cost is around $10. that is certainly cheaper than a black sedan or a taxi. it helps put cash in the pockets of regular people. liftsarted offering after being laid off from his finance job. he can bring in up to $200 per day. >> i like about the community. ing able to help out. -- i liked being able to help out. says it's drivers give more than 30,000 rides a week.

it now operates in 16 cities across the country. >> this is the future of transportation. it is more affordable, more efficient, and more community powered. lyft ceo got out there to help pick people up on new year's eve and he has a plan. >> we want to be very transparent and open about what we're doing. we have capped the amount at 200% for this night. typically, we don't go anywhere near that. of the extra prime time tips go to the drivers. incentive to want to add an additional amount for prime time. it perfectly aligns us with the rest of the community because we are not benefiting at all. >> do you think the consumer thinks a lot about that? if the money is going to the driver or the company or they just saying, look at my bill? >> i think it is a combination.

you don't want the cost to go higher. by not having an incentive to make the cost tire, we will always have the lowest cost. if the primetime incentive is to get more drivers on the road and we are not taking any from it, then the amount going to the drivers will always be more. more drivers on the road for less money. i also think it is important that they know. i think it does matter to the consumer that we are not trying to benefit from this. we are trying to make the marketplace work. >> a personal story i want to share. sawbody recently used uber the pink mustache in the trunk. driverse a lot of uber moonlighting for lyft? >> we are seeing several drive on the left platform -- lyft platform. a lot of the time the passengers jump up front entry -- treat the

drivers as equals. it is a competitive environment. people are choosing to drive on all different platforms. >> how about an automated lift? drones underwater. we have drones everywhere. colorado has a weed everywhere. as of- it is legal yesterday. ♪ it is 26 minutes after the hour. bloombergtv is on the markets. let's get you caught up on the major indexes. we are down across the board to kick off 2014. the s&p 500 down almost 1%. was named theres best pick for 2014.

it shares have soared. it will benefit over the next 4- 5 years. we are also watching shares of apple. starting the new year with a downgrade. wells fargo cut it to underperform. ♪

>> this is "lunch money." we are streaming on bloomberg.com, your tablet, and your smart phone. video pictures, were the is the story. after spending the holidays stuck on the antarctic ice, 52 fromngers are finally free a russian research ship. they were carried to an icebreaker earlier this morning. now they have to make the journey to the island of tasmania. will have toembers stay with the ship until it is finally free. making aor of japan rare appearance in tokyo. he delivered his new year's

address today. he wished to japan well and expressed concern for those killed in the earthquakes, the synonymy -- tsumani. in ase blasio was sworn the 109th mayor of new york city. former president bill clinton conducted the oath. weed. need i say more? recreational marijuana began sale in colorado yesterday. >> previously, marijuana was only available as a medical -- if you had problems with posttraumatic stress or lower back pain for example. >> there was a street off the hill in boulder -- it was also available there. [laughter] >> how hard is it to get a license? >> it didn't seem like it was

terribly difficult. there are about 300 and 50 licenses issued. hadtores in the denver area completed that process by january 1. the others were a little bit stoned. >> how exactly do you buy the stuff? >> you can only spend cash. forcannot pay for your weed medical uses with a credit card or debit card. >> why not? >> the banks or the banks around the country are unwilling to get into that business quite yet. it will not be long, obviously. this is the dawn of pick marijuana. -- big marijuana. >> you make a joke about it, but what are the legs? >> 20 states allow you to smoke marijuana for medical purposes. let's be honest, they are fairly lax about what constitutes medical purposes. >i don't know if you should say bs.

some people of cancer or late stage aids. some people may need to smoke marijuana. i'm not a doctor, i don't know. >> you have funny things in your head all the time. >> that is steve miller. >> yes it is. >> he was a toker. >> and a smoker. >> stoner jokes aside. legal pot will be a boon for cash-strapped states. what are the other states going to do? >> when they see the windfall that comes to the state in the form of tax revenues, what that can do -- colorado was helping to revitalize the school system, dealing with infrastructure issues -- have you driven around new york city lately? the worst streets of any city. isn't such aprings desperate fiscal state that it had to turn off the street lamps last year. this is what colorado was confronting.

i am not saying that it is not about tax revenue. it is about the adoption. which states go first has something to do? >> washington state is next. >> of course it is. >> what are the legs of this controversy all? >> >> california. >>exactly. >> which are the most progressive states? probably california. >> the federal government does not want to see this happen. >> why? >> that is not the case. president obama and the justice department have given the nod. it is an experiment. >> if you have the munchies and colorado, the next-door he is not going to happy. little winetime for and cheese with a touch of your smart phone in san francisco. they watch. this drone is giving david hasselhoff a run for his money. yesterday.the hoff in coney island.

the icy plunge. the polar bear plunge. winter swims since 1903. ♪

money."is "lunch i am adam johnson. no ipo for chrysler. fiat is going to buy it

instead. why the ceo wanted total control. >> it is what he have been working toward for almost five years since he took chrysler off the hands of the u.s. government as part of the bailout and the bankruptcy restructuring. it is a little more concretely integrated than it was before. to let him gets the cash that chrysler has and that chrysler was generating and do it to reinvest in fiat will the european auto market is that a bottom, try to kickstart that part. and then execute globally. car thatid electric gets charged from the sun. this thing is a ford. the ceo will unveil the new concept car next week. since 80% of the electricity in the united states -- going solar makes the car totally green.

we are back. a new year means new laws. the federal aviation administration trying to integrate drones and commercial airspace. -- in commercial airspace. why these sites are so important. >> this is technology that shows great promise, but it also brings with it significant challenges. what the test sites provide is a structured framework where we are able to conduct research, conduct test operations, and really understand how we can safely integrate these into the national airspace. >> how will these test sites work? breaking this whole thing down. the faaesponsibility of is the safety of the airspace. that thisto ensure

goes safely. the creation of these six test sites -- they will create a geographic area where these unmanned aircraft can fly and perform different tests. provide that data back to the faa, which will then help the faa work toward building more widespread integration across the united states in the coming years. >> getting chosen as a testing site -- that is a big deal, right? the platforms and the technology really had its birthday over 25 years ago. we believe it is in our birthright and is industry starts looking at these commercial and civilian applications, it is important for us to be able to leverage those assets that exist. the technology-based and subject matter experts that exist and be able to extend a continuum and then basically say, now that we

have done all this for the greatry, there are opportunities for civilian and commercial application and we wanted that industry to continue to be located here. >> if you thought the faa was the only one testing drones, think again. the real estate industry is getting on the bandwagon as well. used to take photographs of the property when regular images are not enough. don't expect to see drones on the average house. it is strictly big-time -- at least for now. guess what? we have another one for you. the sales drone. if fully autonomous drone. it recently traveled 2100 miles from san francisco to hawaii. tracking sharks on the coast of california. cool stuff. ♪

>> hungry in san francisco?

a new app to get wine and cheese in under two hours. thank goodness. explaining how. maybe why you ate too much over the holidays. the guy who keeps britain's prime minister in shape. ♪

wine and cheese to shedding the pounds. three different ways to spend the first days of your new year. a wine and cheese delivery system can get your snacks delivered to you in two hours. you have to live in san francisco. >> we try to not carry inventory and just connect makers and merchants with customers. >> you are sourcing directly from the makers? makers like point raised -- point reyes? >> people who put together the platters themselves.

in some cases, we will deliver directly from makers. this is a local cheese, ranging from cow cheese. the bread is local as well. the wine comes from a jug shop is selecting the wine. we looking in major markets. look at california alone, it is about 20% of the market. we will focus on california first. >> maybe your new year's resolution was to lose weight. nutrisystem can help. tom keene spoke with the ceo. >> nutrisystem is for the mainstream consumer. we embrace things like fitness trackers.

we seeing those things as complementary. those trackers do not offer portion control with meals. they do not offer counseling services. the combination of the two are very powerful. >> the quality of the food has been an issue for some consumers. how are you thinking about that? >> we focus a lot on food quality. we have over 150 different varieties for consumers to choose from. there is plenty for anybody to fake -- pick what they would like. what is new is that we have a new kit. programnew customized targeted to individuals -- it helps to lose five pounds in the first week. the can lose five pounds in first day i'm so fat. how will you sell it to boring, lazy people? what is a behavioral thing i will change to use your product. >> i think people go on the program. they have the early success of five pounds and it helps them

stay on the program. that motivational factor. you stay on the program and you are longer. weekends my way which up to transition back to regular food. it is all about portion control. >> how do you track long-term success? >> we have an online site. people do their weekly weigh an online. we have counselors available for julie 24/7 and ask advice. >> do you monitor how long people can keep the weight off? you have several testimonials. how long do those people actually keep the weight off? >> it varies by individual. we do see that people touch with that early success -- keep the weight off longer. it is a cultural thing as well. it is a real sensitive issue for americans. how do you go across different parts of america? the cultural sweep? >> it is different, particularly for men and women.

if you look at those two demographics. women, it is an emotional issue. men don't think about it as much -- they want to lose the weight, but they do not obsess about it. weight?er way to lose hey man, just do the work. a little work out. you will not get tips for me, but you will get tips from this guy. he gives workouts to the prime minister of the u.k. >> i have changed. i am ready for whatever it is. i will give you a ball, first of all. both hands. i want you to do a lunch rotation. step into it. this is for people getting ready for party season? >> if you will be trying to recover from post-party season or a preemptive strike during or before it, this will do a lot

muscles working very quickly. generally the best thing you can do is high intensity training. there you go. >> politicians. a list celebrities. who has asked you to do the weirdest stuff? >> they are also varied. people who have the biggest time pressures -- the celebrity side, the film stars, the pop stars. the business guys, politicians us tois not unknown for work out in a gym at 2:00 or 3:00 in the morning. >> in the mystery meat, the rubber ducky in taiwan has had a tough new year's day. ♪

it is 56 minutes past the hour. a bloomberg television is on the markets. let's get you caught up on the indexes. markets are down across the board. the s&p 500 is down almost 1%. the dow jones down 130 points.

by the president and ceo of the philadelphia trust company. what do you think about the direction of the market? 129% gain in 2013. will we see anything like that 29% gain in 2013. will we see anything like that again? >> no. we will come back in the fourth quarter. i'm expecting 10 to 12% this year. most of it will come in the first quarter. pick the have to sectors right. i like industrials, energy, financials. >> today is a good day then. industrials, energy, technology. >> bank of america. >> go ahead and grab them. what do you like bank of america? >> they have been a great job to clean up their balance sheet and refocus their business. with the increased interest great networkve a

of lending offices throughout the country, throughout the world. they will be able to leverage that. their spread is increasing. >> any legal worries? >> i think every bank in the country has legal worries. the department of justice seems to be out to get banks. i don't think there is anything specific to any one individual bank. >> i notice you like ford. >> love ford. >> do you like them over gm? >> yes. i am still managing. >> you should let that influence. >> i am sort of a victim of my own social network. i like ford a lot because i think europe has bought in. europe will come back strong. at 350d f1 50, after 50, is going to knock the cover off this country. sold,ery 100 new houses

one ford truck is sold. housing is alive and well. that is going to keep the ford trucks at the forefront. >> we will see a new one next week. two weeks from now. at the detroit auto show. we are expecting to see a new f5 in 150 -- f-150. >> it is the most popular truck in the world. >> what else do you like? re: ts going to remain as important? -- are etfs going to remain as important? >> the longer this market goes without a correction, the worse the correction will be. if you could get 10% now, that would be great. if the market goes up another 10%, we are looking at a potential correction of 20%. in acould have the etfs little bit of trouble. they have not been tested significantly on the downside. seem also a huge negative effect for markets and

the economy. that is a blow when you have a 20% drop. >> it will be a huge blow. it will be a question of how quickly we recover. i think you could have a crash type scenario. crashes -- you never see when they are coming. you cannot analyze them without the benefit of hindsight. everybody says they knew what was going to happen. nobody is talking about it yet. >> you are the only one. congratulations if you are right. and a bummer for all of us. thank you so much for joining us. we are back in 30 minutes. "bloomberg west" is up next. ♪

>> live from pier three in san francisco, welcome to the the early edition of "bloomberg west ." i'm emily chang. is on innovation, technology, and the future of business. snap chat users exposed. hackers say they posted user names and phone numbers for millions of users. it was a security flaw that they have been warned about. 2013 was a huge year for netflix with soren shares and hit