were very promising. one was a microbial touchscreen. and the other is that these are large-scale installations that we see big touchscreens, etc.. >> all right. we will have to leave it there. thank you for your time. we are on the markets again in 30 minutes. "street smart" is up next. ♪

>> good afternoon live. i am cory johnson. >> we are already having fun. we were actually talking about chris christie apologizing for firing one of his aides. we were talking about, how is it possible he did not know about the traffic jam and that his aide had caused it. >> there was a revelation he made meabout it, which light up. >> it made us laugh harder. fun laughs. it was good. >> can you imagine people caught in traffic thinking that is the day.

>> ambulances could not get to people who actually needed help. are jumping in on this. >> to me, you know, this is the problem with coming out of local politics and then trying to go to national politics. depending on where you're coming from, local politics may not in fact be consistent with expectations of the country as a whole. there is a high probability the notion of punishing somebody because they did not endorse you in a campaign where you got 75% of the vote, and then punishing ofm on the first five days school, shutting off their access to the only form of transportation available to them, there are some people who might look at that and say, you know -- >> we will talk about this later in the show. us, managing director of elevation partners, from silver lake, head of the science and tech fund. question member that? >> we are excited about it.

jetlagged as can be. >> caught in traffic this morning. i blame chris christie. i am blaming him for everything. he did not put guacamole in my burrito. >> it is his fault. >> it was all because you would be on this show and he anticipated you would be uncomplimentary to him. goes out anytime in the next year. ? >> a drove all the way magical eight hours. >> new transportation. >> no hyperloop's? >> we did not get to her have to go this year. i've been there many times. you have been there. roger has been there many times. are we missing? >> so much. there were big tvs and then bigger tvs. and home.d car

and garmin. >> can i say, garman? that is a new thing. >> i am still not sure. things, i do risk not think that is quite ready for prime time. what i did see, a return to the ofe, there has been a lot focus in the last few years on mobile. maybe in part because it is just not a big mobile show anymore. they were emphasizing the connected home. you have things from sam song, trying this. >> my refrigerator cost to make, is that? yes -- >> yes. >> in the past, there have been pdf's, but this year, you have got a low-power bluetooth that allows these things to be done so cheaply. class you also have a ready-made controller. multiple things.

>> of course i do. seriously, i am actually traveling light today. i only have two phones and three ipads and a computer. i am out of the blackberry business after 15 years. >> why do you carry three ipads? i need all the storage and they have completely different things. one is just movies, and i keep that in my briefcase when i'm traveling. one is set up with my music stuff, which will come up later on. stuff.uitar think of it as, there are all these great apps for learning licks and whatever. i have a ton of that death and my current one, on which i have my reverb. other things, i use for business. >> you have two phones. >> there are two major carriers in the u.s. and they both --

both have a blind spot wherever i happen to be at the moment. >> one phone for verizon and one for at&t? >> it is worth then that. i have two for each. baseball season, depending where i am, i carry three phones. i like to watch phillies games. the walls?gainst you need to replace it? >> it is actually, because of the horrible regulation in the u.s., our service is the worst in the world. i look at it and say, you cannot realistically get through a three-hour baseball game on without major interruptions. i am constantly going back and forth. i do not pretend what i do is normal. try to figure out where the breakpoints are in new technology and which things other people can use. the profound thing, where your point is so important, is that the phase is shifting from likeg standalone systems

iphones and android, to taking that technology and applying it to everyday things. there is a startup making the thermostat. the smoke alarm, maybe not. they for sure got the thermostat thing. you see there are people -- loctite has a version of -- there and go, that stuff will be important. what is weird is there are so many of them. >> why do i need it? >> if you think about the way this can be applied, your home can wake itself up as you awake. it can lock itself down when you leave. stuffme, it is the ad hoc that matters. the cable person is coming and they're coming between noon today and 4:00 p.m.. right now, you have got to be home between then. you can be a way, you can look at them through your webcam and see it as the cable guy and let him and and locked the door

behind him. >> a drop cam, they built in a hub, into theh le devices. they think they might be a more central part of that. >> suburbia? >> not necessarily. we're talking about systems that are very low cost. one of them starts with a hub that cost $99. think back to home automation. we heard about it going back to lifestyles of the rich and famous, and there was a system in his house that cost $750,000. it is now coming down to $99 and it is not just for single-family leveraging existing gadgets and tech. you have a fit bit on your wrist, which can detect when you're up. when you wake up, -- tellsit a button and it me i'm awake. >> yes. i can send a signal, which can then direct other things in your house to turn on.

>> basically everything in our world will be an apt. >> everything will be connected to an apt. -- app. >> the thing you want to be connected, it will be possible at a low cost. >> a big difference. question number the roomba vacuum cleaner? to me, a great example of the kind of platform you are talking about. there are videos where people put their cap on there with the laser pointer and drive them around. people have made these mob -- modifications to put toddlers on them and keep toddlers entertained. i called up a board member and said, this is a great roddick idea. actually,o make -- the roomba, if you sit there, it is inherently a safe device. go overdy knows not to edges. in a sense, it is 100 times better an idea than handing a tricycle. >> a fair point. he will by his roomba.

we will say goodbye to you now. roger, you are staying with us. we are psyched to have you here. >> more in two minutes. stay with us. ♪

♪ >> excellent. so cold and he has very warm hands. joined by our guest host. also joining us, bloomberg political analyst matt. we were talking about how chris christie, it is unbelievable he did not know about the land to cause a traffic jam. what do you think e >> it is very believable he did not know. i have worked for a number of politicians on both sides of the aisle. you have offices where they have to do a lot, especially governors offices. there is a lot to do and there are many times staff members that do things on their own. when it comes time to fess up, the governor is saying he tried to ask a month ago to go around

the table, it is not surprising somebody who had a secret knows they enunciated at that meeting and know what is about to happen so they hope it goes away on their own -- on its own. the question is, was there an environment created in his office were seeking retribution became commonplace? not knowing about this specific incident is unbelief -- is totally believable. >> i get your point about the number of things going on. that last observation, to me, is the core one, which is that all chief executives are responsible for the culture they create. who, atly, he had aids a minimum, thought if they went and did this, it would need with his approval. and that that was consistent with what they were doing. they clearly thought that. in retrospect, maybe not. he allowed that culture to happen. having worked in politics for many years, it is hard for me to imagine in the environment he will be dealing with in the republican party, that he had enough issues as it was, this

will make it hard. of that.e with part i think if he gets through this, and i think as of today, he has got the advantage. that could obviously change as more information comes out, whether or not he gets to this is contingent upon what we learn over the next coming weeks. if he gets through this, i think it will give him a step higher because it isfore demonstrating an ability. most politicians successful had to overcome serious adversity or a major hit cup and they overcame it and were able to get to the next level. a lot of information may still come out that shows what he told us today was it not totally accurate. >> if this were the only kind that's time this had come up in his career, that would be one thing. even the incredibly long trail that pursuedories him even before he was governor, i think -- i am sure you are right that american politics,

people do not hold politicians accountable anymore, so he may well get away with this. >> i want to change the topic a little bit. focus on politics in washington. relating to mark zuckerberg. such an interesting guy on so many levels. his interest in getting involved in washington, not by trying to be the next governor, but by being involved in the u.s. curious how he .ees that >> he is still figuring that out. ist i find so remarkable that he is america's largest tax payer and has almost single- handedly restored the state of california to fiscal solvency. when the company went public, he paid with aliens of atari -- dollars.

the notion he is getting lyrically involved, i find it incredibly exciting. if he applies the same process to this, we will all be way better off for it. -- is there a precedents? >> there our many for wealthy people. bill gates, not directly involved, he is very involved with his foundation. here is a worry. are successful in one business, they make a lot of and they automatically think, i was smart in that and i can be smart in politics. >>is that not what happened? he made missteps. i think he has got a lot of money and a huge resource to

use. he has a way to speed because he represents the technology company. he cannot make the assumption he is smart just because he created a successful business. it is a huge jump. >> you are so right. i think he already stubbed his toe in a way that causes brain to go, wait a minute, this does not compute. your point about silicon valley people having a harder transition to politics than most business executives is right on. the valley is, it is not about negotiation. not about give-and-take. it is about changing the world in a focused and uncompromising way. it is not exactly the mindset that lends itself to policy, at least not at the national level. >> in silicon valley, being detriment modest is a in silicon valley. in politics, it is an advantage. zuckerberg would be

smart to watch this. if he could have a very big effect in politics, he cannot think just because he was smart at facebook, he will be smart in politics. >> we are talking spying and tech. nsa. we will be back in two minutes. ♪

qwest today's global outlook, president obama called for limits on u.s. spying. wonder, broadly speaking, an essay, this controversy, what you think echoplex it has been horrible for the u.s. interest, broadly

defined. it is making it much harder for american companies to sell technology to many of our corporate training -- trading partners because many of them are mad at us. we have seen reports the selling climate in china has become much more difficult. it manifestly has created unnecessary internal conflict in our country. , i am hopefuln that -- >> you mean politically? >> yes. the sad part of this is, for at least a time, they lost the cooperation of silicon valley. was a time 15 years ago the central intelligence agency created a venture fund in the valley.

successful effort to get silicon valley to help on national security. it is something people are excited about helping. when all the sudden, you're discovering blatant illegal grabbing of everything was going on everywhere, i think it has really bothered everyone in the valley. >> companies knew this was happening. >> verizon is not a valley company. the backlash that put them under the microscope. >> the extent of the problem is so much. are amind, verizon, they carrier. they just care about the money that comes in. another customer, they are paying off the pipe, what are they carry e if you are google or apple or amazon, and your

entire value is in customer database and these guys are poking through it all the time, they were not going through records at verizon that way. just calling data. they were for sure going through google and apple e-mail stuff that way. i look at that and go, for what? the problem is simple. you gather all of the data and it is mathematically impossible to process it in a timely basis. malcolm gladwell wrote a great book. an ok book with one great insight. there is such a thing as too much information. when you are trying to make a hard decision, you want to get the right information. when you get too much noise, it tends to reduce your decision- making quality. these organizations effectively missed the internet and missed , and youmissed iraq

are sitting there going, hang on, what you need to learn to do is take the information you have now and make sense of it in a useful way. this will not only make us safer, but i am certain it will make us less safe because it means the haystack from which they are pulling the needle is that much bigger. do chrisation to christie like things with that data is overpowered. when you have that much data, the only way to make sense of it is to look at bill gates's tax return. they say, they have disciplined people who had done that. that means people in the government have done things like that. qwest look at what the fbi did with martin luther king and all the civil rights movement yakking --? . these people were protecting us

from what? >> we have got to leave it there. we will talk about a lot more, the sharing economy. we use uber and we will talk about it. >> coming up. street smart -- street smart continues. ♪

let's welcome back. capitalist tweeted the funniest quote anyone has heard. anyone else reading rumors? willful wall street? done. nothing to say. >> i am overwhelmed. thing, if it ceo were not sad, it would be incredibly funny. if ever there was -- >> it is that? >> it is. microsoft is a great american company. cultural has a

lot of good in it. the company is capable of a lot it has been stuck in an old way of looking at the world. ballmer's with steve departure said, go for it. up, focus all of your energy on skype and xbox as new platforms. there are all other new things you can add. you have to recognize windows has its best days behind them. it should be here for another couple of generations.

>> in most categories, nobody has an analyst covering sedans you call an 800 number to get. this is one of the great secret. because technology is so integrated into our world, broadband internet not around 10 years ago is so ubiquitous now. we get to talk about so many other different kinds of businesses. like a hotel and media businesses. although fundamentally transforming videos now. it is not to hire a car company executive from the old world. you have got to find something. a 20-year-old kid from harvard. >> you need an adult who is a technology person who spent their career at microsoft. microsoft is very strong and powerful and a very positive culture. it has not had the right focus

point. they need somebody who can sit for five years and say, this is where we are going. give them a focus. that person will not run the company according to spreadsheets. almost everyone there are looking at is a spreadsheet guy. gates. go bill i think there is only one choice. i thought that was so obvious. in my mind, he must come back for at least a year or two. only his approval of the new person is going to let that person be successful. microsoft is a great company and deserves better. let's do you think he would do it? >> i have no idea where it >> do you know john thompson? whether cheney -- dick cheney becomes vice president, john thompson -- >> i would be shocked if he wanted it.

but he is one of the few people from the outside i could imagine being successful there. able to geter be mike to come back. another person who could have done this. the question is whether any of the folks who retired could do it. i do not know. to your point, it is fun that we are not just stuck worrying about the end of microsoft. there is a new wave coming. >> we will talk about it. right now, we will head to capitol hill for a quick update on the unemployment fight. peter cook. what is the latest? >> movement in the u.s. senate in the fight over extending emergency unemployment benefits. there has been a big battle since they expired at the end of the year. we just learned from the senate democratic leader harry reid that democrats are making an inoffer to republicans i plan to

extend benefits through mid mid- november, 11 months. for --an be fully played paid for. anywhere from $20 billion roughly. that is the price tag. extend sequester cuts, the mandatory side of the snowquester cuts, or another year. also tighten up eligibility requirements for people receiving emergency unemployment benefits. you could not double-dip if you are also getting social security disability benefits and trade adjustment assistance. this is the offer they are putting on the table for republicans. we have not heard yet back from republicans. structural changes are included to the program going forward. that is the latest movement here and it raises the possibility again of those benefits that one point two americans could be restored. the senate also has to clear the

house. >> probably good news for the economy. thank you very much. we will have an interview with the ceo of guitar. let's take it out with a little music from one of our favorite bands. there is roger. look at him go. we are back in two doves minutes. ♪

qwest look him back. we have got a special guest and the ceo of gibson guitars. henry, you guys were there with technology announcements and not just plain old great guitars. >> yes. our theme at the show is back to the future. this is our 120th year of making

guitars in the united states. that is the back. we have a bunch of new stuff and innovation of the future. >> one of the things that has always excited me about what you did at gibson. the u.s. did tar industry, no one was making great guitars. they shipped mostly manufacturing out of the u.s.. you were the first person i saw as an investor who decided to do a made in usa strategy at the core of what they were doing. it has worked hugely. many guitars iow bought from you in the last 20 years. i have got at least 10 gibson's. i have acoustics as well as electrics, bases, at least 10 in maybe 12. a huge fan of gibson guitars. at the same time, part of what i love is that the best ones you have ever made are in recent years. the notion that we can make the best of something that is a work

of art, it makes me proud. i am curious if that is still working for you as a strategy echo do you have to now go to low-price? >> we have brands made overseas. apple phone and maestro. the whole world expects the craftsman we have. i have seen these people every day and the dedication and skill and passion they put into the instruments. since i have been there, we have actually built three factories in the u.s.. we increased employment every are extremely competitive in manufacturing. >> the thing i love about that is it suggests we are in a time where people genuinely want to buy american. everybody wants to learn how to play an instrument or what you're doing dovetails so well with what apple has done with ipads.

of these great instruction programs when i want to learn a new lick. they are all on their. i travel with my guitar and bring my ipad. >> he has a guitar in the green room. >> i always travel with guitar. but you do not have the travel guitar in my life. one of your competitors does. we can talk about that. i have thoughts. >> we have steinberger. know. i only travel with small acoustic. >> how many dealers do you have today compared to 10 years ago? lot fewer. our industry, like many, is going through a consolidation phase. guitar center is becoming the walmart of the musical instrument business. there are some really great independence still, but the 's have mostly gone away.

>> how do you foster growth in that environment? have an expanding business. >> it is really about the customer. we focus on you. we deliver wonderful, joyful products. we will -- they will find us. >> is there -- if there is any truth of that, it has to be true. nobody needs a third guitar. -- ieauty of the industry hope my wife is not watching. product, theg, the turn on investment so high, these are not just great things. they look and feel beautiful. >> he were talking about that earlier. the music program getting cut. the economy not doing as well.

are you able to get new and younger customers? how do you do it? class in fact, surprisingly, some of our more expensive guitars are bought by young customers. we have been very consistent. if you look at statistics over the last hundred years, you would be shocked how consistent it is. we are not a growth industry. digit growth. we have been really consistent throughout different times of and rockusic and media 'n roll is the staple. >> i wonder in terms of getting along with dealers, i talked to some dealers and they talk about thems where you want selling a certain kind of guitar, in order to be a gibson dealer, they have to take everything. you might have someone who wants to sell a lot of the lower end phones and someone else wants to

sell the high-end ones, and you're not providing them with the choices they want for their inner -- inventory. you guys difficulty have? is, a dealer is a relationship to us. we want them to like us and like our brand. we have at the phone only stores. we have custom shop stores. everyone has to represent us. that is very different from the way mom and pop's used to be, when the bill comes due, you get another brand guitar and people would have a product slapped on the walls and you would not know what brands they carry. that goes against their own

financial interest. it certainly goes against providing our consumer with a consistent presentation and experience. every store have to have a consistency to it erie it -- to it. >> i spent years in the private equity business. one of the things that drove me crazy is how most people involved have no interest taking a good business and making it better. i think what you and your partners did on gibson is exactly the model for how private equity should be done. people were passionate and they go in there and see the assets and business and say, how do i make it better than it has ever been before? not just how i get the cash generating in my pocket, but how do i make the cash 10 times as big and make customers happy? to you. hat i wish there were more people like you doing those kinds of transactions in my world. >> i am privileged to do what i

do. >> henry, thank you very much. rogers will stay with us. christ am i doing well at air guitar? am i doing well at air guitar? >> you are left-handed. i cannot tell. >> i never played a musical it at --t but i did gymnastics and musical theater. there is a lot of correlation. >> this is important. henry had a career in the investment business before he got into the guitar business. that ith about music is requires tremendous discipline at a young age. it is a leading indicator of the ability to focus.

named joann --an you there.top she wrote about this topic writing many high achievers told her music opened up pathways to creative thinking and experience opens upusic training other qualities, discipline, and to reconcile conflicting ideas. there are a lot of people all across the board. >> my favorite reverse one, brian may from queen, a great guitar player. he and his father built his first guitar as a kid. he interrupted his phd program to be a lead guitarist and clean for 10 years and then went back and finished his phd and he is out there finding constellations in the universe. music is not the only thing like

this. >> no. peter was as well. >> the great thing about music is a does not prevent you from doing other things. you can be successful in economics, the law of medicine and politics, whatever. business, investing. alleally is an argument for of us, with our children, to be given an opportunity. the budgets have been cut back, whichttle kids rock, provides music education but in a modern band form, so using instruments -- >> all your scores -- schools operate -- offer it. >> they learn guitar, bass, drums, and keyboards. >> which is harder, learning how to play music or a business? else issiness, somebody doing the work. >> what i found myself working in the hedge fund world and doing expansive financial stuff, which you left, i got to a point

where my financial models and spreadsheets reminded me so much of learning c parker tunes. it took so much practice and tweaking and bending and when you got it right, you just are like, yes. seconds later, it was gone. it is in the moment and then gone. the model is never current. >> the graph we brought up, that is not the point. and why you on a guitar scholarship. i was playing jazz guitar. learn, the skills people learning music, it carries over so well. things like activesync and thumping your head against the wall so many times until you get it right, it is hard to learn another field. >> may be another field, but i want to stand up to the other artists out there. there is a level of listening and communication and

spontaneity. >> same as in sports. >> i guess. >> learning a fastball, let alone a curveball, it takes the same kind of repetition and discipline. >> anything you have to prove yourself to, those things make a difference. it is not like everyone gets the lead in the school play. >> bono. tell me about what he brings to the investment thesis. >> are the things that is really interesting, and it makes sense, everyone has seen bono in a lot of public settings. and man took his stardom health it to the largest crisis in the world. aids in africa. he has made extraordinary progress. when i met him the first time, i

could not have named a u2 song. grammy fore "youthful day" -- "beautiful day" and i meet this guy and three things pop out at me. the first is that his success in politics is no accident. this is a man with a plan. the second thing is he knew so many things about technology. when you look inside elevation, the places where bono made a huge difference are three. first of all, he is -- every company in our world would like to be the u2 of their field. he inspires and is great at marketing, but unbelievable at connections and introductions. thing, u2 is a partnership 35 years old and whatever we got in trouble, we went home to mama.

>> thank you for being here. >> we will be back after the break. ♪

>> welcome back. not a whole lot here. trading pretty much flat. for our top 10. ford is coming in. citing an improved balance sheet. the announcement came after the ceo says the plant to stay with ford at least through the end of the year. matt miller has been telling me that for a while. >> he always says that. he says it because he means it and it is obviously true. who would question him?

not i. family dollar lowering its forecast for 2014. its earnings missed assessments. michael bloom has left the company to pursue other interests. l brands are down four percent, and the owner of victoria secret cutting fourth-quarter profit forecasts after reporting disappointing sales. merchandise margins were lower than expected. >> you know you cannot actually read. is this the new fashion show? this is the new one. >> i did not go to this one. i have gone to every victoria's secret fashion show for five years and i skipped this one. it looks like it was pretty good, actually. >> number seven, jcpenney is

rallying four percent. a recommended upgrade to the retailer, they are citing they says decision -- the company is doing what it should be doing. >> twitter dropping three percent today. a fourth straight day. analyst started the stock with a valuation. shares at twitter are down 15% since monday and it is now trading under 300 times cash flow. down there, 290 times. number five, world wrestling entertainment shares are up two percent. it introduces its first ever 24/7 streaming network third it will launch in the u.s. monday, february 21, featuring all 12 wwe live pay-per-view events, including wrestlemania. do you know who, i am pretty

sure, there is a great tie to finance. husband isitney's actually a wrestler. >> i do not know. is he a wrestler? doing,ever he is obviously, they are not really doing a lot of stuff, you do not really climb up a tower and jump on some dude just with your elbow, but it is a very physical thing they do >> and they do not -- they do get injured. >> it is athletic and they get injured and some people are finding it entertaining. >> we will talk about dabbing. l.i.am aslat naming wil

the chief creative officer. is in charge of shaping and of 3-g the mainstream use d printing. you know matt miller is back in the house when we've only made it through number seven. >> chatty cathy. apple, number three. down 1% agreeing to retain a mediator with rival samsung over the smartphone technology. they have spent hundreds in legal fees. >> and they will keep doing it. strong's up 7% after holiday sales and forecasting profits for the next fiscal year. here's the headline. cutting 2500 jobs and closing five stores. >> number one stock of the day, bed bath and beyond. plunging 12% after they reported quarterly net income and

forecasting. results including most of the black friday shopping weekend which saw spending declined the most sense 2009. here we are. ending and going down just attach and everyone is in a way dan c mode. and it's pretty promising. fool me once, don't fool me twice. i don't buy it. typically, this is kind of weird, forgive me for not recalling his name but the jobs infor adp, 181,000 the nonfarm payrolls, 180,000.

>> everyone recalculates everything and they come up with it. >> alix steel joining us here with the market wrap. >> initial jobless claims coming out. they are seeing forward indicators like the initial jobless plans coming in lower. >> totally boring day. utilities, consumer staples. >> let's move on to the roundup. >> it was an exciting day. are at seven months -- >> you know what? is going to be so exciting tomorrow. these are the stories we are tracking at have the open. from bloomberg businessweek, welkin. >> chime in whenever you like. >> they are not constantly looping footage of victoria's

secret runway shows. we don't do that. >> we do that here apparently. >> i want to talk about capital expenditures. not just because it's going to be a record $2 trillion but because so goes cap backs so does ford. they are boosting to $7.5 billion in microsoft is doubling theirs to $6.5 billion. guys, i cannot emphasize how important it off this is. stuff is.nt this >> bacon? >> no one was thinking about those numbers. .t a six-month high as with the capital expenditures

-- >> i wrote that column on how wife thinks 2014 will be the year of clarity. one reason i cited is because it was more anecdotal. you're starting to see sentiment change and they seem to be willing to put more money back to work. it.'s the evidence of >> we were just showing a chart of capital expenditures. show them the chart that hamza or. we don't have it but you cannot take our word for it. as good as capital expenditures so goes stocks. >> it's so important we are talking about it again. i think the chamber of commerce got what it wanted out of washington.

don't know what's going to happen in washington. we got kind of a deal at the end of the year. there's good indication that there will not be any more fights ahead of the in town -- before the midterm. i think this also lets people know there will not be any catastrophes. it's ok to start spending a little bit of money and it was a very clear thing they wanted. they wanted stability. these are amazing things that allow them to plan. >> for example, they have been upping the capital expenditures by $1 billion because they're willing to make more investment vehicles for this all alumina f1 50 we will see at the detroit auto show. aluminum -- f >> alcoa earnings just out. coming in a bit light. .arnings a pretty solid beat

that was pretty surprising coming in that five point $6 billion above the high-end of estimates. what's interesting is when we were discussing alcoa earnings, the question remains is it still relevant. we always looked at it as the beginning of earnings. >> they got kicked out or nike. it only makes about 8.5% of the world aluminum. they really got destroyed. all-around ball they've been trimming capacity in u.s., brazil, canada. it is already a big beat for them. >> it's still interesting because of the huge order that the lord -- that ford put in. f1 50elayed the new because they needed so much aluminum. not as good as victoria's secret

or the ford f1 50. >> there's another element of tradition. we think about that. about: and a lot of people probably don't realize. >> they are getting kicked out of the dow. legere getting kicked out. >> how long did it take to script that encounter? it was planned in advance? he does so many wacky things that i have been forced to become the chief john legere correspondent. >> lucky you. >> no shortage of material. >> it works. rivalhave a haircut to chilton. he wears a gold unicorn horn around a chain. prexy looking for a fight area

>> jon erlichman spoke to him at ces talking about paying customers to leaving other carriers, that subsidy. >> unlike my normal behavior, this is for everyone, verizon, sprint and at&t. i generally enjoy doing things to cause pain for at&t. >> they asked him about being kicked out of the party. >> i love macklemore. i was surrounded by a sea of humanity that escorted me out. listen. i would have done something different. >> it was not a stunt? >> no., i was prominently displayed in the new york post next to kim kardashian's photoshop selfie and eliot spitzer's sucking someone's toes in a bathtub. i've arrived. >> it's working.

t-mobile has done something that all carriers have been scared to do. they are lowering the average revenue per user. that's a really hard thing for a cell phone carrier to accept, getting less per month than they are so terrified to follow them that they are bribing them with $250 down on a device just to get them down to get them back into the at&t system. what he's doing is actually very challenging. >> that is what they did to grab market share. it's what they've been doing and it's why they have margins of about 0.1%. >> what is with the balding guy wearing a gold chain with the unicorn horn? only 11-year-old kids love macklemore. >> this is the most effective

rebranding. >> we've talked about them more in the last week. >> they had catherine zeta jones, then they had the t- mobile girl. the gold chain guide demographic. >> he does a neat stuff. >> he did not meet to get kicked out so we walked in wearing a pink t-mobile t-shirt? [laughter] >> another eccentric character these days? looks goodristie today. his lost some weight. >> a lot of people say that but i'm sorry. he's still fat. lost some weight. that's one good thing. his office ordered the closure of lanes over the george washington bridge causing a traffic nightmare for days and the death ofing to a 91-year-old woman who was not able to get into an ambulance and time when she had a heart

attack. he or hiss because office was angry at the mayor for not endorsing him in his run for governor. knowledgeat he had no of his deputy chief of staff ordering the closure and he was very angry. she ordered it in a text message that basically said, i think it's time for some traffic problem's. >> the guy who runs the bridge said, gotcha. clearly it was already set up. you don't say that and then you shut down lanes. >> here's the thing. that is a smoking gun but it was his chief of staff, not him. or deputy chief, whatever. he fired argue that

this person for doing something morally offensive and he comes out looking -- >> i don't know. this the person you chose to be on your staff down there has to be some responsibility there because you are surrounding yourself with these people. they are your employees. the idea that you have someone who -- beis that culture that will under investigation. they already ran another story about a completely different attentional bullying move. >> we like him being a bully. been a bully on television but in private and abusing the power of the office? these are things that it's ok to report on more aggressively because we have a reason to do it. just bullying the mayor. is bullying all of us. flak from the traffic that he

it's a bad move. >> the only reason we are talking about this is because he's going to be a candidate and it's a long time until then. it is the jeremiah wright problem in 2008. >> they definitely forget if they smoke a lot of weed. in colorado, that's what they are doing. investors are trying to cash in on all of this action. potare getting penny companies that are soaring on this news. some of them i know quite well because he was a subject of several chap there is in my , a look att ventures the almost legal marijuana industry." called hemp company and spending 200% in the last big drugand he was a

smuggler back in the early 1980's. he went to jail for nine years after smuggling into this country about $1 billion worth of pot. on the westingpin coast. anyway, you start this company and people are investing but it's a penny stock. >> is at the actual pot they sell or the accoutrement? >> $400. tracks investors, beware. >> green grow and medical marijuana all trading for pennies and dimes and it's a wild ride. medvox on the pink sheets? >> i believe they are on the pink sheets as well.

and they released a statement to that effect today. buyer beware. the guys in charge of these companies may have smuggled drugs. out of the home with the mortgage ceo's but they did not go to jail. >> dabbing. it's actually kind of scary and could threaten the entire marijuana industry. first, the taper is here and the trade is very clear on it. ♪

>> taper is here in the trade is clear. time for insight and action. ins is what we have learned the first two trading days of the year. look what has done well.

all the stuff benefiting from government largess is not doing so well. oil down five point nine percent. emerging markets down five point two percent. telecom and the euro both down. 5.2%. down by telecom, that was just a dividend play. you do not need the dividends but the euro obviously was at an advantage because we were depressing our dollar so much more. we arelar is up because tapering. we are not the basing as much as we have been. this just reinforces the notion, janet yellen, stronger growth this year as opposed to mario strongly emphasized accommodation.

they both use the words strong but very different meanings. strong growth versus strong accommodation. therein lies the difference. you the cut the doctor because -- the dollar because it all boils down. this is the move we were talking about so far here, about 1.5%. the first two trading days of the year and you look at what and we have bounced. that certainly makes the case and opens some possibility because a move up in the dollar. tapering is actually good for the dollar. moving on. coming up, the man behind the second most-watched ted talk ever says you've really screwed your kids up. he will come here and explain why. ♪

>> the baseball hall of fame nominees are out and it takes a lot of money to keep those bodies in shape and how about the fields they play on? looked at five of the most expensive u.s. baseball stadiums. ♪

>> breaking news on sears. the stock has been halted. let's go to mark crumpton in the newsroom. thanks sears holdings total sales at a con are down 7.4%. the total comp sales year to date due 3.9%. showing in loss of $65 million and they are also seeing the fourth quarter domestic adjustment. $20y are at $80 million to million. right now.wn 13% of this point. >> we were just talking around this time yesterday about macy's laying off 2500 people. down on that news.

the stock is off 14% in after- hours. we will be back talking about millenial's. what is wrong with them? maybe it's not their fault? we explain next. ♪

>> according to a recent study, the number of people diagnosed with attention deficit hyperactive disorder skyrocketed. our next guest says it's not all your fault or their fault. get you back on track. we want to welcome back simon on "street smart." we are talking about millenials and they're scattered brains. we talk about this attention

deficit disease, hyperactivity. you have a theory that the parents are to blame? clacks clacks they have contributed. -- >> they have contributed. a frontal lobe disorder. what would account out of the disorder?we see this it's misdiagnosis. distractibility, attention, they weree that, raised in this world during the 80s and 90s that was basically produced by the baby boomers who came to power. and what you started to see was a steady dismantling of the systems that kept us in check post-oppression. there is this --

they have grown up in a selfish environment. that is when it became popular to use the layoffs to balance the books. it was not socially acceptable. >> as the security blanket was pulled away from people they start looking over their shoulder. >> they are told you better look after yourself because no one else will look after you. they no longer get safety and security. if they have a bad year, they would rather sacrifice people than say the numbers. how does that translate into hyperactivity or attention deficit disorder? the rise of social media where everything is instantaneous. answers on google, friends are instantaneous. allure find is that the of social media and texting has a hit of dopamine.

>> it's a high. >> it feels good when our friends text us. we count all the likes. >> literarily. >> did somebody comment? i just posted a picture. but how many people like it and forwarded? but it gives us hits of dopamine. things that give us dopamine is alcohol, drugs. it you can get addicted to that high. with the rise of social media not to mention the selfishness, .y theory is that it's not adhd >> we are misdiagnosing. >> it's an addiction to social media. the use is becoming a date did to their phones. they cannot live without it. do without it. we also know that people who

spend more time on facebook demonstrate higher rates of depression than people who spend less time. >> with the dopamine up and down? >> they are not forming real human relationships. comparing your life to the life you perceive others are living. everyone is better looking. everyone is having more fun. >> those filters on instagram .elp >> everybody is happy and my miserable life is part of the problem. >> let me impress you with this. it's amazing. >> thanks for having me. >> we will be back right after this break with more street smart. ♪

>> i'm mark crumpton at the breaking news desk.

abercrombie & fitch is up after boosting its forecast. sharejusted earnings per $1.65 inng to be $1.55- the nine week comp sales up. up in the after-hours after boosting the forecast. trish, back to you. >> thank you. now to the big story, the future of the nsa. president obama met to discuss how to implement change at the agency and it was one day after meeting with the board, the president needs to determine what to do with the controversy. let's bring in our roundtable. jim woolsey, former cia director . we can see announcement as early as next week. what will it look like yoe? >> i hope the president does not

listen to the people who have and calling for amnesty. that is just red meat for trying to make money from turning it loose or ingratiating himself in some way. once theym to act release classified information, they can hold on to it and it will not go to hezbollah or al qaeda or nice people watching the evening news on television. that's not true. once you've turned it loose to anybody, you've turned it loose to terrorists. naïveté aboutof this. people are engaged in the most wishful of thinking. what are you afraid is going to happen here? what could come out i could be that damaging? ofthere is a large amount intelligence embedded in the way that we go after intelligence

ways to besa and able to just look at the outside of an envelope of spurs class mail and numbers called by telephones. this is nothing new. appalledso shocked and them not wanting anything to be kept in the hands of the government or used even by getting into the subsidy. what'sle want to know actually happening. they want to know what the government is doing. they don't like the idea of big brother looking at all of their stuff. have do we walked the tightrope where we make sure you are secure but also not looking into every one? >> they want hezbollah and al qaeda to know because there is

no way to block it. >> i was just going to say the idea that the public will have trust and confidence to have the appropriate oversight is why we created the system we have with classified committee reviewing their nature. the public really does not have that level of trust and confidence in the congress today and we are seeing and we are of folksis cause a lot to question what's really going on. >> you are a former director of the cia. you understand checks and balances and you work under democratic and republican administrations. why has this tank completely broken down? has.don't know if it

it has been press generated and individual sets of problems. >> wait a minute. is fact that the nsa collecting data on all of us, somehow that does not strike you as out of bounds? collecting not substantive data on us. they only do that under a court order. phonehey collect on the numbers that are called, the outside addresses and they have been doing that for something have40 or the years that been upheld. it is not a crime or anything undesirable that i know of to look at the outside of an envelope to get into the substance of a telephone call. it helps them keep track of who may be communicating if one of those people is a terrorist. if you don't want anything like that all load, you don't want

the dots connected. you remember when everyone said, how can they not connect the dots? this movement is saying do not connect the dots. we cannot let them be connected. that is what a are saying when they believe it is important not to let the nsa or any other track on able to keep what's on the outside of the envelope for the till of the own numbers called. >> final word to you. the president addresses the nation, will we see something substantive? is what toquestion do about the metadata program. i would not a surprise to see the president shifted that program towards the tour instead theaving the nsa keep program as it currently is in

place. on the other hand, some of the other major recommendations from the review committee about the organizational structure of the nsa will probably be less likely to be implemented by the president. >> pimm fox joining us with a look at what's coming up next. >> coming up on "taking stock," introducing you to two college students who've raised $250,000 on kick starter to build a mainstream and affordable 3-d printer. ed entrepreneur hurt turn her sense of smell into a business model for perfumes. they are flying off the shelf. themedia is changing landscape of content creation. all that and more at the top of the hour. ♪

>> i wrote a book on the underground marijuana trade and i did a documentary on him. nothing could surprise me when it came to the subject until i went to colorado and i saw what is called dabbing. lastjust surfaced in the 24 months and it's threatening the whole industry. take a look. it's a new twist on an old high. gets it done very quickly. pre-k's it's packing a heated punch. >> clean and pure. they are feeling this is the new wave of cannabis. blowtorch to get a super concentrated hit of thc, the chemical in marijuana that makes people high. they sell pot in denver. >> it is made up of flowers which has anywhere between 13%

to the high 20%. this is around 90%. it's great. the sameis to cocaine, drug is made more potent through chemical engineering. pre-k's it's a concentrate. >> they are rinsed with a solvent and in a lab. >> it washes over the extraction. the material comes out of the collector and those here. >> what's left behind is almost a pure blob of thc, butane hash oil. >> he will heated up now on till its red hot. once he gets it to that point, he will put this dome on it and it captures all the the smoke. that's a dab.

>> recreational use of pot is now legal in colorado and washington state and that includes dabbing. the message has always been puff videosbut as the striking show, they have caused the explosions trying to make a butane hash oil in the kitchens and there have been reports of passing out from in tents high. it has some worried about what it all means for the legal marijuana business. pre-k's i've heard people call it heroin-juana. we don't need that. we are in the process of taking this to the fully legalized and regulated market. let's do it carefully. put off byeople are this. it's scary looking. does that hurt the industry overall? >> the naysayers like to use

this as ammunition. they like to say there's blowtorches, fire, danger, but it's never killed anyone. than's more expensive flowers. because of the high concentration, a little goes a long way. >> the joke is a dab will do ya. >> are you feelin git? -- feeling it? >> of course. >> all of these dispensaries have seen a huge uptick in the amount of sales. pre-k's you cannot sell the regular stuff -- flex you cannot just sell the regular stuff. problem because it is such a bad pr image. isa fledgling industry that just becoming legal and all of a sudden you introduce a blowtorches and you have people

thinking about crack, blowing up hotel rooms. it kind of ruins it for regular people that just want to smoke pot. >> you think about the intense high that people are getting. high from the thc versus a 15% high on the narrow one up. >> when i hear what happens if it goes wrong, i can understand why it's illegal in 48 states. weed, it is smoking still thc. you will not do anything except getting high. it's very scary looking. the fire in and of itself. that doesn't for us. >> further research is necessary. today. does it for us

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>> it is 56 past the hour which means we are "on the markets." i matt miller. let's get you caught up on the major indexes today. that will be fast does nothing basically happened. almost no movement at all. the dow jones down but just about 18 points there on the nasdaq. vix, wall street's fear factor has opened of the year to a fairly silent start dropping below a level of teen. in deming is a vix options trader joining me from the cboe.

markets, are they just treading water now? what does this mean when we have a vix that makes it look like everything is so complacent? not a lot of conviction in the market. we had kind of short trading weeks that we've had our first full week but all eyes are on tomorrow morning and the unemployment report. theeally kicked off earnings cycle. i think you're going to see maybe a change in the expectations moving forward. >> you expect volatility to rise then? a it a good idea to buy little right now when we are at these low levels? saws far as the action we today in the vicks, even though the market was benign, we saw some pretty heavy buying of february calls and at the end of the day, a big buyer of january 16 calls. there is some repositioning but there are some people who believe that maybe we will get a

shift in volatility expectations. >> what are you hearing as far as whispers on the earnings season coming up. >> you are looking right at that so if it isel outside of those -- that 200,000 level. it is very low and i think this is also keeping the fix under pressure as well so we're running around seven percent right now. >> you expect that to pick up. it seems it would be cheap to get in. >> you are seeing a fair amount of call buying. insurance really, some negative correlated insurance in the market. it's pretty cheap at these levels. >> down, thanks for joining us. dan deming. i want to quickly mention a stock as far as the equity side

of trading goes. intercept pharmaceuticals had massive gains today. it has developed a drug for the liver disease that was just approved in fda testing that has boosted the stock market value to $5 billion and it was less than $2 billion worth of biotech yesterday. a big story that a lot of people are following. the ticker is icpt. half-re, join us every hour and on the hour for "on the markets" on bloomberg television. ♪

>> this is "taking stock" for thursday, january 9, and 2014 and i'm pimm fox. i will be joined by kay, the founder of the usa network, and chairman of a media company. plus, you'll meet some college friends that think they have made a 3-d printer that is affordable for mainstream consumers. it is another kick starter success. and you will meet a n