>> welcome to "lunch money." i am adam johnson. we take a look at the menu today. here's what we have got. the sports car is back. one of the many new models they have in detroit. we will show them to you. sharing the secrets of his success. separate ways to j.p. morgan and wells fargo. we will talk about that. we will hear from the biggest names in fashion and retail all under one roof. and south korea's latest export. we will kick it off with a story everyone is talking about. handful of companies are making deals. the biggest one came from

outside the arena. >> democrats and republicans came to an agreement last night, unveiling a 1.1 trillion dollar package. >> a rare moment again of bipartisanship in washington. the continuation of the budget deal we saw last month. patty murray and paul ryan said spending levels for washington the next year a missed bill agreed to last night from top leaders, effectively doles out the numbers specifically and that is why this represents a compromise. neither side got everything they wanted. but it should pass the house tomorrow and the senate later this week. >> congress feeling the vibe from a big start to dealmaking on wall street. charter communications finally made its highly anticipated takeover offer. $51 billion. the largest unsolicited it for a company since 2008. time warner cable says it is too low.

>> what was interesting about what happened yesterday is charter came forward and said time warner cable had rejected the latest dead, so we are going straight to shareholders and then time warner cable came out and said that they had rejected the bid. charter had already said that. their purpose was to go to shareholders. it was almost a double rejection that time warner cable came out and said this is way too low. we countered with 160 per share and charter said that was way too high. the bookends have been set here. the question is, can aid he'll get done somewhere in the middle of the two numbers? >> in another deal, the japanese whiskey maker is offering about 20 times cash flow. two very different values for different types of entertainment. what is the cost of feeling comfy?

it is $3 billion, how much google is paying for the maker of wireless thermostats and smoke alarms. what does google want with a company that makes thermostats and smoke alarms? the google ceo said they are excited to bring great experiences to more homes and more countries and fulfill their dreams. homes. that is the keyword. this deal is showing google is branching out. it sounds like apple. the ceo and cofounder came from apple. tony designed the ipod. here he is in his own words. >> you start with a problem. for me, frustration. you try to figure out what is the best technology to solve that problem. ♪ i have stumbled on a thermostat prompted it was frustrating.

no goods illusions to save energy. this was born out of that frustration. the ipod for me was born out of the frustration that i was a dj and had to lug around 1000 cd's. my experience came together with the love of music. i look at all the various pieces around the house. a lot of things we could apply the same hardware and software services to them. will it be your toaster? maybe or maybe not. i still burn toast. maybe one day the toaster will get a lot smarter so i do not burn that toast. >> there is one deal out there. going up in smoke. directv blackout on the weather channel as of midnight last night. the sides are fighting over the amount of money directv pays the weather channel to carry its programming. directv wants to pay less. the weather channel wants it to

pay more. let the finger-pointing to begin. >> all have long-term contracts that believe in this value. this was an arbitrary move. not based on the value to subscribers. it was just trying to squeeze pennies out of a small and independent channel because they thought they could. bullying tactics will not work. our fans will not stand for it. >> directv's response, they said in a statement that consumers understand there are a variety of other ways to get weather coverage free of reality show cover. the weather channel does not have an exclusive on the coverage. the weather belongs to everyone. the ceo of the weather company says -- >> people love our reality shows when we run them. the channel is completely committed to weather. we run it all the time so people always know the weather locally.

we also run live 11 -- live weather and not a loop and field reports really show people what it looks like all day long from 4:00 a.m. to 8:00 p.m. all day. whenever there is severe weather, we continue it as long as it takes. we are alive with the weather. >> i get it. directv is saying talks are ongoing for an agreement to return the network to our lineup at the right value for customers. we are off to the mall on "lunch money." the view from some of the biggest retailers in the country. plus, the hottest cars in detroit. we will show you five of them coming up next. here is horse power. a chinese racer set a guinness record by driving across a river in -40 degrees fahrenheit. incredible. a sudden strong wind pushed the car off course but it landed on

a pile of cardboard boxes. more amazing, the driver was not hurt. ♪

>> the auto industry just closed out one of its best years on record. investors are gathering in motor city to see the latest at the annual detroit auto show. we decided to go ourselves. here are five of our favorites. ♪ ♪

>> bmw unveiled its new coupe. we were told all about it. >> this is very different. much lower and much wider and slightly longer. it is a big step forward. we moved it up to the fourth. you make a valid point that the m3 is still the icon of the brand. we have to bring a sedan version as well to really keep a hold of it. >> i love the classic color you have chosen. you see the carbon fiber roof. it be -- it has become a huge trend of the show this year. you have used it probably more

than any other carmaker for longer. how key is that in fuel efficiency? >> we decided a couple years ago the use of carbon fire had a very good future ahead of it. taking weight out of our cars, electric vehicles, or into all of our sedans and products that come in the future, it is not something we wanted to really prove or pioneer, the production of carbon fiber. you see it and you will see it in a lot more products as we go into the future. >> toyota has a new car this year. we explain how this works. >> we have been working on this for some time. prototype after prototype for the last 20 years. this will be available to the general public in 2015. >> i knew it would be possible, but i thought for only hundreds of thousands of dollars.

everyone has been saying the technology is too expensive. when you really compare what you will do to battery technology, it is like a discount. >> especially when you look at the ease of refueling this and the water vapor. it is the real deal. >> explain to our viewers what it is and how it works. >> basically, it is using off- again -- oxygen and hydrogen to produce electricity. to either drive the vehicle or recharge the battery and all the omissions are only water vapor. >> that is pretty awesome. you have really been the driving force in hybrids. with the prius and really across your vehicle range. how much of your sales are hybrid vehicles? >> 15% of total volume is hybrid and that will only go up only -- over time. when you look at fuel cells in hybrids, one of the reasons fuel cells work so well is because we are using hybrid synergy drive

to power the vehicle. rather than have an internal combustion engine, it will work off ace -- a fuel stack. we did not have to reinvent the wheel. >> very cold. you have something extra special, which i did not expect to see. one of the real surprises of the day, a super sporty toyota. is that the direction you are headed? >> it just tells you about the brand. since he has been in charge, he talks about his passion and that is what the car represents. it gives our cars -- designers a clean sheet of paper and we said, if you could design a car and forget landforms and engines and all the details, what with the car look like gecko that is what they came up with. it is exhilarating. >> one you might not know about,

they only sell a few thousand of these but people love them. >> we are honored to be recognized for that. it is in our dna. as you can see, we are trying to extend this thoroughly through the introduction of our brand. >> a much sportier brand. >> absolutely. the difference with the other brands is not only do we bring to the market technology performance, but a much more affordable price than our competitors. they are legends. you see some movies on the cinema that utilize our cars. sometimes they need to pay to place the products. we actually get -- they seem to like it. for those who are enthusiasts of the mobile competition, it is a good option and a good brand.

>> "fast and furious." >> absolutely. we will have a complete portfolio and you may expect nissan much more engaged into competition activities here in >> volvo is back there that is engaged into competition activities here in the u.s. >> volvo is back there that is what the ceo wants you to believe. after being acquired from ford, the company is innovating and are ready to resume selling here in the u.s.. >> a new management team. new products coming up. new engines. we invest more in the market. we have to tell customers we are here to grow. we have to be much clearer on the mobile brand. why are we a premium car and

what are we delivering that other premium cars do not deliver. that has to be much clearer. >> talk to me about the engine. over the last years, you were doing well. some of your engines in racing. >> for the customers, six- cylinder engines, we will answer for them between engine concepts, electrical engine, four wheel drive, and combined powers and 400 horsepower's. >> it is the way of the future. >> it is much more modern and a high-tech solution to the market segment. >> just to put that 400 horsepower engine into perspective, it is twice the -- twice the average car. a lot of power. you heard from people in the car business. later, retailer. plus, mohammed tells us how he

did it. and how do these guys do it? a group do -- find out another use for a building. look at that guy go. ♪

>> we are looking at how to climb the corporate ladder. what ceos say you need to know about getting ahead. we asked some of the biggest leaders in business what they think got them to the top. here is the pimco ceo on his secret to success. ♪ >> not realizing your strength could be a weakness. you have to bring together various people. it matters what other people are doing. it matters what skill set they have. you cannot excel without also realizing the skill set and capability of other people on the team. do not dismiss soft subjects. some people focus too much on the hard subject. i did not pursue enough languages. i wish i spoke a lot more. i am not as grounded as i would like to be in my position as a global ceo.

everybody owns a bit of your time. you can get bombarded by what is important. an urgent. you also get bombarded by what is urgent and not important. making time and understanding you need to regain control of your time is critical. the more inspirational are those who focus on things that are important but not urgent. i do not get enough sleep. i'm lucky to get five or six hours. i wish i had gotten more sleep. >> more words of wisdom from the ceo and founder of -- in 1998, he founded thor equities. a multibillion-dollar real estate empire. >> i often say for a dollar, you could buy a hardcopy of the newspaper were just go on the internet and all the information you the possibly want is out

there for free. i say you have got to look for opportunities either horizontal or vertical. what i mean by that is vertical, how to build a better mouse or technology to reinvent something done another way -- >> not to reinvent the wheel entirely but improve on it. >> or to take it horizontal. all the basic goods and services we take for granted in the developed world, people are starving for it in indonesia and the philippines and nigeria. it might be taking the shop -- opening a woman's closing -- clothing store. >> you recognize there were areas in retail not being well served. urban areas. hispanic and plus size women and you realize, they are not being well served and he started your retail chain. how do you recognize where those pockets are? >> just being aware when you're walking down the street, looking

at people and what they are wearing, what they are using, what they're doing, and when you see the opportunities, one thing is making the idea and the other is having the courage. jump in the pool but in the shallow part. if you do not, you will never win the game. i would say that first and foremost. number two, i would say, building a great team of people and surrounding yourself with folks who will have the same passion you will have for creating the better mousetrap. last and not least is relationship and honesty. being the kind of person that people want to see succeed. that people want to help. >> rocksolid advice. tomorrow, we will hear from martin zorro. all week, we will have more -- from global leaders on how they get ahead in how they did it jpmorgan and wells fargo out with earnings.

derek -- very different results. and the hot business of hot sauce. that is coming up. ♪

>> this is lunch money. we are also streaming live. i am adam johnson. today's moving pictures, where the video is the story. in thailand, antigovernment protesters dig in. they are blocking to bangkok and say they will stay there until the prime minister leaves office. they want her to quit before the february second election. the italian island of giglio, marketing and anniversary of the shipwreck. people were killed when the ship rammed into the rocks near the island. it will be towed away and dismantle in june. japan's 20-year-olds get their own national holiday. the coming-of-age day.

the day marks the age when young japanese can vote as well as i booze and cigarettes. japan had the smallest number of 20-year-olds this year, 1.3 million, down from a high back in 1970. in bank, we will start earnings with two of the biggest and different results. we will start first with jpmorgan. profits jumped about 17%. jpmorgan paid out $2.6 billion in claims tied to a ponzi scheme. >> a lot of one-time items include the $2.6 million settlement tied to the ponzi scheme. also sale and visa shares and the sale of properties. analysts like to call it a noisy quarter. when you strip out one month -- some of the one-time items, jpmorgan had a profit beat of $1.40. jpmorgan set in excess of $20 billion in legal settlements in 2013.

when reporters asked jamie dimon on a conference call later on whether jpmorgan will be done with the legal headaches this year, he declined to comment and said he would to take a rain check on that. no clarity from him so far on the upcoming legal settlement. what we learned from the earnings report and a fourth quarter is credit trends continue to improve at jpmorgan, though trading revenue and equities did miss the mark in the fourth quarter. commodities trading revenue was higher than anticipated, even as it drop seven percent from the third quarter. investment banking fees were higher than anticipated thanks to an increase in ipos and dealmaking. compensation is a big area of concern for a lot of people because of expenses and the need to maintain expense control at the big ask. jpmorgan set aside $70 for pay and compensation. that is about 30% of revenue, the same as it was last year. in terms of headcount, the cfo at jpmorgan says he sees a

little way to go. >> the earnings call, jamie dimon addressed -- he said the bank had to replace 2 million payment cards after the breach of consumer data at all the retailers like target. >> the cybersecurity is a big deal and will not go away. all of us have a common interest in being protected. might be a chance for retailers and banks to for once worked together as opposed to sue each other, like we have been doing the past decade. >> to wells fargo, the largest u.s. home lender. it writes about 30% of the mortgages in the u.s.. they posted a record fourth quarter. the net income advanced 10%. the numbers were also dug into at wells fargo. >> the biggest home lender, responsible for one in five u.s. mortgages, hurt by the higher mortgage rates. we saw them drop about 30% from the third quarter down to $50 billion from $80 billion in the third quarter.

that was offset by rising trust in investment fees. a couple analyst notes i have been looking at say wells fargo was able to make its quarterly numbers and its profit and sales numbers. that is something to watch for. a drive to cut expenses continues at wells fargo. got an efficiency ratio, its cost as a percentage of revenue, back at the range it was targeting. it wants to get that somewhere in the line of 55% to 59%. >> retail reality. we will hear from tommy hilfiger. about the changing face of the industry coming up. let's talk about barney and superman. these guys made the trip to a festival in india. it takes place annually. the change of seasons and longer days. that is kind of cool. ♪

>> sales rose 2/10 of one percent. there are plenty of challenges facing retail right now like integrating stores with websites. we caught up with chiefs at tommy over your bloomingdale's and goldman sachs. >> when we close our stores at 8:00 p.m., they are shopping around the clock. it is a benefit to all of us. >> an advantage at bloomingdale's, disability to engage.

-- this ability to engage with you. if i could engage with you and create relationships with you, is that not better than just going like that on the screen? >> the product has to, in this day and age, where it is a global business and the competition is not local anymore, the competition is global, you really have to nail it. if you do that with the product, everything else makes sense. >> retail today is about customs without patronizing them. you are understanding them and nurturing them but also giving them a choice. >> it is about the product and doing something that moved a needle him a that inspires people to buy. >> consumers are smart and they know what they want. they have a definitive attitude. the role of the department store today is changing dramatically. >> notice the common theme. they are all talking about technology. is technology essential to succeed today? >> you have to have technology in today's world. the growth of internet, you have

to have this approach. you cannot survive without it. >> what do you do if you're one of these companies and amazon is beating your business and they do not care about making money? >> it has an unbelievably efficient business model. they have a very different fundamental cost structure. a multichannel retailer has to build to their strikes. >> if i am macy's, how do i combat against amazon? >> have a great location. have great service within your stores. offer the customer a reason to go there and not just price. it cannot be price. it has to be so much more than that. >> no retailer out there can beat amazon? >> i would not say that. they are beating amazon every day consumer electronics is difficult. there is so much internet information, and it is a big-

ticket item. they can discount below where a storefront retailer can do it. it is very difficult. contrast that to a vertically integrated rant. they control their own destiny. they have the brand. they control where they sell it. extremely powerfully today's world. >> we have tommy hilfiger. who is more important? your chief designer or your chief processor? >> you cannot live without both. you need great quality and pricing. if you are shipping something someone orders online and it does not fit, they send it back. we make sure our fits are really great. we have to be price competitive in this market. we have to give incredible quality at an amazing price point.

>> how much pressure are you under as a label to bring that sexy to the millenial? the miley cyrus's of the world influences them. >> if you look at hollywood and the pop-culture world, there are the reese witherspoon's who have great classic looks, or the kate bosworth's. i follow those trends, rather than the trends on the temporary side that come and go very quickly. i like something longer lasting and more trip -- more classic, with a twist. >> do you feel pressure to fall in with those who offer a much smaller price point, or is a happy shopper happy to pay for that? >> tommy hilfiger is a premium brand. luxury brand is expensive.

fast fashion, but not really well made. i want great quality, great pricing, premium positioning in the marketplace, and still attach a status to it. >> is there one thing a tommy customer wants, what is it? >> everything. it is never enough. if we put red, green, yellow, purple, beige, they want brown and rust. what we are doing is continually expanding assortments to make sure we really check every single box. are they slim? are they tight? are they full cut? are they soft? are they watched? are they colorful? are they affordable? check. and we continue growing the business. >> security is obviously a big concern for retailers these days. here he is on what he is trying to do to prevent another issue like we saw at target weeks ago.

>> we feel we are doing everything possible to keep the consumer safe. it is a very big issue right now and a prevalent issue. we spent all we can with security and technicians and i.t. specialists. we brought in external people and i think we're doing everything we can to make sure we keep a safe environment for our shoppers. shoppers need confidence and to partner with the brand. >> you can watch more of our coverage online or on our award- winning tablet app. all of this shopping is making me hungry. pretty crazy stuff. how about some spice? we have got that. the hot business of hot sauce is coming up next. ♪

>> we are kicking it up a notch today. here is a look at what is hot in the world of hot sauce. ♪ ♪ ♪ ♪

>> spicy. maybe you want to mellow out instead. there is a restaurant in colorado playing around the idea with the idea of pairing your sushi the way you might pair steak. >> it is a parity, tongue and cheek, to now that in colorado, it is legal, we just want to have fun. you obviously cannot actually go into a restaurant and order marijuana and get it served. it is hard to say, is this the

beginning of the end of prohibition for marijuana, the same way it was for alcohol. it is hard to say what things will look like in five or 10 years down the road. >> there are a lot of ways to get pleasure from food. even watching people eat. it is a trend among south koreans. crazy stuff. rachel crane explains. >> nowadays, you cannot turn on the tv without being bombarded by photos of soup. some call this food porn. a phenomenon in south korea is taking this appetite to a whole new level of indulgence. young south koreans are documented gorging on food. we are talking a lot of food. >> unbelievable.

>> the feasts are streamed live and people are actually watching. thounds of voyeurs tune in every night. the main out let is making many celebrities out of these eaters. the most watched jockey rakes in over one hundred 80 million views. he broadcasts nightly for five hours straight very at these jockeys are not just gluttons for fame. they're getting paid to eat. this is how it works. they uses a unique online current see and each balloon costs 100, about $.10. viewers get their favorite jockeys based on the eating performance. at least 10,000 balloons per broadcast are made. he can make up to 40,000 broadcasts per month.

not bad when he is spending $3000 per month on food. he earns around $7,000 a month. how does this station make money? africa tv make even korean celebrities are getting in, performing it on mainstream outlets. will this trend hit the u.s. and will we see the likes of angelina jolie stuffing her face? for now, you're stuck with me. >> if you did not lose your appetite, you might lose it over this. it is our mystery meat today. [applause] ♪

>> it is approaching 50 six half the our. bloomberg television is on the market. there are developments on general motors. the company had not paid a dividend since the financial crisis. they just announced that they will reinstate their dividends for the first time since 2008.

they will pay out $.30 per share to shareholders. big news for general motors on their road to recovery. speaking of recovery and rebound, let take a look at where stocks closed out the session. there was a big rebound after yesterday having the worst evil days as november. stocks bounce back. the s&p finished up better than it did. technology within the s&p and on the and not that was up. -- and on the nasdaq was up. speaking of technology, 2013 with a record year or ibm. they won the most patents of any straightor the last 24 years. we took a look at the ibm patent history. we always talk about this false what company has what patent. why do we care? >> for a tech company, it is

important for them to get ahead of these inventions ful. it helps to protect from copyright laws as well. is not what one would think of as a cutting-edge company. it has held that spot for 20 one st years. how many patents that have have last year? >> 6800. >> how did they hold onto this tops on the mark >> they put six lien dollars into research and design each year. they want to get out in front of these different trends. what they do with these patents and inventions, it might be a different story. >> historically have things come out of the patents that have been interesting or lucrative question mark -- lucrative? can take three years before a patent is issued.

it shows where companies are looking to grow. you can see a lot of cloud computing with them. they are dealing with encrypted data better in the cloud. also with watson, they're smart computer that can answer a student lane english. >> is this something that investors look work? ibm stock has not been doing fantastically well. do they pay attention to this on portfolio? >> the investors i have been speaking to have the sentiment that it is rated to have all of -- theytents will not are having a bit of an execution problem. it is promising to see them getting out ahead of these trends. we need to see them hitting the top line and commercialize products. >> a lot of companies are engaging in patent right -- right -- fights. >> ibm likes to settle.

twitter, you sell the ipo filing that ibm approached him on three separate patents and said that they need to figure out what twitter oh stumbles , thank you soews much for talking with us. it is an impressive portfolio. for on the markets, i'm julie hyman. .