"lunch money." i am adam johnson. and what he hates about washington and why he is telling google. how did he get here anyway? the head of the world passes largest ad company tells you how he got to the top. and why the long face, amazon worker? to unionize this giant. the man who gave us the real world knows how to win. that is coming up. finally, in sports, brooklyn

going to london as pro ball goes global. we are kicking it off with a story everyone is talking about. cars. the detroit auto show. it is open today. so far, hot new models and high tech concept cars and auto executives talking shop. has been terrific and he is a great ceo. he gets the whole conversation off the table. >> we are expanding production capability. >> it is a different capability equation but most importantly, a different operational cost equation. >> 16% of total volume is hybrid and i think that will only go up over time. >> sales have recovered fantastically since the recession. >> it is really strong. a nice year. >> our customers to create demand for a product, and the

.umber of sales >> ok. that is the word. did you notice something? is all men at least until today. >> mary starts her first day at the home of general motors today, the first time a woman sat at the helm of a global automaker. >> you could tell what a big deal this is by the throng of reporters that rushed her into the show. she was there monday. sworn again the next morning when the north american car truck of the year award went released on her watch. a long been at gm for time. >> she has been at gm her whole adult life, starting as a college intern and working her way through. an engineer by trading -- training. vehicle manufacturing engineering, and she ran product development. she did time in hr, where she really brought engineering if those there to try to streamline

the paperwork and simplify things and get stuff done without mucking everything up. she has a really strong understanding of the fundamentals of how the company worse, how the car business works, and what she brings that gm has not seen for at least a couple of ceos. >> is a good day for ceo's is. a modest improvement. it has brought back the dividend $.30 per share. there is a lot of pressure .nd -- pressure it is time to turn my back. suppliers inggest america just increased their dividend by about 50% yesterday. ford increased theirs by 25% last week. there has been appetite for some of the cash being generated to be returned

to shareholders. mary feels like gm is not just profitable but will be consistently profitable in generating cash and they can't afford to do that. it was well received before today's guidance. benefiting from new or refreshed vehicles in the u.s.. the automaker coming back from his government bankrupting organization. she is still got a lot of work to do. >> it is always important to detroit and industrial america that gm be a healthy company. when it is not good, it sends a really negative and profound signal about the whole u.s. economy, but especially industrial companies. a talented person who does not have enemies around the industry. there is a lot of sense they wanted to succeed. as far as the cutting for breaks, what she has is a healthycompany in a

industry. everybody's making money now. gm is making money. for years, when it made money, such a small amount, it is really truly competitive now, so she has the opportunity to run a confident, global automaker and there is a lot of work to do to keep making better integration globally with product development, more growth in china. left to a lot of work do. they have a balance sheet that is competitive, they are paying a dividend, good worker relations right now. a lot is going in their favor. they have invested in the improvingd they keep to really win back customers and build their place in the market. >> first day on the job. it helps to have a good luck which from an experienced chief executive like this guy. >> all the tickets are punched. a gray background. started at 18. she worked her way up there and went to stanford.

let's give her every break in the world and hope she knocks it out of the park. >> the former chief executive knows a thing or two about leadership. we will hear a lot more from him coming up on plug next. another chief executive shares his secrets on getting ahead. as we had to break, morning fog is rolling in over new york city. we sped it up. how cool is that? ♪

♪ >> this is "lunch money." i am adam johnson. asew business leaders are realistic as jack welch. group rockets, tenfold. the always outspoken ceo discusses how brian moynihan is doing, especially given the news this morning that the bank had its most profitable year since 2007. >> i think he has done a hell of a good job. nothing against him, but you know these guys in washington going to ebay as often as they can go. they're dipping in over there and dipping back again. jpmorgan i thought was done. an end to the

piggyback -- piggy bank attack. you do not think it is justified? >> the scale is wild. issues, alsothe high scale as well. >> you cannot fight the government. let's face it. they win. the game is over. they went. -- mber like this >> they repaid what they owe the government. >> that is the craziest in the world. him.brought the data to he threw it away. give me a break. it is crazy. >> what about all the bad mortgage loans? andling up that mortgages selling them to investors who did not know better. >> they did not know. come on.

he took a company swing at was google. >> google is doing the right thing taking swings. when a company has got a it is time toion, spread its wings. it has got its own search now. what else can we do with this money and not sit on it. >> like microsoft? >> i do not want to criticize microsoft. i want to talk about google. the fact this company keeps going after new stuff in different segments is a big deal. a great idea. >> we need to talk about other companies. we could name a bunch of them because they're not doing what google is doing. some people out there are tired of hearing ceo after ceo complain about in action in washington and the white house. the bottom line is they are not taking risks or spending the cash piling up. they are not investing in or hiring people. >> the other point --

>> you hire people and pay people wages and you create demand. >> google is in part of that in silicon valley, when you have green days and you take a week that.d free this and they have got the world by the tail. most of us are out here, i have got 50 or 60 in every company. percent,inding out one two percent growth, in a crappy economy, fighting to get a little cash flow. they are loaded. they would be criminals not to take some of the enormous cash flow they have and go spend it. be private equity portfolio companies -- what about microsoft? what about apple? the reason karl is in a war with apple is because apple has got 160 billion dollars. >> he wants dividends.

>>) a company has got to make a choice. we have got a cat -- cash, and what do we do with it? ,itting skimpy returns on cash do we invest in the business, do we make acquisitions? >> do not let them burn a hole in your pocket. you do not. >> do they run the risk if they do not do this of becoming the next hp? >> there is no question. you cannot say that about microsoft in terms of their budget. they are spending a crazy amount of money. >> they are doing great internally. should they be on the acquisition trail? grow.fits grownoft, profits have pretty nicely. >> if google can make it work --

>> we do not know these acquisitions. they will be lost in the rounds. the nice thing about google, i always say, when you are in this position, there is no chance of you getting ahead if you stay. fact has this position, the juiciest is edition you could have, a dominant is edition, tons of cash. swing at it. when it comes to jobs and minimum ways -- wage, there needs to be about between free- market and innovation. >> government intervention is by definition disruptive. it is not a free market. it messes things up. on the other hand, there are it helps thesaying economy by giving more money to people to spend. debatet getting into the about who is right.

cannot totally disrupt. >> you want to get rid of the minimum wage altogether? >> i am for minimum wage and gradually increasing it. ceo.other influential his thoughts on leadership and who should succeed him at aig. that is next. plus, sir martin saurav, the head of the world's big is at form that firm. -- biggest ad firm. ♪

>> in career today, we focus on ceo's say -- what you need to get ahead. we ask the readers what they think got them to the top. the largest advertising agency, we ask what has been the secret to his success. difference, if you found something and noticed the man having a baby, not physically, but giving birth to an idea and you start something from scratch as we did 28 years ago, it is very much personal.

my dad made a reputation for himself. shouldsay nowadays you fish around for opportunity. he said, stick with the company you like and enjoy an industry ,ou like and when you are ready go off and do something on your own. do what you enjoy and do not have the objective of making money. it does not work that way. >> lack of consistency, you could apply that principle to marketing or campaigning or corporate strategy. if you can go deep, as opposed to broad and be superficial, i think that is very important. advice. betty also spoke with the aig ceo and he told her he answers every single employee e-mail. she asks him how he finds the time. >> you do not put it off.

a simple thank you is important. . make sure they know e-mails are actually easier to do. in the old days, used to get letters and notes and i would handwrite on the note, saying thank you so they knew it was whong from may, anybody sent me a note or letter, i very handwrite "thank you much up the good work. -- much, keep up the good work." not have long drawnout statements, but enough to be able to acknowledge what the person said and if nothing more, a thank you note. >> what helps you get employee more out up? >> my mother told me, respect the people you work with and do not take yourself

too seriously in life. do not think you are so important. at the end of the day, you will not be that important once the job goes away and you're are just a human being like everybody else. on toned early -- early respect the people. the people of aig had been through hell. they were being criticized and vilified in the press every day. people were afraid. >> there were death threats. >> they were afraid to have aig on their badges and so on. my job was to let them know i would work for them and that i would protect them and we would get this vision worked out and we would make this company viable again, working together. that is what they wanted to hear, to make sure people could get a vision of where you want to take them, to make sure you show respect for them, and keep people from attacking them. stay? long will he >> i told them i would stay if my health pose -- holds up, that

i am prepared and we are going through a plan. i could sign the 10k the first quarter of 2015. everything seems to be ok and they are ready for the next leader to come in, i'm prepared to step down. i will be close to 71 years old then. >> are you interested in moving on to another job? or will you go back to your vineyard and enjoy good life there? >> i am feeling pretty good. to the extent there is a challenge i could enjoy doing, here or someplace else, i am prepared. i am prepared to spend a lot more time with my vineyard, and i only make about 5000 bottles of wine a year. it is not like it is a business. i could have a lot of time during wine tastings to new york and other parts of the country. >> it sounds fun.

tomorrow, we will hear from the founder of toms shoes. all week, we are featuring battery -- betty liu's interviews with leaders. amazon. it avoided going union but that could change tonight. we will tell you how 30 people could have a very dramatic impact on the world's largest online retailer. that is next. plus, going global. we will hear from a ceo coming up in sports. as we go to break, serena a six-16-2 win. it was hot. 106 degrees fahrenheit. that is hard work on that blue court.

♪ >> it is 26 minutes past the hour. we are on the markets. let's get caught up on whether stocks are trading today. the s&p 500, a race for this young year. up after world bank raised global growth forecasts. america earnings beat forecasts. more on that in a second. let's take a look at a couple individual movers. has contacted at least two private equity firms to gauge sales impact. pressure to be taken private after losing money for the fourth straight quarter. i mentioned bank of america. it posts fourth-quarter profits nearly twice as high as analyst

estimated. bank of america was able to overcome complaints tied to foreclosures and shoddy home loans, many from the takeover of the countrywide financial five years ago. more "lunch money" is your way next. ♪

♪ >> this is "lunch money." onare also streaming live your tablet and smartphone. i am adam johnson. today's moving picture is where the video is the story. a shoe factory in china, killing at least 16 people. the blaze was the latest in a series of deadly industrial act -- accidents in the country. need a reports that the owners of the factory were taken into custody. heavy rain and flooding and mudslides have less residents in southeastern brazil without power or water. a state of emergency was cleared after a river overflowed and forced hundreds to evacuate. rescuers are still trying to

reach others as dams worst. took weeks, but the russian ship stuck finally reached port. freeddays after he was from the ice, the ship was tracked -- trapped. --zon.com normally make makes headlines for, shing big things. the for filament centers are massive. multiple football fields long. volume and staffing surged during the holidays. jeff bezos made a splash showed off thee package delivery drones amazon has been working on. stocks continuing to hit records even as margins are richer -- razor thin. what you do not hear about very often, labor problems. 30 equipmentp of technicians will vote on whether to form a union.

>> they would be joining the international association and aerospace workers, if they vote to join the union. we are talking about 30 workers voting and being affected at a 1500 person distribution center out of a company that has at least 88,000 employees. that was the latest number at the end of 2012. >> employee dissatisfaction in amazon may be news to us, but not so overseas. using -- unionize workers have gone on strike several times last year. they are demanding higher pay and other benefits. even sayrkers demonstrations outside of amazon'seattle headquarters in december, american trade union reps even joined them in solidarity. >> what amazon is doing is race to themerican roadshow to the consonants, to germany, and they are trying it out on german brothers and sisters. we are here to say we support

german brothers and sisters. they came all the way to germany to come to these corporate headful -- headquarters and say, they will not put up with it. >> amazon should treat workers fair and with respect in every country. >> right. our am here to support american brothers and sisters in their fight, and to get moral support and show the market -- marketers they are not alone in their fight. >> the vast majority of workers in that little town will not participate in tonight's vote, nor will they be covered by the union if the vote goes through. there are more than 1000 pickers and packers the guys who move product -- boxes. to give you an idea of what it caught upory johnson with one of them right before the holiday season. >> the job is simple. you go around the customer orders that pop up on the scanner screen and pull it from the bin and after you do that,

you scan the item and send it. >> you are looking for 612, c 211. c is probably the third row up. and right there. >> yes. all kinds of items. >> it is a cable with a television or something. -- right next to some kind of vitamin c supplement. next to sunglasses. cups, next next two to baseball caps. does this computer know where you are in the building e could he be running from one and to the next? >> it sometimes sends you from one to the next, but the location to give you is the one the scanner will know you are at. >> in other words, it is feeding you things to pick somewhat near your current location. >> correct. i picked until the whole tote is

full and then i put it on the conveyor to send. new people come in, temporary workers, what is the first thing you have got to get them used to? quested of things. one is the amount of physical labor. i tell them it is very physical for about your first week and then it becomes routine. the other thing is navigating throughout the building. you just have to remember it starts low to high and low to high. >> in terms of your work, this seems grueling. you're going to school, a full- time picker and student, is that exhausting? job.love my probably my favorite job so far because i get to be so active and walk around all day. it makes the time go by quickly and it gives me an idea of what to give other people for the holiday season. >> he likes working at amazon. the vote is happening tonight. american idol is back.

do not expect the usual. we will tell you about changes coming up next. and the nba's going global. the ceo tells us. ♪

"lunch money." tonight, american idol kicks off its 13th season on fox but do not expected to be the same franchise it once was. they have been tinkering with the show trying to improve ratings. they brought back one judge from last season, keith urban, join lopez and a new judge. last season, ratings nosedive

because viewers were fleeting the cat fighting. >> it still commands the second- highest ad rate among primetime shows. even as it lost viewers, 10 million over the past few years. competitions from other shows. >> i cap -- i stopped watching after kelly clarkson. >> they changed the whole industry. >> it did. it was a live talent competition. they debuted in the summer when networks used to air reruns. you now have this event television you could not dvr or tape. you had to participate and call in to vote for your favorite star and singer. they had product placement before there was really product placement. >> it is true. this show has launched a bunch of careers.

jennifer hudson went on to win an oscar. carrie underwood and kelly clarkson became multiplatinum very clarkson made anti--- impression on alan krueger. qwest kelly clarkson was one of the winners. a negative star. she sang at the inauguration. >> she did. i may have stepped on her down. >> way too many with alan. >> i love that. before american idol, there was mtv's real world, a show that was a kind here in reality television. times have changed in the business. here is the executive producer and cocreator. >> we did research not long ago and the premise was you put seven diverse individuals together and it was unique we had a gay guy living with a black woman from the city and a southern woman very today,

diversity is very different. for most young people, it is whether you like to party, whether you hook up to much, not the color of your skin or who you sleep with. it is a very different generation. >> i hope you got some who like to party and hook up to much. then i will watch. >> we of course have that. >> this is part of the issue. viewers like matt are accustomed to seeing a lot more on tv. in a certain sense, how do you keep upping the ante? class we did something different this season. "real world explosion." it seems like it is a normal real world, seven attractive young people move in together and start hooking up, and then we surprise four weeks in when heref their exes show up at >> what do you think of a scripted drama? come back into fashion. >> reality tv seemed to rule the airwaves for decades.

>> i think it is as good as it is because of reality tv. when that exploded, particularly in broadcast television, in the new millennium, i think scripted folks realize they would have to work a lot harder. for a number of years, american idol and amazing race. these shows were dominating. you had scripted people think a little more in interesting ways. you have shows like "lost." has been goody tv for folks who make scripted television. we have bedded scripted tv because of reality tv. >> let's see what else is on. we are talking nba going global. just ask the ceo. we will hear about that. plus, the retired nba star is on a global mission himself, but it is not basketball. ♪

>> congratulations for winning the 2013 championship. the president thanked them for helping people off court as well. before the event, they stopped by a nearby military hospital to visit wounded service members. the president said it is an example of charitable work row athletes do year-round. the the brooklyn nets and atlanta hawks. an away game tomorrow in london. tickets, they are sold out. gone in about four hours. we had a chance to catch up with the ceo and we asked him about going global. >> we are excited to be here. been here in london three out of the last seven years. we look at the market as being our home away from home.

we love london and have been pretty successful here. we hope to have success tonight. >> in terms of money and building a global franchise? >> i do not look at it from a business perspective. i look at it if we can build a brand, can we build a halo around the team that speaks to audiences. that is our goal. global -- weirst brooklyn, 100 50 nationalities. aspire to be global. we take it one step at a time. towill ultimately be able monetize it. think about our naming rights with our golding. a big bank here from the u.k., that was a start for us and gave us an incredible halo effect. we have been able to attract other global partners around the world and here in the u.k.. it takes time to evolve the business side. you think of the metropolitan

area. nine pro sports teams. very crowded and cluttered in some respects. how do you create a point of difference? we have chosen the global positioning as our point of difference. it is starting to resonate. i am a firm believer of, the more you tell people, the more they believe it. >> talk about global positioning. he played in china and london this week. is it far more important to be playing in china, where there are so many players? >> we have three core mod -- markets. everyone needs to be in china. and emerging market for the nba and and u.k., barclays is a big partner and we work with other major companies in town. those are the three markets we concentrate on. we advocate play here. moving forward, i am sure there will be other markets we consider. those of the ones we go after right now. play million people basketball in china, one reason why they consider it a core market. the guy responsible is retired

from the nba but is still making a big difference in his home country. stephen engle step down with the star turned social worker. >> we will continue to put our of kidsn support education, particularly in western china. create another game [indiscernible] >> you bring some of your former nba colleagues over? >> yes. we try to do that. we had success in beijing last year, or peace. .lso, others [indiscernible] guys like those play against the national team. >> this will not be a dennis rodman north korea thing? that is completely different. >> no comment about that. [laughter]

>> you are here at the conference and that leads to the next question about fundraising. have you found that a challenge? you are probably the most wreck sizable not only overseas but in china. how was fundraising helped by that and what are the challenges? today, facing a challenge. transparency is one of the biggest issues here. you have your supporter of where the money goes. a clear message to make sure every candidate donate and spend in the right place. >> how much is needed on a yearly basis to do the kinds of programs doing the social good every year? theou really need to get country more involved in donating to charity? 45the first year, we had schools. last year, we had 79. i'm expecting this year we will have another 10 schools joining us. the budget, it will be rife a

little bit. the school, i do not know how many players will come, asking to help build a school, but in the last few years, we spent somewhere around $1.5 million a year per year for those projects. is not too big numbers. no pressure. we think playing yell manning is a challenge? mystery meat, competitive ice climbing in colorado. ♪

approaching 56 past the hour. bloomberg television is on the markets. let's take a look at where stocks are trading midway through the trading day. we are seeing a rally here that has brought the s&p 500 back to unchanged for the year. we had empire manufacturing numbers out in new york with

that are than estimated today, as well as the world bank waging global growth forecast. that has been repelling stocks higher. we are keeping an ion treasuries because as the news has been propelling, stock fires have been propelling yield fire for the second straight day. now yielding 2.89%. brought back to unchanged for the early year today. one question a lot of investors are wondering about, can the u.s. continue this economic growth to support the climb we have seen in the markets? boston, economist and investment strategist john. i mentioned the world bank raising forecasts for not just the u.s. but globally. you have a gdp forecast for the u.s. that is above not just the world bank, but consensus. your will -- looking for three

percent growth this year. what will be the growth driver here in 2014? time we havefirst had above for at least five or six years. we do not do these things lightly. what i think is driving that, mostly, is the fact the bigrnment sector has been a drag on growth since the middle of 2009. this year, that will lift. state and local governments are starting to add workers and that will help. and that the federal level, the fourth quarter looks awful. we will have a big drag from the government shutdown. just getting rid of the drag from the government sector gets you from 2.5% growth, what we got last year, to well over three percent this year. that does not even include the impact of the wealth effect we had from the rising stock market , that will help consumers and probably capital spending as well. three percent is a pretty fair target. questions curious, the budget

bill, the spending bill, being debated right now, it includes cuts. even given the cuts, you think we will still see the pickup in hiring and spending. >> yes. , younk that ends up being do not get any more drag. it will not be a boost to growth. government spending will not increase a lot between this year and next year on a gdp basis. because we have had such a big physical drag after last year, the big tax increases, the sequester, the government shutdown and all of those things were a big drag on growth. things like the unemployment benefits not getting extended, they were part of our case. if you look at the bill passed yesterday and is likely to be passed again in a couple of days, that is more of our case. you get flat spending. in the environment we are in, not getting it right from the government is actually a plus. >> very quickly here, the consensus seems to have shifted

now that the fed, even with tapering, will not be meaningfully slowing the growth of the economy. is that your view as well? of a taper, we got that decision in mid december. since then, the markets become come will with us. as long as they continue to do the 10 billion taper per reading until the end of year, the markets are fine with it. it is not likely to have a big impact on the economy either. if we could get through this year with the fed sticking to his plan, which means the economy set -- accelerates a bit but not too much, as long as economic growth could pick up here, that is good for stocks. we are looking at a 15% gain in the stock market this year. >> it sounds good. thank you so much. we will be on the markets again in 30 minutes. "bloomberg wes" starts next. ♪

>> live from pier three in san francisco, this is "bloomberg west." i am emily chang.