weak tiesh money," together the best stories, areas, and video in business news. here is what we have. in company, sale at best buy. shares plunge on a rough holiday season. in career, the man behind do good tom'ss shoes. in nation, the magic touch. to its dream team of pitchman. our casino segment. artificial intelligence

coming to facebook. what everyone is talking about, awards season in hollywood. multimillion dollar marketing. fashion police, high stakes. all for a gold statue. the oscars, march 2. we got the nominees this morning. >> best performance by an actor in a supporting role. bradley cooper and "american hustle." "the wolf of wall street." jerrod l in "dallas buyer's club." >> jennifer lawrence in "american hustle." best performance by an actress in a leading role, amy adams, kate blanchett, sandra bullock, judi dench. >> best performance by an actor

in a leading role, christian bale and "american hustle." matthew dicaprio, mcconaughey. "her,"rican hustle's," "12 years a slave." >> if anyone knows how to win an oscar, harvey weinstein. behind the brother team the weinstein company. and won for "king's speech" "silver linings playbook." many say "mandela" was snubbed. jon erlichman asked him how he felt about the chances. >> the awards are a way of getting publicity to the movies that deserve it. tomorrow night, comic book movies, "the hunger games," really good.

will flock to that. i understand that. it is a way of putting the light on films that maybe are not as commercial as they say. i am telling you, i would put this movie against any other movie, "the avengers," anything. tomoviemakers hoping to get the oscars might want to start by getting a spot at the sundance film festival might open today in utah. judge for years and is the director at the international filmmakers project. a stunning why it is hard to be -- explaining why it is hard to be a film. 7000 entertainment professionals attend the festival. there is a lot of business, even though the return on the dollar is not the same as it used to be. there are these -- there is a new study that came out that said 2% of the amount invested in these films is recouped.

maybe thean idea that average but it is $750,000 -- average budget is $750,000, too high. 400,000 films were submitted, $3 billion. recovered? >> a very tough business, a couple films get great deals and really recoup the budget. you get fox searchlight and focus buying these films. to utah, can i get that is ok. youtube is teaming up with sundance, they will stream 15 shorts and present a prize to the one that gets the most number of views. the first year u2 has done this with sundance. log on. for health campaign care has gotten new recruits. we will tell you who they are.

scorching heat forces the australian open to stop playing, temperatures reached 109 degrees fahrenheit before matches were suspended. players called the temperatures inhumane and dangerous. 109 degrees? yeah, i agree. ♪

bang" ons lunch bloomberg television. we are streaming live on bloomberg.com. ompany, competition is

brutal between big-box stores and online stores, search engines, all the players are stumbling over each other for that last dollar. during the holidays, best buy was stumbling. it had been staging a turnaround that posted a drop of the holiday shopping season, it in-store and online. shares plunged on the news. i spoke with the ceo, hubert morning.the phone this he said the holiday it was a speed not and that same store sales would have been if not for price competition. he said sales would be positive again starting in february. the biggest challenge comes from amazon and price matching. thinn has razor margins, you can buy your stuff on the couch.

amazon had a challenge last night. 27 technicians at a assessment center in delaware voted against forming a union. >> they try to organize, the vote was 29-6 against unionizing. >> amazon say give us another andce and renegotiated managed to avoid a union, that would have been a foot in the door. been amazon'shave first u.s. union. another retail giant with employee revolts, walmart. the government is getting involved. the national labor relations board has filed a complaint that walmart illegally retaliated against protesting workers. the world's largest retailer threaten, disciplined, and hired employees who took part in strikes and protests at 34 stores in 13 states over the years.o a walmart spokesperson said "associates were not terminated for participating in union

activity. terminations occurred because of violations of policy, including attendance." there is some firing going on at yahoo!, a lot to talk about. burris a meyer has fired her chief operating officer, according to people familiar with the matter. energy de castro -- henrique de castro worked with mayer at google. to boost brought in advertising, page views are up, advertising is not. >> she made the announcement in a memo. therer person had -- said had been friction between the executives for at least six months. sa mayereyer -- maris has been working to revamp yahoo! to compete with google. brendan greeley writes about technology. he talks on "surveillance." not surprised they are

having trouble, everybody likes marissa mayer. job with ag a good company -- i am not sure what the company does. i am not sure what yahoo! is for. it is hard to explain how they are going to make money other than as a media company. she has been hiring journalists, it looks like one strategy is to attempt to become a real news organization. we know that that is kind of -- that is really hard to make money off of news. they have all these disparate properties, it is not clear how they come together. they are chasing page views. view advertising rates decline or fail to rise with me, it is not clear what -- how the company will make money? bloomberg terminal calls yahoo! "a global internet media company." >> that means anything and everything. time question is how much

does she have, when does the pressure start to ratchet up, these can go on forever. they try strategy after strategy, window somebody push her out the door? or reward her. >> i don't know. i think they are going to have trouble before any other internet companies do. facebook has got a wild to go, facebook has a coherent offering, yahoo! does not. >> scarlet, here is the meyer effect. yahoo down. lost in the woods. 15-40. factor, happy, looksare like venture capitalists are feeling the heat on hand. they work with companies that compete against yahoo!. here is temperature -- here is tim draper. >> she has turned yahoo! around. we had a couple companies, glam takingemom were

advantage of the implosion of yahoo!, she came along and got people back to work at yahoo!. yahoo! has had a breath of fresh air. in terms of getting the right talent and getting people back to work, they had people working at home. she brought him all that, which is a good idea. you work harder if you see people every day. >> what is the company to do with no coo? she has got to find the right person, she thought he was the guy. has a big opportunity, she should look at this as an opportunity. yahoo! will continue to run without a coo. they have plenty of management, maybe too much. she is so far doing a beautiful job. bigou sound like a supporter of hers. nonetheless, a lot of people have been frustrated we have not seen more out of yahoo!, the big

question is are they ever really going to be able to compete with google? >> i don't know. it is going to be a long struggle for yahoo!. a lot of companies get to be this size and then lose their edge. it is very difficult to come back from. that is what i take advantage of indy venture capital business, we fund startups that come and grab markets with new technology. towhat does a startup need do to take advantage of yahoo!' as witnesses? >> i know what glenn is doing,-- what glam is doing, they are hiring yahoo! salespeople. >> yahoo! salespeople are not doing so well. the coo got fired. >> they hire yahoo! salespeople and have better jobs at glam, they have something more to sell. >> you don't think she has the right product is that the bottom

line? >> she has to do what she has been doing, acquiring new technologies. world, thingsogy change quickly. she has to go out and grab more. >> more market share. >> more technologies, she has a good base of salespeople and infrastructure and all that. she does not have the best technology anymore, she needs to go out and buy interesting companies that made it will take yahoo! to the next level. >> that next level? make! will still have to money and advertising. yahoo!'s share of the digital ad to numeral shrink five percent in 2015 from five point eight percent last year. google and facebook may expand their shares from 42% and 9%. company to create one. the founder of times shares

tells us how he created his business. plus, words of wisdom from sallie krawcheck. failure and how to bounce back gracefully. china's new richest man. ncentman of te holdings, it invested in a chinese logistics company to boost e-commerce. that gave a big boost to pony's net worth. congratulations, sir. ♪

courier, what makes great leaders? our betty liu is out with a new book. she asked some of the biggest leaders in business where they

think god then to the top. all this week on the thing" -- tot they think got them the top. all this week, we are hearing from them. started hisie business with just $5,000. what tells our customers is most important, giving as much as it is running our business. look for new opportunities to grow our business and meet new people, i never get complacent. i spent about 200 days a year on the road. which my wife does not love. it allows me to understand what is going on in the markets. i try to sleep about eight hours a night. on the weekends, 10 hours a night, i know that is not typical for a ceo. tired, i am am

worthless. the biggest mistake people make analyze things so much. i call it paralysis by analysis. you have got to keep taking risks and trying new things, that is the only way you can continue to be a market leader. one skill that every leader needs is to be a great listener. if you are not a good listener, you are never going to be able to lead. have as much fun as possible. ime gets shorter and shorter, am only 37 years old, i still feel like i do not have the flexibility and freedom i had at 25 years old. you have total age, make a lot of quick decisions. it runs our business day today. he is good at making quick decisions, that is important. that is a real skill that i do not have in my partner does.

>> betty spoke with sallie owner of 85he broad's, which advocates for more women in the c suite. betty asked her about her own career. >> is what i am doing going to make an impact? had,ery job i have research analyst, being involved oads, running merrill lynch. -- it felt like i and my team could add value. we were actually doing something that matter. >> you felt that way as well. not just doing 85 broads, when you came into turnaround smith barney, merrill lynch, you felt you needed to make an effect. what are the lessons you learned? trite, sounds very

turnarounds are hard and do not have an overnight. you have a business moving in a direction -- >> you have your own internal compass. >> your competitors are not standing by with their arms folded and saying let's just stop until those guys turnaround. ahead.e moving it is not just you have to fix what is broken, you need to leapfrog ahead, that is a very big risk one is taking. at smith do that barney and merrill lynch. most turnarounds fail. >> what would you say to your 25-year-old self? hug, in mygive her a 20's i did not know what i wanted to do. i was an investment banking. parts of it made sense. i enjoyed parts of it. parts of it -- my skills were set for. i really was lost. i was really lost until about one month he for i was 30 years

old. it hit me like a bolt that i needed to be an equity research analyst. thought ihat point, i cannot find my place. arehat is what your 20's for, you are allowed to figure things out for a while till you grow up. >> i always give that message to young people, to my kids, what am i going to do? you do not have to know, keep a lot of options open, a lot of skills, do business the right way and things will work out. next week, week and more from betty liu's interviews with global leaders. tomorrow's servers capital -- nardelli. healthcare.gov as to its dream team. obama's new pitchman. andbook just tired artificial intelligence team. we take you inside the lab on

innovation. ♪ is 26 minutes after the hour, bloomberg is "on the markets here i am julie hyman. let's get you caught up on where stocks are trading. pull back after the s&p 500 closed at a record yesterday. reports,t earnings let's talk about some of them. citigroup, third-largest inc. in the u.s. missed top and bottom line fourth-quarter estimates. the ceo has been trying to cut costs and boost revenues as forex markets come under pressure. that stock is lower. goldman sachs trading a little

lower, posted record underwriting revenues in the fourth quarter, and earnings beat as trading fell to the lowest level in over a decade. more "on the markets" in 30 minutes. more "lunch money" is next.

money" on "lunch bloomberg television. streaming live on your tablet and your smartphone, i am adam johnson. moving pictures, the video is the story. rain in indonesia triggered flash floods and landslides on a northern ireland. 40,000 people were forced to evacuated as rivers wash away houses and cars. at least 13 people have been killed. protesters in thailand marched shutan that, vowing to down february elections. demonstrators trying to force the prime minister to resign. dangerousijing hits

levels, major highways were closed and residents were warned to avoid outdoor activities. shot to on air quality the upper level. the smog will last until tomorrow morning. and nation, president obama has recruited celebrities like adam levine, even olivia wilde, trying to promote obamacare. now he is adding to his team. magic johnson, you can get the health insurance you need. go online to the health insurance marketplace. do comparisons of brand name plans and choose the one that is right for you. find out how you can get lower monthly payments as part of the health care law. magic, it isd like real. protect your health, enroll today. magic johnson is living proof of the value of early medical

dissection. he was infected by hiv in 1991, the virus that causes aids, he never contracted aids because he caught it early. another player giving a helping hand, former miami heat center alonzo mourning. i i felt invincible, when went for my physical, i had a serious kidney disease, it was caught and time and i was in short -- insured. you can get affordable health healthe through the new insurance marketplace, compare brand name plans and get lower monthly payments as part of the health care law. enroll today so you can stay in the game. the administration's purpose, enroll more young people. data shows that 18-year-olds to 34-year-olds made up only 24% of enrollees in the first three months, below the level the white house wants to reach by

march 31. the online campaign is kicking off today and will include less prominent personalities like a mixed martial arts fighter and a nomedienne that hosts "drunke kitchen." not many rolling the dice in atlantic city, like poker city is plummeting. does it pay to be a high roller? casinos are rolling out cash, a special report is coming up next. some daredevils in the desert. adventure seekers in the dakar rally, an offshoot of the race in south america. in a 1900unes, mud kalama their challenge. kilometer challenge. it starts in argentina and ends in chile. incredible. ♪

this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and smartphone. the big business of gambling. new jersey legalized online

gambling last month. the business is eating into atlantic city's casinos. >> the new motto is "do ac." our chart is called don't ac. fewer people are gambling, the total casino wins, revenue. inthe peak, $5.2 billion 2006 when they opened. they started taking away market share. it has been a downhill drop ever since. >> now relying on internet gambling to make up for the drop in revenue. a gaming industry analyst says it is still early in the game. the problems are obvious. >> it is important to keep in mind that we are in any one of a one of a long game. they are moving to online is likethe rollout

obamacare, people cannot sign up, with the deck is stacked -- >> why are bankers and not participating with casino owners? >> they are not sure who is doing the gambling. not want as 13-year-old playing blackjack. r.o.k.,en master card on the other side are bank of america and pnc, they are aga inst it. the economy is dependent on atlantic city. >> this is another black eye for chris christie, he had a five-year plan to turn around ac, they are getting into year four but are not seeing the tax revenue they expected and now the online revenue. who knows. >> 1/10 of what they anticipated. >> is this a warning to other

states reforming gambling loss. marilyn said we cannot let this said weryland lobbyists cannot let this money to go to other states. >> pennsylvania is a good example. on the online side, the problem gets back to politics. what the politicians put into the forecast is too rosy. >> ever wonder what it is like to be a high roller? meet don johnson. to40 million gamblers flock the vegas strip each year. most people only get a peek at las vegas. highroller be a willing to spend $100,000 a hand. someone like don johnson. he is a blackjack player who lives the life of a rockstar. club,e walks into a

celebrities pay their respects. the scene is engineered by the casinos, they pick up the tab. >> whatever you want? >> they will try and give him what he wants. what it takes to dazzle everybody today is a hundred times more ambitious, complex, and challenging than before. wynn is always inventing citations for gamblers. from nightclubs to shows to celebrity restaurants. >> we have raised the expectations. a good thing. get theplayers like don best tables, the most expensive bars. >> catering to high and the players starts before they think

about coming here. they will bring a player from the east coast to las vegas, the mgm property has a mansion. 29 villas. >> you get to stay for free? >> nothing is free, it is factored into the game. >> a little secret. >> the ceo of mgm owns 10 casinos, don gets perks at every one of them. spend $1000 and will win $200. i can induce you to come out here. i give you $80 worth of stuff. spent, the money more money casinos make. >> the whale is going to lose $200,000. give himbe willing to $80,000 worth of stuff, you cannot eat that much caviar, even if i fly you from point a to point b. the margin on the high end is

higher. >> why casinos will do just about anything to keep whales playing. the player, secrets of a vegas whale, that davies january 21 at 9:00 p.m. facebook has just hired a head of artificial intelligence. we will tell you what they want to do with a.i. watsonan behind ibm's explains why a computer cannot last. next and innovation. merkel'shing on angela office in berlin. protesting a free trade deal between europe and the u.s.. is concernedfarmer that american imports will hurt their business. ♪

onthis is "lunch money" bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. in innovation, the man behind dyson vacuums says invention is unpredictable. sometimes even agonizing. here he is on charlie rose. devised, itnot be is a process of discovery and accident, happenstance. it is a wonderful journey. it is agony. whole interview with sir james dyson on charlie rose at 8:00 p.m. and 10:00 p.m.

here on bloomberg television. her number when artificial intelligence was the stuff of movies? not anymore. it has gone mainstream. artificial intelligence still has a sci-fi ring. it is already behind a lot of our digital lives. from netflix's movie recommendation to spam filtering. >> almost everything you do on facebook or google is -- there is an ai system behind it. has been studying artificial intelligence for three decades. he is going to be facebook's first head of artificial intelligence. futurepany's bet on the and what it plans to do with all the data it has been collecting. until now, facebook was focused on infrastructure. now that they are established,

the problem is to look forward five years or 15 years. >> there has been a talent grab. play an important role in the way we interact with computers. race between companies to establish themselves in this field. >> recommendation engines are step in the field is using ai to improve a computer's ability to see and hear. >> we feed the image to a webcam, we see that in a network. it tells us what category of object it sees. >> loafer. >> close enough. >> how would something like that apply to my facebook experience in the future? >> upload pictures on facebook or instagram, the system will identify objects in your picture, that makes it easier to search. it allows you to organize pictures in a way that similar pictures are shown nearby. ofsensing abilities, an idea

what you want before you indicate it. they intend to use it for another cool application, making money. sam grobart, bloomberg, new york. >> no one knows quite as much about ai as david, lead researcher behind ibm's watson. the computer that beat people at "jeopardy." one of the biggest challenges in ai is how to get computers to understand language. computers go from data jockeys to thought partners, not just about moving bits, it is about understanding what they say. what is the meaning? ultimately, meaning it is going to trump data. there is too much out there, how do i get an understanding? languaget comes to understanding, where are we? at the toddler stage, are we at the adult stage? we have seen things go from watson to siri, there is a long

way to go. >> it is not an even road. when we sit down and think is it a first grade, toddler, it is not like that. some things are extremely sophisticated, it would take a smart person hours or weeks to stitch together and figure out. other areas, it will seem really stupid. computers process the data very differently than humans do. one of the interesting things going forward is can we get more of a convergence, get humans and machines -- machines to think more like humans and process data and a similar way. that is a harder challenge, we are not there yet, a lot of work to do. >> did you see "her." >> sam saw it. >> i have seen it, yeah. it was great. it created a really thought-provoking and seemingly future withossible a computer that has a sense of

humor and understands what you are saying. >> possible? can get -- humans are the source of meaning. we are the source of what is funny, beautiful, elegant. computers can start to learn that come up to detect that meeting. they are not the source of that. for example, watson can detect a pun. it is not laughing at it, a can tell you it is a pond and that you should laugh. >> computers can definitely detect heat, hot temperatures and australia. chocolate does not stand a chance. mr. amy, look at this out in the sun. meat, look at this out in the sun. ♪

approaching 56 past the hour, bloomberg is "on the markets." i am julie hyman. let's look at where stocks are trading, a little bit of a pullback. it is green even as we watched on the nasdaq, just turned up .5 points, it was the leader

yesterday, earnings news have been pushing down the s&p and the tao. shares of cec entertainment surging to a new all-time high. the company's popular kids a restaurant chain chucky cheese, being bought by apollo. zynga shares down the most in to months, sterne agee risk consensus estimates. zyrent traffic trends for nga's key titles. distant memory, the polar vortex. there are some lasting negative effects from the record cold. alix steel joins us. alix is no fan of the cold. >> layers upon layers, you know who is also not a fan? cows.

all their energy goes to staying warm versus adding weight. farmers do not get enough yield, they do not get enough profit a big issue. it is so cold for the little cows. you feel a little bad. >> they will be eaten eventually. >> cattle prices have been going up regardless of the cold, this is the icing on the cake. the herd has been contracting for six years, last year's drought was destructive, grain prices were too high and they had to be slaughtered early. production is going to drop to a 20 year low, it is not easy to ramp up production on ical, it takes it three years to get to slaughter weight. >> they need sweaters. >> they do move them to a barn, but 4 degrees is hard to keep them warm. >> what is the bottom line for

me and my steak? >> the issue is, restaurants are going to be reticent to raise prices, which is their only defense in something like this. they may wind up offering smaller portions, no more 14 outs, maybe a 10 ounce. they might try to cut costs elsewhere on the menu. if you take a look at the fast food, mcdonald's is the largest buyer of beef in the u.s.. 14,000. withr king comes in second 7500 stores. that is a big problem for fast food restaurants that do not have a lot of pricing power ability. they can barely raise prices 3% a year. they can try and lock in prices, hedging is a popular strategy. reducers are going to charge them big fees to avoid hedging. >> at other times when we have seen beef costs take up, you see a chicken migration.

are we going to? ande have been seeing that continue to see it. you get a whole chicken, a town cost you $1.50. $3.46, a ham, $2.72. there is a rotation. the premium of beef to pork according to socgen is above its five-year average, a typically for companies. if you look at mcdonald's, split revenue for their beef and chicken. it is going to be a hard sell. >> interesting, poor, shivering cows. >> they will not be eaten. >>

live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm emily chang. our focus is on innovation, technology, and the future of business. a big shakeup at yahoo!. the coo joined in 2012. he is already out. this is a big surprise. >> an old colleague of marissa mayer. they worked together. it was a big higher. -- marissa mayer made it clear this