metadata that the nsa currently subject to court order was going to be transitioned out of the nsa and go to somewhere else, but he does not say where the someplace else is, and in fact he knocks down two of the obvious candidates, one being the telephone companies themselves, the second is some third party, either governmental or non-governmental, subject to lower standards of privacy than the nsa. >> you are going to preserve existing capabilities. is this tinkering on the margins? >> it is really. he wants to preserve the capability prison and evil telephone metadata program. bulk telephone metadata program. talk about the utility. he says we need that capability

in the government. he wants to modify slightly how it is achieved. he is not specific about how it is achieved.- it it is likely that when the deadline comes for free authorization at the end of march, they will not have resolved this and they will simply reauthorize. it will roll over into the next administration. detail, richard, stay with us. washington chief correspondent. you were telling us about what the tech companies want to get from the president in this speech. they have been concerned about their role in the collection of phone data. what does this do for their concerns, does it appease it? >> the fact that the president suggested that the u.s. gets it and changes are coming, that checks a box for companies. they think the knowledge that is a step forward.

this has been hurting their business, that is the case may have been making. the implication they have been handing over this information has had an impact, particularly overseas as these companies have been trying to get into cloud computing in europe. the details here, as richard pointed out, will not satisfy a lot of companies. telephone companies do not want the application to store this data. the president has left that open as a possibility, acknowledging it as problematic. a third-party option still might be the clearest solution, that would satisfy the phone companies, it would put the onus on them. pleasedpanies will be he addressed concerns about foreigners, they will get greater ability to disclose information about cooperation with the government, that is included. details.know all the does this go far enough to address concerns they have had that this is hurting business overseas? i think the jury is out.

not a lot of specifics here. chief washington correspondent. thank you for drawing the distinctions. >> back to our contributor and editor richard falkenrath, and president said today make the u.s. -- did anything the make the u.s. less safe? >> the damage was done with snowden. there are a number of reforms. the one issue is when they query the telephones, do they go 2 or 3 out. i call garlic, scarlet calls ark calls someone else. that is three hops. >> does this change the debate americans are having over privacy versus the need for safety? >> good question.

among the people who really follow this closely, they will have a couple key concepts to argue about. the general debate, the general public largely tuned out the speech. it was really complicated. >> procedural. intothink it defaults generalities. the specifics and complexities and provisions of law and the process, this is inside baseball among a small number of really specialist people and companies and think tanks and government. former officials. i think they will continue talking about it, it will be disconnected from the broader issues of american public policy. >> richard falkenrath, thank you so much. a former top homeland security advisor. >> interesting speech, 45 minutes, the president trying to lay out his case. it is now in the lab of congress. >> and no question and answer.

with you. work this was a first, thank you. this is "market makers," we are off on monday for martin luther king day. on tuesday, stephanie and erik in davos for the world economic forum, a week of big interviews. they begin with david rubenstein . alleged bank" is coming up next. -- lunch money is coming up next. ♪

money" on "lunch bloomberg television, streaming live on bloomberg.com, your tablet, and your smart phone. looking at apple's move to boost sales in china. the country's biggest mobile carrier begins selling access to millions of customers today. it took six years from -- for apple to get the go-ahead from chinese authorities. was it worth it? that greating is not and china, if you get in a subsidized phone, -- and unsubsidized phone, it could be $800. >> here's the apple juggernaut coming out of 2009, everything is great. i am on the street corner by the iphone store. where howard would comment say shut up and buy it. former apple ceo john school

he does not think pricing will be a problem. >> even at their premium pricing, they are going to sell and a lot of iphones. just in the first day since they announced it over one million orders have come in, china mobile is offering a free iphone with their highest data rate plan. former apple ceo thinks the current ceo, tim cook, is putting the company in a great place. >> apple sells high-quality products. they are in a great addition, tim cook has done a terrific job positioning them to make money not just on hardware, but it is starting to commoditize, to make money on the services. app store, itunes. even in china, is a terrific amount of usage of their services on the iphone, even though the market share of the iphone is relatively small. >> apple's stock is bouncing sculley hasy --

lots of company, like gamco's ceo. >> international expansion is a .ig part of the story greater china, taiwan, hong kong is significant. is thatthing here apple's marketshare has not receded. apple's market share has solidified and is poised to grow from here -- domestically and overseas. business week article of the year was sam grobart on three apple executives, they said they would not give up the high ground of an aspirational product. do you think india and china will pay up for an aspirational product? >> absolutely, the apple brand in china is still extremely strong and very much an aspirational product. this is a company that had near riots at their beijing and shanghai stores a couple years ago when new phones were

introduced. >> a couple years ago, that is key. >> scarlet, the apple brand is going to be very strong in china. there are subsidize phones available for heavy data users on china mobile. they will give you the phone for free. oftargeting a certain kind customer, when investors look at apple, do they see a growth stock or value stock? when you see someone bullish on apple, they point out how cheap it is. >> it is priced like intel, no growth. >> a value stock. 8.1% free cash flow yield, two percent dividend yield, ongoing execution of a $60 billion share buyback. earn priced -- they will about 45 dollars a share, priced for no growth. we think you are going to have double-digit growth this year, close to double-digit next year. the growth story is not that. -- not dead. >> not everyone is into apple.

the stock was recently downgraded on moral grounds. a 100 $50e sitting on billion in cash, their employees and asia are making less than many havears an hour, already committed suicide. in this country, you that christmas bonuses, performance bonuses, profit sharing, health care coverage. would never be able to get away in this country treating employees the way they do in asia, management would be thrown in jail. they would not be tolerated, they cannot abuse workers in this country so they are: where they can get away with it -- where they can get away with that. >> one company, a robotics startup has the very first. and by artificial intelligence. sam grobart looks at how it works. most of the time, when we

talk about robots and artificial intelligence, we tend to think about robots in the workplace or "terminator." we are not usually talking about toy cars. toy is exactly what a new is all about. developed by engineers out of carnegie mellon, it looks like one of those old radio controlled car sets you might play with while waiting for "the cosby show." advanced.way more your smart phone can work as a steering wheel, cool. more interesting, the same smartphone controls all the other cars on the track. they know where they are and where you are and are adapting a real-time. each race is different. we have seen artificial intelligence and video games. this takes a look that and brings it into the physical world. yournly can you outrun opponents, you can fire

imaginary weapons at them, hold down a button on your smart phone and watch the car in front of you come to a halt after you zap it with a virtual can. -- cannon. this is not chief, a starter kit runs you about $200. you can get a track and two cars. more cars are $70 a pop. it only works on ios devices right now, they say an android app is in the works. cars will use up their battery after 20 minutes of play. ai! the future is now. the future is kind of expensive. ceo of home depot and chrysler, bob nardelli shares lessons learned over the years. former new york giant tiki barber will tell us about his new business venture. that is next in career. in spain, ancient tradition

involving courses and fire. horsemen ride through bonfires on village streets, the ritual goes back hundreds of years. it is supposed to cleanse the horses of disease and bring good luck. hope it does not turn them into stake. ♪

career, what makes great leaders? betty liu has a new book, "work smarts." she has asked some of the biggest leaders in business what got them to the top. all week, we have been hearing from them. today, bob nardelli, ceo of chrysler and prior to that he ran home depot. currently, he is a senior

advisor at cerberus capital management. he shares his thoughts on lessons from his career. you have to learn different customs, some countries work on sundays. be thehat may not practice in the u.s., if you are serving that country, you have to be available. once you take on the responsibility as a ceo, the priority is doing the job. say they regret not making that decision sooner. i am not talking about a knee-jerk or cavalier reaction, by getting the facts and getting as informed as you can from as many constituents as possible. then making decisions. at chrysler, i would be told that is a big risk. my response was not taking risk is a bigger risk given situation.

we have to listen, learn before we can leave. i only wish i had the wisdom and nowexperience that i have 20 years ago. i think i would have been much more effective. i could have contributed more to the success of the business. i could have been a better partner with my staff. well, careers evolve over time. especially when you start as a pro football player. betty liu spoke with former new york giants running back tiki barber, he has got his own business. this is called thuzio, think of it as rent a pro, hang out with a pro athlete, use a little star power to close the deal. that he asked him how it started. >> a couple years ago over cigars, we found a need from a talent perspective and the customer perspective. to book talent you had to go through an agent.

we created a marketplace where e-commerce could take place. it has been fantastic, a lot of clients doing events that before around and not exist, pickup basketball games with stars. >> it was ad hoc. to systematizeay it. all these companies do events. >> people were trying to find you? >> if they had to find me, you had to know me personally or know my agent. it was not efficient. provides a marketplace where you can shop and see pricing. >> it must be really busy, tell me about what business is like before super bowl weekend. >> it is very busy. literally over 1000 talents are ready to engage with business customers, with consumers to make their super bowl experience is even more special.

they are doing everything from showing up at parties to playing flag football before hand, doing video greetings. >> who are the most popular athletes? >> joe montana is doing an event, bill sims, desmarais no. -- dan marino. allgoto guys who are converging on new york city, we have been able to book and to fill our clients' requests. >> how do you share profit? >> 20%. that is standard across the industry. done is what we have created more opportunities for our talent. more importantly, we have created access for companies and individuals who want to spice up whatever event they are trying to do. >> is a you personally, are you asking friends to participate? expertise in finding talent. you would think they are easy to get to.

took ast that easy, it a long time, we have over 1500 across theur site country. we do stuff in new york and also in california or texas. it does not matter where you are, it is a matter of having access. >> are football players in the most demand? >> right now, of course, people want to watch football and know what they are watching. if you have an opportunity to do a game watch with a player sit next to you and tell you what is going on, share a beverage or whatever. >> what are you booked for? things, we have an accounting firm we are doing a lot of business with. agreement with another organization, going to a game watch. there are a bunch of things. >> super bowl weekend? >> during the week, it is seven days in new york city.

we have a bunch of things lined up, including on radio row. i have a radio show as well, we converge on one location, this here it is at the sheraton on 58th street. radio from all across the country will be there talking about again. the celebrities will walk in between and pitch products. we have been able to source some of those products with our talents in the cap extra access. we had toe had tiki, get his picks. >> the four best teams. manning versus brady. one -- who dole you think will win? >> the patriots and seattle. it has changed a little bit. >> remember, all this weekend and next, more from the interviews with global leaders on how to get ahead. a few weeks left until nba

commissioner david stern is stacking down. the transition, coming up next. chuck e cheese gets a little boost. what will it do for mom and dad, how will they keep those guys happy? ♪ >> it is 26 minutes after the hour, bloomberg is "on the markets." let's take a look at where stocks are trading, a next market. people are looking at earnings, not necessarily liking what they see. stocks like ge, morgan stanley, intel, ubs, coming out and disappointing investors in various ways. a couple other movers for you, twitter is one of them, up. today news thatboost on staple necklace initiate coverage. that an analyst initiated coverage.

following then most since august after its parliamentary second-quarter results fell short of estimates. the company said its results were hurt by weak holiday sales. we will be back in 30 minutes. ♪ hi. i'm henry winkler.

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♪ ♪ >> this is lunch money on bloomberg television. we are streaming live on your tablet and smartphone and bloomberg.com. moving pictures, where the video is the story. antigovernment protesters in bangkok -- a grenade was thrown. dozens of protesters were injured. protesters want the prime minister to quit and they're calling for the february 2 elections to be postponed. with an 80 brush fires are burning across southern australia. winds and the blistering heat wave. square milesrs 81

and so intense it's trigger lightning -- it triggered owntning, creating its weather. the professor on gilligan's johnson -- heell joked that his character was smart enough to make a radio out of a coconut but could not fix a hole in a boat. huck e cheese -- c chance.ets another forlo will buy the chain $1.3 billion. you can see the spike on the far right side of the chart. the founder launched atari and said it will be good for the brand. e is still a very

powerful brand. a most no child has had a almosty party there -- no child has not had a birthday party there in the last 30 years. apollo is a good company. it is in good hands. they will do interesting things with it. >> like what? lot think that there is a of opportunity with the brand. apollo is -- there are a bunch of smart guys. >> what is the opportunity? what is the lost opportunity? what have they messed? what could they have done that they did not? >> i hate to climb into the details. it!uet! -- do >> [laughter] i think that kids like chuck e.

cheese a lot, but their parents do not. >> what? parents don't like it? no way! i had atunately headache for three days afterward. >> i have never darkened the door. what will i say? >> that is what you will see. semi-animated, big things. really bad pizza. >> i can't remember what we had when the kids were urchins. i used to pray that birthday parties would not be there. >> i have watched from the outside and that is enough. >> i have been in -- deep. >> that explains one of the recent tv spots. >> when i opened the first chuck cheese's, i did not just do it for the kids, i did it for

you. i wanted a place or you can bring your kids and then relax, feel safe, and let go. watch them have fun. they're going to grow up, just not today. not if i can help it. , trye thing that my work turning back the clock just a little bit. >> when i was running it, we always had it so that you could drink beer. >> i'll call. cohol.al >> that helps. >> they don't do that anymore. i would bring a little bit of that back. >> a little bit of old-fashioned entertainment. you are the guy who created atari, among other things. do you need to update the whole gaming side of the place as well? >> i think so. gaming for kids is -- kids today, with their

tablets and smartphones, they're more sophisticated in their game knowledge than ever before. >> they are more sophisticated in their game knowledge. it makes it more challenging for some of these product makers. >> you just have to match the competition. your competition is not the pizza parlor down the street. it is the tablets that they have in their home and the amount of the part oftion on everybody right now is tremendous. >> that is a good point. chuck is going to need some help. sales of declined seven of the last nine quarters. we will show you one of the most expensive tables in sin city. one-on-one with the owner of the new jersey nets. ♪

>> this is lunch money on bloomberg television. a streaming live on bloomberg.com, your tablet, your smart phone. wildcard -- we are going with high rollers -- vegas-style. these guys get all the perks. table at0 per ght the bellagio nightclub. trish regan it takes us behind the scenes. casino atm's loggia bellagio casino

nightclublusive hyde is one of the most expensive tables. part of its value is the view. 1200 water spraying robots, glass. $40 million. inside the club, the fountains are made of champagne. profitable club in vegas per square foot. the average table costs $8,000 per night. this 1, 200 $50,000. $250,000.e, the number of people who reserved the stable in 2013 -- two. that is out of control.

where casinos eager to get their hands on the high rollers? trish explained. >> if you are spending a couple million box at the casino, they want to give you everything they can, they want to keep you there. macau?his competing with >> macau has done incredibly well and has significantly surpassed vegas. as to the documentary is that it looks at the challenges that we faced year for the gaming industry over the course of the last several years. it is through the eyes of that particular player whom you saw. millioned to win $15 playing blackjack within the span of a few months. he did this in part because the casinos were vulnerable and they negotiated very good odds. >> i want to know how to do that. the operators of that hyde

nightclub are opening their own casino next fall. the perks will be even more outrageous. they will do private performances in intimate venues. it does not get any more vip than that. to see more about the life of a vegas whale, you have to watch trish's special report, "the player." i will be watching. the nba is going global. we will take you to london. nba commissioner david stern tells us about the plan once he steps down. ♪

onthis is lunch money bloomberg television. a streaming live on bloomberg.com, your tablet, your

smart phone. night itnba -- last went to london. a sold-out crowd. whether going global has worked. >> the brooklyn nets are on the road. this is no ordinary away game. the nets are facing off against the hawks. it is a home game for atlanta -- only it is in london. it is the national basketball association's eighth ever regular season game in england. the latest arduous step to take the franchise global. >> we looked at some of the assets we had. brooklyn itself, global brand. now we are at the point where we want to further leverage it and ultimately monetize it. >> the nba is already going global. the nets' owner is russian. some players are from europe.

the hawks of the first macedonian. kevin garnett may be the biggest draw, but his chinese shoes are the business. >> move over, air jordan. >> the net say it is designed for it -- nets say it is designed for a global audience. the soccer players to not have much to worry about yet. >> invesco bobby big -- can basketball the big? >> it is big in russia, just not as big a soccer. >> it does have one fan it is hard to get a question in. big, it is hard to get a question and. >> i love it. >> the nets won the game. basketball's battle for the world's hearts is just getting started.

bloomberg, london. >> the nets have an ambassador in its owner mikael program of khorov. they did get to talk about business after the workout. you need very good professional staff. you need great players. you need the team spirit. only with money it is impossible to reach the championships. are the first international honor when you bought the nets. do you think the leave -- league has become more global? >> there is interest in many countries. i know a lot of foreign investors keeping and i to invest -- an eye to invest in the nba. transition time. the current commissioner is retiring after 30 years on the job.

the nba's revenue soared more than 4500% up to $5.5 billion annually under his tenure. adam silver is going to be taking the helm. we spoke with the author of an article about it. >> they did this in a very gradual process. very smooth, they built a consensus over time. while there are not publicly traded and that saves them from dealing with the troubles that that, it does serve as an example. they work with large corporations. >> they have lots of constituencies. stern'sugh david title is commissioner, his job description is like that of a ceo because he is shareholders to answer to, those holder -- owners. >> that is what we talked about. when david stern took over, it was more like a commissioner as you think of it.

a top cop making sure everybody stayed in mind. but now, the league is a media property. you have to be managing, merchandising, marketing. the first thing silver is going to have to do is negotiate new national tv deals that will be worth more than $1 billion per year. quite a stern led legacy with the way he dealt with the players union. there was a five-month lockout. >> stern puts over in charge of that as an opportunity for him to step up and be in front of the owners more. when it became apparent that silver was going to be the next commissioner, the owners asked for more time with them. that is really when he did it. they basically one that negotiation. -- won that negotiation. the final approval of the owners. the vote of 30-0 to make in the next commissioner. himhey voted 30-0 to make

the next conditioner -- commissioner. >> you judge corporate leaders not only on the job they do, but also in the succession plan they have done. adam silver will take over on february 1 and he has been with the nba for 22 years. much of our success is attributable to adam. >> people so you will be a difficult act to follow. >> not so. adam and i will be a difficult act to follow. the nba still has adam and they have the complete continuity and knowledge and work ethic and expertise to go to new heights. >> the biggest challenge in front of adam? the unfinished business? >> how to manage an enterprise that continues to grow. every successful corporation has to deal with that because there will be so many markets calling development,ch

asset allocation. you have to make sure you get the people and you deploy them correctly. it was the same problem we had when we were 24 people. >> you will be on a boat and turn off the tv and not watch? >> i will always watch. i don't like failing -- sailing or yachting or ships that much. he won't be on my speed dial either. i will be enjoying it. i will be available to help in anyway i can because i think that it is fun to watch this thing continue to grow. >> transition game. the cover story of the car were -- current bloomberg businessweek. virtual sunrises had to be brought in. huge digital commercial television screens have been set up to observe virtual sunrises and sunsets in beijing to make

up for the smog. ♪

it is approaching 56 past the hour. a bloomberg television is on the markets. i am julie hyman. we still have a mixed picture with the dow trading higher than the s&p 500 and nasdaq -- both trading lower. the s&p 500 was at a record a couple of days ago. put pressure on

the major averages. let's talk about the bigger picture here. what have we seen in earnings thus far, what will get us to the next leg up in the market? alan thatbring in alan knuckman. we have come full circle. we are pretty much where we ended wendy 13. -- 2013. >> that was a huge, extended move. people are nervous about how we have not extended these gains. but put it in perspective, we are still at the highs, almost everything of they. >> will we continue to make new highs? >> i think we have gotten very spoiled, obviously. big gains last year. you can probably not expect that for this year. the trend is still solidly up. --hing has changed the throw

to throw my optimism off. fear that the market could fall down. >> in terms of fundamental news, earnings are not fun that's fantastic. ups really struggled through the holiday season with a lays and incurring cost from that -- d lays and incurring cost from that. these are longer-term trends. slower pc sales. citigroup coming out. we have had big companies coming out -- >> i don't think struggling is the proper word. we are getting hiccups. things are progressing, things are fine. what is most important to me is how the market reacts. even when we had a negative news, every time we have had a selloff, we have come right back, the measure moved. it is going to do that until it doesn't. 1880 inll looking for the s&p. >> what is your strategy if

you're relatively bullish? >> you have to be selective now. we have had so many extended moves. i'm looking at distressed companies. ebay is a good example. kind of like yahoo! had been or facebook had been a year ago. there are these stocks that do not perform, as does the major market. ebay has been trading between 58 $58.0 and if it gets above $58, it will go to $64. you have to look stocks that do not look good. abercrombie & fitch was a great example. from a risk reward standpoint. it had a big bounce when everybody thought. you want to be a buyer when things look absolute worst. you don't have to risk as much on the downside. >> things look the worst -- abercrombie had a little bit more than ebay. abercrombie has a little bit of

an uphill battle there. >> they do, but they have stock bounce. >> but what about what is in the stores? >> i am not in the stores. i am in the stock market. from a risk we were at standpoint, there was enough to lean on. it bounced off that. it was a nice, healthy move. everybody has a negative opinion on something, it is time to look at a bullish opportunity. >> we will see. i will check back with you. great to see you in person. we will be back on the markets in 30 minutes. ♪ ..

mammal look him to bloomberg, were recovered you global technology and media companies that are reshaping our world. i am emily chang, our focus is on the future of business. here live from bloomberg headquarters in new york, we are talking about the president's week speech today about the nsa and potential changes to the surveillance policy. he basically ordered his top legal and intelligence officials to think about how and where the data they are collecting about us