welcome to "lunch money," where we tied together the best interviews and stories. around the world, securing synergy -- vladimir putin gets help from president barack obama. mohamed el-erian is starting a new chapter and we will tell you about that. indavos nothing says hospitality like barbed wire and media. an investor goes up against giant dish in a key wireless auction that starts today and in the movies, jack ryan is facing a life-threatening challenge but this one of the offscreen. we will get it up -- we will kick it off withdavos in switzerland or they do it every

year about now. there is always one nagging question -- why does anyone actually go? >> we come to learn. we learn about what is going on a particular country or industry. it's important. uniquely for banking, it is a chance for the ceo's across the road to sit in a room with policymakers and others and have a dialogue. obviously there is a chance for to see a lot of people like clients. >> we try to build businesses and you have to do that in a macro environment. you come here and you can learn about what is going on in the world. you can meet all sorts of bankers and ceo's who can be sources of deals. >> when i came here 12 years ago, you had to go through dark hallways to find anyone to talk about china. but you got to build relationships so if you stay focused, davos can open doors for you. >> it is not just executives and

politicians. goldie hawn is talking about the benefits of meditation and actor matt damon. >> there is still 780 million people that don't have access to water. >> are corporations doing their part? >> we've got a number of corporate partners,, pepsi cat, ikea, a bunch of them have stepped up and they have been great and they get it and are taking a proactive role which is really wonderful. it will require more than that. >> first impressions on daovs? >> i have been here for two hours and i heard a beautiful concert and that's a good start. >> matt damon's water mission is part of the really extreme we are seeing at davos this year, the gap between rich and poor. how do you close the gap? >> look at the been on wage in the u.s. since 19 50 in place and adjusted.

it is terrible. look at the rest of the world of the minimum wage is a problem. we've clearly created a society where we have large groups of haves and have-nots which was expressed by the public during the financial crisis, sometimes in graphic ways and we need to address it. >> to solve income inequality, we need to educate people better. when you have 25% of the people in high school not completing it, you are creating people who will not get better jobs and might often wind up doing things that are not socially acceptable. a higher percentage of people could not graduate from high school and they wind up in our prison system which is the largest in the world. income inequality cannot be solved overnight. we have to commit to do it over time. education is probably the key.

>> labor share is plummeting. it has been for 25 years. it had not happened before that. we had technological progress and did not have labor share plummeting. you can try to interfere in different ways but i think we have to see changes -- >> we live in a winner take all economy. if you come up with a great idea, you can become a billionaire globally. if you have great tech experience are great skills that people want, you can get a great job. if you don't, life is tough because there is a lot of people who don't have experience looking for work who may be replaced by technology. i think we can be part of a solution. the hotel goes to different parts of the world whether it is africa or south asia or southeast asia, brooklyn, and we open a hotel and we create jobs. we create entry level for people who don't necessarily have experience but the great thing about the hotel is it is one of those industries where people start out behind a desk and they can get very senior jobs over the course of their career. >> wall street banks have often been targets of the 99%. morgan stanley ceo james gorman says the economy is a big factor

in public mistrust of the banks. >> this is the most damaging financial crisis since the depression or maybe before that. you have all the home foreclosures, the bank failures, and the impact that have on the global economy. it was devastating. this will take a long time to recover. >> is the industry not doing enough to restore that trust? >> i think the industry is doing a lot. you need strong institutions. the first thing they did was to start recapitalizing and got their leverage. the industry started shedding the businesses that were at the root of what got the big banks into trouble during the crisis. >> populist opinion isn't negative against banks. what is your strategy to tell the great american banking story? >> i don't know you can't tell a story to an audience that's not ready to listen.

we have to get employment particularly in the u.s. where more people are in jobs. if they have jobs, they're more willing to listen. a lot of the blame for the failure in the economy over the last couple of years was the financial crisis. let's get the economy going with no new mistakes. one of my top 10 goals every year is no new mistakes but let's not repeat what caused us to get into this position. >> i like that. davos is full of billionaires and many of them are generous but not all. we questioned david rubenstein of carlyle group. >> i don't think i can control what other people do with their money but i think it's important that people who have a fair amount of money do something useful with it other than just buying homes or yachts are things like that. at some point in life, people realize they need to do something to give back to society. there is a lunch that bill gates and i are hosting for people who have assigned the giving pledge

and people who might sign. had that laster and it worked quite well and i am hopeful -- >> how many people do you think you can recruit? what is the living pledge? >> it is something that bill and melinda gates put together with warren buffett to get certain people to give away during their lifetime or death at least half of their net worth. it has now about 120 people who have signed up to do so around the world, most of them in the united states. we are working to get people outside the united states to do so. the latter pay is more of a u.s. occupation. -- philanthropy is more of a u.s. occupation. we are making progress. >> how will you get the next generation? when you look at the people under you who are successful, how do you get them to make a real philanthropic contribution? how does one truly make that commitment and how do you spread the word? >> if you're doing something as a leader of a firm, maybe you can set an example for other

people. if you can be a role model and other people might want to follow your example. that's one thing and secondly, if you talk about this and next thing you are doing, you might have an impact when people work for you. >> are you having that impact? >> there are people in the firm who are quite village rampart -- philanthropic were junior. he also match would people give away. for a young employee who wants to give away dollars, we will match that up to a certain amount. >> is philanthropy the answer to inequality? >>no, we have to remember that philanthropy is not going to solve all the world's problems. in the united states, people give away roughly about two percent of gdp. it's a small percentage. it's important but small. to solve income inequality, we need to educate people better. >> we will have much more from davos like how to protect heads of state in the swiss alps and

securing sochi. it is one reason why the russian winter x could be the most expensive ever and the numbers are coming up next. we have to show you this, the protests in the ukraine capital has turned deadly. at least three people have been killed in three nights of street violence in kiev and police have been granted new powers like using smoke bombs and stun grenades. protests have occupied the city square since november since a union deal was snubbed. ♪

? >> this is "lunch money," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. president obama made a call to vladimir putin today.

they talked about security at the winter olympics. terrorist threats are clouding the festive event and 34 people died last month in a suicide bombing so the u.s. has offered russia high tech bombs attacking equipment according to pentagon officials. no word on whether president putin will accept a security measures are adding $ to the already high cost of this year's games. absolutely incredible. read more about it in "bloomberg businessweek." vladimir put in is trying to

assure the international community on the security measures. >> we have adequate means available to us through the federal security service them of the interior ministry, armed

forces units that will be involved in providing security on the water and in the air. if necessary, all those tools will be activated. the job of the live exposed is to ensure security for participants and the olympics and visitors. we will do whatever it takes. >> we sat down with the russian deputy prime minister in davos and he says the country is ready for the winter games. >> we have 40,000 security people. we have collaborated with our foreign partners to provide for better security. i believe we are prepared. >> lots of reassurances but u.s. lawmakers are still skeptical. >> all the briefings i have received from the rate intelligence community to the fbi, they indicate there are serious concerns. they say we need to do a lot to step up security. >> i am concerned about the status of the x of security. i believe the russian government needs to be more cooperative.

>> i would not go and i don't think i would send my family. >> as a homeland security chairman, i am concerned. >> the last olympics in russia, you may recall were the summer games of 1980 and they were boycotted by 65 countries. there is a lot at stake for vladimir putin and russia. >> we have russia returning to the world stage and this is important for vladimir putin but also for russia and russians who want to see great games. russian culture will be on display. it will not just be at the opening ceremonies but in the whole run-up. there is a matter of national pride. there will be many russians who say judge us on how our athletes do. tell us what kind of games has russia been able to put on a good show in the way london did. >> in vancouver in 2010, russia

did not take nearly as many medals as they had done in the past and as they had counted on. it was in part the cause of massive graft. that was a huge shock to russian pride. people talked about everywhere like cabdrivers. they could not win a hockey game. it was a disaster. if that happens on russia's home turf, watch out. >> you can watch charlie rose every night at 8:00 p.m. only on bloomberg television. a sweet shakeup at him: what's next after a surprise resignation by mohamed el-erian? plus, what is the one skill every leader needs? ceo's gives their answers. we will be right back. ?

>> mohamed el-erian has resigned as ceo at pimco. he was considered the likely successor to bill gross but instead, he will leave the company in mid-march. he will stay on the international executive committee of another company and advise the management board on global economic policy issues. douglas hodge will become the new pimco ceo. the chairman of ubs told us what he thinks about the loss trip >> he's definitely a loss to any company. he has been a great name and a good commentator on monetary policy. i know him for many years. he is very good to exchange views. i don't share all the views. we are very equity focused. it has served us well.

it's a good sounding board if you talk to people like him. >> betty liu is out with a new book," work smart." all this week on "in the loop," the biggest names in business answer a different question every day in today's question -- what is the one skill every leader needs? >> credibility, both in the way he deals with people and the way he deals with numbers and the way he deals with the realities that are around him. >> good listener. >> listening, your team your people in the market, customers, suppliers, they have a lot to say and the best ideas will not come from you your cell. they will come from other people. >> great people skills is the ability to be intuitive about people and hire people that are different than you. >> i think we have to listen, learn before we can lead. >> you have to be personally responsible and recognize that you are responsible for the lives of the people around you. they depend on you.

you have chosen to be responsible and therefore you cannot forget those people. >> listening is the most important skill by a country mile. probably most important is the ability of verbal medication. if you cannot do that, it is hard to work with people and hard to lead. >> understanding what their customer really means from their side, listening more and talking less. . >> great advice. betty liu spoke with her guests this morning. >> is the difference between a w-2 earner and someone who has skin in the game. within that framework, what is the difference between steve jobs, michael dell, bill gates and the great leaders that have found companies. we have to nurture that entrepreneurial spirit and trays individuals that go to work at five in the morning and stay up until 12 at night to create jobs and create a competitive advantage.

we are not doing that in this country. >> how do you do it? >> within that framework, we love entrepreneurial spirit. if someone was to lead to start a firm, we applaud them and give them money and invest in them. >> it's ok if they want to leave? >> that's what we like. we want to lower the barriers trade regulation is stifling and ability to come in and go to work and create the next generation of leaders. we want to create companies that can have access to the capital markets, not crowd funding but venture capital. professionals need to know ettore's capital and keep them public so we can keep -- we can create individuals who have a beacon and can lead by example. we need to let everyone follow and create a system that encourages risk-taking. >> there are many good examples. there are leaders doing a great job like tony shea and larry and howard schultz and you see things. you don't see those kind of things at other companies. >> if you go to silicon valley, it is rife with entrepreneurs. >> yes and a lot of people who don't have a clue about running a business or don't have a clue about getting to the next level.

they care about funding and so forth but they don't know how to run businesses. it is a rare breed that can make it happen and that know what it takes. >> all this week, we'll have more from the betty liu interviews on how to get ahead. movies, " jack ryan shadow recruit" is in theaters.

? >> bloomberg television iso." "on the markets it is relatively mixed out there officials say more than 4000 people have been forced to move to shelters. , but thehas moved out cold temperatures have moved in. strong's -- central park saw 11 inches of snow.

near zero from new york to boston. stay warm. the cube has cracked. cracked.e panels has the culprit is unbelievable. is 450 k.o replace it davos is the side of the world economic forum. it is a detonation for political and corporate leaders. there is hospitality so we got a chance to speak with the marriott international ceo on areas of growth and he says he has found some. >> we think africa is the land of the future. >> why? >> for the first time since independence swept across south saharan africa, you are seeing a number of countries with government that is strong and empowering people to grow which is encouraging entrepreneurship and we are seeing growing middle classes. it is not just south africa which is has been the story for the last decade but we are

seeing strength in markets like kenya and ethiopia and nigeria. as these places grow and as we see regional travel grow across the area, >> do you think kenya is next? >> absolutely, we will be there soon. >> fascinating, where arts -- where else are hotels looking to grow? >> we are focused at the high- end. in the last six years, our footprints of hotels around the world is double. in spite of the financial crisis, we see growing demand for high-end hotels but we also see it for weston's and sheraton's and meridians as well. the high end of them market is growing globally. it is a golden age of high-end

travel. >> for the rich and powerful, only the most luxurious hotels in davos. this is the newly opened intercontinental. >> the intercontinental daovs, a mountain layer that is easy to defend. security seems to be quite expensive. >> we have a perimeter set up with a particular secure area during the economic forum. we have more than a handful of head of states coming. >> what is that mean? >> at least six or seven. i cannot tell you who they are. >> who decides which head of state gets the one presidential suite? >> the world economic forum exquisitely decides. >> nestled in the foothills behind daovs like a giant golden egg, the intercontinental is the newest name in a valley that knows luxury. there is a 10 floor bar to watch

the city below. it has a dedicated cigar lounge. in the off-season, suites start at $1100. during the rest --how much? >> i can't tell you. we have a certain market situation in davos and that is reflected in the rates. in monaco during the formula one, the price structure is higher. >> after the west, the hotel is banking on the conference market from asia and the middle east. first, the new belle of davos has to get through its first fall. >> much more from davos today on bloomberg television and tomorrow, the coca-cola ceo and nouriel roubini right here on bloomberg television. bidding begins today in the government spectrum option. we are going to explain next. before we go to break, the first lady promoted her let's move campaign with the miami heat players. she had some fun, too.

>> i am from the miami heat and i am here today at the white house to find out what eating healthy can help form champions. >> i eat every day because it gives me energy and helps my game. >> what about you? >> it's an important part of my pregame routine. >> you can take it from me, eating the right foods can help you make you a better athlete. ?

>> federal government will be opening the bidding today for the first airwave auction in five years. >> it's that 10 mega chunk of airwaves and it's valuable because it can be used for wireless services. no major wireless player is actually betting. at&t and verizon and sprint all decided to take a pass. that leaves -- as the biggest of the 23 players registered in this auction. they are the odds on favorite to get the licenses. >> why does dish want spectrum? we caught up with ceo joe clayton. >> there are multiple possibilities for us to get the wireless space. that could be one. there are many others. we are now focused on trying to acquire spectrum which really gives you the purview or the way to get into the wireless space. spectrum is like oil, gas, and

water, gold -- you cannot get enough of it. >> i get it, spectrum is good but what is it? >> spectrum is one of the most important parts of your digital life that you probably know next to nothing about. what is it? spectrum are electromagnetic waves, invisible to the naked eye, that allow us to transmit things like video, audio and data. your cell phone on a radio, and tablet are all using spectrum. spectrum is like real estate, real estate with oil underneath it. the federal government regulates spectrum and auctions parts of it off to large companies like at&t and verizon or several smaller companies. like real estate, spectrum is all about location, location, location. that's because not all spectrum is created equal. some frequencies are much better for things like cell phone service and wi-fi. companies do two things -- they try to quarter the spectrum they already have and also they try to get more spectrum either

through government auctions or by buying it from other companies. this is causing some people to worry that we are rapidly approaching peak spectrum and if the government does not auction off more spectrum, get ready for more dropped calls and choppy video streams. hello? can you hear me? can you hear me hear? while the government does have a lot of unused spectrum, so do a lot of companies. they stock violet to keep it out of the hands of competitors. furthermore, neural while this newer wireless networks can you spectrum more efficiently. we can drill for more oil but we can also told more fuel- efficient cars as the government allocate spectrum more effectively and the industry can make devices and networks that are more spectrum efficient. there should be plenty to go around. >> good explanation. mario gabelli will likely bid for the spectrum through a

company he owns called lynch. he was forced to pay $130 million previously but he is back. betty liu asked him why he's getting involved. >> there is a shortage of spectrum and how do you play it? it's on a global basis. what companies will buy each other? michael white and charlie ergan will figure out a way. this is the right time for those two companies to come together. we like them both and think the wrecked tv, the stock will be over $100 in a few years. it currently is at 70 and would like a company in south africa and america. -- and south america. spectrum and its availability and giving mobility and data and cloud and all of that comes together. >> the bidding wars over this have gotten more competitive. you got at&t and verizon not even bidding for the block. >> the quality spectrum will come up with the broadcasters

which is an area where we have done quite well. they will maybe give up some of their spectrum in a reverse auction or some other process. the notion of spectrum is like beachfront property -- we are sure any to allocate and use it right and that's on a global basis. 4g and the next generation of delivery will tell us about the next moves. >> you can watch the full interview online at bloomberg.com/tv or go to our award-winning tablet app. jack ryan is back so can he save the world again? we will tell you after this break.

? >> and movies, a rough start for jack ryan. " jack ryan: shadow recruit" had less ticket sales than the top movies. jon erlichman spoke to the author on this release. >> what is it about this guy that wants -- that makes people want to go to the movies. >> jack is an all-american hero. he is also the kind of guy you want living next door. if your house was on fire and you had to get a baby out of the second story, jack would catch him. >> there are multiple actors who have played this character, harrison ford, ben affleck, now chris pine.

what is that transition like? >> it would have been better to have one actor playing it all the way through. he could age with the character like the character has aged in the books but the transition was not difficult or italec did the first one and went off to do a broadway show. harrison ford -- i offered him the hunt for red october and he turned it down. he said he wanted to lay the russian submarine captain. i said that's not exactly the kind of testing we had in mind. i sent him the script and he immediately reacted and we had two films within that were great. then we spent a long time trying to get some of the fears --"the sum of all fears" done and they said ben affleck was interested and i said he is very young. how do we do that"? i thought we will do that and pretend we had never done a jack ryan movie before.

>> so this film is not specifically based on the tom clancy book. how do you get the script together when you have run out of talks? -- when you run out of looks. >> when i made the original contract with clancy before he was a full-time writer and had a major agent, i just gave him a standing contract which gave us the character rights to the characters in the book, prequel rights, civil rights, and rights to do originals. i reminded paramount and i said check the contract, i think we can do originals. >> how many jack ryan films do you think we could continue to see? >> i would love to see at least two more after this. >> you wanted this one to get done for nine years? >> it took nine years, yes. >> may be up the timeline with

the next once? >> if our box office results are good this coming weekend, i think we will immediately put another one into the works and hopefully, you get that one done in a year or so. >> picking a younger chris pine to play jack ryan may attract the younger teen girls. before last weekend's release, paramount also announced the movie would be the first film to earn them movies for grown-ups seal from the aarp. you could say that they got the older section two. spies need spyware and there are pretty high-tech small pieces of spyware. here are the five most inspired spy gadgets out there. >> today's mystery meat -- a taiwan town is going big for the

--

>> today's mystery meat -- a taiwan town is going big for the upcoming chinese new year. it will be the year of the horse . this is a big horse in taipei. new year's is friday, and january 31. ?

>> its 56 past the hour which means we are "on the markets." a couple of big movers in today's session we want to highlight a mother first is coach. shares are falling after coach missed its quarterly profit and revenue estimate. it said holiday sales at its north american stores were the

worst in 13 years. warren buffett has found an unlikely advisor. who is the young protége? let ring in no up. bring in noah. she is in charge of many of them. , and she has chairchai been gaining a lot of responsibility. she joined the company. my colleague and i spoke with

buffett a little bit about tracy and her evolving role and really said she thinks like he does. for that reason he trusts her to be his eyes and ears in this sprawling business empire he has over the last four plus that date. >> she was voted most likely to in high billionaire school, and there are some who say her idea of fun, reading through regulatory filings, is not the same as everyone else's. >> we spoke to some of her friends, and they said tracy is very interested in business, and she has got the side -- the kind of mind that can drill down. >> let's talk about some of the responsibility she has been given. she fired three ceos and had to deal with replacements. >> at two of the businesses when she came in they made a change

of the ceo. been an entirely and one of the investors i spoke with said this is maybe a good day to go through these experiences. will make her potentially a more valuable person. >> let's talk about buffett and the way he manages. she is part of a triumvirate. there are three others who are highly trusted. >> buffett trusted them a lot. his 40's. ted is in his 50's. both used to run hedge funds. buffett, he said the three hires he made in the last four years really prepare berkshire for a succession in a really big way.

the big take away. you are talking about the successor and how they may play a role going forward. >> tracy is in an operational oversight role. she is going to give the successor, buffett told us, a lot of information about what is going on at these various businesses. >> thank you very much. for on the markets. stay tuned for more. ♪ . .