money," wento "lunch tied together the best stories, it interviews, and business in business news. in company, the un-super mario. nintendo profit lunches. tisch shows us how to make a super bowl symbol. -- super. the u.s. grounds drone. in wild card, how to build a subway. 11 stories beneath new york's 2nd avenue. day -- the airstrip in new

jersey servicing private jets is jammed. we will take off with what everyone is talking about. tonight, this chamber space with one voice to the people we represent. citizens, who make the state of our union strong. much thes pretty standard opening line. the president spoke for 55 minutes. mostly on the economy, immigration, raising the min wage, tax reform, natural gas, you get the picture. if you missed it, here is the state of the union in two minutes. [music plays] we need to work together on bipartisan trade promotion authority to protect our workers, environment, and open new markets to goods stamped made in the usa. if we are serious about economic

growth, time to heed the call of business leaders, labor leaders, faith leaders, law enforcement, and fix our broken immigration system. america is closer to energy independence and we have been in decades. businesses plan to invest 100 billion dollars in new factories that use natural gas. help states get those factories built, and congress can help by putting people to work building fueling stations that showed cars and trucks to american natural gas. i will issue an executive order requiring federal contractors to pay federally funded employees a fair wage of at least $10.10 an hour. you should not have to live in poverty. , congressillions more needs to get on board. say yes, give america a raise. [applause] we have a chance right now to be other countries and the race for

the next wave of high-tech manufacturing jobs. my administration has launched for high-tech manufacturing, in north carolina and ohio, we have connected businesses to universities that can help america lead the world in advanced technologies. tonight, we will launch six more this year. this can be a breakthrough year for america. after five years of grit and determined effort, the u.s. is better positioned for the 21st century than any other nation on earth. a question for everyone in this chamber, running through every decision we make this year, is whether we are going to help or hinder this progress. >> ok, there it is. big issues for the 2014 agenda. except one thing. >> america does not stand still and neither will i. wherever and whenever i can take

steps without legislation to expand opportunity for more american families, that is what i will do. >> we have talked a lot about this on "lunch money." highlighting 12 executive orders intended to advance his agenda without requiring congressional approval. going at it alone in washington. ideas get the smaller. whatever he does alone, it is a smart idea. if it were big, it would go through congress. ideas and initiatives are getting smaller. what republicans like former commerce secretary carlos gutierrez have been calling small issues. still painting a small -- a strong picture of the union. he had to walk a fine line. needings are good that we to make changes. we need to take a different direction. on one hand this, on the second hand, this. in the end, today and tomorrow, this speech is not going to

matter as much as what he does in the next six months. i think the american public is tired of the oratory and the words. they say what are you going to do? it is all about action. is what that republicans want. like cathy mcmorris rodgers of washington who delivered the gop were spots. -- response. >> the president made more promises that sound good but will not solve problems facing americans. we want you to have a better life. the president wants that, too. makee part ways on how to that happen. republicans have plans to close the gap. jobs that will focus on first, without more spending, government bailouts, and red tape. every day, we are working to expand our economy. when manufacturing job, nursing degree, and small business at a time. to honor ourme history of legal immigration.

we are working on a step-by-step solution to immigration reform. first, securing our borders and making sure america will always attract the best, brightest, and hardest working from around the world. joinpe the president will us in a year of real action. by empowering people, not by making their lives harder with unprecedented spending, higher taxes, and fewer jobs. as republicans, we advanced s every day. we believe in a government that trusts people and does not limit where you finish because you w -- finish because of where you start. >> big issues but few details was the republican response. >> to mayfair, president obama did not create all of these problems. establishment in washington can be just as out of touch as the democratic establish. where does this new inequality come from? from government, obamacare.

it is an inequality godzilla that has rocked working families of their insurance, their doctors, their wages and their jobs. >> and inequality godzilla? sounds big. cruz's lieutenant in the recent government shutdown. we might actually have one more religion response -- republican response. >> president reagan said government is not the solution to our problems, government is the problem/ the housing bubble and crash were caused by the federal reserve, keeping interest rates too low for too long. as we entered into the great recession, republicans and democrats misdiagnosed the problem as too little government, they gave us more government. bailouts andf bank government stimulus. nearly $1 trillion later, we find that government does not create jobs very well. it turned out that a cost nearly

$400,000 per job for you. why? government is inherently bad at picking winners and losers. i have an idea to empower americans. to create economic freedom zones in distressed areas all over the country. including my own state of kentucky. losing more money in the hands of the people who earn it. they will cutes, income and business taxes to pay -- to a rate of 5%. we will cut payroll taxes so folks will have more money in their paychecks. burdensome regulations will be removed. business will expand. criticism. at least a concrete proposal from rand paul. bottom line, the president has an approval rating of less than 50%. congress is even lower. action is needed from everyone. deutsche bank is taking its own action. cutting hay by almost a quarter.

we will hear from the ceo next. make mario, how to nintendo super again. that is coming up next. ♪

>> in company, and earnings triple play. georgia bank, yahoo!, nintendo. germany's biggest financial institution reported a loss in the final quarter of last year. deutsche bank is cutting compensation for employees by 23%, does not make life any easier for co-ceo anshu jain, the bank is implicated in the alleged rigging of currencies. big legal bills. >> 2014 will be later. it functions better when it comes to variables like monetary policy, which are a little easier to predict that it is to create -- critics size of

settlements. we are hopeful we will have the bulk of it behind us. > yahoo! fell short of estimates as well. marissa mayer struggling to turn user growth into our dollars. -- into ad dollars. storyis a revenue growth -- >> except there is no revenue growth. >> investors have been waiting for yahoo! to figure out how to monetize its users. we know digital advertising is growing 15% a year. yahoo! and aol are unable to take advantage of that. marissa mayer is starting to feel some pressure now that she is a year-and-a-half into her leadership of the company. >> we saw alibaba results, they are trailing. take 51% yearwill over year. slower than it has been. -- of whate signs of

that business is showing. in terms ofow revenue growth in the third quarter, they report one quarter in arrears. people feel very bullish about alibaba and e-commerce overall in china. ali baba is the place. the valuation associated with the ipo, whenever it may come in 2014 continues to be the driver. >> people say mercer mayer has turned around this company when they look at the stock price, not the results. you really see the financial -- youd sharing of lope really see financial engineering of dan loeb. >> they are to monetize part of their investment in ali baba last year. they did a good job of returning proceeds to shareholders, they have done a good job from that perspective. if you look at the stock, it is a complete bet on the value of

the ali baba ipo. no real improvement on fundamentals, marissa mayer suggests it is a "multiple your turnaround." super mario.n nintendo's third-quarter profit down 77%. christmas shoppers shun the wii u. not in good is shape. you are not having developers who want to make games for it. is struggling because you have hard-core gamers going to the xbox one and ps4. then you have players who play on the ipod. five dollar game. nintendo has an ecosystem similar to apple, they make everything. it is also the hard part about their company in the short-term. >> a challenge for super mario.

challenge for new york, hosting the super bowl in four days. talking to one of the men making deep date game happened. john tesh, -- jon tisch. the super bowl's most exclusive parking spot. later on "lunch money." ♪

names, to bigfoot ball fans jonathan tisch and woody johnson. tisch has been trying to bring sinceper bowl to new york after 9/11. it wasn't until the metlife

stadium was built into a tent that the idea caught on. how do you prepare for the game of the year? on tonight's "titans at the table," it features tisch himself. better prepared. metlife undergoes a total transformation 20 times a season. a staff of 20 takes two days to change from jets green to giants blue or vice versa. that includes the removable end zone. turf is rolled up and stored, the other team's is rolled out. the end zones will be unveiled for the broncos and the seahawks. that is all the nsa is saying about the big game. cosmetic changes ? >> you will find out when i find out. the 50re standing on

yard line. there will be a coin toss. johnson,er with woody jonathan tisch is the cochairman of the super bowl host committee. that means making sure the stadium is ready for the big day. >> it is a lot of responsibility, it keeps you up at night. blackout there was a that affected the game at the superdome. >> can you guarantee no power failure? >> so much work has gone into ensuring there will not be a power failure. there will be generators on-site. problem, mother nature. the stadium has a team of 1000 at the ready to clear snow. the vice president of facilities at metlife stadium. he says they are ready for the snow. >> we put the snow melt on the concourse and on the field, they have a 600 pounds no matter we can use in the parking lot.

they have a jet engine, the heat from that is what melts the snow. >> it is a very big operation. >> no matter what the weather, it is going to be a great day. games inf the greatest the history of the nfl has pleaded -- have been playing in a comment weather. it could snow or be 45 degrees. super bowl xlviii is going to be very exciting. we want to make sure the region knows the super bowl has been here. >> not the only one making the big game happened. woody johnson shares the title of super bowl host committee chairman. "surveillance" brought them together. what is their biggest headache? uring that people get to the game safely and in a manner where they are pleased. we lost half our parking spaces.

we are calling this the first public transportation super bowl. we are doing psa's, getting the word out in seattle and denver that when you come to town, have a plan. on a bus, on a train to get to metlife. >> grand central station, penn station. >> there are a variety of different points about how to get to the game. >> how are you getting to the game? >> probably by bus or train. >> bus from new york. >> over you go. ouroody johnson, one of themes is any quality, where do the private jets and out? -- end up. >> anyplace they can get in. all the major airports. new york, laguardia. >> who are you most excited to see play sunday? >> i think both the

quarterbacks, you have the old and the new. peyton manning old-style wise. he is russell wilson, only five foot 10 inches, a new style. he will go out. you have to be careful with a guy like that, he can run on you. be more strategy will prevalent, the team that has depth or the $25 million quarterback? >> we will find out sunday, but it is one of the great matchups because you have such a potent offense and a very, very tight defense. >> and richard sherman. are you looking for him to make headlines? -- what goes on the field is the purview of the players. it is very hard to get to the super bowl. you start in august, training camp, you work through the season. injuries have to go your way, winning, losing --

>> where will we be in three years or 10 years, do you see a cold weather, new york super bowl replicated in other northern cities? in denver? should be in the cycle every 10 years, it has the assets in new jersey and new york, it is the excitement. where we play football. some of the best games in history have been played and increment weather. that is what you look for in football. >> to your point, we had to win otherote with 3/4 of the 30 teams pulling for new york-new jersey. somecold-weather owners, warm weather owners. cold-weather owners are saying if we can do it in new york, why would it work in denver or pittsburgh? awesome.ng to be watch our special "titans at the table" with jonathan tisch

tonight on blooper television. -- on bloomberg television. two former nfl players have the entire week and out. in mechanical malfunction causes safety overut drone u.s. soil. motors is next. ♪ >> 26 minutes past the hour, bloomberg is "on the markets." caught up on wall street activity. the markets falling, erasing most of yesterday's gains. treasuries and the yen rising. turkey's central bank to stem a drop in the lira, failing to prop up emerging-market currencies. the dow down. yahoo! shares under

pressure despite fourth-quarter earnings that beat estimates. dow chemical is tripling its share buyback plan and raising its event. the company posted fourth-quarter earnings and sales that beat estimates. another update in half an hour. ♪

this is "lunch money." streaming live on bloomberg.com, your tablet, and smartphone. i am adam johnson. moving pictures, the video is the story. and, a snowstorm has the south -- turning highways into parking lots since yesterday. george's national guard is working to move stranded school buses and bring food and water to people stuck in cars. people have been forced to abandon vehicles and seek shelter in fire stations and grocery stores. in the ukraine, the prime minister's resignation has field to stop protests. demonstrators are calling for the president to step down and

four new elections. the crisis began two months ago after the president forced a trade deal with russia rather than europe's. a drug bust caught on tape. images show aance coast guard helicopter pursuing a speedboat boat in the caribbean. the smugglers are throwing packages overboard. in the end, 40 five barrels of cocaine were seized and worth an estimated host cell -- wholesale 37 million. customs had to ditch an unmanned aircraft over the pacific ocean. the ntsb is investigating. is disabled and all such drones have been grounded. accident is coming even as the federal aviation

administration is working on standards, trying to figure out how to safely integrate unmanned aircraft into commercial airspace. you can actually fly a drone yourself, but it is illegal to use them to make money, like delivering packages. >> the money is an enterprise, doing things like agriculture or construction, that is where there is money. >> not in delivering packages? >> is a good idea, that might happen a few years from now. >> you really think it is a good idea? >> if anyone is going to make it happen, jeff bezos is. it is a long ways off. it is very dangerous, deliberate makes sense if you have a high value package that has to go places where cars cannot go, that is where delivery make sense. delivering supplies in australia across great distances. it makes a ton of sense. if you are doing something residential or you have to fly

over people, it is not a great situation. it has got regulatory hurdles and technological ones. >> cool drone. >> we have one of these things. this weighs 3 pounds? >> yeah. >> what is this use for? product,s our consumer you can take a picture of your kid's soccer game. >> let's try this out. >> put it on the ground. beeps at you. >> unlike my roomba, it will get some air. that looks not safe at all. that is not flying over my kids soccer game. it is flying to emily in the studio. how many of these have you sold? isthis is a new release, it not out for consumer use. some developers have it.

we expect to sell a lot because they are $750 and fun. >> you are controlling it with joysticks. $750? >> yeah. are movingt things towards, you operate this with your phone and your tablet. this is how i am used to doing it. i can point the camera exactly where i want. it is a fully autonomous aircraft. the way we want people to operate these things is to say go here on a map, push a button. >> what is the most important change you would like to see from the faa in terms of legislation? to be more ins the u.s. to regulatesense aircraft operating in man airspace. with commercial airliners. i think they should look at ways of the regulating small, commercial businesses so you can make a business around crop

survey or construction survey. >> two underground, 11 stories deep. into the heart of new york's 2nd avenue construction projects. the fight for the most exclusive parking spot at the super bowl. the olympic flame has arrived in chechnya, one of the most volatile regions in russia. among them, the chechen president. the flame will make its way back to sochi for the opening ceremony in 10 days. ♪

card, 11 stories

underground. manhattan's 2nd avenue subway line is a five years in the making. this 4.5 billion dollar project will be new york's first subway line in more than 50 years. rachel crane takes us inside. are 659 miles of subway track. now, for the first time in more than 50 years, the system is finally getting a new line. this is the 2nd avenue subway tunnel. first conceived of in the 1920's, 80 five years later, construction is blasting forward. this is where we go underground? descendven stories. -- se 11 stories. michael runs a tight ship. are you the face of the 2nd

avenue subway? a -- the prices tag for a two-mile stretch of rail with three stops, $4.5 billion. some people get alarmed, but they are being nearsighted? >> it puts a lot of people to work. planners use a map from 1865 that shows the waterways that crisscrossed manhattan. so far, so good. you haveere and there a spot. in general, it is dry. >> officials have yet to budget the phases to complete the line. are you not budgeting it because you are scared the price will be so high? ofwe are in the process doing the budgeting. we don't have an idea how much it will cost. >> this section spells relief

for the 1.3 really -- 1.3 on the subway riders eastside, more riders than boston and san francisco combined. >> you think it is -- >> and economic success. this will be returned to the city maritimes. >> -- many times. in the next 20 years. volatile ride a for real estate prices near the construction zone. property values of condos dropped during the early stages of construction, it is a mess on 2nd avenue. that could change when phase one is completed. in theory, 2016. do i hear investment? >> housing prices outside the zone of the sunlight rising at a pace of about 12% to 14% more over the last four years than in

the subway zone. rent is rising about 8% more. the area is really liking. perhaps, that provides opportunity for people to look at. >> i went to the upper east side to check out apartments. one thing i found what sellers were saying you are buying at a good time now. we will price that in, the upper eastside never had service, it will have service. >> the reality of living in a construction zone. or the penalty for it was higher early on. as you get closer, the penalty reduces as people see the upside. in a vacuum, live sellers are watching the situation. >> does this change that part of the city? >> it elevates, no pun intended, the price structure of housing. it is an easier commute now from the far reaches of the i, east harlem to get to work in midtown. part of the upper

eastern part of the island of manhattan, there is held accounting. there is a lot -- there is a lot of public housing or institutionalized housing. this could change things. >> that is already happening, we have seen new development creeping northward from the upper 80's side into yorkville east side into yorkville and east harlem. you will see rents and housing ike, more upward pressure because you have -- you a significant have eased the way to get to work. that is one of the drawbacks of the upper east side as you move east away from the lexington subway line. has hadvenue subway dozens of false starts and delays, that is why people call

it the line that time forgot. richard sherman created a name for himself. now, he is taking on the super bowl media day by singing. experience the super bowl in style. private jets, penthouse suites, and exclusive parties. that is next. ♪

>> almost game day. four days until super bowl xlviii. layers got attention yesterday at media day. we asked them how they manage their money. get money, you ought to make sure you manage it well. manage it for the duration of 50 years or 60 years. you never want to spend it all, or be frivolous. you can live a good life without spending tons of money every day. >> saving your money, not going out and blowing it.

and spending money on stupid stuff. know, trying to cheat my wife in check as much as possible -- trying to keep my ase in check as much possible. understand that i cannot play this game forever. have -- i do not spend on nothing i do not want. when i spend money -- >> i see myself with a big building with my name on it. a few things that i am working on. my mom has been working with my agent. i am in great hands. >> you may remember richard sherman from his rant following the nfc championship game. the stanford graduate had some fun trying to win an xbox. --♪ 7 a.m.

, say my name ♪e >> ♪ when no one is around you, say baby i love you ♪ me and you are t hrough. ♪ a private jethink would help with parking. it makes it worse, just ask sam grobart. ticket to thea super bowl, congratulations. if you are flying in on a private jet, congratulations. if you are flying in with the other 1200 private jets, you have my sympathy.

iss airport in new jersey two miles from metlife stand him, making it the destination for elite football fans. planes, lots of them. the airport is expecting an influx of aircraft, so many that they hired an air boss for the weekend. ayne, not to be confused with wade boggs, is an air show choreographer. he says the payoff is in the departures that could be a mass. while planes trickle in, everyone wants to leave for it after the game. after the super bowl in 2008 in arizona, planes were delayed for more than six hours. that will not happen this year if he has anything to say about it. erboro is offering 600 restoration spots. according to a private aircraft

company, their slots were filled before christmas. they all offer some peas of mine, but private jets beware, that does not guarantee a timely departure. if you are not ready when it is your time to go, you could get bumped and wait hours for another slot. at that point, you might be flying commercial. meat.'s mystery cheerleaders from japan. performing for hundreds of soon-to-be college graduates in tokyo, trying to raise spirits ahead of job hunting season. good luck, guys. ♪

>> is 56 past the hour, bloomberg is "on the markets." thank you for joining us, let's get you caught up on wall street activity. stocks falling on disappointing earnings from yahoo! and other companies. wall street waiting for news from the fed, wrapping up its

policy meeting. emerging markets unsettling investors. efforts by turkey and south africa to strengthen currencies are failing today. a check of the boards, dow industrial is down 133, broader market is down 0.6%. arkets, ion the m am joined by daniel, senior investment strategist at tiaa-cref. got a lot toready digest, we have to understand what the inflammation -- with implications of tapering will do. we have to let the market ilate without a lot of expectations. we will settle down without caveats. >> what does the market want to hear from the fed? do they have direction, is there a tapering schedule price in? >> the market expectation is

that we will get $10 billion a month until zero. if there is anything the markets would like to hear that that is still the plan, no changes or surprises. regardless of the economic data. that is the key thing. we do not want to have expectations in the market that every new number, good or bad, that that is going to somehow change the plan for tapering. that would be unfortunate. the economy is going to be fine, here from the fed that growth looks good and fourth-quarter numbers look good, first-quarter numbers will be good. and that i can continue through tapering. >> could tapering have a positive effect on growth? >> the expectation is that it going to be the opposite. fore did something good growth, that could be bad. it can remove distortions in the market, higher rates will help people saving. it is more -- the expectation that it is not going to be damaging and slowdown gdp were

corporate earnings. >> i started by talking about emerging markets, the weakness is roiling markets around the world. will that continue? how long? a more likely, it will for wild. in terms of the macro environment for emerging markets with tapering, you will see a lot of that money that went out looking for returns during the qe period will come back to the u.s. and strengthen the dollar, weakening energy markets. that tends to be bad for equities and economic growth. >> earnings season is going pretty well, you would not know it by the market. why has the reaction been lackluster? it is a little bit of what have you done for me lately. if you look at the fourth-quarter results, they are respectable. earnings growth is good. there has been disappointing in the guidance numbers, people are not saying it is going to be so much better through the end of the year. corporations are being a little too cautious if anything. that is fine given the returns

we have last year. if we get through the tapering period, growth picks up the second half of the year, you see potential for positive surprises. investmentsenior strategist at tiaa-cref joining us this afternoon. stay with us, we are back on ben" in 30 minutes. "liver quest" is next. ♪

♪ from pier three in san francisco, welcome to the early edition of "bloomberg west" where we cover the global media and biology companies shaping our world. our focus is on technology and the future of business. erisa meyer has not put questions about -- marissa mayer has not put questions about the future of yahoo! to rest. earnings have remained stagnant. the company spent more than one point $2 billion on more than two dozen acquisitions.