>> welcome to "lunch money," where we tie together the best stories, interviews, and business news. in company, the un-super mario. nintendo profit plunges. jon tisch shows us how to make a super bowl super. the u.s. grounds drones. in wild card, how to build a subway. 11 stories beneath new york's 2nd avenue. game 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. it is you, our citizens, who make the state of our union strong. >> that is pretty much the 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 than 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. to reach millions more, congress 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 two hubs 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." the president highlighting 12 executive orders intended to advance his agenda without requiring congressional approval. going at it alone in washington. >> i think the ideas get smaller. whatever he does alone, it is a small idea. if it were big, it would go through congress. ideas and initiatives are getting smaller. >> ok, that is what republicans like former commerce secretary carlos gutierrez have been calling small issues. still painting a strong picture of the union. he had to walk a fine line. >> things are good that we need 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. >> amen, that is what republicans want. like cathy mcmorris rodgers of washington who delivered the gop 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. but we part ways on how to make that happen. republicans have plans to close the gap. plans that will focus on jobs first, without more spending, government bailouts, and red tape. every day, we are working to expand our economy. one manufacturing job, nursing degree, and small business at a time. yes, it is time to honor our 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. we hope the president will join 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 these plans every day. we believe in a government that trusts people and does not limit where you finish because of where you start. >> big issues but few details was the republican response. >> to be fair, president obama did not create all of these problems. the republican establishment in washington can be just as out of touch as the democratic establishment. where does this new inequality come from? from government, obamacare.

it is an inequality godzilla that has robbed working families of their insurance, their doctors, their wages and their jobs. >> an inequality godzilla? sounds big. ted cruz's lieutenant in the recent government shutdown. we might actually have one more 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. in the form of bank bailouts and 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. my plan is to create economic freedom zones in distressed areas all over the country. including my own state of kentucky. leaving more money in the hands of the people who earn it. in freedom zones, they will cut income and business taxes 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. >> a lot of 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 pay by almost a quarter. we will hear from the ceo next. super mario, how to make nintendo super again. that is coming up next. ♪ >> in company, and earnings

triple play. deutsche 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 than 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 ad dollars. >> it is a revenue growth story -- >> 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. 51% growth, i will take 51% year over year. slower than it has been. showing some signs of -- of what that business is showing.

>> it did slow in terms of revenue growth in the third quarter, they report one quarter in arrears. people feel very bullish about alibaba and e-commerce overall in china. alibaba is the place. the valuation associated with the ipo, whenever it may come in 2014 continues to be the driver. >> people say marissa mayer has turned around this company when they look at the stock price, not the results. you really see financial engineering of dan loeb. >> they are to monetize part of their investment in alibaba 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." >> now, an un-super mario. nintendo's third-quarter profit down 77%. christmas shoppers shunned the wii u. >> the wii u is not in good shape. you are not having developers who want to make games for it. the wii u is struggling because you have hard-core gamers going to the xbox one and ps4. then you have players who play on the ipod. a 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.

a challenge for new york, hosting the super bowl in four days. talking to one of the men making the game happen. jon tisch. the super bowl's most exclusive parking spot. later on "lunch money." ♪ >> two big names, two big

football fans, jonathan tisch and woody johnson. tisch has been trying to bring the super bowl to new york since 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? tonight's "titans at the table," features tisch himself. >> no venue is 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. >> we are standing on the 50 yard line. there will be a coin toss.

>> together with woody johnson, 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. >> power, there was a blackout 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. >> another problem, mother nature. the stadium has a team of 1000 at the ready to clear snow. dave is 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. >> some of the greatest games in the history of the nfl have been played in inclement 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? >> ensuring 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. >> woody johnson, one of our themes is inequality, where do the private jets 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. versus russell wilson, he is 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. >> which strategy will be more 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 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? >> new york should be in the cycle every 10 years, it has the assets in new jersey and new york, it is the excitement. outdoors is where we play football. some of the best games in history have been played in inclement weather. that is what you look for in football. >> to your point, we had to win this vote with 3/4 of the other 30 teams pulling for new york-new jersey. some cold-weather owners, some warm weather owners. cold-weather owners are saying if we can do it in new york, why wouldn't it work in denver or pittsburgh? >> is going to be awesome. watch our special "titans at the table" with jonathan tisch tonight on bloomberg television. two former nfl players have the

entire week and out. in mechanical malfunction causes concerns about drone safety over u.s. soil. motors is next. ♪ 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 for new elections.

the crisis began two months ago after the president forced a trade deal with russia rather than europe. a drug bust caught on tape. these surveillance images show a coast guard helicopter pursuing a speedboat in the caribbean. the smugglers are throwing packages overboard. in the end, 45 barrels of cocaine were seized and worth an estimated wholesale value of $37 million. customs had to ditch an unmanned aircraft over the pacific ocean. the ntsb is investigating. the drone is disabled and all such drones have been grounded. the 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 used for? >> this is our consumer product, 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? >> this is a new release, it is 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. i think what things are moving 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 allow drones to be more in the u.s. >> it makes sense to regulate aircraft operating in man airspace. that could be up 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. ♪ >> our wild 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. >> there 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, 85 years later, construction is blasting forward. this is where we go underground? descend 11 stories. michael runs a tight ship. >> are you the face of the 2nd avenue subway? the price 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. >> dry, here and there you have 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? >> we are in the process of doing the budgeting. we don't have an idea how much it will cost. >> this section spells relief for the 1.3 million subway

riders on the eastside, more riders than boston and san francisco combined. >> you think it is -- >> and economic success. this will be returned to the city many times in the next 20 years. >> it has been a volatile ride 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 lagging. 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. the concern or the penalty for it was higher early on. as you get closer, the penalty reduces as people see the upside. buyers do not live in a vacuum, 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. >> in that part of the upper

eastern part of the island of manhattan, 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 east side into yorkville and east harlem. you will see rents and housing prices, not spike, more upward pressure because you have created a significant -- you 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. >> 2nd avenue subway has had 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. plus, 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. players got attention yesterday at media day. we asked them how they manage their money. >> anytime you 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.

you know, trying to keep my wife in check as much as possible. understand that i cannot play this game forever. >> 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. >> ♪ say my name, say my name >> ♪ when no one is around you, say baby i love you ♪

>> ♪ me and you are through. [laughter] >> you might think a private jet would help with parking. it makes it worse, just ask sam grobart. >> if you got a ticket to the 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. this airport in new jersey is 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. wayne, 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. >> teterboro 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. >> today's mystery meat. 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. treasuries and the yen gained. emerging market guernsey's

rrencies-- cu weakened as well. reactionon the markets to the tapering decision, i'm joined by jeremy hill. he is here in the studio. the fed stayed the course as they said they would. even in the face the market selloff, is this the path of least resistance? >> a leopard does not change its stripes that often. the fed is being consistent. bayer tapering because they told us the u.s. economy would grow and 3.0%.8% and is their core belief

they need to maintain credibly on that. >> if they had decided on the face of the latest emerging market turmoil to change course, than what? >> the markets would have reacted poorly. emerging markets are down 10%. to be frank about it, idled at the fed pays that much attention to that kind of information. they are more concerned with the u.s. data. >> let's discuss the efficacy of quantitative easing. what effect has qe had on the economy? >> if we go back to what chairman bernanke wrote in the washington post -- he wanted to increase wealth and bring down rates. whether he has increased the wealth effect or not, that is debatable. but we will see rates increase eventually as we taper. >> whitey think money is still

submit the banks? i do think that when we talk about leveraging, there is some corporate deleveraging. i think probably money going into the system takes a little bit longer than we expected. >> will tapering me to an increase in interest rates? >> that is the $64,000 question. likely it will increase rates in the longer term. we have to be careful here because on the short end of the rate curve, we might see them dial back a little bit. if we get an aggressive fed action. >> why does it seem as if there's a little conviction in the equity markets? >> you have to take a step back and remember, it is indigestion.

guys --ong-term quad quant guys. what is going on the markets right now? in overdue correction? >> is not a correction. we are only down four percent. >> the technical man, jerry hill. thank you so much.