>> welcome to lunche to money, e we tie to better t -- together e vest stories and news. .appy birthday, facebook how far the social network has gone and where it ne going. in energy, the biggest maker of turbines makes a profit. greede love of money, how how drove this man to leave wall street. milano goes into businesso with pro soports.

microsofnamed satya ieieexecutive.the nexdellief thn we firstwe f reported this lastk on bloomberg televisioombe now it is official. about the choice of satya nadella to be the ceo of microsoft. to innovate and move forwvees,we >> bill gates welcomi satya nadella. this is his baby. the next chief executive has to e has to on his game. nadella has the right -- the various business groups hene heworked on, he has driven novation. the opportunity fory microsof greater than ever before. taking office and

documents, finding information, securing information, or even building a new platform, a cloud catform that connects to different devices. >> it turns out bills has some news of his own. >> i am thrilled he ham thred me eto step upp and increase the te i spend at the company. i will have over one third of the time to methith product groups. it will be fun to define this next round of products working together. reported earlier, is he ish we stepping aside as chpingan and nd spend more time on oduct development. he will stay on the board as an a and will continue to run his philanthropic organization. former ceo the symantec and will become chairman. >> after reviewing the

candidates, sasha was our first and unanimous choice. he has th experte and product experience we were looking we we >> why stop there? e?see -- steve ballmer, we know you have something to say. >> i'm excited to be part of announcing satya nadella as our new ceo. eo.he has been a veteran at i know he willi know lead the cy into the future. that future will be bright with and impact growth, in the market. i love this cpany. -- today could not be a better day. >> microsoft rollingroll out ale stops and video for the new ceo. we even got to hear from side to himself -- satya nadella

himself. obstacles remove that allow individuals to innovate. and then focus innovation on things that microsoft can uniquely d i think about the core of why i'm here, is about impact. in thftware powered world, what is a better place than microsoft inin terms of being ae to take all of this human inential that we havehave 130,000 people and apply it to a world that is rapidly becoming more software driven? this opportunityortu is what drs drives and got me to take this - raise my hand for this job. -- from ther them guys at microsoft. let's hear from the analysts. it is a good match.

a good thing for the futureg fo the company. they are doing the safest thing. they are saying, hey is a guy who does n epresent the past. he is not a pc guy. he is not a guy that has been running office prunncts fofi year s wedded to the s architecture. he has pushed cloud services sde of microssde that is the future of thefutu company. >> they're going with the guy down the hall. to changeallyey wanted things up, they would have gone with an outsider. it feels like he is going to run this liken insider withome thomeeaks. analysts take on the della -- on satya nadella.

says that -- this outfit says that he can hang with mark zuckerberg. birthday.ook'ss 10th how's for stealing their thunder? plus retail execs are telling congress hubby got hacked over ed ovethe holidays. that is later in nation. at ♪

this is lunch money on bloomberg television. also streaming on bloomberg top --.com -- bloomberg.com.

it isbook's 10th birthday. to celebrate, thehe company posd videos of 10-year-old kids having a birthday. facebook is a networkis a of 750 million daily users. here are some other key es.est ♪t the facebook wastarted in 2004 as a harvard only social network. by the year's end, it had one million active users nationwide. the success prompted the founders to head west to silicon valley. it became just facebook. it had grown toown to support 80 college networks and ended the year with 6 million active users. by 2006, they opened the doors to anyone with a valid e-mail address. added the newsfeed, the

luring people back on aple babar gulabasis. gamesgames like scrabble us wera big hit. app debuted. the like button was introduced in 2009. mark zuckerberg challenged himself toto wear a tieor the whole year. facebook supersized in 2010. users increased to 60 million. top one user ship billion. the company went publicc at $38a share. by 2013, they had saved more than 300 petabytes of data. perspective,nto

ive,ery petabytes stores 10 million photos. this ye celebrate0 years and continue to grow. separatee -- zuckerberg's next challenge is making it through the next 10 years. >> ahead of the 10th anniversary, we sat down with withrk zuckerberg. erg.they talked about the futur, including a new inp that allows read and write the news >> they will be producing lots of independent standalone apps. th first one is cold paper. alled pap. around a single way to share. he seems to be a t more flexible now and understanding thethe diffent people and segments -- they have different wa want to share.

they want to create lots of everybody.ts that satisfys thats this servi 2is so ibig, 1. 1 1 billion people, that it is hard to move the ship along. that is part of that strategy. change th to erery time they goery tieep. eep.>> we also talked about the search tool and transition to mobile. products developed for desktop they areres -- computers. c e giving up the initiatives. thee just try to focus more on mobile phones. that isre the users are increasingly turning. >> facebook's success hass su td richest trson in the world.d not the only billionaire. the bloomberg team found ferg te more. ♪

♪ ♪ ♪

>> the big reason they are rea h is use of the stock. after a rocky sarter acebook is up 65% as anpo and 185% sipo the low in september of 2012. we will take you inside l inside that thing. that is nextn energy. plus a trader who quit because 3 billionn -- a $3 million bonus was not enough. this is video from air france. they ting their fleet ir fleetth s ir fleettend into full llbeds. they have high resolution tv screens. the largest airline is playing catch-up in europe. ♪

lon foren a bp. we learn that fourth-quarter profit slipped and they face unknown billions of fines under the u.s. clean water act. to raise another

$3 billion this year. >> we have three major products coming in towards the end of the year. we have had two projects coming azerbaijank, one in and another in the gulf of mexico. tohave a clear line of sight tgetting $30 billion in 2014. >>is the outlookok for this had question mark >> we three sizable commercial discoveries in december alone. one in and goal and one in brazil. >> the danish company had is close half its factories and cut postedsted the first earnings gn since 2011. >> we have a rnaround plan. and it comes to investments

free cash flow. -- pre-cash flow. >> you have announced a share issue. why is that? >> that is to increase our ctiveness and have a a soldid financial foundation. there were production tax credits in the united states wh ow expired. how is u. ness handing out with that asackdrop?p, >> we see a fairly stable market for 2014 into fif -- 2015. we hope to see more demand going goingrward. ngrwar>> therw>> new turbine ie world's bigges he whemore.ndonf bureau, we hear

♪ rbine travel 600 a warnond -- a why is it so special? at eight megawatts, it just became the most powerful in the therld. eed tight. -- height. to statue of live atue ease -- statue oflibeies at 220 is-- that is where it can most effectivel moswork, converting stronger and more d mopersistent wind. the bigger the better. more power means fewer unnecessary costs. osts.if one of these giants goes

off-line, ths even mores energy lost. but machines like this -- manufacturers like vestusope to brdown the costs of renewable energy. t gibson, bloomberg. p is focused on oil. festus is focused onsed wind -- vestus is focused on foc wind. >> >> here's an idea from our foundation.the national science onresearch they are serking on r fungi fuel. spent 15 arleading the world and studyingrl micro orsms that liv inside deplants. he and his team thinkhese guys

ng fossilr euros- fossilfossili. some of the ingredients ofe inr crude oil can be made almost mter of days or a few weeks.a, not 100 millio -- mlion years. they grow on waste. we don't need refined sugar or starch or corn. simulate the conditions of an ancien of anst. circulatellowed to to much like we envision temperate rain forests from 100 million nars ago. >> are trappedrbons in layers of shain layers they ds in it, drive ds d then heated in an oven. an oven.it in and o

>> these are the hydrocarbons hn one of our tests. >> he needs a few more years to figure out how to increase his -- toto read effects increase his yi it would turn-- fungus to fuel and leave a better taste in everyone'inmouthon as we try thove the planet forward. >> you can see the latest big on bloomberg west at 6 p.m. eastern, 3 p.m. pacific. >> how safe is your personal information? go inside the will lth. c-- hill.apital health. cal and alyssa milano is scoring big offscreen. her latest venture later. ♪ ♪

>this is "lunch money" o"lunch erg televibloo also streaming on your n yotablet and smarttablet i am adam johnsoi am a the video is the story. i thousands of people have been affected by days of heavy rain in bolivia. boliv the flooding in the northern part of the country has left many homeless. ores and shopsoresbeen gethe recent storms are part of bolivia's rainy season, and that can last until march. meanwhile, in austria, it is snowing. blanketed the southernted thof try.co some locations have seen a couple of jys.f snow in just a called in to help.has been

fda has launched an anti-smoking campaign aimed at teenagers. $115 million media campaign is the gov nmenis te juste ju -- the government'sover largest advertisement campaign yet. one comes in the form of a bully controllin ung smoker.un e others are even more graphic. >> a pack of menthol's. >> not enough.ugh. >> what does a pack of menthol cost? your teeth. cigarettes can make you more likely tomoe your ty to >> see you again. >> that is intense. the fda has the new authority th regulate tobacreranted under a 2009 bill. the campaign filed a 2009 report fsueon genera ramating 3000 teenagers try

their first cigarettr firs day. nation toda we head to the hill. senate banking subcommittee ard fromrs and retailers at odds over the years show accountability. the stakes are high. 40 billion in revenue earned by credit card and 3 million and customer transcuons. pin and chipchipime for thest tp technolo if the goal is tif there data d secure fraud, we must at a minimum do both. both. >> thanks are committed to doing their share but cannot be the sole responsibility of the issue. all industry participants have a vital role ay il role ng the regulatory gaps that haveath ated the system.ed we stand ready to assist in that effort. now, there are state laws but no standard at the federal level and no civil penalty. while we have tools and are

using them to enforce -- to by companies it would bedaures, , extremely helpful to federal law requiring data security notata security nt , notification. >> tryit the no our obligation to disclose when you have been breached, i think sorting that through is going to be a chaing to ec a cha thereere ar a a so many attacksy day. s get concerned about isrned a you do not want to create the color code system, which has already beenalread to ignore. there has to be a materiality. >> i a ith you. on the other hand, if of information because it is in the heart of christmas shopping season and might affect their bottom line, they neom to be toe hung out to >>en. s day targets and neiman

marcus a estifying today before the senate judiciary committee. both suffered data lapses. >> the important reality is went suffered a breach. all customers are facing threats from cyber criminals. s.several otheies have attacks. to similar to si to prevent this from happening again,of us can go iof u alone. we need to together. >> exactly what are the the retailers face regarding security? >> omer space the protection individual data, and the second is how they handle the data that they themselves have, privacy and the . on both componthey are heldey to a very high expectation. tation>> a system anal>> a swhas will cal the grwillarity the he cyber debate. can i be confident the systemsms are protected now? they got into target, neiman

marcus why 't they get into local liquor store or whatever? facebook? >> i think it is very clear the game keeps rising. can you be confident that they are getting better and those ng to attract it are getting res an ongoing struggle we will s play out ll sears and decades to come. but the expectation that consumers have is very high. e ce has generally enen forgive if you see companies that make repeated mistakes, i think you will see a real erosion in trust. >> the third day>> the tings are scheduled for tomorrow. is he a criminal or a victim? we will lookwhat i be ahead -- what might be aheaddr matthewththmathoma. a $3.5 million bonus was not enough for this th trader.

e former wall streformer wall sr wealth addict broke th a next. smit the first defensive ve the trip.

s is "lunch money," streaming on bloomberg.com, your tablet and smartphone. beginse jury deliberations, the former head fund r being tried on tried onof ins. worth 5gedd scheme, million dollars. prosecutors say he is a scapegoat. invoked steve cohen wheneve con in the closing arg thet yesterday, sayinyeit is not fair convict marto, essentially roadkill in the government's attempt to get cohen. >> martoma did not take thed n stand. what do you think about tt? send the best

message to the jury. if he did not do anything wrong, why did he not take thd heand. his defense has followed a veryr classic insider defense trading playbook. they have tried to argue the witnesses are dishonest and unreliable. they have to argue the rmation he tradermation are was already public. alrea >> what was th>> what t case>> w >> the evidence has always been ry strong. they seem to stick to the toics. are a little touar for martoma to overcome. there are two doctors that took the stand. they said they gave him ionorm they were not supposed to.su the information.the infoded denc he could flip even after he is convicted. >> now on to a story about a hedge fu der who left the sidewalks of wall street.

sa wrote an e ti e mselfn from wealth addiction. "i started to see wall street r with new eyes. traders despise anything or anyone that threatens their bonuses. nuseever see what a drug addicts like when he is used up on junkn ? he will do anhng to get a fi wall str like that." >> the way i was acting with impacting people in a negativene way. i take responsibility foesponsil >> but is wall str but i blame for that? im not first of a blaming anybody. second of all, this is a way bigger thing than wall street. the response i got from all over the world is something cultural, about the red carpets on hollywood, the pro football players that make all this money, the zy focus on the s lottery all the time. >> sam, what do you say to thdo folks that are watching right now saying to themselves what a jerk

we had such a good thing going. sinc nancial crisis not so good anymore.d the degree that he a department and boards of directors are looking at sam will onlyllow, it get worse right now. w.at do you say to them? >> you m to the wall street people? >> yes. >> my story is just the story of one guy. when i was on wawh str wasi used to believe the issue of whether i was going to get paid oneto million or 2 million was t 2 m most critical thing in a world. one of the things i came to see, and not because i am a moral or the most honorabth guyin toe to a teacher wto teaching me different things and i came to the world from a different perspective to say whether or not we are getting paid tgetting n wallwa street is less impreetnt than peop are really struggling out there. >> so many pple on wall street e mad about this. >> some of mbest friends are on wall street.

i ami staying with my mentors right now. >> he is funding your charity. >> i would tell you what, if there is anybody in the world dyat has taught me generosity and kindnrosity ais literally that man, who you know. and i love him. i love the people on wall stre look, i saying i was addicted to money. i am saying i was using money and power ill my soul. that is all i am saying.in however they take that, that is sort of their busirtss. >> he has since founded ae nonprofit that educates and supports families trying to eat healthier. you can watch the full interview on bloomberg.com or our award-winning app mbergtv plus. we will hear from the under armour ceo on getting into the shoe game. even

alyssa milano wants in on the action. explain next.

>> this is "lunch money." weare also on bloomberg.com, your tablet, and smartphone. i am adam johnson. want apparel? we are talking sportswear. under armour is giving nike a run for its monerun for here is the ceo. not a story about the past 10, 20,paars but the but thext 10, 20, 30 years. i want bettei saying i wantan it started with our first product. a cotton t-shirt.co we have en innov have er since. the latest innovation is the first shoe completely made in an apparel factory. and applying that to the foot. we have one of the most compelling running shoes t runni has ever been built.

>> tell me more.>> t >> this is the new performance shoe a lightweight shoe. it has been picked everyone from debut totold best competitive macone.ne rand that is trying to cross over to the shsr that can easily be a footwear company as well, it is a great day. the product is terrific.erfic. >> when it comes to sports t is usually left to the big guys like nike and reebok. but one actress out to change all of that. alyssa milano haalyssated her own line. the big leagues are signing on. stephanie ruhle sat down withe her to ask her how she got into the business. >> i was sitting at dodger stadium and was cold and wenten into the stadium shop and could not find anything cute i would want to wear that was not pink.. the league had the philosophy

pink it and shrink it, and ,women will buy it. and they did. that was essentially the only thing o here for women. i tched the idea to major league baseball first.aseb they have the exclusive for thex first year.firs in the second year, we had allar of the other leagues. it has been about seven yen ab now. eep growing,hich is lovely. we just came out with nascar, which is really whol. it h n great. >> d consider this an endorsement orusiness partnership? >> definitely a business partnership. mlb originallymlb orme up with g3 sports by carl banks, the xt giant.xt they are a manufacturing compang that has licensing t hhelp clients and they really understood the whole fashion sense of whawas going for and has the factories to be able to pull it off. i considered a partnership with the leagues.league

>> what is your role in all of this? > more than they woule than t to be. everything fthe design photo shoots to final say on colors. all of it. >> who is your audience specifically? women who are wearing this gear to games or working out and it? was part of mywas nart concept, because i could not wrap my head arwrap my fact that you you some dude in du his yankees t-shirt and cap and was not necessarily going to a baseball game. i figured the only reason you neve n walking down the street in her fan gear was because it was not flattering and did not feel good or sexy in it or it was not fashionable.io so part reating touch s how can we not only see women in the stands wearing it but also

out to dinner in a great hoodie and jeans like you would see them wearing something else that isranded. our stuff is not just activewear but fashion that is sports licensed. just lik u would wear a great sweater, we have a lot of knit.t you would wear a swewoer witar the new york giants logo on it dodgers logo. >> you can watch the full interview with alyssrvielano online or on our award-winning ipad app. you won't need high-techt sportswe for today's mystery meat. it is called fly boarding. ♪

56 minutes pt the hour, crumpton. let's gets you caught up on wal street. a reverse fortune on wall street, stocks advancing, the

s&p 500 rebounding from the biggest drop since ne. investors assessing data that showed factory orders fell less than that and made it december. the s&p 500 ise up 1.5%, finishing at 1755. 55.the dow jones also rebounding after yesterday'seste loss of 30 the dow finishing the session. let's see, half a percent, fishing at 15 445. the dow ht h almost 1000 points so far this year. the s&p trading near a two-month low. is there more downside to come or is it s e to buy? adam johnson takes a look. foret's enter this, timetime insight in action. first, a context thanks to our notes that since 2009 there has beenn a tal of

18 declines. xtxof a bullconte market, two were down 10%. that was ugly. sixently, we are down pewe have seen this before. it is not that bad no we have been here before. we ne to quantify how bad the selli has been. youyo look at the percent of stocks in thp 500 although their 20 day movthg average, they are seriously oversold,usly right now, look at this. most of the stocks have been moving average.above abov ab thy what is interesting,tere as youe up the same data with the s&p 500, every time we have been oversold, it has proved to beasr buying opportunity. so you see how that lines up? same thing with the volatility index, the vix. every time you have the spikes in volatilityoo, they lined up with buying opportun bies in the

market. onlyu want to look at the -- you want to only look at the indicators? it looks like maybe we can bounce>> adam johnson wi jightn action. treasuries, the 10-year note r nodeclining r thecl first tin three days, speculation that thshed yields to a three-month is and weaker u.s. d losing momentum. note, you can see, the thatyi 2.6%. 2.6%his morning on bloomberging loombetelevision, bill gross sad fixed income mightxed erd eret t ormerpeal. >> bonds are back.nds they are notll the are n back. i doubt they will dot to the ofof 16, 18 months ago when which interest rates were at one posive percent. bonds have a stableition in almost all portfolios, if only market, i am markn.

crumpton. on.