>> welcome to "lunch money." we tied together the best stories from this news. i am adam johnson. we are going to kick it off with the menu. the ceo of aol gets caught with his foot in his mouth for the second time. vice president joe biden and a fan new york look wordy at airport, but there are other airports that could make the cut for worst airports. in the nation, a college football all-american comes out to all of the world. he could become the first openly gay player in the nfl. they coined believers take out aggressions on apple.

the lego movie is a hit. we are going to kick it off right now with what everyone is talking about. something we have all been through before. >> we are facing another debt ceiling showdown between republicans and democrats. jack lew is reiterating it is time to act. the best and on most recent information, we are not confident -- now confident the extraordinary measures will last be on thursday, february 27. at that point, treasury would be left with only the cash on hand and incoming revenue to meet the country's commitment. the amount oft cash at $50 billion. >> $50 billion, the government earns through that in a day >>. . in10-15,000,000,000 goes out refunds per day. -- 10-15 billion goes out in

refunds per day. washington needs to keep honoring the order to pay the bills and avoiding a default. just like last time when the government shutdown for 16 days, john boehner and a curious position. >> there are about 30 house republicans will not vote for any debt ceiling increase, no matter what they have attached to it. that is his problem. he knows of the end of the day he has to have something on the house floor that will pass with most of his republican members, but he will have to get democrats to back it as well. >> the house speakerall too well. rex mother theresa is a saint now, but if congress wanted to make her a saint and attach that to the debt ceiling, we probably could not get 200 18 votes. >> a little humor. increase thes to

debt ceiling, no one wants to default on the debt. while we are doing this, we need to do something about jobs in the economy, the drivers of our debt. so we are talking to our members, and when we have a decision, we will let you know. >> the last time we had this debate, the republican party demanded changes or would not pass the debt ceiling increase. something that democrats called holding hostage. >> our position is what it has been for a long time, which is we will not pay ransom in response for congress working through this basic responsibility. this is something that has to be worked out in congress. secretary lu has spoken about the timing on this and the need to move promptly. -- secretary lew. we certainly hope and expect that will happen. >> they leave on wednesday

because of the house democratic retreat. they are out all next week. we basically have to get a house offer in the next two days or so or we're running into the crisis deadline. >> congress goes on vacation again, just as the government is about to run out of borrowing power again. house democrats have a retreat thursday and friday the following week. house and senate are in recess. d-day will be about three days after they come back. the ceo of time warner has thoughts on the nation's money trouble and tim armstrong flatus gas. cory johnson aborts a comment. craze.s so far the olympic torch the most popular rob. making sure to get a shot of themselves with a towering torch. number two favorite prof?

the olympic rings. prop?orite ♪

>> this is "lunch money." we are also streaming live on your tabletm and and smartphone. i am adam johnson. tim armstrong's troubles. the ceo has managed to put his foot in his file for the second time in six months. over the weekend he had to backtrack on a 401(k) policy change. the company said they would match retirement contributions on an annual basis. it was really his comments defending the idea that kickoff

employees. he said the company had to save money, because two things happened in 2012, we had two aol'ers that had distressed abies that we had to pay million dollars each to make sure those babies were ok in general. >> there were a few babies that cost them a lot of money. that became an unfortunate aim. as i'm sure you can imagine, it did not sit well with one of those mothers. one wrote a column entitled " my baby and aol's bottom line." it read -- could it have been his mentioning distressed baby? likes the fact that he cited it at all. -->> the fact that he cited it

at all. >> could there be a privacy breach? >> i am not an expert there. i think the mother articulated her point in a very convincing way. i do not think anyone questions the fact that he made a mistake, and he apologized as well. not so much a privacy violation as much as it is tone deaf on his part. >> he did apologize. he is getting used to that. he fired a creative director back in august as low as 1000 others listening on a conference call. he later sent a memo to say he was wrong to do that. the real question, what is the deal with mr. armstrong? why does this keep happening? >> he is the consummate salesman. he likes to talk. sometimes he talks too much. i think that is part of what it -- what is at play.

even so, the company doing quite well. it gets a lot of nice abs with higher rates. in that way it is doing well. >> one man who knows what he is going through, dick parsons. he came to bloomberg today for an exclusive interview. guy.m is a good you would like him. he has good values. .e is just ill-advised >> he slipped up sometimes. >> he does. it is because he is largely an open guy. ff ierms of the latest ga think what he was trying to say is we have made a judgment as a company, obamacare will cost us money, a judgment as a company that that is where we want to put the money. i think that is where he was going.

he just got lost. >> it opens up an even bigger debate about the effects of obamacare. here he is again. >> the reality. we have a great tendency in this things to believe the that make us feel good and that we want to believe. you cannot get something for nothing, right? you cannot get something for nothing. if we're going to cover an extra 30 million americans it will cost somebody something and will cost employers. >> let me ask you, you have opened and reopened a jobs club -- jazz club called mittens. i have read about the process. the middle-class has been squeezed out of harlem. there used to be a vibrant middle class and it is not as presence. isn't obamacare, if it weighs on the benefits you can get as an employee where you are ready

have to work both people and the couple have to work to raise enough money to raise children, now you're not getting the benefits, isn't it contributing war to squeezing out the middle-class? >> i do not know i would think about it that way. beingddle-class is squeezed from so many different directions from so many different factors. >> the president does not want to squeeze out the middle class. it is always one of his rallying cries. >> no, he does not. he'll was once to help out the less financially robust. so it does cost money. we have two restaurants. we have a restaurant next-door. me, you do notto want to put them under the same umbrella. do notid because you want more than 50 employees,

because once you have 50 employees obamacare kicks in and cost you more money. heart of why we did this is because we want to create a model or how you are supposed to do business in the communities. health care for one. you've reestablish a contract with your employees. you work for us, you give us your all, we give you something back. >> you are willing to do the right thing. your average smart -- small business owner will figure out how to get around health care costs. a lot of people running under one corporation will now break it up into six different ones. facts they are just trying to get by. >> it goes back to what we were talking about earlier. if you run the game in such a way -- monopoly where i get all the properties and money, eventually everyone else tapped out and the game is over. what we have to do as a country

is understand it is not that stephanie ruhle is a good person, but we are doing this because it is ultimately for the good of the hole. unless the whole survives and prospers, eventually we will pay a price. obama believeent in capitalism? >> i believe he does. his knowledge about hold -- oldd, the adage of making a payroll is you do learn something if you're in the system and have to cover costs and make payroll and work your way through in capitalism. so i think we have gotten to a place where most people and government service, whether elected or otherwise, that is all they know. most people in private sector, that is all they have done. >> one of the criticisms of the president is he is not reaching

out to people. >> i think in fairness to the president, he has tried. your so tough to subject self to the scrutiny now and make the sacrifices you have to make to go into public service. >> traveling for the upcoming long weekend? we have the airports you want to avoid. maybe cape canaveral for your launching pad. the details on how you can prepare for your very own space trip coming up in travel. ♪

>> this is "lunch money." we are also streaming live on your tablet in smartphone. i am adam johnson. airports are having arrived time in the court of public opinion. >> if i blindfolded someone and took them at 2:00 in the morning into the airport in hong kong and said where do you think you america because it is a monitored airport. if i took them blindfolded to look wordy yet -- la guardia, you must think you must be in the third world country. >> is it really that bad? but it is not

the worst. >> worst airports generally. rating them on checking in, wifi design, cleanliness. laguardia did not score well. philadelphia scoring poorly. we also look that most delayed. chicago's midway, the nation's busiest airport, about 27% of departing flights were delayed. finally, most dangerous. looking at things like incidents on the runway, accidents, things compiled by the faa, this time it is over hair that had 75 runway incidents over five years. that is why it ranked there. .eally the problem is bigger

it is infrastructure. when is the last time you were at an airport that was not under construction in some way you go try tos this quest to improve it, but if you go to international airports, they are much better. >> you will not be using any of those airports if you want a ticket to space. the maiden voyage is fast approaching. tori johnson is getting ready. --cory johnson. and rightry johnson, now this is one of the most enjoyable moments of my life. was not always that way. just a few moments ago, i look like this. i am down in cape and -- cape canaveral to ask. zero rapidly. >> i am exactly the wrong person to be doing this zero g flight. purchased -- they have teamed up with virgin

atlantic to get acclimated to the experience of zero weight. here is how it works. the plane flies to 24,000 feet over the gulf of mexico and goes into a series of arcs. the aircraft climbs at extreme angles of 45 degrees. feels like 1.8 g's. at 34,000 feet, it begins to dive in and equally extreme measure perhaps a minute. in that moment, passengers experience weightlessness. then they do it again and again, and there is the reason it is known as the vomit cockpit. than four percent of the participants get sick. .> on of our zero g guides i will need numerical handholding.

>> these companies are starting to talk about training and bringing customers on board to experience zero gravity. it is really a wide-open market being created now with commercial space. >> that brings us to where we all started. >> [inaudible] in this experience, it comes at a price. a virgin galactic ticket cost to $250. cost six hundred $94 for six seconds. is $11 pering -- second. have their eyes on more than space, tourists and thrill seekers. there is big money moving from nasa. several companies vying for a lucrative contract from the spacesingly outsourced race. >> the private corporation

capitalist space race is on. it will all be private companies now. pre-k's liftoff. nasa paying the russian $70 million each time is russian astronaut hitches a ride. -->> and liftoff. jace -- jeff bezos still in the testing phase for his company, blue origin. he hopes to take three astronauts in the new capsule. the odds of that working, before i can figure that out, we are back on the ground. pay him $5,000 might seem like a lot of coin, but think about the extra perks. you get to keep the suits and the sets of twitter pictures to make you the envy of your friends. can you really put a price on that? me, one giant for leap for bloomberg television. >> one giant leap for a college

player going pro. we will talk about that next. plus, why are bitcoin fans so mad at their iphones? the answer coming up in today's wild card. ♪ >> it is 26 minutes past the hour, which means bloomberg television is on the markets. i am matt miller. today we see the actual trade looking a lot like futures did a few minutes before the open. the s&p really unchanged. the dow jones on the negative side. the nasdaq up about one third of one percent. a couple of individual minute -- equities andfrom commodities, keeping our eye on corn after the usda lowered the forecast for domestic and global inventories, forecasting

stronger demand around the world . they are lower than analysts estimating -- were estimating. looking at apple. carl icahn dropping his $50 billion buyback proposal after recommending investors vote against it. ♪

>> this is "lunch money." we are also streaming live on bloomberg.com, tablets and smartphone. i am adam johnson. today's moving pictures where the video is the story. opposition powers told the country that their verges on -- the country is on the verge of default and said the european union is ready to step in with financial aid. flooding in the u.k. may get worse as rivers continue to rise zandt,ymouth to van strong storms are pending the

coastline. this was the wettest january in england since 1766. star-studded rosters paying tributes to the beatles last night. the 50th anniversary of the first u.s. tv performance on the long -- on the ed sullivan show. paul mccartney and rico taking the stage to close out the concert. pulled in 74 million viewers. in the nation, michael sam had a special -- special announcement this weekend. >> i am not afraid to tell the world who i am. i am michael sam. i am a college graduate. i am are in -- i am african american, and i am gay. >> that is big news. more and more athletes coming out. he could become the first openly gay athlete. the question, how will this affect his chances on draft day? heone scout already said might not get drafted at all now

. >> now? was he a player who was a real contender? >> he was projected as a nerd or fourth-round pick. some general managers say he was an overrated layer. if they are right and he was a fifth round pick, is he now worth the trouble and headache of this green tea and attention? >> trouble, headache and currency? i am not accepting that. like you do not have to. you are not in the locker room every sunday. this is about winning, that is it. anything that takes away from the focus of two you know your playbook, showing up on time, anything that gets in the way of the nfl, coaches do not like the nfl does not like an coaches do not like. >> you do not think these nfl players have tons of personal drama here and there? >> you want the mindset of an

nfl player? >> tony richardson. a accomplished player. on around for 50-60 years. getting his mba and did not tell a soul. did not tell the owner, did not tell the coach and did not tell his teammates because he did not want everyone knowing he was thinking about something else in his spare time. >> interesting observation. the anonymous commentators could learn something from sam. he put his name on being gay. why won't they put their names on criticizing? eric holder announced the justice department will soon grant same-sex married couples the same legal rights as heterosexual couples. >> a new policy memorandum that time in the first history formally instruct all justice department employees to give lawful same-sex marriages full and equal recognition to the greatest extent possible under the law. as a result of the policy, the

department will recognize that same sex vouchers -- spouses should have the same legal rights as all other married couples, including the right to decline to give testimony that might violate the marital privilege. >> in addition to changes as -- at the justice department, the senate is considering a bill that would require the defense department to restore benefits to gay members of the military who have been previously discharged for being gay. ofwill explain why fans bitcoin are taking out their frustrations on iphones. plus, look at the lego journey from playroom funds to big-screen success. that is coming up later. ♪ that is me. relax, everybody, i am here. batman. >> who are you here to see? >> i am here to see your butt. first try.

>> my fellow master holders. -- builders. >> what is happening? >> you are special. ♪

>> this is "lunch money." we are also streaming live on bloomberg.com, your tablet and smartphone. i am adam johnson. the point is having a tough few days. last week the price drop -- dropped 30 minutes when -- 30% when they had to shut down for technical issues. as matt miller explains, this was the tip of the iceberg. >> russia came out to say it is basically illegal to use bitcoin. china has also had a war, regulatory war. here in new york we have a number of regulatory prosecutions going on. piratee the dreaded

roberts gained held in new york awaiting trial for the silk road operations. on -- in miami they have the first case against people using bitcoin for money laundering. >> over the weekend apple disabled the popular app. , and i am is brent here to destroy my phone five. -- my iphone 5. ♪ >> the block chain ceo shares his reaction. >> i think it is important to recognize the reaction from the community is completely buried. there are people upset with

apple's move and have been demonstrating frustrations by destroying phones but also there are people seriously questioning apple's motive. at one point they had a wonderful application -- advertisement out to think peoplehe innovators and who thought differently. a long time ago people questioned apple's ability to think differently and today they're using power and control encourage -- to serious innovation. are not of people shooting iphones but are switching over to use other devices, android or wallet on chrome. it is interesting that apple without any comment has blocked this technology. for some reason apple is against it going. i was wondering if you knew why it is or if you could guess. the top three reasons. >> that is a really good

question. i think it is fascinating apple would surrender to google. if i was watching the companies, i would bet on google going forward. we are already seeing a large amount of people switch. seen an uptick and downloads the last couple of days. this should not be a big surprise. thee has telegraphed intention to build a payment system on top of the credit cards they have. it really will not be innovative at all. , thessues with fraud issues that come with credit cards for payments. bitcoin represents a real threat to revenue stream. we are watching intently. i find this an out of body experience. reporting today that florida is a state within the nation who has become -- begun some form of

prosecution against two individuals for money laundering. exact thenow the tales. every x number of days or weeks there is a criminal or civil threats against a well-intentioned bitcoin industry. how is the coin and supporters going to respond to that? >> i do not know the specifics around the case in florida. it sounds like you had individuals trading at very large volumes of asset. just like if they were trading huge amounts of gold, they would need to go through compliance process. i think the news gets exaggerated in those cases. >> building blocks of success. he will look at what is behind the appeal. that is coming up next. lego took it's time building the company brick by brick. we will look at that coming up next. ♪ >> this is "lunch money."

we are also streaming live on bloomberg.com, your tablet, and

smartphone. i am adam johnson. the lego movie" took in $69 million this weekend. what did it take to make the movie go purdue's or of the film and producer enjoins -- explains. -- what did it take to produce ? the filmmaker and producer joins us. play is a toy we can together. i thought if we are playing together as a family, why can't we make a movie the whole family can go to? >> what is the biggest difference between making a movie about lego versus taking a sherlock holmes film? >> this is my first demo -- animated movie. before that.action it took five years and start to finish.

it is a really gratifying experience at the end. being the bridge between lego and warner bros.. what do you do in that role? i know bloomberg businessweek highlighted the kissing scene. do you keep it in or take it out? tried hat that i wear, i to be the brand stewards of lego and protect their brand. i have gone to the theme parks, the original factory. i really get to know who they are as a company. at the same time, i know warner bros. well. i have produced a lot of movies for them. ultimately it is about the movie . brick thomas blago's the second largest in the world.

your is a look at the journey. >> lego is probably the most popular toy in the world. war than 560 billion people -- pieces have been produced since the first and denmark in 1949. it is the second largest toy company. only mattel is larger. they are still owned by the family of kirk picks -- kirk christiansen, founder and pointer of the brand name lego. wooden planes and buses for children, he'd bought the first last big injection molding machine and denmark and began aching small recs that's not together. the design was an enduring success. in fact, any lego brick made after 1958 will still work with pieces sold today. for decades, the prime customer

was a nine-year-old boy. after suffering a major loss in 19 98 and teetering close to bankruptcy, the company bounced back in part by it peeling two boys and adult fans of lego's. the profit grew faster than apple between 2007 and 2011. be more legoe will people than real people on earth. >> that is scary. a book onnson wrote it. he explains how he did it. >> the whole movie is a metaphor for the lego company and what they did. they told the story. >> what are some of the details? how did they avoid bankruptcy? >> they went through a time in the late 1990's where they were convinced that kids were going to go to online play him a

virtual play experience, playstation and nintendo. they went on and experimentation time between 1999 and 2003 when they encouraged designers to think outside the box come outside the brick to come up with the next great play experience. what they learned it's virtual play experiences do not disrupt as a goal plate. withif you let kids play lego games like batman, indiana jones, they want more rather than less. rather than fight it, they have rolled with it. they are increasingly trying to tell stories that get kids involved with the brand and make them want to play with the toys. what they did is it is not just over onebut they have dozen cents in stores this week, which have different things that have appeared in movies, different vehicles in verse.

they also have a tie in with google called building with chrome. you go onto a web app and meet up with the characters from the movie and teaches you how to build online in this app. to bring in these different things together to get hints involved in the brand, which they know will lead to selling more bricks. >> a car made entirely of legos, even the engine that runs on compressed air. ♪

>> it is 56 minutes past the hour, which means bloomberg television is on the market. take a look at what the indexes are doing with the s&p almost no change on the day after the biggest two-day gains last week. the dow jones also very little

changed. off 21n the downside points. the nasdaq gaining about a quarter of one percent plus 11 points. take a look at silver and gold as far as the commodities reversed. silver futures up about .7%. gold futures up .9%. over the past six months you can see a chart of the past one year . you can see that precious metals moving solidly down. gold climbing for a fourth straight day. rally. pretty big the longest since august. nasdaq decline for a fourth day with mild weather forecast. with sincerely -- we sincerely hope that is true. take a look at the individual movers and equities as well. dick's sporting goods, fourth-quarter same-store sales jumped seven percent, well ahead

of analyst estimates of an increase 3-4%. the increase in earnings guidance following the news. shares gaining 2.9%. shares of hasbro bouncing back from earlier losses. but toward maker known or brand such as monopoly and my little pony reporting lower than expected for early. sales of boys products fell 14% but in the girls category rose 19%. the holiday sales the weakest since 2008 but people are optimistic about the girls number. shares of lowe's falling by the most since july 2012. reporting a wider than estimated fourth-quarter loss, due in stemmingt from losses from the production business. that is not the home retailer but the financial corporation.

the s&p material sector has had a strong fourth quarter. the 31 companies that make up the group have beaten estimates by 15%. for more, adam johnson joins us with today's insight into action. >> a total disconnect. a material disconnect. time for insight and action. here is the data. look at the extent to which the material sector has beaten estimates over the past quarter. 16%. four times what we have seen out of energy, telik -- tech and industrials. incredible and you think that expectations were that low. here is why the disconnect he comes poignant. look at the difference between materials in the s&p 500 in yellow. they are beating, doing significantly better and stocks

are still lagging. true year to date and over the past year. at what the companies are saying because the disconnect continues. over at nucor course, bank of america is adding to the number one best, most say it hsbc upgrading after the earnings. upgrading after the earnings. when you have a disconnect like that, earnings estimates coming in here, stocks down there. you can see how companies respond. finally, take a look at the 12th companies where earnings estimates are going up and stocks are still down from montana -- mosaic. i do not have time to give you all 12 but i will post them on twitter. >> thank you very much for that. we are on the markets again in 30 minutes. bloomberg "west" is up

>> live from pier three in san francisco, welcome to "bloomberg west." our focus is the