. >> the company is turning 10 next week, and it is also on the cover of bloomberg businessweek.eo mark zuckerberg recently talked about the big day. >> the first 10 years of facebook, and one of the things that i remember from really early on, i had one of my friends that i used to do most of my computer science problems with in school, and now he works at facebook and runs most of our engineering team, and i remember after releasing the first version of facebook at harvard, we had this conversation where, all right, it is awesome that now there is this utility and community at our school, but clearly, someday, somebody is going to build this war the world, and it did not occur to me that it would be us. >> yes, actually, it was him, and biz stone got a chance to sit down with the ceo, and here is his take. >> here are the things that bloomberg learned from mark zuckerberg on the eve of their 10th anniversary. three big anniversaries this year. facebook is turning 10, he is turning 30 in may, and it is the 10th anniversary of his date with his wife. such milestones. a lot of tim

bloomberg businessweek rad is here.johnson, our editor at york.from new >> at amazon, is interesting to look at sales growth. overall retail inching forward. amazon is going to be 20 plus or more. prime is so powerful. it gets customers to spend more. it will be interesting to see if they say anything about it. are they leaving that growth cycle, showing that profit and reconnecting the ability to make money, or are they still building fulfillment centers, and how long will their shareholders allow them -- >> the worry about the bottom line, cory, what will you be watching when it comes to amazon. it has always been about tight margins. a long-term view seems to be clear. >> he wonder if there will ever be a quarter where they break up the service business and finally tell us exactly how big that businesses. estimates are anywhere from $2 billion to three or $4 billion. we will see if they break that out more clearly. right. the profits, it is fairly amazing the path that wall .treet gives this company colin has a great

to read the latest issue, and download the bloomberg businessweek plus app.ift to looking at home prices because sales launched in december by the most since may of 2010, but on the same day blackstone announced record earnings for my in part due to real estate strength. bob rice from tangent capital partners. there seems to be mixed signals. a lot of analysts say it is the weather. >> i love the explanation. ills.covers a lot of >> it also indicates something about the analysts, because these numbers were far worse than even the worst analyst rejections, so the explanation -- projections, silly explanation implies they were not aware of december whether until today. when hard to dismiss this you knew whether would be a factor all along. >> weather, affordability, i would have to imagine is in the mix. mix,fordability is in the but in a way i think is troublesome. typically, you think of affordability as mortgage rates rising rapidly, and that is making things unaffordable. >> they are still low. >> exactly read they're still . they're-- exactly still very lo

"bloomberg businessweek" with nba commissioner david stern. >> how to manage an enterprise that continues to grow. every successful corporation has to deal with that because they are going to have so many markets crawling out for so much development -- that -- so much development. we had that when we were 24 and now when we are 1200. >> we will see what happens on february 1. >> i feel like i have some chuck e. cheese all over me now. we are in different parts of the newsroom. best buy plunging nearly 30% as the giant faces intense competition from online retailers such as amazon.com. joining me now to discuss what happened down what's ahead is ronnie moas founder of standpoint research and craig johnson, president of customer growth partners. what happened at best buy? >> it's a company with a great history and a great future. the present is not so good. it's a very competitive industry. margins are tiny and it is not managing the business that well right now. it is suffering from what we call the tear any of the installed base. these giant behemoth stores that they need maybe half the s

zuckerberg on the cover of "bloomberg businessweek" this week, on newsstands. have a fire alarm going on in the building. we will continue as our good security staff takes a look at that very large bloomberg campus here. futures, -15, dow futures, -29. markets on the move. can said action and emerging-market distress cause a bear market in u.s. equities? the underlying debate is simply pure economics. citi private bank, someone who smelled economics into corporate profit and investment. wonderful to have you here. >> fire alarm with whack fire alarm -- >> fire alarm in the markets. >> what did you observe in turkey and how didn't read down back into the united states? >> the issue is an emergency rate hike is hardly an ideal rescue package. when you think about what has been done in emerging markets to react to the stronger underlying ng ofh trend, the taperi monetary policy by the fed, the removal of stimulus in the developed world, difficult adjustments need to be made in some emerging markets. >> let me go to your wheelhouse. when we see those adjustments and

getting the year started with felix gillette of bloomberg businessweek. google won everything, didn't it has been an interesting year. close to 50% of the entire business globally. they get bigger and bigger every year. obviously,they are that is a big customer for them. one of the biggest if not the biggest. >> how far along are they in the advertising, creating a story-sponsored content? i do not see their name associated with that. >> if you look at google, the advertising experience. >> i really get upset about. i love your existential dilemma and goal for the year. we will talk about that later. i going to start liking digital advertisements? >> hang on, i think they are getting better. big pop up get these ads that everyone hated. now i think they get more targeted as the data gets better. i think the native advertising, the sponsored stories are getting more creative. >> will free roll ever go away? >> no. lex it drives me insane. the market is growing and growing. how good was the hockey game yesterday? >> it was outstanding. conditions a little w

. >> bloomberg businessweek's sam grobart. flying today. ♪ >> will come back to bloomberg west, i am emily chang. investors seem to be pretty happy about pandora's new strategy. shares have hit an all-time high. this is after pandora announced it would provide ads only to toteners in car specific people driving or riding. jon erlichman is on the ground at ces in las vegas. why did it take so long? >> it is funny you should ask, i am going to ask one of the guys who made that a reality. emily's question was the process of getting to a point where you it say -- you are using , andra, -- using pandora there are specific ads. walk us through this process. talk about the road it takes. >> the added partners are ones that are very familiar with radio advertising. they are able on -- able to understand the importance of using that captive audience in the automobile and adding on the targeting layers. opportunity.iguing >> it is not like flipping a switch. facebook talked about ad revenue. pandora in a way is doing that. probably a switch. >> we hav

on the cover of our new issue of "bloomberg businessweek."ok into the question of ceo succession. is thatinteresting here you look at what is going on with david stern and how that is an example of successful ceo that of it -- of a successful ceo. >> they did this and a gradual process. they build a consensus over time. while they are not a publicly traded company, it is still an example. they work very much in the world of large corporations. espn.partners are the revenue is $5.5 billion. >> even though david stern's title is commissioner, his job is that of a ceo because he has shareholders to answer to. >> that is what we talked about. his like the commissioner as you think of it. now the league his immediate property. the that means the ceo job is going to be managing merchandising and marketing. the first thing they're going have to do is manage tv deals. we sat down with the brooklyn nets owner in london to talk about the key ingredients to winning a championship. >> you need very good professional staff. only with money, it is impossib

the sochi games, the topic of this year's bloomberg businessweek. ♪ >> good morning, everyone. eillance." cristina alesci and erik schatzker it are with us. >> the biggest change for pilots in a half-century. restnteeing pilots more and how much time they can spend in the cockpits. secretary of state john kerry is back in the middle east, meeting with israeli prime minister in benjamin netanyahu, trying to work out a deal with israel and the palestinians. he will also meet with mock mood of boston. -- with mahmoud abbas. state workers in illinois are suing over plans to reduce pension benefits will stop last month illinois legislature approved a bill designed to fix the nations would increase the cost of living benefits for some workers. spent time saying that illinois or chicago is not detroit. i don't have an opinion on that, but there's a real difference there. -- peaks to >> the illinois legislation needs to find a way to fix this. that's all they have a plan, they do have a plan. it should not come as a surprise to anybody. their retirees themselves, potential retirees, hav

read about it in "bloomberg businessweek."olf, ceo and founder of 32 advisors, former chairman and ceo of ubs americas, adviser to president obama. joining us, a very special guest, a man who has been quite dizzy. new york attorney general. office reached an agreement with blackrock stemming from an 'svestigation into the firm access to nonpublic information. with the mathew martoma trial, everybody wants to know what is going on. what happened with blackrock? andlackrock had the largest most survey and the history of financial markets. tenant of thousands -- tens of thousands analysts providing them with information. they had the intention of getting information so they could from the market. they would go to an analyst before they issued their next report. they would ask a series of question that were clearly designed to find out what would be in the next report. they took all this data, a group called strategic equities, a quantitative unit within blackrock they acquired when they got barclays capital, would aggregate the d

first up, bloomberg businessweek cornered dan aykroyd to find out why "trading places" is the greatestiness movie of all time. >> everybody knows that "trading places," which turned 30 this year, is a classic american comedy. i would say it is one of the best movies american made about american business. >> i cannot think of comedies about american business that have been successful. >> when you first got the script, did you know what was happening at a financial level? >> i lived downtown and near the world trade center. i understood enough about it. >> by low, the sell high. fear? that is the other guy's problem. >> what i did not understand was that in the pits mechanism of trading. i did not understand the response system. when i got in there with the guys taking the orders and learned about it, we became infected with the enthusiasm and adrenaline and believed we were there. you can see us in the movie shouting it out. we were trying to replicate the fury and frenzy that happens and that setting. >> that is entirely replaced by terminals. >> exactly. >> it is very complex at the e

read more about it in "bloomberg businessweek."ladimir put in is trying to assure the international community on the security measures. >> we have adequate means available to us through the federal security service them of the interior ministry, armed forces units that will be involved in providing security on the water and in the air. if necessary, all those tools will be activated. the job of the live exposed is to ensure security for participants and the olympics and visitors. we will do whatever it takes. >> we sat down with the russian deputy prime minister in davos and he says the country is ready for the winter games. >> we have 40,000 security people. we have collaborated with our foreign partners to provide for better security. i believe we are prepared. >> lots of reassurances but u.s. lawmakers are still skeptical. >> all the briefings i have received from the rate intelligence community to the fbi, they indicate there are serious concerns. they say we need to do a lot to step up security. >> i am concerned about the sta

this on "bloomberg businessweek" as well.ler is here, edmund phelps is here, with all of his work on employment, and nouriel roubini is here as well. of you have a mystery about economic growth. where does economic growth come from, and for our viewers and listeners who are struggling, what are we exactly waiting for to jumpstart back to good growth? >> economic growth depends on -- investment in human and physical capital. it depends on technological innovation. when the things that may happen in the future as we have lots of technological information -- information technology -- capital-intensive and labor saving spirit of a manufacturing revolution is going mostly now into services and white-collar jobs will be displaced by technology and software. one of the dilemmas -- also structural impediment to long-term job creation. that is something we don't know how to address. >> should rip up the script with u2. nouriel roubini and ian bremmer with us. many do not know, you are a rainy and but you grew up in italy, right? >> ye

>> bloomberg businessweek's sam grobart. cofounder twitter will be join us on tuesday.alk about his new startup, jelly. it was an early technical up with some famous members, including the founders of apple. we will go inside a reunion of the famous ♪ home computer club. >> welcome back to the best of bloomberg west. back in 1975 a group of local diy tinkerers formed a computer club. the pc did not exist back then. those meetings included steve wozniak and steve jobs debuting the apple one. they kicked off the pc revolution in the process. gathered at members a computer history museum in san jose for a reunion. take a look. ,> before the iphone, the imac members of the home computer club, steve jobs among them, gathered every other week. first in a garage, later on the campus of stanford university. >> it was a social media of its day. >> we are witnesses to a lot. not all of us have the same impact and duration as apple. into thennot get far history without looking at the meteoric rise of apple. 38 years later, steve wozniak is getting the rockstar treatment at the fir

we wrote about this in the weekly edition of bloomberg businessweek.on, tell me how exactly this works. you can make calls only on wi-fi? >> i talked to a company called for public wireless. you have to buy up front for a special version of a new android. you can make a call over the wi-fi network. you you're out of range, borrowed time from sprint. this all works out to a network cost to you of between five dollars and $40. that does not seem that extraordinary. you could do anything with skype now. what is extraordinary that they have made the phone to get a normal dialtone. this is not difficult. it is very difficult to pull off in terms of a business trip. all of the handsets are sold through the carriers. the carriers have a vested interest in the strength of their non-wi-fi networks. >> what about the quality? sometimes you try to do a skype call or face time on the road. it does not always work. >> the qualities actually better. i talked to the engineers who said they had trouble making sure that the handoff was clean. theory is a much higher ca

the cover story of the car were -- current bloomberg businessweek.s had to be brought in. huge digital commercial television screens have been set up to observe virtual sunrises and sunsets in beijing to make up for the smog. ♪ it is approaching 56 past the hour. a bloomberg television is on the markets. i am julie hyman. we still have a mixed picture with the dow trading higher than the s&p 500 and nasdaq -- both trading lower. the s&p 500 was at a record a couple of days ago. put pressure on the major averages. let's talk about the bigger picture here. what have we seen in earnings thus far, what will get us to the next leg up in the market? alan thatbring in alan knuckman. we have come full circle. we are pretty much where we ended wendy 13. -- 2013. >> that was a huge, extended move. people are nervous about how we have not extended these gains. but put it in perspective, we are still at the highs, almost everything of they. >> will we continue to make new highs? >> i think we have gotten very spoiled, obviously. big gains last year. you can prob

and the second portfolio manager on trial for allegations of insider trading, and our bloomberg businessweekeporter is with us now. the recent conviction, sheila, that reminds us just how high the stakes are for him, but there is still no chance that mortoma will cooperate with the government, right? >> they charged him more than one year ago with insider trading. they billed it as the largest insider trading situation in history, it ill gotten gains, and they had expected to use martoma to rolle over his boss. he has adamantly maintained that he is innocent, even though the government has a very powerful case against him, so now, all day today and most of this morning, lawyers our downtown at the courthouse, battling it out over which people will make up the jury. this is a key point. they are trying to find jurors who have not been tainted by the steve:. coverage of >> this has been a huge story, no matter what newspaper you read. it has been in there. what can we expect? as you said, nobody even expected this trial to even happen to begin with. >> it is a strong case the government has bu

. >> we are in new york this week with the senior writer for bloomberg businessweek. kicking off a special series today. about how bigng companies are using it to dramatically change the way we communicate here. scientist and the watson of ibm's computer. this whole idea of a personal robert is age old. how did watson come to be? >> it is about pressing the envelope, breaking new ground. executives thought can we create a computer that can and do with humans incredibly hard human tasks. it was an amazing opportunity for a richard scientist like myself. it was allre life about can we get computers to mimic the way humans think? taking it step by step. >> isn't one of the things that makes what and so special is its ability to function with natural language? >> that is one of the biggest challenges. how do we understand language? computers are going to data jockeys to thought partners. it is about understanding what they see. what is the meaning behind it? ultimately meaning is going to just trump data. there is too much out there. how do i get an understanding of it? >

." -- "bloomberg businessweek." want to be list you on or are there other lists you can get on?u want to get on. it is a compilation of every important party happening at sundance right now. sundance has become this kind of overblown party circuit. a lot of parties are sponsored by corporations. oryou're a manager are -- publicist, you have to get your client on this list manage by chris ryan. >> how can and might get on all the right lists to be invited to these parties? basically, i have a qualification for getting on the list. to be a talent publicist or a press outlet that all the event reduces approval or a film publicist with a film in the festival. i keep the list very strict on who actually gets all the contact information. >> how did you come to be the keeper of the list? outbout 2006 i was helping and doing an event at sundance and i noticed that everyone had these different party lists. they all had incorrect information. sometimes the start -- time started at 7:00, and sometimes they were nine. i started contacting people asking what times they started or ended. loha

the cover story of the current bloomberg businessweek. virtual sunrises had to be brought in.tal commercial television screens have been set up to observe virtual sunrises and sunsets in beijing to make up for the smog. ♪ >> it is approaching 56 past the hour. a bloomberg television is on the markets. a mixed day. the dow was the only index in positive territory. on the s&p, the biggest drag in the index was consumer staples. overall, it economic data coming out today is building permits and housing starts came in lower than estimated for december. economists are saying these numbers can be volatile and the housing market is showing signs of stabilizing. ge was down. manufacturing fell short of estimates. ups also said its earnings would disappoint for the fourth quarter. it had to hire more workers than it land. and it still missed some holiday deliveries. best buy was the biggest loser in the s&p, after suffering a huge trout, the biggest in more than a decade yesterday. it saw declines in u.s. holiday sales, down by 1.5%. that was matt miller, saying crushed. investors are

here to discuss this is the senior writer at bloomberg businessweek who wrote the book on amazon, bradfirst of all, why does he hate helicopters? let's start there. >> a scary situation. actually, 10 years ago, jeff was in a helicopter accident in texas when he was scouting out locations for his ranch. >> was that really serious? >> it was serious, but no one was seriously injured, and all of the passengers managed to walk away, but he subsequently said that a helicopter was not a favorite form of transportation, no doubt, though one of the cruel ironies from the galapagos is that they took him out of there in a helicopter. >> what happened? >> all we know is what amazon said, which is that he had a medical emergency related to kidney stones, and he was transported back to the united states, and he is fine now. >> any reason to believe they are playing it down, or is it something worse? >> technology companies in general do not have a fantastic record of being transparent when it comes to the health of their chief executives, apple being the best example, but this seems fairly straight

to read the latest issue of bloomberg businessweek, just download the app. free on your iphone, ipad, android, everywhere. coming up next, you've heard about companies popping up on the bitcoin bandwagon. we will tell you why. ♪ >> the easiest way to get a bitcoin may actually be to buy one. however you can also create your own. here to tell us about the world of virtual currency, yes, we have kay koplovitz, member of the board at fifth and pacific. we will talk about some selling and reorganization there. and joining us now, bloomberg's resident that point expert, matt miller. don't look so down. >> i was thinking, can i buy some juicy couture gear with bitcoin? how long until -- >> can they come out and say they would do that? >> they will, and you know i spent a couple of weeks only using bitcoin, not using u.s. currency at all. i bought groceries and a lot of beer. i bought a plane ticket, concert scenes. >> and it all worked well. >> it did. the whole thing is whether it is a better investment to just buy a bitcoin straight up and hold it, or to buy som

to read the latest edition of " bloomberg businessweek," just download our application. east coast,n the you might need a generator. don't have one? our next guest will tell you everything you need to know to be prepared for the first storm of 2014. >> from new england to new york city, all the way to philadelphia, they are bracing for bitter cold and this will likely cause numerous power outages. my next guest's company could be in high demand. the chief executive of generac joins us from the walkie wisconsin. aaron jagdfeld, good to have you with us. tell us what you have experience in terms of whether and how people might want to prepare. >> we had this in the upper midwest. we are just north of chicago. we had some pretty good snowfall. to the east of us and michigan, we had a pretty good ice storm. a lot of what it was going into michigan and in the toronto area. unfortunately, when you have an outage, everyone wants a generator. they have become in very high demand and trying to find them. >> let's say that you have some foresight and you have decided to investigat

. >> that was bloomberg "businessweek's" sam grobart.gle's self-driving car may not be on the road yet but they are helping to push connected cars into the fast lane having just announced the open automotive alliance with g.m, honda, hyundai and audi. the goal in partnering with car makers is to get a customized version of android software into cars for infotainment and entertainment. for more, i sat down with mark mahaney, who covers google for r.b.c. capital. >> they already are your online utility and probably the one single thing that you could not live without on the internet. you think about all the information that you need, the number of times you use any of the entertainment applications they offer you. now they are trying to take that utility-esque feature of google and take it off of the computers and put it on your glasses and put it in your car where you spend all of your time. you can't do searches where you have your desktop with you or your mobile phone with you, but you have your car with you. yes, now you can. it is int

for more on facebook's 10th anniversary, check out bloomberg businessweek which hits the stands mara.incinnati bengal on a mission to land a hand to all our veterans by helping them with future careers. ♪ >> we have been counting down. have you question mark to the super bowl. former ravens coach is in the loop for the whole hour leading up to the big weekend. we are approaching the biggest weekend of the year for football fans. what fans may not know is how tough life is for many pro football players after their last season. most careers only last 4.5 years. after which, most layer struggle to find a new career. often they face financial hardship. their former colleagues are trying to change all that. former cincinnati bengal and hall of famer anthony munoz will be joining us in a moment. they started this company called team services, which only hires pro football players after they have retired. great to have you here. >> i will be here all week. i got here monday. eventually i have a flight at 1:00 on sunday to get home and watch the game. there will be plenty of people in the sta

with us from "bloomberg businessweek" he writes about what we really need from a carrier.s making it pretty ugly for at&t and verizon. ellis how successful. >> he is so consistently strategically wacky that i had to become the chief t-mobile correspondent, where chief john leger correspondent. >> are you going to follow him around? you sound like he is fun to follow around. >> for a long time, there was not much effective competition in the u.s. cellular market. if you look at average revenue per user, it was pretty consistent among the big four which meant they were not really competing on price. t-mobile for a long time, the subsidiary of deutsche telekom here in the u.s. was having trouble getting a foothold in the market. not get spectrum and could not really pick up customers and did not have a very good network. going down the tubes. and then a bizarre thing happened was at&t attempted to buy them. the deal fell through but as part of the deal falling through -- >> $7 billion of cash goes to t-mobile as part of the breakup fee and now they've got the money to buy spe

cory johnson joins us from new york, as well as sam grobart of bloomberg businessweek. awful warnertoday, of toby technologies, the executive vice president. warner of toby technologies , the executive vice president. how exactly does this work, i recognition technology? to know basically a way where you are looking on the computer screen. it takes a picture of your eyes and it can calculate the direction your eyes are reading. like, you look at your phone and it can tell whether it is you are not? it is sort of like fingerprinting technology. >> but it is much more than that. you look at an area of the where yourit detects eyes are pointing. you look at an area and did can interact with that area. -- and you can interact with that area. normally, you drag your mouse and that entire movement would be unnecessary. >> sam, obviously you are the guy that looks at all of these devices. you have been to samsung headquarters in south korea. what is your take on the new s five? how tricked out is he going to be? are you optimistic about this i recognition technology? >> no, i'

. >> bloomberg businessweek cover this week is a bitcoin cover. and it has a unicorn.flying everywhere. there are some very smart people, to your point, who are making a lot of money here. is that a short-term thing e is this -- a short-term thing? is this tech arbitrage? how does this play out in your opinion? >> currencies are a popularity contest. is what -- what they are worth is relative to another thing. bitcoin is growing in popularity. >> what about regulation? is someone at some point going to get upset? >> they are. against it.me out germany has said it is not a responsible investment. this point is a protocol. protocol. is a it is a protocol for confirming transactions. it suffers potentially from regulation, etc. it is not a slam dunk and will be important to monitor. but it will be useful for a lot of things. >> as an investor, do you feel like you should be exposed in some small way to this? >> philosophically, we don't think we have to be exposed to anything. we are looking for the right we are behind a business model where we are going to find that. are

ofread the latest issue bloomberg businessweek, just download the app.free on your iphone, android, everywhere. coming up next, you've heard about companies popping up on the bitcoin bandwagon. we will tell you why. ♪ >> the easiest way to get a bitcoin may actually be to buy one. however you can also create your own. here to tell us about the world of virtual currency, yes, we have kay koplovitz, member of the board at fifth and pacific. some sellingabout and reorganization there. and joining us now, bloomberg's resident that point expert, matt miller. don't look so down. >> i was thinking, can i buy some juicy couture gear with bitcoin? how long until -- >> can they come out and say they would do that? >> they will, and you know i spent a couple of weeks only using bitcoin, not using u.s. currency at all. i bought groceries and a lot of beer. i bought a plane ticket, concert scenes. >> and it all worked well. it did. -- >> it did. is whether it is a better investment to just buy a bitcoin straight up and hold it, or to buy some very expensive equipment

fabulousobart did the bloomberg businessweek article of the executives.phrase this as delicately as i can. abouto not give a dam samsung, do thegekko >> i think they do. they look at the competitors. knowing your potential competitors could be. they have been very busy on the acquisition front. picking up technology they may never use. you know what i am curious about, why you are rooting for the denver broncos? do not care. i have to get up to speed in the next four days. corey, thank you so much. i think you are coming back when we talk about the big interview cory will do tonight. tom perkins making pretty controversial remarks on the comparing the treatment of the one percent by the jews of the nazis. we'll talk about that more after the break. ♪ \ ♪ z, that was beyoncÉ and jay- the power couple performing at the grammys last night. social media playing a big role in the awards ceremony with a live twitter camera backstage. you are jamming. to give it to beyoncÉ and jay-z, they have done really innovative, interesting, groundbreaking on video, twitter

from bloomberg businessweek, welkin. >> chime in whenever you like. >> they are not constantly loopingctoria's secret runway shows. we don't do that. >> we do that here apparently. >> i want to talk about capital expenditures. not just because it's going to be a record $2 trillion but because so goes cap backs so does ford. they are boosting to $7.5 billion in microsoft is doubling theirs to $6.5 billion. guys, i cannot emphasize how important it off this is. stuff is.nt this >> bacon? >> no one was thinking about those numbers. .t a six-month high as with the capital expenditures -- >> i wrote that column on how wife thinks 2014 will be the year of clarity. one reason i cited is because it was more anecdotal. you're starting to see sentiment change and they seem to be willing to put more money back to work. it.'s the evidence of >> we were just showing a chart of capital expenditures. show them the chart that hamza or. we don't have it but you cannot take our word for it. as good as capital expenditures so goes stocks. >> it's so important we are talking about it again. i think the ch

it is this weekend "bloomberg businessweek." what did you learn in the story?ere has been a quiet change at the state level in the last year. 15 spain -- 15 states spend more on childhood education and eight and were republican or run by the public and governors. >> they don't want to spend money. >> states have trouble knowing how to spend money. spending on money -- spending money on this comes from an idea from the nobel laureate james heckman and he's is been working on this for a while. what we know about early childhood education, it has some effect over the schooling years. at risk kidst educated come in school for age three and four, then they're better off through the 12th grade. what we are also finding out is there is a lifetime of benefits. they're much less likely to go to jail or own a home. they're going to earn a lot more. what he has done is calculated a return on investment to preschool. basically, to 10% -- a lifetime roi of 71. >> but are they taking away from someone else? are we shortchanging middle school and high school education to pay

outave a great story coming and issue of "bloomberg businessweek." and ee butterfly labs miners.eo a couple weeks ago and asked how he got into this. listen to what he had to say. >> the higher the performance, .he higher the probability the idea is, build a very powerful machine in terms of performance and consume the least power in terms of the electricity. in the bitcoin world, performance minus electricity, it is revenue. >> what he is talking about is when bitcoin first came out and you could mine it, you could use a regular computer and a lot of people were using old nintendo's . you did not need much computing power. special chips have been made now that will do the work faster and better as it becomes more complicated. people like him have built special computers around these special chips in order to do the work. one of his computers does as 70,000 chips combined peer it is a lot of competition will power necessary. >> does it push out the little guy? is one of the big problems and concerns in the community. there are a lot of mining operations getting together a large n

continuing the conversation with bloomberg businessweek's sheila on sac capital.hallenge for this year. it is technically no longer a hedge fund. >> the government indicted sac firmfrim, -- a firm, the pled guilty and they did not charge cohen himself. the firm cannot manage outside money and it will be a family cohen's money.g >> a leaner operation. as you mentioned, mathew martoma's jury selection begins monday. this person is pivotal to what happens next. there have been so many people saying why doesn't he flip? he has so much to lose and nothing to gain. what are your thoughts? >> it is a mystery. he has three children, a wife, a house. why would he fly on his -- why would he fall on his sword for cohen? he hassomething happens, decided not to cooperate. people go on trial. -- he decided to go on trial. he may be convinced he is innocent. cohen crossing his fingers martoma continues with this stance. >> how long will jury selection take? , theyusually takes 2 days, need to find jurors who have not read a lot of negative headlines about sac. >> sheila, thank y

we are joined by brian greenlee from "bloomberg businessweek." >> we under the last hour with this.esting. it's something that difficult to get your head around. >> tell everyone what a story is, matt. former arkansas governor mike democratsaying that are trying to win over female voters by giving them birth control and telling them "they cannot control their libido or their reprint of the system without the help of the government -- reproductive system." asked about his comments, press secretary jay carney said that, "it sounds offensive to me and to women." >> i don't think he understood it correctly. >> it is just -- >> what mike huckabee is saying is that the government should of women's sexual health issues and stay out of the rights. i agree 100%. it is ironic that a republican is making a statement like that. typically, republicans are interested in controlling women's reproductive rights more than democrats. >> now what republicans are interested in is getting reelected. >> they would not go pro-choice to get reelected. thehere is someone from republican national campaign co

peter foy, bloomberg businessweek. >> when we come back, we will talk about the broncos and the seahawkse speaking with two former nfl players going on a great super bowl trip. ♪ ♪ >> here in new york city this week, it is highroller heaven. from all over they are coming to town for, you know what, the super bowl. of course, they demand top flight service. to nfl players are here to meet their needs. started a full-service agency catering to high net worth individuals. the super bowl is just one of their big events, so welcome, gentlemen. so, if someone comes to the society looking for help, what is it that they want? >> thyroid advice, first. look at these two men. >> -- style advice, first. look at these two men. -- get do they get wet when they -- what do they get that they cannot get elsewhere? >> you do not always have the time to enjoy the fruits of your labor. we really wanted to take that pressure off of you to go out want it. say -- i we say how. how, when, why. >> is this because people no longer want -- or the altra rich already have all the material goods that they can get? a

we want to highlight the cover "bloomberg businessweek," an in-depth look at facebook. e it was founded 10 years ago in a harvard dorm room. it is available on store shelves tomorrow. this is a vote bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. ♪ >> good morning, everyone. "bloomberg surveillance." futures are up five. joining us now are achieved national correspondent, carol massar. she will hold court at 8 a.m. this morning. mikeod morning, we've got jackson of autonation. we will talk about that but what we wanted dig down with him about his the car market has been doing well. of new offerings and the automakers are very optimistic. >> he has a national view that is great. >> but he deals with used cars. market is doing well, how is the used market doing well in a better economy? a better economy as we go to 8:30 a.m. at a look at jvp. -- at gdp. we can do in earnings calendar for 1.5 hours. >> autonation will be reporting live this morning but we want to highlight facebook. the shares are jumping in the pre

booming business we got a chance to speak with mark zuckerberg -- bloomberg businessweek got the chanceo speak with mark zuckerberg. i want you to give us your impression of mark zuckerberg and sheryl sandberg. they form a dynamic new oh given the fact that few people understand the intersection of media and technology as you do, in part by virtue of your time with steve jobs. >> facebook is 10 years old this week. one of the things that has happened is they have formed a great partnership. i am writing a book about collaborations in the internet and computer age, and one of things i discovered is people like steve jobs who form a wozniak,on with steve or mark zuckerberg, who cooperates with sheryl sandberg, tended to succeed. i also think about bill gates, 10, 12 years ago, saying we will be in internet-centered company. it did not happen at microsoft, but about one year ago, mark zuckerberg said we're going to be a mobile-focused network, and he would not even attend a meeting in which people pitched products that were first for the pc as opposed to mobile-first. he wasnings showed th

ask you alet me question about an article in bloomberg businessweek.tives said they are not going to come down in price. in five years, will that be the correct decision for apple? to distance themselves from the cutthroat -- >> steve jobs came up with the idea of being the bmw of the computer business. apple's market share is growing bigger than many expected. michael and i used to talk about how he wanted to license the mac os. i would like to know your opinion, do you think apple remains the high-priced competitor, is that a given? >> you are seeing the ac phenomenon of 20 years or 30 years ago play out again. if you look at smartphones, there are markets where android is approaching 90%. is, you know, they have done very well at the ultrahigh end. there is a very large market out there. way, if youe in a look at tablet share, fastest-growing -- >> how much? >> $299. s inhe price of four martini davos. tie this all together, in the tablet war, what are you learning about the international customer that we do not know? take it to india, indonesia, th

bloomberg's "businessweek" ashley stumbles across interface aviation, the alarmingest commercial aircraftbutor in the world. he got inside to look at the surprising business behind the airlines' cheap seats. > i ran in this place in california. one of the world's largest airplane seat repair and refurbishment centers. never in my wildest dreams would i think of it as a place that has tens of thousands of airplane seats stact to the roof. it is one of those unique businesses you stumble across. >> we're a relatively small company. we have 12 people on payroll. most of these guys have been here 15 years or more. they know the seats are pretty good. >> what are kind over the basicors this business? >> it is tremendously less expensive to refurbish an existing seat. new seats today are five or six times more expensive. we often modify seats to newer standards. >> do you compete with american companies? >> there are twobal five or six seat refurbishment people in the u.s. these seats are going to ireland. these are going to china. airline also reconfigure their seats based on the routes that t