tv Lunch Money Bloomberg January 7, 2014 12:00pm-1:01pm EST
[applause] have the mom of two of our troops who is working hard out there but is having to wear a coat inside the house, we have a problem. it is one that can be fixed. catherine is not alone. woman watching from home in california wrote to me about her hunt for new job. she was laid off 13 months ago and she sends out hundreds of resumes. she has volunteered, done seasonal work, she has been taking online courses to learn will -- to learn new skills. without unemployment insurance, she will not be able to pay for her car or cell phone which
makes the job hunt that much harder. i havete to me and said wanted nothing more than to find dash full-time job and a and i have dedicated every day to that mission. i am asking you to advocate for me and the millions like me then need the unemployment benefits to make ends meet. i want everybody to understand that this is not an abstraction. these are not statistics. these are your neighbors, your friends, your family members. it could at some point be any of us. is why we set up a system of unemployment insurance. the notion was that everybody is making a contribution because you don't know when the business cycle or an economic crisis might make any of us vulnerable. foodinsurance helps keep on the table while data sending out resumes. and helps mom pay rent while she
is learning new skills. it provides the extra bit of security so that losing your job doesn't mean that you have to lose your house. where everything -- or everything that you have worked so hard to build for years. we make this promise to fellow americans because when times get tough, we are not a people who say you are on your own. we believe that we are all in it together. [applause] that is the case for this. for it an economic case as well. unemployment insurance helps the economy creates new jobs.
when folks like catherine have more to spend, to turn up the heat in our house or buy a few more spendings, with businesses in your local community. that may inspire that business to hire one more person, maybe kathy. the past, both parties have put partisanship and ideology aside to offer security for job seekers with no strings attached. regardless of whether deborah kratz or republicans were in the white house -- regardless of whether democrats or republicans were in the white house, it has been done. it has been done multiple times when the unemployment rate was significantly lower than it is today. what is important to keep in , and a that the recovery
big country like the united states, is going to be uneven. there are some states that have a 2.5 unemployment rate and there are some places that may %, 8%, 9%e a 7 unemployment rate. they may be working equally hard to find a job, but it will be harder in some places than others. two weeks ago, congress went home for the holidays. they let the lifeline expire for 1.3 million americans. not get fixed, it will hurt about 14 million americans over the course of this year. with 9on workers along million of their family members, their spouses, their kids. i have heard the argument that says extending unemployment insurance will somehow hurt the unemployment because it saps their motivation to get a new
job. i want to go at this for a second. [applause] that really sells the american people short. i mean a lot of people as president of the united states. et a lot of people as president of the united states. i cannot name a time where i have met an american who would rather have an unemployment having an the pride of job. [applause]
the long-term unemployment -- unemployed are not lazy. they are coping with the aftermath of the worst economic crisis in generations. some cases, they may have a skills mismatch. they may have been doing a certain job for 20 years, suddenly they lose that job, they may be an older worker, they may have to get retrained. it is hard. employers will discriminate if you have been out of work for a wild. they decide they -- for a while. they decide they want to hire somebody who is still working. it is hard out there. a lot of our friends and neighbors have lost their jobs and they're working their tails off every day trying to find a new job. better,ob market gets more and more of these folks
will find work. meantime, insurance keeps them from falling off a cliff. it makes sure they can pay their car note to go to that interview and makes sure they can pay their cell phone bills so they can -- so that if somebody calls back for an interview, they can answer it. the president of the united states making his case for the extension of unemployment benefits. he is speaking at the white house. we know where he stands on the subject. he wants congress to extend unemployment benefits. let's bring in phil mattingly. let's make it easy. is anything the president says today or tomorrow or the following day going to affect the way this bill plays out in the house? it looks like it will pass the senate, but it is anybody's guess if john boehner or his
fellow republicans will allow it to pass the house. >> the answer quite simply is no. the senate just moved forward on , unexpectedly. they got 60 votes for a just about an hour ago. white house officials believe that was due in part to what the president and his aides have been doing in their public pronouncements over the last couple of weeks since the program expired on december 28. the president has been making a lot of calls to lawmakers and lobbying them. they got a win today that was unexpected. they feel like it since like this might be the reason why. they might be starting to break down the partisan walls. point, house republicans very clear. unless this is paid for and contains some kind of job growth provision, they are not going anywhere with it. know, butbably don't
adam is going to be along the second. we are still in an extended version of "market makers." maybe, maybe not the president has some influence. what about the republican senators? five voted to end debate on the subject of a extending unemployment benefits. how much swayed and they have with house republicans? >> sorry about that. lost track of things a little bit. with thehave seen senators that are going along with this, there are people that want to continue the debate. when you are statewide office holder, your hearing from the people that this impacts. 1.3 million people immediately over 4 million over the next couple of years. they want to continue the debate and give the white house chance to come to the table and negotiate. happen, i don't think they're going to be there for the second procedural vote.
they still need 60 senators. >> thank you. phil mattingly, our white house reporter. debate anding the negotiations back and forth over extending unemployment benefits. that will do it for "market makers." tune in tomorrow. the ceo of the u.s. chamber of commerce speaks for american business. he will be with us to talk about legislative priorities for the coming year and what he will be lobbying for and what he believes his constituents want. we will have tough questions for mr. donohue. up next, "lunch money." don't go anywhere. ♪
airport. 10 thousandceled since saturday. jetblue has scrubbed 526 flights, but promises to be back to 100% by the end of today. it is not just the bad weather. there are new faa guidelines that route are all commercial pilots received 30 uninterrupted off-duty hours per week. that is 25% more than before. eyelids are getting more rest, but it means there are fewer flights for past -- pilots are getting more rest, but it means there are fewer flights for passengers. boeing is going to hold onto the crown of the world's largest plane maker for the second year in a row, beating airbus in the process. isir newest jet, the 777x being positioned as the next generation of efficient
long-haul jets. it will be built in washington. that means more jobs and money for the state. his victory was not an easy one. only 51% of the machinists approved the deal. we spoke with jay ansley. >> people had to face prospect of job loss. to prevent that required they had to consent to things they have been fighting for for decades. they made the decision to move forward to build this jet and its derivative models for decades to come. that is going to make an enormous economic impact for the state of washington. the carbon fiber wing represents the cutting edge future of aerospace and a whole host of other products as well. to move decision forward to keep washington state as the center of aerospace in the world. decades oferal
dominance and we are looking -- that we are looking forward to. >> the rating agencies have said that if the machinists didn't ratify the contract and production moved out of washington state, washington state was going to get its credit rating lowered. what do you do to try to bring in other businesses and diversify the washington state economy? created an incentive program to make sure we have the right tax structure in place that made sense for boeing in the state of washington. quick fashion. a commonsense provision that had some tax incentives that will guarantee that boeing stays here with all subsequent derivative models. the protection that boeing not open a second line and divert jobs out of the
state. that returns net revenues. we are active in regard to that. robust and a comprehensive training program workersntee boeing have to get the job done. we have one of the best systems that is going to allow a million-square-foot building to be permitted in short order. we are firing on all cylinders and it worked. makes headway, there is an ending area of -- era of aviation. matt miller takes a look at this loud but iconic plane. d.c.-9a flew the first -- dc-9. it was a revolution when it was unveiled. it was fast, comfortable, and
functional. it was able to take off and land on short runways at regional airports. none of that matters now. the dc-9 burns too much fuel. they are also noisy. dc-9ghout the 1960's, the was modified with the last one built in 1982. plane have said that the was a joy to fly, but it made you earn your pay. there are no electronic displays or fight control computers on a dc-9. , butarewell to the dc-9 it's lineage lives on a bit. the next time you step aboard a boeing 717, know that both airplanes were derived from the dc-9. it is a plane with a legacy.
hide. it is packing a heated punch. >> it is clean. >> he uses a blowtorch to get a super concentrated hit of thc. seelong the sides, you will -- >> a joint is made up of flowers 20% has anywhere from 13 to thc. the extract that we have today is around 90%. it is great. same drug, just made more potent through chemical engineering. it is a concentrate of cannabis. are wrist with a
solvent in a lab. winston -- rinsed with a solvent in a lab. what is left behind is almost a pure blob of thc. upwhat jake will do is heat -- heated up until it is red-hot. point, hets it to the will put the dome on it. the dome captures all of the smoke. recreational use of pot is now legal in colorado and washington state. that includes davits. as these striking videos show, amateurs have caused explosions while trying to make butane hash oil in home kitchens. of themve been reports
passing out from intense highs. whathas some worried about that means for the newly legal marijuana business. >> certainly. we do not need that. we are in the process of taking an industry from the black market to the fully legalized market. let's do it responsibly and carefully. >> some people are put off by this. does that hurt the industry? >> i think the naysayers and people who are opposed like to use this as ammunition. marijuana has never killed anyone. more expensive than pot flowers. a gram costs $50 versus $15 for a gram of pot. the joke is a dab will do you. trish regan, bloomberg news,
denver, colorado. yellen prepares to head the federal reserve. what challenges does she face? we will take a look. what is the price of ignoring a ponzi scheme? we will examine the jpmorgan settlement. ♪ >> i am julie hyman. let's take a look at where stocks are trading. we have a rebound today after three down days for the s&p 500. stocks are higher today. people are looking ahead to earnings season and the earnings report on friday. in terms of movers, we're watching the best performer last year, not so great today. netflix was up about 300% last year. , it was cut.
," this is "lunch money trimming live on bloomberg.com. today's moving pictures, where the video is the story. temperatures are plunging as a mass of arctic air fleets across the country. it was a d in central park yesterday. scientists call the cold air a polar board-checks. if you're outside, you're probably calling it something else. commitmentel chapter ,- cap her commitment to appear
after being injured in a cross- country ski accident last month. a last-minute touchdown by florida state one college football plus title game. it's not a seven year -- it's snapped a seven year winning the bcs. bernie madoff worked with jpmorgan for more than one years before confessing to fraud. jpmorgan had concerns that bernie madoff -- >> internally?
>> internally. they had concerns that he was up to these things. under and a monday laundering -- anti-money laundering relations they have to have heavy regulations. in failing to do this it cost them $1.7 million. according to the southern district, who announced it is going to be going to bernie tims.f's that owns -- vicit >> there is incriminating evidence, e-mails that established the wrongdoing that the government alleges. isthe key thing in this days that they signed a deferred prosecution agreement but which means that they neglected to prosecute.
second jpmorgan's deferred resignation agreement. this is a big deal for them, because they aren't bidding to committal charges, not a lot of banks do that. >> the former finance chief testified that dc- bernie mado's former workers ask for payment in diamonds. they cleared a pulmonary vote in the senate this morning. the bill would reinstate jobless benefits that expire december 20 for another three months. congress voted today because they failed to act before the holiday break. 60 senators voted to move ahead with the debate on the measure. the exact number two avoid a to avoid a--
filibuster. as a beginning and get that far, here's the president after the vote. >> unemployment insurance has been a vital economic lifeline. for a lot of able it is the only source of income they have to support their families while they look for a new job. folks who not full -- are just sitting back, waiting for things to happen. they are out there actively looking for work. >> one vote that also nearly dated, janet yellen confirmation of the 15th fed chairman. the senate voted 56 to 26 of a that is the fewest gay votes -- a votes confirming a chairman. >> i'm not going to either describe, or predict for the
federal reserve rate of they have a very complicated set of trade-offs that they have to manage trade-offs that are made much more difficult for them of the support for the economy. i hope that the necessary steps are taken with physical policy. i hope that the optimist about what the private sector is going to do this year turn out to be right. i hope that the rest of the world is strong in a way that supports our exports. but fundamentally, here is the one question everyone should ask them selves, if a moment when we can borrow money in a currency we print ourselves, or long-term at less than three percent, and a moment when the construction unemployed right approaches double digits is not the moment to fix kennedy airport, when will that moment ever come?
we need to be supporting our infrastructure, which has been allowed to languish over the last decade. it gets worse every year. what possible logic could there have been to the significant cutback to public investment that took place in 2008 and right now? in a moment when the economy is weaker than it has been, when i've investment chuckle, and the flow of credit is problematic. how could that have been the right moment to cut back public investment? it does not make any sense for us as a country. now, when interest rates are so low, when the risks of trotting out are minimal, that is the moment when there is a strong case for fiscal action. tojanet yellen is expected begin her new post on february 1. she is the first woman to lead the federal reserve, and the fat and the first democrat
to lead sent paul volcker. later, how does a billionaire relaxed? ? we will give you an inside scoop on richard branson's retreat. take a look at these guys and took 700 swimmers that part in the winter swim race. pool is actually a whole that was hacked in the eyes in a local river -- ice in a local river. ♪
>> in sports, got going to see american -- at the at the winter olympics. she has decided to undergo surgery on her right knee. she poured to lead with in her knee last a very, and then she reentered them back in november. she is expected to recover in time for the world 14-15 ski cup. --re talking about aging beijing, which held the summer games just five years ago. our chinese correspondent heads to the slopes to see if they can actually do it again. >> we need to drive at least four hours road west of beijing to get to where deal of the organizers want to hold many of the outdoor olympic events eight
years from now. sitsroblem is that beijing in a bone dry basin, and the peaks are not that tall either. it is already january, and there is no stone -- snow to be seen. not making it too ideal for a winter olympics in beijing. challenging,s more is that it is a water scarce city in the heart of coal and steel making country. china will undoubtedly throw billions at cleaning things up by and including a high-speed rail link to the slopes, but there's much more work to be done. there's no snow at all. few clues to a winter resort, this is january, and when we last see the slopes, it is evident it is all man-made snow.
>> ready to go. this is one of the newer ski resorts in the area, with arty trails, a gondola, and a heated chairlift. i have just -- they have just begun, 22 ski lifts our plan -- are planned. being is a relatively new sport for the chinese. >> china should have a chance. china's economy is quite strong when the government is quite committed on these fronts. there isn't a single slope in this resort that conforms to olympic regulations. but there are a couple of resorts being built nearby that meet the minimum standards. it is known for its bitter chilly wind. it is also extremely -- icy.
>> world-class? >> not at all. a great hill, not bad for china, but not world-class. if you're going to try to have olympic village with all of the amenities from a by the time you get there -- with all of the amenities, you need snow. it is tough to get. go bye-byed ways to good place for the family, i do not begins ready for the obex -- a good place to come, a good place for the family, i do not think it is ready for the olympics. games 2018 and the 2020 in the running. >> the 2018 winter olympics are
made they boat maker bond vessel. fast-forward, owners of yachts could change/ . ided to buy the whole company. the sun seeker boat for llionaires. -- bi >> given the focus on china, give me an example of how the boats are changing. >> there is a karaoke machine on almost every vessel. >> he is not so many boats in china, yet. the new owners that -- is betting the $.5 billion that he
paid will change. get toll need a boat to this place, neck or island, -- island, richard branson's island. >> it is part of the virgin islands, and it is the place he called home. >> welcome. >> from this location point you can see the whole island. --s is richard's-residents richard posner private residence. managed ton style he get it for just $150,000. great to getit was together $100,000. >> he built it as a playground for himself and his guests.
three years after building his utopia, a single strike of lightning earned it all down -- burned it all down. >> it hit right in the center. it was the worst feeling ever. >> it caught fire with ranson's family inside the they watched from the private residence 200 yards away. mothers, daughters, nephews and nieces, everyone dear to you was inside the house, not knowing whether they were safe. i just wanted to get to the house. >> ebody was out. >> 25 months, and $70 million later, the greathouse was back, and better.
like the most pitiful home in the whole wide world -- a beautiful home in the whole wide world. yours, andnd is all ready to give you entertained, eatingnnis -- endangered lemurs from -- eatin feeding endangered lemurs from madagascar, or hitting the water. >> what it is like to be the wing on a wing man. ♪
well as the jobs report on friday. let's take a look at some commodities, gold down for the second day as the dollar rallies. traders in these markets are looking ahead to those dead minutes as welcome and the potentials cudgel of when the federal reserve tapering will continue. doing,s of what is projected to climb. owing formployment the first time in five months, and tomorrow inventories report is expected to show inventory tracking here in the u.s. we are also watching natural gas of the southern and eastern parts of the country, nat gas is used to heat most of the homes. joining me now is the resident
of brd brokerage. here, would secret you tend to see things as gold we sent -- things of this cold, we seek natural gas move higher. everyone would like to think that the two of them are in goestep, as the denver to down, that the price would go straight up, and it does not always work like that. their expectations, and realities. what we have had in the last couple of weeks riordan does within this patient of some cold snap. the market did have a beautiful rally, they traded up to about 4.53, and that was quite a big move when you look at it from a percentage basis. the cold weather came in, and the market has absorbed it, and is settled back in little
bit. there is a more extended cold weather, the inventory figures are going to come out this thursday for natural gas demand to be the telling figure to see if this market have some real legs on the upside. am very friendly to natural gas right now, i think you can buy it down as low as the four 10 level. -- 4. >> stumble think there is good to be a contraction -- some folks there's going to be a contraction. numbers comeshat out of it is in reference to what the expectations were. sometimes you may have a great ou havetion, and ye to assume that is already in the market. when they do not reach that number, that is when the market makes its move. it is too early to make an assumption. towe have gotten used
natural gas prices at a pretty depressed level. what do you think of as we see the little bump up about in terms of an upper bound to prices? >> we can, and probably will get - fours. higher for's -- that is with some serious weather coming into play. after that you do take a look at a decent amount of inventory. -- nos really notional shortfall here, it is just a matter of local supply and demand that comes in. and the seasonal grip that is taking place here. some serious weather in the fall when it comes to hurricane season, this disruption gives of a spike up. >> thank you. we'll have more on the markets in 30 minutes.