tv Market Makers Bloomberg March 24, 2014 10:00am-12:01pm EDT
commitment to openness and respect for the families. principles that have guided this investigation. malasian -- malaysian airlines has already spoken to the family's of the passengers and crew of this development. the past few weeks have been heartbreaking. i know. is news must be hard. i urge the media to respect their privacy. allow them the space they need during this very difficult time.
>> that was a press conference with the malaysian prime minister. you are watching "market maker " ." let's recap his comments. it was a little bit difficult to hear. we have people on site in malaysia. here is what we know. the prime minister citing new data showing that flight mh370 and is in the southern indian ocean. it is unclear exactly what happened to the flight ear the implication appears to be that 0 crash in the indian ocean. survivors oralk of wreckage.
he did point out they will hold a news conference tomorrow with further details. this news conference was a very simple declaration that light mh370 and in the southern indian ocean. new satellite data concluded that it flew toward the southern corridor. the last known position was in the middle of the indian ocean. >> as you probably have an known, there is not much in the southern indian ocean. who knows what happened. there have been reports possibly of a wooden pallet. satellite imagery provided by chinese and other countries suggest there have been sightings of something floating in the indian ocean. the prime minister trying to put debate over which plane flew.
definitely --ting definitively that it ended in the southern ocean. >> the plane is lost. southern indian ocean. it is a story we will continue to monitor. we know malaysia's government will host another news conference with further developments. meantime, we need to bring you up to speed on new developments in the battle over herbalife. icons agreed to give car -- carl icahn three more representatives on the board to two --m a closer ste
step two owning more. it is never certain what carl n's intentions are. what do we know about the three people he wants to put on the board? to figuree is trying out exactly what the endgame will be for carl icahn. these three board members all come from icahn enterprises. one is an independent director. he is beating up his positions on this board. kman hases as activ been able to get this
investigation. on both sides the stakes have been raised. it looks like we will be in for quite a battle to come. were reporting that after a year of losses on the short bet against herbalife, though acumen may finally be -- bill ackman may finally be near breakeven. >> yes, a lot of that coming in ftc saysweek as the they are asking some formal questions of the company. you have seen a considerable amount of scrambling as people try to figure out what is going to happen at the end of this investigation. you could have some sort of finding along the lines of what kman has asked for. it could be a slap on the wrist.
perhaps they come back and there is no action at all. be aboutrtain are we this. this was back in 2012. it is hard to believe so much time has transpired since that original thabet. presumably this cost him something. at what point of ever will we be able to know where he stands. the picture is deathly much more cloudy now from when it was a simple short bet. difficults to make it . started buying the stock back in may 1 2012. this is while didn't i did learn had asked some questions on the conference -- david
einhorn asked some questions on the conference. it was noted december of the same year that he decided to act as his own catalyst to try to bring his obligations to light. as he has sure to the company to about a billion dollars. later he did add some options. our best guess right now is that he is very close to breakeven. >> thank you very much for the update. that is duane stanford in atlanta. europeident obama is in for a summit on nuclear security. the real issue is the crisis in ukraine. hans nichols is in the dutch city. what do we expect to hear come out of this meeting? obama wants to have is a unified response and potentially additional sanctions. earlier when he arrived here he
met with the dutch prime minister. listen to what the president said in terms of the possibility of tightening the screws even more on the russian economy. i thought we had that sound mind for you. i apologize. obama is looking for allies. he's going to be listening to his european counterparts. is going to be taking their temperature to see just how far torementally he can go having additional sanctions. what we have seen so far is a step-by-step approach. he went from targeting individuals to industries. it could be something like the banking industry. that could be a potential pressure point for some of the billionaires that support president clinton. t putin.dent
>> why is there no talk of going after billionaires themselves. to make the oligarchs feel some kind of pain and put some pressure on vladimir putin. why not target them individually as opposed to some vague industries in the name? >> that is kind of what happens. you have a list of sanctions of visa restrictions on a handful of individuals who have been responsible for the moving into crimea. we have a few of his wealthiest supporters who have these as tol as government functions have these. it is taking the effect on the economy. assia is staring at recession. even from russian banks to get had several quarters of
contractions. the other side of that is that putin's approval rating has tripled spirit as long as he has the support largely of the people he comes into question if you think russian is a democracy or an oligarchy. if you think it is an oligarchy, you may have the ability to pressure him. if it is a democracy, you have two for the pressure on it. hans nichols joining us. thank you so much. we will with you in coming days. >> we will have more on the crisis in ukraine. we will speak to a russian expert who says vladimir putin is like darth vader and president obama is playing the role of when he the crew. >> what happens when punk culture makes online journalism? we are streaming on your smart, tablet and bloomberg.com ♪
>> less than 20 minutes ago the malaysian prime minister out a press conference providing us with new information on flight mh370. he says new data provided by a satellite company, and these calculations suggest the last in then of 370 was southern indian ocean, remote location. this is the rough whereabouts of where the plane might have gone down. no discussion during this press conference of the possibility of survivors, even wreckage. just this new information culled that the plane took a southern route and ended
somewhere in the end of the indian ocean. don't know whether there was foul play art was accidental. we know the malaysian government will host another news conference tomorrow morning with update on the latest developments. in the meantime, the flight mh370 ended in the southern indian ocean. >> precious little to go on. you have to feel with the families of the victims. in the meantime, we are asking what is vladimir putin's next move? that is what world leaders are trying to figure out. what would it take to stop him if they knew? at we want to know. that is what our next guest will talk to us about. he is a renowned criminologists. i am dying to know what you think vladimir putin is going to do next. tell us. exactl, i wish i knew the
answer to that question. there certainly going to be something. there's no way he went about this exercise to get crimea and basically use ukraine. lose ukraine. he will be fighting hard to ensure that the government in ki ev will be there in the future and will be relatively more sympathetic to moscow than what he sees right now. the biggest concern for everybody is looking at eastern ukraine and southern ukraine. they are relatively more russian but not as russian as crimea. he is going to be using all the bag to make itgb more unstable. to try to provoke the ukrainians to do something that would be used as the provocation than to respond. it is still going to be a very
dangerous situation. havell do not think we mr.n the measures for putin to change the calculation. we're never going to change the calculation about crimea. the key is to change the calculation if he is giving to act in eastern or southern ukraine. take forould it president obama and other western leaders to do to be able to change the calculation? have hitk we should him upside the head with tougher economic sanctions a long time ago. what the president did announce on thursday was better. it has been a little bit too little too late. to be moree have got leaning forward on providing military assistance and support for ukrainian military forces. we have got to be careful about this. we do not want to encourage
ukrainian military forces to do anything rash that would then be interpreted by vladimir putin as a reason to come in. forwardto be more leaning so they will have a better chance of defending themselves and the cost will be greater. deterrence is still very important. important fore mr. obama to work with the european allies on strengthening the capacity of the ukraine government economically and militarily perhaps rather than the sanctions issued. colleague hans made an important point that they were heading toward a recession. emily before the excised ukraine. putin has made the calculation that i'm not going to take the measures to reform the russian economy. i'm going to change the conversation. i'm going to emphasize rallies. i'm going to emphasize trying to that will make me
popular with the russian people. that is my play for now. >> why is it other presidents before him, george w. bush have almost copulated and been unable to figure out vladimir putin. what do they not understand about mr. putin? >> it has been very hard to accept that he does not really believe, that he wants to change the results of the cold war. i think it has been very difficult for americans or europeans in general to understand thing credible psychological trauma that russian people in particular experienced with the collapse of the soviet union. it literally from one day you went from being a superpower to the next day you are a recipient of humanitarian aid. so powerfulthing and russian national identity,
being powerful and respect his. he hit that hard. he has looked for opportunities where on the global stage she can resist what he sometimes u.s.the excesses of the unilateral power. more specifically in the case of ukraine or georgia six years ago, he can rewrite what he sees to be some of the wrongs from the cold war. he does not have a grand strategy about reestablishing the soviet union. he is very opportunistic. he is very it's technically. -- effective technically. this guy is not going to go out with a emperor like mr. gorbachev and the ussr. he's going to go out with a bank. that is why the deterrent factor so important right now. his psychology is very different. position to a influence russia as a deterrent?
would it be china? they have been oddly silent. it -- isis a comic aid in a complicated position. they are involved in several territorial disputes themselves right now. of the there is a pieec chinese leaders was admiring him for the brazen move he has taken in addressing territorial issues. i do not think we can expect the putinse to talk mr. > down. the chinese will think it is great for the russians and americans to be fighting, there must be some benefit we can derive. >> thank you for joining us. let's switch gears. it is a new formula for spring training. if they build it, surely the major league teams will come. that is coming up next on "market makers."
>> it is time for bloomberg to go on the markets. we begin with a big mover. it is usually influencing the nasdaq the most. ubshis is a report from , so muchiphone6 ballyhooed because the possibility of a larger screen will be released in august or september. this is in line with the timeline of apple's previous project releases. it would not be a shocker or surprise. >> the idea here is that new products drive the stock price. they might be out and august or september.
they are streaming live and on-demand television as well. splashed over to the front of the wall street journal getting attention as well. did we mention what is going on in her life? the stock is up 4.7%. short, carl icahn long. he is adding three of his nominees to the board under an agreement that this will give him five of 13. it wield much influence. >> context is key. they began an investigation into the business practices. he has been pushing for any kind of investigation. he is raising the stakes one more time. they appear to have found the magic formula how to attract the young male viewers advertisers love. we will have that story. >> lions gate is hounding on
>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> i am in for stephanie this week. welcome back. >> thank you. folks, get the flu shot. >> he learned the hard way. are a businessman and the city offers to build you a state-of-the-art factory to lemonade all of your taxes and pay for the upkeep and maintenance of your building. sound good to be true?
not if your business is in major league baseball. that is what they are doing first bring training these days. tax payerdoling out supported subsidy after subsidy. is in fort myers florida today having a look at the economics of spring training. art instate of the spring training facilities is the 72 million dollar jet blue stadium where the red sox train in florida where we were earlier this morning. what is even more amazing it was was built just 20 years after the city lord the red sox here by building them another part. the stadium today sits empty. the county pays more than $1 million a year to keep it in pristine condition just in case another team wants to move in. >> a lasting years that a lot of rates. been possibly to bring this up to the level. to build a ability
new facility and keep the red sox here for an additional 30 years. so far no takers. the washington nationals to come. they wanted 36 nine dollars in renovation. the county had to refuse. it's been $69 million. hammond stadium where we are now. the county paid for everything and gets almost nothing in return in terms of revenues. same deal as the red sox get. they are getting $46 million in upgrades to this facility. taxpayers are going to have to pay almost $500 million in the bonds. the trick is most of the taxpayers come from out-of-state. >> these are visitor tax dollars. they are being spent on these
facilities. we are enhancing facilities with tourism dollars to increase and mature future tourism through that same activity. baseball spring training generates 47 million dollars of economic activity, which is what officials here say an economist are skeptical, that 1% of the10 of overall gdp. most people come here for the beaches, not for baseball. 200 79,000 people attended baseball games out of 5 million visitors to fort myers. economists will say it is an awful lot of money to spend for a small amount of stimulus. debated this argument time and again whether public tax dollars contributed to things like stadiums and stadium parking lots. ever pay off.
how skeptical are economists? in thee is not anyone academic world who has done a study of this to agree that you should subsidize ports teams. but you are doing is taking money from one area and spending on sports as people who would spend money on other things just spend that money on the sports activity. you do not create any new money. the argument here in florida is it rings people out of state. that is new money. raise to pay for these facilities cannot be used for something else. economists still do not see tremendous value in it. >> thank you so much. michael mckee joining us from florida. might just be catching a few rays in the process. >> we all need after the long winter. why an 80 something media mobile loves a company that targets young males. what rupert murdoch sees in vice
>> type from some top media headlines. grubhub is one step closer to going public. they have set a price range to the the ipo. they will be valued at one point $7 billion. among the investors a goldman sachs private equity fund. apple and comcast are in talks about teaming up for a streaming television service of wording to "the wall street journal." op would use the apple sett box and you can bypass congestion on the internet. nokia'sin the sale of cell phone division until microsoft. asian regulators are still reviewing the deal. microsoft agreed to buy it for 7.5 billion dollars. it is hoping to challenge apple
and samsung's dominance of the smartphone market. next storyect of our is bearded, tattooed, checking if the media world. he runs a vice media, a company giving traditional television a run for its money. it is growing its way to a whopping 10 figure valuation. jon erlichman caught up wishing smith. when he took over the boys of montreal in 1994, nobody thought he would hit his stride and one of the fastest-growing media countries in the world 20 years later. >> look at you with your knowledge. >> he is the guy that started this business 20 years ago in montreal as a magazine. now it has become this very influential video player. to watch the growth you have to look at where it is located around the world. we caught up with him here in venice. they have 36 bureaus around the country. the latest effort is vice news, meant to give them a bigger seat
at the table of the stories around the world. this is where we want to start some of the conversation. >> we just launched. we are still in beta. out for twoy been weeks. it has arty been a success with our coverage of crimea and the rise in venezuela. is it driving a lot of traffic for us but it is getting kudos by mainstream media who have been doing nothing but make fun of us. >> would you have interest in having essentially your own cable network to be for people to discover you in that way? up untild have said no recently. we have been selling so much tv around the world, whenever we look at something we were doing so many parties in london, summoning event that we bought a pub. we put all events in the pub and became our most wildly successful venture. we are selling so much tv in so
much ip now that is always smart to own your own platform if you can. we are looking at various opportunities. there is such a decertification going on a media right now. we are throwing off a lot of cash. we can look at buying distressed media assets. >> you are a profitable company. mean?oes that does that mean you are wildly profitable? what we do we are wildly profitable. we have been profitable since day one. we came up in a recession. we believe he had to make profit or you do not exist. we have been doubling our top when every year we have been in existence. it gets harder. there are a lot more zeros in there now. our margins have gone up. bs we are now licensing two mo mobile we are running at
around 834% margin. we're going to try to get to 40% or 44 next year. then the holy grail of 50% for an online company would be huge for us. >> what do you think your company is worth? >> a lot. i do not know. year we got pegged at a billion and a half. we have doubled since then. we have tremendous skill growth that is going along with it. if we hit our numbers this year and project out to next year, our worth would be exponential. if we are doing a billion at a 50%f topline margin with an ever-increasing scale, that would be worth as much as twitter i would think or a great company but not making any profit. in histy confident business. talking about the possibility of going public at some point.
fox is an investor. they own about 5%. he did that so they could stay independent. >> what is it about vice media that makes it so successful, that allows it to double revenue every year of its existence? that is a remarkable feat given it has a two decade run behind it. has anybody been able to isolate the explanation for its success? >> i would say it is twofold. number one, in terms of the audience they are serving, it is young. he is the kind of person who is going to say if people do not think that young people are interested in news a are wrong. coverageor their news to a global audience. they pick some heavy subjects. they go anywhere and everywhere to cover them. they built a strong following that way. asause they bill themselves an online company, they basically pay for the content for the online platform and have found with a growing universe
they can sell this content back to tv channels in europe or latin america or even to phone carriers in markets like india, anyone who's interested in getting video to make their platform exclusive or more interesting. there is your profit margin that comes with that. that is one of the key reasons why the business is growing rapidly. >> that is for the fascinating. thank you for bringing it to us. >> we're going to stay with media and tech and move onto eagle cofounder larry page. he says the more he learned about technology be more he realizes he does not know. he spoke to charlie rose last week at a ted event. he was asked about google's next moves. >> we are trying to make your ork, understanding your contacts, google knows we are what you might need. just getting that all to work. there are a billion android
devices now. we recently decrying casts. we are starting to work on televisions. androidwearunced this week for wearables. words, they are doing everything. you can watch all of that interview with larry page on charlie rose. that takes place tonight at 8:00 in tempe and that it :00 and 10:00 p.m. lions gate says it is the start of something big here at the team where your flick "divergent" opened over the weekend. will it be the next "hunger games?" that is coming up next. ♪
preproduction. for a closer look at how they are targeting the team audience, we are bringing in him. he goes back to bt and audience. can you give us a sense of how valuable that young adult demographic is? >> they read a lot of books first of all. they do. it is great. this sold 17 million books right away. a hundred 20ld million. valuable thanre teenage boys who go to the summer movies? >> this had the majority of viewers over the 25 years old. they write a book 14's. it translate to people. >> how to this movie? is it a thriller, sci-fi, or romance? >> all of the above. a ya thriller dystopian novel. >> this young adult theme carries through many movies, ," the vampire
films. some do better than others. there a couple of one people hoping to make into franchises. it did not work out that way. >> they start licensing these books before they even come out. someone has a page and we're going to make a movie right away? >> they start publishing appeared before comes out they have sold it. there has been a lot of flops. the fact of his $56 billion into a three more movies is rare. >> what is the decision between this franchise and the ones that became flops like the mortal instruments or "warm bodies." >> it is the growing star. shaving would lead -- shailene woodley is growing. it may be the timing of it. march is a good day. a number of factors. it is hard right away to know.
>> and that he bring her up. she and the movie are intertwined, sort of like jennifer lawrence was with "hunger games." she is being touted as the next jennifer lawrence because of the way she's been able to pitch the movie. >> she's really funny. she's very sweet. she is disarmingly earnest. it is nice to see people like jennifer lawrence. she does not play the usual hollywood conversation game. of thingsen in a lot before. she had a tv series. she was in "the descendents" with george clooney. this summer she will have another big movie "default in our stars." >> they're planning the sequel already. lying gate -- lions gate is putting all of eggs in one basket? >> i do not think so. they have a partnership with latino groups or cesar chavez
coming up this weekend. they have been able to translate ya books were a lot of people have not. that is a great benefits. they are thek studio. i think they somehow found what works. >> thanks so much. they say aboutt virtual reality? it is all just hype. right? maybe not. promises,des of false it is starting to feel a lot more real i guess. much of the credit goes to a startup that has developed the ski goggle like the type. it has gamers spellbound. the latesttested out headset. he is trying to find out when virtual reality becomes a consumer reality. thisght now i am wearing virtual reality headset. here i am flying off into space.
i now see my enemies. i am firing my machine gun. it is crazy. >> this is making a big promise that virtual reality will finally feel real. >> what if it were perfect and we could have experience with full body language, present, feeling like we're in the same space like the matrix but everyone realizes they are in it. hise created this in parents garage and started showing it in 2012. passion.ersonal now you are the cofounder of a company that just raise 75 million dollars moving toward a commercial project or it night get to live your passion. >> you get to meet people that are a lot smarter. >> one is him. up in the 80's and 90's. there are a lot of expectations
and excitement around it. technology was not ready. technology is finally there. takes one for a few seconds when you realize it has the potential. yet to find it. >> it has a new technology called positional tracking. when they lean forward they lean forward as well. they see a digital world with a new. >> it has advanced. we are able to deliver on the promise of the environment that is photorealistic. >> they accomplished a lot with this. it is very seamless. --m not feeling any lodge a not sure right now. >> it has brought out some competition. sony just announced project morpheus. is a prototype for the playstation four. executives are not worried. >> and number of people were jumping because you know proven there is a market for vr. i hope they take it serious.
hope they deliver something great and it just makes it that much bigger in the industry. >> both companies have many hurdles ahead. it is not clear whether they will ever embrace technology. there is no release date. >> when can consumers buy it? >> when it is ready. not a second before. i am not much of a gamer. i know you are not either. this intoyou get consumers hands or it is not just the early adopters anymore? >> we develop a product that people cannot keep their hands off of. around withto walk that? i do not get it. i am not an early adopter. >> usually you're sitting on your couch. it has to start somewhere. it starts with the gamers who can commercialize the technology. maybe it will find its way into things i do care about like medicine or other applications that will totally revolutionize the world. >> i think people on their
couches what's in the little more involving. most of the gaming is on their phones in the subway or >> bus. >>if you can elevate the experience to something that generally feels like reality, riftthe occulus inect and yout k have an amazing combination. in the meantime, it is approaching 56 minutes past the hour. time for "on the markets." mostix is falling the since early january. there are reports that apple is in talks with comcast overdelivering apple streaming service is and apple set-top box. we should note netflix is technically following, too, for several reasons. it dips below the 50 day moving average. that might be adding some momentum to the downside. >> it is hard perhaps to move the needle on netflix. will be back any
>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> comcast is trying to come up with their own a streaming television service. how baseball teams with to turn a spring training into a profit center. we will talk to the president of the twins. >> the inventor is trying to fill the gap between the bike in the car. >> you're watching "market makers." >> i am scarlet fu in for
stephanie ruhle. welcome back to eric. is very good to be back. >> these are the top business stories from around the world. that the concluded missing jet plunged into the southern indian ocean. of satelliteysis data, planes are still searching for the wreckage. plans to nominate three of coral icons candidates to the board. he has a 70% stake. if they are approved, he will control five of the 13 herbalife directors. the u.s. will push china to let its currency rise faster. the yen rose the most in two years. they want the currency stronger. inapple and comcast are
talks for a streaming television service to rival netflix. it would use a apple setup box and get special treatment on comcast networks. it would stream live and on-demand television programming and videos stored in the cloud. we welcome paul sweeney. on here?eally going who stands to gain the most between apple and comcast? >> hopefully consumers will gain the most. we are seeing consumers consuming more video content the the cable companies and satellite companies. they are consuming much more online video. if you are streaming video over the internet, the cable companies need to be careful that they are not left out. that they are not sitting on the sidelines as more people consume online video. >> is this capitulation?
if you listen to them, they say they have the best set-top box technology in the world. their software provides a superior experience. x one, that is probably the gold standard in the cable industry. they're spending him -- a tremendous amount of money upgrade. they are out in front. they still lag. some of the ease of use of mobile apps and things like that that consumers are kung fu with other smart devices, that is the next leap for the pay-tv universe. tv thatis not the apple so many investors are waiting for. sure we're ever going to get that apple tv product. , such anust apple
elegant consumer device getting into the online video business. >> apple has been trying to create a tv partnership in the past. what is the obstacle? what is changed? the trends are so clear about the amount of viewing that is online. the video content that is being viewed online is expanding every quarter. the growth rate is extraordinary. people are recognizing that this can bething they monetized through subscription services and advertising. that is where the users are going. leverage? the most is it apple with the technology that people are used to and like the format of the interface of, or is it comcast by owning nbc universal? the content. they can hold apple hostage with
their content. >> i think it the end of the day who wins during this transformation or growth of the pay-tv ecosystem is the content owners. it is the studios. it is the people who create the content. we are starting to see some higher quality user generated content on youtube. if you are the distributors of the world, you have to make sure that does not bypass your ecosystem. if viewing is going over the top, you have to be a player there. you wanted to be on your pipes. you control that look -- last mile -- you control that last mile into the home. they want to be at the table to some extent. >> paul, it is great to have you. paul sweeney of bloomberg industries. >> let's move on to the
geopolitics of russia. weak,ons are too economists say they maybe be enough to push russia into recession. we have heard about investors calling russia and investment basket case. we are also getting a financial reaction from the sanctions. what are you seeing right now? >> we are getting a financial reaction. on the street level, if you walk around moscow, there are two ways you would notice there is a crisis going on. one is if you look at the currency exchanges. the ruble is at a local -- historical low. russians look at the exchange rate. when they see that, they know that is not very good. the ruble was depreciating before they sent troops to crimea. the second way you would know is if you had a credit card from a
russian bank. 160 thousand credit card users of that bank have found they can no longer use the credit card to pay for things. atm,can use it at the bank but they cannot make any transactions with it. that bank was the first ever to be subject to u.s. sanctions. it was the first russian bank to ever be subject to u.s. sanctions. notercard and visa are servicing those cards. targets that we are seeing it, they are tipping rush in the direction of a recession. the bottom line is the majority of russians don't think life is getting worse yet. less than one third of them do. on the street level, there is not a lot of concern about these sanctions just yet. the financialat
world, there is more concerned there. >> what about the government? how is putin responding to the sanctions? >> if he is concerned about the sanctions or the threat of more sanctions, he is doing a good job pretending that he is not concerned. he spent most of his afternoon today presiding over government meetings. he spent time at an awards ceremony for olympic athletes. putin is to from turn a deaf ear to the western pressure so far. he is going about things as if it is business as usual. the big concern that i alluded ifis what would happen next russian forces were to go into the eastern part of the uke -- ukraine. the problem is not just for western countries or the ukraine itself. there is uncertainty for investors. not only do you not have any
investment going on right now, you actually have an outflow of capital. it is that outflow that is why economists say that the economy could be pushed in the direction of a recession. there is nothing palpable on the street yet. >> thank you for that take. he is joining us from moscow. we'll be checking on him as the story develops. >> bloomberg is taking you out to the ballgame. we are going to florida to talk about spring training with the president of the minnesota twins. >> more on the news of malaysia. they have concluded that the missing plane crashed into the southern indian ocean. we will have more on "market makers." ♪
370 flewluded that along the southern corridor and that it lost position in the middle of the indian ocean. ithis was west of perth. this is a remote location. possiblear from any land sites. joined by a john mcgraw. he is a former ffa official. the prime minister provided some closure of the victims. at the same time it, there were some signs that perhaps a breakthrough with sightings of debris at sea.
is there anything we could give us a sense of certainty as to what happened to the flight? >> i think you will hear more details in the coming days. we are talking specifically about what kind of satellite data they used to confirm the track of the aircraft. people need to understand that this is like a criminal investigation. all leads are followed until they run out. the most probable leads are the ones that are focused on. now they will be able to focus all of their activity on a specific area because the other leads of played out. >> here is another question. conclusivelyablish that the data suggests that the plaintiff took a southern route toward the southern indian ocean , many thousand kilometers off yesterday and coast, is there any sense that we can determine
no airport nearby. there are no islands nearby. it is empty ocean for thousands and thousands of kilometers. >> what it does rule out is that they were attempting to go land the airplane somewhere. is still on the table in terms of what would cause them to turn that way. know is nobody turned that way intentionally to go land the airplane. there is nothing out there. it brings you back to some of the theories around either the that the pilots could not control because of incapacitation or they feared the plane for some reason. >> given the vastness of that part of the ocean, is there a chance that they will ever be able to recover the black boxes? >> i think there is a good chance. the 30 minute life of the
battery is a specification. if it has been serviced recently, it could last longer than that. ofnow they are doing a lot air searches, there's also a surface search underway to pingn to the pain your -- er. i am sure they are trying to find it. big engines tend to stay intact and are easier to pick out. i think they will eventually find this. >> we can only hope for the day that this mystery is resolved. in the meantime, so much sadness for the 239 people on board. thank you so much, john. we will be right back here on all and quote -- "market makers." ♪
>> it is not enough for baseball teams to have state-of-the-art stadiums at home. they want them during spring training as well. we are going to go to fort myers, florida. mike mckee is with the president of the minnesota twins. >> thank you very much, scarlet. we are in a rain delay. unfortunately, the weather is not great. are you going to be able to play today? >> i hope so. we are talking to mother nature about that right now. >> a lot of people will come out if the weather cooperates. it is a very expensive stadium. things have changed over the last 20 or 30 years. it used to be that you came to get in shape for the season. or a club like yours, it is a moneymaking affair. >> it is still a but getting ready for the season.
fans have figured out spring training. there is an atmosphere and a culture that is much more laid ack and more grandstand friendly than a major league ballpark. when you consider all of the minnesotans that want to get out of that whether we have had an come down to fort myers and watch their team, it is a money maker and it has been a business that is grown exponentially. >> it has to be important for a small market team to make money on this. >> we have had a great run and fort myers. this is a spring training hotbed. share this market with the red sox. enjoyof baseball fans coming to southwest florida. it is been a great are typically county. >> they have spent a lot of money for you and the red sox. it for them? >> there is a significant roi for lee county. from welloming
outside of lee county. most are coming from the upper midwest. they're spending money on restaurants and hotel rooms. they're spending money at local attractions. it is a significant economic development. it works for both parties. it is a true when/win. here. get upgrades do the twins ever consider putting money into it as well? >> we are putting money into it. this is a $50 million renovation. we are investing $8 million. we are putting in dollars every year in terms of people buying homes, players training here year-round. there is an economic benefit to the county the goes beyond spring training. >> what about florida? -- 15 teams are here. some teams moved to arizona. where does that stop?
training baseball is important to communities. as long as they see the value, i suspect it will continue to be in discussions. i know the governor stop -- scott is interested in stopping the migration to arizona. we have him put -- committed to being here for another 30 years. we enjoyed a model partnership. >> what do you get for the money here? a baseball layer needs a field to play on. where does the money go? >> there are dollars in player development. more importantly, the dollars are going into fan amenities. fans expectations have changed. even here at spring training, they want wider concourses and a better array of concessions. they want wi-fi. a lot of those dollars are going to enhance the experience for baseball fans, whether they be
fans in fort myers or fans traveling from the twin cities or upper midwest. north, have you found it makes a difference? there is athink doubt that it makes a difference. they have given us a tremendous advantage. we are doubling down on that. we are building a player development academy as a part of this renovation. we think that will be a game changer for our young players. we do believe the spring training and specifically a partnership with the community itself is a difference maker for the minnesota twins. weird fact about fort myers. every team that comes here has won a world series shortly thereafter. you have 30 more years to go. should you move and come back? to follow the red sox lead and get back into the world series. >> thank you very much for
joining us. back to scarlet and erik schatzker. >> stay out of the rain. that is mike mckee and with the president of the minnesota twins. >> with our approaching 26 minutes past the hour. we have seen a bit of a selloff over the past 90 minutes. >> i came in at 4:00 this morning. the market action was mixed. you did have some disappointing data out of china. that showed manufacturing weakening for the fifth straight month. there was not a lot of information coming out of the states. there was not enough to move the needle. >> one of the stock stories of an following is our life. -- herbalife. they have agreed to add three carl icahn nominated people to its board.
this will take a little while to happen. he will have five of 13 directors on the board of herbalife. the battle continues to play out. i guess today it was in the win column for carl icahn. with a stock moves six percent against two, you are further away from breakeven. >> thank you, scarlet for joining me. she is going to step off this debt. i will be back for another half hours of "market makers." we're looking at the company responsible for the most memorable sounds of the last several decades. plus a design that wants to redo your morning commute. bloomberg back on television.
>> live from bloomberg headquarters in new york, this is "arkham makers." -- "arkham makers." >> eric clapton reaches for a guitar and he normally picks up offender. keith richards, offender. has beenc stratocaster the finding the sound of popular music for 70 years. in the made in america series, we look at the company that has been manufacturing the tars in southern california since 1946.
-- guitars in southern california since 1946. i started playing guitar when i was 12 or 13. the company is full of musicians. the fender musical instruments has been around since 1946. we are the world's largest producer of guitars and amplifiers. john mayer, eric clapton, keith urban, jimi hendrix, they have all played a fender instruments. everything is a classic. everybody uses it. it is everybody's first guitar. it triggers memories. this building produces the quintessential fender product. guitars are interesting. there are a lot of industries where globally, an american-made product is the most premier and prestigious and highly sought after product.
fender guitars are. people will spend years to be able to afford a fender guitar. there's no question that sometimes running a business in california is challenging. there are a lot of regulatory issues. you know what question mark we have so much pride in our , wetage and our roots here have always been a california company and we are not going anywhere. the two main components of the guitar are the body and the neck. for each of those, they start off as raw pieces of wood. >> this is a three-piece spread of ash. these are the samples that we use to make sure that we have
the shape of the neck exactly right. you may have heard of this guy. of ans is a thousandth inch off, you can tell. come throught to here and see some of the machines that are in use for 50 or 60 years. >> this is painted and go straight hearing process. this all comes together. >> now we start dressing the front, putting the electronic senate. electronics in. this is going to go out to the next rock star. no conversation about guitars and be complete without our resident axman, tom keene. see paul great to waller there.
he is legendary. >> fender or gibson? thathad an acoustic gibson was stolen. it was a phenomenal acoustic guitar. i am the worst elect coming -- a letter guitar playing -- player of all time. the custom shop that fender has done is just fantastic. neck, maple or rosewood? >> i like maple. and so muchthe tone comes from the neck. it was so great to see all the different next of the stars lined up. neck.t a residence to the you also get playability. qualitiesnd the neck are a good deal of what you are paying for. >> single coil? >> i am much more to the fender
sound. i have had a number of gibson's over the years. going out of business almost 18 times. they are on a massive role, part of which is electronics. i have a guitar that was built a year or two ago that was built by the custom shop. it doesn't -- that is not my actual guitar but it is just like that. it does not have the same electronics. >> what else you have question mark --? >> this is not mine. outn't have the sexy gate -- decal. that is much like what springsteen uses. that is a purist. it is about tone. nobody, including gibson, nobody
scooter or a motorcycle? how would you describe it? >> i would describe it as a two wheeled car. ,f you look at the statistics about 72% of everyone driving drives alone. it makes sense to cut the car in half. there are some disadvantages to cutting a car in half, if you get the romance and of a motorcycle and put that in, you have a global winner in the transportation sector. >> motorcycles are pretty popular already. why did you decide to make a two wheeled car? to ridebody would like a motorcycle. there is a huge safety barrier. when it comes to sustainability, having a lighter and safe vehicle that gets a huge amount of range is something everyone would love to have.
from a sustainability standpoint, it made a lot of sense to cut the car in half. >> we have not talked about the balancing issue. you use gyroscopes westmark --? >> it is not like in your iphone or a segway. it is like a spinning top. it it weighs about 40 pounds. they are more commercially available in satellites. we took that space technology and brought it down to a consumer level. >> let me put it to you this way, how big of a market do believe there is for this car at one of $4000? ?ow many do you expect to sell >> the market is pretty large. internationally, i think it is huge. when you look at competing with
subcompact cars or commuter vehicles, that is a gigantic market. that may be. subcompact cars and commuter thecles cost half of $24,000 and you're asking for this vehicle. >> that is true. our price is almost a double of tall thousand dollars. those are volumes of millions of units. once we get the volume, we will be able to compete or beat that price point. >> how long will it take before it is in production? >> it is a simple and easy vehicle to make. it has 1/10 the part count of a regular car. 2000 parts as opposed to 24,000 parts for a car. we went to get into production
this year starting this year. we want to grow in volume based on sales. >> how much money will you have invested? how much will the been invested? $22e are looking at around million. just around that ballpark. this to be the same place tesla was at their roadster. >> you are comparing yourself to tesla? thing it tohe only compare to. for us, it was important to be very frugal and to be very resourceful. the most bangt out of our box for dollar spent. really wellre doing right now, which is amazing. i'm looking forward to this year. >> you have certainly come up with something different. good
>> the tournament is in full swing. before it is over, you will hear much about companies and using billions to people watching television and obsessing over brackets. one company says those assumptions are wrong. a company that places temporary candidates in jobs. they came up with some different results. >> we looked at morale. to benefitany can do from the cultural phenomenon of
march madness and all the energy and momentum that builds and take that the workplace and embrace it. beat them,e of don't join them. to get into productivity and morale and camaraderie amongst individuals. it is a common thing that is going out there. >> march madness on its own may be fun, in order to make it productive, you have to embrace it and channel it into something? >> you can use it to put a contest together. put your employees in different brackets. the standards and use it as a reward. you can again stepping out of it as opposed to just being a time distraction. >> what did you learn when you did a study? >> we studied morale on managers
and if they could increase her activity and row. employees individual if they were more productive during march madness. >> do you think employees are biased to say yes? >> sure. there with to be technology. corporations can do things with their bandwidth to block certain things. site.uld take it off maybe you could come in late after their alma mater plays. >> this almost sounds heretical to allow ploys-- to come in late. >> it is all about employee engagement and retention. there are not a lot of things that happened to the year they can interfere with the workday. >> only at a certain level. below a certain level, everybody is fighting tooth and nail to keep his job.
there is not a surplus of jobs in this economy. the rank-and-file, they are still fighting. it is important to communicate with managers. they did he want to come in late or take a longer lunch. >> is there a business opportunity here to use advance like march madness to create enhancingty activities? >> you ken -- can have contests. you can increase productivity. health and wellness contests. you can adapt that kind of thing you for this? >> it happens during the work day. the super bowl is off-hours. capture thehat zeitgeist often don't interest
-- interrupt the days. this might be time for companies to look at ways to embrace it. >> are there other events like it during the year? i think of the world cup that is coming up. that will be more popular in europe than it is here. >> that is the one thing that comes up. some sports like soccer are year-round and happening in other countries and time zones. >> how is your bracket doing? >> not very good. i am pulling for the underdogs. arizona, and i forget my fourth. >> i wish you luck with your bracket. you is a company that says can't use advance like march madness to promote productivity as a prose -- opposed to just killing it. , bloomberg is going on the markets for me get back. ♪
the vest her's in russia will be anding about vladimir putin what is going on in the ukraine and crimea and whether there is financial opportunity. us to go on the markets once again. julie hyman is with us. >> we are talking about derivatives with options. we are starting the week in the red after hitting a record on a friday. is fix is higher -- vix higher. al, it is not surprising that we are seeing people buying put. we are seeing a decline in the overall market. are we seeing some pessimists optionsd into thevix about where the markets are going next?
reactione a knee-jerk today because of friday. over the last year, we have had seven different stairstep moves up in the spider. we had an all-time high. of the first six times a week the doubt tom at we saw the vix fall. it shows a great deal of complacency in the market. that is when the market chose to reverse. friday,had our highs on the 14was trading in area. we are not going up. thatix hasn't fallen into complacency level. up,ally when a stock moves volatility falls. when it hits all-time high levels, we get more interest and
the tao picks up. yder lookhat the sp like on friday. we are looking for a correction. i don't see the skew confirming that. the skew is not very steep. this is a fairly new occurrence and it hasn't taken hold it. i'm looking for more upside. >> interesting. that is certainly what we are seeing. you would not go wrong if you were betting on that over the past six months or so. one of the other most active's today and one that is in the news is bristol-myers squibb. the company came out today with positive results. they have an experimental drug. the stock is down. what are you seeing in the options market? are seeing a lot in the half strike. saw 7000rst hour we calls. there was some bearish activity.
i think we are seeing a buy the rumor experience. the same kind of results came out and we saw the stock rally six percent. i am still bullish on the stock above 49. i took advantage of today's downward move. >> i want to get your strategy on another individual stock. that has been incredibly volatile. that has characterized the action. it was up a lot last week after the updated guidance. what is your strategy going forward? withrst solar came out projections that were bullish. the stock popped 20%. it popped up into the 70 three quarter area. it is hugely overdone.
assumptions are built into the projections are technology and competition. there are all kinds of assumptions that are in there. i think that at 53 it is cheaper for solar. >> what is your strategy question mark --? >> i have no risk to the downside. i hope it goes out worthless. there.l have to leave it we would back on the markets in 30 minutes. ♪
wewelcome to "lunch money," tied together the best stories, interviews, and business news. i am matt miller in for adam johnson. googler in chief, larry page is tremendously upset and super excited all at the same time. sports, is the ability, who will pay? the stadium business comes to spring training. the two sides of a herbalife story. carl icahn gets more seats, bill ackman about to break even. vi