tv Lunch Money Bloomberg April 8, 2014 7:00pm-8:01pm EDT
♪ >> welcome to "lunch money." we tie together the best stories, interviews, and video in news. i am matt miller in for adam johnson. jim's big fix turns out it hasn't even left the parking lot. in media, amazon on top. the e-commerce giant be too low and apple at their own game, sort of. in nation, equal pay under the law. president obama wants federal contractors to get on board. in the classroom, sprint is reimagining the reading process one word at a time. and the final frontier, even instagram has made it.
that is coming up. kicking off with what everyone is talking about, ukraine and russia back in the headlines. >> the spontaneous protest taking place in the eastern part of ukraine. the u.s. accusing russia of instigating this unrest. several hundred pro-rusian protestors. it is said to be similar to what happened right before russia happened to annexed crimea. >> what you are looking at is eatern -- eastern ukraine. those that you're looking at our pro-russian demonstrators in front of a regional government building. once the sun came up, it was a different story. these are some of those same protesters in handcuffs. the progression demonstrators are not just in this city, other
cities are also seeing protesters. it has a large pro-russian presence, and the white houses onto to it. >> we are concerned about moves byscalatory russia in ukraine over the weekend. we see those as a result of increased russian pressure on ukraine. there's strong evidence suggesting that some of these demonstrators were paid, and were not local residents. >> a strong accusation from the white house, that russia is paying these people to disrupt and maybe even start a civil war between the pro-russian eastern ukraine and the pro-european western part of the country. the russian government says it is not true. here's the expert stake. >> it is a counterclaim that there are russian intelligence agents inside these groups is and this isight, not disputed by anyone.
with these special services company he is infiltrating spontaneous protesters, i think some of this is genuine, and then backing him up with 40,000 troops 30 miles away you're going to sit there for as long as this crisis goes. always ready to come in and intentionally impose a military solution if the ukrainians fail to solve it. they gave every sign of doing that. >> the white house has a message for ukraine. >> this would be a very serious accusation. we call on them to cease any in ukraine.o this >> russian president vladimir putin is his usual defiant self. he said he has is right to defend russian speakers in ukraine from fascists, after the
ouster of the president viktor yanukovych. clinton says they are conducting military exercises, and will with draw afterward. former white house security visor richard bove rep told us us how the u.s. play this chess match. >> we should focus on his long-term strategy. we should ensure the government in ukraine stays reliably pro-russian, in it's an orientation. i do not think he is obsessed with the short term tackles of what is happening in the street in these particular cities. >> can ukraine straddle on be pro-russian and pro-nato at the same time? >> very difficult to see how. that is one of his red line, he will not permit the expansion of nato or the european union into the ukraine. how does that get accomplished? not by militarily carving off
the eastern provinces, that accelerates what he is worried about. what is going to do is let the ukrainians do his work for him. what him under so much pressure from internal pressures that they fall prostrate before him. >> putin is not the only one talking tough. in russia. lavrov,oreign minister, i think this line is incredibly telling will he writes the world today is not a junior school were teachers assign punishment that well. he is talking to the secretary of state to the present of the united states committees calling them cool teachers. >> the gradient lawmakers may need a teacher in the room, a fist fight broke out in ukraine's parliament today. they started back when they ousted yanukovych. we have a long way to go in ukraine. coming up next, we get an inside look into airbus's new a350.
bloomberg.com, so you can access on your tablet and smartphone as well. today in motors let's start with a couple of headlines. bmw is looking to open it second north america factory. the world's biggest maker of luxury vehicles, they have been narrowing the list of locations with at least two sites in mexico still being considered. >> this is about going where the growth is. the u.s. is already bmw's largest market and sales continue to rise their. re. the stands in stark contract to the sales in the european market. this is after six years of decline. we are hearing that this new factory made the bmw three series cover that is their best-selling model. what is interesting about it is that would help them to compete against mercedes in the u.s.. bmw and mercedes are locked in the heated battle for the top spot in the u.s..
this would clearly be something on bmw's mind here. >> we will say that the billion dollar investment into bmws south carolina plant makes it the biggest factory in the world. general motors is staying with its 7 million vehicle recall. as of this morning, still zero gm dealers in the tri-state area actually had the parts for the defects. we called almost every single dealership. obviously, they cannot begin the repairs. i reached out to gm directly company spokesperson told me that no delay on parts, and they are on their way. we have always said the week of april 7. it is the "week" of april 7. no rush as long as you take your keychain off. gm may be in the hot seat for a recall 10 years too late, but suvs are getting top marks for front end collision safety.
the chevy equinox and the terrain got good marks. they earned a rating of good, and the results were released today. the test simulates what happens when the front corner of the vehicle collides with another vehicle, a tree, or a pole. it is one of the most dangerous collisions possible, so you want to score highly there. the toyota highlander was deemed acceptable. the other six vehicles in the test were marginal or poor. gm is still dealing with fixing the two point 6 million vehicles that have faulty commissions switches, the ceo of saatchi & saatchi has seen this before, with tylenol. he is the perfect person to see just how well the chief, mary marra, is faring. >> three intervention taken control commission is leadership coaches stood up and say we have this wrong, this is what we're going to do, and we are on our way. >> we suggested that hiring ken
feinberg, that has to be taken as a positive. the real question is, as jim -- does gm look back to their past, will the guys like you say look forward? >> it is a combination of and/and. they have built loyalty and cars. i think over the past 40 years, at number two and number three in terms of this they have done pretty well. now, it is about the future. what we going to do now to fix this problem? what are we doing now to bring back quality, reliability? win trust. >> as digital media and constructed tool for companies in brand troubled? >> it is more of a tool now, it is a way of life. it's the way we live our life. we are all digital native. we have to understand this market and these rants, and with to communicate with people where
they want to communicate and how they want to communicate. >> you go from a full-page tylenol ads in every newspaper in the country 30 years ago to endless tweets and facebook. is that the reality? >> it was not the ad that made tylenol and the recent successful, it was the quality integrity of their leadership. they goal, took steps to fix it, look, we fixed it, and here we are back again. >> now to accompany learning from the problems its rival has faced. airbus has put unprecedented resources into the debugging the a350 to avoid the kinds of issues that boeing's streamliner has had. the risking is what it is called. success could help airbus dominate the market. being the competition is not just about the safety it is also about the ride. airbus showed off the interior of their a350 for the first time. how does this compare with the dreamliner? >> meet msn2.
it is airbus's mockup of the a350, like a show and tell for airlines. potential customers. airbus says that offers appear passenger comfort. boeing said pretty much the same thing about the dreamliner, so how do these rival stack up? a cabin with that is 5.6 meters means that airlines will really be able to pack them in, that means that the a350 has a 10 across seating option. the dreamliner has a maximum of nine. itss just narrower than rival. breathing easier on an a350 flight, thanks to a new aeration system. it changes the air inside the cabin ever three-four minutes. lower cabin pressure makes for a
more comfortable ride. dreamliner's have the same lower air pressure, but also equipped with special filters that suck up those smells from food that guy sitting next to you who just took off his shoes. disco views from the euro scene, the a350 has a full led lighting system, that has 16 million color options. the dreamliner can mimic sunrise and sunset. >> and looks incredibly uncomfortable to me. i do not know, just my opinion. from the skies to space, tonight is a good night for stargazing. we will tell you why. amazon is flying high after seeing new numbers in video streaming, media is next. stay with us for that. ♪
♪ >> this is "lunch money." on bloomberg television. we're streaming live on bloomberg.com, see you can get us on our tablet and smartphone as well. i am matt miller in for adam johnson. media today, the battle for viewers. amazon says it has scored a victory. the e-commerce giant says it is past apple and hulu in terms of the number of video streams. they cited data from online via tracker quilt. video service nearly tripled in the year ended march. we broke it down with betty
liu. >> this gets to an issue with all of this online streaming, that it is not measured as price nicely as television is where we'll see the nielsen ratings. we know from the nielsen data that people spend four hours a day on average watching television. they spent 10 minutes a day with online video. we've done some survey work that would tell us that the leading things that people use online are youtube and netflix. 18% of consumers are using that multiple times a day. amazon prime was closer to 10% of consumers. to connect with hulu, they're doing somewhat better. that puts them to the upper tier. you see video transforming. we have this traditional cable pipe that is now exploding to online distribution. all of these online companies are seeing video as the next iteration killer app.
it is really great for content companies, and it is a challenge for the traditional distribution companies. >> it is indeed. but, barton, you hear about the millions being put in place i read some with xbox. is that money being put into higher big names to come on board and create that content? >> i think what the tech companies are finding out is that this is a very different business. 20 years ago the hot applications were software for computers and laptops, and now the hot applications for a tablet or a smartphone is popular but he content. people like yahoo!, people like amazon want to spend and create their own shows and own that kind of a killer app. that is difficult, you're the only guy who has had success is netflix. >> while amazon says it is the
leader in video streams, nbc now says it is the leader in the most coveted viewership demographic in the world. the broadcast network says it will close the season with the biggest audience in primetime among viewers ages 18 to 49. worst to first in three years. under 3 years. ed lee. >> the way they are trying to spin us is that we are number one across the board for and that is true at least in the 18-49 demo. that is the demographic that advertisers buy. none of the other demos, except to -- one to 54 are they buying. more than 60% of their ads will come from the demographic of and if you're not in that
demographic you're winning. they're winning it in the tonight show with the new host jimmy fallon, and it is not just pie time, it is dayparts as well. super bowl, the olympics, and football have had a big effect. the halo effect, ratings have certainly helped them. sports are still aboard to all -- still important to all tv networks. they're turning around, making it work. >> they were number one. >> we're going to get into this battle of semantics or how you frame the debate. cbs and fox both like to tout the total ratings, meaning that everyone aged two and up who watches. meaning they are the most popular if they are sold or not. cbs and fox tend to go back and forth on who wins that one, nbc is trying to say that i know you want to look at that, but that is not the important metrics. >> the popularity is not as measured by ratings these days, in a true sign of success if your site crashes on a premier. they can also take off a couple
million "game of thrones" fans. it was so intense that it crashed the cable network's online cap hbo go. they also watched the old-fashioned way like i did on tv. 6.6 million. it was the largest audience since "the sopranos" finale in 2007, which drew new 12 million viewers. president obama is making a push for equal pay for men and for women, and nothing to executive order's this morning. we will talk about those after the break. do you want to read faster? now there is an app for that. details coming up in classroom. ♪
♪ >> this is "lunch money." i know i have said it a thousand times, but i will say it again, bloomberg is streaming live on bloomberg.com. see us on your tablet and smartphone. search the internet for us. i am matt miller in for adam johnson. today's moving pictures where video is the story, a candlelight vigil for relatives of passengers on the missing malaysia airlines jet. it was one month ago that flight 370 went missing. family members gather around candles in the shape of a heart
with an airplane in the middle to pray and remember those on board. in san francisco, a smart car flipping. police are looking for vandals who flipped four of the little cars. they're trying to determine if the flipping for a prank or example of growing tension among some residents who blame the tech industry for the rising cost of living in the city. i think a lot of people hope the trend does not continue. a rare wine cup from the main foring dynasty, which sold $36 million. president obama is pushing to narrow the gap in pay between men and women. he took action, signing to executive orders, one preventing
gag orders that employers put into place to keep employees from discussing their pay. another directing the labor department. >> america should be a level playing field. a fair race for everybody. those who want to work hard have a chance to get ahead. restoring that opportunity for every american, men and women, has to be a driving focus for our country. >> a study out of the st. louis fed had found that the gap is not as big as the administration may be suggesting. the study says that only a 3.6 % gap exists in the pay for men and women for the same jobs. >> women choose jobs for the benefits of them i want more maternity leave, or health care. they can come down to 3.6% which
means it is a very complicated issue when you're trying to figure out how to address this. >> is the administration over things, by saying women are making $.77 on the dollar as opposed to looking at what jobs a woman is doing. >> that is a very kind way of saying it. what they're doing is that they are aligned. we all know that this number is overstated. we know that the pay gap is far smaller than what they say, and we know the reason. men and women are different if they choose different majors in college, and the reality is if you go to nursing it pays less and petroleum engineering. they choose to take more time out of the workplace, and that has an effect on their salary. if you look at how women in their early 20's are doing over there making more. the reality is this is far oversimplified. by the white house, and we should have a more honest con
verstation. >> midterms on the way. it certainly sounds good. >> this is an economic issue, it is not a political issue. whether it is 3.5%, four percent or whatever the disparity is, if it is based on gender, it should not be. it should be eliminated from the economy. it is that simple. in terms of the data, as you know, president obama is going to be signing an executive order tomorrow with regard to federal contractors and disclosure of salary data. i think that is a good thing, and it will add more information, more factual information into the debate. more transparency on pay practices. we want reader transparency, so hopefully federal contractors will imply with that. >> big brother really is watching, even more. while there is a big push for equal pay in the workplace, more men and women are staying at home.
the share of mothers who do not work outside the home rose to 29% in 2012 according to a new research study up from a modern era low of 23% in 1999. the recession has kept some mothers at home and out of the workforce while others they home after weighing the cost of childcare. a third of those stay-at-home mothers are living in poverty. it is a high-tech classroom, but is it something students wa nt? the answer may surprise you. plus, could you be the next asteroid hunter? nasa is looking and will have a pretty hefty payout. we will tell you why, coming up. ♪
>> this is "lunch money" on bloomberg television. we are streaming live on bloomberg.com, your tablet, or your smartphone. whatever. i'm matt miller in for adam johnson. in the classroom, learning and technology. traditional greeting is a time-consuming process. it up? here is sam grobart. businessweek. >> these racks and shelves
contain a lot of books. >> for thousands of years we humans have been pretty good at the whole reading thing. in most places we do it the same way, we start with our eyes on one side of the page can and we moved across to the other. a new company is working to change all of that. it provides words one after another. sequentially. want to read that way? if you're resenting things word by word of you do not actually need a very large display to read longer text. samsung is hooked up with them to give that technology on the latest line of smart options. 80% of our time reading is moving our eyes to the next word and refocusing. if we do not have to do that, and the words come to us, we can read faster. according to the research people using the program people read
about 400 words per minute. it is twice as fast as normal, and there are some outliers at 1000 words a minute. after about 650 words a minute, comprehension also for -- falls off a cliff. they want to account for 15% of all reading within two years. that is a pretty lofty goal, but they think they can make some inroads into the shorter form reading we are all doing. you will not read war and peace by using this, but checking your crowded inbox, and scanning a quick text message on your wrist has less to do company in digesting and more with just glancing at and burning through. >> it is actually very cool, but something that students get excited about? we asked more than 600 high
school and college students about the they use in the classroom. first question, which device students?pular among >> laptops of the most popular device, but we can see that people are using more mobile devices. tablets of smartphone together are kind of coming up second, individually they are not that large. we are starting to see more, but education is a slow thing in the classroom. >> the next popular answer was no device. why was that? >> they can't afford it, the do not know how to use it. >> a lot of features are pushing back on technology saying we are teaching much more basic ideas and technology can
address. the most thing about education is not wanting all of the stuff from the classroom. >> i think there are some protections around that. but i think that the court it is probably an expense and a knowledge gap. what can i do with that technology in my classroom that will help my kids? it is easier to just say i do not need it and it will cost a lot of money, or a particular teacher was a, they -- wants it, but they do not have the discretionary budget to go get five ipads. >> you said how many of you has improvedogy the classroom? >> people that there was a distracting effect of the technology, so it was both.
it was yes more people were saying it helps them improve their grades for high school and college, but also people thought it was a distraction. read, theas a book i history of technology in education had me thinking a lot, and it is a very vivid scene where this classroom in a great educational results but that the teacher would spend 11 minutes getting everyone booted up and i would've that is the reason we are seeing some of these reactions. >> i think it is historical. if you look at 15 years ago, there was huge hype. i think that proves not to be the case of there's a lot of false hopes that were -- if you're a teacher people told you that this was all going to change things before, and it did not. i think there's a lot of opportunity, we're are still seeing the very early stages of mobile in education. it is still very early. >> and teachers are now using
smart boards. both in high school and college their super popular. there is rudimentary electronic clickers to respond to the teachers that are very popular and universities. you can imagine all this will end up on the mobile device. the technology is going to change. and it will get there, it is just slow. people also thought of increased cheating. there are positives and negatives in the survey but technology in the classroom. >> kids are downloading things they are not supposed to be, some able so they cannot take them home. what about software? >> it is still very early. i think there is some great software out there for elementary school. that is where a lot of the work and effort has gone cap if you look at this market. i think there is not that much great software for high school and college kids. and that came through in the survey. people said they used software, but when you dug down, it looked like it was older stuff that has been around for a long time.
why is that? let's let nasa explained. >> april 8, mars, the earth and the sun are also in a straight line. limitary orbits are elliptical, that is slightly egg shaped. so the actually date of closest approach is not come until a week later. >> mars will be closest to earth on the 14th of and while you may also want to find some asteroids. nasa is holding an asteroid hunter contest, and if you help them you can get a pretty hefty price. -- prize. >> asteroids are important for two reasons. they contain lots of valuable natural resources, and they have the power of killing everything on earth. for both of these reasons, nasa
has created the asteroid hunter contest but you can win up to $35,000 if you can come up with a new and improved algorithm to track and find asteroids. currently there are only able to track about one percent of all of the asteroids in our solar system. that means there could be a world killing asteroid heading for us right now, and we would not even know it. we have had a couple of close calls recently. in 2013 a rouge space rock missed us by only a couple of thousand miles. closer than some communication satellites, and exploded with the force of an atomic bomb. it was just 50 feet across. an asteroid one-mile wide, becauseaerosmith, things would get cataclysmic. and the asteroid hunter contest, would be better to find these things before the world ending event. nasa's partner, the planetary
resources, is hunting asteroids for a different reason, profit. many asteroids are loaded with russia's minerals, which means that astra detective is not only weight to make sure we do not go extinct, but also to make a buck. >> check out the first instagram from space. astronaut took the photo from the international space station, and posted it on instagram. it is taken from the seven window observation room. there's another way to get up to space, sort of. had to six flags in jackson new jersey this summer. it is less about getting up
rebounding from the worst since 2011. not able to reclaim the level. 9% average stock is down from the peak. correspondent sat down on "market makers" to talk about velocity. >> i don't like the term, but i think the u.s. economy is in good shape. >> why don't you like the term? many of the engines are aligned.
>> with the rise in technology, questions about if growth will be lower than normal. be sloewer than in the past? >> we are going to grown in many countries as fast, some more. each country will have to look at it carefully. that is an issue for japan. >> the cut their target for russia. crimea was computed when
was not yet fully in play, so given what has happened that will likely lead to capital outflows and the investment downgradee may well that. >> what kind of ballpark are we talking about? >> if things remain the way worse -, if they get >> so we could be looking at negative growth in russia? belowdon't think so but