tv Lunch Money Bloomberg April 9, 2014 7:00pm-8:01pm EDT
♪ >> welcome to "lunch money" where we tie together the best stories, interviews, and videos in business news. i'm matt miller in for adam johnson. let's take a look at the menu. we have an ip0 frenzy. la quinta hits the market. allied is on deck for my and more ahead next week. and then the world according to biz stone. cofounder talks about life in silicon valley. in deals, comcast and time warner cable defend their planned merger in washington. no one really likes the idea. around the world, pussy riot tells it side of the story from
prison to politics. and in innovation, robots that think for themselves and behave like termites. get psyched for that. first off, kicking it off with what everyone is talking about. gm has company in the recall department. >> it is one of the biggest recalls in history, toyota recalling more than 6 million cars because of 5 million defects. the company does not actually know of any injuries or deaths linked to them, but the cars being recalled our top sellers , like the corolla, the camry, and the rav4. >> the company trying to avoid what gm is going through right now. and getting a recall out in the open. toyota also wants to avoid its painful experience of 2010 when it recalled 10 million vehicles because of unintended acceleration. back then, the president of toyota spent a lot of time in washington. regulators had punished the company for covering up information and being too slow in making the 2010 recall.
toyota has pledged to improve the process. he has instituted a three-year freeze on car plans to focus on quality and efficiency. it appears progress has been slow and as just last month -- toyota pledged $10 billion to address safety defects. >> rather than promptly disclosing and correcting safety issues about which they were aware, toyota made misleading public statements to consumers and gave inaccurate fax to -- facts to members of congress. >> in a misguided and ill advised crisis management, toyota made the decision to mislead the public to protect it brand. rather than come clean, the company covered up and misled again and again and again. >> put simply, toyota's conduct was shameful. >> it seems like a lot of that is going around in the auto industry. gm's ceo mary barra is done with her hearings in washington,
but regulators are not finished. highway and group isation safety them $7,000 a day until it answers all the questions it has to on those bad ignitions. gm was spotted to more than one third of the requests made by nhtsa with a deadline of april. not too bad for a company that made about 426 million dollars a day in 2013. i don't think they are sweating it. gm and toyota have not been very popular in washing, and also, on capitol hill, secretary of state john kerry is feeling a cool reception as well. >> secretary kerry, i have watched with great interest some of your comments and may i say, i think you are about to hit the trifecta. geneva two was a total collapse,
as i predict to you it would be. israeli-palestinian talks are, even though you may drag them while, are finished. and even though we gave the iranians the right to enrich, which is unbelievable, those talks will collapse, too. mali andalk about other places in the world, but on the major issues, this administration is failing very badly. >> wow, senator john mccain is just getting warmed up. >> on the issue of ukraine, my hero, teddy roosevelt, used to say, talk softly but carry a big stick. what you're doing is talking strongly and carrying a small stick, in fact, a twig. what has been done so far as a result of the russian dismemberment of ukraine in violation of a treat. -- treaty.
some individual sanctions, some the -- diplomatic sanctions, suspension but not removal from the g-8, and now more threats to come. here we are with ukraine being destabilized, part of the dismembered, and we won't give them defensive weapons. it is just beyond logic. >> all right, senator mccain. let's give the secretary a chance to respond. >> let me begin with the place that you began with your premature judgment about the failure of everything. geneva two, my friend, i said will not succeed, maybe for a year or two. if syria is ever going to be resolved, it is going to betray political process. and that political process, geneva two, is now in place, though the moment is not right because we still have to change calculation. secondly, israel and palestine. it is interesting that you declare it dead, but the israelis and palestinians do n't declare it dead.
they want to continue to negotiate. >> we will see, won't we, mr. secretary echo >> i bigger part -- mr. secretary? >> we will see. >> yes, we will see. >> it has stopped. recognize reality. >> we will see as he go down the road. there are serious problems and it is a tough issue, but your friend teddy roosevelt also said that the credit along to the people in the arena trying to get things done. we are trying to do things done. sure, we may fail. do you want to dump it on me? i may fail. i don't care. it is worth doing. and finally, on the subject of iran, we are talking. the option is, you can go to war. a lot of people are ready to drop bombs all the time. we can do that. we have the ability. but this president and the secretary of state believe that the united states of america has a responsibility first to exhaust every diplomatic possibility to find out whether we can prove what the iranians say, that their program is
peaceful. >> well said. although, it probably isn't. you have to render the answer to the senators question about ukraine, john kerry. >> the fact is, we are currently working with ukraine for determining their security needs. and based on those requirements, we will review options with the congress and find out whether or not we are in a position to provide assistance. >> your view of what the ukrainians need is vastly different from what the ukrainians think they need, which is the sovereign right to try to defend themselves, which is something we have done historically, helping people who are struggling against overwhelming odds. >> i just said to you we are evaluating with them exactly what their needs are and we will come back here and ask you -- >> they have said what their needs are a long time ago and you and i can sit down and 15
minutes knowing what their needs are. >> i think you both made your point. >> the greatest single need right now is to get the our -- their economy moving and to be economically strong, because they won't survive otherwise. >> it is not just the battle of the johns there. capitol hill pretty combative overall yesterday. check this out. >> recognize that content is not a big deal to our attorney general, but it is important that we have proper oversight. >> you don't want to go there, ok? >> i don't want to go there about the content? -- contempt? >> no. you should not assume that is not a big deal to me. i think that was inappropriate and unjust. but never think that was not a big deal to me. don't ever think that. >> holder was testifying before the house judiciary committee at an oversight hearing at the u.s. department of justice. golmert was revisiting a
terrorism case. contempt of congress. >> this was all about the gun lobby and a desire to have -- >> we have been trying to get to the bottom of fast and furious where people died, where at least a couple hundred mexicans died and we cannot get the information to get to the bottom of that. i don't need lectures from you about contempt. >> and i don't need lectures from you either. >> it has been difficult to deal with asking questions. as a former judge, i have never asked questions of someone who has been held in contempt. well, let me ask you -- gentleman has the been expired. asparagus.k with the
>> that last part was the best if you heard it. "good luck with the asparagus." that was a snarky comment from the attorney general to the representative. >> [indiscernible] aspersions on my asparagus. >> your guess is as good as mine as to what he was going for there, but it is pretty priceless. here is one man who, sadly, will not be battling anymore, james hellwig. the man known as the ultimate warrior died yesterday at age 54. he was one of the world's most charismatic and popular professional wrestlers. here he is just sunday after being inducted into the world wrestling entertainment hall of fame. >> the spirit of ultimate warrior will run forever. [applause] ♪
bloomberg television. we are streaming live on bloomberg.com, which makes us at automatically available on your tablet and smartphone. i'm matt miller in for adam johnson. companies left and right are going public, or announcing their companies public. today, it is lacking cap. -- it is la quinta. >> it opened below its listing price. as you mentioned, priced at the low end of its market range, $17 a share, raising $650 million overall in its initial share sale. blackstone, the private equity firm, the company that backed la quinta still holds 60% of the common shares after this listing. it is the third hotel chain that blackstone has taken public in the past year. before that, it was extended stay, and of course, hilton, which was the biggest hotel ipo
ever. both of those companies have seen their share prices rise since their initial public offering. >> it has already been a big year for ipos. kingd "candy crush" maker, digital, and grubhub as well. but they have had mixed results. >> the biggest ipo in the u.s. this year raising about $2.1 million. mixed performance since they began trading. if you look at the bloomberg ipo index year to date, it tracks companies that have had public offerings in the and past 12 months, not just your today. we have seen a decline for this year, whereas we had seen an increase over the past year. >> on deck for an ipo is allied financial. the auto lender rescued by the u.s. government during the 2008 financial crisis hits the stock market tomorrow. it is using the treasury
department to divest its stake in the company. at the high end, it would have a of $13.5 billion, according to bloomberg. >> it will give its money raised to the taxpayers him a which is good for us. but also come it has been under strict restrictions from the government since the treasury is its biggest holding. now that it is selling, it will be about a 17% stake, assuming the underwriters do not take their option. they will be able to have riskier activities in terms of making subprime loans. lower cost. some analysts are expecting that will help their bottom line. >> is this ipo frenzy sustainable? we asked bank of america's head of tech equity capital in an exclusive interview. >> if you look at the headlines that come out, they tend to
focus on the activity level as comparable to 2000. the natural question every one has is how sustainable it is. and if you look at health care and technology, people look and say, that cannot be sustainable. but there are some encouraging signs. the market is differentiating between companies. there are always stories that come out when a company with minimal earnings or revenue get s a huge multiple. however, the market has been separating between the types of companies and quality of revenue. that is something that would suggest that it is somewhat sustainable. deals inpo's to acquisitions and mergers, comcast is taking a bite out of time warner cable. and coming up next, we will hear cofoundertone, the
he sat down with emily chang to talk about what he hopes people take away from the book. >> my view of the world, i have described it as hallucinogenic leak optimistic, very aspirational. i would like people to take away some of the hard learned lessons that i share. if it is only one thing they take away, hopefully some of those chapters on creativity and the idea that everyone is creative, not just artists. everyone is creative and creativity is a readable -- renewable resource. i would also like people to -- take away a fresh perspective on on giving back. many people do it wrong and feel like they should do it when they are comfortable and older and have money. but if you start earlier to my givingust volunteering,
$5, the impact over your lifetime is so much greater. i talk about the compound altruism in this book. >> speaking of money, you don't sugarcoat how broke you were in the early days, like living in your moms's basement, which are -- with your girlfriend, in an apartment where you could buy a buy a bed. what drove you then? and what do you do now that you have money? >> i was always thinking of my future self, like future biz will be smarter and figure things out, so i will not worry about it right now. what drove me with the work i was doing was engagement. i always found something that i was really excited about doing. when i started my first sign -- first design studio and that led to my first foray into being a tech entrepreneur with the early social networking blog network, i believed in the
democratization of information. i was excited to work at blogger. money didn't matter, because it was more of a mission. the mission drove me, is the short answer. >> does the mission still drive you? >> yeah, for sure. >> stone talked about the future of twitter and why he already -- rich beyond his wildest dreams, does not pay much attention to the stock price. >> it's like when they tell you that you're trying to lose weight, don't look at the scale every day. it will go up and down. you got to take it way back and think long-term. will this be a company of enduring value? all kinds of different people in all kinds of different industries are getting value out of twitter. i know it is going to be a valuable company. people are getting value out of it. organizations are getting value.
television networks are getting value out of it. regular, everyday people are getting value. when there is value being created, you have something there. >> maybe you are not watching the stock price every day. >> no. >> maybe some employees are paying closer attention to it. there is a lockup period expiring in a few weeks. maybe you worry about the eight employees, insider selling off. >> the honest answer is i don't worry about that at all. i have come feet face in the deep executive bench we built at twitter. an incredibly talented team that is in place there. this is one of the reasons i felt like it was appropriate and i was comfortable leaving day to day, because the right people are in the right spots. >> emily also asked about the animosity between other cofounders.
jack dorsey and evan williams. >> there was a birthday party and i forced them both to come. the thing is, they are so similar. they are both quiet, soft-spoken, speak when spoken to types. and without me in the middle, it would just be like, two guys. >> who will play you guys in the tv show? [laughter] geez, i have no idea. i do not even know if that'll be a thing. who knows? it could be a cartoon. >> a cartoon about twitter sounders played by a dog. something -- well, i would never watch that. all right, it is not a cartoon but we will show you some very interesting animals, like a kangaroo, coming up. on "lunchmoney."
♪ >> available on your iphone, we are streaming live at bloomberg.com. we are all over the place. this is "lunch money." i'm matt miller in for adam johnson. today's video is the picture that is the story. investigators believe they are closing in on the malaysia airlines jet. search crews have picked up signals consistent with those emitted from the plane's black box flight recorder. australian officials heading up the search efforts and said they are optimistic of finding the jet in the "not-too-distant future."
in lima, peru, a clash between shopowners and a group of people trying to evict them turned deadly. two of the store owners were killed when the police intervened. the group was trying to force the merchant out, claiming to own the land of the shopping center was built on. and uconn sweeps. college championships across the board. connecticut women beat notre dame to win the ncaa title. and a record national championship for the ninth time in a row for the women huskies. he finished the season with a perfect 40-0 record. this victory comes right after the men's team knocked off kentucky to grab that championship. a big, big deal for the yukon -- uconn ladies. comcast is defending its move to acquire time warner cable. at a hearing in washington, here is their vice president. >> this is not a challenging
transaction from an antitrust perspective. our companies serve separate geographic areas. we do not compete for customers anywhere. the transaction will not lead to any reduction in competition or consumer choice in any market. american consumers will enjoy the same choice among broadband providers before and after this transaction. there are no competition issues in that market either. all, thatetition at is the company line from comcast. the executive vice president reiterated that customers would not be hurt. >> there is nothing in this transaction that would cause anyone's cable bill to go up. i have a nasty little habit of telling the truth, and when i was asked whether people's cave -- cable bills was going to go down i said i could not make that commitment. but between the synergies in this deal and whatever marginal additional leverage we might have in programming and quitman
and purchasing, whatever economic benefits are generated will ultimately go to the consumers. >> there is going to be, obviously, some concern. >> i am against this deal. i believe it does not meet either test. i believe this deal will result in fewer choices, higher prices, and even worse service for my constituents. >> companies have to enter special agreements to ensure adequate quality of video streaming service. i worry about the potential impacts on other types of bandwidth-intensive services. one that i can think of that i have worked on for years is telemedicine. especially tying together medical centers in rural areas. it is an annoyance for consumers when they cannot stream the most recent season of "house of cards" due to the interconnection dispute. but where it is really serious and becomes life or death for patients is for those who cannot
reach health care for the same reason. >> not just lawmakers feeling concern. just a few seats down, the cable executives were not feeling it either. >> with an additional 10 million subscribers, comcast will be in the driver seat. you are either on their system serving more than 30 million customers, or you're not. will that impact the price? you've got to believe it will. >> and congress went from an unknown cable service to on television. here we are going to an unknown punk rock band that quickly became famous as an international spokesman for human rights in russia. how pussy riot took on vladimir putin is coming up. and later, how the first flying car is coming up. we will tell you about it in innovation. ♪ and archie andrews, the publisher for archie comics says the main character will be killed off in the july issue.
♪ >> this is "lunch money" on bloomberg television, streaming live on bloomberg.com, your tablet, and smart phone. i'm matt miller in for adam johnson. "world," the punk band that put a baklava phase two russian oppression, pussy riot gained international attention two years ago when they were in prison for hooliganism. they were arrested for filming a music video in a church. here is the history of pussy riot in 50 seconds. >> february 12, 2012, five of the seven-member band perform an anti-putin song at the cathedral
of christ the savior. in march, three of the women are arrested for "hooliganism" and motivated by "religious hatred" and sentenced to prison. one was released on appeal, but the other two were held. on december 21, they were released on amnesty. in february, during the limit -- olympic games, several members were seen singing in front of the olympic rings. they were arrested on a charge of theft, but released several hours later. shortly after, several members whipped at a downtown sochi restaurant during a street performance. >> addressing the lack of religious freedom in their home country of russia -- >> it is difficult to imagine how in the 21st century anyone can be judged by 20th-century
laws. and also in court, we heard questions like, do you believe in god, or whether god is as real as the moscow subway. i believe that theological discussions should not be happening in court. the fact that these discussions did happen only shows the of putin's order, and it was not a true court, but just another propaganda machine. >> the propaganda machine put them away for 21 months. here is what their experience was like in the russian prison system. >> we don't have an ability to protest in female camps. if in the men's camps, they can notify the administration of any
violations. in the female camp, the women are completely subjugated. they must work 16 hours a day. they are refused meals. they are denied personal hygiene. they can be put outside and be kept outside 10, 12 hours, sometimes even days. and in the isolation cameras, it's very cold. and women get sick because they have to spend so much time there. and many of them already have serious diseases, such as aids, and they are not receiving proper treatment. i wrote about this. and i felt a lot of pressure on -- from the administration. they did not like this truth to be told. they tried to suppress any kind of truth from coming out. and this truth does not leave the walls, because as soon as anyone tries to do this, he or she is labeled as an enemy and
all of the other prisoners are turned against them. >> one thing everyone wants to know is the story behind their interesting band name. >> we wanted to kind of feel more freed from maybe some of the limitations that words can put on our shame. not just on -- on us, but on government officials now pronouncing this -- these words with great pleasure. >> so you knew. >> seriously, yes. right guilt is a very strong influence on us. paraphrasing a of this movement. we wanted to do something like that in russia, and at some point we realized that something like that is very unlikely. so we decided to create it with our own hands, and we did it. >> you can watch the full interview with pussy riot members on charlie rose tonight p.m., andm. and 10:00
that is only on bloomberg television. coming up, get ready for the rise of the robots. the animal inspired machines being created around the world, from termite bots to kangaroo bots. and we are not stopping there. we will also introduce you to the world's first legal flying car. it may go down as the most watched play date ever. prince george and his royal parents joined other families at a get-together in new zealand. it was part of a royal visit to the country. formalities were quickly cast aside and prince george was doing what other others do. whatever that is. ♪
bloomberg television, streaming live on bloomberg.com, and your tablet and smartphone come as by and as you must know now. i'm matt miller in for adam johnson. in innovation, going around the world, starting right here in the usa. scientists at harvard university are developing a robot inspired by nature's best builder, the termite. and best of all, it does not need humans to tell it what to do. take a look. ♪
i am an industrial designer full stop we actually produce and develop robots for automation. the kangaroo, for us, is a very interesting role model because of the energy. it is able to store energy in can retake it for the next jump. also, it is able to get faster and faster without using more energy. jumping is something very complicated and needs a lot of control. using an interface, which is a device that can be mounted on the arm, and using any empty signal, emt signal, we are able to make it move. we try to learn from nature and bring that to our product.
right, scientists are working on an incredibly important robotic termite and kangaroos. but what about flying cars? bloomberg got a preview of the world's first legal, road and airborne auto. >> the basic breakthrough of this vehicle is the way it drives. it tilts, and that is why we can make it stable on the road. i am the ceo of my company and we developed the first flying car in the world. the idea came. flying is cumbersome. you take over the place where you don't want to leave, and you
end at a place for you don't want to be. the vehicle was built within existing regulations. there is one ok for the road in europe, and then it can be sold in any european country. for driving, you need a license for the car, and for flying, you need a recreational pilot license. for a gyrocopter. the starting price will be 300,000 euros for the general version. and there is a limited collector's edition for half a million. we are building them for policing organizations, aid organizations, and security. new technology and new possibilities. >> that looks so much cooler than any robot. but we have more robots for you. today's mystery meat.
to see an going increase in rates, but we heard the janet yellen following last meeting. you saw this in the bond market, yields, where we saw fall but came up a little on the end of the curve, and for more on the fed minutes, we are bringingin adrian. these minutes are from before the press conference, and yet, they give no glimmer of timing, right? they would be more weighted later in the year. that?o you make of muchople -- read too
into that. you could tell by her body anguage, and we say it was flub, for the most part. there was no mention of timing. it is still jobs and inflation data that will get them to move one way or another, and that's why we still think it's a second half event. longer on the curve, more about growth. the short end, reverse course. thetening everywhere on curve. now, you really saw it.
the bond market was, oops, and steepen.tarted to >> if the fed is data dependent, what do you do? do you try to be a better predictor? thinkingg what they're want toculat, and they move to the quantitative aspect, poor.eir execution is i don't know how you'd trade this market. >> over the next year? >> you can debate the various