>> "lunch money welcome to," re: ebay and paypal made for each other? ceo john donahoe thinks they are. , al injection multibillion-dollar boost. we will look inside the pros and cons of the economy. in luxury, america's superrich. we will tell you where they live and why. an oscar-winning movie

director tells us how he brings a star-studded cast. protests around the world from ukraine to thailand to venezuela. three different movements in three different situations but there is one common theme, a populist to satisfied with leadership. thailand, antigovernment protesters gathered outside the prime minister's office in bangkok. isy say the government corrupt. five people were killed and dozens injured in protests yesterday. turning to venezuela, two weeks of protest have proved deadly. four were killed in caracas. inflation doubled to 56%, and that was just in january. there are also shortages of rice, paper, and medicine. all this is happening in a largest provene oil reserves. nicolas maduro has arrested the opposition leader and has accused him of inciting

violence. brings us to the ukraine, where protests over the last 24 hours have been the bloodiest since they began in november. the occupation of independent square began after the president chose a trade deal with russia over one with the eu. " which ordered the square to be in a yet today, leading clash that left hundreds injured. here is a look at the last 24 hours in kiev. therefore, i am again calling for the opposition leaders who claim to also want a peaceful resolution to immediately separate themselves from the radical forces that provoke bloodshed. >> the geography of the ukraine plays a big part. the capital of kiev is in the middle of the western half of europe, eastern have, russia. that is how the country is pretty much online.

now those in the western area one to declare independence from the current government. mass protests have also spread to areas where we have green. in other words, a huge portion of the country. the president said his duty was to ensure peace in the country and also called for an end to the protest. therefore, i am again calling for the opposition leaders who claim to also want a peaceful resolution to immediately separate themselves from the radical forces that provoke much debt and clashes with security services. there is a better and more effectively to solve this. it is to find a compromise, and reach an agreement. there has been a wide ranging response from the international community. russia supports the current government, trying to a become any -- country.

russia blames the u.s. and eu for inciting the violence. john kerry reasserted the u.s. position today in the u.s. >> the choice is between protecting the people that he serves, all the people, and a compromise and dialogue, versus the violence and mayhem. we believe the choice is clear. we are talking about the possibility of sanctions or other steps with our friends in order and elsewhere, in to try to create the environment for compromise. compromise, that is a hard word here. sanctions against the ukrainian president is one proposal. a leader from poland is leading the call. he says targeted sanctions will avoid hurting ordinary citizens. >> there are no circumstances that can justify such violence.

we condemn in the strongest terms the use of violence as a way to solve political and institutional problem's. we believe the political leadership of the country has the responsibility to ensure the protection of fundamental rights and freedoms. we call on all sides to put an end to violence immediately and .o engage in a serious dialogue we believe that is the only way to respond to democratic aspirations of the ukrainian people. what is likely to happen next? here is the head of the council of foreign relations from "surveillance" this morning. >> what i would expect from vladimir putin is whatever it takes, continue to operate economic help. the only condition he will as far as you can get from the imf, to essentially keep control.

not only theis as future of ukraine, but in many ways, i believe he sees this as the future of russia in ways. he does not want the liberal virus to infect ukraine because his fear would be that it would become a demonstration of fact for his own country. >> i am fascinated by this. with the russian fleet in the black sea off of odessa and the rest of southern ukraine, how does america and europe respond to that? it has become literally a naval action as well. >> there is not allowed the u.s. and europe could do. normally we provide all sorts of economic help, but only with strings attached. people will not provide $20 billion of help without certain political and economic conditionality. that is exactly what jan vukovich will not agree to when

under siege. in a funny way, our hands are tied because we do not want to throw good money after a bad situation so we have to see where things come out. if he prevails, then we could introduce help with conditionality, or if there is a new government, we could provide a lot of help. >> when does this move from an uprising into a civil war, what has to happen? >> you had the first series show of force in the last way for hours. whether you are talking about serial or other places in the , inle east, and even paris the middle of the 19th century, it is now a battle of nerves. does the government and security forces keep their nerve? are the protesters prepared to put their lives in jeopardy in the hopes of overthrowing the government? that is the dynamic now. >> we are a long way from secretary kissinger's classic

diplomacy. i do not know what the new foreign policy is. within the theory of what you do at the council of foreign relations, which should be america's international relations, when we feel so useless with the ukraine? >> more broadly, i would say two things. you have the president going to mexico today but it is against the backdrop of no movement at home on immigration and increasing questions over whether we could give them the print -- trade promotion authority he would need to conduct trade accords. so the biggest challenge continues to be the domestic. secondly, i would say the u.s. is overly invested in the unit -- middle east. we have not paying it enough attention to events in thailand and asia. meanwhile you have venezuela spinning out of control. i would say we need to rebalance our foreign policy away from this over fascination and

emphasis on the middle east and take account asia and the rest of the world. >> where should we look in europe for leadership? which institutions in europe will get this done? >> europe and leadership are borderline oxymorons. [laughter] you have institutions like the oecd to do with security and other things, but you do not have europe as a collective entity when it comes to being a foreign-policy actor. you cannot look to them for leadership, which is one of the advantages that putin has. he makes the decisions. europe does not have that kind of capacity. unrest has shaken ukrainian bonds, the worst selloff on record. the nation's currency weakened against the u.s. dollar. detroit and silicon valley are locking horns. we will explain why after the break.

ebay and paypal, stronger together, or are part? we will speak to john donahoe, and we will talk about carl icahn's attempt to split the company. ♪

>> this is "lunch money" on bloomberg television. you can also watch us streaming on your tablet, phone, and on bloomberg.com. icahn hasnvestor carl been pushing ebay to spin off its paypal unit. he said he said separately companies would boost value. this whole business about the divorce between business and , i think, is hurting us greatly. in the big picture, not , we have done a lot of work on ebay and believe without question it is a no-brainer that paypal should be spun off. >> he may have work to do convincing the ceo, john donahoe. this every year,

how ebay and paypal can be most successful. the board and i continue to believe that the best way would be together. ebay makes paypal stronger by making it grow faster, provide more data, and provides a strong financial foundation that will make paypal more successful as part of ebay, rather than separate. the board has looked at these alternatives for the last five years. the criteria we use is what will allow us to compete more successfully in the market. will allow paypal to expand globally and to be successful? to date, we believe that is what the company can do together. people do not want to pay to shop. paypal is about reducing friction. being on top of a commerce platform allows paypal to build products on ebay that they then take off of ebay, and that has

been the case with when payments, mobile payments, that is the case with credit. the bill me later option helps ebay. now that we are going into emerging markets together, we can get more traction more quickly in these emerging markets. wouldn't ebay and paypal still be able to work together if separated? not integrated as they are now. mobile payments is the most important platform shift arguably in the past decade. mobile for started, nobody would have downloaded the paypal but 100 million people downloaded the ebay app. the only way to pay through ebay was paypal. that is how they started the total mobile payment volume in 2010, which has now grown to $27

billion. >> but paypal is still the company's growth engine. >> commerce and payments are converging, not diverging. the commerce companies are trying to get into payments and the payment companies are trying to get to commerce. having a commerce engine allows a payments company to get that flywheel going. mobile, the most recent phenomenon, has helped having a captive market and get viral traction. >> what about the threat of digital payments, like bitcoin? >> there is nothing holding us back as far as pursuing digital payments at ebay. in fact, we are the leading alternative in many environment. is building a digital wallet where you can take multiple different types of currency. >> you can watch the full

interview with john donahoe at bloomberg.com. you can also go to our award-winning tablet app. a european car dynasty hands over to china. and where the millionaires choose to call home. the zip codes of the rich and the richer. ♪

>> this is "lunch money." you can also watch us streaming on your tablet, phone, and on bloomberg.com. it is all about fights and partnerships. you have the big three tech

firms, microsoft, comcast, and google, taking on the automakers because they want more spectrum for talking cars. explains.r fight impacts consumers onto w o front. you want video on your mobile device more and more and you wanted to upload fast. to beu do not want involved in a car accident. if you look at the two sides, the tech companies have given $140 million a year to congress. carmakerser hand, also have unions. there were 5 million crashes on u.s. highways last year which led to 33,000 deaths. the national highway transportation safety administration estimates that could be reduced by 80% if we

would use more of these vehicle to vehicle communication systems , which carmakers have developed and have ready, and they think it will be only about $100 extra per car. it seems like a pretty good gamble, but what google and thatsoft are saying is these airwaves that are allotted to them are not being fully utilized. we can come in and use the same spectrum and share this airwave use. saying you do not know when or how much we will need. nobody can see the future. of purehile, news out show. peugeot. they will be selling to a chinese company. , ashe future of the company i have told you, is unprecedented in europe.

today, we are in a position to sell 40% of our cars outside of europe. it was only one third four years ago. in 2015, it will be 50% of sales. beyond, we will become a global player. carlos will set up a strategy for the future. the group will be a global player supported by france, where we remain a very important industrial manufacturer. there will be a clear opportunity of development with dongfeng. beyond the immediate synergies of 400 million euros, let's say in the beginning of 2020, i am sure there will be more options. still of value to the

supervisory board. ngfeng has numerous partners around the world. here is a bit more on the little-known off -- automaker.

>> next up, we are talking the divorce economy. how much it will cost you and your family, and where the majority of the for c's live. and the creative genius behind "american hustle." our conversation with david o russell. ♪ >> 26 minutes past the hour, that means bloomberg is on the markets. we have seen a turn to the downside after the imf said that it would be more cautious on the global economy given what we have seen in the emerging markets. all three averages are down. in terms of individual stocks, a drug developer said to have hired bank of america to find a buyer. the company's first attempt to

sell it's geared about treatment -- irritable bowel treatment getting approval, so the stock is spiking on that. ♪

onthis is "lunch money" bloomberg television. you can also watch us streaming on your tablet, phone, and on bloomberg.com. today's moving pictures is where we had today story. two car bombs in beirut killing six people. the area is considered a hezbollah stronghold. a sunni militant group linked to al qaeda claimed responsibility for the attack. friction on day two of talks , the u.s., and others on the long-term nuclear program.

the u.s. wins a gold medal in the first ever men's olympic half pipe event. nevadaise of reno, jumped and spine and flipped his way through heavy snowfall. he brings the u.s. medal count to 20 overall, six of which are gold. until death, or better. that is our focus in today's nation. lawyers haveorce been busier since the economy started climbing out of recession, and now people can afford to split up. peter cook took a look at the close of numbers. got us thinking about divorce itself, is it a net plus for the economy, even though it is difficult for families to go through? that you have is two households, maybe somebody going back into the workforce,

more spending, ultimately a boost to the economy. we ran the idea past some economists, and the notion we got back is at best it is probably a wash. mark zandi tells us with more jobs, laurent appointment, unhappy cup is would delay the divorce, but i do not think it would be a significant boost as everyone is in worse financial shape. >> there has got to be a net positive for lawyers. >> absolutely a plus for lawyers. certainly some who would direct to -- that would benefit directly. , she has been

called the fairy godmother of divorce. the five keys for a solid prenup. >> not only should you be represented by a good family law attorney, but your spouse should be represented, but it should not be the same attorney. you should have an estate trust attorney. when you are planning your prenup, you should also plan for your will. they can strengthen one another, but if they do not say the same thing, the prenup will often times prevail over a will. so it is important -- >> third-party expert advice when it comes to any agreement or contract or you may sign as part of the prenup, and also the same advice when it comes to planning your estate and personal financial affairs. absolutely. many states require that you are represented by an attorney. >> what are some other types? are makingause you $60,000 today does not mean that

you will be making more couple years from now. kris jenner and bruce jenner never had a prenup. bruce jenner was not making that much money. chris was not the breadwinner. we will see what happens. $125 million dispute could be coming. >> so that is the kind of thing that you could revisit after your marriage and reassess? as moving from state to state. states have different laws. in certain states, a prenup will expire upon a milestone, like the birth of a child. a good tip, every five years, we will tell you which states americans wealthiest are calling home. that is next in luxury. news ine will be switzerland. ♪

>> it is all about real estate in today's luxury segment. switzerland has come up with a new love to protect its ski resorts from becoming ghost towns in the off-season. no more building permit for second homes. hans nichols gives us the full story. welcome to switzerland, one of europe's most exclusive resorts. we are here to show you why and just how expensive it can be if money is not an issue. in 2014, a permanent ban on building second homes will make chalets like this one, listed at 25 million swiss francs, nearly 28 million u.s. dollars, even more exorbitant. a,h six bedrooms, a pool, & it is grandfathered in under the old law, so it potential buyer does not need to be a full-time resident to purchase it.

this regulation caps a towns holiday property at 20%. >> we have more than 85% of second homes already, so what it means is what is already built, what will be billed, will become more valuable. a 10% increase in the next couple of years is certainly not to be ruled out. >> so new construction is frozen the demand is heating up. already in a market that towers above its alpine neighbors. buyers and sellers waiting for clarity on the law. now sellers know they have the upper hand. >> when do you hope to sell by? >> it does not matter, when we get the right price. $25 million is a bargain for this chalet. we have lovely old oak beams, the floors are 400 years old, we have french floors. all of these things are so beautiful. >> in the valleys of

switzerland, the floor for ski property is as high as the tree line, but there is one new poll for the thrifty ski bum, move to a resort village full-time. >> london has a new address for billionaires, called one hyde park. it is the city's most expensive building. if you have not seen it yet, don't worry. one hyde park. the most expensive apartment block in one of the world's most expensive cities. it is the brainchild of these two brothers, nick and christian. the nearly 36,000 where meters of opulence sits on a prime corner of knightsbridge bordering hyde park. luxury.super the starting price for a one bed apartment is nearly $11 million,

going up to nearly $160 million. they plan to license the name for luxury residential apartments and is looking for international partners. it might be a good time to look east as well. last month, nick worn parts of central london were in danger of being swamped by developments. his concerns are matched by a property broker who predicts price increases in the luxury home market. nick spoke with bloomberg about some of those -- other luxury markets that he and his brother may develop. >> there are other safe havens. new york has had huge growth in residential. singapore, hong kong. and a london. those four cities alone have a massive growth. the of the problem is government controlling that bubble, as some see it.

we have had a 700% increase in the u.k., but residential is still growing. most people say, 700% increase on anything, you would put the brakes on. london will always do very well. are we in a bubble? i thought the prices were top-down two years ago, and they continue to grow. 6.1 billionaires living in the u.s.. billionaires trip over aly to millionaire in maryland, which has the highest ratio of millionaire households. its proximity to the nations capital. government job will not make you a millionaire but the lobbying, consulting, and contracting

will. second, new jersey. 7.5%. it's money comes largely from wall street workers who commute to new york city. north dakota's ratio is surging, from 40 third place to 29th in the state rankings come up because of the shale oil boom. you will find poverty in mississippi. 22% live below the poverty line, making it the poorest state in the nation. then there is the very rich. 93 of the world's richest people live in the u.s. new york has the most. highest net worth david hamilton co., nearly worth $44 billion. his brother charles is also billionarly 40 5 dollars. silicon valley has made california a close second with

18 billionaires: golden state home. among them, larry ellison. and mark zuckerberg, the facebook founder. he comes in at $24 billion. america's richest person, bill gates. just one of four billionaires in the state of washington. 12 states still waiting to see a single billionaire make their homes there. we have breaking news on the ukraine. the latest developments in the clashes we have seen between the ukrainian government and authorities and protesters. a live looking at picture, continuing fires burning in independence square. ukrainian president, viktor has fired the head of the army and replaced him with the chief of the navy. the initial degree on the website saying both have been fired but now it is clear the head of the army has been fired,

and the navy chief has replaced him. leastwere reports of at 26 people dying, hundreds injured in clashes last night. so now there are still protests going on in independence square. note, the canadian embassy has temporarily closed in key because of everything going on. the backdrop of all of this is ukrainian authorities have also declared a form of martial law in which authorities are allowed to search protesters and potentially fire upon them. we will continue to update you on the situation. ♪

>> in movies today, britain's equivalent of the oscars to the last sunday. usually a pretty good indicator of what is to come at the academy awards. in case you missed it, "american scooped up three of the

awards. david o russell is the creative mind behind the movie. what was his process? coolest,t all of your deepest themes on paper, love, loyalty, heartbreak, betrayal. this person lives at home, she has a son, this is jennifer lawrence. her nails become a metaphor. all of these ideas that you think are amazing, in no particular order. eventen you see amy at an , and you say, i am trying to create something for you. to have four actors is a great honor, but it takes a lot of weaving. >> you all are friends and have decided to do something else together. >> i am in a blessed time of filmmaking. at the time i was working on "the fighter."

we put them together and it was kind of a dream team. it inspires me. we have worked together, we have taken risks together. christian already won an oscar. we said, let's take a risk. let's do something that you had never done before. that is my job, to deliver that for them. >> it sounds like there is a real component to team. character-based cinema, you have a shortened schedule, so you have to team up and be very intense, nonstop, make it from the heart. everybody knows that spirit. ,o make character-based cinema everybody is hedging their bets because they do not know what it is. it is not an action film or science fiction film. it is about these characters. are going to keep the

money low, let's get a partner. everyone is hedging their bets. cast in. getting the sometimes their schedules are moving. you want to keep all the marbles on the table. let's fix that schedule. then we start moving towards the door as we go. , who has donecer many wonderful movies, she stayed strong through all of it. there were many chances where she could've said, i do not know, it seemed like too big of a risk. dot of the beauty, when you it three times, people understand the type of store you are telling. now it become something even the audiences know. for me, there are some character-driven movies that i turn to if i'm depressed or hung over. royal tannenbaum's is one of them. when will we recognize the director in american cinema? >> first of all, music and

movies saved my life many times. europe --r to >> duke ellington saved your life? >> exactly. it is like taking a pill. that is what we inspired to do in cinema. >> today's mystery meat. prince charles in traditional arabian dress. he is taking part in a sword dance. ♪

is 56 past the hour, and that means bloombergtv is on the market. but get a look at stocks. we have a decline as the imf has warned that a global growth could be slowed by emerging-market turmoil as well as deflation in the euro area.

the nasdaq, which have been leading gains, now declining half of one percent. in terms of what is going on in the treasury market, we are seeing yields move down today. people buying of treasuries there. the yield at 2.67 -- i should 2.70, if you are rounding. shares of garmin trading at the highest level since 2008. they reported fourth-quarter results that beat wall street estimates easily. they saw an increase in sales of fitness and aviation products. its full-year forecast also topped analyst estimates. falling,shares are following the second earnings report of the company. they beat analyst estimates but revenue fell short. shares falling the most after the company's ipo in october. signet jewelers limited buying

zales corp. signet will nearly double its stores with this acquisition. time for today's insight and action. adam johnson looks at the case for investing in equities. bullish and compelling argument for being bullish all year. it is brought to us by jonathan, over at rbc. he went back in years and found an incredible correlation. he determined a one percent move a 2.5% move in sales of the s&p 500 companies. translated into a six percent move for stocks. that is why the big picture matters. that is also when you call operating leverage. in jonathan's own words --

you can understand why banks would go up in the scenario because banks make loans and they are levered at 12-1, but industrials, that is what i want to focus on. the banks have to deal with a lot of regulation, and that is too hard for me to understand. regulation that we do not know what it will be because it has not been written yet. so let's focus on industrials, operating leverage. i went through the 81 companies in the industrial s&p 500 and i looked at the ones with the highest operating margins. presumably they would be the most profitable. here they are. look at these operating margins. this is good business. theory, would be the ones to benefit, if johnson points out, gdp expands operating leverage. >> thank you, adam.

of course, the more bearish view seems to be ruling the markets today as we have stocks declining after a couple of sessions. the s&p has pulled back by four points as the imf warns on global growth slated to emerging markets and elsewhere. the backdrop today, is not directly tied to what is going on with investors, what is happening in the ukraine, where we continue to see protesters plot -- clash with authorities. we will continue to update you on that situation and bring you more in the markets in 30 minutes. "bloomberg west" is next. ♪

>> live from pier three in san francisco, welcome to "bloomberg west." we are covering a few big stories today. tesla reports earnings after the bell. are they working on a battery factory? we will speak with ceo bloomberg mosque