>> welcome to "lunch money" where we have the best stories and videos in business news. i am adam johnson. a shot at the high court. we will tell you the story behind this video. it is believed to be the first video of a supreme court argument ever taken. they want to end cancer with the help of 3-d engineering. the chairman speaks. microsoft new head of the board talks about the incoming ceo and the big challenge in a bloomberg exclusive. in media, we have an entertainment smack down. new networks want your attention while long-term networks are struggling to keep it. watch out. they are flipping cars.

the coolest award you have never heard of is just in time for the oscars. we're going to kick it off with what everyone is talking about. big news overseas, we are starting with japan. >> formally the largest bitcoin exchange has filed for bankruptcy in japan. they lost 3/4 of a million that bitcoins belonged to users. >> that is real money. >> the ceo of the exchange apologized. here it is in the raw. [camera clicks] >> [speaking japanese] >> i am deeply sorry. there was a weak area the system. as a result, we lost bitcoins. i am deeply sorry i have caused trouble for everyone.

>> that is the ceo apologizing for the bitcoin exchanges collapse. he has not been a popular man. this is video of him earlier this week trying to enter the mt. gox headquarters. they have been holding a sit in outside the building demanding with a sign, "where is our money?" he lost hundreds of million dollars reportedly to hacker thieves. that led him to halt withdrawals on february 7. >> this is a serious disaster. it appears to be a combination of mismanagement and technical issues that led almost one million bitcoins to disappear. it is unbelievable. the company only realized it very recently. it may be this fraud was going

on for years. >> the bitcoin critics are licking their chops after this bankruptcy. is this an opportunity for proponents to make a case for bitcoin? >> fortress investment group revealed in a filing it bought $20 million worth of bitcoins. there is something going on in a lot of minds that says this is an opportunity. the old saw on wall street when there is blood on the street you buy. >> fortress is a $4 billion fund. $20 million is pocket money. what is the challenge? >> they're going to need to show security and consumer protection stand at the top of the list of things they need to address. you see some startups getting going on ways to secure bitcoins and that sort of thing, but it is a murky thing to begin with. to convince people bitcoin are safe and secure with them, that is an uphill battle.

you lose credibility quickly. you build it very slowly. >> mt. gox stopped withdrawals to prevent a panic. there is the same concern happening in ukraine. getting cash in kiev has become a challenge. the country is trying to raise $35 billion from foreign donors. it does not help that the country's coffers are empty according to the new premier. he says the former regime moved $70 billion into offshore accounts before fleeing. yanukovych is in moscow where he gave a news conference this morning. he says he is still president and the current parliament is legitimate. security is another issue in ukraine. pro-russian armed gunmen took over the airport on the peninsula of the southern tip of ukraine. we are looking into this issue. he spent time with a militia member working to keep order in

a city largely abandoned by official law-enforcement. >> he is a 22-year-old college graduate who grew up 200 miles outside kiev in the largely pro-europe western union. he joined antigovernment protests that broke out last year, manning the barricades with thousands of others. >> on one side? >> burning all around. >> today, he is one of thousands of volunteer militia members tasked with keeping kiev safe. >> we are like the police but we are good. >> he showed me around his militia camps in the heart of revolutionary square, from the community commanded by this former army commander who previously served in iraq and afghanistan. >> those who want to help can help us. >> defending against perceived threats, the revolution is apparently a full-time job. but none of these men are paid. there is little sign these band

of brothers will disband any ti s the bon ami of this encampment was not so obvious among others that make up standard security. right wing paramilitary form of visible part of the new forces. members of one far right group told me their ranks numbered in the thousands and are growing by the day. the new government must figure out how to harness the enthusiasm of these ragtag men to rebuild a credible and accountable police force. kiev security, it seems, is still very much a work in progress. who is responsible for kiev now? >> there is no one exactly. >> dramatic images. he also sat down with the newly appointed secretary of the national security and defense counsel. he asked about the growing tensions with russia. >> yes, i am worried about it. also, the capture of the

government in crimea by units which were sent by russia from moscow. from russia, we see a very aggressive method of carrying out politics towards ukraine. we could observe their attempts to divide ukraine or take crimea. >> with the tension in the crimea region of ukraine, would you call for nato support against russia if required? >> yes, for sure. we think we are owed from the united states and britain. nato is a guarantee of safety in the black sea region. of course, we are sure about nato. it has already been announced that they have their own vision and will not allow the russian federation to create conflict. >> from kiev to washington, what got president obama and vice president biden running around the white house? we will tell you. the chairman of microsoft wants you to join him on the cloud. his exclusive interview later on "lunch money." ♪

>> washington enthusiasts rejoice. we have coverage from all three branches of government. for what may be the first time ever, a video camera secretly recorded a supreme court argument. video captures a protester objecting to the role of money in politics. >> i rise on behalf of the vast majority of american people who believe money is not speech and corporations are not people and our democracy should not be for sale to the highest bidder. overturn citizens united. >> remember, the high court does not allow any recording devices other than its own audio equipment. spectators and reporters have to pass through a metal detector

before entering the courtroom, so it is unclear how the videographer snuck in. the supreme court spokesman is reviewing the video and its screening policies. now to the legislative branch of government. representative dave camp is pushing to revamp the tax code. his plan would eliminate dozens of breaks. >> i am not going to accept 2% growth as the new normal. i'm not going to accept a minimum wage economy and the fact we are not creating jobs. kids are living at home because they cannot get out on their own. we need to grow this economy and create jobs. one way is through progrowth tax reform. >> he has taken a lot of heat for this proposal. the big banks are fighting against the plan new tax on banks which is intended to offset lower rates for individuals. >> i think it affects about six banks. look. they are going from a 35% rate to a 25% rate.

in the financial sector, there are not a lot of provisions, loopholes to close because there are not many. they are getting a tremendous tax break. i think it is important there be a trade-off. >> new taxes are going to make it tough for camp to gain support from fellow republicans. the plan is nowhere near becoming law, but is the first major reconstruction attempt since 1986. let's move on to the executive branch. the president thursday launching a new initiative to provide greater opportunities for young black and hispanic men. last february, obama met with a group of young high school men in chicago. one attended the white house event and introduced the president. >> when he came, it was one of the greatest expenses of my life. most people do not get to meet him. if they do, it is just a

handshake. he sat down with us and shared his story. to my surprise, he was just like me growing up without a father and sometimes not too concerned with school. [laughter] >> i explained to them when i was their age, i was a lot like them. i did not have a dad in the house. i was angry about it, even though i did not necessarily realize it at the time. i made bad choices. i got high without always thinking about the harm it could do. i did not always take school as seriously as i should have. i made excuses. sometimes i sold myself short. i remember, you may remember this, after i was finished, the guy sitting next to me said, were you talking about you? [laughter] i firmly believe every child

deserves the same chances i had. that is why we are here today, to do what we can in this year of action to give more young americans the support they need to make good choices. >> the first lady is celebrating four years of her let's move campaign fighting childhood obesity. she has two big victories to her credit. first, new food labels from the fda. >> we believe that new updates will help improving public health, incorporating the latest nutrition recommendations to reduce the risks of chronic disease such as cardiovascular disease, obesity, high blood pressure, diabetes, and strokes. >> the changes include larger serving sizes and larger print for calorie counts. the first lady thinks this is a step in the right direction. >> we have the right to understand what is in the food we are feeding our families. that is the only way we can make

informed choices, by having clear, accurate information. ultimately, that is what today's announcement is all about. >> the second win for mrs. obama, a new study shows the rate of childhood obesity cut in half over the last decade, drops to about 8%. the first lady has enlisted celebrities and public figures to drill home the importance of leading a healthy lifestyle. you have to check out her most recent spokesmen. >> ♪ >> you are hard to keep up with. >> after a good workout, you

have got to drink up. same time next week? >> other celebrities helping mrs. obama, comedian will ferrell, big bird from "sesame street," and lebron james. way to go, getting people slim. coming up, the innovative company using 3-d technology to fight disease. we will take a look at the oscar-nominated films and hear from some of the stars later this hour. you've got to see this. a smoke-filled room in havana, snifters of aged rum. the goal is to see who can create the longest unbroken cigar ash. everyone started with a seven-inch cuban and tried to smoke them down without losing the ash. one of the finalists?

a 67-year-old woman. she puffed away until all that was left was 3/10 of an inch. ♪ >> all week, we have been

featuring some of the most innovative thinkers coming up at the bloomberg businessweek design conference. today we're going to meet andrew who conducts research in programmable matter for autodesk. what is that? >> for me, design is the ability to ideate and envision, and then create that design. >> ♪

>> the beautiful part about design is the learning that comes from just realizing your design and having it in the world. autodesk is a software company that makes design tools for modeling, simulation, visualization, optimization. the bio-nano group i am part of is looking at a subset of those tools that can be applied to genetic engineering and cell biology. many people look at genetic engineering in a negative way. i do not. the more we can grow the things we need as human beings, the more we will be able to keep the world sustainable. i am particularly interested in how we can design living things fast and cheap. i have been fascinated by viruses. i have been learning how to use software tools and print technologies to make viruses in a way that allows us to do positive things with them. i want to see viruses be used to hunt down and kill cancer cells.

that is where i get excited every day. what i love about looking at life from the bottom up is it is a lot like the lego bricks and dinosaur. by themselves, they may not seem like much. but you can make complex structures where you have these bricks and can assemble them in different ways. by understanding the fundamentals of living systems and cells, we have this incredible opportunity to make and design beautiful things around us. >> bloomberg businessweek is hosting the second annual design conference in san francisco on march 10. for tickets and information, go to bloombergbusinessweekdesign.com. the son of jimmy choo has created something he wants to replace the smartphone.

>> in japan, there is a serious issue. these dolls, we make sure they stay indoors and do not [indiscernible] at the same time. it is a character i created in 2007. up until recently, she was just an illustration. i wanted something more physical. i was born and raised in the u.k. i discovered japanese culture in the u.k. i decided i wanted to live and work in japan. i would share my daily japanese life online. that attracted an audience worldwide. i used to make shoes in my dad's studio. he is quite surprised i created

this anime world. he loves it. he has one at home. we ended up working on doll shoes. there are different versions of the doll. there is an automated version which is robotic and powered by electricity. there is a manual version which is powered by your imagination. she functions with motors. at the moment, she is powered by an android device. you can hook her up to twitter, facebook, instagram. depending on what you tell her to do, she will let you know when there are notifications. eventually, i want her to replace your mobile phone. one version will be ready in march. the robotic version hopefully by the end of the year. she will be able to do everything your mobile phone can

do. i think it is perfect for lonely folks who do not need to be lonely anymore. >> kind of reminds me of the movie "her," about the man who fell in love with his computer program. that is just one film up for an oscar this weekend. we will look at others coming up. new networks are vying for your attention. we will hear from the founder of one. ♪

>> this is "lunch money" on bloomberg television and streaming live. the video is the story. officials in an australian town are advising people to get out due to a fire in a local coal mine. the blaze has been burning for three weeks. it has been spewing ash and smoke. officials say it could last another week and a half. people have been complaining of chest pains and headaches. protests around the world to send a message to egypt. demonstrators in washington and elsewhere showing their support for a group of al jazeera journalists on trial in egypt. the journals have been held since december. egypt said they were aiding a

terrorist organization by reporting on the muslim brotherhood. drought-stricken california finally getting some rain, and lots of it. the storm forecast to dump one inch an hour was hitting southern california yesterday. yesterday was the first there was an inch or more of rain in downtown los angeles since october 2011. a mixed blessing. barren hillsides are now subject to mudslides. john thompson took over as chairman of microsoft at the beginning of the month. he replaced company founder bill gates, so he already has big shoes to fill. the real challenge for thompson and satya nadella, the man he picked as ceo, is to keep microsoft competitive in software, mobile, and video. >> the issue for us is about focus. one of the reasons we chose satya nadella as the new ceo is he has a strong technology background. he understands exactly what needs to happen to move

microsoft forward. >> that means competing in the cloud. microsoft's website says it currently controls 50% of the market for enterprise class storage. amazon, google, and ibm mostly controlled the rest. thompson says he has the goods. >> microsoft has demonstrated an ability to provide a cloud-based platform on which others can build applications. on top of that, office 365 is a very successful cloud-based application. i think the combination of those things provide the foundation on which microsoft can clearly grow its cloud-based business. the other dimension of microsoft strategy is focusing on how we become even more relevant to consumers. devices and services strategy launched about a year ago is very much a part of that. it will be interesting to see how satya augments that as we move forward. >> thompson led the search for the new ceo. he talked to us about how the two along with bill gates plan to work together.

>> the relationship between satya and i will evolve as we become closer as partners in the redirection of microsoft. clearly, the combination of me, satya, and bill have a responsibility to not just work on the strategy of the company, but more importantly to do a broad communications strategy to support customers, partners, and investors' understanding of what that strategy is. i think the fact satya is young, aggressive, and open-minded gives him and me an opportunity to figure out how best to use me as he gets to unfold his strategy. i am excited about the possibilities of microsoft. i would not be on this board if i were not excited. i think he clearly is the right choice for us at this moment in time. >> is satya working on a strategy? do you expect that to be presented at the march board meeting? >> he has been in the job less

than a month, so i would have to think he is working on getting to know all of the elements of microsoft, many of which he had little or no interaction with before he became ceo. there won't be a strategy discussion per se at our march board meeting. we will discuss many other things. but there will clearly be an opportunity in the not-too-distant future for satya to lay out for the board and ultimately for employees, investors, and partners exactly what our direction and strategy will be. he is the man in charge of strategy. not me or bill, quite frankly. >> you can watch our full exclusive interview with microsoft chairman john thompson at bloomberg.com/tv. it is oscar weekend. we're going to look at award-winning technologies behind the biggest action films. a new network for millenials. we will talk to robert rodriguez about his vision. ♪

>> this is "lunch money" on bloomberg television and streaming live on your tablet or smartphone. "american idol" cut its first finalists of the season last night. the show is struggling in its 10th year. how did it happen? >> tmz has been reporting the

possibility of losing money. you have sponsors dropping out or cutting back. coca cola is still a big sponsor but the company did tell "wall street journal" it has cut back by 1/3. ford admits it has tweaked its monetary support for the program. in terms of ratings, we have heard how fewer people are watching. it is no longer the prestige program it once was. on average this season, 12.1 million viewers, down 20% from the same time in 2012. the average age of the viewer has gone up to 51 from 39. expenses is where it gets interesting. jennifer lopez is the highest-paid judge on the program commanding $17.5 million. ryan seacrest about $15 million.

the new set also cost up to $7 million, viewer phone calls as well. there is the salary the show is still paying to two executive producers who have been fired. >> what does it mean for the future of the show? will it continue on fox? is there a chance they might pull it? >> there's always a chance they might kill it. tmz says fox will bring it back in the next year. they did drop "x factor" so they would have some holes in their schedule if they dropped it, so for now it is not going anyplace. >> in 2011, it made $6.64 million per half-hour. >> the wwe network went live after two years and $75 million worth of planning. it is digital and by subscription. hulk hogan will be back next month after a seven-year break.

robert rodriguez opted to go to cable for his new network el ray. it is targeting latinos and millenials. the real goal is to unleash the renegade in everyone. >> there were about 110 english networks, 10 of which were african-american. there were none like this for general entertainment, hispanic english language. they are the largest minority. i thought this would be a great cause. i have five kids who did not see themselves represented in television as much. also a way to have really cool programming. it has to be exciting and entertaining for everybody. our first show is "from dusk till dawn" as a series. to fill out the programming, we have to license a lot of things because there has not been a back catalog of hispanic programming, so we have to create everything. until then, we are running a lot of classic television shows i was a fan of.

"kung fu," "x-files." >> "from dusk till dawn" was a fantastic movie. everyone remembers george clooney and harvey keitel. how do you make that into a series? >> quentin tarantino and i have never done television. el rey will have something no one else could get. the show has an amazing cast. it is quentin's characters. >> will there be an online component? >> we are time warner, comcast, cox communications. we have others we will be announcing. we are looking at digital partners. it launches march 11. >> we will look at the nominees for this sunday's academy awards. also, special effects experts who make their living creating explosions. that is coming up. ♪

>> who is going to bring home an oscar? that is the question on hollywood's mind. he is in contention for his role in "12 years a slave" and he spoke with charlie rose. >> the most amazing experience i have had as an actor. it takes a bit of breath. i am enjoying showing the film to people and talking about it. i feel there is still so much to say about it. it is not a film you open and get tired of the conversation about it. it is something that does still inform me.

>> charlie also spoke with sandra bullock about her film, "gravity." >> is this the hardest movie you make? >> in the best way, yes. >> challenging but exciting? >> exciting and rewarding. once i figured out i was fighting it and should be using everything that was a frustration and that limited me, all those things that frustrated me were things once i figured out were of benefit, because ostensibly the same thing is happening to the character in space. the loss of control, frustration, loneliness. instead of fighting it, you embraced it. it became a friend rather than something that was a problem. >> you can see all 17 of charlie's interviews with oscar nominees tonight on bloomberg television. the best film of the year is "big bad wolves," so says quentin tarantino.

it has put israeli genre films on the map. >> if torture and child abduction are not what you look for in entertainment, "big bad wolves" may not be for you. it brims with horror and cruelty as a grieving ex-policeman metes out justice to his daughter's suspected killer. >> it is a militaristic society where everyone is a leader of the pack. if something bad happens, you know what to do. everybody has a knife, a blowtorch, a gun. >> israel's film establishment looked beyond the gore handing it five awards, its equivalent of the oscars. israel's first slasher movie where nasty things happen to pretty people. >> it seems to come naturally to israeli filmmakers. if they can produce

award-winning horror films, why not other genres? israel's specialty has always been tearjerking family dramas and films about conflict. trying out new genres says this director is risky, at least at home. >> not like big blockbuster hits here. abroad, there is more interest in this kind of filmmaking here. they would like to see something new coming from the genre. another twist of the story. having it in a different language and locale is something new for them. they like it. >> if the directors have it their way, cinema goers will soon be treated to israel's first western to be called "once upon a time in palestine." >> we have had spaghetti westerns. >> the middle eastern western. >> i hope that is the future of filmmaking in israel, more

diversity. i hope we see more horror films. so we don't have romantic comedies at all. >> that at least may be no bad thing. >> the academy also honors innovators who create cool stuff. this year, they're giving a lifetime achievement award to the special-effects gurus behind the pneumatic car flipper. what is that? jon erlichman had some fun with it. >> if you saw "transformers: dark of the moon," you might recall the sea of exploding cars. this is not cgi. you have cars and even a school bus flipping. the device that makes it happen is the pneumatic car flipper. he helped brew it up for michael bay when he was shooting "armageddon." a car is placed on top.

it looks like a floor jack. it is loaded with high-pressure nitrogen. it pushes into a piston and throws the car as far as 25 feet. >> you want to get the air in the cylinder as fast and as much as you can. that's what makes it work. >> 3, 2, 1. that is how you flip a car. >> before car flippers, the tool of choice was a cannon. now he rents them to filmmakers around the globe for a couple of hundred dollars a day. >> to install a cannon in a car will cost $2500. that gets expensive. >> if you want to get fancy with the flipper? >> take a cable and wrap it around the car. you pull on the high-speed accelerator along with the car flipper, and it will pull the

car. >> when you pull the car and it is in rough shape, what do you do with the car? >> they will go to a wrecker. in four more years, it may be a bobsled at the olympics or something. >> jon erlichman, bloomberg, los angeles. >> how would you like to take a bite of an oscar winner? a startup calling itself bite labs has started a crowd funding campaign claiming it will grow meat from celebrity tissue samples and make salami. you want a piece? not me. ♪ >> it is 56 past the hour which

means bloomberg television is "on the markets." i am alix steel. the s&p closing at another record. the nasdaq actually close in

negative territory. it was about escalating tensions between ukraine and russia. they're accusing russia of trying to promote conflict. the s&p did at one point trade innegative territory but typical fashion, that ended up closing higher. want to look at treasuries. investors were seeking safety in the market. the yield was almost flat, after rallying for the first time in four days. on this final trading day of the month, i am joined by michael reagan. he takes a look back at how the market has fared in this cold and snowy february. i can't believe it is the end of the month. was there a theme that happen within the markets? for thes unusual that first time in july, we had global stocks and bonds rise

simultaneously. that is not something that typically happens. usually investors are going to bonds, rotating out of stocks. it was an unusual month that way. the weather was in focus. having stocks and commodities rising, what does that tell you? >> a lot of it is chalked up to the weather wreaking havoc on economists' models. you had data point after data point that was weaker than expected that the market kind of blew it off. if you look at the bloomberg , as datasurprise index as better than expected, it goes up. that index fell to the lowest and every since 2011. it gives you an idea of how much havoc it's late on the models. give the economic data mulligan and check back next month. >> in terms of commodities,

whether a big impact or because whether it is cold or a drought, you're seeing the reactions. >> while we were freezing up here, in brazil they were going to one of the worst droughts they have had in half a century. sugar and coffee prices were skyrocketing. that was a big part of the commodities rally. >> does that mean we are seeing all the active trading on fundamentals now? >> they would like you to think that the stock market is trading on fundamentals. it was a pretty good earnings seasons. earnings-per-share grew about 8.5%. better than expected across the board. takeovers in the stock market were a big deal. -- had activists buying >> buybacks, not to mention. in that sense, fundamentals did play a role for sure this month. lookinget was kind of like it would knows dies at -- would nosedive at the end of

january. you had argentina devalued their currency. those concerns kind of went away. sitting athe s&p is a record and that we have headlines coming out about russian soldiers that are in ukraine. we take a dip on that. there is still kind of that .heme very fascinating. thank u so much for helping us break it down. for on the markets, i am alix steel. ♪